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.