These 5 red flags will give you anywhere from a few days to a few months of warning that things are about to change drastically…and well before those around you grasp the full extent of what is going on. This is hopefully a scenario that never happens as this will truly be the end of the world as you knew it.
So writes Marjory Wildcraft (disasterandemergencysurvival.com) in edited excerpts from her original article* entitled 5 Red Flags of Imminent Collapse: Be Aware of the Warning Signs.
The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and the FREE Market Intelligence Report newsletter (register here). The excerpts may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Wildcraft goes on to say in further edited, and perhaps paraphrased in some places, excerpts:
The indicators below will give you anywhere from a few days to a few months of warning that things are about to change drastically.
1) Interest rates on US Treasuries go up steeply, and/or suddenly
The definition of ‘defaulting’ on it’s debt means the U.S. Gov’t isn’t able to pay the interest on the almost $16 trillion it owes. Currently interest rates are at all-time lows…but, as interest rates rise, the interest expense will get bigger – and this will be very difficult for a Gov’t that is already deficit spending way beyond its means.
You want to keep an eye on the current rates on Treasuries for two reasons:
- Increasing rates will require a debt laden Gov’t to borrow more and will accelerate inflation and the date of collapse. This is a 6-12 month red flag. As of today, rates are slowly rising although they are still very low.
- A sudden and sustained spike in the interest rates indicates that there are fewer buyers of US debt. Without the ability to borrow more money or rollover the existing debt the US Gov’t will have to shut down or do desperate things like stealing from retirement plans or citizens bank accounts. [If, and when, this happens] get your money out of the banks or markets immediately. This is a very severe red flag indicating only weeks before major financial crisis and economic collapse.
Here and here are sites for monitoring Treasury interest rates. Also read Rapid Rise In Interest Rates Will Collapse U.S. Financial System – Here’s Why
2) Price of oil goes above $120/barrel
Essentially everything on this planet depends on oil; food, transportation, heating & cooling, and basically every consumer item you can think of. The world economy cannot sustain high prices of oil without collapsing. We saw that very clearly in 2008 when the price of oil hit a high of $146/barrel in June, and by September of that year we were in a full blown financial crisis…
If the price of light sweet crude oil [rises to, and] stays above $120/barrel, then you have only a few months before a major financial crisis unfolds. The financial crisis of 2008 was ‘solved’ by atrocious US Gov’t spending of more than a trillion dollars/year. That particular solution won’t be available to use in the next crisis. Does ‘the powers that be’ have another card up their sleeve for the next financial crisis? I don’t know, but I assume the answer is “no”.
Go here for prices on crude oil. Look on the left sidebar a bit lower on the page.
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3) Food Prices Predict Rioting And Civil Breakdown
There is a direct correlation between rioting and the cost of food. It is a very simple principle – when people can’t afford to eat, they revolt [as was the case] in 2010 when food prices soared and Mohamed Bouazizi set himself on fire in Tunisia in December of that….sparking a series of revolutions throughout the Arab world…[Such] revolutions are predictable as detailed in this article…
The level of hunger and desperation in the Untied States has increased in recent years indicated by the increasing numbers of people on food stamps and increasing strain on local food banks. According to www.FeedingAmerica.org 1 in 6 Americans are dealing with hunger…. We are approaching conditions for civil unrest and revolt here in the Untied States…
The UN FAO Food Price Index (see here) has climbed recently to within 10% of the February 2011 high of 237 and should have you on alert right now. Were the index to cross into the 240s and then stay above that level then the probability is very high you only have weeks or possibly months before widespread violence will break out world-wide.
4) Category 5 hurricane hits Texas City/ Houston area.
Approximately 30% of all US oil refining is done in a small area called Texas City near Houston. A category 5 hurricane… hitting these refineries would cripple diesel production and, without diesel, the vast just-in-time trucking system would come to a crawl. Food, fuel, and medicine are the three most crucial items trucked around in this county and all of those deliveries would be dramatically reduced drastically limiting their supply. Food inventoried in the grocery stores, for example, would only last about 4 days while delivery of everything else we commonly depend on would also come to a crawl. Prices would skyrocket…
Red Flag: if a category 5 hurricane hits the Houston area, you’ve only got days before rampant price increases and martial law breaks out.
We all have read analysis after analysis that just doesn’t make the cut but those of Dr. Nu Yu do. If you only have the money to subscribe to one investment newsletter then Nu Yu’s MarketSectorTA report is the one! Check it out.
5) EMP Disaster
EMP stands for electro-magnetic pulse and is a strong burst of energy that would have the net effect of destroying the electrical power grid. An EMP pulse would either be man made (i.e. terrorist induced) by exploding nuclear device(s) in the atmosphere above the U.S. or as the result of an intense solar flare from the sun. The net result would be the same - the loss of human life as high as 90% within a six month period according to U.S. Gov’t studies.
Should your electrical power be disrupted, the first thing to do is determine the extent of the outage. Hopefully it is simply a neighborhood, or perhaps city-wide, outage that is a temporary inconvenience.
- Try using your phone…and if it works the entire system has not been destroyed, although there is a small possibility the phone system might work for a while with the backup power they have.
- Turn on a radio and if you are getting radios stations with normal programming, then the disturbance is only minor and you can relax. If your radio doesn’t work at all, or you can’t get any radio stations across the dial, the condition is very grave.
- Keep an AM radio with charged batteries in a ‘Faraday cage’ that protects the electronics from EMP pulse. AM radio signals can travel extremely far and checking transmission from AM radio stations at night is a way of determining the range of destruction. This protocol will give you awareness of the situation hours and days before those around you grasp the full extent of what is going on. This is hopefully a scenario that never happens as this would truly be the end of the world as we knew it.
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
*http://disasterandemergencysurvival.com/archives/5-red-flags-of-imminent-collapse-be-aware-of-the-warning-signs (Copyright © 2013 Survival – All Rights Reserved)
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