Second Recession - Are We Going to See Riots then Economic Collapse?

Paraphrasing the article, "Second Recession in he U.S. Could Be Worse", from the New York Times,.....their view is that the second recession (are we out of the first yet?) could be extremely painful and may not be recoverable.

Glenn Beck is predicting riots in the streets. And he is pretty damn accurate. We are seeing riots in England right now, and not just from the Police killing a man in an attempted arrest,...what fueled the riots is the general feelings by the "have nots" that they are getting the "short end of the stick".  They like alot of us in the U.S. are tired of their government  running this country into the ground.

Nowhere will this be larger issue if the high density population groups in the U.S. can't get food anymore either due to escalating prices or lack of availability....or fuel,......or really any commodity necessary for life or just plain survival.


We have seen two consecutive days of giant losses on the Stock Market.  Over 500 point on Friday 5 August, then over 600 points on Monday 8 August. What is going to happen if the Stock Market goes into free fall?

If the economy falls back into recession, as many economists are now warning, the bloodletting could be a lot more painful than the last time around.  “It would be disastrous if we entered into a recession at this stage, given that we haven’t yet made up for the last recession,” said Conrad DeQuadros, senior economist at RDQ Economics. And this is the good news. This is an understatement.

Anxiety and uncertainty have increased in the last few days after the decision by Standard and Poor’s to downgrade the country’s credit rating and as Europe continues its desperate attempt to stem its debt crisis. This is going to force the U.S. to execute entitlement reform, leaving millions without, or worse yet, have their credit dry up,..in effect becoming bankrupt.

We have had a population in the work force grow by 3% in the last four years, but jobs have declined, putting an extremely large number of people out of work and on some sort of welfare.  What happens when the Government either begfins entitlement reform or just goes plain bankrupt and people have no choice really but to take what they need. 
We are very lucky that  fuel prices and interest rates have remained comparitively low, but that just cannot last for very much longer and the decline will become much more rapid.

Think about what you are going to do once food cannot be obtained, due to either high prices or unavailability.   Where are the most likely places for riots to begin?  Where will they migrate to?  Speaking of migration, are you are a natural refugee route?   How is your OPSEC?  How many people know you stock food and supplies?  Are you tracking the indicators of this potenial collapse?

As I post this the morning of Tuesday August 9th, I have no idea what will happen today, but you can be damn sure I'll have both the Television and radio on at work, as well as surf through revelent sites when I have the time,...and I will make the time.  This week may very well be critical.     

New York Times article: http://finance.yahoo.com/news/Second-Recession-in-US-Could-nytimes-2428475539.html?x=0

More Fixed Blades Knifes for Armageddon

I received a comment that the link to Spartan Blades did not open. Here it is again, and I have tested it, so this should work:

Spartan Blades

Two people that I know well, one a high powered Fed and the other a top shelf gun hand for the military each had different ideas on the best fixed blade knife to carry.

One of them loves his fixed blade Strider, telling me that it is thick enough to drive into an elephant's skull and it is the only fixed blade he now carries, although if I know this guy like I think I do,...one or two knives is no knives, so I know he carries a couple extra, probably folders. Did not get a chance to ask him.

Strider Knives

The other gent, if I can call him that without offending him, tells me his next knife will be an Up-Armored fixed blade fighter. This professional warrior has carried a Randall No. 1 early in his career and since then has put that knife away since they don't make them anymore, and now owns several SOG Bowies. He said his last knife will be a Up-Armored Knife. I have not heard of this company so I checked out their website and they make some beautiful knives.

Up-Armored Knives

I probably won't be posting too much more information on high end products as I planned from the get go for this to be a site that offered common sense survival prepping information for the common man,..meaning it had to affordable too. Not too many people I know will sink $400 into a fixed blade knife. But since someone asked,.....

SHTF: Argentinian example of Economic Collapse

This post and topic jumped to the top of our heap because of the recent downgrading of the U.S. credit worthiness and the bad economic forecast that presents to Americans. There is an interesting interview with Mr. Fernando Aguirre who was a first hand witness of Argentinian Economic and Currency Collapse in the Fall of 2001, from which the events in the U.S. are mirroring those of what Mr Aguirre experienced.  He  is the author of "Surviving the Economic Collapse", go to the website listed at the bottom of this post hear Fernando tells chilling stories of bank closures, life savings lost, & starving people slaughtering cattle on public roads just to survive.

What will be telling is how the markets, first in Japan as they open much earlier than our (around 6:00 pm Sunday Eastern Standard Time) and the direction the U.S. Markets take after that on Monday morning,....but back to Aguirre and his lessons from Argentina.       

Aguirre tells of the currency value deflation; massive unemployment and percent of population in poverty escalating;...or pretty much where we are at now here in the U.S........

.........followed by massive attempts by the Argentinian population to withdrawal money or otherwise "cash hoarding" and the immediate black market exchanging of Argentinian currency to U.S. Dollars; then the government attempts to control money leaving the banks and limit banks failing buy laws on withdrawals limits.  And all along the government telling lies to the people, probably justifying it by the rationale of minimizing chaos, riots and violence. 

If you are not one of the fortunate people who are prepared including holding physical Gold and Silver, what currency are you planning to exchange dollars for?????

Aguirre Interview on Contrary Investors Cafe

Is Economic Collapse Close at Hand?

Yesterday the Stock Market took a 512 point downturn. Today will be very telling as to just how close we are to a fast slide of economic collapse.

The rest of the World's view of the U.S. economy is basically that the inmayes are running the asylum. What happens here effects the rest of the World since the U.S. dollar is depending heavily on on the dollar for it's stability and status as the World's reserve currency. Both the stability and status are close of going away. So that foundation has been rocked with the U.S. Government expanding the limit of borrowing and the resultant show of a lack of confidence from Wall Street and many other Countries. What that means to use is the potential for massive inflation and hence a depression.

Add to the fact that about 25% of personal income is coming directly from the government in the form of entitlements, such as Disability pay, Social Security, Food Stamps, Jobless Benefits which are all funded by the U.S. Government which is borrowing heavily to pay for these entitlements.

By the end of this year, many of those dollars that fund entitlements are going to disappear,..some by the expiration of these benefits and some because the lack of moeny to pay for them.

Add QE3, where the Government prints more money, which in turn devalues the existing money supply, and we have a SHTF - Economic Collapse scenario on the tipping point.

Moody Analytics predicts a weakened economy coming due to lack of job growth;.....the Labor Department predicts smaller job growth;.....continued massive foreclosures will drive more people in banckruptcy and shorten the available money supply from lenders;.....the Federal extension of jobles benefits will expire soon placing many more people desperate for a way to feed their families and pay basic bills.

The outlook is not good. If you have never kept track of all the economic and political factors that would influence a collapse, now is the time to start. It is very likely that we are at the tipping point to a rapid slide towards a depression and then a partial or total economic collapse.

I would suggest to be leaning forward. Maybe finalize your last minute preparations. Ensure you have some ready cash for the chaotic one day where it will be apparent and you may need to be prepared to procurement whatever you are not willing to procurement today.