(News & Editorial/ Its evolving into a long economic depression)
A. You Will Lose These Things in the Next Great Depression
1 Apr 2013, Pacific Rim Coins, by suburbanprep
Pasted from: http://pacificrimcoins.com/content/you-will-lose-these-things-next-great-depression
The audience of my blog are thoughtful, mindful people who have insight in the future. That future includes the next Great Depression. It will happen within your lifetime, perhaps within 5 years. From what I have read and studied, a mere 2% of our society are preppers. The means 98% of society is unprepared for the future. The greatest risk to preppers are non-preppers. In the next Great Depression, when people are hungry, desperate, and therefore have no fear of arrest, the survival prepper is the target. For these reason, I strongly advise that you keep a low profile, hide in plain sight, and keep OpSec. Essentially, tell know one that you are a survival prepper. Your first duty is your family. You must feed and protect your family. After your family is provided for, then only can you help your neighbors.
Once the next Great Depression hits North America, everyone will lose things. Even survival preppers will lose things. But a well-prepared survival prepper will suffer less. Non-prepared people will suffer greatly.
The following is a list of things that you will lose in the next Great Depression:
- Leisure – In order to survive the next Great Depression, you will work from sun-up to sun-down. You’ll make much less money for much more work. Leisure time will be an extreme luxury.
- Vacations – With on money in your pocket, there will be no vacations. If you work in the vacation/leisure/travel industry, such as hotel management, expect to be added to the ranks of the unemployed.
- Video Games – You’ll not have the time. You’ll not be able to afford gaming devices. You’ll be too tired to play.
- Weight – You’ll be doing more physical work, such as tending to your garden. You’ll have less food. Fast food will be a distant memory. Snacks and candy will unaffordable. Expect to lose weight. If you look at pictures of people living during the first Great Depression, you will not have seen any overweight people. Today, nearly half of the people in the United States are overweight. Once the next Great Depression becomes the reality, very few people will be overweight.
- Retirement – The next Great Depression will last 10+ years. If your retirement years overlap with the next Great Depression, you will continue working. If you are already in retirement, expect to return to work, even if just babysitting for your grandchildren while your children seek work.
- The Truth – Governments will minimize the truth. In order to prevent panic, protects, and widespread anarchy, the government will only be selling good news. In Argentina, if you tell the truth about the real rate of inflation, you’ll be put in jail. Criticize the Greek government, you’ll be push out of the government. Tell the European Commission that they are the source of the problem, rather than the cure, you’ll be branded as an extremist, a populist, or a nut case. Cyprus made promises to businesses and its people that “all was well”, up until the point that they declared a bank holiday.
- Money – Banks will collapse in the next Great Depression. Just as they did in 1929, banks will close and you’ll lose everything. The FDIC is already running a deficit. When “too big to fail” start failing, everyone gets a financial haircut. Unemployment will go past 25%. Inflation will cause the price of food and energy to exceed the resources of average people. (Hint: buy gold and silver coins to protect your wealth.)
- Safety – During an economic collapse, crime will become rampant. The looking well feed and prosperous will make you a target. Every trip away from home will incur risk. One of the biggest problems in Argentina and Greece, who are have already entered their next Great Depression is crime and corruption. Once in the next Great Depression, you dare not let your children play out of your sight.
- Lifespan – Hospitals will become overwhelmed with charity cases. Many hospitals will close due to lack of funds. Access to drugs and doctors will be highly limited. You’ll need to pay cash ahead of time for medical care. Expect the average lifespan to drop from 80 years old to 70 years old, since sophisticated advanced medical care and life-extending drugs will be out of reach of most people. [Ask yourself, “Where is Obamacare (Affordable Care Act) taking us?” The process described above is unfolding right before our eyes. Mr Larry]
- Hope for the Future – When your day is consumed with merely surviving and finding a meal, many people will lose their perspective on the future. All those people who are paying for anti-depression or anti-anxiety medicines may lose access to those medicine. Suicide rates will dramatically increase. See the following stores to demonstrate this:
- Greece Suicides: Increasing Suicide Numbers Cause Alarm
- Rate suicide increased of 40% in Greece
- Cleanliness – Whenever you look at pictures of people living during the first great depression, you notice bad haircuts, frayed clothing, and a general unkept appearance. Whatever clothing you have now might have to last through the end of the next Great Depression. During the first Great Depression, you will a lucky little girl if you have more than one dress. Mothers would cut and sew clothing from the cloth of leftover animal feed bags and from charity food sacks to make clothing for their children. I wonder how many women these days even have a sewing kit? If given the choice between buying a meal or buying soap, most people will pick food. Better to smell bad than be hungry.
- Social Security/Pensions – The US Social Security system is already drawing down its reserves and running an annual deficit. When the economy collapses, so will the Social Security system. If you rely solely on Social Security for your retirement funds, you will be greatly humbled in the next Great Depression. When the stock market collapses with the next Great Depression, so goes your pension.
- Mobility – Automobiles, auto insurance, fuel, oils and associated maintenance will be proportionally very expensive. Many people who will be out of work for years will be forced to give up their mobility. People will walk nearly everywhere. Or bicycle. If you don’t already, having a bicycle is a very good tool during a Great Depression. (stock up on extra tires and inner-tubes while you still have a job)
- Date Night – Dinner and a movie with your partner will be an extreme luxury, when you can barely afford to pay for a family meal.
- Exotic Food Shipped Around the World – The days when you can get strawberries out of season and sushi will be gone. Grapes from Argentina, Olives from Greece, Cheese from France, Chocolate from Belgium … impossible. You’ll be eating locally produced food in its correct season.
- During the first Great Depression, a high percent of people were still devoted to food production and the food supply chain. Today, 2% of the people (farmers, ranchers, growers) produce the food for the other 98%. The average age of farmers is north of 50. Our young generation believes hamburger originates from groceries stores.
Even for dedicated, prepared survival-preppers, the 10+ years that the next Great Depression will last will deplete your supplies and resources. To live comfortably in the next Great Depression, you must become a producer. Produce food, valuable goods, and essential services that people need to survive.
My definition of wealth comes down to one measurement, if you lost your job or source of income tomorrow, how long could you survive solely on your existing physical, tangible, and financial resources.
If you have enough resources saved such that you never need to work another day, and you feed your family from all your accumulated resources, then you are a wealthy person. Very few, myself included, meet this criteria.
Greece, Spain, Argentina, Cyprus, Ireland, Iceland, and Malta have already entered the period of their next Great Depression. Italy is near the tipping point. France is in a recession. Great Britain is barely keeping its head above water. And had the US Federal Reserve not continued to flood the world with cheap dollars, the United States would also be in another recession. We continue to borrow against our grandchildren’s and great-grandchildren’s future…to pay for our current lifestyle. Shame on this generation.
There will be one measure of how well you will survive the next Great Depression. That measure is how hard are you willing to work. Are you willing to tend to your garden at 5AM, go to your day job for less than minimum wage, and then conduct your at-home business in the evening? Those than can keep up this work load will survive. Given the rate of obesity in the United States, I am expecting a lot of miserly, protests, riots, looting, and general civil disorder at the start of the next Great Depression.
This is a less than cheery posting, I know. Dealing with reality is hard. Put yourself back in time to 1927. You have the fore-knowledge that the Great Depression is coming in 1929, and there is nothing you can do to stop it. What would you do? Your situation, your skills, your family circumstances, your neighborhood, your planting climate, your financial situation are all unique to you. Only you can create a plan to survive the next Great Depression. The people in Cyprus today feel this reality. For the people in Cyprus it is 1929. For the United States, it is 1927. Hopefully you have two or more years to get ready.
And oh, by the way State of California, when you go completely bankrupt due to your utterly stupid politics, poor financial management, and unrealistic progressive idealism, it would be hugely unfair to seek a bailout from the other states who have managed their finances properly. You shit in your own bed, and you should sleep in it.
B. 20 Signs That The Next Great Economic Depression Has Already Started In Europe
30 Apr 2013, zerohedge.com, Submitted by Tyler Durden
Pasted from: http://www.zerohedge.com/news/2013-04-30/20-signs-next-great-economic-depression-has-already-started-europe
By Michael Snyder of The Economic Collapse blog
The next Great Depression is already happening – it just hasn’t reached the United States yet. Things in Europe just continue to get worse and worse, and yet most people in the United States still don’t get it. All the time I have people ask me when the “economic collapse” is going to happen. Well, for ages I have been warning that the next major wave of the ongoing economic collapse would begin in Europe, and that is exactly what is happening. In fact, both Greece and Spain already have levels of unemployment that are greater than anything the U.S. experienced during the Great Depression of the 1930s.
Pay close attention to what is happening over there, because it is coming here too. You see, the truth is that Europe is a lot like the United States. We are both drowning in unprecedented levels of debt, and we both have overleveraged banking systems that resemble a house of cards. The reason why the U.S. does not look like Europe yet is because we have thrown all caution to the wind. The Federal Reserve is printing money as if there is no tomorrow and the U.S. government is savagely destroying the future that our children and our grandchildren were supposed to have by stealing more than 100 million dollars from them every single hour of every single day. We have gone “all in” on kicking the can down the road even though it means destroying the future of America. But the alternative scares the living daylights out of our politicians. When nations such as Greece, Spain, Portugal and Italy tried to slow down the rate at which their debts were rising, the results were absolutely devastating. A full-blown economic depression is raging across southern Europe and it is rapidly spreading into northern Europe. Eventually it will spread to the rest of the globe as well.
The following are 20 signs that the next Great Depression has already started in Europe…
#1 The unemployment rate in France has surged to 10.6 percent, and the number of jobless claims in that country recently set a new all-time record.
#2 Unemployment in the eurozone as a whole is sitting at an all-time record of 12 percent.
#3 Two years ago, Portugal’s unemployment rate was about 12 percent. Today, it is about 17 percent.
#4 The unemployment rate in Spain has set a new all-time record of 27 percent. Even during the Great Depression of the 1930s the United States never had unemployment that high.
#5 The unemployment rate among those under the age of 25 in Spain is an astounding 57.2 percent.
#6 The unemployment rate in Greece has set a new all-time record of 27.2 percent. Even during the Great Depression of the 1930s the United States never had unemployment that high.
#7 The unemployment rate among those under the age of 25 in Greece is a whopping 59.3 percent.
#8 French car sales in March were 16 percent lower than they were one year earlier.
#9 German car sales in March were 17 percent lower than they were one year earlier.
#10 In the Netherlands, consumer debt is now up to about 250 percent of available income.
#11 Industrial production in Italy has fallen by an astounding 25 percent over the past five years.
#12 The number of Spanish firms filing for bankruptcy is 45 percent higher than it was a year ago.
#13 Since 2007, the value of non-performing loans in Europe has increased by 150 percent.
#14 Bank withdrawals in Cyprus during the month of March were double what they were in February even though the banks were closed for half the month.
#15 Due to an absolutely crippling housing crash, there are approximately 3 million vacant homes in Spain today.
#16 Things have gotten so bad in Spain that entire apartment buildings are being overwhelmed by squatters…
A 285-unit apartment complex in Parla, less than half an hour’s drive from Madrid, should be an ideal target for investors seeking cheap property in Spain. Unfortunately, two thirds of the building generates zero revenue because it’s overrun by squatters.
“This is happening all over the country,” said Jose Maria Fraile, the town’s mayor, who estimates only 100 apartments in the block built for the council have rental contracts, and not all of those tenants are paying either. “People lost their jobs, they can’t pay mortgages or rent so they lost their homes and this has produced a tide of squatters.”
#17 As I wrote about the other day, child hunger has become so rampant in Greece that teachers are reporting that hungry children are begging their classmates for food.
#18 The debt to GDP ratio in Italy is now up to 136 percent.
#19 25 percent of all banking assets in the UK are in banks that are leveraged at least 40 to 1.
#20 German banking giant Deutsche Bank has more than 55 trillion euros (which is more than 72 trillion dollars) of exposure to derivatives. But the GDP of Germany for an entire year is only about 2.7 trillion euros.
Yes, U.S. stocks have been doing great so far this year, but the truth is that the stock market has become completely and totally divorced from economic reality. When it does catch up with the economic fundamentals, it will probably happen very rapidly like we saw back in 2008.
Our politicians can try to kick the can down the road for as long as they can, but at some point the consequences of our foolish decisions will hunt us down and overtake us.
The following is what Peter Schiff had to say about this coming crisis the other day:
“The crisis is imminent,” Schiff said. “I don’t think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems.”
“We’re broke, Schiff added. “We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out.”
Schiff points out that the market gains experienced recently, with the Dow first topping 14,000 on its way to setting record highs, are giving investors a false sense of security. “It’s not that the stock market is gaining value… it’s that our money is losing value. And so if you have a debased currency… a devalued currency, the price of everything goes up. Stocks are no exception,” he said. “The Fed knows that the U.S. economy is not recovering,” he noted. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.”
So please don’t think that we are any different from Europe.
If the United States government started only spending the money that it brings in, we would descend into an economic depression tomorrow.
The only way that we can continue to live out the economic fantasy that we see all around us is by financially abusing our children and our grandchildren. The U.S. economy has become a miserable junkie that is completely and totally addicted to reckless money printing and gigantic mountains of debt.
If we stop printing money and going into unprecedented amounts of debt we are finished. If we continue printing money and going into unprecedented amounts of debt we are finished.
Either way, this is all going to end very, very badly.
C. Top Adviser To The Chinese Government Calls For A “Global Currency” To Replace The U.S. Dollar
6 Feb 2014, EndOfTheAmericanDream.com, by Michael Snyder
Pasted from: http://endoftheamericandream.com/archives/top-adviser-to-the-chinese-government-calls-for-a-global-currency-to-replace-the-u-s-dollar
The former chief economist at the World Bank, Justin Yifu Lin, is advising the Chinese government that the time has come for a single global currency. Lin, who is also a professor at Peking University, says that the U.S. dollar “is the root cause of global financial and economic crises” and that moving to a “global super-currency” will bring much needed stability to the global financial system. And considering how recklessly the Federal Reserve has been pumping money into the global financial system and how recklessly the U.S. government has been going into debt, it is hard to argue with his logic. Why would anyone want to trust the United States to continue to run things after how badly we have abused our position? The United States has greatly benefited from having the de facto reserve currency of the planet for the past several decades, but now that era is coming to an end. In fact, the central bank of China has already announced that it will no longer be stockpiling more U.S. dollars. The rest of the world is getting tired of playing our game. Our debt is wildly out of control and we are creating money as if there was no tomorrow. As the rest of the world starts moving away from the U.S. dollar, global power is going to shift even more to the East, and that is going to have very serious consequences for ordinary Americans.
Sadly, most Americans don’t even realize what is happening. These comments by a top adviser to the Chinese government should have made front page news all over the nation. I had to go to China Daily to find the following excerpt…
“The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.
“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. “The solution to this is to replace the national currency with a global currency.”
Lin, now a professor at Peking University and a leading adviser to the Chinese government, said expanding the basket of major reserve currencies — the dollar, the euro, the Japanese yen and pound sterling — will not address the consequences of a financial crisis. Internationalizing the Chinese currency is not the answer, either, he said.”
And this is not the first time that we have heard these kinds of comments coming out of China. For example, Xinhua News Agency called for a “de-Americanized world” back on October 14th…
“It is perhaps a good time for the befuddled world to start considering building a de-Americanized world.”
That particular news agency is controlled by the Chinese government, and if the Chinese government did not approve of that statement it never would have made it into the paper.
Then in November, the central bank of China announced that it is going to stop stockpiling U.S. dollars.
Most Americans don’t want to hear this, but what we are witnessing is a massive shift in global power. China is catching up to us in a multitude of ways, and they are getting tired of playing second fiddle to the United States. In fact, China is already surpassing the U.S. in a number of key areas…
– China accounts for more global trade than anyone else in the world.
– China imports more oil from Saudi Arabia than anyone else in the world.
– China imports more oil overall than anyone else in the world.
– It is now being projected that Chinese GDP will surpass U.S. GDP in 2017.
When the rest of the world quits using U.S. dollars to trade with one another and quits lending our dollars back to us at ultra-low interest rates, things are going to start changing very rapidly.
In a previous article, I discussed why having the reserve currency of the world is so important to the United States…
The largest exporting nations such as Saudi Arabia (oil) and China (cheap plastic trinkets at Wal-Mart) end up with massive piles of U.S. dollars.
“Instead of just sitting on all of that cash, these exporting nations often reinvest much of that cash into low risk securities that can be rapidly turned back into dollars if necessary. For a very long time, U.S. Treasury bonds have been considered to be the perfect way to do this. This has created tremendous demand for U.S. government debt and has helped keep interest rates super low. So every year, massive amounts of money that gets sent out of the country ends up being loaned back to the U.S. Treasury at super low interest rates.
And it has been a very good thing for the U.S. economy that the federal government has been able to borrow money so cheaply, because the interest rate on 10 year U.S. Treasuries affects thousands upon thousands of other interest rates throughout our financial system. For example, as the rate on 10 year U.S. Treasuries has risen in recent months, so have the rates on U.S. home mortgages.
Our entire way of life in the United States depends upon this game continuing. We must have the rest of the world use our currency and loan it back to us at ultra low interest rates. At this point we have painted ourselves into a corner by accumulating so much debt. We simply cannot afford to have rates rise significantly.”
As the rest of the globe moves away from the dollar, demand for the dollar is going to go down and that is going to cause a lot of inflation – especially for imported goods. So the days of piling lots of cheap plastic stuff made in China into your shopping carts is coming to an end.
And as the rest of the globe moves away from U.S. debt, interest rates are going to go much higher than they are today. Eventually, the U.S. government will be paying out more than a trillion dollars a year just in interest on the national debt and all loans throughout our entire financial system will have higher interest rates. This is going to cause economic activity to slow down dramatically.
On the global economic stage, China is playing checkers and we are playing chess, and we are getting dangerously close to checkmate.
Meanwhile, China is also rapidly catching up to us militarily.
At a time when U.S. military spending is actually decreasing, China is spending money on the military aggressively.
In 2014, Chinese military spending will rise to $148 billion, which represents an increase of 6 percent over 2013.
The balance of power is shifting right in front of our eyes.
For example, at one time the U.S. Navy reigned supreme and the Chinese Navy was a joke.
But now that is rapidly changing. The following is from an article posted on military.com…
“The Chinese navy has 77 surface combatants, more than 60 submarines, 55 amphibious ships and about 85 missile-equipped small ships, according to the report first published by the U.S. Naval Institute. The report explains that more than 50 naval ships were “laid down, launched or commissioned” in 2013 and a similar number is planned for 2014.”
Of particular concern is the growth of the Chinese submarine fleet. The Chinese now have submarine launched ballistic missiles with a maximum range of about 4,000 miles…
“ONI raised concerns about China’s fast-growing submarine force, to include the Jin-class ballistic nuclear submarines, which will likely commence deterrent patrols in 2014, according to the report. The expected operational deployment of the Jin SSBN “would mark China’s first credible at-sea-second-strike nuclear capability,” the report states.
The submarine would fire the JL-2 submarine launched ballistic missile, which has a range of 4,000 nautical miles and would “enable the Jin to strike Hawaii, Alaska and possibly western portions of CONUS [continental United States] from East Asian waters,” ONI assessed.”
In addition, China is also working on “hypersonic glide vehicles” that can travel “at speeds of up to Mach 10 or 7,680 miles an hour”. The following is an excerpt from a recent Washington Free Beacon article…
“The Washington Free Beacon first disclosed China’s Jan. 9 flight test of a hypersonic glide vehicle that the Pentagon has called the WU-14.
The experimental weapon is a new strategic strike capability China’s military is developing that is designed to defeat U.S. missile defenses. China could use the vehicle for both nuclear and conventional precision strikes on targets, including aircraft carriers at sea.
U.S. officials said that, while the glide vehicle test was not an intelligence surprise, it showed China is moving much more rapidly than in the past in efforts to research, develop, and test advanced weaponry.”
The world is changing, and the United States is not the only superpower anymore. China is thriving and Russia is also on the rise. Five years from now, the world is going to look far, far different than it does today.
Sadly, most Americans do not care about these things at all. Most of them are much more concerned about the latest celebrity scandal or about what Justin Bieber has been doing.
In the end, most Americans will have no idea what is happening until it is far too late to do anything about it.