An Economic Earthquake Is Rumbling

Personal Liberty Digest ^ | 10 August 2015 | Bob Livingston

[Lorianne]

While the people sleep, an economic earthquake rumbles underneath. The day that they begin to feel the quake draws near.

History will record that in this decade more people will lose more money (forget about the trillions of dollars already lost) than at any time in our history, including during the Great Depression.

At the same time, a very small group has made and will make huge sums of money.

During the Y2K scare (a real hoax) many people stored food. Then, after Y2K, many people wanted to dump their cache; and some did.

We advised readers at the time to store food simply because of the crisis world we live in, but to store those foods that you could rotate and consume. Stored food is a hedge against inflation. It’s a hedge against natural disaster. It’s a hedge against economic collapse.

It was our advice before, and it has been our advice since. This advice is still valid. People who don’t have some stored food don’t realize how dependent they are on the system and government.

Of course, the system was designed and created to make the people dependent on government. That makes them easier to control.

More working-age people than ever before are not working. More young workers than ever before are still living with their parents because they are either out of work or working at low-paying jobs. More people than ever before are on the government dole. Welfare pays more than most jobs. Retirement funds have been cashed out and spent on living expenses. [..] The default rate of companies with the lowest credit rating is at its highest level since 2013.

The auto loan debt bubble is at $900 billion, fueled by easy credit and long-term loans (more than 60 months on even used cars) that put the car buyer upside down as he drives off the lot and keeps him there. U.S. mortgage holders are carrying the most non-mortgage debt they’ve had in more than 10 years; 81% of that is automobile debt. Student loan debt held by mortgage holders is the highest it’s ever been, with the average balance owed at nearly $35,000. Almost 5.7 million homeowners remain underwater on their mortgages.

[excerpted]

[Lorianne]

Where does debt go?

[PetroniusMaximus]

Another “buy my book” site.

[Paladin2]

To make derivatives.

[ProudFossil]

The fourth sentence proves this is a fraud. Don't buy it.

I was one of those in the banking industry as a systems analyst/programmer in 1999. The Y2K was not a hoax. At least four of the banks I dealt with would have completely crashed if we did not modify EVERY FRIGGING computer program they had running which performed any kine of computation base upon date so it could handle the change from 99 to 00. This was occurring because all the programs had a date format of mmddyy and not mmddyyyy. It would be a complete disaster. As it was we did not meet the deadline on all the programs and had to fix some of the minor ones dealing with reports and not with computations after 01012000.

The biggest problem was in the computation of interest and penalty charges. The old program (depending upon the bank) would either compute the interest all the loans and savings on 01012000 on either 99 years or would think there was an error in the data and simply crash.

This man is not to be trusted, even less than any politician or lawyer.

[Signalman]

If the economy (and the markets) have a major, severe crash between now and the election, it seems to me this will really help Trump for obvious reasons.

[roadcat]

Where does debt go?

Seems to me that a lot of people who are in debt want an economic collapse. They think it will rinse away their problems and they can recover. Same with our government; they kick the can down the road but probably aren't concerned about a coming economic collapse. Fools, all of them. When it happens, it will be hard and long. People in debt are not going to easily recover; they'll be suffering in poverty for years. The government is running out of other peoples' money and handouts will be constrained.

Debt will transform into suffering for most people. People need to get off their butts and create some assets in order to ride out this coming storm.

[dragnet2]

People need to get off their butts and create some assets

I guess pouring in tens of millions illegally was not the type of assets America needed or wanted. Of course the illegals coming from poverty who are used to taking what they want, won't be affected much.

[SkyPilot]

The government is also eyeballing your IRA, 401(k) and pension even now. Stealing it from you and replacing it with government paper would knock a big hole in the so-called “government debt” and prop up the system for a while longer.

Many people talk a big game, and say "If the Government did that, it would be Civil War II!!!"

No it wouldn't. People would be indredibly depressed and angry, but there would be very little they could do about it. And forget about the courts making things right. Plus, the "Takers", the UN, and the Vatican would rejoice and sanction the theft. Mark my words.

And if you made any trouble, they will deny you Medicaid, Social Security, any form of private or public pension, and anything else they can think of.

[SkyPilot]

Seems to me that a lot of people who are in debt want an economic collapse. They think it will rinse away their problems and they can recover. Same with our government; they kick the can down the road but probably aren't concerned about a coming economic collapse. Fools, all of them. When it happens, it will be hard and long.

I agree.

The one segment that even the most sober analysts cannot answer with complete clarity is: So, what will the banks, law enforcement, and governments do when tens upon tens of millions cannot pay their mortgage or car payments?

Do they forcibly evict tens of millions with a mortgage?

I am not sure what they will do. Even if you are debt free, the governments might still destroy you with the permanent "rent" on your land and home, known as "Property Taxes."

See this article:

http://www.onpointpreparedness.net/economic-collapse-a-debt-free-home-are-you-still-safe/

He also argues that he believe the first collapse will be deflationary, which will just about wipe out businesses and jobs. Then, hyperinflation on steroids will kick in, and then almost everyone except for the very elite be enslaved - completely.

Also, hyperinflation in past times was rapid, but was limited by how fast they could print the money and put it into circulation.

We are basically an electronic currency now - and in a matter of hours, or even minutes, hyperinflation can be ramped up to such a degree that it will bury most.

My best advice would be to stock food, water, essential medical supplies, and have backup sources (at least temporarily) of heat, light, and power.

Also, have some means to defend yourself and your family.

Some cash on had would be prudent. Credit cards and debit cards may not work, and in a real crash, won't.

Gold and silver are a hedge (as he mentions in the article), but they are only valuable (especially short term) if they are in demand.

I have been told by many individuals that in a prolonged (meaning many weeks or months) emergency situation, they will barter with gold or silver.

I am sure there will be a lot of that going on, but I would not be my life, or my family's life, on it. I cannot imagine the scenario of driving down to some black market parking lot and trading away silver coins or bits of gold from my friendly panicked citizens for food, water, or medical supplies. Can you?

[roadcat]

I cannot imagine the scenario of driving down to some black market parking lot and trading away silver coins or bits of gold from my friendly panicked citizens for food, water, or medical supplies. Can you?

Excellent response, all of it. I have covered myself for most of your points. I have stockpiles of food, water, essential medical supplies, and backup sources of heat, light, and power. I have a generator capable of powering the entire house, and lots of gasoline on hand. Also solar panels and batteries. Survival rations for the family of four to last 6 months, and lots of water. Have weapons. Have tools and supplies to pretty much build anything I need, or to help neighbors. The one thing I don't have covered is growing food. I have some fruit trees, but didn't plant vegetables this year - but I can start if things go bad.

Problem is, how do you fend off gangs if they appear? That's where it's a good idea to have an alliance with neighbors. If you had to go to a black market parking lot and barter, It would be good to go with a bunch of armed neighbors as a group. I have a few I can count on. Still a scary thought though, as anything can go wrong. And some of those gangs could be comprised of government people! Gonna be real interesting times when the collapse happens.

[roadcat]

Of course the illegals coming from poverty who are used to taking what they want, won't be affected much.

Maybe I disagree a bit here. They'll be dead. When the collapse happens, and the illegals try taking stuff from citizens, it's no more Mr. Nice Guy as those citizens fight back. Mamas will kill to defend their kid's needs. We just don't know how the "authorities" will cope with it all, a big unknown.

[dragnet2]

Already happened decades ago. Lots of these folks take people's stuff and kill people. They're jamming the jails on and on.

But I agree with the mama defending comment ☺. Btw. Bottom line we're bleeding from wounds in every sector. We need to try to stop it soon or we bleed out. Real leadership is critically needed. And avoiding a mad max thing is very preferable. I've seen it. No one sane wants to go there.

[AllAmericanGirl44]

bkmk

[A CA Guy]

This is the Great Depression with social programs and government pumping 40% of the stock market our money.

93 million unemployed is a number bigger than the Great Depression when measured as a percentage of the population compared to that time in the past.

[cherry]

its okay to post that the feds will take our 401's but what about an option?.....what are we supposed to do?....

take your money out....pay a huge tax...then what?...put it in a regular savings account that gets less than 1% interest and pay tax on that interest?

[SkyPilot]

its okay to post that the feds will take our 401's but what about an option?.....what are we supposed to do?....

That really depends on many factors: who you are as a person, where or what you want to do, do you have others depending on you in retirement, do you trust in cash/banks/ or assets, and how long are you forecasting?

I would emphasize one fact to the people who scoff that the government would never sieze IRAs and 401Ks - Forbes documents that over 80 percent of the benefits to the top 20 percent of earners (the Tax Policy Center confirms this number).

Further, the Tibble vs. Edison case basically opened the door wide open for the Feds to say they have the justification for seizure, especially if we have a economic collapse.

That means that politically, especially in a crisis (economic collapse, massive natural disaster, martial law, etc) - people with retirement accounts are most likely going to get screwed, and the vast majority of Illegal squatters and American Takers will cheer.

The US Treasury has already "borrowed" $200 Billion twice from Thrift Savings Plan (TSPs) of government employees (during the debt ceiling and government shutdown), and said they "paid it back" - but it is all smoke and mirrors. The debt has been "frozen" for 150 days, and everyone knows it is a lie.

150 Days: Treasury Says Debt Has Been Frozen at $18,112,975,000,000

I can't tell you what to do with you money, only you can make that decision.

Yes, you could withdrawl, take the penalties, and put it into currency, but that depends on how much stock you put in paper currency. Every central bank, most economists, and now countries want to eliminate cash. The cash you hold could become worthless very quickly, depending on what happens.

Precious metals are a hedge, but even they are not a guarantee. First, gold could be made illegal to possess, transfer, buy, or sell - just as FDR did by Executive Order, Obama could easily do again.

But, they are a hedge against poverty.

How long are you forecasting? 10 years? 20? 30 years? Personally, I don't think we have that long. I am Christian, and I firmly believe we are rapidly approaching the End Times. Starring at charts and graphs that tell me "where I will be in 15-20 years" are akin to reading fiction novels, because I don't believe we will ever get there.

I believe the Rapture, and Tribulation, are coming soon, within the next few years, perhaps sooner. Judgments may come before the start of the Tribulation that even Christians will endure.

Therefore, my advice as far as money (and anything else) would be first to be prepared spiritually to meet Jesus Christ.

"Be always on the watch, and pray that you may be able to escape all that is about to happen, and that you may be able to stand before the Son of Man."

Luke 21:26

If you don't know Jesus as your Savior, you need to repent, give your heart to him, and be baptized. Pray that you are a sinner, and you wish for Jesus to come be the Lord of your life and to forgive you for all of your sins. You will receive the gift of forgiveness and the gift of the Holy Spirit - and eternal life.

Having secured that most important factor, I would next prepare yourself and your family physically, at least in the short term. If judgments come to America (and I think they are), then you should have some food, water, medical supplies, and home defense capabilities on hand. Store up treasures in heaven first, and then, store up your barns as Joseph did in Genesis 41.

Lastly, my advice would be to pray. Ask God what course of action He wants you to take, and then follow it.

Remember, if you are saved and one of His children, He promises to take care of His children. He never punishes the righteous along with the wicked, and there are many examples of this in the Bible (Lott, Noah, Egyptians, etc). We may see the judgment, but we won't experience the Wrath. That is reserved for the wicked and unrepentant.