14 Pieces of Bad Economic News

Every day, I enjoy reading bits and pieces of other survivalist blogs that are being written across the country. Much as a baker may enjoy perusing other blogs about cakes, or a diver may enjoy other scuba blogs, I like to keep myself informed about what my survivalist brothers and sisters are doing and thinking. Above all, I find it reassuring to know that there are plenty of other people out there like me (and hopefully you, too) who understand the immediate need for living in a state of preparedness and self-sufficiency.

Here’s something that I find discouraging, though. Every day I come across comments from other blog readers who are painfully ignorant of the need to prep, and to maintain a personal supply of reliable food and medicine. Some comments indicate that preppers are “paranoid” and even that we are “delusional” and even “silly.”

Well, I have bad news for all of these people who let their own fear drive them to ignorance: You are under constant threat of economic collapse. And for the sake of yourself and for your family, I pray for you to quit hiding behind a false sense of security and safety, and face the facts. For a bit of a reality check, I am including 14 pieces of bad economic news from a recent article in the Economic Collapse Blog. Please read them and take them seriously. Consider this your call to action. There is no way this will end well.

14 Pieces of Bad Economic News, as of November 11, 2010:

(1 ) More Americans are on food stamps now than ever. More than 42 million Americans were on food stamps during the month of August.  That is a new all-time record, and that number is 17 percent higher than it was one year earlier.  In fact, the number of Americans on food stamps is up more than 58 percent since August 2007.

(2) The unemployment rate recently set a new, all-time record. The United States has not had such an extended bout of mass unemployment since the Great Depression.  The “official” unemployment rate in the United States has been at 9 and 1/2 percent or above for 14 consecutive months.

(3) Homelessness is rampant in major cities. More than 1000 people now live in the 200 miles of flood tunnels that exist under the city of Las Vegas.  Once one of the most prosperous cities in the United States, Las Vegas is now little more than a shiny, glittering corpse that it rapidly decaying.

(4) Children are now most vulnerable to poverty.  According to one recent study, approximately 21 percent of all children in the United States are currently living below the poverty line. Millions of children do not know where their next meal will come from. (Their parents do not maintain crisis gardens!)

(5) The cost of staples is climbing.  In the past 60 days alone, the price of cotton is up 54 percent, the price of corn is up 29 percent, the price of soybeans is up 22 percent, the price of orange juice is up 17 percent, and the price of sugar is up 51 percent.

(6) The government will not be able to keep up with the number of people who need assistance. One out of every six Americans is now enrolled in at least one anti-poverty program run by the federal government.

(7) Bankruptcy claims are rising. The American Bankruptcy Institute says that there will be about 1.6 million consumer bankruptcies in 2010.  This would represent a huge increase over 2009.

(8) Jobs are still scarce.  According to one recent survey, 28 percent of all U.S. households have at least one member that is looking for a full-time job.

(9)  The U.S. states are basically flat broke. For example, it is being reported that the 15 largest U.S. states spent on average over 220% of their tax receipts over the past decade.  Clearly this is not even close to sustainable.

(10) The U.S. government is completely and totally broke.  After analyzing Congressional Budget Office data, Boston University economics professor Laurence J. Kotlikoff concluded that the U.S. government is facing a “fiscal gap” of $202 trillion dollars. TRILLION.

(11) The government wants to cheat, debase, and inflate to gain financial footing. In an attempt to keep our financial system solvent, the U.S. Federal Reserve has announced plans to create $600 billion out of thin air and pump it into the U.S. economy.  The Feds are calling this “quantitative easing.”

(12) Other countries are becoming resentful towards the U.S. Many of the major trading partners of the United States are expressing deep resentment regarding the new quantitative easing policy announced by the federal government.  Ambrose Evans-Pritchard recently described the growing animosity this way:

Li Deshui from Beijing’s Economic Commission said a string of Asian states share China’s “deep bitterness” over dollar debasement, and are examining ways of teaming up to insulate themselves from the tsunami of US liquidity.

(13) Bankruptcy is not a maybe. For many analysts, the economic collapse of the United States comes down to cold, hard math.  For example, the former CEO of the tenth largest bank in the United States says that it is a “mathematical certainty” that the U.S. government will eventually go bankrupt.

#14 The plan to stabilize the global monetary system will not end well. According to a recent article on CNBC, the financial world is already preparing for QE3:

“They’re already talking about QE3,” said Dave Rovelli, managing director of US equity trading for Canaccord Adams. “Eventually we’re going to be printing so much money the dollar is going to really go down and everybody’s going to try to deflate their currency against us. I just don’t know how this could end well.”  


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