I just made the post below about having some fun and do a little gaming, and after this post, you’re going to need it.
Below is a collection of articles that I’ve been going over recently, and while I hate to keep bringing bad news, I think it’s important that we stay focus right now. Things are moving much to quickly to “forget about it” for too long. Definitely, take some time off when you need it, but remain focused on what you need to do to get better prepared.
As I’ve often mentioned, keeping your eye on “the ball” can help you respond quickly to a changing situation. When I make a plan, I usually adopt a timeline based on when I think things might occur. This plan needs to be kept up to date with current information and adjusted accordingly (I’m assuming that you do something similar, which is why I make these posts).
Most of the below are related to the economy, which I think is the biggest threat that currently faces us. If the economy tanks, so does everything else. BTW, I’ll try to post these more often, so I’m not making huge posts like this one, but the info is too important not to get out.
With everyone (well, almost everyone – I am one of the lonely skeptics) convinced that we have stepped back from the ‘edge of the abyss’, the title of this article may be viewed as laughable. When you connect the dots, as I will in this article, you will at least stop laughing, and, maybe, realize that we still have a big problem.”
Pimco Says Dollar to Weaken as Reserve Status Erodes (Update4) – Bloomberg.comPimco Says Dollar to Weaken as Reserve Status Erodes (Update4)
One In Three Chance You’ll Soon Owe More Than Your House Is Worth
Foreclosure rates in the U.S. remain near record highs. More than 13% of American homeowners with a mortgage are either behind on their payments or in foreclosure. The latest report from the Mortgage Bankers Association, released today”
A report by a panel of scientific advisers to President Barack Obama on Monday presented a “plausible scenario” in which 60 million to 120 million Americans — or 20% to 40% of the U.S. population — contract H1N1 swine flu this fall and winter, and 30,000 to 90,000 people die of the disease.
BEIJING The global spread of swine flu will endanger more lives as it speeds up in coming months and governments must boost preparations for a swift response, the World Health Organization said Friday.
There will soon be a period of further global spread of the virus, and most countries may see swine flu cases double every three to four days for several months until peak transmission is reached, said WHO’s Western Pacific director, Shin Young-soo.
‘At a certain point, there will seem to be an explosion in case numbers,’ Shin told a symposium of health officials and experts in Beijing. ‘It is certain there will be more cases and more deaths.’
WHO has declared the swine flu strain a pandemic, and it has killed almost 1,800 people worldwide through last week. International attention has focused on how the pandemic is progressing in southern hemisphere countries such as Austral”
This is a great way to track H1N1 as it spreads. I’m still hoping that it will fizzle out before it gets out of control, or mutates into a more deadly strain, but I won’t hold my breath on that. Clicking on the circles will bring up more info about that area.
China wants to establish a new global currency regime
China reduced its holdings of US government debt by the largest margin in nearly nine years in June, according to data from the US Treasury.
China holds more US government debt than any other country…
(Ed. note: We’ve been saying for a while now that this is an inevitability. China will not hold onto worthless Dollars, regardless of how much we think they need us.
Days Away From Economic Chaos? by Bill Sardi
Days Away From Economic Chaos?
by Bill Sardi
America is just a few days away from a possible day of reckoning. I again call attention to this day, August 25, when the Federal Deposit Insurance Corporation issues its 2nd Quarter report for 2009 on the state of health of American banks.
It has not particularly alarmed Americans that its growth and prosperity have been built upon debt. The American public is a bit desensitized, particularly since the Y2K threat fizzled. We must wait and see how Americans respond to the upcoming FDIC report.
The following charts tell the story. There are roughly 8400 American banks that set aside a small portion of their profits to aggregately insure bank depositors should their local bank fail. A plethora of bank failures has depleted the FDIC reserve fund from $52.8 billion in 2008 to $13 billion in the 1st Quarter of 2009.
(Ed. note: Wow, take a look at these charts. If a picture paints a thousand words, then these charts sum up the increasing problems that are headed our way)
We have all heard that the U.S. economy cannot go the way of Argentina in 2001 when foreign investors expressed lost confidence in the government and refused to roll over maturing short-term government bonds. Money fled the country as foreign currency reserves dwindled. A balance of payments crisis facilitated by investor panic led to the very outcome investors feared: the worlds largest ever sovereign bond default, a collapsing currency, and hyperinflation.
Just when I was starting to hope that ammo prices would start to fall, we learn that people are still very concerned about the future, and in a bad way. When people feel that we’re headed for unstable or chaotic times, they’re going to arm themselves. What may have started was a fear over coming gun control has turned into a fear of protecting themselves against an uncertain future. This is when you’ll see an increase in sales of guns, ammo, gold, silver, and other hard goods. Watch the sale of these things carefully.
“As the world’s population grows, competition for food, water and energy will increase. Food prices will rise, more people will go hungry, and migrants will flee the worst-affected regions.”
(Ed. note: Okay, we’ve heard this several times in the past few decades and it hasn’t happened yet, mostly thanks to technology. However, at some point, we may not be able to make enough tech advances to overcome the pressures of declining resources. Eventually, you hit a point of diminishing returns, and that’s when you’ll really see the “competition” for food and water really heat up.