- Education and Science
The Economic Collapse in America
Many American economists are saying that the threat of the economic collapse in America is very real and it is imminent. It is not a question of if but when it is going to happen.
Watch this Video: What will Happen when the US Dollar Collapses
High Unemployment Rates
Before the last election in November 2008 people have been blaming President George W. Bush for the bad economic situation, so let us look at the unemployment rate in America during his term of office.
Now look at the unemployment rate in America since President Barack Obama took office on January 20 2009. In March 2009 the unemployment rate jumped up to 8.8%, and in November of that year it spiked up to 10.1%. The unemployment rate on April 1, 2011 went back to 8.8% which is the same rate as the one after Obama took office, which is still high.
The Real Unemployment Rate is Much Higher than what is shown in the Above Chart
The unemployment rate of 8.8% includes only people who have recently lost their jobs and are looking for work which is not the real rate. The real rate includes those who have run out of unemployment benefits and have stopped looking for a job because they could not find one. It should also include people who were forced to take a part-time job when they needed full time work. The real unemployment rate in America is about 15.7%, and if it rises again without a check it would lead to an economic collapse.
The United States National Debt
The U.S. National Debt in March 2016 exceeded $19 trillion and it continues to go up $3.87 billion USD per day.
Here is the truth. It is simply not possible for America to pay off the National Debt. Most economists realize this and speak of more realistic goals such as getting our debt growth down to a level that is "sustainable".
But the reality is that we are way beyond being able to get this debt under control. If the U.S. government cut spending enough to make a real difference it would crush the economy and tax revenue would take a sharp nosedive. If the U.S. government borrows even more money and increases government spending even more it will help the economy in the short-term, but it will make our long-term problems even worse.
No, the truth is that we have created an economic nightmare from which there simply is no escape under the current system. The national debt will never be repaid and the never ending spiral of debt and paper money that we have created is doomed to failure.
So what will happen someday when the current economic system does collapse? Every American has to decide for himself and his family what to do.
Global instability is one of the main causes of hyperinflation. Over the past year we have had really bizarre weather all over the globe, we have seen revolutions erupt all over Africa and the Middle East and the third largest economy in the world (Japan) just experienced the worst disaster that they have been through since World War 2 ended.
When things are unstable, economies don't work as efficiently. That means less goods and services are produced. But when there are less goods and services being chased by an increasing amount of money that tends to push prices up.
The truth is that inflation is here, and “it is not going to go away any time soon” says Bill Simon the CEO of Wal-Mart. In fact, many believe that the world is on the verge of another major economic crisis.
The United State’s enormous dependency on imported oil translates directly to enormous economic vulnerability. The U.S. military is one of the ten largest oil-consuming entities on the planet. Few people realize that U.S. agriculture is an oil-intensive industry. Oil-powered machines plant the crops. Oil-powered machines distribute the petroleum-based fertilizer products used by most forms of agriculture. after consuming vast quantities of oil to produce its crops, the U.S. then takes a large chunk of that agricultural production and converts it to fuel - in a process which uses nearly as much fuel as is produced, resulting in no economic benefit to anyone (and no increase in energy supply), except for a windfall for corn-farmers.
The major causes of high gas prices include the increased demand for oil in places like China and India, high gasoline taxes, civil unrest in Venezuela, war in the Middle East, political instability in Nigeria, and too few refineries in the U.S. Another factor that drives up the cost is the political opposition to offshore drilling.
Due to the increase in oil prices it has affected almost everything that is needed for the home. The price of wheat has more than tripled in the U.S. during the past 10 months, making Americans' daily bread more expensive. So has the price of orange juice, milk and eggs that increases the cost of breakfast. This is not the end, but just wait for the collapse of the U.S. Dollar then America will be experiencing a real hyperinflation.
Collapse of the U.S. Dollar
The U.S. dollar became the world's reserve currency when President Nixon abandoned the gold standard in the 1970's. The dollar is used for 43% of all cross-border transactions, and 63% the world's central bank foreign currency reserves are in dollars.
Several conditions must be in place before the dollar could collapse. First, there must be an underlying weakness. Second, there must be a viable currency alternative for everyone to stampede into. Third, a triggering event would need to occur.
The first condition does exist. The dollar declined 40% against the euro between 2002 and 2009. Why? The U.S. debt more than doubled during that time period, from $5.9 trillion to $13 trillion. This increases the chance the U.S. will let the dollar's value slide, allowing it to repay the debt with cheaper money.
The popular solution which is being advertised in the television commercials hundreds of times every day is - “Buy Gold”. The problem with buying gold is that it is not edible and it does not fulfill man's physical needs. Besides, everyone in the world is now buying gold, especially the people in Asia, and this precious metal is now getting scarce and almost depleted. What you can buy nowadays may be only gold stocks and not the real gold.
Many Preppers (people who are preparing for survival during the economic collapse) are buying farmlands while the U.S. dollar is still holding its value. Farmlands in the warmer climates such as South Texas are getting scarce and also more expensive day by day.
The Practical Solution is to live on the Farm and try to Get off the Grid before the Grid goes Off
This Hub is one of the Articles of "Living in the End Time" written by Arkwriter.