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Showing posts with label State of the Economy Spring 2011. Show all posts
Showing posts with label State of the Economy Spring 2011. Show all posts

Tuesday, May 17, 2011

Urban Survival Preparation - The State of the Economy, Spring 2011

Yesterday, the U.S. Government just hit the debt ceiling and now the Government is "borrowing" pension funds to keep the government afloat. This summer Home Foreclosures are projected to increase exponentially. The U.S. economy even with a sound dollar and low fuel prices would certainly feel this blow,...however add in the factors of commodities price inflation, devaluation of the dollar, high fuel prices and turmoil with oil suppliers,..and we have the recipe for a collapse.

It is interesting to unemotionally consider the causes, indicators and the effects of the collapse. Will there is a significant event to act as a catalyst? Will there just be an ever so gradual slide into a Greater Depression? At what point will the diminishing food supply and the increasing hungry masses be a factor? Will this result in sporadic or wide spread food riots? Will the Government use the Insurrection Act to deploy active duty military? Will AD military use lethal force on U.S. citizens?

We are about to reap what we have sown for so long. After all we have created an entitlement society where maybe 15% of the population expect someone, usually the Government, to provide for them. There are even polls out where a significant percentage of the people think the Government should provide housing, food and medical care.

The nation's debt is simply too big. It is unrecoverable. The U.S. Government has been spending like a drunken lottery winner for two decades. Going to the Chinese, the Japanese and other countries to borrow money to spend where the National Debt is over $14 trillion,....This year, the government is projected to spend $3.8 trillion with revenues at $2.2 trillion,......due the math - about 40% of this spending is from borrowed money and another $1.4 trillion added to the debt,...hence the requirement to increase the Nation's debt limit. And make NO mistake about it , this Government will due just that.

Social Security and Medicare, equal about 40% all Government spending.

The Military accounts for almost 20 percent.

Medicaid, which is actually some sort of necessity as it keeps poor people from becoming even poorer equals about 8 percent.

Interest (minimum) on the National debt, meaning payment sto China and others, is almost 6%. And it is not so simple as the U.S. defaulting on loan payments, like your neighbor did on his new vehicle. If the U.S. defaults an incredibly round of global economic repercussions will be felt.

So far, we have 74% of the Federal Budget. ....

Add in normal Government functions,.....well, okay, it is hard to call them normal when we have seen massive growth of the Federal Government,...people, powers and appetite wise. Anyway, this accounts for the rest of the budget,..around 26%.

Some of that can surely be cut without ruining this Country and cuasing wide spread rioting and even Anarchy. BUT 40%!!!

The Government has not choice but to raise taxes. This will of course de-stimulate the economy. Prices for fuel and food will continue to rise,....more people will be poor and hungry,.....all this will be the catalyst for the collapse, the only question is will be through significant steps or just a gradual decline in the abyss.

Does this change your survival preparations? Are you heading for your Bug Out location now? I think the answer is no to both. In fact, it should stimulate your preps. Factor in that most of us are dependent upon our jobs; our daily normal lives also impact quite a bit on our preps. I think the idea is to keep moving forward; better your Survival Preps each week, if not each day. Plan and prepare well and be safe,
Urban Man