SHTF - Financial Armageddon with the Collapsing Economy

Very bad times we are living in now. The collapse of the whole financial system may be just a short few weeks or a couple of months ahead. Consider the National Debt,...a political football and economic anvil all the same. If the Government doesn’t work a miracle and come to an agreement on how to proceed, then the inaction will bankrupt this country, driving the value of the dollar down, driving fuel and commodities prices up and very possibility lead to riots in the streets. Yes, we are facing financial SHTF and the question is how are we going to Survive the Collapse.

Even if the Government comes to some sort of arrangement in any case increasing the Debt limit, the Country is screwed. The Fed, acting separate from the government will print more money.....this would be QE 3 – more paper fiat currency to flood the market and deflating the value of the dollar.

If the Government cuts spending,..imagine that concept,....the cuts will have to come at least partially from entitlements which would place more people in the have not column.

Just look at Gold and Silver: Gold has recently hit record highs, probably staying above $ 1,580 an ounce for the short term before going up,....and up. Two years ago, the silver/gold ratio was above 83, with gold selling at $804.60 and silver at $9.64. Last month it was 43.04!

The bailout of Greece will reduce the availability of European Nations to buy U.S. Debt. We'll soon see a distressed and broke Federal Government trying to bail out a couple of our failed States,...California and Illinois comes to mind as both drive up taxes in a pathetic attempt to generate revenue only to drive an average of 5 businesses a week out of their respective state.

Experts in the Economy are saying that housing prices are going to decline another 20%!! And that we are, for the very least, in for a 4 to 5 year recession which are going to make times very tough for at least 100 million Americans.

Have you wondered why the last International Monetary Fund (I.M.F.) head, Dominique Strauss-Kahn, was removed and attacked so vicious and swiftly? Wondering why Timothy Geithner is about to leave his position shortly?

In the past week, Cisco, Lockheed Martin and Borders announced a combined 23,000 in job cuts. Meanwhile, state and local governments have cut 142,000 jobs this year. Whats going to happen when the Federal Government cannot pay for the massive amount of employees they have hired? Another 30,000 to 60,000 people on the street at once!

The common folk know the deal and it is bad. Here are just a few quotes I have from people who have been contacting me:

“The SHTF is coming. I'm have been taking money out of my 401K and buying something real and useful with it, rather than leave it there and have to load it in a wheel-barrow to buy a loaf of bread after the dollar collapses. Government causes inflation and uses it to reduce their debt in terms of buying power."

"Bernanke's agenda is that the dollar MUST be destroyed. Everything he does is toward that end."

"There has never been in a situation in my lifetime where a guy (President Obama) increases the debt by 40%, and GDP growth is on the way down, use of Food Stamps are up exponentially, millions more are unemployed -- and to accomplish this we spent $4 trillion of money we had to borrow. Way past time to prepare. Should have did it by now. The time now is to seek cover."

”I quit my job; took what I could out my 401K plan and moved the family to my in-laws farm. I am currently waiting it out. I’d like nothing more than to be here a year from now and have to move back to the city to get a job, but if not, then so be it, we’re ready.”

”Thanks for your site. Good interesting look at survival needs against the coming collapse. I took all of my savings out of the bank, bought a little silver, a bunch of food, sold my luxury sedan (eliminating a payment and bought a used truck). Now learning to grow my food. The question is not if the Shit Will Hit The Fan, it is when.”

Well, looks to me like many people thinking we are not going to have a successful conclusion to our country’s economic woes.

Survival Planning - The Economy is Not Getting Better!

Don't let the compromise on the Federal FY11 Budget fool you into thinking the economy is better or that we have staved off an economic collapse. The next budget fights are much more important and will have a greater impact on the speed of inflation and the path of an economic collapse.

The first one will be whether or not to extend the debt ceiling - the limit on U.S. borrowing, and the second one being the FY12 Federal Budget.

The best case scenario for continued life as we know it, is a vote NOT to increase the debt ceiling AND NO to new printing of money (called Quanitative Easing or QE) to remedy low cash flow. However this would mean that the Chinese and to a lesser extent the Japanese continue to buy our debt to finance our Federal expenditures. The likelyhood of this hapening is remote. The Chinese are battling their own inflation and also desire to replace the U.S. Dollar as the world's reserve currency...... enroute to seeing the U.S. as a second rate economy and world power. The Japanese are also over their head in debt and face massive rebuilding and political upheaval from the earthquake, Tusnami and nuclear power plant disasters.

So boys and girls, there is nothing to indicate an easing of Survival Preparations,....in fact, recent events and the Federal Government's admission of and inability to fix the debt, ease rising prices on fuel and commodities and inability to divert a collapsing economy all point to a necessary increase in Survival preparation.

Chris Martenson's newsletter with an article by Paul Tustain, sum up the debt issue as it related to a collpasing economy and the value of Gold and Silver:

"When a country's public debt exceeds 90% of GDP, that is the magic number. You get to 90%, there is no way back, and that is the number that the U.S. is going through pretty much as we speak. It is also the number which the UK has gone through; all of the PIGS are going through it, as well. They are all going past the 90% debt to GDP ratio. Obviously, Japan is miles past it already. It's up to 200%+. There does not appear, in the historical analysis, to be any great likelihood of getting back from that level of debt safely. There is this strong evidence that above 90% debt to GDP, you will experience either a cataclysmic default or some form of very serious inflation."

"So observes Paul Tustain, gold market analyst and founder of BullionVault. In his view, gold serves as a beacon who's price is currently signalling the monteary system is in grave danger."

So we are not out of the storm,...if anything we are in the eye of the storm with the backside of it stronger than anyone can predict.

Urban Survival - NIA's 12 Warning Signs of Hyper-Inflation

Here are NIA's top 12 warning signs that hyperinflation is about to occur:

1) The Federal Reserve is Buying 70% of U.S. Treasuries. The Federal Reserve has been buying 70% of all new U.S. treasury debt. Up until this year, the U.S. has been successful at exporting most of its inflation to the rest of the world, which is hoarding huge amounts of U.S. dollar reserves due to the U.S. dollar's status as the world's reserve currency. In recent months, foreign central bank purchases of U.S. treasuries have declined from 50% down to 30%, and Federal Reserve purchases have increased from 10% up to 70%. This means U.S. government deficit spending is now directly leading to U.S. inflation that will destroy the standard of living for all Americans.
UrbanMan's comment: This is like using one credit card to pay the bill of another. Unsustainable and leads the country to the brink of the dollar collapse.

2) The Private Sector Has Stopped Purchasing U.S. Treasuries. The U.S. private sector was previously a buyer of 30% of U.S. government bonds sold. Today, the U.S. private sector has stopped buying U.S. treasuries and is dumping government debt. The Pimco Total Return Fund was recently the single largest private sector owner of U.S. government bonds, but has just reduced its U.S. treasury holdings down to zero. Although during the financial panic of 2008, investors purchased government bonds as a safe haven, during all future panics we believe precious metals will be the new safe haven.

3) China Moving Away from U.S. Dollar as Reserve Currency. The U.S. dollar became the world's reserve currency because it was backed by gold and the U.S. had the world's largest manufacturing base. Today, the U.S. dollar is no longer backed by gold and China has the world's largest manufacturing base. There is no reason for the world to continue to transact products and commodities in U.S. dollars, when most of everything the world consumes is now produced in China. China has been taking steps to position the yuan to be the world's new reserve currency.

4) Japan to Begin Dumping U.S. Treasuries. Japan is the second largest holder of U.S. treasury securities with $885.9 billion in U.S. dollar reserves. Although China has reduced their U.S. treasury holdings for three straight months, Japan has increased their U.S. treasury holdings seven months in a row. Japan is the country that has been the most consistent at buying our debt for the past year, but that is about the change. Japan is likely going to have to spend $300 billion over the next year to rebuild parts of their country that were destroyed by the recent earthquake, tsunami, and nuclear disaster, and NIA believes their U.S. dollar reserves will be the most likely source of this funding. This will come at the worst possible time for the U.S., which needs Japan to increase their purchases of U.S. treasuries in order to fund our record budget deficits.

5) The Fed Funds Rate Remains Near Zero. The Federal Reserve has held the Fed Funds Rate at 0.00-0.25% since December 16th, 2008, a period of over 27 months. This is unprecedented and NIA believes the world is now flooded with excess liquidity of U.S. dollars.

NIA believes gold, and especially silver, are much better hedges against inflation than U.S. equities, which is why for the past couple of years we have been predicting large declines in both the Dow/Gold and Gold/Silver ratios. These two ratios have been in free fall exactly like NIA projected.
UrbanMan's comment: Yesterday's closing Gold and Silver prices are: $1459.10 for Gold and $39.51 for Silver.

6) Year-Over-Year CPI Growth Has Increased 92% in Three Months. In November of 2010, the Bureau of Labor and Statistics (BLS)'s consumer price index (CPI) grew by 1.1% over November of 2009. In February of 2011, the BLS's CPI grew by 2.11% over February of 2010, above the Fed's informal inflation target of 1.5% to 2%. An increase in year-over-year CPI growth from 1.1% in November of last year to 2.11% in February of this year means that the CPI's growth rate increased by approximately 92% over a period of just three months. Imagine if the year-over-year CPI growth rate continues to increase by 92% every three months. In 9 to 12 months from now we could be looking at a price inflation rate of over 15%. Even if the BLS manages to artificially hold the CPI down around 5% or 6%, NIA believes the real rate of price inflation will still rise into the double-digits within the next year.

7) Mainstream Media Denying Fed's Target Passed. You would think that year-over-year CPI growth rising from 1.1% to 2.11% over a period of three months for an increase of 92% would generate a lot of media attention, especially considering that it has now surpassed the Fed's informal inflation target of 1.5% to 2%. Instead of acknowledging that inflation is beginning to spiral out of control and encouraging Americans to prepare for hyperinflation like NIA has been doing for years, the media decided to conveniently change the way it defines the Fed's informal target.

8) Record U.S. Budget Deficit in February of $222.5 Billion. The U.S. government just reported a record budget deficit for the month of February of $222.5 billion. February's budget deficit was more than the entire fiscal year of 2007. In fact, February's deficit on an annualized basis was $2.67 trillion. NIA believes this is just a preview of future annual budget deficits, and we will see annual budget deficits surpass $2.67 trillion within the next several years.

9) High Budget Deficit as Percentage of Expenditures. The projected U.S. budget deficit for fiscal year 2011 of $1.645 trillion is 43% of total projected government expenditures in 2011 of $3.819 trillion. That is almost exactly the same level of Brazil's budget deficit as a percentage of expenditures right before they experienced hyperinflation in 1993 and it is higher than Bolivia's budget deficit as a percentage of expenditures right before they experienced hyperinflation in 1985. The only way a country can survive with such a large deficit as a percentage of expenditures and not have hyperinflation, is if foreigners are lending enough money to pay for the bulk of their deficit spending. Hyperinflation broke out in Brazil and Bolivia when foreigners stopped lending and central banks began monetizing the bulk of their deficit spending, and that is exactly what is taking place today in the U.S.

10) Obama Lies About Foreign Policy. President Obama campaigned as an anti-war President who would get our troops out of Iraq. NIA believes that many Libertarian voters actually voted for Obama in 2008 over John McCain because they felt Obama was more likely to end our wars that are adding greatly to our budget deficits and making the U.S. a lot less safe as a result. Obama may have reduced troop levels in Iraq, but he increased troops levels in Afghanistan, and is now sending troops into Libya for no reason.

11) Obama Changes Definition of Balanced Budget. In the White House's budget projections for the next 10 years, they don't project that the U.S. will ever come close to achieving a real balanced budget. In fact, after projecting declining budget deficits up until the year 2015 (NIA believes we are unlikely to see any major dip in our budget deficits due to rising interest payments on our national debt), the White House projects our budget deficits to begin increasing again up until the year 2021. Obama recently signed an executive order to create the "National Commission on Fiscal Responsibility and Reform", with a mission to "propose recommendations designed to balance the budget, excluding interest payments on the debt, by 2015". Obama is redefining a balanced budget to exclude interest payments on our national debt, because he knows interest payments are about to explode and it will be impossible to truly balance the budget.

12) U.S. Faces Largest Ever Interest Payment Increases. With U.S. inflation beginning to spiral out of control, NIA believes it is 100% guaranteed that we will soon see a large spike in long-term bond yields. Not only that, but within the next couple of years, NIA believes the Federal Reserve will be forced to raise the Fed Funds Rate in a last-ditch effort to prevent hyperinflation. When both short and long-term interest rates start to rise, so will the interest payments on our national debt. With the public portion of our national debt now exceeding $10 trillion, we could see interest payments on our debt reach $500 billion within the next year or two, and over $1 trillion somewhere around mid-decade. When interest payments reach $1 trillion, they will likely be around 30% to 40% of government tax receipts, up from interest payments being only 9% of tax receipts today. No country has ever seen interest payments on their debt reach 40% of tax receipts without hyperinflation occurring in the years to come.

UrbanMan's comment: Things are not looking good for us or the U.S. You add antedotal information from large amounts of people buying Gold and Silver; buying guns; stocking food and you begin to believe that the path is irreversible. I hope not. I would just as soon have my Survival Preparation,....my Silver,...my guns and ammunition all stay on the shelves and in the gun safes. But I fear this is not going to be the case.

Message from NIA: It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

Survival Planning - Gold Confiscation Possible?

UrbanSurvivalSkills.com received this analysis from one of our financial advisors on what he thinks is likely to happen this calendar year:

There is much talk on the internet about possible Gold confiscation by the U.S. Government. A series of factors will influence this: the devaluation of the U.S. Dollar due to excessive printing of this fiat currency in a misguided attempt to increase the monetary supply and supposedly the economy; the ever increasing debt of the U.S. Government; the International Monetary Fund (IMF), France and China (among other countries) working to remove the U.S. Dollar as the World’s currency; and, the fact that oil commerce today is accomplished using the U.S. Dollar as the mean trading unit. Once the Dollar is not longer the World’s reserve currency, the U.S. will not be able to purchase crude oil at the prices we are seeing today.

Other factors may be what the new world’s reserved currency will look like. Will it be the Chinese Yuan or a conglomeration or mix of many different currencies? Will the new world’s reserve currency be forced to hold physical assets, such as gold, in a sort of escrow to ensure it’s credibility and ability to hold value? Will any new U.S. currency be linked to gold?

There is good theory out there that predicts that once gold hit’s a certain value per ounce, say $2,000, then the U.S. Government will move quick to avert full fledged slide of the U.S. dollar by requiring an exchange of privately held gold for U.S. currency, albeit at a rate they determine, Enforcement measures have already been put in place with Obamacare’s new 1099 form requirements which mandate gold/silver vendors to place all precious metals transactions over $600 on an 1099 form.

Additionally, confiscation implementation will probably also come from confiscatory taxes. High taxes, 80% to 90% on any profit from precious metals will discourage investment and holding of PM’s.

So what am I saying?

One – Inflation is going to hit and be severe; all commodities will increase in price and decrease in availability.

Two – Congress will be half stepping to avert forfeiture of the U.S. gov’t on the debt and the U.S. Dollar from being removed as the world’s reserve currency.

Three – Gas will hit $5 without the U.S. Dollar being removed as the world’s currency; $7 a gallon is the IMF and China get their way.

Four – Gold will hit near $2,000 an ounce and the U.S. Government will be forced to secure or confiscate Gold to avert a total disaster and will set the new gold price, relative to the existing U.S. Dollar or a new currency, around the $250 per ounce mark.

Five –Ensure you have silver is your survival planning; silver is much more harder to confiscate however see the part of 1099’s!

Six – If you have precious metal assets you should think about not having them if someone from the Government comes to your door.

This is the Counter Confiscation Argument:



What UrbanMan thinks: I think Gold and Silver will continue to climb. I think the U.S. Dollar will continue to plummet and prices for commodities will rise, particular fuel - this will skyrocket. When this gets to the tipping point, the economy will tank. The USG will not confiscate Gold. They may heavily tax gold and bar future private ownership, but will not confiscate gold. The USG may interview people, reference to tax code from 1099's on Gold and other PM acquisitions on abeyance in reporting. But don't look for confiscation. Even then, be prepared for all threats.

Urban Survival Planning - End of America

Yet another prominent Financial Analyst predicting a collapse.

Porter Stansberry, just over 10 years ago, founded Stansberry & Associates Investment Research. It has become one of the largest and most recognized investment research companies in the world, serving hundreds of thousands of subscribers in more than 120 countries.

You may have heard of it due to the work they did over the last several years – helping investors avoid the big disasters associated with Wall Street's collapse.

Stansberry warned investors to avoid Fannie and Freddie, Bear Stearns, Lehman Brothers and General Motors and dozens of other companies that have since collapsed. They helped their clients and newsletter subscribers find opportunities to profit from these moves by shorting stocks and buying put options. Stansberry Associates credit themselves having an unmatched record of correctly predicting the catastrophe that occurred in 2008.

Stansberry says this looming crisis is related to the financial crisis of 2008... but it is infinitely more dangerous, which could actually bring our country and our way of life to a grinding halt. He fully expects as the dollar to collapse, first discounted, then refused to be accepted then collapsing. Stansberry also expects there to be riots in the streets... arrests on an unprecedented scale... and martial law, enforced by the U.S. military as this crisis will threaten our very way of life.

The savings of millions will be wiped out. This disaster will change your business and your work. It will dramatically affect your savings accounts, investments, and retirement. It will change everything about your normal way of life: where you vacation... where you send you kids or grandkids to school... how and where you shop... the way you protect your family and home.

Watch the video below and go to the following website to read the full text of his letter advertising his newsletter which would be a god idea to receive if you want to stay on top of the economic indicators that will precede a collapse.


http://www.stansberryresearch.com/pro/1011PSIENDVD/WPSILC13/PR

Urban Survival Planning - Econmic Collapse Accelerates in Fall

Wow! Do not know how this got by me until today, as this article was published on 29 September, a week ago.. I was in a debate with a couple people about, in their perception,....that the economy was back on track,.....and the flowers are blooming,.......the birds are singing, etc. They basically had their heads in the sand. The following is part of a much longer article that Giordano Bruno wrote for Neithercorp Press, which can be found in it's entirety at
http://neithercorp.us/npress/?p=812

Combined with recent skyrocketing Gold and Silver prices, Mr Bruno makes good sense. I know what is possible and I hope a collapse is averted, but there just too many indicators otherwise. Take heed my friends.

Economic Collapse Update: Acceleration in Autumn

Our current economy is a shell game. A grand fraud designed to siphon more and more tangible wealth (not fiat wealth) from the average person and transport it post-haste into the silk lined pockets of a corporate banking minority. The goal? To reduce the self sufficiency of American citizens to the point of total fiscal and social dependence on the top 1% richest men in the world. Conspiracy theory? Not in the slightest. Just a cold hard fact of history. “Feudalism” is, sadly, rampant in the annals of human culture. Anyone who believes that our modern era is somehow different is simply fooling themselves. Elitists seek power over others, they always have and they always will, and, the most efficient way to gain control over the lives of the masses is through engineered imbalances in economy.

Every time you hear the term “bailout”, or “quantitative easing”, just think “wealth transference”. Every dollar that is printed from thin air by the private Federal Reserve and handed to a globalist entity like Goldman Sachs or AIG through our Treasury represents yet another dollar of debt (and another percentage of interest) that you, the U.S. taxpayer, and your children, are expected to eventually pay for without ever seeing any benefits. Right now, at this very moment, you and your descendants for generations to come are being enslaved by forcefully imposed usury. Our country has been “volunteered” for a financial debasement on a scale that dwarfs the Great Depression or even the Weimar catastrophe. We ignore this reality at our peril.

Since the initial meltdown began in 2008, we have seen two and a half years of stall tactics and skewed statistics designed to prolong total collapse while central banks position themselves for optimal gain. Simultaneously, the concrete underlying factors of our economy, including employment and purchasing power, have gone down the tubes. True, the system was an illusion long before its many flaws were openly revealed, and it needs to be dissolved, but should it be dissolved to the advantage of the elites who designed its flaws in the first place, and to the detriment of the rest of us? I think not…

Today, as Autumn 2010 begins to settle upon us, many notable and even dire trends are beginning to break the surface of the water and circle the sinking wreckage of our financial system. I believe these factors signal an extreme acceleration in the possibility of “trigger events”, which we have discussed in previous articles, and herald a new dynamic, a process that will directly contribute to a final breakdown of the present system. Let’s examine these trends now…

Dow Bubble Until November Elections?

If you look back at the history of economic collapses across the world, you’ll find a strange and ironic constant preceding most breakdowns; the disproportionate values of stocks and securities when compared to actual profits and consumer activity. The Great Depression saw record breaking rallies in the Dow and relentless financial propaganda claiming recovery was imminent just before total derailment. In many cases, investor confidence seems to be most heightened just before a brutal plunge. Perhaps it’s the power of reactionary denial, or maybe it’s the increase in false data supplied by establishment economic goon squads.

September has seen a very uncharacteristic stock rally, especially considering the fact that U.S. poverty levels are now at a 15 year high.

UrbanMan Comments: Mr Bruno's article goes on with links and facts to articulate what he is saying. His article continues on until he starts talking about Gold, which jumped up considerably in the last few days.

Gold Is Money Again…Must Be Time For A Collapse...

Finally, we get to the biggest development this fall; the so far unstoppable juggernaut of gold and silver.

Gold is breaking records weekly, sometimes daily, now rushing past the $1300 an ounce mark without batting an eye. Not long ago I predicted gold would hit the $1350 to $1400 mark by this winter, but it seems I may have underestimated the precious metal. $1500 is not out of the question in the next three months, especially if trade laws are passed against China before elections.

Silver has passed the $21 an ounce mark but is still highly undervalued in my opinion. I suspect that we could see a rapid increase in physical silver, akin to a “short squeeze”, before the year is out.

What is driving the new gold rush? MSM economists are apparently at a loss for words (which is rare). Gold criticism and uneducated skepticism has fallen silent lately. It’s hard to argue with the $1300 an ounce gold. Pundits are still bewildered at gold’s success, especially since they rely on disingenuous CPI and inflation data from the Federal Reserve and the government to make their deductions. This has led them to assume that an excessive sense of “fear” has pervaded markets and created a bubble in gold. They can’t seem to grasp that the bubble is not in gold, but in fiat currencies and the stock market, and this is why gold is on the rise.

Central Banks, primarily in Asia, are snatching up gold weekly. We all know about China’s unparalleled gold buying, but there are many other countries turning to PM’s as well. Thailand has apparently been buying gold in large quantities under the radar, improving their reserves by as much as 20%:

Reader Question on the Case for the Coming Collapse

UrbanSurvivalSkills.com received a reader comment on the post titled The Case for the Coming Collapse,…...."Anonymous said... So what are you suggesting I do? Take out my money from the bank and empty out my 401K and sit on my money at my house? I do not understand what you are trying to get me (us) to do."

UrbanMan replies: The article I drew from was by Dr Craig Roberts and was not meant as a “how to” or “what to do”, although I can see how it is implied that you should do something since the momentum for a collapse is practically unstoppable.

What you do is up to you. A prudent man would listen to a lot of sources, collect information across the board and develop a plan that is feasible for him and his family. Feasible means doable….within your capability.

That plan also needs to be Complete,…considering all possible events and circumstances. From these events and circumstances, that same man and his family could develop a list of Survival Gear, Equipment and Material that would be necessary to support the plan.

Your preparation for the plan and the execution of this plan needs to be Suitable for your goals. This list for procurement and preparation will be long and most certainly will be expensive, therefore the list will need to be prioritized.

The plan also needs to be Acceptable,…..meaning the risks on not doing the plan or the financial risks of executing the preparation plan are acceptable.

Those words,....Complete (covering all major planning areas); Feasible (within the your capabilities); Suitable (meets your needs); and, Acceptable (within accepted risks) are straight out military operational planning when determining possible course of actions to accomplish a given mission.

Now as far as financial planning goes, I am not suggesting you pull out all your money from the banks and sit on it. Think about this….you have $4,000 in cash in your gun safe – worth about $4,000 of goods today and probably tomorrow. If and when hyper-inflation hits that money will loose value. That same $4,000 will then buy less and less. Nor am I suggesting you spend all your money all Survival Gear, Equipment and Material. And I am also not suggesting you trade your paycheck every two weeks for an equal value of gold or silver. What ever you do has to meet those operational requirements for you and your family.

I would however suggest that possible things you can do, is ensure you have a minimum amount of Survival Gear, Equipment and Material which for you may or may not include firearms, equipment, and stored foods; think about keeping some cash on hand for immediate procurement/purchasing needs;....think about having some amount of gold and silver; and, above all keep yourself situational aware of indicators for the coming collapse, be it a over night major event or a gradual slide into a economic depression and chaos. You should have a plan on where to go (that is safe) in the event where you are at is no longer viable for survival.

Good luck to you and remember my first suggestion,...collect information, listen to diverse sources, determine what is valid for you, your family and your plan and get to preparing.

Urban Survival Planning - Argument For Economic Collapse with the Shrinking of the American Middle Class

The Middle Class in America is Radically Shrinking, from The Business Insider
by Michael Snyder, Editor of theeconomiccollapseblog.com

UrbanMan’s Comment: What do you think will happen when there is no middle class only a lower class scraping to get by and an elite class? What will this ratio look like? 10% Upper Class and 90% in the poverty zone? How long will the people in the poverty zone put up with that? The 10% in the Upper zone will include the super rich and government employees, over 400,000 added to the roles is the number I seen, compared to 2.5 million net job loss since the Obama Administration came into office. Keep in mind this article was written by a economist, who is not in the habit for preparing for the worst like we are.

The 22 statistics detailed here prove beyond a shadow of a doubt that the middle class is being systematically wiped out of existence in America. The rich are getting richer and the poor are getting poorer at a staggering rate. Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a blinding pace.

So why are we witnessing such fundamental changes? Well, the globalism and "free trade" that our politicians and business leaders insisted would be so good for us have had some rather nasty side effects. It turns out that they didn't tell us that the "global economy" would mean that middle class American workers would eventually have to directly compete for jobs with people on the other side of the world where there is no minimum wage and very few regulations. The big global corporations have greatly benefited by exploiting third world labor pools over the last several decades, but middle class American workers have increasingly found things to be very tough.

Here are the statistics to prove it:

83 percent of all U.S. stocks are in the hands of 1 percent of the people.
61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 43 percent in 2007.
66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.

36 percent of Americans say that they don't contribute anything to retirement savings.
A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
24 percent of American workers say that they have postponed their planned retirement age in the past year.
Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.

For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.
In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.

Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.
In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.
In America today, the average time needed to find a job has risen to a record 35.2 weeks.
More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.
For the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.

This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.
Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
The top 10 percent of Americans now earn around 50 percent of our national income.

Giant Sucking Sound

The reality is that no matter how smart, how strong, how educated or how hard working American workers are, they just cannot compete with people who are desperate to put in 10 to 12 hour days at less than a dollar an hour on the other side of the world. After all, what corporation in their right mind is going to pay an American worker 10 times more (plus benefits) to do the same job? The world is fundamentally changing. Wealth and power are rapidly becoming concentrated at the top and the big global corporations are making massive amounts of money. Meanwhile, the American middle class is being systematically wiped out of existence as U.S. workers are slowly being merged into the new "global" labor pool.

What do most Americans have to offer in the marketplace other than their labor? Not much. The truth is that most Americans are absolutely dependent on someone else giving them a job. But today, U.S. workers are "less attractive" than ever. Compared to the rest of the world, American workers are extremely expensive, and the government keeps passing more rules and regulations seemingly on a monthly basis that makes it even more difficult to conduct business in the United States.

So corporations are moving operations out of the U.S. at breathtaking speed. Since the U.S. government does not penalize them for doing so, there really is no incentive for them to stay.
What has developed is a situation where the people at the top are doing quite well, while most Americans are finding it increasingly difficult to make it. There are now about six unemployed Americans for every new job opening in the United States, and the number of "chronically unemployed" is absolutely soaring. There simply are not nearly enough jobs for everyone.

Many of those who are able to get jobs are finding that they are making less money than they used to. In fact, an increasingly large percentage of Americans are working at low wage retail and service jobs.
But you can't raise a family on what you make flipping burgers at McDonald's or on what you bring in from greeting customers down at the local Wal-Mart.

The truth is that the middle class in America is dying -- and once it is gone it will be incredibly difficult to rebuild.

Geography of a Recession - Map to the Collapse

The below video covers the month by month unemployment since January 2007. But that's not the only indicator of a coming collapse. Real unemployment, counting those who cease looking for work,...or those who are under employed,..... you know those PhD holders flipping burgers, would raise this rate more than double. Add projected taxes increases to pay for the Obama Administration's social programs, taxes and fees associated with National Health Care, projected fuel increases and the following higher prices for commodities all make the case for a depression, not recession, and great chance for a economic collapse of this country. Are you prepared?

According to the U.S. Department of Labor's Bureau of Labor Statistics, there are nearly 31 million people currently unemployed -- that's including those involuntarily working part time and those who want a job, but have given up on trying to find one. In the face of the worst economic upheaval since the Great Depression, millions of Americans are hurting. "The Decline: The Geography of a Recession," as created by labor writer LaToya Egwuekwe, serves as a vivid representation of just how much. Watch the deteriorating transformation of the U.S. economy from January 2007 -- approximately one year before the start of the recession -- to the most recent unemployment data available today. Original link: www.latoyaegwuekwe.com/geographyofarecession.html.

Making the Case for a Coming Economic Collapse

UrbanSurvivalSkills.com does not represent itself as knowing much of any thing regarding how economies work or anything, however given the dire economic situation not only in the United States but all of Europe, combined with wars in Iraq and Afghanistan and a very probable large scale Arab/Muslim attack on Israel or even open war against Israel (because of the Flotilla incident) and what all those events will do to the economies, we believe we are facing are facing a coming large scale economic collapse.

Add in the economic blow from the oil spill in the Gulf; the North Koreans sinking South Korean ships; the Chinese emboldened to act against Taiwan (since the U.S. appears to abandoning allies); and, Iran building Nuclear weapons - all paint a black picture which holds minimal promise that we can get out of it unscathed.

The blow video, tongue in cheek as it is, illustrate the ludicrous nature of deficit spending and failing Country economic system and will take us into a collapse.

Prepare for Urban Survival, Prepare Now and Prepare well.