I know it is nearly Christmas and no one wants to hear bad news. News is only bad if you are not informed. The United States and truly most of the world is about to have a financial crisis that will make the crash of 2008 look like a boom time in our economy. The world we know is about to change radically. One look at the chart above and you can see how our economy looks errily like it did before the crash that lead to the Great Depression our parents and grandparents talk about. The news is not all bad if you are prepared. Read on to see what’s about to happen, why and what you can do.
The economy is worse than you have been lead to believe, much worse. The problem for us is much of the rest of the world is aware of information the citizens of the U.S. is unaware of. Unemployment according to the government is hovering just under 10%. The truth is the government is a master at spin. Spin is where they explain policy in such a way as to make you believe whatever they want you to believe. The truth is unemployment is closer to 20% and it is going up every month. Jobs creation is not keeping up with jobs that we are losing. In other words we are losing jobs faster than new jobs are being formed. For all the talk of taxing the rich and corporations, the truth is with Japan about to cut corporate taxes by 15%, the U.S. will take first place as having the highest corporate tax rates in the world and the government is threatening to increase them at a time when they should be lowering them to promote expansions and new jobs creation. Companies can not in this excessive tax environment create jobs.
The News You Don’t Know
If you know or don’t here is a fact of life. If you or anyone in the world buys oil they have to pay for it in U.S. dollars. It has been this way for 50 years. It has given the U.S. artificially low oil/gas prices. I know gas cost $2.79 or so and that seems high to us. You cannot find any country in the world expept Canada where fuel prices are not double what they are here in the U.S. This is because oil has to be paid for in U.S. dollars. That is about to end. Because of the fiscal policies of our federal government they/we owe more than we will ever be able to pay back. If our tax rate in this country today were 100% the federal government would still be running a deficit!! This fact has not gone unnoticed by the rest of the world. In the past couple of months there have been secret meetings between Japan, Russia, China, France and what we used to call OPEC. The reason for the meetings? To plan the transitions away from requiring oil to be paid for in U.S. dollars. The wheels are already turning and sometime in the next few months this transition will come about. It is not a question of if, it is a question of when. The result of this movement away from the dollar will be an immediate, and I mean that literally as in overnight doubling of the cost of energy in this country. Gas prices will double overnight. So will the cost of electricity. This economic condition is called hyperinflation. The increase will not take place over a few weeks or months, no the increase will occur suddenly and without notice. The result will be an immediate increase in cost of everything you buy including food. People will be trading gold and silver, and anything else of value for food.
What To Do?
This transition will last 6 months to a year. We will emerge stronger than we are today in terms of debt equity. The bad debt that should have been let expire in 2007 and 2008 will be flushed out of our economy. However you must make it through the 6 to 12 months transition. You must store enough food to feed yourself and your family for at least 6 months. Basic goods and services like electricity and water will be cut off or at best rationed. You must have a source of drinking water for this emergency and a way to keep your family warm. Prepare today before the stores are empty of food and water. Put your goods in a safe place. If you live in a big city, good luck. You need to find somewhere else to go when the stuff hits the fan. There will be riots in the streets when people have no water to drink or food to eat.
The Government Will Save US
They can’t. When George W. Bush took office the national debt was $900 billion dollars. Today it stands at $12 trillion. They are printing money to delay the inevitable. I do not believe this will be the end just as the great depression was not an end. It will be a period of a couple or maybe 3 years of great transition. We will make it through but you must have water, food, and warm shelter to survive the transition. When will this occur? The transition off the dollar for the purchase of oil will probably take place in 2011. This will cause an immediate doubling of gas prices. When you see this happen you will know it is too late to prepare. You have a few months and just a few. Take steps to protect yourself and your loved ones. If I am wrong you will have things stored you will use anyway. You will be no worse off and will have not spent any money you would not have anyway. I am not wrong. Take the necessary steps to protect your family. Buy this water system.
til next time,