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Title: Collapse: “It Will Be Sudden and Very Painful”
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URL Source: http://www.shtfplan.com/headline-ne ... dden-and-very-painful_08042011
Published: Aug 5, 2011
Author: Mac Slavo
Post Date: 2011-08-05 13:15:08 by Capitalist Eric
Keywords: None
Views: 4070
Comments: 6
While it’s too early to tell whether or not the destruction in stock markets will continue as it did in 2008, one thing is for sure – when the bottom finally falls out of this economy it’s going to come as a surprise to tens of millions of people who have been bamboozled by their trusted politicians and corporate elite.
Today’s Dow Jones collapse of 350 points is but an indicator of the severe volatility and unmitigated destruction we can expect as this crisis enters the next phase. Former comptroller general of the Government Accountability Office (GAO) David Walker warns that it’s going to hurt:
“Here’s the bottom line. If you take the total liabilities of the United States – public debt, unfunded pensions, retiree health care, under funding with regard to social security, with regard to medicare, a range of commitments and contingencies – as of September 30 2010 we would have had to have had $61.6 trillion dollars in the bank in order to be able to defease those obligations.” Walker explained.“The fact of the matter is that government has grown too big, promised too much and waited too long to restructure. Our problem is overwhelmingly a spending problem.” Walker, now the head of the fiscal advocacy group the Comeback America Initiative, told viewers.
“Lets understand something very simple. If you have escalating deficits and mounting debt, that means you have to increase the debt ceiling limit at some point and it means absent structural reforms in entitlement programs, defense and other spending, those represent deferred tax increases.”
“We are not exempt from a debt crisis,” he said. “We’re never going to default, because we can print money. At the same point in time, we have serious interest rate risk, we have serious currency risk, we have serious inflation risk over time. If it happens, it will be sudden and it will be very painful.”
It’s not a matter of if, but when. The course is mathematically unsustainable, and a few hundred billion in cuts, as ridiculous as it sounds, is simply not going to be enough.
As Charlie McGrath pointed out in his August 3 video report, the US government will have to take extreme measures, like Greece is being forced to take now, to keep the system alive, albeit on life support:
We are in the leagues of nations such as Greece and Italy, these other nations who their national debt far outpaces their GDP, and reality is these nations are going through austerity.And, here comes your crisis of reality.
The austerity measures that are about to come our way are going to be like nothing we’ve ever seen or even dreamt about in this country – certainly worse than any of the politicians getting before the cameras will tell you is coming. They’re telling you if you go further into debt everything’s going to be OK.
…
…President Obama and Federal Reserve Chairman Bernanke are out of bullets. They have nothing left…they’ve tried everything: QE1, QE2, Stimulus 1, Stimulus 2, there’s just nothing left that can be done to help create jobs in this country.
Many don’t believe it will happen here. But make no mistake, it’s coming (in fact, it’s happening right here and now!).
They’re going to print more money and erode your savings. They’re going to borrow more money from foreign creditors, until such time that they won’t lend to us anymore. Prices for essentials like food, energy and clothing are going to increase exponentially over the next few years. At the same time we will see forced cuts to programs like social security, medicaid, medicare and a host of other entitlement programs. Millions of Americans are going to feel like they’ve been hit with a sledgehammer.
The United States of America is embroiled in the next Great Depression – and there is no way out. The economy will not, contrary to the opinion of our government and the presstitutes who promote their agendas, recover in a few months. We’re in this for the long haul, as in years and decades not weeks or months, and all of us will soon learn what TEOTWAWKI means.
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Keep dreaming, dipshit.
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Why don't you make like a tree and get out of here?
#2. To: Biff Tannen (#1)
Is that the most coherent reply you can come up with?
Did you even READ the article, or did you just knee-jerk?
Please, provide your insight into this paltry problem of national bankruptcy, so that we may all be educated by your wisdom...
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984:
War is peace.
Freedom is slavery.
Ignorance is strength.
They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished.
Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window.
This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots...
THEIR God... is the STATE.
#3. To: Capitalist Eric (#0)
They’re going to print more money and erode your savings.
Losing your job or your Social Security will erode those savings even faster.
With the economy still in the dumper -- maybe permanently? -- and full-time jobs becoming as scarce as rain during a drought, huge percentages of Americans have had their (misplaced) faith in the American dream shaken, the upper-middle-class consumerist lifestyle is exposed as a mirage for anybody who plays by the rules. Capitalism and the America that embraced it as a way of life is now and forever more a failure. It does me good to know that the generation that voted in Reagan and his ideology will see their America die from that ideology before their very own eyes and knowing they had a hand in its destruction.
#4. To: Godwinson (#3)
Losing your job or your Social Security will erode those savings even faster.
I hate having an economic system that can collapse a nation at will.
#5. To: mininggold (#4)
I hate having an economic system that can collapse a nation at will.
What the HELL do you think Corporatism (the system that we now have) is?
What the HELL do you think SOCIALISM is?
The only economic system that can't be collapsed at will, is capitalism.
How do you NOT see this?
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984:
War is peace.
Freedom is slavery.
Ignorance is strength.
They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished.
Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window.
This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots...
THEIR God... is the STATE.
#6. To: Capitalist Eric (#2)
Please, provide your insight ...
Sorry dude, you're a complete waste of time. Not that I have any insight on this matter (something you should learn to say, btw) but even if I did, again, no. You're a waste of time.
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Why don't you make like a tree and get out of here?
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