America Heading Towards a Collapse

From an article titled America Heading Towards a Collapse Worse Than 2008 AND Europe! from Peter Schiff by Jeff Macke on Breakout.

According to CEO and Chief Global Strategist of Euro Pacific Capital Peter Schiff, the U.S. economy is heading for an economic crash that will make 2008 look like a walk in the park. Stimulus programs can delay this day of reckoning, but only for so long and only at the expense of making the eventual meltdown much, much worse.

Schiff, who famously warned investors about the housing and financial crisis in his 2007 book Crash Proof, says the Fed's palliative efforts during the housing meltdown have made the next crisis inevitable. "We've got a much bigger collapse coming, and not just of the markets but of the economy," Schiff says in the attached clip (see video below).

"It's like what you're seeing in Europe right now, only worse." In this nightmare scenario detailed in The Real Crash: America's Coming Bankruptcy, the current economic pause is actually the beginning of a material slowdown or recession into year end.

At that point, the Federal Reserve will unleash a third round of Quantitative Easing — weakening the dollar without jump-starting the economy. As a result of dollar weakness, import prices rise, pressing the margins of corporate America.

Lower margins lead to heavy layoffs, sending millions of workers into unemployment during a time when they can least afford it. Banks fail, housing collapses, and taxes are raised in a futile effort to give the tapped-out government the capital to try yet more futile stimulus. "That's when it really is going to get interesting, because that's when we hit our real fiscal cliff, when we're going to have to slash — and I mean slash — government spending," says Schiff.

Those cuts will not be at all unlike the draconian austerity measures in Greece, with programs like Social Security and Medicare being dramatically cut or possibly disappearing entirely. The easiest way to put it, is that everything you don't think could possibly happen in America will come to be. "Alternatively, we can bail everybody out, pretend we can print our way out of a crisis, and, instead, we have runaway inflation, or hyper-inflation, which is going to be far worse than the collapse we would have if we did the right thing and just let everything implode," he offers.

So what should investors do to protect themselves? Schiff has three suggestions:

1. Get Out of Treasuries The U.S. dollar is going to get trashed in Schiff's scenario. Locking in a yield on a government 10-year bond of 1.5% is a paltry return in the first place. Should inflation tick up to even 5%, a level much lower than that seen in the early 1980s, bond owners would have 3.5% less buying power at the end of every year. If they go to sell the bond, they'll only find buyers at a much lower price than what they paid.

2. Own the Right Stocks With bonds and the dollar bearing the brunt of the pain, Schiff says stocks will outperform dramatically, provided you own the right ones. Exporters and multi-national corporations will benefit from a weak dollar. Better still would be to buy foreign stocks and avoid the U.S. entirely.

3. Buy Silver and Gold Schiff says the recent weakness in these precious metals is just a pause as we wait for the other shoe to drop. Most of those on Main Street haven't even taken positions yet in gold or silver. Once they start dropping bonds and looking for a place to hide, the price of these metals will soar. Are you preparing for a major U.S. market and economic meltdown?

Alt-Market Prepper's Site

Came across another preppers site previously unknown to me. I don't know, I may be the last Survivalist in the U.S. to know about it, but in case one or two of you don't, the title of the last article on the site, Americans Are Being Prepared For Full Spectrum Tyranny will take you there.

Alt-Market states that is an organization designed to help you (the prepper) find like-minded activists and preppers in your local area so that you can network and construct communities for mutual aid and defense. I think that local, careful recruitment to a prepared lifestyle provides much more OPSEC that on-line or otherwise non-local exposure on the internet.

It's not like you should be ashamed of being prepared for anyting from natural disasters to total economic collapse, but not every Tom, Dick and Jane needs to know about it.

Back to Alt-Market,....a lead in to the last article begins:

Totalitarian governments, like persistent forms of cancer, have latched onto the long history of man, falling and then reemerging from the deep recesses of our cultural biology to wreak havoc upon one unlucky generation to the next. The assumption by most is that these unfortunate empires are the product of bureaucracies gone awry; overtaken by the chaotic maddening hunger for wealth and power, and usually manipulated by the singular ambitions of a mesmerizing dictator. For those of us in the Liberty Movement who are actually educated on the less acknowledged details of history, oligarchy and globalized centralism is much less random than this, and a far more deliberate and devious process than the general unaware public is willing to consider.

Unfortunately, the final truth is very complex, even for us… ...

So, not an endorsement, just wanted readers to know about this site.

Rehearsals for Martial Law?

There is alot of talk across the internet and no doubt between people face to face about the possibility of a economic collapse and subsequent deployment of the military control or quell the projected anarchy resulting from tens ir not hundreds of millions of people rioting.

There was a story from last week about the Army, actually the Army Reserves, conducting training in residential streets and highways in St. Louis, Missouri using armored vehicles. This was certainly out of the ordinary as the Military has large facilities for treaining at urban environments and even paid role players to serve as the population.

So what scenarios could the military be training for? Is there a realism edge to be gained from working with live American citizens in real suburbs and urban areas? Or is this a rehearsal for some sort of collapse plan where the military conucts security and control operations?

This is troubling to me.  Unless we are invaded by a foreign power, the military has no role, other than a collective supporting role, in domestic issues.    

Glenn Beck has his own ideas on what the military strategy could be. Beck had a interview with retired Special Forces Lt. Gen Boykin and one of the unique considerations was Boykin saying it is worrisome "about these public trainings is the conditioning they have on the public to a military presence."

See the Interview below:

Debate on Survival Threat Groups

Since I posted the article on Racist Skinheads being a possible threat to survival in a infrastrucuture collapse, particularly a security decayed collapse environment, I have several comments posted and e-mail received debating, if in fact,  racists skinheads are anything to worry about.

My point in posting articles on street gangs, racists skinheads and other groups of fringe, radical or criminal elements as threats to our survival is simply that 1 - they are anti-socially and criminally prediposed, and 2 - are organized.

Organization is a big deal. Our survival in a post collapse world, from a inflationary/hyper- inflationary period to a full out infrastructure collapse, largely hinges on our ability to leverage teamwork. I applaud all of you lone survivors out there who plan and think you are going to "head for the hills" and live out of a Bug Out Bag, but the greatest majority of us need teams to survive.

That organization, from planning, to stockpiling, to providing security, to re-locating (Bugging Out) all accomplished by leveraging the resources and skills available from a group will make the difference.

Organization after the collapse will be much harder to do. Enter these organized threat groups. They are organized. Have chains of command and group rules. Have no reluctance to commit barbaric acts to continue their lifestyle. They probably have some useable common skills within their groups like mechanics, welding, electrical work, etc.  But their base skill is violence and lack of regard for human life.

During the precious first few days or weeks of a really giant collapse,...meaning a collapse where law enforcement and emergency forces are either over whelmed or otherwise ineffective,....these threat groups will be immmediately working to control more resources. Robberies, murders, home invasions, military armory thefts, etc., will skyrocket.

So again, yes all of these criminal groups, from common street gangs, to Outlaw Motorcycle Gangs to Racist Skinheads are threats to our survival especially those who choose to or be forced to "Bug In' in urban areas and adjacent suburban areas. The counter measures are knowing these threats, being prepared for security threats and having a survival team.