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An Economic Earthquake Is Rumbling

Tyler Durden's picture




 

Submitted by Bob Livingston Via Personal Liberty Digest,

While the people sleep, an economic earthquake rumbles underneath. The day that they begin to feel the quake draws near.

History will record that in this decade more people will lose more money (forget about the trillions of dollars already lost) than at any time in our history, including during the Great Depression.

At the same time, a very small group has made and will make huge sums of money.

During the Y2K scare (a real hoax) many people stored food. Then, after Y2K, many people wanted to dump their cache; and some did.

We advised readers at the time to store food simply because of the crisis world we live in, but to store those foods that you could rotate and consume. Stored food is a hedge against inflation. It’s a hedge against natural disaster. It’s a hedge against economic collapse. It was our advice before, and it has been our advice since.

This advice is still valid. People who don’t have some stored food don’t realize how dependent they are on the system and government. Of course, the system was designed and created to make the people dependent on government. That makes them easier to control.

Many people have been in hard times since 2008, thanks to bursting housing and derivatives bubbles — both fueled by the Federal Reserve’s money printing and both predicted by meand by many other writers. For those of us who are not well-connected (those of us who are not in the 1 percent), there has been no relief. While the banksters got bailouts and Wall Street and the banksters benefited from the money printers, the middle class was impoverished. Savings were wiped out.

More working-age people than ever before are not working. More young workers than ever before are still living with their parents because they are either out of work or working at low-paying jobs. More people than ever before are on the government dole. Welfare pays more than most jobs. Retirement funds have been cashed out and spent on living expenses.

Wages have not kept up with inflation — not the phony inflation numbers peddled by the Fed and the propaganda media, but real inflation.

Printing-press money is fertile ground for expanding world crisis. Crisis is excellent cover for national and international chicanery. Boy, we have it!

How can anyone who is paying attention not recognize these tremors for what they are?

The default rate of companies with the lowest credit rating is at its highest level since 2013.

The auto loan debt bubble is at $900 billion, fueled by easy credit and long-term loans (more than 60 months on even used cars) that put the car buyer upside down as he drives off the lot and keeps him there. U.S. mortgage holders are carrying the most non-mortgage debt they’ve had in more than 10 years; 81 percent of that is automobile debt. Student-loan debt held by mortgage holders is the highest it’s ever been, with the average balance owed at nearly $35,000. Almost 5.7 million homeowners remain underwater on their mortgages.

We see bad inflation in the immediate future. Inflation in housing and consumer goods exceeds the Fed’s stated inflation goal of 2 percent, but Fed Chair Janet Yellen is talking about raising interest rates to kick-start more inflation. But a deflationary collapse has started in commodities, oil and gold. The dollar is rising. Today’s dollar index chart mirrors the dollar index chart pre-2008 collapse.

U.S. dollar assets are in a slow-motion crash. A financial asset is any paper asset, such as CDs, bank accounts, U.S. government bonds, etc. While we sleep, we are losing our savings. The U.S. stock market is in a QE-driven bubble that will soon burst.

Inflation and deflation are both forms of wealth destruction and impoverishment. Now think about this: The U.S. government has an official and stated policy of currency destruction through inflation. This is voluntary destruction of the currency. If instead we have deflation because of the collapse of debt, we still have currency destruction.

Besides, the U.S. dollar and U.S. financial assets pay almost no interest. Plus, it’s now official U.S. and World Bank policy to take your money in the event of another collapse as we saw in 2008. They call it a “bail in.” That is a code word for “what’s yours is really theirs.”

Wisdom dictates getting out of dollar assets ASAP! I long ago, way before the 2008 crash, cashed out my IRA and took the penalty. Many of the readers of my Letter did, too. It was well worth it. The government is also eyeballing your IRA, 401(k) and pension even now. Stealing it from you and replacing it with government paper would knock a big hole in the so-called “government debt” and prop up the system for a while longer.

The Greeks ignored the warning signs of their failing economy to their detriment. They were left standing in long lines, waiting to withdraw meager amounts of their own rationed cash, and diving in dumpsters for food because the shelves were bare.

Sooner or later, inflation skyrockets. Paper money economies always crash in the end, and their currencies end up worthless.

At some point, there will be a panic. Many people will realize that the debt pyramid is collapsing. Most who see what’s happening will not act. The herd instinct suggests that only a few will bail out in time; but the majority will act in panic, too late. We saw it in Greece. We saw it in Cyprus.

“Oh, yes,” you say. “It cannot happen here in the U.S.; or if it does, it won’t be for some time.” But it has awesome potential at any time. Why in the world take the chance? Prudent and wise people always plan for eventualities that the crowd can’t see.

In hyperinflation, there is actually a shortage of paper money. The paper money production cannot keep up with prices. Now that we have electronic money, prices and inflation can go higher than the mind can imagine. The Fed is manipulating the consumer price index to cover inflation. This allows them to maintain zero interest rates on U.S. debt, but it also means zero interest on savings.

Things are in place for huge inflation now. They think the people won’t know if they just kill the indicators. This is really a fantasy world. Since the money creators own the mass media, it seems that they can make the people believe anything, more fiction than fact.

When we tell you to buy gold and silver coins and gold stocks; to store some food, water and ammo; and to buy Swiss annuities in Swiss francs, we are talking preservation of your assets, as well as survival financially and physically.

Don’t trust the banks. Most are bankrupt. Don’t put your gold and silver coins in the safe deposit box. Keep them at home and keep them secret. Don’t keep more cash in the bank than is necessary to cover about a month’s worth of bills. This is a flashing red alert.

Many tens of thousands of people who have their trust in the government system (U.S. currency) are headed dead ahead into impoverishment.

 

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Tue, 08/11/2015 - 21:34 | 6416596 JC-BI
JC-BI's picture

Blame the Fed and its reckless policy of creating inflation by QE ad infinitum>>

https://biblicisminstitute.wordpress.com/2014/08/24/the-corrupt-federal-...

Tue, 08/11/2015 - 21:50 | 6416672 kliguy38
kliguy38's picture

Oh come on now......you can't blame the Fed. Look at Yellen.......she's the sharpest knife in the drawer.....she's got our back......

Tue, 08/11/2015 - 22:57 | 6416903 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

Yellen........sharpest knife..........our back.   That sounds like somebody's gonna make a killing.  No country for gentilemen.

Tue, 08/11/2015 - 23:49 | 6417053 Dead Canary
Dead Canary's picture

Y2K WAS NOT A HOAX YOU MORON. I and many others like me worked our ASSES off and what thanks do we get. A Time cover saying "Job well done". Fuck no. That won't sell as many magazines as "Was it all a hoax"

Bob Livingston, Fuck you.

Wed, 08/12/2015 - 01:05 | 6417206 Phoenix901210
Phoenix901210's picture

However, with this crash, a real crash. It doesn't matter how many people work their asses off. The whole thing is still going to come down. 

Wed, 08/12/2015 - 01:26 | 6417248 turnoffthewater
turnoffthewater's picture

When is a reserve currency not a reserve currency? When the debt is over 100%. Guess what? Now the USD is just a currency, no reserve left. May take time for other countries to wake up and understand simple math but that's it.

 

Wed, 08/12/2015 - 10:03 | 6418081 conscious being
conscious being's picture

The Reserve Currency status amounts to an imperial tax on the numerous vassal states. It this global tax, turning over goods and services for printable, unbacked fiat that makes the American Dream, wnat's left of it possible. Who will fund the EBT when the imperial tax, or levy, is gone?

Wed, 08/12/2015 - 08:11 | 6417670 Sturm und Drang
Sturm und Drang's picture

The underlying issue of a 2-digit vs. 4-digit year was very real. The possibility of some embedded systems misbehaving in dramatic fashion was blown out of proportion in most cases. The bulk of the doomsday happy crap that sprang up around Y2K was playing to people's ignorance and fears.

Some things never change.

Wed, 08/12/2015 - 00:23 | 6417144 Lets Buy The Dip
Lets Buy The Dip's picture

Yup. Old yellen schmells of gone of fish! She has not had a bath!!!

this Yuan valuation and the FED raising rates will make the market go to ZERO. Ummmm. yeah right!!

While everyone keep saying the market is topped out, here is one chart to look at ==> http://www.bit.ly/1fMcakI  this guy is a serious market analysts, and his calls on the Nasdaq are quite good. He called to BUY the ebola dip last year, and made off like a bandit. 

Janet yellen is basically scripted what to do!!! Its a scam guys and gals. Probably worst than Bernanke, cause I know how much ZH, loves that full-tard!!! haha. 

For now their game is get everyone short, TRAP THEM and then take us up higher!! Its been happening now for months on the market, and will it continue to happen!!! Of course, since 2009, that is the game their playing, and its making them a motsa. So I guess we have to learn to use their game against them. And think like they do. 

Tue, 08/11/2015 - 21:35 | 6416601 goldhedge
goldhedge's picture

Oh shit.

 

Tue, 08/11/2015 - 21:44 | 6416636 ZerOhead
ZerOhead's picture

No... don't shit.

They know exactly what they are doing and a systemic collapse (that I used to think was a foregone certainty) is simply not in the cards. Unless something entirely unexpected and uncontrollable happens that is....

Tue, 08/11/2015 - 22:22 | 6416779 Johnny Caine
Johnny Caine's picture

I don't think they have a clue what they are doing, that's why the one thing that keeps these POS up at night is Amendment number 2. 

Tue, 08/11/2015 - 22:35 | 6416817 gdogus erectus
gdogus erectus's picture

Sorry. That's the cover story. "They are just greedy." "They are just morons." Well, their useful idiot politicians and news anchors may be but don't think for a second that these fucks in charge (BIS, etc.) aren't following their plot laid bare in The Protocols of Zion. No, it's not a hoax publication.

Wed, 08/12/2015 - 01:03 | 6417203 Phoenix901210
Phoenix901210's picture

I don't agree.

 

I think even though they work together in a 'conpiracy' sort of way. If you act like first class assholes for a couple of years then you make enemies. Powerful enemies.

 

This is what has happened here. Other countries don't like US 'dollar reserve' system and then 'print ink on paper and expect real worth in return' system. Elements within and outside the country have rebelled against them, as is natural. And there are more good people on this planet than bad, meaning their game is coming to an end. They are working together, but in defense, they are not in control.

Tue, 08/11/2015 - 21:36 | 6416608 algol_dog
algol_dog's picture

Central banks are running out of real estate. 

Tue, 08/11/2015 - 21:37 | 6416615 logicalman
logicalman's picture

We can only hope that those responsible will be held to account.

Tue, 08/11/2015 - 21:39 | 6416620 NoDecaf
NoDecaf's picture

Relax everything is fine, they said we would all get to work by jetpack in the 1982 World's Fair.

Tue, 08/11/2015 - 21:42 | 6416634 RiotAct
RiotAct's picture

Stop

Tue, 08/11/2015 - 21:45 | 6416639 lasvegaspersona
lasvegaspersona's picture

I say store food you never expect to use. Sugar, TVP, oil, beans, rice  etc. It is cheaper and you will actually do it.

Rotation requires a life style change. Storing a few hunderd dollars and a cubic meter of basics is simple. Coffee (unroasted) keeps years.

The simpler the better.

I do use some stuff but in 10 years if all is OK I'll sell it to a pig farmer.

My way can feed  a person (2200 calories with 50 Grams protein) for about a buck a day.

Rotation of stock is tiresome and unless your wife is a good Mormon you probably won't do it after the first buy.

Tue, 08/11/2015 - 22:26 | 6416791 Bluntly Put
Bluntly Put's picture

Solar panels and a hyproponic setup would work as well. If you have land and can build a greenhouse, check out aquaponics.

Non GMO seeds can also be used as barter.

Tue, 08/11/2015 - 22:50 | 6416878 Lyman54
Lyman54's picture

One thing 90% of the preppers fail to mention is salt.  Unless you live near the ocean salt is very hard to obtain.

Wed, 08/12/2015 - 00:31 | 6417152 OldPhart
OldPhart's picture

Dry lakes out here are filled with it.  It's everywhere.

But the key thing in this area is having a shitload of water.

We got rid of the pool years ago.  Thinking of getting a 2000 gallon tank put inside the garage.  Talked to dad about solar for his well.  That is the only thing that seems to make sense.  We've (OldPhart and OldPhart'sWife) been scouters for over twenty years and have all kinds of dutch ovens, knives, fire-starters...and we have a fireplace.  We could manage without power, but would be draining the water heater and toilet tanks pretty quick.

Probably should get another two cords of wood, too, along with a spare axe.  I imagine Home Depot and Lowe's will be pretty well looted when I next need an axe.

Wed, 08/12/2015 - 05:35 | 6417424 SmedleyButlersGhost
SmedleyButlersGhost's picture

Beer. Cost per 12 oz glass - ¢20 for extract brewing, ¢10 for all grain. Set up - $100, $200 for all grain. Key is to keg it. Rotating the Stock is a great time

Wed, 08/12/2015 - 01:09 | 6417214 Phoenix901210
Phoenix901210's picture

Thanks, I do live near the ocean but there is no need to make things difficult for myself. I'll pick up salt.

Wed, 08/12/2015 - 08:24 | 6417708 explosivo
explosivo's picture

My mother-in-law survived the collapse of the Soviet Union. I asked her what we should stock in preparation for the collapse of the American empire and she said, "you always need salt and soap".

Wed, 08/12/2015 - 01:21 | 6417238 Phoenix901210
Phoenix901210's picture

I don't know how you would be expected to cook rice if the power went down. I do have some. And some but not many cooking gas doo dabs. I'm prepping for utilities going down as well.

 

With v. limited funds prepping is not that easy.

Thu, 08/13/2015 - 09:56 | 6421959 sharonsj
sharonsj's picture

Phoenix, get a Kelly Kettle.  It's a small portable stove that will light using anything: paper, grass, fir cones, etc.  Make sure you have alternative power and fuel like solar batteries and propane heaters.  Camp stoves and lanterns are good too.  Whether or not the economy tanks, you'll still be prepared for emergencies.

Tue, 08/11/2015 - 21:44 | 6416641 Grandad Grumps
Grandad Grumps's picture

Maybe it is just a head-fake designed to steal money from those who do not drink the Kool-aid.

Tue, 08/11/2015 - 21:46 | 6416650 yogibear
yogibear's picture

It's why there's a 99% chance the Federal Reserve will do QE4, QE5 and keep going until there is a currency crisis and all faith is lost in the dollar.

Perter Schiff and Richard Duncan are sure there will be continued QE or game over. 

It's 0% interest and QE until a collapse.

Tue, 08/11/2015 - 21:46 | 6416656 rsnoble
rsnoble's picture

Having been a student of the 'crash' for several years now, when shit blows sky high it's probably just going to be another stupid fucking day around this joint.  By joint I mean the planet.

 

"Many tens of thousands of people who have their trust in the government system (U.S. currency) are headed dead ahead into impoverishment."

LOL, that wasn't thought out.  What is there, 330 million roughly?  I would estimate 'tens of thousands' to be app. 300 million plus.  Meaning the remaining that think they are safe are going to have bullseyes on them.  Good luck, you're going to need it.  In fact, I estimate luck to be 90%+ of your way out of the mess.

Tue, 08/11/2015 - 22:26 | 6416792 djsmps
djsmps's picture

Thank you for your insight, Mr. Bernanke.

Wed, 08/12/2015 - 00:38 | 6417162 OldPhart
OldPhart's picture

As things shrink, you consolidate and fall back, looking for others similar to pool resources with.  Not all of us will have 100% of what we need, but those of us that come together and continue to consolidate and fall back, may not be in such dire straits.  Some have planned, most have practiced, and having a larger group at the end provides sleep rotation while guarding the rest.

I may sound like a lone wolf sometimes, but I'm not.  I recognize the value in being part of a much larger group of similar thinking people.  In my area it won't be too hard to find them.  Most of the aware already know where to go.

Wed, 08/12/2015 - 01:03 | 6417204 Nobody For President
Nobody For President's picture

Yep OP, we think a lot alike. I got stores, PMs, and lead - gravity water and lots of solar (off the grid for 40 years), but most of all I got a community, and good neighbors. In the end, that will matter most.

Tue, 08/11/2015 - 21:49 | 6416667 q99x2
q99x2's picture

There were a lot of good artworks and music created during wars, famines and depressions. That's what I plan on doing back on Q99X2.

Tue, 08/11/2015 - 22:18 | 6416768 BlueStreet
BlueStreet's picture

Thinking about switching to a vegan diet so I live long enough and don't risk missing the show, it's gonna be one hell of one. 

Tue, 08/11/2015 - 22:53 | 6416884 CHC
CHC's picture

Fuck it.

Tue, 08/11/2015 - 23:24 | 6416992 MD
MD's picture

This article is alarmist crap.  No charts, statistics, numbers, nothing.  Just some hand waving that we'll be like Greece, "just you wait!"

I agree that we're likely to hit a recession soon, but let's contain ourselves here.  Is there any indication that it's going to be the freakin' end of the world as we know it?

Wed, 08/12/2015 - 01:15 | 6417225 Phoenix901210
Phoenix901210's picture

$54 Trillion of derivatives from Deutsche banks. Banks firing. Possibility of 'bail in's laws already passed for that. If they are keeping money from depositors what if they try that with China? Whom if they stopped propping up the US, the US would fall.

These people are the type that paedophile young children (Important policy makers in government and intelligence services), and have already let thousands die through law, war and economic deprivation. Think they won't add a few more to their casualty list?

Tue, 08/11/2015 - 23:30 | 6417008 TuPhat
TuPhat's picture

Stored food is not a hedge against inflation.  The loss of nutritional value due to storage is quite likely more than the inflation rate.  Stored food is a hedge against hunger, nothing else.  Guns and ammo for protection and for the rest there is gold.  Good article but not the best reasoning.

Tue, 08/11/2015 - 23:43 | 6417047 greatgiantsicko
greatgiantsicko's picture

"Wisdom dictates getting out of dollar assets ASAP! I long ago, way before the 2008 crash, cashed out my IRA and took the penalty. "  how's that working out for you in 2015?  what a bunch of paranoid bullsh!+.

 

i'd love to see some of these people try to manage a system as complex as the one we live under.  they'd turn it into the Nazi hellhole they complain about all of the time.  the world is a complex place and easy answers (common sense) do not work.  you probably can't get 30 people in a room to agree on anything, let alone 300 million.  stop complaining, wipe the tears from your crying eyes and help solve complex problems!

Wed, 08/12/2015 - 00:27 | 6417148 zstard
zstard's picture

8 lazy days...

Wed, 08/12/2015 - 00:43 | 6417174 OldPhart
OldPhart's picture

I've personally gotten hundreds to agree to a number of tasks over the years, from fund-raising to cooking.  I know many others that have done similar.  You would be surprised at the response one gets from a recognized, common-cause.  Everyone pitches in when they see direct results that directly affect them.

Wed, 08/12/2015 - 01:18 | 6417232 Phoenix901210
Phoenix901210's picture

Makes up imaginary abstract crime for person he is targeting! Declares the person stupid because of abstract crime.

 

Thinks he's intelligent for the comment.

Tue, 08/11/2015 - 23:46 | 6417054 Bitcoin Meiser
Bitcoin Meiser's picture

Get into Bitcoin now as soon as possible. Buy some bitcoins. At this very moment there is a bitcoin buying spree in China.

THIS IS YOUR LAST WARNING.

Tue, 08/11/2015 - 23:54 | 6417073 Bitcoin Meiser
Bitcoin Meiser's picture

QE4 is coming.

Wed, 08/12/2015 - 00:15 | 6417113 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Like I'm always saying.....

 

W E L C O M E  to the  N E C R O P O L I S,  future    Z O M B I E S.

Wed, 08/12/2015 - 05:02 | 6417409 erk
erk's picture

Another buy gold article.

Wed, 08/12/2015 - 06:18 | 6417453 Raoul_Luke
Raoul_Luke's picture

I was a complete naysayer on Y2K and everyone looked at me like I had two heads for saying it would not create anything even approaching the calamity that was being predicted at the time.  I take the same view of these "preppers" for "imminent" economic collapse.  That. Ain't. Gonna. Happen.  It is just a long slow decline and we're in the early stages.  By the time we become Spain, let alone Greece, the middle class in China and India will have taken over as the ultra producer/consumers that we used to be (and the Europeans before us).  It will be a very well managed decline.  After all, we are civilized people...

Wed, 08/12/2015 - 08:34 | 6417738 Last of the Mid...
Last of the Middle Class's picture

Who gets the money and who doesn't. Defines the have's and the have not's. 200 years of a capitalistic society destroyed in one presidency. Nice, Obama and Fed. You fucking greedy nitwits.

Wed, 08/12/2015 - 08:35 | 6417744 Last of the Mid...
Last of the Middle Class's picture

more like QE4 is cuming.

Wed, 08/12/2015 - 11:17 | 6418414 sam site
sam site's picture

You claim, "deflationary collapse has started in commodities, oil and gold". 

The gold price is lower because of Fed paper-gold suppression - not because of low demand as in other commodities.

 

Shortages are expected in gold & silver this fall because of the stampede.

Wed, 08/12/2015 - 12:55 | 6418818 smacker
smacker's picture

I have never believed that interest rates would be raised. To me, it was just another load of bull to fool people into believing that economic recovery was actually happening. It isn't. And each time they get close to the moment when they said rates would be raised, it gets delayed. Again.

QE and ZIRP, then NIRP will continue.

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