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Jim Willie and 20 Reasons Why Quitting Prepping After September Was Wrong
LET ME START BY GETTING YOUR UNDIVIDED ATTENTION, THEN WE’LL LOOK AT DETAILS.
I PRAY YOU’LL SEND THIS POST VIRAL SO LOVED ONES WILL BEGIN TO PREPARE!!!!
According to a CNN Money report, the United States lost roughly 23% of its TOTAL net worth in the financial crash of 2008. You might remember the crash? The whole thing was Bush’s fault if you don’t remember. Obama says so. Anyway, keep in mind that figure includes the top 1% of Americans we hear so much about, so a more accurate number to base things on would be the total losses experienced by the “average” diversified stock portfolio. Virtually EVERY person I know would have given a limb to have limited their losses to a mere 23%, so we really can’t count the uber rich with the rest of us. In 2008, the average diversified mutual fund lost close to 40% in value.
Almost HALF of the wealth of those “INVESTED” in American equities just evaporated. To wrap your head around how truly devastating the 2008 crash was, please let me remind you that it is by NO MEANS accurate to say the “average” family is heavily invested in diversified stock portfolios. Most are in debt up to their eyeballs, living beyond their means, and surviving check-to-check. The “average” HOUSEHOLD income in 2008, for an entire working family, was only slightly over $50,000, so I think it’s safe to say, many of THOSE families were not making ANY investments into the “average” diversified stock portfolio. My point is this: Most every day Americans lost close to 50% or more of their entire life savings or multi-generational inheritances in 2008! You think that sounds bad?
TO PUT THE COMING FINANCIAL COLLAPSE INTO SOME PERSPECTIVE, THE CURRENT GLOBAL DERIVATIVE BUBBLE IS NOW 20% BIGGER THAN IT WAS IN 2008.
Do I have your attention? Good, because the rest of the world is in deep financial trouble too. People need to be preparing for a global depression of biblical proportions. Why? The U.S. and China lead the global economy, and both our countries are in DEEP trouble, which I’ve covered ad nauseam for the last two years and can be seen in the links below. Both economies are artificially propped up with low interest rates which have led to massive financial bubbles expanding like we had in 2008, only as I said above, this time it’s worse. Peter Schiff likes to joke that our financial bubbles are now actively searching for pins, because there is so only so much artificial stimulus any economy can take.
In addition to the massive financial bubbles in the world’s two largest economies, there is also a growing crisis with respect to Emerging Market Debts in what once looked like promising young economic nations. In the following video, Jim Willie discusses why everyone who was preparing for a total economic collapse, or for the end of the world back in the month of September was NOT wrong to do so; they were merely premature in their estimates for the timeframe. Jim explains that it’s not just the U.S. that has massive debt problems. All the debt in emerging market nations was estimated at around $8 TRILLION DOLLARS not that long ago, and already that same emerging market debt is in excess of $15 TRILLION DOLLARS. To fully grasp the weight of how that impacts us here in the U.S., and to put into perspective how bad the coming global collapse will be, Jim explains that for those emerging nations, in addition to being in their economic infancy making them fragile to being with, their ability to repay their skyrocketing debt is dependent on how their currency is doing in terms of THEIR local market economy.
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Listen, everyone knows the U.S. is by far the world’s largest debtor, but don’t expect the U.S. to default or to admit we need to restructure our debt. Oh no. No way! Not that. Washington is WAY too corrupt and stubborn for that, and the average American is FAR too financially illiterate to understand what is really happening. Americans who want to ACT like they have a clue what is happening will parrot television talking heads and say things like, ”Default,” that CANNOT happen! ANYTHING but that. Then ask them why? CRICKETS.
For simplicity sake, imagine if your household was 75k in credit card debt, you were robbing Peter to pay Paul every month, and still your balance kept rising. Would it make more sense to keep lying and putting up a front to keep up with the Jones’, or would it make more sense to “Default,” and declare bankruptcy? You may be surprised to learn it’s not entirely uncommon to see a person’s credit go UP immediately after declaring bankruptcy, because the playing field has been leveled. Creditors are no longer playing guessing games, and each creditor learns what it will or won’t be receiving from you as part of the bankruptcy or settlement, and then they can plan accordingly. Now imagine that on a much more grand scale.
As for the United States economic condition, politicians in D.C. care more these days about jockeying for position in the blame game for the purposes of the next election than they care about actually fixing America’s problems, or we never would have allowed these bubbles to get this big… again. Instead of the U.S. doing what we should, expect emerging market nations to do it. Very soon, they will begin defaulting on their debts to Western Banks, because for them it’s the more intelligent thing to do. Don’t expect to hear THAT from any of television’s talking heads. Pundits will actually look down when talking about nations that default, not even realizing those nations are on the path to TRUE economic recovery… the kind of recovery that actually DOES produce jobs,,. not just an artificially inflated stock market. Then, when that begins to occur, Western banks will be up to their eyeballs in defaults with countries looking to restructure. I think we all know how this ends…
As part of that restructuring you can count on the emerging market nations not only restructuring their debts in amounts at least equal to what their currency was devalued by (in local economic terms), but they will also demand that the debt be removed from the U.S. Dollar denomination, because the world has seen this enough times now. The U.S. has refuse to learn ANYTHING from our previous monetary mistakes, and for our willful ignorance, the rest of the world is going to deliver us back to the stone age when the Dollar is stripped of the Global Reserve Status. As has been explained many times before, that is not a process that happens overnight, but it is one that has been WELL underway for some time now. The removal of emerging market nation debt from a Dollar denomination will act as the final nail in the coffin for both the United States and the Dollar.
ALL HELL WILL BREAK LOSE AT THAT POINT!
JIM GOES ON TO TALK ABOUT GOLD AND SILVER SHORTAGES… BUT FOLKS SHOULD DIGEST ALL OF WHAT’S ABOVE BEFORE GETTING TOO OVERWHELMED!
MANY PEOPLE WERE EXPECTING EITHER A FINANCIAL COLLAPSE, OR EVEN THE END OF THE WORLD IN SEPTEMBER, AND WHEN IT NEVER CAME, SOME PEOPLE STOPPED PREPPING ENTIRELY. AS MICHAEL SNYDER EXPLAINS BELOW, THERE ARE LEAST 20 REASONS WHY YOU BETTER GET BACK TO IT…. NOW!
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Millions of Americans were gearing up for some huge event to happen in September, but the world didn’t end and now many of them have given up entirely on prepping. Of course the truth is that some absolutely earth-shattering events did take place last month, but because September did not play out exactly as some were anticipating, a lot of people feel very let down.
My contacts in the emergency food industry tell me that sales have dropped off dramatically, and yesterday I was told by someone that I trust that the same is true for those that sell precious metals. But this should not be happening. What we witnessed in August and September was just the warm up act, and all of the numbers are absolutely screaming at us that we are right on track for a major global crisis.
In this article I am going to focus on economic and financial issues, but there are so many other things going on around the planet right now that threaten to throw our world into turmoil. Anyone who thinks that it is safe to “relax” now is simply not paying attention. The following are 20 reasons why all the people that quit prepping after September are dead wrong…
#1 U.S. exports are down 11 percent for the year so far. The only other times they have fallen this dramatically since the turn of the century were during the last two recessions.
#2 Since March, the amount of stuff being shipped by truck, rail and air inside the United States has been falling every single month on a year-over-year basis. This is a clear indication that economic activity is really slowing down.
#3 Wholesale sales in the U.S. have fallen to the lowest level since the last recession.
#4 The inventory to sales ratio has risen to the highest level since the last recession. This means that there is a whole lot of unsold inventory that is just sitting around out there and not selling.
#5 Industrial production declined for five months in a row during the first half of 2015. That is something that has never happened outside of a recession.
#6 Wal-Mart is projecting that its earnings may fall by as much as 12 percent during the next fiscal year.
#7 Don’t expect U.S. consumers to rush in and save the day. According to brand new numbers from the Social Security Administration, 51 percent of all American workers make less than $30,000 a year.
#8 And remember, there are 102.6 million working age Americans that do not even have a job of any kind.
#9 According to Challenger Gray, layoffs at major firms have risen to the highest level that we have witnessed since 2009.
#10 The number of job openings in the United States declined by 5.3 percent during the month of August. That was a huge plunge for just one month.
#11 According to British banking giant HSBC, the world is already in a “dollar recession“. Global trade has fallen 8.4 percent so far this year, and global GDP expressed in U.S. dollars is down 3.4 percent.
#12 In September, Chinese exports were down 3.7 percent compared to one year ago, and Chinese imports were down a staggering 20.4 percent compared to a year ago.
#13 During the month of August, we witnessed the 8th largest single-day stock market crash in U.S. history on a point basis and the 10th largest single-day stock market crash in U.S. history on a point basis. It was the first time ever that the Dow Jones Industrial Average declined by more than 500 points on two consecutive trading days.
#14 On August 24th, we also witnessed the greatest intraday stock market point swing of all time. From the high point of the day to the low point of the day, the Dow Jones Industrial Average plummeted 1,089 points before recovering.
You’ll be kicking yourself for not picking up silver at these prices (Ad)
#15 At one point in September, approximately 11 trillion dollars of stock market wealth had been wiped out around the globe.
#16 At one point in September, Chinese stocks were down about 40 percent from the peak of the market.
#17 At one point in September, German stocks were down about 25 percent from the peak of the market.
#18 Since the last financial crisis, the global economy has added another 50 trillion dollars to our colossal pile of debt. That means we are far more vulnerable to a crisis than we were the last time around.
#19 The list of global financial giants that are rumored to be in very serious trouble includes Deutsche Bank (the biggest bank in Germany), UBS (the biggest bank in Switzerland) and three of the largest commodity trading firms on the entire planet: Glencore, Trafigura and the Noble Group. The total collapse of any one of them would easily be another “Lehman Brothers moment” for the global financial system.
#20 Stocks are still in a massive bubble. In fact, stocks in the U.S. are going to have to fall more than 30 percent from the current levels just to get back to what is considered “normal” or “average”. The following is an extended excerpt from one of my previous articles…
In recent years, stocks have soared to unbelievably unrealistic levels. One of the most popular methods of measuring the true value of stocks is something called the cyclically-adjusted price to earnings ratio. It was developed by economist Robert Shiller of Yale University, and it attempts to accurately show how much we are paying for stocks in relation to how much those corporations are actually earning. When this number is very high, stocks are overvalued, and when this number is very low stocks are undervalued.
Earlier this year, CAPE hit a peak of about 27, and by the beginning of August it was still sitting up around 26. The only times CAPE has been higher have been just before other stock market bubbles have burst…
It would take a total drop of about 40 percent from the peak of the market just to get back to average. So far the Dow has fallen about 10 percent or so, so it is going to take another 30 percent crash just to get to a point where stock prices are considered “normal” once again.
In this day and age, we
are so impatient and our attention spans are pitifully small. We live in a world of instant coffee, video on demand, and 48-hour news cycles. Very few of us are willing to take a long-term view of things because we have all become accustomed to “living in the now” and focusing on what is in front of us this very instant.
Yes, the headlines are not screaming about a “stock market crash” or an “economic depression” on this particular day in October.
But that doesn’t mean that we are out of the woods by any stretch of the imagination.
The biggest bank in the western world (HSBC) says that a global recession has now begun, and the pain that we have experienced so far is just the tip of the iceberg.
So please don’t think that it is time to relax.
The month of September was not “the end” of anything.
Rather, it was just the beginning…
Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
DON’T LET FRIENDS OR LOVED ONES BE CAUGHT OFF GUARD!
In a previous post, Michael Snyder wrote:
Nearly two-thirds of all Americans are completely and totally unprepared for the next economic crisis. As you will read about below, a new survey has found that only 38 percent of Americans have enough money on hand to cover a $500 repair bill or a $1,000 emergency room visit. That essentially means that 62 percent of the people in this country do not have an emergency fund. Even after the extremely bitter financial lessons that millions of Americans learned during the last recession, most of us are still choosing to live on the edge. That is utter insanity, and when the next major economic downturn strikes most people are going to find themselves totally unprepared.
THE NUMBER ONE THING YOU CAN BE DOING RIGHT NOW TO PREPARE FOR THE COLLAPSE IS BUILDING UP AN EMERGENCY FUND!
In addition, there is lots of evidence that much of the country has not bothered to make any preparations at all for even a basic emergency that would last for just a few days.
For example, the following are results from a survey conducted by the Adelphi Center for Health Innovation that I featured in a previous article.
44 percent don’t have first-aid kits
48 percent lack emergency supplies
53 percent don’t have a minimum 3-day supply of nonperishable food & water at home
55 percent believe local authorities will come to their rescue if disaster strikes
52 percent have not designated a family meeting place if they are separated
42 percent do not know the phone numbers of all of their immediate family members
21 percent don’t know if their workplace has an emergency preparedness plan
37 percent do not have a list of the drugs they are taking
52 percent do not have copies of health insurance documents
SHARE THIS ARTICLE AND THE LINKS WITH A FRIEND!
FOR LINKS TO UNDERSTAND THE ECONOMY & THE COMING ECONOMIC COLLAPSE:
102.6 Million Working Age Americans Not Working; What Do You Expect?
Disaster: Will EU Become a New Enemy to the U.S. After Refugees Collapse EU?
Peter Schiff: “The Fed Admits Rates Could Stay at Zero Forever”
Peter Schiff with Mr. “I Have No Fear Of an Economic or Stock Market Collapse”
Peter Schiff Explains Why Financial Bubbles Are Ready to Pop
Peter Schiff: Everybody Is Preparing for Wrong Outcome in US Economy
The Elite Have Prepared For the Coming Economic Collapse – Have You?
China Warns Washington It’s Been Liquidating U.S. Treasuries
2 Day Crash That Was Larger Than Any 1 Day Market Crash In U.S. History
10 Signs the US is Transitioning to Third World Country Status (Videos)
Peter Schiff On China’s Currency Devaluation and the Federal Reserve Board
10 Horrifying Realities Americans Find Too Awful To Face
Gerald Celente: Massive Market and Trade Instability Will Cause WW III
China Knocking on the Door of Reserve-Currency; World Teeters on Collapse
Peter Schiff: Greece Was a Sideshow. Americans Need to Worry About Starving
Gerald Celente Predicts Economic Collapse Means World War III (Video)
Can You Imagine Empty Grocery Stores?
Putin Makes Chilling Threat to Obama That Could Change Everything
Gerald Celente: America Headed Towards Total Financial Collapse
Peter Schiff: China and Switzerland is Killing U.S. Dollar
Deathblow to the Dollar – Even Our “Allies” Abandoning U.S.
What Will Happen To You When The Dollar Collapses?
Gerald Celente: “America Is A Collapsing Third World Country”
Gerald Celente: A Worldwide Panic Is Beginning And “There Is No Recovery”
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cause you need more money!
The derivatives that cause the 2008 crash are still on the books, just buried deep down in the statements. Rather than being written off they are bigger than ever. How much bigger is an open question because of how they are being hidden by accounting gimmicks. It is also possible that the people who created them don’t even know since they didn’t even understand how they things actually worked when they created them and then lost control of them. The total value of these derivatives could be from the hundreds of trillions to the quadrillions of dollars. Simply put, their “value” is at least several times the vale of the entire global GDP, possibly more than the accessible natural resource value of the planet.
Government should have forced these instruments to be written off and replaced with older and safer instruments instead. However, this was not done and the banks got even more money to throw around.
Since America has abused its ability to print and hyperinflate the world’s reserve currency – making the world seek a better alternative than dollars – and since massive debt accumulation makes financial collapse VERY likely – of course CHINA will create a dollar replacement. Of course gold and silver will soar once the NY cartel’s ability to defraud by masking supply and demand with lies finally ends. I think we should expect chaos, hyperinflation, martial law, dictatorship, and the fulfillment of end times prophecy… consider that collapse is intentional – to create a level of chaos, fear, and desperation to have you begging for the NWO “savior” to help you:
Antichrist Obama 2016