Posted on 05/14/2011 9:23:12 AM PDT by OwenKellogg
The situation in the United States has deteriorated and will continue to do so unless drastic action on our federal, state and local government deficits is taken. We need to trace what happens during an economic collapse. In preparation for a collapse here is what you can do personally to avoid being swept away by the tidal wave of fear, anxiety and trepidation.
During the early stages of a nation collapsing economically, the debt of the nation swells almost uncontrollably. We, in the United States are already there.
From the burgeoning debt loads come the setting for collapse.
While the disaster can unfold in many ways, the course for the United States is already set in motion.
Inflation will increase. When inflation hits, citizens with limited financial resources become economic casualties first. These citizens are part of the beginnings of the downward spiral which ultimately leads to a depression.
In a misguided attempt to kick start the economy, our government will attempt another stimulus program which will fail. The parameters under which Fiscal Policy might work if you are so inclined to believe that it does have long been broken. Consequences of government actions are becoming unpredictable and are having unintended consequences.
The United States began the first phase of the stimulus program with the American Recovery and Reinvestment Act as well as the significant expansion of the unemployment compensation to pull us out of the recession. Both actions were the wrong actions at the wrong time.
When stimulus programs fail, our government will try to increase taxes or fees, often in deceptive ways such as fuel taxes, oil drilling taxes, user fees or increased regulatory burdens. This demand to increase taxes is to help support the citizens who were the first economic casualties of the recession as well as to pay for the deficit.
Next the bond rating agencies will downgrade our debt. At that point, our interest rates will increase and further prolong the recession. It is this downgrading of the debt and potential inability to sell our debt on the open markets that will be our undoing.
Our deficits will skyrocket because of the increased interest costs and creditor-forced reductions in spending will be enforced against us. The U. S. Congress will no longer establish our budget priorities. Our creditors will, as is done is Greece today.
The depression follows.
What then should the individual do?
Personally we have many options and they are extremely straightforward. The actions to be taken are exactly the same action that government needs to take but will not.
First, know where you are financially. Know your income and expenses and balance your own budget.
Second, you must start to build your funds if you are able. By establishing some cash reserves, you are reducing the risk of you becoming one of the first casualties of the collapse.
Third, you should consider paying off all short term credit card debt and minimize the use of credit cards unless you have the financial resources to pay for your spending.
Fourth, I would recommend refinancing your home with a 30 year long term mortgage considering how low rates look now. If your home is "underwater" with debt already that may not be possible.
Fifth, build up credit availability if you have the discipline not to use it. If you do not have that discipline, adding credit availability is one of the worst things you can do.
Sixth, make certain you are valuable to your employer. Stay current and productive. Many countries in Europe have 15% unemployment or more. Try not to become part of the "expendable" because you have let yourself stagnate.
Finally, help your family.
Surviving an economic collapse is possible. It will take 2 or more years for the U. S. to be in a full collapse. In interim get active politically, vote, and make government accountable, responsible and efficient to help prevent the disaster. I doubt Washington has gotten the message though! I hope you do. Your family is depending on it.
Frank Ryan, CPA specializes in corporate restructuring and lectures on ethics for the state CPA societies. Frank is a retired Colonel in the Marine Corps Reserve and served in Iraq and briefly in Afghanistan. He is on numerous boards of publicly traded and non-profit organizations.
“we will get a Pinochet style dictator”
We should be so lucky.
Pinochet was one of the good guys. If the insane hatred the left bears him isn’t enough to convince, try reading some accurate history in place of the leftist crap the lamestream misleadia shovel out.
God did not "need" Moses to raise his arm to part the Red Sea. And He did not "need" the Israelites to march around Jericho so that He could bring the walls down. God did not "need" the boy David or a slingshot to slay Goliath. In each case God moved His own people to act on faith and then He made it so.
Therefore I say unto you, What things soever ye desire, when ye pray, believe that ye receive [them], and ye shall have [them]. And when ye stand praying, forgive, if ye have ought against any: that your Father also which is in heaven may forgive you your trespasses. But if ye do not forgive, neither will your Father which is in heaven forgive your trespasses. – Mark 11:24-26
It is neat how God uses us as his vessels so his grace can flow through.
Amen! Funny how reading your post brought my stress level down.
Thank You Sergio for your testimony. You obviously know what it feels like to lean on the everlasting arms of Jesus. The stress level goes down!
To piggy back on Alamo-Girl’s comments, the same can be said of the works of Jesus. Every miracle Jesus did, required some effort from those receiving it. At the wedding, water had to brought to Jesus, the blind man had to go to the river to wash the mud from his eyes, the lepers had to go wash in the river and then go to the temple and proclaim the miracle, the family and friends of Lazarus had to roll away the stone before he could be brought back to life. So yes, I believe that God helps those who put forth a little effort.
I agree
This brings to mind poor backward looking Martha, whom Our Lord Jesus Christ loved very much BTW.
John 11:39 (New King James Version) Jesus said, “Take away the stone.” Martha, the sister of him who was dead, said to Him, “Lord, by this time there is a stench, for he has been dead four days.”
She used her common sense and said NO LORD HE STINKS!
Happens to me all to often. My common sense getting in the way of my faith. LOL! Thank you for sharing your interpretation of that verse with me. I’ve read it and yet never looked at it from your perspective. Very enlightening. You are just one of the many small blessings the Lord has put before me today, and I am grateful for it.
Outstanding points! Thank you both so very much, dear brothers in Christ!
Interesting discussion.
You asked:
So all we’ve gotta do is sit around and have faith and pray and manna will fall from the heavens for us?
I read this neat verse this morning and could not resist posting it in response to your question:
Revelation 2:17 (New International Version) Whoever has ears, let them hear what the Spirit says to the churches. To the one who is victorious, I will give some of the hidden manna. I will also give that person a white stone with a new name written on it, known only to the one who receives it.
Millions far more devout than I could ever hope to be have died of starvation over the millenia.
I’ll attempt to prepare for myself and as many others as possible in this life, and pray that God has mercy on my soul in the next.
I agree and what about martyrdom. This too may be possible soon.
I’ll attempt to prepare for myself and as many others as possible in this life, and pray that God has mercy on my soul in the next.
Good idea!
Do you think normalcy bias is a problem today?
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