Tuesday, August 18, 2015

One Minute to Midnight. Are You Ready?





So we are one minute to Midnight on the economic doomsday clock now are we? The Western Central banks have strengthened the dollar as far as they can to the point it is causing real economic pain around the world especially in emerging markets.

23 Nations around the world are crashing

Are you ready? Will this actually be the end game economic crash this time around?

Hard to say I guess. Many experts are now claiming the central banks have nothing left to throw at the economic issues. Even if the crashes and collapse we see going on around the world continues how much and deeply will it effect the good ol' USofA?

If foreign investors can no longer afford to buy US debt or dollar denominated securities then the writing might be on the wall. When that in fact happens the US government must either live within it's means or continue to have the FED buy the debt almost exclusively. Some say that has already happened but to date dollars have not started rushing back into the US economy so we have managed to stay afloat at the expense of the world economy so far.

In the end this creates a sort of muddled mess however. Crashes across the world cause commodities to fall while inside the US continued money printing and internal debt buying tries to cause inflation. The local and state answer to the problem is increased taxation which also tends to cause deflation as the private money is taken and not spent on other purchases. Which in turn causes more layoffs and business closings and back to less tax revenue. A vicious cycle to say the least.

Overall this will mean the balance beam we been walking will more than likely become a tight rope now. We have to somehow stay afloat while producing what we need while also being able to pay what the government demands.

As I have mentioned over and over the build up to the economic meltdown is the most dangerous time for true sustainers and preppers alike. We have to survive in two worlds at once. Kinda like producing with Peter so we can afford to pay Paul type of thing. The more we can do for ourselves that never sees any government accounting the better off we are but we must also remain on those ledgers or the very same government will come calling.

Difficult times are coming but once we can make it passed the ravenous government beast it will become much easier.

Keep Prepping Everyone!!!!!!


15 comments:

  1. Everyone should just keep keep trading their worthless fiat money for real things of value. Do what you can to develop a useful skill to barter. And pray.

    Nothing really new here except things are a little more worse than this time last year. We go through this drill every year about this time. Just don't get complacent.

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    1. why does Matt always have to be right....that is my question. good advice about the praying Matt. even better advice before the praying. thanks buddy!

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    2. I'm always right. Even Preppy will tell you that (even thought he hates to admit it)

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    3. I thought I was the one who was always right :)

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    4. You both are always right, lol......

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    5. Sandy, I'll settle for that ;) we just won't tell him when he's wrong

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  2. We met with the financial adviser at the bank yesterday and he actually advised to take a few months worth of cash out for a worst case event. We were trying to do something with our savings that are trapped under a big tax penalty so we pulled all of that back out of any risk other than the value of the dollar itself. The guy looked kind of frazzled and said he was waking up at night thinking about what is going on.
    I still have people laughing at me and telling me that the economy is coming back and things are fine.

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    1. I've been thinking about leaving the bank I'm in. Is this one a local or national? Your county or mine, right above you?

      I'm actually shocked that a banker would admit the things he told you.

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    2. One of the big ones down town. This guy looked kind of worried, you could see it. I guess one can quietly tell people to get in the life boats or just watch from your own life boat and say they should have known better. I have had no luck trying to tell anyone, frustrating but at least I tried.

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    3. I think that is what really got me interested in this prediction. Even the big wig mainstream guys seem to be convinced something is going to go down soon.

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  3. One thing to remember is that as other countries crash, those people with money left will try to move it to a safer location...and that is likely the US dollar and the US stock market. We will eventually go but it could take some time before the money inflows stop and then reverse. And by all means keep some cash at hand..$20's are better than larger denominations.

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    1. Indy - That is true or has been to date but from the article I took away that this time around it is too expensive for foreign investors to keep anything in dollars. That could be a real problem.

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  4. Excellent analysis, Preppy. And good advice from Matt & the others, above.

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  5. PP,

    Right on PP, you always have great advice.

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