Over 200 T in Unfunded Treats: Death Spiral on Horizon?

[Kirk Freeman]

An unsettling article regarding Richard Duncan's prognosis of an economic death spiral regarding the United States' Welfare State.

Economist Richard Duncan: Civilization May Not Survive 'Death Spiral' - Money Morning

 

[Carmelbythecorn]

We will be forced to learn that government will not and can not take care of us. Unfortunately this realization will come with great pain, much death and upheaval.

 

[IndyDave1776]

If this must be presented as a question, it should be "Is there any way outside the realm of complete fantasy that these unfunded gifts will NOT cause catastrophic results?"

 

[mrjarrell]

It's the warfare/welfare state, Kirk. They go hand in hand and will be the death of us.

 

[hornadylnl]

Romney is just the man to fix it.

 

[Bunnykid68]

Romney is just the man to fix it.

 

[LEaSH]

Bless you, hornadylol.

 

[Lex Concord]

Bless you, hornadylol.

Did he sneeze?

 

[LEaSH]

Made me chuckle.

What is apparent to me - what so many are saying for no gain of their own, is that we are going into some really bad times (to say the least).

Even if the author of this piece is exaggerating, there are 50 more just like him that must be exaggerating, too.

This breakdown is intentional.

I really believe it could be a game, kind of
'Hot Potato-esque", when everthing stops working, that guy in charge of the guy everybody thinks is in charge gets to rule with an iron fist without resistance.

 

[Lex Concord]

If this must be presented as a question, it should be "Is there any way outside the realm of complete fantasy that these unfunded gifts will NOT cause catastrophic results?"

Yes. If Ron Paul and a sympathetic congress are elec... oh, wait, you said outside the realm of complete fantasy.

We are in this situation because Dr. Paul, and the few others like him over the last few decades, have been successfully branded as Quixotic kooks. In Dr. Paul's case, much of the reason is because of his stances on foreign policy.

If this goes down anywhere near what these folks are predicting our best tough foreign policy will be having some guards at our border crossing checkpoints, assuming the union could be maintained.

Old kook indeed.

 

[Lex Concord]

Made me chuckle.

What is apparent to me - what so many are saying for no gain of their own, is that we are going into some really bad times (to say the least).

Even if the author of this piece is exaggerating, there are 50 more just like him that must be exaggerating, too.

This breakdown is intentional.

I really believe it could be a game, kind of
'Hot Potato-esque", when everthing stops working, that guy in charge of the guy everybody thinks is in charge gets to rule with an iron fist without resistance.

Wouldn't be surprised.

 

[buckstopshere]

Made me chuckle.

What is apparent to me - what so many are saying for no gain of their own, is that we are going into some really bad times (to say the least).

Even if the author of this piece is exaggerating, there are 50 more just like him that must be exaggerating, too.

This breakdown is intentional.

I really believe it could be a game, kind of
'Hot Potato-esque", when everthing stops working, that guy in charge of the guy everybody thinks is in charge gets to rule with an iron fist without resistance.

Agreed. Seems that people dismiss the .gov and the banking elite as idiots for their policy. Truth is, these are very intelligent men and women, in most cases, that are doing exactly what they want to do.

 

[CarmelHP]

Agreed. Seems that people dismiss the .gov and the banking elite as idiots for their policy. Truth is, these are very intelligent men and women, in most cases, that are doing exactly what they want to do.

Major upheavals have of way of being unpredictable affairs. Anyone manipulating events may find themselves dangling at ends of ropes or up against a pock-marked wall.

 

[HeadlessRoland]

Argentina.
Zimbabwe.
Greece.

... America.

 

[NYFelon]

Argentina.
Zimbabwe.
Greece.

... America.

But..but..that could never happen here.

 

[El-Cigarro]

Major upheavals have of way of being unpredictable affairs. Anyone manipulating events may find themselves dangling at ends of ropes or up against a pock-marked wall.

X-2 ! It's happened before!

 

[Carmelbythecorn]

So...agreement on the article, and the fact that tough times are coming. What to do to protect one's financial assets? Ideas anyone would like to share? Radical ideas anyone might like to share?

I'm talking about ideas to protect retirement, savings, etc., not advocating insurrection (just for clarity sake).

 

[foszoe]

So...agreement on the article, and the fact that tough times are coming. What to do to protect one's financial assets? Ideas anyone would like to share? Radical ideas anyone might like to share?

I'm talking about ideas to protect retirement, savings, etc., not advocating insurrection (just for clarity sake).

Pay off everything you "own" as soon as possible.

Live where you can sink a well for water supply.

Live where you can plant a garden for your own food, perhaps this would be a community garden effort.

Start supporting local food producers.

To sum up all of the above, get out of urbanized areas and settle near a small town so you can have some measure of self reliance.

Know some marketable skills, in a true collapse, local economies will be what sustains all of us and bartering will become a great asset.

Buy some gold or silver.

Set some trigger points you are comfortable with on your 401k where you will take out your money from stocks.

Set a lower trigger point where you "borrow" out of the 401k. That preserves some capital in your hands instead of on paper somewhere. If you are wrong, at least you are paying back yourself with interest while buying on the way down and you can always pay off the loan with the cash in your hand at any time.

 

[cobber]

Pay off everything you "own" as soon as possible.

[snip]

Set a lower trigger point where you "borrow" out of the 401k. That preserves some capital in your hands instead of on paper somewhere. If you are wrong, at least you are paying back yourself with interest while buying on the way down and you can always pay off the loan with the cash in your hand at any time.

Here's what I don't get. If the SHTF big time, is it really going to matter if you have title free and clear to anything? The whole economy is going to be in the ****ter. Who exactly is going to repossess your stuff?

As to cash in hand, when the banks go under and lock the doors, how long are bits of green paper going to have any value at all? Even if we had the gold standard, you would still have to physically redeem the gold.

Even precious metals are going to represent a promise of future value. You can't eat the stuff, or make things out of it. It's only going to be worth something if people agree. And if you were sitting on a pile of goodies in the SHTF scenario, would you give it away for some shiny metal, or glass beads or wampum?

As for anything on the books, it will just be gone, a fond (or not so fond) memory to share with the grandkids.

 

[foszoe]

Here's what I don't get. If the SHTF big time, is it really going to matter if you have title free and clear to anything? The whole economy is going to be in the ****ter. Who exactly is going to repossess your stuff?

As to cash in hand, when the banks go under and lock the doors, how long are bits of green paper going to have any value at all? Even if we had the gold standard, you would still have to physically redeem the gold.

Even precious metals are going to represent a promise of future value. You can't eat the stuff, or make things out of it. It's only going to be worth something if people agree. And if you were sitting on a pile of goodies in the SHTF scenario, would you give it away for some shiny metal, or glass beads or wampum?

As for anything on the books, it will just be gone, a fond (or not so fond) memory to share with the grandkids.

I guess it depends on what SHTF scenario one is considering as the most likely option. The article seemed to be one indicating rampant cost increases and such but not a total complete collapse (but I did read it quickly and could be mistaken) Land titles have been around a lot longer than our economic system and in more remote areas, I think they will hold sway. The same with gold. It has had value for a long time preceding our system. Silver less so but its more affordable. I don't really ascribe to the roving hoardes models of collapse but rather the runaway cost of acquiring the basic necessities.

I don't think everyone will go broke. I imagine there will be those with plenty of capital, and they will probably be affiliated with banks and they will come after their stuff sooner or later.