More Proof of the Coming Economic Collapse

ETF Daily, basically an investors information-financial intelligence site often produces excellent articles dealing with the U.S. and World financial situation. Not necessarily from a "gloom and doom, the collapse is coming" perspective, ETF Daily does provide some insight into the possiblities of a national and world wide economic spin downward and that of course is the economic collapse, one of many possible SHTF scenarios, that we have been prepping for.

I have copied some of a recent article by ETF concerning government created bubbles and major events that will cause them to burst and herefore bring the economic collapse closer to the surface if not
bubbling over and effecting life as we know it. Read the entire article here.

The Tech and Housing Bubbles That Created These Giant Failures Were SMALL in Comparison to the Greatest Bubble of All, Being Created RIGHT NOW! I’m talking about the massive growth of the federal government that we’ve seen over the past few years.

Not only is the government bubble the biggest of all time, but it is rapidly expanding in four separate ways:

First, we have an unprecedented Government Debt Bubble: Washington has spent a record $16.3 trillion since 2007 … has added $6.5 trillion to the national debt … and is CONTINUING to run up trillion-dollar-plus deficits every year.

Second, we are witnessing the Greatest Monetary Bubble in U.S. history: Just since 2008, the Federal Reserve has dumped more than $1.8 trillion newly-created U.S. dollars directly into the economy. Plus, the Fed is creating even MORE money by holding interest rates low in order to
increase loan demand. Never forget: When banks lend money, they effectively create new U.S. dollars out of thin air.

Third, we have a Government Employment Bubble. The Heritage Foundation reports that since December 2007, even while the private sector workforce has shrunk by 6.6%, shedding more than 7.5 million jobs … the federal government workforce has grown by 11.7%, adding 230,000 jobs.

Fourth, and most dangerous, there’s the Entitlement Bubble: Just consider the facts:

One in every five Americans now relies on federal assistance.

Nearly 46 million Americans need food stamps to keep body and soul together — 34% more than just two years ago.

The average recipient of federal aid collects $32,748 in benefits — about $300 more than the average tax-paying family gets in disposable income.

The biggest of all: The government’s obligations for Social Security, Medicare and Medicaid are now $65 trillion, nearly five times the value of all the goods and services produced by the entire country.


But Soon, Three Major Events Will Burst This Massive Bubble …

First, the U.S. government is going to lose its primary creditors — overseas investors. In fact, there’s abundant evidence that this deadly process has already begun. That’s why Lawrence Goodman a former Treasury official and president of the Center for Financial Stability, pointed out last week that major U.S. creditors like Japan and China, that once scooped up U.S. debt, are shunning it. Such foreign purchases of U.S. debt amounted to 6 percent of GDP and has since fallen by over eighty percent to a paltry 0.9 percent.

Second, that’s why the Federal Reserve has had no choice but to temporarily fill the gap. Last year the Fed used printed money to purchase a stunning 61% of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis. This raises the question: What happens when the Fed’s actions drive fuel, food and other prices through the roof? Treasury interest rates surge — the first sign that the government bubble is bursting.

Third, ultimately entitlements must be cut — just like they’re being cut in Europe. In Spain, Greece, Portugal and Italy, those cuts are taking massive amounts of money out of the economy and plunging them into deep recessions.

Imagine what will happen when the world’s largest government with the world’s largest entitlement obligations begins making similar kinds of cuts!

Make no mistake: This great government bubble — probably the greatest mankind has ever seen — is destined to burst. And when it does, blood will run hip deep down Wall Street and effect every aspect of our lives.

Survival Planning: Another Run on Guns?

I often go through my pockets and pull out $1 bills and the ocassional $5 bill and put into a jar then a couple times a year fish it out to spend on survival odds and ends so I stopped in a local gun shop the other day seeking to buy a few boxes of ammunition for some of the older guns in my battery of firearms. To my surprise at 3 pm on a weekday afternoon, the gun shop was full. Knowing all the guys running the store and not having been in the store for a few months, I asked if the crowd was unique and I was told that for the past 2, maybe three months, business had picked up substantially.

One of the guys was adament that the Doomsday Prepper television shows had much to do with it, but all of them agreed that business would remain high through the national presidential elections and even continue through that if Obama is elected again.

Oh my ammunition? I was seeking some .30-06, .30 carbine, .30-30 and .380 for some backup guns of mine. I walked out of the store with one box of .30-30 - that was all they had in stock. I was told to call or stop back in four weeks.

My recent experience must be the norm as ABC-Good Morning America published an on-line article, by Alan Farnham (probably no relation to John), titled Gun Sales Booming: Doomsday, Obama or Zombies? In case you missed it, here it is:

Buyers in record numbers are flooding into gun stores, retailers say. Ammo, too, is flying off the shelves. The reasons for the spike, last seen in 2009, include fears that a second Obama administration might restrict gun ownership and the popularity of TV shows devoted to doomsday preparation and killing zombies.

"He's never been pro-gun," says Cris Parsons of President Obama. Parsons, 31, owns a Texas gun purveyor called the Houston Armory. So far, Parsons insists, Obama has been "pretty coy" about his antipathy toward guns--and he likely will remain so during the campaign. To do otherwise would "upset a lot of people."

But if Obama wins a second term, he'll have "nothing to lose," says Parsons. Alan Korwin, author of nine books on gun laws, including "Gun Laws of America," says gun owners are worried that the president, as a lame duck, will clamp down as never before on gun ownership.

Parsons says about 40 percent of Armory customers cite this fear as their reason for stocking up on guns and ammo now, before the election.

"Frenzy" is the word he uses to describe their buying. Dollar sales for the Armory are up 30 to 40 percent this quarter compared to last. Parsons thinks his store's performance is indicative of sales nationally, based on what he hears from dealers, suppliers and other store owners.

Gun maker Sturm, Ruger says that in the first quarter it received orders for more than 1 million firearms--so many that it has now had to stop taking orders. Says a notice on its website: "Despite the company's continuing successful efforts to increase production rates, the incoming order rate exceeds our capacity to rapidly fulfill these orders. Consequently, the company has temporarily suspended the acceptance of new orders." It expects to resume accepting orders, it says, at the end of May.

Stocks of gun makers are surging. Sturm, Ruger's share price is up 55 percent this year. Smith & Wesson soared 91 percent. Sporting goods and hunting retailer Cabela's is up 53 percent.

Other forces besides politics, though, explain the current boom. "There're the 'preppers," explains Parsons, "and then there's this whole Zombie Apocalypse thing."

He refers to two hot trends in popular culture.

The first is a National Geographic TV show called "Doomsday Prepers" that chronicles the preparations being made by people convinced that a doomsday of some kind is coming. A whole industry has sprung up to sell preppers survival and self-dense goods, including guns and ammo.

Then there are zombies--zombie movies, zombie comics, zombie novels, zombie TV shows. Americans' fascination with all things zombie, Parsons says, has grown to such proportions that arms manufactures now have come out with zombie-specific firearms and ammo. Products include a line Zombie Max ammunition (slogan: "just in case") made by Hornady Manufacturing. "We can't keep it in stock," says Parsons. "It comes in a cool, colorful box with a Zombie on it."

There are more than a dozen manufacturers, says Parsons, making zombie rifles, some with a picture of a zombie on them The two position on a zombie rifle's safety, instead of being marked "safe" and "fire," are labeled "dead" and "undead."

Gun maker DPMS Panther Arms is taking sign-ups now for its fifth annual zombie shoot, "Outbreak: Omega" set for June 23. "DPMS' Outbreak: Omega," says the company's website, "is the Original Zombie Shoot, and the largest. It is a non competitive 3-gun style fun shoot. All are invited to come and try your hand at killing Zombies. Tons of Prizes...followed by a HUGE after party!"

Attendees don't actually shoot Zombies, which, last we heard, don't actually exist. They shoot targets that are zombie stand-ins.

Says Parsons, summing up the reasons for record gun sales, "You got zombies, you got 'preppers, and you got Obama."

$8 a Gallon Gas?

Are you planning for any changes if fuel costs double this year? What are you willing to do without or how are you otherwise going to stretch those dollars as well know as fuel jumps so does all other commodities?

Some analysts are saying that even $8 a gallon is on the low side for the potential price increase especially if thee is a conflict in the Middle East involving Iran. Military analysts are suggesting that the least aggressive tactic that Iran could employ would be to lay anti-ship mines in the Straits of Hormuz. Which would take the U.S. and probable ally England many weeks to clear. Imagine the sinking of one of our aircraft carriers and/or one large oil transport ship in the Straits. Sure, the very probable U.S. relatiation would be massive, but it would do nothing to ease the price of oil.

Others are suggesting that oil at $200 a barrel/gas at $8+ a gallon would spur a massive downturn of the U.S. economy; causing businesses to lay off people; propell another large stimulus; cause the Federal government to borrow more to pay entitlements; devalue the U.S. dollar and push the Fed into another rounds of Quanitative Easing - which of course if injecting more money into financial institutions further devaling the dollar causing inflation,....and posibly the Survivalist Prepper's fear, a hyper inflationary period.

Dominique de Kevelioc de Bailleul's article, titled "Worried About $6 Gas Prices? Try $8" from ETF Daily is a necessary read. To summarize the key points of this article:

$6 gas in the U.S. may be even a low-ball estimate.

We are now back above $4 per gallon for the first time since May 2011,” “In Europe it is close to the $10 mark.”

Expect a record gas price this summer. The oil market has entered the perfect storm.

We will see a minimum of $6 per gallon gasoline in the United States this summer.”

Military conflict with Iran could throw the $6 price target far off the mark, as approximately 17 percent of the world’s oil supply could be shut out for, not a matter of weeks as the Pentagon has estimated, but months.

There is virtually no limit to the upside for oil prices. The oil price could easily double.

Oil trading above $200 per barrel could easily take gasoline to $8 in the U.S., as a panic to secure already-tight global supplies could shock the American people into another significant downturn in the U.S. economy.

This could turn into really tough times, because the economy will be struggling in that environment, we could see QE3 in the midst of already record high gasoline prices. Now that will be wildly inflationary.”

Nuclear Survival Possible?

I received this e-mail from frankj: ”With the recent building of nuclear devices by North Korea and Iran plus who else we don’t know about, I am thinking that the chances of a nuclear attack from an Armageddon scenario to some localized attack maybe some damn terrorists given a bomb by Iranians all would spell a catastrophe. Some of my prepper pals say that we can about just kiss our butts goodbye in a nuclear attack because the fall out would kill about everything. What do you think the chances are for us to see a nuclear attack?”

UrbanMan’s reply: Frank, you are doing well to think about all collapse possibilities. Perhaps protection and survival plans for a nuclear event would be the hardest to plan and prepare for without a lot of resources,…read money. I think location is a key to survival in a nuclear event. Away from high value targets,…..away from fall out patterns from predictive wind patterns,…and away from refugee routes – and, there will always be survivors.

Federal Emergency Management Agency (FEMA) recently published a study from the analysis of the specific implications of nuking the intersection of 16th and K streets NW. The key to the question, it seems, is the size of the bomb. Ten kilotons is considered “small” by nuclear weapon standards and would presumably leave survivors, according to the study. …Within a half-mile radius of the detonation, called the “severe damage zone,” buildings would be destroyed, radiation would be high and the survival rate would be low. The White House, Capitol and Mall would be destroyed. As little as three miles out, the impact would be less severe, including broken windows and minor injuries. But the real disaster would be nuclear fallout, the result of radioactive dust poisoning many in the District, Northern Virginia and Maryland.

I also found a government report on the potential of a nuclear attack on the National Capital Region. I am posting the easier to understand key points below. In any event, the first rule of survival is to understand the threat so you can develop a plan and counter measures.

Contamination vs. Exposure

Fallout contamination is salt- and sand-sized particles that contain unstable (radioactive) atoms that give off energy in the form of penetrating eadiation. Although contamination particles can be stopped by clothing and other barriers, the gamma radiation emitted by the unstable atoms penetrates through clothing, roofs, and walls and can deposit energy in living tissue. It is the exposure and absorption of this energy that is the primary concern and is measured as described below.

Roentgens, Rads, and Rems. Units of Radiation Exposure

• Roentgen (R): A unit of gamma or x-ray exposure in air. It is the primary standard of measurement used in the emergency-responder community in the US. 1,000 milliroentgen (mR) = 1 Roentgen (R).

• Roentgen per hour (R/h): A unit used to express gamma or x-ray exposure in air per unit of time (exposure rate) and the unit most commonly seen on radiation-detection equipment used by responders.

• rad: A unit expressing the absorbed dose of ionizing radiation. Absorbed dose is the energy deposited per unit mass of matter. The units of rad and gray are the units in two different systems for expressing absorbed dose. International unit conversion: 1 rad = 0.01 gray [Gy]; 1 Gy = 100 rad.)

• rem: A unit of absorbed dose that accounts for the relative biological effectiveness (RBE) of ionizing radiations in tissue (Also called equivalent dose). Not all radiation produces the same biological effect, even for the same amount of absorbed dose; rem relates the absorbed dose in human tissue to the effective biological damage of the radiation. International unit conversion: 1 rem = 0.01 Sieverts [Sv]; 1 Sv = 100 rem.)

For the purpose of this guidance, 1 R (exposure in air) = 1 rad (absorbed dose = 1 rem (whole-body dose). Whole-body doses are calculated for the middle of the body (1.5 m off the ground and 70% of the body-surface exposure), also referred to as the “midline deep dose.”

Estimated fatalities and symptoms associated with acute whole body absorbed doses:

150 initial rad dose - 5 percent chance of dying within 180 days from radiation exposure.

300 initial rad dose - 30-50 percent chance of dying within 180 days from radiation exposure.

600 initial rad dose - 95 percent chance of dying within 180 days from radiation exposure.

It will be initially difficult for those directly affected to assess the scale of devastation. On a clear day, a mushroom cloud might be visible from a distance, but the cloud is unlikely to keep a characteristic shape more than a few minutes and will be blown out of the area in one or more directions in the first few hours.

The most critical life-saving action for the public and responders is to seek adequate shelter for at least the first hour. Another urge to overcome is the desire to flee the area (or worse, run into fallout areas to reunite with family members), which can place people outdoors in the first few minutes and hours when fallout exposures are the greatest.

Those outside or in vehicles will have little protection from the penetrating radiation coming off fallout particles as they accumulate on roofs and the ground.

Sheltering is an early imperative for the public within the broken glass and blast damage area, which could extend for several miles in all directions from a blast. There is a chance that many parts of the area may not be affected by fallout; however, it will be virtually impossible to distinguish between radioactive and non-radioactive smoke, dust, and debris that will be generated by the event.

Potentially dangerous levels of fallout could begin falling within a few minutes. Those outdoors should seek shelter in the nearest solid structure. Provided the structure is not in danger of collapse or fire, those indoors should stay inside and move either below ground (e.g., into a basement or subterranean parking garage) or to the middle floors of a multi story concrete or brick building. Those individuals in structures threatened by collapse or fire, or those in light structures (e.g., single story buildings without basements) should consider moving to an adjacent solid structure or subway. Glass, displaced objects, and rubble in walkways and streets will make movement difficult.

Leaving the area should only be considered if the area becomes unsafe because of fire or other hazards, or if local officials state that it is safe to move. Fallout is driven by upper-atmospheric winds that can travel much faster than surface winds, often at more than 100 miles per hour. Outside the area of broken windows, people should have at least 10 minutes before fallout arrives for the larger multi-kiloton yields. If the detonation were to happen during daylight hours on a day without cloud cover, the fallout cloud might be visible at this distance, although accurately gauging direction could be difficult as the expanding cloud continues to climb and possibly move in more than one direction.

Providing that atmospheric conditions do not obscure visibility, dangerous levels of fallout would be easily visible as particles fall. People should proceed indoors immediately if sand, ash, or colored rain begins to fall in their area.

At 20 miles away, the observed delay between the flash of an explosion and “sonic boom” of the air blast would be more than 1.5 minutes. At this range, it is unlikely that fallout could cause radiation sickness, although outdoor exposure should still be avoided to reduce potential long-term cancer risk. The public at this distance should have some time, perhaps 20 minutes or more, to prepare.

The first priority should be to find adequate shelter. Individuals should identify the best shelter location in their present building, or if the building offers inadequate shelter, consider moving to better shelter if there is a large, solid multistory building nearby. After the shelter itself is secured, attention can be given to acquiring shelter supplies such as batteries, radio, food, water, medicine, bedding, and toiletries.

Although roads could be initially unobstructed at this range (around 20 miles), the possibility of moving the numerous people at risk before fallout arrives is highly unlikely, and those in traffic jams on the road would receive little protection from fallout. At long distances (more than 100 miles), the additional time before fallout arrival might tempt people to evacuate.

However, cloud spread and difficulties associated with predicting possible fallout locations will make avoiding the hazard difficult, even when driving. Although people at this distance will not experience life-threatening levels of fallout, using the extra time to seek the best-quality shelter in the area can help reduce exposures and the long-term risk of cancer.

Stay Indoors.  People should expect to remain sheltered for at least 12 to 24 hours. During that time, the intensity of fallout radiation will decrease greatly, allowing for less hazardous egress from dangerous fallout areas. Unless a given shelter location is considered unsafe due to fire or structural damage, the length of time individuals should remain sheltered depends on instructions from regional emergency management agencies. For those in good shelters, such as a large concrete, brick, or underground structure, optimal shelter times will likely be in terms of days.

In the absence of specific guidance from authorities and adequate supplies of food and water, or for those who are in smaller 2- to 3-story structures or shallow basements, evacuation should be considered after 12 hours. Upon leaving shelter, the best course is to follow routes that take advantage of sheltered passages (subways, underground connectors, or through building lobbies) that lead away from damage and heavy fallout areas. Once clear of potential fallout areas, evacuees should seek a change of clothes (including shoes) and wipe or wash exposed skin surfaces.

Fallout consists of large particles that can be easily brushed off clothing and shoes. The radiation energy given off by fallout particles decays rapidly with time. For this reason early gross decontamination (brushing for example) is better than delayed thorough decontamination (such as a shower). An event of this magnitude will vastly overwhelm available response resources.

Get Clean.  Radioactive fallout particles can spread quickly and remain on the body and clothes until removed. Those in potentially fallout contaminated areas should take off the outer layer of clothing (including shoes) and wipe or wash exposed skin and hair upon leaving a contaminated area.

• Routes make a difference for early evacuees. The exposure impact of route choice is more significant in the first few hours.

• Shelter quality determines decision time. The better the shelter, the longer the time before action is required. For poor shelters, actions should be taken in the first few hours; inadequate shelter, 4–12 hours; for adequate shelters, avoid action before 12 hours unless instructed otherwise.

• Adequate shelter, stay in place. Extended shelter-inplace inside an adequate shelter is almost always preferred over an uninformed evacuation in the first 12 hours. The gains from an informed evacuation before 12 hours are marginal, while the penalty for an uninformed evacuation can be significant.

• Poor shelter, move or evacuate. Early evacuation (at 1 hour) from lower-quality shelters in the Danger Zone can be life-saving.

– Best Strategy For Poor Shelter: Informed evacuation after approximately an hour. However, without an informed route use next strategy.

– Good Strategy for Poor Shelter: Move to a better shelter. Analysis indicates that this can result in a significant reduction of casualties even as early as 20 minutes after detonation.

– Marginal Strategy for Poor Shelter: Uninformed evacuation after approximately an hour and then leave the area, do not move toward the detonation site or directly downwind.

– Bad Strategy for Poor Shelter Extended Shelter in Place.

• In aggregate, the existing Washington , DC structures offered better than adequate protection. If all residents adopted a shelter-in-place strategy, it would reduce the number of potential acute radiation casualties by 98% (there would be an estimated 3,000 fallout casualties out of the 130,000 potential casualties of an unsheltered population).

• For Regional evacuation planning, errors in identifying the centerline and boundaries of high-dose-rate regions can result in poor evacuation routes that eliminate the benefits of evacuation.

• Preplanned evacuation routes may not be the best evacuation route as they may follow the contamination centerline.

• The current federal guidance of sheltering for 12-24 hours in in a shelter is adequate.