Financial Collapse 2020-2035

Here is some more information to help you to better see that the "most predictable economic crisis we've had" is headed our way: it is obvious to those that care to look. Here is some more good new about our economic situation from the Congressional Budget Office, CBO. It paints a very bleak picture where America is headed towards a Greek-like crisis between 2020-2035.

As negotiators look to gimmicks and changing assumptions to reach a deal on raising the debt ceiling, a new report by congressional budgeters out Wednesday is offering a grim outlook and ugly alternatives for dealing with increasing debt. The report by the Congressional Budget Office says that the debt will eat up the government’s spending ability, and offers two scenarios -- both potential trajectories -- that they say by 2035 will push the debt either to most of the annual gross domestic product or to nearly twice the economic power of the U.S. Already, the CBO says, the debt has spiraled out of control in just three years. 'At the end of 2008, that debt equaled 40 percent of the nation's annual economic output (a little above the 40-year average of 37 percent). Since then, the figure has shot upward: By the end of this year, the Congressional Budget Office (CBO) projects, federal debt will reach roughly 70 percent of gross domestic product (GDP) -- the highest percentage since shortly after World War II,' reads the report.

This increase in debt is staggering and can't be maintained. The August 2 deadline to raise the nation's debt ceiling is fast approaching and it looks like some sort of a deal has been reached between republicans and democrats on raising the debt limit in exchange for spending cuts. But these are very unlikely to be real spending cuts. They will probably be like the phony cuts to this years budget that started out as 100 billion and turned into 60 billions that ended up being a couple of million dollars. If real cuts can't be made at the present, then how will it be any easier or possible to make them at a latter date when it will be a more difficult proposition?

The fact is that America has reached the point that other countries of past and present have reached in this stage of their economic collapse that results from deficit spending-- made possible by central banks-- to fund an over bloated welfare state. The leaders knew/know that they must cut spending but that this will lead to social unrest and lost of social cohesion--check out Greece-- and that such cuts are politically impossible to make-- look at recent attacks on the proposed cuts to medicare. So the leaders create more debt in the attempt to delay the day of reckoning to buy time to come up with a better solution to the economic problems. This "better solution" never materializes and economic collapse is always the end result. This time the collapse is not an individual nation or region of the world but the entire globe. When the nations of the world find themselves in this state of collapse, they will be forced to put aside political and cultural differences while they come together for a short time as the result of the interconnectedness of the economies of the world to form international alliances, agreements and governing bodies as a means to salvage the situation. Look at the relationship between Germany and Greece. Germany is bailing out Greece against the will of its people again because they failed to live up to its austerity measures. Germany is doing this because of the risk of the financial contagion--German banks are invested in Greek debt-- affecting Germany. It is only a matter of time before Greece and then the EU collapses to be followed by America around 2020-2035.

What can you do to prepare yourself for this economic crisis so that you can thrive? Live life but prepare yourself mentally for a very bad economy, know basic survival psychology, stay out of debt, get out of debt, increase your line of available credit, have a couple months of extra food, own some precious metals, invest in commodities and assets with intrinsic value, read the Bible, and know that agriculture is going to be the next big thing according to a prominent investor. Or do what the majority of people throughout history do in situations like these which is to be unawares which leads them falling on their face and being raped. sometimes literally. "In hyperinflation[ or economic collapse], a kilo of potatoes was worth, to some, more than the family silver; a side of pork more than the grand piano. A prostitute in the family was better than an infant corpse; theft was preferable to starvation; warmth was finer than honor, clothing more essential than democracy, food more need than freedom." Quoted form Adam Fergusson's book "When Money Dies". Inflation and economic depression is always the end result when central banks control a nations money supply. To see this clearly read "The Creature From Jekyll Island".