Posted on 04/30/2013 3:08:21 AM PDT by Kartographer
The Crisis Is Imminent: “When The Real Crash Comes It Will Be Worse Than the Great Depression”
“The United States is like the Titanic, and I’m here with the lifeboat trying to get people to leave the ship… I see a real financial crisis coming for the United States.”
Peter Schiff August 2006
In 2006, when he faced off with many well known Titans of investing and warned of an impending financial disaster and economic collapse, Peter Schiff was laughed at by his colleagues. He urged Americans to exit financial markets and take steps to protect themselves before the wealth held in their savings accounts, retirement investments and real estate was wiped out.
Few listened.
We know what happened next.
Now, those same financial experts who publicly vilified Schiff for his predictions six years ago are at it again. Many, including our politicians, central bankers and leading economists, have unequivocally stated that the worst is behind us, and that a global recovery is on the horizon.
Once again, Peter Schiff disagrees:
“I think we are heading for a worse economic crisis than we had in 2007,” Schiff said. “You’re going to have a collapse in the dollar…a huge spike in interest rates… and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it.”
Schiff says that, despite “phony” signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $16 trillion federal debt and the Fed’s never ending money printing.
…
According to Schiff, these numbers are unsustainable. And the Fed has no credible “exit strategy.”
Eventually interest rates will rise… and when they do, Schiff says, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone.
…
“The crisis is imminent,” Schiff said. ”I don’t think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems.”
“We’re broke, Schiff added. ”We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out.”
…
“The Fed knows that the U.S. economy is not recovering,” he noted. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.”
A noted economist, Schiff has been a fierce critic of the Fed and its policies for years. And his warnings have proven to be prophetic.
…
His recent warnings, however, have been even more alarming. Will they also prove to be true?
In his most recent book, “The Real Crash” How to Save Yourself and Your Country“, Schiff writes that when the “real crash” comes,” it will be worse than the Great Depression.
Unemployment will skyrocket, credit will dry up, and worse, the dollar will collapse completely, “wiping out all savings and sending consumer prices into the stratosphere.”
…
“All we can do now is prepare for the crash,” Schiff said. “If we brace ourselves properly and control the impact, we will survive it.”
Indeed.
We must understand that none of the fundamental problems leading up to the 2007/2008 financial crisis have been resolved.
If anything, it’s gotten worse.
Our politicians will not change, and therefore, will change nothing in Washington. Wall Street is as corrupt as ever. Our central bank continues to devalue our currency. There is no end in sight for these people. They will continue on this unsustainable path until we as a country finally hit the proverbial brick wall.
As Peter Schiff notes, the destruction to life as we know it in America and the world is imminent. It’s going to be severe.
So much so that the government has been simulating the collapse of our financial system, the collapse of our society and the potential for widespread violence.
A collapse happened in 2008, but THE collapse is still ahead.
Well here is hoping 2013 is a good year for The Tea Party, and that Washington hears the approaching voices of millions of tea party marchers.
You can lower your weapons now having said that.
btr
Invest in items that will have greater wealth once things go south... or in the ability to acquire those items at that time.
That will depend on location. States and counties determine property taxes. Age and income usually also qualify someone for Homestead Tax relief of some sort.
We are seeing a lot of people buying property where we live and many are buying with cash from IRAs. Taxes, of course, have gone up. I see ads for rental apartments in villages that are asking $700/month. But, evidently, people are paying that.
We know someone who turned a large IRA into a fortune in real estate with an impressive cash flow. I realize all the costs involved, but, from what I can see, there is still profit to be had.
The kicker comes when they try to liquidate for cash. Ask a family farmer with 500 acres just how much he would realize in a sale. And that doesn’t even factor in the estate taxes his heirs will pay.
Can you still teach? Worth more than one man and a rifle. Train 100 to shoot and be a big asset.
Where would you go and be able to be a free man?
That is exactly my take on libertarians. They stand for nothing so they fall for anything. They are like the tepid water church that the Lord speaks of in Revelations.
Not enough rural land to hide in.
Interest rates will eventually go up to reflect the risk of holding US dollars; other countries will eventually stop loaning us money.
It's possible that the US Government could sell off some of the Land/Resources that they claim in various states to help settle the debt.
A well - balanced portfolio should contain about 10% precious metals, and real estate under normal circumstances. Any necessity that you can get at today's prices rather than tomorrow’s inflated values makes sense no matter what happens.
I tend to think that people living in the bible belt outside the Metro Areas will be better off on their farms outside the many small towns.
There is no doubt that being debt free and living in a home with no mortgage gives one a better chance to survive. Just buy some hard assets such as gold or silver to allow yourself to pay your real estate taxes and some additional needs.
Unfortunately, many people can not get debt free in time to beat the collapse. So there is going to be a world of hurt, and life will have some big adjustments.
Will the cities burn worse than they did during the 60’s and 70’s. I don't know. Do everything you can to prepare for the worst and hope for the best. That's the way I have always lived, and it's no different now.
Just by the by...How much of Obamacare was actually written after the thing was passed? If no one read it before voting on it then they voted on a carte blanche shell into which anything at all could be stuffed after the fact. I think we will find out that there is a whole lot more in there than anybody imagined, except, of course, the leftists who designed the shell.
My 401 got hammered and has still not recovered fully. I also had some major medical bills for a child that cost me. I changed jobs recently and cashed in my 401 and paid off all debt. Sold the house and and am currently leasing so I am not tied down.
Over the last couple years I have bought ammo and some dry goods and basically sitting on what is left of the cash and buying some hard assets.
That is what I am afraid we will be seeing in the near future, the age of the libertarian. I do not like the libertarian concept, not hot enough to bring you warmth when its cold, not refreshingly cold when the temps are too high.
dammed in the middle of the road politicians getting wacked by oversized mirrors of big rigs all day long, too stupid to get in either lane.
Where would I go?
Being stuck in Alaska I have no more options, my back is against the wall so to speak, lands end, cannot realistically go to Canada even. cannot go to warmer Caribbean waters like Travis McGee, and there won’t be any battlefield in Alaska either, no repeat of Lexington or Concord.
My idea hiding spot would be out around Glenallen.
But, but FOX news just said all markers are showing that Bernake’s fast printing machine is holding us up and is working. That everyone is feeling good about the economy these days. Where’s my rose colored glasses?
Yes, and being the foreigner, especially the American foreigner, will put a target on your back in many places.
That is a very cogent point. Our small town grocery store will be out of business because I rarely see anyone pay with anything other than food stamps. I see people in line, yukking it up with their cell phone plastered to their ear and tattoos and body piercings galore, not a care in the world. They are buying more and better food than I can afford and they are driving nicer cars than I am. What is really bad is they usually have a wad of EBT cards from different states. When things get bad I will not shed a tear for them as they have left themselves helpless to provide for themselves. They think it is OK to live off the labor of others. When they go hungry it will be justice. I do feel sorry for their kids though.
Our Walmart will also be out of business, such is the number of people paying with EBT cards.
Oh thank you very much for that sweetly good thought. You are right though, Anyone could write in anything they wanted to after the fact and no one would know it. Great, something else to stress about.
The value of your wisdom and experience is unlimited.
I'll turn 59 in about 10 days. Last October, I was diagnosed with Type II diabetes. I firmly believe it was God's way of telling me to "WAKE UP!!!"
Changed my entire outlook on life. Six months later, I've shed about 30 lbs (another 15 to go), changed my eating regimen (Eat to Live by Joel Fuhrman), more conscientious about exercise. Was on metformin from diagnosis to first followup, removed after my H1b dropped from 11 to 4.6. It's a struggle, but I'm keeping the blood glucose readings in the 100-110 range without medication.
Why do I bring this up? My children and grandson need me to be there to provide them with my leadership, guidance, and wisdom during these tenuous times. It's no longer about how I live the rest of my life, it's how to equip them with the tools they'll need to survive, and thrive, now and in the future.
Remain of good cheer, and excel in your role as the patriarch of your family.
Obama and the Republicrat single party are bringing that description to the US, as well.
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