The Dow is crashing, the euro, yen and pound sterling are tanking, and gold is still holding its own. Even the government is having trouble pumping out the Happy Gas "economic" reports - no one believes them any more.
Some of this is almost surreal. Joe "Did I Say That Out Loud?" Biden now tells us that the 8 million jobs lost on his watch (both as a Senator and VP) are lost forever.
Vice President Joe Biden gave a stark assessment of the economy today, telling an audience of supporters, "there's no possibility to restore 8 million jobs lost in the Great Recession."Newsflash, Joe: Most of us knew that. It was your buddies in the Main Stream Media who weren't doing their jobs by keeping the lid on this for the past two years. It was all puppies and rainbows. Green shoots sprouting up everywhere! Don't want to scare the proles.
Housing prices continue to crater. People don't have jobs, so there's no demand. Tent cities are popping up all over the place. Hawaii?
Hunkin walked past a pit bull puppy and peered over a makeshift shelter of tents and tarp hidden by koa haole and elephant grass, then pointed toward the high school's athletic complex barely a football field away.Yep, even paradise is taking its lumps. As the picture up top shows, they DO have their green shoots, though...
"The school is right over there," Hunkin said last week. "This isn't right."
The strip of land is bounded by Waipahu High School on one side and the calming waters of Pearl Harbor's Middle Loch on the other, where the Navy's mothball fleet sits idle. It's the most visible portion of an enormous homeless encampment that stretches five miles over approximately 50 acres of city, Navy and state land that serpentines around...
And speaking of surreal, I damn near stroked out when I saw that socialist Europe was telling our administration they weren't going to try and spend their way out of this mess.
In Britain, the new government reburied Keynes last week, choosing budget austerity over further stimulus. Germany rebuffed Obama’s requests to keep priming the pump. The European Union’s economic affairs chief wrote in a Wall Street Journal op-ed that he “cannot but disagree” with the push for more deficit spending.Ouch.
Getting debt lectures from Europe, the continent that already has brought us the Greek bailout and riots? That’s like leaving it to Lindsay Lohan to tell you to lay off the sauce for a while.
Still, it's no surprise what the administration has planned for us. The projections FROM THE WHITEHOUSE say that by 2085 our annual budget deficit will be equal to 62.3% of GDP.
What does that mean? To put it into persective, right now, our GDP is about $14 trillion. Our annual deficit spending is about $1.5 trillion (out of a total "budget" of $3.5 trillion). This deficit is equal to 10.7% of GDP.
In today's dollars, that 62.3% of GDP would equate to ANNUAL deficit spending of $8.7 trillion! Hell, our current bloated spending is only about $3.5 trillion right now. THAT'S how bad this is becoming.
But no one bats an eye. Spend, spend, spend. Don't worry about our kids, their kids, and their kid's kids. We'll all be dead by then, so who cares?
Accept The Challenge
Realistically, if the projections of the budget office come to fruition, there is nothing any of us can do to "soften the blow" of what's coming. Deficit spending at those levels is unsustainable.
Financially, we need to look much more near-term. As sad as it is to say, unless we see some "fundamental change" in how our federal government operates, I simply don't think that squirreling away nuts for the future will be worth a damn.
Read up on Argentina and what happened to their private retirement funds. Poof! Our Congress is already studying the idea for Americans. If your money isn't in a tangible form (read "precious metals") when TSHTF, your life's work will be gone and will be managed by a nice DMV-like bureaucrat.
I personally believe that to have any real chance of surviving what is coming our way will require land. Arable land. Land that will allow you to provide for yourself.
If the projections for 2085 do happen, even owning the land and precious metals won't do you any good. They will have been long-ago "repatriated" by the government.
This is the path I'm taking - precious metals and dirt - and the means to preserve both. Unless a fundamental change occurs that is 180 degrees different from the change the government is imposing on us, we're all in deep sheep dip.
Not a place I plan on being.
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