SitRep – 5/3/2021 (part #2)

This post is Part #2 of a multi-part SitRep. The original SitRep (part #1) appeared yesterday. For this post to make any sense I would strongly encourage you to read Part #1 (yesterday).

<Click here to read Part #1>

Tomorrow will be Part #3

 


The Economy –

The economy is also referred to as the financial system, banking, the markets, etc. For this purpose the “economy” is a combination of all of those individual terms, it is everything to do with the US economy and dollar.

Bottom line for the economy…NONE of it matters any more. You see, the money supply system has become so corrupt that the dollar no longer has any value, substance, or more appropriately…the US dollar has absolutely no meaning to it any more.

My wife and I had a very long discussion about this subject last month. We went into detail on the money supply, deficit spending, the national debt, Federal Reserve, unfunded liabilities, foreign central banks, etc. Hours later when we were done with that conversation it became very clear that it all means nothing…the economy as we know it means nothing anymore!

Think about this…

  • During Obama (8 years) we racked up approximately $7.5trillion in budget deficits. That is an average of almost $1trillion dollars per year.
  • During Trump (4 years) we racked up approximately $5.3trillion in budget deficits. That is an average of almost $1.4trillion per year. And increase of an average 40% per year!!
  • In March of 2008 our national debt was about $10trillion. In March of 2021 our national debt is over $28trillion. That is almost triple what is was just 13 short years ago…two Presidencies…one Democrat, one Republican!
  • Biden/Harris administration proposed a $2+trillion dollar infrastructure stimulus package. And of course that will be all unfunded…meaning the Federal Reserve simply creates that money out of thin air. Yes, that means more budget deficit and higher national debt…especially when you consider the multi-trillion dollar relief plan already in play for 2021…and all of that added on top of a regular budget deficit of over a trillion dollars.
  • If you are keeping track…the US federal government now prints almost 60cents of every dollar it spends. Yes, that means they are simply making up money. Yup…funny money flying off the printing presses!

as of 4/28/2021

The point to all of that…money means absolutely nothing anymore! It is just created as desired with nothing at all behind it to support it, to give it any real value. To understand more of what I am talking about when it comes to “funny money” you can read my SitRep – 3/1/2021 article <click here to read>

The sad part to this…this “funny money” is an actual economic model going back a couple thousand years!! And SURPRISE!!!! It has failed each and every time it has been tried. Imagine that.

When you get rid of all the “economy static”…there is nothing left to talk about…it is ALL static…none of it matters any more…none of it. Are you thinking you are a guru with the economy and you can still make money in the stock market…yup, till you lose it…unless you are really good. You can still make sound (i.e. good) everyday decisions based on the economic static of the day. But when it comes to preparedness…no economic numbers mean anything anymore…it’s all worthless static…pure nonsense.

But do you think a few folks look at our US economic situation as “nothing”???  Think again! Foreign central banks (i.e. foreign Federal Reserves) are dumping the US dollar at an historic pace. Yes, meaning they are losing confidence in the US dollar, our economy, our US society, and our US government. Again, image that!

Call it a crash, a decline, depression/recession, or a reset…whatever floats your boat. The crux of the matter is simple…it’s over…it’s just a matter of time till the entirety of its termination manifests itself.

Look at the price increases taking place. The price of construction materials (i.e. lumber) has skyrocketed. Actually home and land prices have gone thru the roof as well. And the reason is pretty dang simple…the Federal Reserve. They have been pumping hundreds and hundreds of billions of dollars into the mortgage markets. So there are huge amounts of money available for first mortgages, second mortgages, mortgage refinancing, debt consolidation, and remodeling loan packages. Banks are going out of their way to make sure the house flippers also have all the money they need. That all adds up to home prices going so high that a significant percentage of the US population can no longer afford to buy a home…especially first time buyers with young families.

Go to the grocery store…how do you see the prices now compared to last year or the year before? Think they are going up a little, eh?

Gas is up 40% in the last 6 months! The price of fuel ripples out to the entire economy in the form of higher transportation costs on everything.

So call it price inflation or dollar devaluation…it is destabilizing the entire US economic system. And as the US goes…so goes the world.

On the other hand…have you seen the number of “experts” talking about the economy getting ready to roar?

Another prediction I am hearing that sounds all too familiar…there is no housing bubble? Well, if you have the Federal Reserve pumping trillions of dollars of funny money into the system and the federal government pouring trillions of dollars into the system…does it sound unreasonable that the economy would do anything other than roar? At least for awhile.

I already told you that most of the foreign central banks are accelerating their dropping of the US dollar as the world’s reserve currency. Now, have you ever heard the saying “the chickens coming home to roost” in any context? Do you think that the economic chickens coming home to roost will be a good thing for the US economy…or a bad thing?

Can you see any possible positive outcome for what the politicians are doing to us with this massive deficit spending on ridiculous political payoff programs? Can you see anything, anything at all, other than an economic disaster coming?

Yeah, I didn’t think so. It is only a matter of time.

For me and my family, we have a good portion of our IRA money in a growth mutual fund that is outpacing inflation by a large margin. And yes, we are making sure we have a solid supply of tangible goods that we will need…and the price of those commodities will only go up as time goes on. We sat down and talked about what we would need to weather an economic depression or a grid-down situation…and we are buying those items that we are lacking. Example: we are doubling our solar battery storage capability. And yes, we have over a year’s worth of toilet paper on hand.

Why the growth mutual fund for our IRA? Simple, it is hedging our bet. We don’t want to pull out all our money and spend it. Why? What if we need cash before the SHTF? And if we put that reserve money in a money market fund or a savings account then is doesn’t even keep up with inflation and that loses us ground. So we picked a great performing and well managed mutual fund for part of our IRA just to make sure we had a financial “Plan B”.

One important point to note…we can have that money in our bank account within 48 hours…usually less.

If you want to read more about our currency and the US economy please read SitRep – 3/1/2021 <click here to read>

Now, I fully expect to see the economy be described as “roaring”, maybe as “running on all cylinders”, “best recovery ever”, and similar arrogant and inaccurate platitudes. Yes, I do see the economy doing very well for a while, excellent statistics, great economic numbers, and it will be all hogwash, superficial at best…a house of cards.

As we pull out of the COVID crisis we will see a more organic recovery…people spending money from stimulus checks, etc. and doing stuff that causes them to spend money. Of course it will “roar”!!!

And for a historic perspective…think the Roaring Twenties. And then think what the depression 1930’s looked like right after the Roaring Twenties.  I would hope that gives you food for thought…and pause for consideration. Roar, then depression, then…

Then came the real aftermath…the 1940’s…the real serious kick in the pants…WAR !

Coming back to our current day…prices will rise, inflation/devaluation will kick in…whatever way you want to describe it…it will occur.

And just as assuredly, the economy will collapse, crash, or reset…whatever you want to call it.

Both are coming…there is no avoiding it.

Please, please prepare your financial house! If you don’t prepare…you may well see a time when you get rolled over financially. And it might come sooner than you think and be far uglier than you can imagine.

This is an extremely important point to note: Not the US Government, nor the Federal Reserve, nor any national politician has any intention or desire to reduce, let alone pay off, the national debt. Think about that…

THEY HAVE NO INTENTION TO PAY OFF THE NATIONAL DEBT !

 

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