26% of Americans have No Emergency Savings, making a large part of the country completely unprepared to face even a small-scale financial emergency.
According to a new Bankrate.com report, 26% of Americans have no emergency savings, and two-thirds of people in the U.S. don’t have the recommended six months of emergency expenses put away.
It seems most people have already forgot how close this country came to collapsing in 2008, as levels of both consumer and government debt hit record highs this year. When you total up the combined debt of the country, including government, mortgage, business and consumer debt, this country sits at almost 60 trillion dollars in debt.
While that number may seem almost implausible, sadly, it’s actually only part of the outrageous story. In fact, that number doesn’t take into account another 127 Trillion dollars in unfunded future liabilities. These figures, which include things like deposit insurance, government trust funds, Social Security, Obamacare and Medicare, are not included in the government’s official debt numbers.
According to Prof. Lawrence Kotlikoff of Boston University, the actual debt number is probably somewhere right around $222 trillion. Back in 2012 Kotlikoff told Real Clear Policy,
It’s $222 trillion.
That’s what we economists call the fiscal gap. I don’t know what those guys are looking at, but we economists do it a certain way. We’re not politicians. We’re just doing it the way our theory says to do it. What you have to do is look at the present value of all the expenditures now through the end of time. All projected expenditures, including servicing the official debt. And you subtract all the projected taxes. The present value of the difference is $222 trillion.
So the true size of our fiscal problem is $222 trillion, not $87 trillion. That’s comprehensive and incorporates the official debt. The official debt in the hands of the public is $11 trillion, so the true problem is 20 times bigger than the official debt.
The Coming Economic Crisis
Despite endless declarations from the Obama administration that we are in an “economic recovery”, the numbers tell an entirely different story.
- The labor force participation rate for Americans ages 25 to 29 has fallen to an all-time record low.
- During the first quarter of 2014, earnings by the top U.S. retailers missed estimates by the biggest margin in 13 years.
- U.S. home ownership rates have dropped to the lowest level in 19 years.
- 52% of Americans can’t afford their current house payments.
- 20 percent of all families in the United States do not have a single family member that is employed.
- Total consumer credit has increased by 22 percent over the past three years.
- Over 148 Million Americans receive government benefits while the country now has only 86 million full time private sector workers.
Whether the federal government is $17 trillion, $60 trillion or $222 trillion in debt, the fact is this country is heading towards the edge, and the politicians in Washington D.C. seem to be more than willing to push us over.
Just like all Ponzi Schemes, which is exactly what our current economy is – ONE BIG PONZI SCHEME – this is going to end. There is simply no way this scam can keep going; our country is not only dead broke, it’s dug itself into so much debt that there is no way to dig itself out. Eventually the whole house of cards is going to come crashing down and when it does, watch out.
What can you do to prepare for the inevitable collapse?
Start Stockpiling Food: During any type of crisis, food and water are going to be some of the most important commodities you can have. Everyone’s going to want it, and that means there are going to be major shortages and supply chain problems. Now is the time to stock up on long-term food and water.
Invest in Long-term Consumables: Start stocking up on items that you know you’ll need and use in the future. By stocking up on food, water, survival gear & supplies, and bartering goods; you will have a nice stockpile of supplies that will help see you through almost any crisis situation. Another upside to investing in consumable goods is these goods are completely secure from financial market volatility, and will continue to hold their value after the collapse. In fact, most consumables will probably skyrocket in value in a post collapse world.
Start Cutting Expenses: Start cutting all nonessential expenses. From monthly cable bills, to your morning Starbucks, you really need to start paying attention to where your money’s going.
Start an Emergency Fund: An Emergency Fund should be one of your top priorities. When it comes to preparing for economic troubles, one of the best steps you can take is to establish an emergency fund.
Get out of Debt: During the 2008 financial crisis, millions of Americans lost their homes because of debt. During an extended economic collapse the possibility of losing your home to debt collectors becomes a real threat. If you can get out of debt, you limit your risk and put yourself far ahead of most Americans.
Stock up on Firearms: In my opinion, this serves two very important purposes. First, during any type of crisis situation security is going to be one of your top priorities. Second, firearms and ammo rarely lose value, and will be some of the most sought after items post collapse.
Good article. It says it all. Most of the people in this country are unaware, totally unaware, this, a collapse, is going to happen. When it does there will be stampede and that, to me, is where the danger will be to most aware and prepared individuals. The only thing I would add to the list is some junk silver in the event the dollar collapses or becomes hyperinflated like what in the Weimer Republic in 1919.
This article nails it. Especially the part about cutting expenses. To many people nowadays waste money on new technological gizmos. That new iPhone 5 isn’t edible, and probably won’t be worth to much after a financial crisis. At least spend money on something useful.
Me and my wife have recently (4 months) started working hard on our budget, giving each other 80 dollars a week to work on. If say, I had 10 dollars left for that week, only 70 dollars would be added. Within that 4 months time we were able to save huge and I have my family of 3 a trip to Disney and saved up enough to get low payments for a truck I’ve been dying to get. We’ll be keeping with the plan – for SHTF purposes simply because budgeting this way has worked awesome for us to get savings boosted quickly.
I wonder how much sense it makes to do all this preperation when the dollar is gonna be collapsed. Paper currency won’t even be utilized anymore it worth anything. In addition to that, we won’t be able to access our bank accounts when the grid fails and the chip is introduced. Before I forget, that little thing about them shooting some of us on the spot after martial law takes place is still a definite threat. At that point, all we saved up won’t even matter. Let’s be realistic here, once all the chaos sets in, looters and people scared out their minds re gonna be breaking out peoples windows, store windows – and taking what they want. Not many of them are gonna wait at the register for a cashier or go to the ATM real quick to come back and get something they could just take and run. Hell, it won’t make sense to steal most items, but it won’t keep folks from looting. Hey, its a crappy deal gang… all of it is. The best you could do is grab the pistol you can get to and shoot you one of’m right between the eyes. Hell’ shoot you 4 or 5 of’m if you can. My bet is that they’re probably gonna gonna shoot you before you can bust a cap. Good luck w/that though. I’m just gonna take my bullet(s), leave my body and float on… go in the spirit and find some of my loved ones to protect/comfort while they go through it. God be w/us.
I think you are more right than most. Everything we have worked for (retirement)and anything else saved up….poof!! Hopefully Jesus will come quickly!
I was doing really good, out of debt and loving the rewards.long story short, got a girlfriend who really cares about me. we are now engaged.she got laid off at christmas and I’ve been supporting her. debt is building up but I got to stop it this month and start paying it down. I have keep the ones I love alive and very feed well(meat in daily food), and sheltered but at a price. you have to choose, remember that. things in my area of the country are really going bad fast. jobs are very hard to come by. if you need a degree for a job and don’t have it yet,your done. teachers salaries are all in the news around here. highly recommend you find a job in something that will be needed even if shtf. sanitation,doctor/nurses,fuel,food,etc… god bless, starting to save back up this month.
She saw the layoff comin’. Ya dope ! Ya gotta ditch the bitch !!!!
I wish my wife could understand some of this. I’m
in trouble for stock pilling a minimal amount of food,H2O,a few hundred rounds of amo & etc. I cant convince her it’s for me and want her to come with me.Any help on what to say, how to say it, and show her it’s serious would be appreciated.
Bob
Bob,
I had the same problem with the wife. Told her that the first thing to go in any disaster situation was toilet paper. That got her thinking, hard. Now we have 6 years worth of toilet paper stashed and we pick up a new 36 roll package every time we hit Sams Club. She gets her TP, I get my ammo,food.
You gotta find your wife’s ‘toilet paper”
Icarus
Amen to that!!
my wife says she hopes she goes in the first wave. I said I hope not but as long as your alive we will be ready, like it or not, tell her this, do you want to be ready or not, and pray that we don’t have use our supplies………BE PERPARED!!!!!!!!!!!!!!!!
I Went to friends house for cook out he says “I have everything”(WRONG) while eating we got in a nice conversation about this…wow did he understand my general statements, If it had been a real disaster instead of a small get together. then what?
I’m helping him be better prepaired & not hurting the budget, or the friendship. sometimes pretending to ask (Can I borrow ??)
keeb.
It’s time to rid yourself of anyone that can’t see the reality of todays situation…..This thing can pop at anytime…
Being in the military for years, I think I have a pretty good idea of disaster. We were in a hurricane that lasted for 5 days. We had no power, part of the post didn’t have water. Talk about smell when you can’t flush for a few days. The first day of the storm the PX and commissary were out of sterno, candles and charcoal briquettes . We were stealing sterno from the barracks so we were able to cook food. I had a infant son on formula at the time. At 5 days food was starting to rot and freezer food was defrosting. Imagine if that were nation wide talk about chaos.