An Economic Collapse – Setting The Precedence

Are we setting a precedence for an impending economic collapse? It seems as though everyone is worried about an economic collapse these days, and for good reason.

With our governments reckless spending and tendency to print money or raise the debt ceiling whenever they want they are digging a hole that is too deep to get out of.

A trillion dollars is hard to wrap your mind around, so let’s take away a few zero’s and turn this into something we can understand.

Let’s say you earned $25,000 a year, but you spend $35,000 and on top of that you are already in debt $170,000. How long would it be before everyone you owed money to come and took everything you own and left you and your family on the streets?

Now take that number and add 8 zero’s to it and that is what our government does every year, and these numbers are not going down, they are going up.

Now I’m no economist but it seems to me that a responsible person would figure out a way to spend less than they brought in and try to pay off their debt, but I could be wrong.

Put Your Tin Foil Hat On

Now for any of you that know me you know that I am not one to go off the deep end and talk about the underground tunnels at D.I.A. or the Illuminati, but in this situation some amount of speculation is necessary because when your government is acting like a heroin addict, you know they are just telling you what you want to hear in order to keep doing what they are doing.

Because I love my country and I don’t want to see it go down in flames, and because I know they are not going to tell me the truth I have to ask myself a few question…

Why are they allowing foreign troops on U.S. soil?

Why is the mainstream media avoiding the subject that China is moving away from stockpiling the U.S. dollar?

What is going on “behind the scenes” that they don’t want us to know?

Throughout history countries have forgiven debt owed by other countries in order for society to thrive. That is until private interests and corruption got involved in government, and when the Roman Empire decided that if you couldn’t pay your debt they would just take your country.

To me the Roman Empire has quite a few unsettling similarities to the United States today. The Romans fell because of greed, corruption and forcing their will on anyone they wanted. They basically got too big for their britches and could not maintain the lavish lifestyles for the rich while the poor just got poorer.

Although it took centuries for the Roman Empire to fall, in the 21^st century everything happens at a much faster rate because of technological advances. This means that something that took 500 years to unfold a thousand years ago could unfold in our lifetime. And if you take a look at how the Roman Empire grew and fell you begin to see quite a few similarities to our society today.

So how much longer will it be until we pass the point of no return? Or have we already passed the tipping point and the real question is, how long do we have?

Why Setting Precedent is Dangerous

When we let foreign troops on our soil we are setting a precedent for future occurrences. When you let your dog on the couch you are telling him it’s ok to get on the couch, so what is this telling us and our troops? Are they trying to get our soldiers comfortable fighting side by side with foreign troops? Are they trying to get us to think nothing of it when we see Chinese or Russian troops training on U.S. soil?

It all starts with the dog sitting on the couch, and all the sudden you notice that the couch is torn to shreds and you are sitting on the floor.

So is it coincidence that China is by far the largest foreign creditor to the U.S., holding just under $1.3 trillion in U.S Treasurys, according to Reuters, and a total of $3.66 trillion held in foreign exchange reserves and we are letting China participate in RIMPAC as a “gesture of goodwill?”

This is where I put my tinfoil hat on, we only know what they want us to know, so how much more is there to this story? Is our government setting the stage for something that they know is inevitable? And what is it?

Are we letting this dog sit on the couch because we have no other choice? Has it come to the point where the bully (the US) is losing its leverage and now we need to make certain exceptions to keep other countries from turning on us?

Call me a conspiracy theorist if you want, but I have to believe that our elected officials are smart enough to see an economic collapse coming and are trying to take steps to mitigate the damages, but at what cost?

Could China Be The Next World Power?

As SeekingAlpha wrote: Nowadays, the USD is steadily losing value because of the Federal Reserve’s “quantitative easing” (i.e. money-printing) policy. As a result, the Chinese have had to accelerate their dollar purchases to prevent the yuan from rising against the ailing dollar. This has led to unprecedented inflation.

And Reuters wrote: In the long run, the United States must face up to inevitably being overtaken by China as the world’s largest economy. And it may have missed a chance to rein in its largest financial institutions, many of whom remain too big to fail and are getting bigger.

This is exactly why China slowly getting away from stockpiling the U.S. dollar, we have basically helped china get its economy back on track over the last 20 years by buying all of the cheap made in china dollar store crap, and now they are getting less and less dependent on the U.S. for exports.

As we begin to see all of this made in china crap increase in price we will begin to see the Chinese Yuan take over the American dollar as the world fiat currency, and this could happen by 2030.

What Can We Do To Prepare?  

As our economy falls and the value of the dollar decreases a loaf of bread could cost $5, the price of gas could rise over $10 per gallon and just purchasing the necessity’s will put a major crimp in your budget.

This is why we should be doing everything we can now to offset these costs, put ourselves in a better position and be more prepared to live through an economic collapse or hyper inflation.

Reduce Your Debt.

Some people seem to think that you can just max out your credit cards and get further into debt because if the value of a dollar goes down to 50 cents $100 in debt would become $50. This could be true, but what if it doesn’t? What if you lose your job because the economy is so bad and you can’t even pay back 50 cents on the dollar? Or what happens when the cost of basic goods and supplies skyrockets and you are still making $10 an hour?

Invest In Your Future

Investing in your future doesn’t mean investing is stocks and bonds, investing in your future means buying what you can now so you don’t have to buy it when the dollar collapses. This is why long-term food storage and other money saving skills are so important.

If you have a year’s worth of food stored it could help you get through times when you can’t afford to go grocery shopping, and if you know how to make bread from scratch you won’t need to pay $5 a loaf.

Cooking and gardening skills seem to be a lost art these days, as people have become more dependent on Walmart and Safeway  they have no idea how to make these things themselves if they had to. Learning new skills that help you stay away from Walmart could literally be a lifesaver.

Tangible Goods

I’m not a financial advisor so I am not going to give any financial advice, but investing in precious metals is always a good idea. How much you invest depends on your personal situation, and keep in mind that precious metals are only worth what someone will pay for it. But precious metals will always be better than fiat currency because you can hold it in your hand, if you can’t hold it in your hand it’s not real.

Tangible goods that you can consider investments could also be tools, supplies and goods that someone else would want and would hold more value than the dollar. Bartering is not just something that you will need to do in a SHTF scenario, this could be a valuable tool in the near future, but you’re going to need to have something to barter with.

Like most people an economic collapse is always on the top of my mind, this is because I really can’t see how we can possibly dodge this bullet. To me the question is not whether we can dodge the bullet, but how can I make sure I don’t get hit in the heart when it’s fired.

Dale Goodwin

SurvivalistPrepper.net