Our civilization would not be able to handle such a transition from an expansionary credit based economy where goods and services were readily available into a paradigm of credit contraction, supply shortages and destitution and this is what is coming. There is no way to prevent it – only to defer it until a later date – and that day will soon be upon us. Words: 590
So says Mac Slavo (www.SHTFPlan.com) in edited excerpts from his original article*.
[Lorimer Wilson, editor of www.munKNEE.com and www.FinancialArticleSummariesToday.com has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Slavo goes on to say, in part:
The single most important factor responsible for fueling the last several decades of economic growth has been credit expansion. Whether it’s central banks lending money to large financial institutions, or private banks dispersing funds to businesses and individuals, our lifestyles simply would not have been made possible without it…We’ve built huge homes, enjoyed healthy diets, taken luxurious vacations and even exported our menial jobs…In the process we’ve expanded our national debt to unprecedented levels…and, by all accounts, we now live in a system built on nothing more than a promise to repay what we’ve borrowed.
This reverse trickle-down economics has left everyone bloated with debt, including the government as a whole, as well as the individual American who has bought his house, car, furnishings and overall lifestyle by taking on insurmountable levels of debt.
In 2007 we began to see cracks in this supposedly stable economic model….[and now] while most refuse to admit it, the evidence is clear. Our system of “creditism,” as described by The New Great Depression author Richard Duncan, is dependent on monetary intervention and expansion by our central bank. Unless the Federal Reserve continues to artificially expand credit and print more money, the system will collapse in on itself – just as it almost did in 2008.
At some point, says Duncan, the expansion simply won’t be possible anymore. How bad can it get once that happens? According to Duncan,…if credit now begins to contract there is a very real danger that we will collapse into a new great depression [saying:]
“As long as credit grows rapidly, that makes the economy grow. However, the day always comes when credit can’t expand any further and then the new depression begins….so the policy is to ensure that credit continues to expand….that’s what government debt is doing; increasing government debt is making total debt grow, otherwise we would have already collapsed into a debt deflation death spiral….If this credit bubble pops the depression is going to be so severe that I honestly don’t think our civilization can survive it.”
When someone loses their income stream…they are unable to pay their mortgage, put food on the table or live any semblance of the life they came to know while they were gainfully employed. Our government, like any individual American, also has an income stream. That income is based on taxes, and in recent years, overwhelming borrowing.
In the near future we will reach a point where we’ve taken on so much debt that our creditors will no longer lend us money. Because tax revenues are already dropping due to negative economic growth, the government will essentially be left with no income. Like someone who loses their job, they will have no way of meeting their monthly obligations. They won’t be able to provide nutritional assistance, there will be no health care, and social security benefits will stop being distributed….
One way or another, life in America as we have come to know it will take a drastic turn for the worse and when civilizations transform in this way it often results in violence, starvation and bloodshed. Prepare for it, because it will be on our doorsteps soon enough.
[Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.]
*http://www.shtfplan.com/headline-news/very-real-danger-of-collapse-could-be-so-severe-i-dont-think-our-civilization-could-survive-it_07172012 (To access the above article please copy the URL and paste it into your browser.)
The International Monetary Fund (IMF) painted a stark picture of the global economy this week slashing the outlook for world growth while forecasting a damaging recession in Europe that will leave no country, including Canada and the U.S., unscathed. The report stated that financial conditions have deteriorated, growth prospects have dimmed, and downside risks have escalated and, as such, policymakers must immediately move forward together to save the world economy from falling into a 1930s-style death spiral because the longer corrective action is put off the worse it will actually get. Words: 640
Decisive policies must be urgently put in place to stop the euro area sovereign debt crisis from spreading and to put weakening global activity back on track. [If not we can expect to see a] massive escalation in economic disruption, an increase in the risk of a credit crunch [and] the global economy tipping into a recession. Words: 834
The almost universal consensus, even among mainstream orthodox economists, is pessimistic regarding the world economy. Even though their predictions understate the scope and depth of the crises, there are powerful reasons to believe that we are heading toward a steeper decline than what was experienced during the Great Recession of 2008 – 2009…[Let me explain.] Words: 1656
In light of the unfolding global sovereign debt fiasco that has turned out to be less of a waterfall and more of an avalanche [than anticipated I present below a description of the 5 stages of collapse and discuss our preparedness. If you haven’t read it yet, perhaps you should.] It has been read by 70,000+ people so far – and is still being read by an average of 1,500 people each month – on my site alone. Words: 2525
The smart people are (buying gold) and more and more people are waking up to it. So the people that are going to survive and thrive are going to be the ones that are prepared, the ones that are going to see history before it happens and get ready for it and there are very few.
George Soros…is more concerned with surviving than staying rich…He doesn’t just mean it’s time to protect your assets. He means it’s time to stave off disaster. As he sees it, the world faces one of the most dangerous periods of modern history—a period of “evil.” Europe is confronting a descent into chaos and conflict. In America he predicts riots on the streets that will lead to a brutal clampdown that will dramatically curtail civil liberties. The global economic system could even collapse altogether. [Perhaps] we should be, too, [but as] we have often explained, [such comments ar nothing more than] the fear-based promotions of the power elite to frighten the middle classes into giving up power and wealth to globalist institutions. Let us explain.
I think the U.S. government and our central bank has a tremendously transparent view of what is coming down the road in terms of financial distress….I believe the evidence [I present below] shows that they are preparing for this eventual crisis in a command and control fashion, without alerting the public to the coming implosion. The most immediate trigger event is the looming peril of a collapsing economy followed by inevitable civil unrest. I believe they will use the despair that flows forth from the fiscal wreckage as an excuse to institute martial law. Call it “crazy”. Call it “conspiracy theory”. Call it “coincidence”. Call it “fear mongering”. Call it whatever you like but I find it far more insane to shrug off the strange behavior of our power structure, and simply hope that it’s all irrelevant to the future. [Once I have put forth my evidence and explained its implications in this article I think you will agree.]
The Federal government is gearing up for unprecedented social unrest (worse than Greece or Spain) when Washington is forced to impose “austerity” plans next year… [which will be deemed absolutely necessary to avoid] runaway inflation [that would otherwise occur] to pay for the country’s costly welfare programs like Social Security, Medicare, Medicaid, Food Stamps and massive unfunded liabilities. [Below are the preparations presently underway.] Words: 500
Get ready…Save some cash, load up with gold and silver, and be patient…Start by buying top-grade dividend-paying stocks and gold on dips or corrections, and hold your gold. This era will see the catastrophic collapse of all fiat money. Gold should skyrocket. Get ready for crime and violence…
You think the problems are bad now? You wait until we don’t have any more credit. You wait until the currency is collapsing. You wait until interest rates are going through the roof and inflation is going through the roof. It’s not going to be a pretty picture. There will be social unrest. [See below for the link to the interview.] Words: 477
The outcome of the election of 2012 will [only] determine the rate of speed at which we approach the [financial] cliff [because] neither political alternative is willing to change course, to steer away from the cliff. The cliff is so high that whether we go over it at 200 mph (Obama) or whether we merely slip over the edge (Romney), the end result is the same — fatal for the economy and perhaps our entire political system. It is the fall that will kill us. [This article explains why that is going to be the case.] Words: 1135
The deficits aren’t going to stop anytime soon. The debt mountain will keep growing…Obviously, the debt can’t keep growing faster than the economy forever, but the people in charge do seem determined to find out just how far they can push things….The only way for the politicians to buy time will be through price inflation, to reduce the real burden of the debt, and whether they admit it or not, inflation is what they will be praying for….[and] the Federal Reserve will hear their prayer. When will the economy reach the wall toward which it is headed? Not soon, I believe, but in the meantime there will be plenty of excitement. [Let me explain what I expect to unfold.] Words: 1833
Why read: It is foolish not to consider the possibility of depression, particularly in the face of the preponderance of commentary over the past many months that rampant inflation is on the horizon. [Here I review, analyze and comment on one such article on that possibility.] Words: 697
One of the problems with the debate over the “national debt” is that there’s no generally agreed upon definition of that term. Is it what the federal government owes, or what it owes foreigners, or what the whole country, private and public sector together, owes? Does it include off-balance-sheet items and contingent liabilities? There’s a hundred-trillion dollar gap between lowest and highest on this spectrum, which allows each commentator to confuse the rest of us by picking the measure that best suits their point of view. [Let’s try to decipher the true state of the nation.] Words: 1468
“An essential point in the social philosophy of interventionism is the existence of an inexhaustible fund which can be squeezed forever. The whole system of interventionism collapses when this fountain is drained off: The Santa Claus principle liquidates itself.” [This article discusses the reality of the current economic crisis and] what is required to revive the economy. Words: 1666
With the U.S. election just months off, political pressures will mount to favor fiscal stimulus measures instead of restraint. Such action can only accelerate higher domestic inflation and intensified dollar debasement culminating in a Great Collapse – a hyperinflationary great depression – by 2014. [Let me explain why that is the inevitable outcome.] Words: 2766
Why are both debtors and creditors willing to build a status quo of massive unprecedented debt? [After all, the delusions of] creditors that debt is wealth and should never be liquidated, and of debtors that debt is an easy or free lunch have been smashed by the juggernaut of history many times before…[and] I think they will soon be smashed again. [Let me explain.] Words: 1150
…The US Government and its catastrophic fiscal morass are now viewed by the world as a ‘safe haven’. This would easily qualify for a comedy shtick if it weren’t so serious….[but] the establishment is thrilled with these developments because it helps maintain the status quo of the dollar standard era. However, there are some serious ramifications that few are paying attention to and are getting almost zero coverage from traditional media. [Let me explain what they are.] Words: 1150
With 10 year Treasuries yielding 1.6% in the United States, some argue that higher deficits are warranted. As the discussion below shows, the logic behind that view is fundamentally flawed, if not reckless. Words: 1238
Dark…financial and economic clouds are, it seems, rolling in from every direction: the eurozone, the United States, China, and elsewhere. Indeed, the global economy in 2013 could be a very difficult environment in which to find shelter.