Tere's an EXCELLENT article in today's American Thinker about our pending financial collapse (or hyperinflation as predicted by the top economist at Bank of America). This $1.9 TRILLION plays a significant role and passed on a near-party-line vote, but both parties are equally culpable.
The Federal Reserve Is Taking Us into Uncharted and Deadly Waters, by William Levin, February 27, 2021 (posted by Kaslin). At the Federal Reserve semi-annual testimony before Congress this week, Chair Jerome Powell should have been asked whether the Fed has become the national Reddit.
The Reddit stock frenzy created a pool of motivated buyers, irrespective of the value of the underlying company.
For more complicated reasons, the federal government is the biggest Redditer of all, Reddit on crack cocaine. Instead of billions, the government plays in the trillions. Instead of a handful of small cap stocks, it has hijacked the entire stock market. But the mechanism is the same. Flood the market with funds, and for good measure force interest rates to zero, eliminating alternative investments. The recent congressional Reddit hearings are parody in comparison to the government's role in driving market prices, in particular the Fed.
Let's make it specific. When Joe Biden promises to spend $1.9 trillion, where exactly does that money come from? Beyond that, even excluding the $1.9 trillion, how does the government finance four years of deficits, which the Congressional Budget Office recently estimated at $5.9 trillion? That's an expected one-term cumulative deficit of $7.8 trillion. Where indeed does this money come from?
The wrong answer is tax receipts. In FY2020, federal budget revenues — i.e., tax receipts — totaled $3.4 trillion — $1.6 trillion from income taxes; $1.3 trillion from payroll taxes; $0.2 trillion from corporate taxes; and the balance of $0.3 trillion from excise, custom duties, estate taxes, and miscellaneous. Spending, on the other hand, totaled $6.6 trillion, versus the pre-COVID budget of $4.8 trillion. The result is a record $3.1-trillion deficit.
The CBO 2020 Long-Term Budget Outlook
This is going to end in complete financial calamity for the US. The big question is how do we personally protect ourselves from the collapse?
“The big question is how do we personally protect ourselves from the collapse?”
We talk about this a lot here, between the Prepper posts and the Financial/PM posts.
I live a pretty bare bones life. Not much more to ratchet down, but there are always ways to prepare yourself for the worst.
“According to Lombardi Letter, there are five signs that an economic collapse is about to happen. They are:
Growing government debt: when an economy slows, the government usually steps in to help stimulate spending again, but with high debt, the government might not be able to make that injection.
Stock markets trading at all-time highs: investors are taking more risk on the market, markets continue to trade higher meaning investments are bull-market driven and not research-based which could lead to a stock market bubble.
Unemployment rate: eligible worker, retirement, and student rates all identify trends in people not contributing to the economy and could slow down economic growth
Unstable government: this boils down to the leader and government team in the decisions and actions that may affect the economy in various ways
Rising national debt: this means less consumer spending in the economy and more money spent on paying a debt.”
https://thepreppingguide.com/prepping-financial-collapse/
“How can you prepare for an economic collapse?
Learn simple economics so you can identify early warning signs.
Cash is king.
Start building an emergency cash fund.
Start being more frugal with your monthly bills.
Generate an additional (collapse-proof) form of income.
Get out of debt.
Make sure your passport is current.
Start/Continue Prepping.
Use Websites and Apps now (while you can).
Expand your skills.”
Diana here: I will add, learn to grow some of your own food, especially veggies and fruits that are expensive in the grocery store and/or have the highest nutritional bang for your buck. (Kale, Sweet Potatoes, Spinach, Broccoli, Beets, Winter Squash!)
Also, see my Tag line. Your ‘Hobbies’ need to be something that benefits you and yours. Gardening, car maintenance, home maintenance, building skills, welding, hunting, fishing, baking & cooking from scratch, raise small animals (chickens, goats, a pig) for food, sewing, knitting or crochet.
You know, all of those ‘things’ our Great/Grandparents did in the course of their every day life? ;)