Urban Survival Planning - More Economic Indicators of a Coming Collapse

Two recent economic indicators reached out of the newspaper and banged me on the head this week, indicating not only are we not on an economic recovery as President Obama promised, but we are heading for rougher times and a lot of people know it,...maybe not intellectually, but at least they know something is wrong.

Not only from the newspaper, but from a friend of mine who went to the gun show this weekend. He said he has not seen as large as crowd in memory. He told me he saw a 60 year old woman buy a folding stock Mini-14, then bought eight 30 round magazines at another table. My friend said he later saw her empty handed except for a heavy sack which he thought she put the Mini-14 rifle in the car and was buying ammunition. He had many examples of this. Some of the vendors told him they could not keep ammunition on hand.

There is a just published financial report on Americans wanting to be closer to their cash. They are cashing out Certificates of Deposits (CDs) and putting the money in bank checking and savings accounts so they can have it closer and more ready at hand.

People have pulled a reported $145.3 Billion dollars out of mutual funds in the first 8 months this year. That jives with my first and second hand information on many government employees borrowing money from their Thrift Saving Plans (TSP). I know maybe a dozen people who did that just to purchase Survival items,..solar power generators, canned dehydrated foods and Gold - Silver bullion.

A VP at a financial analysis company states "At times of uncertainty, there is a natural human tendency to stay liquid and have money easily accessible."

Certificates of Deposit have declined by $200 Billion in the first six months of this year. Savings accounts have increased by $171 Billion, but we have not seen the difference invested into consumer spending that is tracked by government and public organizations. My bet is that it is going into the untracked markets such as firearms, ammunition, survival and camping gear, and related Survival material such as power supplies, batteries, and solar panels....maybe even land purchases.

To make the economic indicators much worse is the record increase in the U.S. Poverty rate, expect to move to the 15% level when the final report is finished.

This is what the news states: "2009 figures are likely to show a significant rate increase to the range of 14.7 percent to 15 percent. Largest increase on record and highest it has been since pre-1973 levels which spawned massive Government welfare program development and spending."

"Should those estimates hold true, some 45 million people in this country, or more than 1 in 7, were poor last year. It would be the highest single-year increase since the government began calculating poverty figures in 1959. The previous high was in 1980 when the rate jumped 1.3 percentage points to 13 percent during the energy crisis."

This is in keeping with our assertion that a very probably spark of either a gradual collapse or a dynamic collapse will be when the gap between the "haves" and "have nots" (also know as the people below the poverty level) get so big as they government cannot tax us enough nor divert spending enough to provide the basics for the people below the poverty line. This is a recipe for full blown anarchy and violence.

Get ready for it.