$16,002,599,797,236 – The Financial Crisis that Could Wipe Out America

$16,002,599,797,236 – that’s the total public outstanding debt this country is facing. That means that every tax payer in America is on the hook for somewhere around $140,018. With such a staggering amount of debt, one really has to wonder, how long can this country really maintain its present course before the ship goes down?

stock ticker collapse According to the Senate Budget Committee, forty cents of every dollar we spend is borrowed. Even at current government estimates, by 2022 the government will have racked over 25 trillion dollars in debt. We are headed towards the fiscal cliff, and not one person in Washington seems willing to do anything about it.

Sadly, most Americans are hanging their hopes on the upcoming elections. In my opinion, the elections will probably do nothing to fix our current situation. For years both parties have pushed us into this situation; I doubt either party will be willing or able to take the steps we need to take to fix the country.

$16,002,599,797,236….. TRY $120 TRILLION!!!

While the 16 trillion-dollar number that we keep hearing about is enough to scare the hell out of anyone, the real numbers are actually far worse. $16 trillion is really only the tip of the financial iceberg.

When you add in implicit debt, the unfunded obligations of government programs such as Social Security, Food Stamps and Medicare, the actual number comes in somewhere around $120 trillion.

The Real Numbers

46.7 million – According to the most recent government numbers, one in five adults is currently receiving food stamps. That’s over 46.7 million Americans who are now part of the governments food stamp program.

49 percent of Americans – According to the U.S. Census Bureau, that’s the number of Americans who are currently receiving at least one type of government benefit.

22 percent of Americans – When you figure in long-term discouraged workers, those who have stopped actively looking for work; the actual unemployment number is 22%.

true unemploment rate chart

$13.83 per hour or less – According to AARP,  a majority of the jobs that have been created over the last two years, are all much lower paying jobs than those that have been lost. In fact, low-wage jobs are outpacing higher-wage jobs on a scale of nearly three to one, with the average pay coming in at $13.83 per hour or less.

Are you prepping for a Financial Collapse?

Living Debt Free… Is it part of your survival plan?

The government may be completely out of control; that doesn’t mean you have to follow their lead! It’s great to be prepared for an end of days scenario, but what happens when you’re faced with a foreclosure or the possibility of living on the streets? Is that not a survival situation?

To be truly prepared for the worst, you must think of your long-term financial security. That means paying off debt, living within your means and starting an emergency fund.

Have a Dedicated Prepping Budget

If the economy crashed tomorrow what would you do? Do you have what you need to survive?

At a minimum we suggest putting together a basic emergency preparedness plan that will help you through the coming crisis. Think about what things you need to survive, and start stocking up on them now. Food, water and shelter should all be at the top of the list. Remember, you don’t need to spend thousands of dollars to be prepared. If you need help maintaining a realistic budget, check out some of our top tips for prepping on a budget.

Survival Intelligence – The Power of Information – If you can’t afford gear, don’t worry stock up on knowledge.

Knowledge is key to surviving any type of disaster, including an economic collapse. In a survival situation, knowledge is going to be a critical factor in determining the outcome of your situation. The ability to be able to predict what will happen in any type of disaster is an important part of being prepared. Start gathering a list of trusted resources and information sources that can help you prepare for whatever the future has in store.

4 Comments

  1. Phil
    September 5, 2012 at 7:09 pm

    There’s a contradiction there, pay off debt to be ready for the financial collapse?

    In the event of a true collapse personal debt accrued won’t matter because the dollar will be a worthless currency, but the survival gear purchased maybe crucial.

    It’s a personal choice and each person’s situation is different, but if you fear the collapse is close (6-12 months) why not purchase some much needed gear on credit, as long as you can service it in the meantime?

    • Billy
      September 15, 2012 at 12:36 am

      I agree why the heck should we pay off debt if the government doesn’t have to? its not like the financial recovery experts will be sitting in their office cubicles when thier employer’s office building is set ablaze in a raging inferno. Not to say paying off debts isn’t important for every US citizen in a moral sense. But yeah when SHTF you gotta have gear to survive as Phil says.

  2. Billo
    September 6, 2012 at 12:02 am

    The best IMHO is accrue huge debt and use that money to buy the prepping stuff in different locations. When financial fall happens YOU will fall in it BUT with enough stuff to survive it. IT wont matter how much in debt you are.. but it will matter that you SURVIVE

  3. Mike
    September 6, 2012 at 7:47 pm

    Some people suggest they pay off their personal debt, pay off (or down) their mortgage, but if and when a financial collapse occurs, the agreed to payments will remain the same regardless how worthless those dollars may be. Additionally, the financial institution you would be making payments to may also have collapsed as well, so you could consider that as throwing away good money for bad.

    You can stock up on water and food, but I believe the shelter issue will hurt “renters” more than home owners; as rent will increase with new leases while the value of the dollar diminishes, getting to the point people will be staying in their vehicles at the local Wally World.

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