Even if the Government comes to some sort of arrangement in any case increasing the Debt limit, the Country is screwed. The Fed, acting separate from the government will print more money.....this would be QE 3 – more paper fiat currency to flood the market and deflating the value of the dollar.
If the Government cuts spending,..imagine that concept,....the cuts will have to come at least partially from entitlements which would place more people in the have not column.
Just look at Gold and Silver: Gold has recently hit record highs, probably staying above $ 1,580 an ounce for the short term before going up,....and up. Two years ago, the silver/gold ratio was above 83, with gold selling at $804.60 and silver at $9.64. Last month it was 43.04!
The bailout of Greece will reduce the availability of European Nations to buy U.S. Debt. We'll soon see a distressed and broke Federal Government trying to bail out a couple of our failed States,...California and Illinois comes to mind as both drive up taxes in a pathetic attempt to generate revenue only to drive an average of 5 businesses a week out of their respective state.
Experts in the Economy are saying that housing prices are going to decline another 20%!! And that we are, for the very least, in for a 4 to 5 year recession which are going to make times very tough for at least 100 million Americans.
Have you wondered why the last International Monetary Fund (I.M.F.) head, Dominique Strauss-Kahn, was removed and attacked so vicious and swiftly? Wondering why Timothy Geithner is about to leave his position shortly?
In the past week, Cisco, Lockheed Martin and Borders announced a combined 23,000 in job cuts. Meanwhile, state and local governments have cut 142,000 jobs this year. Whats going to happen when the Federal Government cannot pay for the massive amount of employees they have hired? Another 30,000 to 60,000 people on the street at once!
The common folk know the deal and it is bad. Here are just a few quotes I have from people who have been contacting me:
“The SHTF is coming. I'm have been taking money out of my 401K and buying something real and useful with it, rather than leave it there and have to load it in a wheel-barrow to buy a loaf of bread after the dollar collapses. Government causes inflation and uses it to reduce their debt in terms of buying power."
"Bernanke's agenda is that the dollar MUST be destroyed. Everything he does is toward that end."
"There has never been in a situation in my lifetime where a guy (President Obama) increases the debt by 40%, and GDP growth is on the way down, use of Food Stamps are up exponentially, millions more are unemployed -- and to accomplish this we spent $4 trillion of money we had to borrow. Way past time to prepare. Should have did it by now. The time now is to seek cover."
”I quit my job; took what I could out my 401K plan and moved the family to my in-laws farm. I am currently waiting it out. I’d like nothing more than to be here a year from now and have to move back to the city to get a job, but if not, then so be it, we’re ready.”
”Thanks for your site. Good interesting look at survival needs against the coming collapse. I took all of my savings out of the bank, bought a little silver, a bunch of food, sold my luxury sedan (eliminating a payment and bought a used truck). Now learning to grow my food. The question is not if the Shit Will Hit The Fan, it is when.”
Well, looks to me like many people thinking we are not going to have a successful conclusion to our country’s economic woes.
