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You hit on a very shocking fact right there, that many are living paycheck to paycheck.

I am very concerned about the next couple of months.

Qauntitive easing has been the most insidious asset seizure in US history. QE1 and QE2 have expanded the money supply by upwards of 136% which matches gasoline price increases. This monetary expansion or "TAX" has also destroyed liquid assets in an inverse fashion. This means those that have saved including the elderly for retirement, business investors and the thrifty have lost upwards of 50% of their savings unless invested in bullion, hard commodities and energy.

What this means to the people who were living paycheck to paycheck is life's necessary items are more than doubling. Food and energy are inelastic. People cannot eat their houses, TVs, cars and cell phones. Medical costs will also result in a continued corrosion of the medical system.

The most immediate effect today will be defaults on mortgages and other discretionary item payments I expect to see by fall a much greater acceleration of US business contraction, bankruptcies and mortgage defaults.

These problems are just about the working poor. What of those receiving food stamps? Is the government going to double those benefits to keep up with their artificial "inflation" bubble? Who will lend them the money? The Chinese have already made it clear they will not throw good money after bad and intend to not renew 60% of our "short term" debt or 2 trillion USD.

That leaves the current regime only one option. They are not going to out and out default. They will impose QE3 on the US. According to the AAA gasoline ticker the price of a gallon has almost hit $4.00 today. Will we see $6.00 or maybe even more? This is a death spiral and a guarantee of QE ad nauseum.

The administration has hidden the bread lines from us with food stamps. Food banks even now locally are not able to take up the slack of those that work and do not qualify. We are going to see real hunger in the US for the first time since the great depression and it will only get worse as the current regime continues to raid the piggy banks of the American people.

The ugliness according to history is when the well being of the majority of a population is on a rapid decline. It does not happen when people are in the grip of starvation. I think it is obvious that the next few months are going to be very rocky.

This is why anyone with disposable assets should first take to protect them. Those that can should prepare while food is plentiful and affordable. Those very same dollars today will be worth less than half again after the next quantitive easing.

It is not that we are moving into ugly times, it is that we are now living in them.

JMHO and YMMV

Well, it’s not gonna play well in Peoria when working class people who are truly struggling to keep a roof over their heads and fill their tanks SO THEY CAN GO TO WORK keep getting to stand in line at the supermarket behind the folks who are buying high-end stuff with their food stamps.
Their behinds big as a barn door jiggling with a mocking “I deserve it!!” attitude.

Hey, I’m all for helping people sometimes. And I was alive during the beginnings of the Great Society stuff.

It was always meant to be “A hand UP”, not “A hand OUT!!”

Not gonna play well at all.