International forecaster, Bob Chapman, tells it like it is, as usual. In We See Totally Surreal Markets, Chapman points out what those on the unemployment rolls, those with lost homes, and those close to personal economic collapse already know – that our economic system is in complete and utter shambles:
We see totally surreal markets, because the US government has been manipulating them under the fascist model for years As in 1984, good news is bad and bad news is good. Market manipulation is insanity and it guarantees a dreadful conclusion. There is no logic and the denizens of Wall Street go right along with the scam least they lose their jobs. Most all of the economic and financial news is bad and that is a fact. Markets cannot thrive on hope in the Fed or the administration or on QE2. The fundamentals simply are not there. Zero interest rates cannot last forever and neither can a never-ending, growing Fed balance sheet. The Fed’s policies have been losers. How can you have faith in a failed system driven by the greed and looting of the American public by Wall Street and banking, which owns the Fed? In fact we now see them praying for inflation so their system doesn’t collapse. They really believe they can propagandize the public into spending more again. That is going to be a very hard sell with real unemployment at 22-3/4% and real estate still collapsing.
…
At the heart of today’s financial problems is one of the greatest frauds ever pulled by American banking. This is the result of issuing fiat money and credit. This is the result of leaving the gold standard 39 years ago. The release of gold as an anchor ended any incentive to stop inflating. Government can spend as it pleases and the public gladly accepts inflation to have a better lifestyle, not understanding that debt piles up, taxes have to rise and in the end the bubble breaks as we have just seen in real estate. It has also ushered in fascist socialism that has allowed welfare, food stamps, and extended unemployment forever, Medicare, Medicaid and educational grants. The politicians, and those who control them, cannot and won’t stop the gravy train because if they do the system collapses in chaos. It is called a race to the bottom that began 39 years ago initiated by President Nixon, who said we are all Keynesians at heart. In other words, everyone wants a free lunch.
One thing we can guarantee is dollar devaluation, versus other currencies and gold and default. This is another lock Americans are going to have to deal with. Social Security and Medicare are already in default. Why do you think government wants to steal your retirement plans? How else can they keep them going with other government spending, such as wars of endless duration and creating employment in a staggering economy? The bank known as Washington has already been broken.
They are just barely hanging on right now. Though it may have been a painful and politically incorrect position to take, had the US government not engaged in massive, multi-trillion dollar stimulus, bailouts and backstops for the last two years we might have already had a major economic reset and the system might be closer to stabilization.
Unfortunately, our government and the Federal Reserve chose to continue the machinations that got us to the 2008 crisis – and they took it to a whole new level – with unprecedented spending and monetization of US debt.
Now, we’re locked in – that is, until the system eventually hits a brick wall and comes crashing down.
Right now, our policy makers are in a Catch 22. It’s checkmate, and the only thing that we can do is delay… to a point.
We need austerity measures, much more severe than those of France, Greece and the rest of Europe, but mass cuts in entitlement programs that tens of millions of Americans have come to depend on will lead to serious problems, not just for our economy, but on a social level as well. What happens if 40 million people were to lose their food stamps, or 20 million people lose their unemployment benefits? Many are already at the breaking point, if the government were to stop the gravy train, as Chapman puts it, the system would get very chaotic, very quickly. Thus, we just don’t see something like that happening anytime soon.
But make no mistake, the current entitlement system, driven mainly by US government borrowing, is unsustainable. So, whether we like it or not, the cut to entitlement programs is coming one way or the other.
Politicians are just not going to do it. For many, it would be political suicide.
So, the end result we foresee is, as Chapman points out, a high inflationary environment that will make it impossible for the average food stamp, unemployment or welfare recipient to purchase essential goods like food, energy and shelter.
We’re seeing it in Social Security already, albeit in limited form. The government has not re-adjusted social security payments higher because the CPI inflation index has not shown an increase over the last couple years. However, the CPI does not include calculations for food and energy because our government says those are highly volatile and should not be counted. Thus, social security recipients are now paying more for food than they were two years ago, but there has been no adjustment made in their benefits. They’ve essentially taken a mandated pay cut as the US dollar has lost value.
This is exactly what we will see in other entitlement programs. Now imagine for a minute what it will look like if/when inflation is running rampant at 10% – 15% per year, and entitlement adjustments only account for 1% to 3% increases.
A lot of people will go broke a whole lot faster.
And, we’re not talking about people not being able to buy iPads, new home decor, or Christmas presents for the kids. No, we’re talking about being able to put food on the table, paying the rent for shelter and putting gas in the car.
This can get very ugly. As Peter Schiff previously pointed out, a great number of Americans will be impoverished and, according to Gerald Celente, many may take to the streets in riots and protests circa 2011 and beyond.
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This is something the 20-40 y/o crowd doesn’t even think about, its not till your in your 50’s that your glad you have something to look forward to, I remember the same bs when I was 40 something about no ss being available.
Doesn’t it seem coincidental in a way that the time most boomer’s are retiring that this is the time that there’s NO inflation, and hence NO COLA?
While Uncle Ben at the fed keeps rates at 0 for an extended period which also effects retirees that actually saved any money to use as a supplement to SS.
I think all this crap was calculated out back when……….because it was known the “too big to fail” had already broke the country.
Â
“the end result we foresee is, as Chapman points out, a high inflationary environment that will make it impossible for the average food stamp, unemployment or welfare recipient to purchase essential goods like food, energy and shelter.”
Sir Alan Greenscam said it years ago: “We can absolutely guarantee payments……but not purchasing power”.
I look for 100 “dollar” oil and 1500 “dollar” gold by end of the year.
The evidence that the collapse of society is imminent is represented by the disconnection between wall street and main street. As the stock market climbs, main street experiences more job loss and higher inflation. You know we are getting close when you start to see this divergence. The collapse is coming soon. Hope you are prepared. Dont be fooled.
We are generally screwed. As is most of Europe. Then China & India.
Russia will squeak by because they never really had the boom and they are already poor.
Africa will starve because they rely on cheap food from the America’s.
Every one needs to learn to be as self sufficent as possible to survive end of story.
I grew up poor and eating squirrel for dinner so I am pre-condidtioned for it most Americans are not.
No one knows the future but some trends are obvious.
RED
Tony and others:  I agree and this is why voting is a farce and to be avoided.  Politician scum don’t care about anything except the NWO agenda and financial gain, power.  They’ll be the first group along with the patriots, police and FBI to be rounded up as a threat to the NWO agenda when their jobs will no longer be needed once the country is trashed for good.  G. Celente and Bob Chapman, etc. tell it like it is; America along with other countries  is  on a  freight train without brakes headed into the abyss.
laura,laura,laura……
Durangokid is going to be along any minute now to take you to task for suggesting voting is a farce…..even though he will tell you he ignored the process for most of his life while “getting his”, NOW is the time to take back our government with the ballot box.
No, don’t bother trying to convince him the whole system is rigged, and voting is merely allowed to placate the public into thinking they have some say in the process…..it won’t work. He is convinced the soap box and the ballot box are the key to “freedom”…..when, in fact, all that is left is the cartridge box.
I can answer the question “what happens to the people when they lose their food stamps and welfare”.
They won’t be able to afford drugs and alcohol and will have to actually get a job and support themselves. Maybe it will finally dawn on them that having six kids was a bad idea. Maybe they will find a life beyond welfare and getting high all the time. Maybe once they are working they will resent the government taking so much of their money for taxes to support lazy bums who won’t work.
TnAndy:  Yes, the Durango kid will no doubt show up; he’s probably sleeping, or at a restaurant or picking up groceries, clothes shopping, etc.  Our time zones vary, and I don’t get on the computer until after my morning work and errands are done.  The  ones that understand the NWO  agree the ballot box is a NWO  suckers game, and civil war will soon take place.  I’m baffled at those who claim to be educated on NWO agenda and still play the suckers game (or is it strictly a social outlet or to be seen on local tv news).
Laura: Yep, it is all an NWO suckers game, however, this NWO suckers game has served me well. I’ve traded my sovereignty for comfort and profit. What disgusts so many of us is that most people just don’t understand. They complain about the condition and the hoops (laws) you have to jump through but they never realize why. The fact is, America, the Constitutional Republic America, not the United States of America, Inc that you think is your government, the real government considers me sovereign. But, I have contracted with USA, Inc (What I like to call “FedCo”) to be a citizen. At which point this all blows up, I shall renounce my United States of America, Inc citizenship (subject) status, and be sovereign once again.
Most people are so ignorant of this status that they are, essentially, imprisoned by the system. As they say, “To see the farm is to leave the farm.” I’ve already left the job, I just haven’t told them to stop the checks yet.
TPTB have only one choice, Â and that is to devalue the dollar, by inflating the wha-zoo out of it.
Entitlements, and fixed income dependent , and  all those on pensions, or expecting to live on a pension,  are going to be in a world of hurt.
This is why I buy gold/silver, Â and the price in FRNs , really does not matter, Â in the bigger scheme of it all.
“Russia will squeak by because they never really had the boom and they are already poor.”
Russia has several advantages.
1) Russia is not really levereaged. Instead of national debt the Russian government has “stabilization fund”, a few hundred billion dollars they saved for a rainy day.
2) Many Russian exports are essential. Even if you can’t afford to upgrade to the latest iPhone, you will still need to eat and drive to work. Although they suffered a crop failure this year, Russia has been a major wheat exporter over the past few years. Russia is also the biggest oil exporter in the world. They also sell weapons and steel.
3) Russians are used to economic instability, so when a crisis hits, they don’t panic.
The long-term trend working against Russia is their demographic situation. Just like Wester Europe, they don’t have enough young people.
The goobermint has many standing on a one legged step stool in a freshly painted red corner wondering how to put on a straight jacket. There’s a noose hanging from the ceiling.
you uninformed scaredecats need to take a few quaaludes and relax. you’re getting all wound up over nothing. there are a few alarmists out there who are trying to sell subscriptions to doomsday monetary advice newsletters and who want to get fees for appearing on tv or giving speeches to frighten uneducated peolpe and profit from it.
there is absolutely no evidence that anything significant is wrong with the american economy. any little ripples here and there is due to chinese screwing with our money and some terrorists screwing around with our military that is trying to bring freedom to their crappy countries.
we must save ten dollar bills for any minor ripple that may affect our markets and we must have faith, hope and charity and incorporate these principles in our prayers. god bless america and god bless the u. s. federal reserve ten dollar bill.
Comments…..I’m not a believer in the NWO because every government and individual pursues thier best interests. Consequently a concerted world-wide effort is doubtful.
That being said I agree that the entitlement issue is one of the major problems affecting our economy. Can it be fixed? You betcha. Will it be fixed? Maybe but only after we have plunged into the realm of a has-been world power. The bill will come due for our drunken spending spree.
Could it be fixed before this happens? Sure, but it would be such a draconian fix that most people would rebel against. From the concept of best interests, we are faced with the harsh reality that any politician that votes away the entitlement programs, social and military/industrial complex, will find themselves with no safe place to retreat to after being thrown out of Congress. It is never in a politicians best interest to go to the guillotine.
Now could it be done incrementally? Yes indeedy. The populace wouldn’t rebel against individual programs being cut one at a time. Start with the ones most onerous to the taxpayers and slowly add additional cuts. Basically it is just the reverse of what got us into this entitlement mess. Call it the live frog in the pan of warming water trick.
Even Social Security could be phased out. Pay off the oldest first. Just pay the contributions plus compounded prime interest.
The question is could we hold out long enough to accomplish the mission? It’s an unknown. Our creditors might hang with us if we make meaningful strides  in reducing the national debt.
In order for this to work, we would have to gut most of the regulatory agencies. We need to make it easy to start small businesses engaged in manufacturing and resource extraction. A major problem will be cutting imports while preserving and increasing our exports. This mandates wage and price controls along with rationing. We have to make our money less valuable without inflating the supply.
A lot of this could be accomplished by bring all our troops home and seperating them. This would result in another million folks seeking jobs and halt the massive expenditures overseas. We solve the military/industrial complex entitlement program and increase the labor supply. More labor available equals lower wages. BUT, this won’t work in our current regulatory environment.
Retirement for everyone is a new and invented phenomenon. A century ago we worked until we died or we actively engaged in entrepeneurship. Social programs were private enterprises.
Inflation is the problem. Reduce it by elimination of entitlements is the only recourse. Do it willingly or it will happen on its own and in a violent manner. The problem with violent resetting is its non-selectiveness. We have brain-drain by high velocity lead poisoning. We need thinker-doers more than anything else to get through this. These folks are the most vulnerable. They will be targetted because they have and the have-nots will see them as easy marks.
Alas, I see doom and gloom on the horizon. Our survival depends on nurturing a local network of support. This means people with skills to add to the local economy. Think concepts like grow, make, rent tools and fix. We will have to dispense justice at the local level. Ugly but mandatory. We can never allow chaos to run its course. Humans adapt to thier environment. This is why we are so successful. We’re just lazy and refuse to adapt without being  forced to.
TnAndy and laura: Thanks for the invitation to your party! Always glad to make my appearance when I can, but that is usually towards the end of the day, after “business hours”. Gotta keep the wheels of commerce rolling, ya know?
I don’t disagee with your opinions as to the NWO and/ or the Trilateral Axis of Evil aka as Big Business, Big Banksters, and Big Brother. I just disagree about your desire to “drop out and hunker down”. I don’t see that as a productive approach. That is why we are where we are at now.
Too many Americans have been as you are, and I admit, I was one of them. But now I see the error of my ways and I am trying to connect the dots for you and help you find the “light”! lol Is there anything worse than someone who has been “born again”? 🙂
I just believe that we must engage the enemy on all fronts, and that includes the political front. Why give them a free hand? Gear up, and in thirty days, it will be time to get in the face of the Retards so they do not push global fascim on US anymore than they already have.
I own the means of production, and the best kind of production at that, so I profit regardless of who is in power, or how much money is printed. In fact, the more money that the FED prints, the richer I get! My balance sheet has more than tripled in the last ten years! Swear to Almighty God! So if anyone should be pleased with the PTB it is me. But I am not.Â
Vote! My friends, Vote!
@no stocks for me…Wouldn’t you have rather had kept all your money and even just put it in a bank at around 10% interest (yes, thats average for a normal healthy economy) With compound interest you would have a very nice little nest egg for retirement…or are you going to give your money to the government to manage it for you because you are too dumb, lazy and/or irresponsible to save for yourself???   We know the answer that we as a society have decided on, hows that working out for us!!
When a society no longer believes in self reliance and personal responsibility, they enter a death spiral.
Comments….. @ lostinmissouri
 I agree guy. Gold and silver at any price is about the only way to get through what’s coming. Yes, and food and supplies, and all the other associated preps.
  Everything I’m reading from many sources say the price of gold and silver will skyrocket soon. I agree with that belief. get you some soon folks, any way you can, time is getting real short. The dollar will be worthless in a short time. there can be no other end to the story than that.
     And mushroom–as it seems to be that you disagree with all the comments on this web site for the most part, why do you waste your time?? You’re like a bad case of hemmoroids that keep coming back as they defy treatment. If your comments made a little sense, backed up with facts, they would at least be a little believeable. But they are actually funny that any person over the age of 16 would say such drivel. I hope your’re getting paid well to troll these postings.
@greaseman…I’m well paid, and will consider posting even more drivel today! Remember, eat all the shit I post…it’s good for you and don’t forget to save lots of $10 bills.
@greaseman…I’m paid very well, thanks for asking. I’ll post more shit today so all of you can feed at your pleasure.
i can’t stay here long this morning. let me just say that as the economy gets worse watch out for major impacts during the weekends (especially a long holiday weekend) and after a major election.
the small bump in our economy caused by chinese fiduciary spys and gangsters and the taliban mafia will straighten out as soon as the u. s. chamber of commerce begins actively to make anonymous multimillion dollar  donations to the proper political campaigns. these donations will enable select hand-picked highly intelligent hard working politicians like palin, rand, o’donnell and angle to win elections and begin to guide america on the proper path to freedom and prosperity.
the u. s. chamber of commerce has supported large and intelligent american businesses for decades and knows where to obtain funds and then use these funds for maximum benefit for the american people. several important things must be done soon like the elimination of social security, medicare and medicaid. in addition, our major banks such as goldman-sachs, j. p. morgan and the bank of america  must be supported with more help from no interest loans from the treasury because many people lied on loan application forms and bought homes and cars they couldn’t afford.
in the meantime have faith, hope and charity in your hearts and say prayers for our chamber of commerce and our wonderful god-fearing military who are at bases throughout the world in the front line of america’s battles for prosperity worldwide freedom.
PALIN/O’DONNELL 2012
Gee mushroom…you left out save all the $10 bills you can, while we are waiting for the god of government to save us all from the idiots who populate the halls of CONgress and White House.
I am convinced beyond a shadow of doubt that you are a paid shill in the service of those you so ridiculously defend with the idiocy you suggest.
There are others here that would like everyone to believe that you really don’t mean what you say, but if you don’t mean this shit then why do you waste your time here posting such drivel?
The good news is you too will be gone soon…
Get’m now if you don’t have’m…beans, bullets and band aids – forget palin/o’donnell and rest of the liars and thieves, unless you too live in the dark and consume shit…then vote away.
I’m not worried, Obama will just dig into his stash to provide for us!!
Baaa Baaa Baaaaa!!!!
Maybe now people will realize why the feds have established the 3rd infantry to do patrolling in US cities.
Comments….Mushroom, the World Finance system is a Ponzi scheme that is near the end of its scam. US Dollar is one hiccup away from being worthless and the US Govt. is one step from insolvency.  The international fiat money system is at the end of its life. Are the $10 bills to be used to line your casket, because you didn’t prepare?Â
Mike
@ Mushroom: Please use your head for other than a hatrack.
@mushroom… May you be skewered from eye socket to asshole and then placed on a spit so that your flesh can be roasted by a searing gale of farts which issues forth from the haunches of Satan. Then, I hope you are hollowed out and used as a prophalactic for thorn cocked demons that squirt battery acid from their engorged penises. Other than that, have a nice day.
Before we can reduce government spending, we need to bring our manufcturing  jobs back from Communist China.
Hahaha! Muschroom! You make my day. I mean, really, some of these people think you are serious. If you are “serious” it would be tacked onto the front of “mentally ill”.Â
I think what mushroom is doing it trying to rattle some of your brains into concert with the truth by stating the total fallacious line of FedCo, your corporate masters. At one point in my life (when I was very young and stupied… and voted for Jimmy Carter) I would have almost believe the lies. Keep it up mushroom! Whether you know it or not and whether you get flamed or not, you are doing much service to the survivalists. …and I salute you!
To the King of Sarcasm! *clink*!
🙂
-NR
Comments…..@mattg
Hey mattg, what are you really trying to say?
      My hats off to you. That was the most creative slam I have read on anyone in a while.
How am I going to sit in my nice leather chair and watch football on Sundays after TSHTF?  Can’t we take a day off?
Rule # 1. Get out of the cities. Rule #2. Get out of the cities. Rule #3. Get out of the damn cities!!
…..
you bloggers here simply don’t understand what’s really going on.  it’s easy to see you haven’t had the education necessary to grasp basic realities. one of you even voted for helicopter jimmy the peanut farmer. what we really need to lead us are superintellectuals like ronald reagan. he and mrs. reagan had the wisdom to bring  expert advisors into the white house to help us with our countries problems. some of these advisors were even from the cfr and others even stayed late into the early mornings giving aid and comfort to our country.                                                       Â
years ago i graduated from an ivy league school of business and then i got another scholarship and studied economics and public policy. in addition, i understand all the principles of social cannibalism as outlined by my favorite professor – dr. milton friedman. that’s why the scope and depth of my economics understanding and subsequent applications of advanced economic principles is far superior to yours. i realize most of you couldn’t get scholarships but at least you could try hard to appreciate the ultimate reality of the facts that i write here. i will try to keep my complex analyses and practical solutions as simple as possible for all of you at shtf…
in the meantime seriously consider voting for PALIN/McCONNELL Â 2012
….
Mushoom:Â
Just curious which Ivy elite school did you graduate from?
Why do you still refuse to explain how you arrived at $10 bill, why not $20 or $5 or $50? Â
Why should we believe you when many smart experts predicted other countries will not be accepting the dollar.Â
If the dollar is only used in the US, it becomes useless to all of us and in the eyes of the world, because of this we won’t be able to buy anything.
I think future survival will depend upon those who are prepared. Buy some land, and have a safe place to keepsupplies. Have a couple of guard dogs and a nice barb wire fence around your property. Grow as many fruits and vegetables as possible. Stock some fish too if you have the means to do so. As far as investments, silver probably has the best upside potential, with copper and palladium 2nd. Gold will also be solid. Try to diversify out of the dollar, and buy the Singapore dollar, the Noregian krone, the Australian dollar, and even the Swiss franc. Those who have done their research will relate to the validity of my advice in a global crisis. Good luck to you if you think everything will just magically work out in a positive manner, like the moron who said to hold on to 10 dollar bills.
Greg: Silver does have a strong upside, and maybe on a percentage basis, better than gold; but gold is the metal of the rich, the wealthy, and the worried. It will double or triple from here.
As someone who owns a palladium mine, and copper assets, I can tell you that these metals are not number two. They are primarily industrial metals. With a world in recession demand for these metals will drop. Gold will continue to rise because it is the prefered metal for investors, central banksters, and global consumers. Silver will rise in sympathy to gold and because it is affordable.
Lithium is one of the top three metals now. See  SHTF Metals, Lithium Page for info.
As I mentioned, gold will be “solid.” In a global ecession, silver will outpace gold, in my Opinion, as the poor man’s gold. Only the rich will continue to buy gold, and the less affluent will be priced out of the market. But silver will become the poor man’s gold, and as you mentioned, also have the benefit of industrial appeal, albeit limited in scope in a global recession. Also silver now has an unbalanced silver to gold correlation historically.  That silver-gold ratio is now approx. 60 – 1. If silver moves incrementally, as it has historically during a gold bull run, the ratio could eventually change to 50-1, 40-1, and so on with dramatic upside gains.As for copper and palladium, the Current trend is a testament to their appeal and price strength. My mistake to suggest that I was long on these two indefinately.  However in a global crisis, I will strictly maintain positions in gold and silver, as you aptly pointed out as to the lessened demand of copper and palladium.
Thanks for your comment as well as the excellent tip concerning SHTF lithium.
Greg; Right, I can’t remember the historical ratio between gold and silver off the top of my head. I think it has been 40 to 1. But it has been out of wack for so long, I don’t know if it is because of manipulation by the big banks, or because there is a “new normal”. Guess we will have to wait and see on that.
Either way a little of both for everyone, or a lot of both if you can afford it, is a good thing.
@greaseman… I thought it was pretty clever too. That’s why I ripped it off from a comment post over on Zero Hedge. Mushroom cracks me up to be honest, but he still deserves it.
Â
I’m in the camp that hopes the coming economic, governmental and societal collapse will somehow turn out to be a blessing… at least to those who manage to survive it. I think once all hell breaks loose, weather it involves a world war, civil war, natural disaster or whatever – the engineers and controllers will find themselves in way over their heads, outnumbered and so many unforeseen consequences will shatter their stupid endgame. Humanity needs a reset – I just hope it isn’t too self-destructive and we don’t f__k the environment up in the process. The people best prepared to survive it are obviously pretty well informed, so I guess they (we) have as good a shot as anyone to pick up the pieces and rebuild a proper society. We’ll see. The trick will be denying the scum elites any authority or power when they scurry out of their billion dollar bunkers.
Comments…..@ mushroom
I’m not sure you went to any school of economics, or studied under Dr. milton friedman. I think the only professor you studied under was Uncle Miltie..
mattg: I can’t remember what Page I saw it on now, but SHTF America recommends that all preppers prep a bag of kwik-crete to seal these bastards in when the SHTF.
Good advice I think.
The first “entitlements” we need to stop is the “corrupt” politicians running this country. Doesn’t anyone find it odd, that many politicians enter DC penniless and leave millionaires? I say throw them ALL out, republicans and democrats. The deception is so great in this country, that not even “we, the people” can discern it. Let’s wake up and take our country back.   The true test to all will be how you survive the coming meltdown.Â