by Amy S.
Trump’s ‘massive recession’ forecast stumps economists
WASHINGTON – Donald Trump’s prediction that the U.S. economy was on the verge of a “very massive recession” hit a wall of skepticism on Sunday from economists who questioned the Republican presidential front-runner’s calculations.
As with all forms of gambling, derivatives trading carries a certain amount of risk.
The scary part is that we are all exposed to the enormous derivative risks that the biggest U.S. banks have become entangled in, despite assurances to the contrary:
“Overall, the biggest U.S. banks collectively have more than 247 trillion dollars of exposure to derivatives contracts. That is an amount of money that is more than 13 times the size of the U.S. national debt, and it is a ticking time bomb that could set off financial Armageddon at any moment. Globally, the notional value of all outstanding derivatives contracts is a staggering 552.9 trillion dollars according to the Bank for International Settlements. The bankers assure us that these financial instruments are far less risky than they sound, and that they have spread the risk around enough so that there is no way they could bring the entire system down.”
In a revealing interview, Trump predicts a ‘massive recession‘
Pentagon resources and U.S. troops may be used if needed to quell protests and bank runs during an economic crisis, the U.S. Army War College’s Strategic Institute reported.
“Widespread civil violence inside the United States would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security,” the War College study states.
Incidents of economic collapse, terrorism and disruption of legal order could require deployment of forces within the U.S., it said.
A “strategic shock” could require the nation to use “military force against hostile groups inside the United States.”
“[S]ocial unrest may happen in many countries – including advanced economies” if the economic crises are not properly dealt with, Strauss-Kahn said.
“He added that violent protests could break out in countries worldwide if the financial system was not restructured to benefit everyone rather than a small elite,” London’s Guardian reported.
In a recession where consumer spending is plummeting, foreclosures are rampant, workers are losing jobs, credit is tight and markets are strained, some are warning about a worst-case scenario.
47.6 million Americans are about to have their food stamp benefits cut, and most of them have absolutely no idea that it is about to happen.
Needless to say, a lot of them are going to be very angry when they discover that they cannot buy as much food for their families anymore. The reason that this is happening is because a temporary boost to food stamp benefits that was put in during the last recession is expiring. But most of the people that are having their benefits cut will not understand this.
Most of them will just be very upset that the government is “taking money away” from them. And considering the “mini-riots” that we witnessed earlier this month when the system that processes food stamp payments went down for a few hours, it is obvious that a lot of food stamp recipients can very easily be pushed over the edge. So what would happen if we have another “debt ceiling crisis” in Washington D.C. early next year and food stamp benefits are temporarily cut off completely?
Wherever “austerity” has been tried in Europe, it has resulted in protests and riots. Could a similar thing happen in this country?
NBC News is reporting that ALL food stamp recipients are going to have their food stamp benefits reduced in November. This is certainly not going to put those living in poverty in a good mood…
Millions of American families could face a sparse holiday table when food stamps benefits get reduced in November, and that could be just the start of deeper cuts to the program to feed poor families.
The modern-day food stamp plan, now called the Supplemental Nutrition Assistance Program, is scheduled to scale back benefits for all recipients on Nov. 1 because a recession-era boost in benefits is expiring.
Sadly, the truth is that food stamp benefits don’t even buy a lot of food right now. According to the USDA, the average monthly food stamp benefit is approximately $272 per household.
And now it will be even lower.
The government says that a family of four will be getting 36 dollars less per month starting on November 1st.
That may not sound like a lot to you, but for those living on the edge of poverty it can make a huge difference.
What are impoverished families supposed to do? Eat a diet that consists entirely of Ramen noodles?
Of course the real solution would be to provide good paying jobs for those families, but unfortunately our leaders continue to pursue policies that are systematically killing American jobs so that is not going to happen.
Meanwhile, those living in poverty continue to become angrier and more frustrated.
We got a glimpse of this earlier this month. The following is a brief excerpt from a recent article posted on offgridsurvival.com…
Over the weekend, the debit system that allows people on government assistance to buy food, temporarily went down. The resulting chaos is a small glimpse at what I believe will happen, should the government plunge this country into some sort of economic collapse.
A couple of Walmarts in Louisiana decided to allow people to shop, even though the system was down and they had no real way of knowing how much credit people had on their cards. The resulting chaos had the store’s shelves in Springhill and Mansfield, LA stripped bare, as food stamp recipients attempted to defraud the grocery stores.
When the system went back online, the grocery store found people who had as little as .49 on their Food Stamp cards attempting to steal over $700 in food. Local police were called in as the crowd started to turn ugly, and overflowing grocery carts were left abandoned in the aisles.
But this is just the beginning. To get an idea of what is eventually coming to America.
Demonstrators clashed with Italian police on Saturday as tens of thousands marched through Rome to protest against unemployment, government cuts and big construction projects they say take money away from social services.
Hooded protesters turned over garbage bins in front of the Economy Ministry and set several of them on fire. Using sticks and clubs, they attacked police in riot gear. The police charged and chased demonstrators up side streets.
The hooded demonstrators, who infiltrated a mostly peaceful protest, threw smoke bombs, eggs and bottles at the ministry and broke the window of a nearby bank.
As poverty continues to grow and government handouts continue to get cut back, the desperation of those living in poverty in this country is going to continue to increase.
At this moment, there are 6 million Americans in the 16 to 24-year-old age group that are neither in school or working. In fact, a whole bunch of major U.S. cities currently have more than 100,000 “idle youth” living in them…
Just look at some of the nation’s largest cities. Chicago, Houston, Dallas, Miami, Philadelphia, New York, Los Angeles, Atlanta and Riverside, Calif., all have more than 100,000 idle youth, the Opportunity Nation report found.
It is only a matter of time until we see massive riots and huge crime waves in many of those cities.
The conditions for a “perfect storm” are already here.
All we need is a spark.
According to a brand new Pew Research survey, only 19 percent of all Americans trust the government. Back in 1958, 73 percent of all Americans trusted the government.
Right now, only 23 percent of all Americans have a favorable view of Congress. Back in 1985, 67 percent of all Americans did.
Anger and frustration are growing and our society is breaking down all around us.
How to Prepare for a Recession various indicators in the economy are pointing to the signs that an inevitable recession is coming which has been at the center of financial news for over the last few months . As a result of this there’s been a spike in recession fears throughout the nation . So what do you do when the recession happens, and how can you prepare now . I’ll tell you what most people will do.
Now, in the good times, they’re going to “enjoy it while it lasts” they’ll rack up credit card debt, car loans, mortgages, and student loans. Why save money when debt is so cheap and easy to get? Besides, times are good. They “optimistically” ignore the possibility of a decline. For millennials especially, the “good times” are all they’ve ever known. One day soon, these people will be in for a shock. That nice stable job suddenly looks a lot less stable.
The payments start coming due on those loans, and it becomes a lot harder to get new loans. They begin to default. They begin to sell off assets to make ends meet. Not a fun time. I’ve decided not to allow myself to be in that position. As a product of “the system”, I’ve made a lot of the mistakes that you’re supposed to make along the way. I spent what I made, sometimes more. I racked up some credit card debt, financed a car, and of course, took out tens of thousands of dollars of student loans for an economics degree that didn’t even teach me how to benefit from economic cycles. I’ve taken jobs I hated that paid me next to nothing because I didn’t think there were any other options.
I’ve put money into 401k plans, but that was the extent of my investing. I had a few thousand in a savings account, but not enough for any real peace of mind or opportunities. As I mentioned above, I’ve been making improvements lately, but there’s still a long way to go.
My plan to prepare for the next recession is as follow .
1# Prepare to — In the 1930′s, people were generally much more law abiding. Life centered upon your neighborhood, work, and church. If you got out of line or caused trouble, the community reacted quickly. In this day and age, people are less connected to their communities. If we have another great depression, crime will be rampant. Staving and desperate people lower their moral standards. You need a defensive carbine, shotgun, and pistol for every member of your family. Have enough ammunition, such that if you never could buy ammo again, you would have enough. Children from age 13 and above should learn how to shoot in a responsible and safe manner. (I am a super strong advocate of safety and working within the law. Take a safe gun course and know your state and local gun laws!)
2# Get to know your neighbors – In 1930′s everyone in your neighborhood knew you and you knew everyone. It is time to return our communities to friendly helpful neighbors. Learn about your neighbors. Know their strengths, weaknesses and values. Know whom you can count on in an emergency and who you would help in an emergency. In a subtle manner, discuss emergency preparedness. Ask questions like, in case of a bad storm, do you have a chain saw to help clear the streets of downed trees? Start the seeds of a community watch program, which can evolve into a community safety program if WROL occurs. The best way to get to know your neighbors is to throw a block party. In my neighborhood, we throw a block party on Halloween for all of our children. And we are looking to possibly throw a New Year’s Day open house. Also, offer to watch your neighbor’s house when they go on vacation. Be a good neighbor and your neighborhood will respond to you.
3# Avoid all types of debt — Except for your primary mortgage, try hard to avoid any type of debt. During the great depression, many homes and farms where repossessed, leaving families as refugees. Instead of buying new cars on credit, but used for cash.
4# Find alternative sources of income — People in the 1930′s did everything and anything to earn income. If they had a job, then often had a 2nd job. If they had a job, the often had a home based business in addition. If they had no job, they took odd jobs or day labor to earn money. If you have skills of an essential service, offer that services to your friends and neighbors, and then ask for referrals from them.
5# Find alternative sources of food — When the next great depression strikes, the biggest problem will be access to food. Supply chains will collapse. Food supply companies will fail. Shipments of food could be blocked or delayed. You should have multiple mechanisms to obtain food. First and best is your own garden with home canned to save your results. Any home with room for a garden had a garden in the 1930′s. Additionally, join a local farm coop and go to your local farmers market. Befriend a local farmer and offer labor in return for food. Some farms will allow you to gleam from already picked fields.
6# Be prepared to double up at home — Where three generations of the same family have their own homes, that is true luxury. Back in the 1930′s, families grouped together for mutual support. Grandma and grandpa did not live in a condo in Florida, rather they lived with their children. Young children lived with their parents until such time that they married and started their own families. In the next great depression, it is unlikely that people will be able to afford to live in separate homestead. And besides, it is a better family that lives together. Grandparents have historical, Darwinist role in family. That is to teach their children and assist in the raising of grandchildren.
7# Position your finances – For your investments, you should always have a diversified asset allocation. While I will not provide recommendations on your investments and retirement funds (I am not a financial advisor), I would recommend that you take a serious look at all of your investments. In the remote possibility of a full economic collapse, I do recommend that 5% of your investments are held in physical (within your hands-on control) in gold or silver. Otherwise, there are very tough decisions to be made regarding your investments. The economy may or may not recover. Stock market may go up or down. You need to decide for yourself how much risk you are willing to take. Due to near 0% Fed interest rate, bond are risky. If interest rates need to rise in the future, the value of bonds may go down. Do watch market conditions closely. Have a plan to quickly move your savings and investments to less-risky, principal protecting securities, if the economy looks to about collapse.
8# Build an emergency fund — Every prudent family should have an emergency fund. Rather than using credit cards for emergencies, better to pull from savings. Emergencies tend to cluster, unfortunately. Illnesses, job losses, and weather disasters can all hit at once. Putting emergencies on a credit card have lead to many bankruptcies. Ideally, you should have 6 to 12 months of emergency savings. If you are single or have a two wage family, then perhaps 6 months is enough. If your family has only a single income earner, or you have a seasonal job, or employer is having financial problems, then 12 months of emergency savings is appropriate. You can start by simply taking $50 or $100 from each paycheck to put in a savings account. Cut back on expenses everywhere in your life, so that every penny saved is directed to emergency savings.
9# Do not delay medical issues — If you have any outstanding minor surgeries or dental care, please deal with it now. You may not have access to medical insurance or health care providers when the economy collapses. Get your eyes checked and update your eye glasses prescription. The hernia operation you have been putting off may be a life-ending after economic collapse. If you are overweight, drink too much alcohol, use tobacco products, or addicted to drugs, you are running out of time to correct these issues. Alcoholic and drug addicts will be among the first to die after an economic collapse.
10#Shed non-essential toys — While you still have time and your toys still have economic value, shift your assets from non-essential to essentials. Have a jet ski, weekend motorcycle, and 48 inch LCD TV, but no long-term food storage? Have a baseball card collection or your wife has a doll collection, but no way to defend your family? Sell the toys. Buy essentials. One of my hobbies is coin collecting. I shifted my collection from collectibles coins to gold and silver coins.
11#Take up hiking and camping as a hobby – The best way to build a bug-out bag or be prepared for an emergency relocation is hiking and camping. Hiking, for that matter any walking, is great exercise. Your preparations for hiking and camping will enable you to prepare for a bug-out situation. You will learn about what gear you need. An overnight hiking trip will teach you how to pack lightly and with only essentials. This past Summer, I took my young family on their first camping trip. They loved it. We started with just camping in just a cabin (we are suburbanites, so you will need to cut us some slack). And we are working our way up to tents.
12#Produce your own energy — If you can afford it, adding solar panels to your home is starting towards becoming energy efficient. Add a wood-burning fireplace and cast iron stoves to you home, so that you can heat your home from firewood. In an economic collapse, you may not be able to afford to pay for heating fuel. There are many interesting home kits to produce bio-diesel and alcohol fuels for vehicles.
14#Monitor the news — Watch the economic news closely. Do not be blind sided by a possible economic collapse. Be prepared to move quick to move your money and investments to safer assets. Be quick or be poor.
15#Watch your banks closely — If your bank has a lot of negative news, consider moving your accounts. Watch for a potential run on your bank. Make sure your bank is FDIC insured. FDIC insurance only covers up to $250,000 in deposits. So if you have more than $250,000 at one bank, then spread it out to multiple banks.
16#Learn new skills — Never shot a gun before, then take a gun safety class and obtain your concealed carry permit. Learn now to do home canning with a pressure cooker. Take first aid courses. Learn how to plant a home garden. Gain the skills now that will carry you through.
17#Buy farmland – If you have the money, it would be hard not to consider buying a plot of farmland for your family. Even 10 or 20 acres in a remote location with ample annual rain or source of clean ground water would be an excellent way to insure your family will have food in the future.
I truly hope there will not be an economic collapse. But for some countries, economic collapse has already come. Look at the situations in Argentina and Greece. Debt levels for Great Britain, France, Spain, Portugal, Germany, Japan and USA are reaching crisis levels, yet still growing. An economic collapse is possible, not an alarmst bloggers posting. It is time to prepare your family.
Growing your own groceries, and making your own food out of basic ingredients, such as cheese, bread and even chocolate to name a few…
Then you could stockpile the excess produce for dark days… (The shelf life of ingredients is longer than that of the resulting foods, anyway…) So while other preppers pay thousands for overpriced, highly-processed “emergency food”, you’ll build your survival stockpile for free…
HSBC payment system collapses. Corporate media continually using propaganda that the stock market can’t crash. Consumer sentiment tumbles. Personal spending declines as J Crew reports a decline in sales. It is looking like 2008 all over again, as retail investors are getting out of the market. China unwinding dumping treasuries. Huge push to get rid of paper currency so the central banks have full control. Former Adviser to Ex UK Prime Minister warns everyone needs to prepare for the upcoming collapse. The US Government/central bank continues to blame China for the crash of the market.