An Economic Earthquake Is Rumbling

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.