Most people just assume that since things have always been a certain way that they will always be that way in the future. Most people just have blind faith that the people running our government and our financial system know exactly what they are doing and that they are doing their best to take care of us. In fact, once upon a time I was fully convinced of that. When I was a kid I quickly realized that my elementary school teachers really didn’t have the answers, but I had total faith that those running society at the highest levels were “experts” that were looking out for our best interests. As time went on I kept progressing in my education, and by the time I was finished with law school I came to understand that none of our “experts” really know what they are doing, and they are definitely not looking out for our best interests. The blind are leading the blind and we all need to finally admit that the emperor is not wearing any clothes. Unfortunately, most Americans will repeat the mantra of “if that was true I would have heard about it on the news” until it is way too late. Most people are waiting for the “authorities” to tell them what to do instead of thinking for themselves. Sadly, time is rapidly running out and a lot of people are going to end up getting totally blindsided by what is coming.
The man in charge of our financial system, Federal Reserve Chairman Ben Bernanke, is not going to save our economy. He didn’t see the last financial crisis coming, and even after things started falling apart he continued to insist that housing prices would not go down and that we would not have a recession.
Well, it turned out that we had the worst housing crash and the worst recession since the Great Depression of the 1930s.
But still millions of Americans are trusting him to save us this time around.
It isn’t going to happen.
The biggest reason why the U.S. government is 16 trillion dollars in debt is because the system is designed to create gigantic amounts of government debt.
Yes, without a doubt the vast majority of our politicians are corrupt and/or incompetent, but even if we replaced every single one of them our economic problems would still persist until the underlying structural problems were addressed.
Most Americans are pinning their hopes for an economic turnaround on the upcoming election, but the truth is that neither Obama or Romney has a plan that will fix things. That statement is going to upset a lot of people on both sides of the political spectrum, but it is true.
Over the past 40 years the total amount of all debt in the United States has gone from less than 2 trillion dollars to almost 55 trillion dollars. This bubble is going to burst no matter which political party is in power.
Obama and the Democrats have tried to kick the can down the road and extend the party by spending 5.3 trillion borrowed dollars over the past 4 years, but by doing so they have made our long-term problems far worse.
The next wave of the economic crisis is fast approaching and people need to get prepared.
So what do I mean by that?
Well, “preparation” is going to look different for each family, but there are some general principles that apply to almost everyone.
For example, during an economic collapse hard assets are preferable to paper assets.
Also, during an economic collapse necessities become much more important and luxuries become much less important.
For many more tips, please see this article.
For the moment, I want to focus on some of the really bad things that could happen to you if you choose not to prepare for the coming economic collapse….
You Could Find Yourself On The Wrong End Of A Banking Crisis
During a major financial crisis the banking world can change very rapidly.
You could wake up one day and discover that the bank holding all of your money has failed.
You could wake up one day and discover that because Ben Bernanke has printed trillions upon trillions of new dollars to “fix” the financial system your life savings have been devalued by 50 percent.
You could wake up one day and discover that your bank account has been converted over to a new currency that is worth far less than the one you thought you were holding.
Such a scenario may sound unthinkable in the United States (at least for now), but this is the kind of thing that millions of Europeans are extremely worried about right now.
Just check out what is happening in Spain….
After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.
“The macro situation in Spain is getting worse and worse,” Mr. Vildosola, 38, said last week just hours before boarding a plane to London with his wife and two small children. “There is just too much risk. Spain is going to be next after Greece, and I just don’t want to end up holding devalued pesetas.”
During the month of July alone, 94 billion dollars was pulled out of the Spanish banking system.
So that means that the equivalent of 7 percent of Spain’s GDP was withdrawn from Spanish banks during July.
That is a full-blown bank run, and Spain’s problems are just getting started.
Eventually these kinds of problems will show up in the United States as well.