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.
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.