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.