Wow! I feel so much better now that we’ve raised the debt ceiling and averted default on US debt! This is a shallow attempt at therapeutic black humor. You know, the kind that you use when things are really bad in an attempt to lighten the mood. This week was somewhat of a watershed moment for people who are concerned about preparing for a collapse of the US Dollar.
As I said a few weeks ago, “August tax receipts are scheduled to be $172 billion. Interest on the debt, Social Security, Medicare/Medicaid, active duty troop pay and VA programs add up to $134 billion, leaving $38 billion for everything else. So, there IS enough money to pay the interest on the debt, Social Security, and these other programs without raising the debt ceiling.”
We didn’t have a debt crisis. There’s no perfect example of a household equivalent to what happened, but here’s a close approximation. Imagine that you have $1,720 to take care of your family every month and pay interest on debts you have. You take care of all of your necessities and still have $380 left for fun, savings, and rainy day funds. You spend the $380 on parties, toys, trips, and general wastefulness. But that’s not enough, so you put another $1,083 on credit.
You do this every month. You take care of your necessities and then spend a LOT more…until you have $142,710 of credit card debt from fast living. Your banks start putting up resistance. You tell them that you absolutely CAN’T stop your fast living and that they either need to increase your credit line or you’ll stop paying them…and your mortgage, but you WON’T stop the fast living, even though your income is down.
You try to get them excited by telling them that you’ll spend $20,000 less over the next 10 years…of course, you’ll only cut back a hundred or so this year. But rest assured, you’ll spend less and less each year and it will add up to sizeable cuts. After all, over 10 years, that means that you will only need to borrow another $110,000 instead of the $130,000 that you were on track to borrow.
You tell all of your friends and they’re so proud of you…after all, you cut $20,000 out of your budget over the next 10 years. That’s almost $166 per month! And you were able to keep your fast living lifestyle and pay your creditors.
The banks give in and raise your credit limits, but they demand that you go to counseling to get your finances in order. They see through the charade that you’re blinding your friends with. They publicly say that they hate you, call you a parasite, and start cutting ties and looking for ways to stop doing business with you. They even start meeting and talking, not so quietly, about how to crush you as repayment for the pain you’ve caused them.
It’s laughable, isn’t it. No individual household could maintain that reckless level of spending and have banks still loan them money. Truth be told, I’ve watched people live like that, and lost a few of them end it with a pistol to the head when the pain eventually got too great. Unfortunately, if you add 8 zeros to the story, you’ve got the situation with the US Dollar.
As I’ve repeatedly said, China hates us. They’ve openly talked and written about how to destroy the US using drugs, psychology, media, economic attacks, and cyber attacks in addition to kinetic attacks. Russian Prime Minister called the US a “Parasite” this week. These are not unique or isolated views.
If they’re that upset about what our actions are doing to them, can you imagine how bad things are? It’s like the family member of someone dying of a terminal illness calling them a parasite for cramping the lifestyles of the rest of the family. Sure…things may be bad for the family, but they’re exponentially worse for the person who’s actually dying.
Friends, while I’m sad that there were no meaningful changes made inside the Beltway this week, I am happy that we got what looks to be a temporary reprieve. I kind of feel like chicken little sometimes, saying that the sky is falling. For the life of me, I don’t understand how it hasn’t. I’m GLAD it hasn’t, but I don’t understand how it hasn’t. Fortunately, when I got serious about preparedness, I was sick of hearing people suggest preparations that would ONLY be beneficial if there was an end of the world scenario. As a result, I decided to limit my preparedness to skills, products, and ideas that would be beneficial immediately, if possible, and that wouldn’t just sit around unused for the rest of my life if disaster never struck.
I want to encourage you to take practical positive steps forward in your preparations for possible hard times this week. Don’t panic or get frantic, but DO take positive steps forward. Store or buy a few extra gallons of water…or a 55 gallon barrel. Buy extras of the foods you already eat, and include a bag of rice and a bag of beans for yourself or charity. If you’ve got money to invest, get some of it out of Dollars and into precious metals, preparedness items to resell, or foreign currencies.
I’ve got a BIG announcement coming up in the next couple of weeks and it’s going to be a game changer for how people get prepared for disasters. I’m not going to spill the beans, but this is going to be something that you’re going to want to tell all of your friends about who WANT to get prepared, but don’t actually do anything because of time or money.
In the meantime, the US and even global economy is on such a precarious ledge right now that I’m going to do something that I’ve only done once before. As you know, the www.SurviveInPlace.com course is a 12 week course. Over the last couple of years, just over 20,000 people have gone through it. It’s delivered in modules, one a week, to maximize retention and so that people will take the time to actually DO the work to get prepared instead of just reading about it.
From time to time, people going through the course ask to get the rest of the lessons immediately rather than getting them every 7 days. We always tell them that we have gone with the one lesson per week model because of VASTLY improved retention, but we also give students access to all of the lessons if they still want them.
For anyone signing up for the course in the next 7 days (and anyone currently going through it) we’re going to unlock ALL of the modules immediately. Some people don’t think we have 12 weeks left until a major meltdown. Some people are just in a position where they can take massive action RIGHT NOW and want all of the lessons at once. In any case, if you sign up today, you’ll get the entire course immediately.
What are your thoughts on the debt deal? On Vladamir Putin’s comments? On rolling blackouts across the country? On simultaneous floods and droughts? What practical steps are you taking to make you and your loved ones more resilient to these and other events?
God bless and stay safe,