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Say Goodbye To The Good Life

The Economic Collapse – by Michael

Will this be the last normal holiday season that Americans ever experience?  To many Americans, such a notion would be absolutely inconceivable.  After all, in the affluent areas of the country restaurants and malls are absolutely packed.  Beautiful holiday decorations are seemingly everywhere this time of the year and children all over the United States are breathlessly awaiting the arrival of Santa Claus.

Even though poverty is exploding to unprecedented levels, most families will still have mountains of presents under their Christmas trees.  Of course a whole lot of those presents were purchased with credit cards, but people don’t like to talk about that.  It kind of spoils the illusion.

Sadly, the truth is that our entire economy is a giant illusion.  The extreme prosperity that we have been enjoying has been fueled by debt, and any future prosperity that we will experience is completely dependent on our ability to go into even more debt.  The total amount of debt in our economy is almost 10 times larger than it was just 30 years ago, but we don’t like to think about that too much.

Most Americans are way too busy living the good life to be bothered with “doom and gloom”.  Well, get ready to say goodbye to normal.  As history has shown us, no financial bubble lasts forever, and time is rapidly running out for us.

You know that the hour is late when even mainstream news sources start publishing articles with titles such as this: “Will 2013 Mark the Beginning of American Decline?

That article appeared on Bloomberg.com the other day, and it was written by Simon Johnson, a former chief economist at the International Monetary Fund.  He is convinced that a day of reckoning is coming for U.S. government finances, and he seems resigned to the fact that we will not be ready when that day arrives…

“Sooner or later, it will be America’s turn to fall out of favor with investors and to see its own interest rates rise. It is hard to know when that day will come, or precisely what pressures the country will face.

Let me only venture one forecast: We will not be ready.”

Other analysts are far more pessimistic.  For example, the following is what Gerald Celente said about the “bond bubble” during a recent interview with King World News

Eric King: “Gerald, I wanted to take a look at this upcoming issue you have coming out. (In here it says,) ‘Bonds Away! The bond bomb is ready to explode … threatening to make the real estate and dot-com bubbles, and even the Great Recession, look like market corrections.’ Can you talk about that?”

Celente: “Yes. This piece is being penned by Dr. Paul Craig Roberts, the former Assistant Treasury Secretary under Ronald Reagan. And he is convinced that the bond bubble is about to burst. This cannot continue to go on the way it is. Everyone knows that the whole game is rigged, and so is this….”

“The whole game is rigged. It’s ready to go down, and Dr. Paul Craig Roberts believes it’s ‘Bonds Away’ in 2013 as the bond bubble explodes and brings about a financial disaster even worse than the Great Depression.”

Eric King: “He’s saying here it’s a road to financial collapse that we are going to head down when this thing bursts.”

Celente: “It is. Because the whole world is being propped up by these phony bonds and it’s going to collapse. It has to happen. Interest rates are going to start going up, and when they do the bond bubble explodes. You cannot keep interest rates at zero for this amount of time and expect anything other than disaster to follow.”

For much more on all this, you can listen to another excellent interview with Gerald Celente right here.

Our politicians just assume that we will be able to borrow trillions upon trillions of dollars far into the future at super low interest rates, but that is a very dangerous assumption.

As I noted the other day, the average rate of interest on U.S. government debt was 2.534 percent at the end of November.  If that number just rose to where it was about a decade earlier we would be in a massive amount of trouble.

Back in the year 2000, the average rate of interest on U.S. government debt was 6.638 percent.  If we were at that level today, the U.S. government would be paying out more than a trillion dollars a year just in interest on the national debt.

But our politicians just keep borrowing and spending as if we could do this forever.

From the time that George Washington was inaugurated (1789) to the time that George W. Bush was inaugurated (2001), the U.S. government accumulated about 5.7 trillion dollars of debt.

During the first four years of the Obama administration, the U.S. government accumulated about 5.7 trillion dollars of debt.

How can anyone support this kind of insanity?

You can see an excellent video demonstrating the vastness of our national debt right here.  In the end, all of this debt will absolutely destroy the U.S. dollar, our economic system and the bright futures that our children and our grandchildren were supposed to have.

As if all of that was not enough to be concerned about, there is also the threat that Wall Street could implode at any time.  Most Americans have no idea that Wall Street has been transformed into the largest casino in the history of the world.  The “too big to fail” banks are the ringleaders, and the derivatives bubble hangs over our financial system like a “sword of Damocles” that could fall at virtually any moment.

Everything will remain fine as long as the spiral of derivatives that our bankers have constructed remains perfectly balanced.  But if something happens and it becomes unbalanced and starts to collapse, the consequences could be unlike anything we have ever seen before.

A recent Zero Hedge article entitled “1000x Systemic Leverage: $600 Trillion In Gross Derivatives ‘Backed’ By $600 Billion In Collateral” detailed how there is barely any collateral backing up the hundreds of trillions of dollars of derivatives that are out there…

But a bigger question is what is the actual collateral backing this gargantuan market which is about 10 times greater than the world’s combined GDP, because as the “derivative” name implies all this exposure is backed on some dedicated, real assets, somewhere. Luckily, the IMF recently released a discussion note titled “Shadow Banking: Economics and Policy” where quietly hidden in one of the appendices it answers precisely this critical question. The bottom line: $600 trillion in gross notional derivatives backed by a tiny $600 billion in real assets: a whopping 0.1% margin requirement! Surely nothing can possibly go wrong with this amount of unprecedented 1000x systemic leverage.

Our entire economy has become a giant pyramid of debt, risk and leverage.  At some point there is going to be a giant crash.  When that happens, people are going to become very desperate.

When people become very desperate, they often accept “solutions” that they were not willing to consider previously.

We need to learn some lessons from history.  This is exactly the kind of thing that happened back in the 1930s.

For example, an elderly woman named Kitty Werthmann is telling audiences what life was like in Austria back in the late 1930s…

“In 1938, Austria was in deep Depression. Nearly one-third of our workforce was unemployed. We had 25 percent inflation and 25 percent bank loan interest rates.”

“Farmers and business people were declaring bankruptcy daily. Young people were going from house to house begging for food. Not that they didn’t want to work; there simply weren’t any jobs.”

The Austrian people were really hurting and they were desperate for answers.  When Hitler came to them with “solutions”, they were ready to embrace him with open arms…

“We looked to our neighbor on the north, Germany, where Hitler had been in power since 1933.” she recalls. “We had been told that they didn’t have unemployment or crime, and they had a high standard of living.”

“Nothing was ever said about persecution of any group – Jewish or otherwise. We were led to believe that everyone in Germany was happy. We wanted the same way of life in Austria. We were promised that a vote for Hitler would mean the end of unemployment and help for the family. Hitler also said that businesses would be assisted, and farmers would get their farms back.””Ninety-eight percent of the population voted to annex Austria to Germany and have Hitler for our ruler.”

“We were overjoyed,” remembers Kitty, “and for three days we danced in the streets and had candlelight parades. The new government opened up big field kitchens and everyone was fed.”

Sadly, America is already starting to go down the same path in many ways.  If you doubt this, you can read the rest of her accountright here.

Right now, things are still relatively good in America.  Yes, there are a whole host of economic numbers that look really bad, but what we are experiencing right now is nothing compared to the horrific economic pain that is coming.

When our economy finally crashes, nobody is going to be able to press a button and restore things to how they were previously.  We will be told that we have to “adjust” and consider “new solutions” to our “new challenges”.  Someday we will look back on the good life that we were enjoying in 2010, 2011 and 2012 and wish that we could go back to those days.

So enjoy the relative peacefulness and prosperity of these times while you still can.  A horrific economic collapse is on the way, and once it strikes none of our lives will ever be the same.

http://theeconomiccollapseblog.com/archives/say-goodbye-to-the-good-life

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13 Responses to Say Goodbye To The Good Life

  1. Billy T says:

    …and the people that are responsible for all of this will go basically untouched. Doesn’t seem like much of change if you ask me.

  2. NC says:

    I told everyone I know that the 4th of July of 2012 will be our last one, as I don’t see how anyone can celebrate it, especially how our police state is growing and will continue to grow at a faster rate next year to the point that Big Brother will be fully in control.

    This may be our last Christmas as well. They are already trying to change “Merry Christmas” to their so-called “politically correct” term of “Happy Holidays” and thus eliminating the spirit of Christmas, Santa Claus and even more importantly, the birth of Christ. Now people only know endless mad shopping of “must-buys” as Black Fridays start earlier each year and the zombies only see what the advertisers and corporations put in front of them. What follows is endless poverty after it is all over and their joy of what was once called “Christmas” becomes nothing more than a once a year shopping spree where no one knows why but that they have to do it because they are told to. Zombies in the perfect sense of the word.

    Our world has become so torn apart and until we take back control of our communications, it will only get worse. By communications, I mean news stations, advertising, media, and then just get rid of Hollywood and their endless amounts of stupid, immature and mind-numbing reality shows, since the only thing they are good for is trashing the human mind. End of story.

    • Mark Schumacher - NV says:

      Goodbye to “My Three Sons”, “Leave it To Beaver”, The Munsters”, “Bewitched” etc…… Those days ended long ago, and are never coming back.Absolutely nothing on the idiot box interests me any more. It’s all trash. We have to throw these dumb down boxes out the window to stay sane my friend.

      I like to listen to the old time radio shows from the 30′s, 40′s and 50′s. Now there was some real entertainment. What we have now on our radios is trash and useless propaganda.

      Nothing like a good ol time western told on an old time radio program. Even good detective stories were 10 time better than anything we are forced to listen to and watch now.

      Thank God for Sirius and XM radio.

  3. Mark Schumacher - NV says:

    “A recent Zero Hedge article entitled “1000x Systemic Leverage: $600 Trillion In Gross Derivatives ‘Backed’ By $600 Billion In Collateral” detailed how there is barely any collateral backing up the hundreds of trillions of dollars of derivatives that are out there…”

    Another reason why they want the NWO established ASAP. The United States piggy bank has been emptied out from fraud. They need to tie the rest of the worlds GDP’s into the mix to keep the fraud rolling along. Africa, India, China are still ripe for the picking. Europe has been screwed as well as the US. Or should I say cleaned out. They’re finished as we are.

    George Soros game plan.

    Iceland has the right Idea. So far this is the only country that I can see that has any backbone.

  4. # 1 NWO Hatr says:

    Most Americans are way too busy living the good life to be bothered with “doom and gloom”. Well, get ready to say goodbye to normal.”

    Tell me about it. I’m at my brothers’ house right now for Christmas,
    I mentioned about how all the guns and ammo are flying off the shelves right now, all over the country, and his wife said “That’s because all the crazy people are buying them.” My brother said he thinks ALL assault rifles should be banned.

    The purveyors of propaganda have definitely done their job well.

    This saddens me greatly.

    At least as far as my family is concerned.

    • Silverado says:

      Maybe you should have some signs made up at your local Sign-Mart that say “This is a gun free home” and ask him & his wife if they’d like to hang one in their front window. The “crazy people” your sister in-law mentions are the owners of that house and are apparently unarmed. Anyway good luck there. Your heart’s in the right place even if their brains aren’t….

  5. THE LANGUAGE :

    eventually rational people will adopt a common sense approach to survival,

    many already have,
    see who the “Media” [Jews] Hate…!

    for the current NOTSEES ,
    see if the proper definition of just two words impact the condition of “We” and “Our”…

    Israel -

    http://www.israelect.com/reference/Willie-Martin/

    government :

    For unto us a child is born, unto us a son is given: and the government shall be upon his shoulder: and his name shall be called Wonderful, Counsellor, The mighty God, The everlasting Father, The Prince of Peace.

    how is PEACE possible without Justice…

    and how is Justice possible without Truth ?

    Be a seer, awake to who the Lying Murderers are…
    printing currency,
    owning the media and
    running a crackhouse called congress,

    who maintain a stool sculpture deity cult compound called” Israel”
    http://palestine-encyclopedia.com/EPP/Start.htm

    where no Israelites live…

    Don’t be a NOTSEE

    • TranceAm says:

      “Someone tries to change the way “we” live –Bush43 From his personal “One of my more brightest moments” collection.

      Just for fun, just check after seeing and living all the changes of the last (say) 11 years for the collective he was talking to, who’s lives have been the same, or even gotten better?

      That was the “we” he was talking about.. Not the ones who’s live’s kept changing in a spiral down and believed that he was including them and their reasonable privileged lives, they lived at the base of the pyramid..

      Hell, to rub it into a fresh torn flesh wound. there was just an EO issued where they give themselves a pay raise… Like they’ve got something extraordinary done that need to be rewarded to encourage to keep going in that direction. .
      I hear that Southpark tune (MerryXmasMuslims.).
      “Hello American People, Happy Fnking NewYear…

  6. Art Brown says:

    Bob Woodward recently wrote a book about pockets of power in OUR Government and in the civilian world an in order for their to be change these pockets of power must be put in handcuffs. Ask yourself these questions. Who controls Hollywood? Who controls the Justice Dept.? Who controls the CIA? Who controls the FBI? Who controls the Federal Reserve? Who controls Wall Street? Who controls the Treasury Dept.? Who controls our military? Who controls Homeland Security? Who controls the mainstream media, and what purpose does it serve. Why a push towards a police state?Why a push towards destroying OUR Constitution?

    The Weimar District had the same problems and as the old saying goes “history tends to repeat itself. The Federal Reserve (The Creature From Jekyll Island), fabricated themselves for evil purposes. They pushed for “fiat” currency for selfish reasons, and now we are in a world of hurt. It amazes me that these criminal from all of the above pockets of power can actually think their will be a happy ending to the madness. Quite the contrary, and they will be hunted down like the dogs they are and my friends it will not be pretty, and this will all happen when the public wakes up to the truth. Do our politicians and banksters actually think they can say” it is not my fault, and think they will get away with these crimes? Greed is a powerful motivator, and it is obvious that greed has blinded these soulless creatures.

  7. RUSS SMITH says:

    Hi!, Patrons Of TRENCHES Et Al:

    These world shaking events are making for interesting times. The root of our problems goies hardly recognized. The Zombie tribes in OUR world and their nefarious mentors are victims of their own distorted consciousness that outlaws reality. The reality balance checks are long overdue to be cashed in by them/US all. Reaity can be bound, tar & feathered for just so long, before everyone gets their ups & commings no matter how harsh the wake-up calls become.

    RUSS SMITH, CA (One Of Our Broke Fiat Money States)
    resmih@wcisp.com

    • TranceAm says:

      ” victims of their own distorted consciousness that outlaws reality. ”

      Problem is, they are capable of blowing the planet up, extinguishing all live (we know of.), and only because they can’t control it… And if they can’t, then nobody will or should.

      And for what? What , or better why?

      Their minds have been infected with a couple of memes…. A couple of Ideas… A couple of words in strings, that are copied from human to human… And Sick twisted ideas make sick Twisted minds…

      Now Doctor, give me pill for that!

  8. major says:

    If we are going into the abyss, its entirely the fault of the politicians in DC. Its never been clearer that they continue to kick this can down the road while they knew all along the ultimate end game. These are delaying tactics to give time to themselves and the wealthy elites to position their assets and line their escape pods with stolen taxpayer dollars. When the crisis reaches its peak and the voters who continued to vote fools into office like Obama, Reid, Pelosi finally see them for what they are, then the rats will leave the sinking ship or attempt to suppress the population. But I dont care how many bullets the Feds bought, when 300 million people get blood in their eye, there will be no place for these carpet baggers to hide.

  9. Silverbug says:

    It will come like a thief in the night. Just like all the other Government fiat currencies. Remarkably there were thousands of them and only one thing stood standing in the end. That was GOLD.Many will say, well in this enviroment what good will gold do? Is China, Russia, Mexico, Argentinia,etc. all still here today? The people survive. It is Govt. and there Fiat currencies that are failing.

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