The warnings from the top echelons of our governments and financial system are everywhere.
In January, Treasury Secretary Tim Geithner confirmed that we’re literally on the brink of collapse:
Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses and could lead to the loss of millions of American jobs. Even a very short-term or limited default would have catastrophic economic consequences that would last for decades.
This past weekend, the BRIC nations that include China, Russia and other developing countries took significant, but under-reported, steps to lowering the influence of the US dollar in international trade:
China and four other leading high-growth economies have taken landmark steps toward lowering the importance of the dollar in international financial transactions — part of a seminal shift in the move towards a multicurrency reserve and trading system.
…
“Leaders call for peace and prosperity” was the front-page headline in the China Daily. Stirring stiff. Even more striking was the prominent story the previous day that China’s President Hu Jintao and visiting Brazilian President Dilma Rousseff had agreed to quicken trade procedures for “gelatin, corn, tobacco leaf, bovine embryos and semen.” At least we know there’s no holding back the Chinese rhetorical flourishes on these issues.
Today, Standard & Poors lowered the credit rating outlook for the United States:
But the ratings agency lowered its outlook for America’s long-term credit rating to “negative” from “stable,” based on the uncertain political debate around the nation’s fiscal problems.
The outlook means that there is a one-in-three likelihood that it could lower the long-term rating on the United States within two years, S&P said.
Everything from the economic woes on Main Street up to the actions of the elites in recent months, suggests that the system is at a breaking point.
Oil is rising to 2008 levels – and for those who remember, it was these large increases in gas prices that triggered the financial collapse. Now, we are worse off. We’ve thrown everything we have at the system from a monetary and government standpoint, yet nothing has changed fundamentally. What’s worse, is that gas prices are about to surpass 2008 levels, and food prices are going through the roof, putting further pressure on American and global consumers.
Europe is and has been a disaster for several years. It’s been playing out in slow motion, and as we forecast time and again, Portugal is about to fall apart financially. Next will be Spain and likely Italy. One misstep here and everything could buckle.
The Japanese nuclear crisis, the effects of which will not be known for several more months, remains in full swing and could potentially come to a head in July and trigger the next global meltdown.
In yet another warning from a top official, which echoes previous, similar alarms raised by leaders of China, Russia and our own Congress, President of the World Bank Robert Zoellick highlights how fragile the entire global economy has become:
Zoellick estimated 44 million people have fallen into poverty due to rising food prices in the past year, and a 10 percent increase in the food price index would send 10 million more people into poverty. The United Nations FAO Food Price index jumped 25 percent last year, the second-steepest increase since at least 1991, and surged to a record in February.
Food price inflation is “the biggest threat today to the world’s poor,” Zoellick said at a press conference following meetings of the World Bank and the International Monetary Fund. “We are one shock away from a full-blown crisis.”
…
Economic growth “is leveling off after a post-crisis recovery,” Zoellick said. “The question now is whether it’s strong enough to reduce unemployment, particularly in developed countries. Inflation is up in developing countries, and this could lead to overheating or asset price bubbles.”
Economic growth is only leveling off because of policies undertaken by the US government, the Federal Reserve, the EU, and other elite financial and government institutions. The whole point was to “stabilize” prices, markets and the economy.
But nothing of the sort has been accomplished. Every week we have an official government statement from somewhere in the world about how critical of a problem we are facing, on a number of different levels.
If we’re only one shock away from a full blown crisis, then we can’t help but suggest that we can expect complete economic pandemonium very soon. The underlying problems, which the government and financial elites have tried to cover up from some time, will come to a head – in fact, they are coming to a head right before our eyes in real-time.
It’s not an issue of if. It’s only an issue of what will trigger it and when the trigger gets pulled.
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TODAY STARTS THE BEGINNING (4-18-11) OF THE FINANCIAL CRISIS 2.0
One Second After – highlights some great and then again some not so great, human behavior when a major crisis happens.
I guess all we need now is for some genius in the Pentagon to sell an EMP to attack to Obumma. An EMP would pretty much clear our debt.
Comments…..Holy smokes batman,The joker is on the loose. POW!!! KA BAM!!! TAKE ANOTHER HIT !!! RIGHT TO THE KISSER…Stayed tuned to this channel for tomorrows episode,when Dr doomsday sets out to destroy Gothum city for the last and final time, what will our caped crusaders do to stop him? We will be right back after some important message’s from our sponsor Goldman sachs,and the IMF.and goldline.
Yesterday, I received my 1 year dehydrated food cache from Mountain House. I tried some and it is kinda tasty. At the edge of the economic abyss and we let them do it. When Timmy Geitner announces that the U.S. has not considered nor would the U.S. ever devalue the dollar; he is lying, expect the worst.
That EMP thing; you have something there.Comments…..
Inflation finds resistance at the consumer level until it doesn’t. Meanwhile, margin compression hits corporate reports with a vengeance. Q2 results will be obfuscated with accounting gimmicks, but the Q3 results will be disastrous. Markets correct by at least 40% as a p/e of 12 or under makes more sense. PMs (physical, not paper) initially follow the herd down, but bounce back to new highs as the sheeple realize that the end game is upon us. The paper never recovers.
Governments nationalize all mines within their borders and either place a 100% (or more) tax on weapons/ammo or nationalize these industries as well.
Just a thought; tales from the 30s in Germany give a good indication of how fascist regimes work.
Italy has much gold but……….. ( ). Fill in your own response.
Transfer paper assest into hard assets and precious metals before mid-June/July. The Japanese problems have yet to be factored in.
MIke F.
Comments…. .
The easiest way to know what’s going to happen, is to pay attention to history. All this crap has happened before, and will happen again. Flash–news item—This isn’t going to turn out well!!!! Simply put–we are all screwed. Some more than others. if you don’t have any preps by now–you’re really screwed. If you have preps and some precious metals in your possession, you might make out ok.
I can hear the fat lady singing in the hallway. get ready, the rough ride is about to start.
I believed we were one shock away 3 years ago. And for nearly 3 years, all I have heard is how gold/silver was in a bubble and going to collapse…..LOL!
Keep exchanging paper for gold/silver for as long as paper works….we don’t have much longer….imho also.
Update: my wife has been buying toilet paper by the case for nearly 3 years now. We will definitely be the TP Kings, in the coming Barter Econ. And wiping your ass won’t be cheap! lol
“one crisis away” is only a propaganda ploy to prepare the sheeple mentally for the fema “security” camps after the new madrid fault blows – thank goodness our gov’ment will be there to pick up the pieces with their brand new supply of MRE’s…first 14 million sheeple to the camps gets free grub!
Congratulations to all you preppers. Food inflation is up 8% in the last 30 days. You just made 8% on your money in 30 days!
Keep looking for the bargains. Batten down the hatches. It’s gonna be a bumpy ride! We are closer and closer each day.
The sheeple still have no idea. They won’t even get it until their WIC card doesn’t work. (though I believe that these moochers will be the last to be cut off)
What a day! Dow/SP down, gold/silver up. USDX up, ratings down, real inflation up, gov reported inflation flat. Pt up a little, Pd down. Radio active car anyone? Food, up. U have that starboard GA Mom.
Great comments….
“Bread and Circuses” will go on till the well goes completely dry.So will the foreign wars the same way.
GFG
And here’s what this means to you. “They” are one shock away from not letting a full blown crisis go to waste. An avalanche of shit of epic proportions is headed our way. When governments resort to threats, intimidation and fear-mongering in order to save their own asses then the gig is indeed up, plan accordingly.
I sure wish more Americans were ready for what’s to come. Those not are going to leach off of those who are – and that will be one ugly scenerio played out in every town, big and small. Parents will do ANYTHING to feed their kids. ANYTHING!!
Comments…..Huh! I was looking around to tell toto that I didn’t think we were in Kansas anymore, when it dawned on me that we ate Toto last week.
…and this is why we (I) prep. 7 Gs folks. It covers it all. I’ve got all seven and I’m ready to go. Not looking forward to it but its the only thing that will straighten the Union out.
We’ll be in sad shape for a while, but, we have many armed people. There is little threat from the outside. The worst threat we have is from the unproductive, entitlement, helpless, coco-puff class. Its an internal threat and if they don’t get their coco-puffs all hell breaks loose. The other enemy of the USA is the US Federal Government. Wishing to keep their power and destroy the independent, productive class that actually had to work for what they got and are much less controllable. They threaten the centralization of power by excercising their independence of thought and operations.
Government continues to try to box in the options of the independent and the semi independent middle class. They try to take their guns, their jobs, their ability to own property and to grow food. They want them fully dependent on the system with no where to turn.
The whole scheme is buckling. I have to laugh as they desperately attempt to stay afloat. Like a rat with the correct weight stone tied to its tail, frantically trying stay afloat to take another breath. 2008, it got tired, resting, it sank. One last ditch frantic attempt to stay afloat and then its all the way to the bottom!
People say I am to glib about it. Really? After seeing all the greed, corruption and taking the beating like all the other semi-independent, hard working, productive middle class, I am laughing my ASS OFF and enjoying every panicked paw stroke to stay afloat. I know its mean. Vengence is mine, sayeth the Lord, however, I can sure enjoy it too! They’re trying to destroy it like they want it destroyed but its not behaving like they thought it would because Keynsians don’t understand REAL economics. They’re screwed. I’m very entertained.
Somebody pass me the popcorn!
Lemme do the math: one crisis away at the rate of a crisis every 3 weeks= Mothers Day= the mother of all collapses! I’m going to pick up another 1000 rounds on my way back from the garden center. Who does Standard & Poor work for anyway? Maybe the new standard IS poor… chance favors the Prepared ! Thanks again Marc for the forum.
Anyone ever thought about stocking up on cocoa puffs? Great barter item, huh? You could put it out front for people to “find”. The golden hoard would think they got away with your stuff – it was all they were after anyway.
The US should have been downgraded before Ireland/Greece honestly, if I recall right we were in a worse GDP/Debt ratio at the time, God knows now.
All rating agencies are in the US (ones that “matter” anyways) so guess who will never get downgraded? You get paid in USDs you going to rock that boat too hard? I think not. Other countries haves been saying this for years S&P just finally gave a shot across the bow. 2-3 years until an actual downgrade? Whatever. Might as well be 20 years. The government will cut 2% or something meaningless and carry on as normally and pass “quiet” bills that refund the cut programs anyways. Smoke and mirrors. Get your preps ready and don’t take any far off vacations anytime soon. Gotta say it felt great to be back in my house after being overseas. Guns, gold, silver, lots of food, etc. Ahhh security.
Best of luck.
P.s. NetRanger I got some popcorn in #10 cans 😉
Joy, great news, 45% of Americans don’t pay into the Federal government coffers. That most likely means they get money back… We’re broke. Sorry, no more writeoffs period. Flat tax time. Singapore is rolling in money at a 12% corporate tax rate and 20% personal (think its 20%, read it weeks ago). This would get some business back into the US for sure along with some jobs.
http://money.cnn.com/2011/04/14/pf/taxes/who_pays_income_taxes/index.htm
Don’t forget we need to create over 150,000 jobs a month just to keep up with new workers (kids either from High School or Uni/College) entering the work force. We’re not even meeting this requirement people. Recovery my buttocks.
“Pick a Problem: “We Are One Shock Away From a Full-blown Crisis”
Let’s hope so. It’s long over due. In fact, it’s becoming painfully agonizing watching the obese get fatter. How about 6 or 7 Shocks at once followed by a dozen more every other day. Hey, it may take at couple of dozen just to get the attention of the masses.
What ever it takes.
Now wouldn’t that be called “Shock Therapy”.
Comments…..i am past the point where i care whether the “masses” pay attention or “get it”…if they haven’t understood what has been happening around them the last three years then they deserve every thing that may happen to them in these times. i got popcorn too…and some canned butter.
Those that gloat, will be in the same boat.
I keep hearing about debt ceilings and default, but it sounds like the debt ceiling is just the limit on the national credit card. Maxing out would not mean automatic default. I am told that the gubbmint has sufficient cash flow to meet interest payments for the rest of the year. Debt could be rolled over as it matures.
Reaching the ceiling would mean that the gubbmint could not borrow any more money for bribes to keep themselves in power. Cut off these giveaway payments and see how much support they all have. The people getting these freebies will immediately turn on anyone who has the audacity to cut them off.
Timmy and co. just want to keep their hand in the cookie jar.
One positive effect of default would that it would curtail borrowing. Any IMF “rescue” should be rejected. These loans only rescue the banksters.
I think a good argument can be made for a Soviet-style breakup.
Terry: Debt ceilings and default talk has been around for decades for those old enough to remember. Same, same, no change. Someday, yes, but not today, and not this year. The retards will pretend to throw a tantrum, get some political capital out of it, and capitulate. After all, they are all on the same team and the same page.
No profit in collapse or debt ceilings. And its no way to wage war. But keep prepping “someday” will be the right day.
I suspect the only reason the United States still has a AAA rating might be the fact that the U.S. dollar is still the reserve currency for much of the world. Otherwise, I suspect it would have lost this 6-12 months ago. This downgrade by Standard & Poor’s should serve as a warning … not only to investors, but to Americans.
What will happen if the dollar does collapse? American’s will fret over the worthlessness of their 401k’s while the country issues new, worthless script. How many of us, including ME, wish we had invested in gold and silver 6 months ago … 1 year ago, … 3 years ago!!!
Comments…..the biggest problem isnt the debt ceiling ….the problem is other countries arent buying our debt and or getting rid of it. so we have to buy our own which devalues the dollar. the end of the dollar as the worlds reserve currency is the problem….imagine oil in euros….it take $1.45 to buy one euro. so gas would be roughly $7 to $8 at the pump….not including the inflatation that would soon follow. Rome fell and so will the U.S.
blah blah blah……everything will be ok……you people are caught up in pessimisim
This brings to mind Mr. Dick Cheyney and his comment that deficits don’t matter. If you remember, Timmy was laughed off the stage in China. Jim Sinclair says the time has passed to correct our mistakes.
According to the Wall Street Journal, the ECB is in a pickle. Interest rates have to go up to combat inflation in food and energy while Ben Bernanke claims inflation is up only .2% here on this side of the Atlantic. The money printing will continue world wide and at some point, larger economies will collapse. You and I know that this was through design. A lot of noise in the media, though, to throw you off of the real reasons why we are here.
While getting the car repaired the other day, I spoke with several customers on the economy and none had a course of action. One even asked if precious metals were worth the trouble. I just said no.
I think most Americans know that there is trouble ahead but have rationalized the problems away. A little planning goes a long way. I try to forget the noise and just take care of the business at hand.
Best Wishes….
Why did you say no?
GA Girl-When the mayhem starts I’m baiting all my traps with cocoapuffs! 🙂
I heard something about Saudi Arabia cutting their oil production because the world is oversupplied. I am sure there is no price gouging involved.
When the OPEC crowd stop accepting dollars for oil, they will lose US support for staying in power. All the “royal families” will be put out by their own people (possibly minus their heads). We will be paying more for oil, but paying other arabs. I hope they like their new business partners, who will probably be Chinese (at least in the short term). We all know how culturally sensitive the Chinese are.
The poster who said the republicrats and demicans are in bed together is right. They will huff and puff and oppose each other until they cut another deal to raise the debt ceiling. This will keep happening until outside forces act to stop it.
I do not waste time trying to “enlighten” anyone. If they are still asleep, it is because have hit the snooze bar.
I wonder why kaynine even reads this site. This sounds like someone who wants to believe that since things have not yet turned to completely to crap, that it means that everything will be fine (but really knows better).
I do not hope for hard times, but own a raincoat anyway. It has been obvious for years that the american party would end with a huge hangover. Many of the people who call us kooks really know better but choose not to admit it, and there is not nearly as many of them as there was a few years ago.
Mind Blown…I sure wish more Americans were ready for what’s to come. Those not are going to leach off of those who are – and that will be one ugly scenerio played out in every town, big and small. Parents will do ANYTHING to feed their kids. ANYTHING!!
Yes…ANYTHING. Including “taking the mark”. It will all boil down to this one decision.
We will feed you….all you have to do is accept this mark so we know who you are…….
I never thought things could change as fast as it has in the last 5 years or so. Hell, the last 2 years!!!
I agree with GAmom that the parasite class will be the last to get cut off. The gubmint will squeeze the rest of us as hard as possible to keep the leeches supplied with coacoapuffs because many in gubmint think this economic downturn is like all the ones in the past and that they will need votes from these swine.
The parasites are the segment of our society who moan the loudest at the mere hint of a reduction in their freebies. Many among us may not want to hear it, but SS (including SSI disability, which seems to quite often accept the most obviously specious claims) and Medicare are two of the largest freebie programs around. Few of us pay anywhere near as much into these programs as we eventually take out. Look at your pay stub and see how much is taken for FICA and Medicare then think about the monthly benefit paid out by these programs and the length of participation.
We already have socialized medicine. We call it Medicare.
I also do not envision a Mad Max situation (but do not discount the possibility), but anticipate much more crime in the short term as the leeches freak out about the end of their free ride. I have relatives who are among the leeches and have witnessed their sense of entitlement to whatever they want and the contempt they have for the people who carry them.
Cocoa puffs sounds like a verb to me.
Too much shit; not enough fans!
Is quantitative easing working this morning or what?
Dow
12,241.78
+40.19
+0.33%
30 seconds after the opening bell we are GREEN.
Bullshit!
Net Ranger,
7Gs? God, grub, gold, glock, garden… (gear, goats???) Want to help me with the other two? Thanks!
Maddie’s Mom……… Gickens..
Comments…..
gas???
Comments…..
Tina @
April 19th, 2011 at 6:06 am
And millions just don’t get it—the entire schedule and plan by the elites has been to decrease food supply therefore inhibiting dependence.
“Come, get on the train; we have a nice warm bath and meal waiting for you.”
Comments…..Good morning Vietnam!!! I watched a movie the other day, that i had not seen in more than thirty five years I remember my mom loved that movie,and made me watch it with her. I’t was boring,except for the parts with horses and guns,at the time i really did not understand what was going on.Today,I have a whole different perception of that movie.It was about the end of a royal family and the country as they knew it,and the birth of an ideology that it still with us today.There are a lot of comparisons to be made ,so here are just a few, as i see them.the red army, (dems) and the white army (capitalists) or (red states and blue states) Blue states being loyal to the throne and the old way of life,A new leader (BHO)who will help the unhappy pheasants (cocoapuffers) with a new form of Goverment that is better for the workers, because it takes from the wealthy,and gives it to them.Making everyone equal,Sound familiar? join the party and the revolution or be sent to siberia ,(FEMA CAMP) The year 1917/18 the country Russia, THIS TIME IT’S THE WORLD,the Bolsheviks (NWO).The movie Dr Zhivago,1965 . History, does give us a look into the future,if you can,read the review of the bolsheviks revolution @sparknotes.com you will be very happy you did.
2you will be amazed at all the similiaritys
I expect no grand announcement by China et al that the USD is no longer the world’s reserve currency. The USD will probably be marginalized and become an also-ran long before most Umurikans realize anything has happened. Many will not even notice a declining standard of living until they try to spend a USD and most people do not want it (even in the USA).
I don’t expect any downgrade by Shit&Piss et al until at least after it is meaningless. After all they were in on the MBS scam and operate in collusion with the the gubmint.
+1 Cyber!
FED Interest rates will exceed 7% by XMAS. Paper money and credit will become tight. DJIA will be at 4,000. Half the people won’t be able to afford much of anything, regardless of the price. The cost of everything will fall. Stock on stores will go unsold or sold at a loss, store chains will fold. Gold and silver fall 80%, no buyers, all sellers. Unemployment will skyrocket on no demand of products due to no money or credit. THEN THE FUN BEGINS MID-2012 FOR THOSE WITH CASH.
Comments. @CCc, Your diapers soggy cause its full of shit. Like you.
CB and JJ,
Thanks! Of course…gas and gickens 😉 Check. What is wrong with me? And why I said glock instead of just “guns” I don’t know…Is it still Monday???
I have to agree 100% . Right now we have so much going on that any one thing could just send us further into the depression.
http://www.dailyjobcuts.com
Unfortunately the numbers don’t lie.
We Have Oil, War, Nuclear, Financial Problems
Comments…..
I’m thinking about getting a goobermint job. I hear that McDonalds is hiring today and their medical is subsidized & at the end of the shift you can eat all that you can shovel down. Is this true? I want it my way. Two page resume or just wing it? The fish is square right?
What will the USDX be when this happens Captin Krunch? I have a printing press in the basement & a money tree out back.
Hey! I got it! Raise interest rates. Yah, that’s the ticket. Except for one tincy wincy problem…paying off the interest on our bonds. Think that money is tight now? Raising interest rates with our debt and lack of production would crash the economy within a time span of 2 months. I’m being generous. Nope, we’re screwed.
One shock away? We continue to be quite lucky one of the worlds dictators we think we should dispel (like the guy in Libya or Syria) does not decide to send his special forces here to create that one “shock.” Quite lucky in deed.
I hear they’ve even started prepping in San Fransisco. Getting all their Gs together. Let’s see, it’s: Gerbils, gloves, grease, glue, ginsu knife, g-string,….
what am I forgetting here?….
POdPatriot- Toto was delicious, especially with that BBQ sauce you made. Now if Lassie ever comes home we’ll have a feast!
Gucci
So….are you guy’s saying tit’s not a good idea to take a 2 week vacation in September??????
IT’s….not (tit’s)….LOL
Not sure where you are going but I’m paying attention what you are saying. You can’t shock me. I’m seeing double, September will be different this year.
Slim,
You get a job at McDonald’s and I see a name change in your future 😉
Comments, ha-ha-ha..
Quoting from the book of Mykel Hawke, Captain, U.S. Special Forces, on Murphy’s Law of Combat:
“No plan ever survives first contact with the enemy”
“The enemy attacks on two occasions: when you are ready and when you are not”
“No inspection-ready unit ever passed in combat, and no combat-ready unit ever passed an inspection”
“The best-trained, most-equipped survivalist will be the first one killed in the crash”
“The person least likely to survive will be the one left to face surviving”
“Everything you plan and pack will be lost in the event that causes the survival scenario”
Finally, for those that have all G’s squared away and are the “sitting ducks”:
Quote: “When the battle is going your way, you are in an ambush or trap”
Here’s another one that is concerning the gear and equipment:
“If its not on you, you DON’T HAVE IT”
Good luck and God Bless to all!
As many of you know and has posted about Mountain House Foods being sold out and or have a very long waiting list. Well I was surfing Ebay and found some MH #10 cans selling for more the double normal retail prices. Some are selling for tripe the retail cost.
The fact that people are buying this stuff at these crazy prices….shows me just how despirate people are getting. Some cans are selling for 60-70 dollars a can…..just crazy. That money can go so much further if you plan right.
Thanks to most of you, I have become very diversified in my preps. I have dedicated a whole room in my house to it. I call this “my walk-in pantry”
I invite other discussion on this matter
Good ol’ beans and rice. Haven’t seen much price run-up but I haven’t bouht much lately because I’m out of room to store them! I’m guessing the folks who eat frozen meals don’t realize that there is food growing under the dirt in my backyard.
Comments…..