Total Economic Collapse
Just imagine… The national debt continues to balloon, the interest rate on the debt increases, and we ultimately find ourselves unable to make interest payments. National default leads to trust in the dollar quickly eroding and as a result, currency ends up not being worth the paper it is printed on. Hyperinflation, bank runs, store shelves picked clean, looting and rioting. Lights flicker above us, water sputters from faucets, and as more and more services and utilities begin failing, panic tears through the population.
The solution?
The Resort at Forest Haven. While societal order collapses – not just in the U.S., but around the world – we still have gas and electrical power. We have water, food, and fuel storage. We have security and communications. We have commerce and transportation. We have extensive grain fields, fruit and nut orchards, vineyards… We have everything necessary to be completely self-sufficient and at the same time, maintain the high standard of living you and your family are accustomed to.
- Investors are impatient and they are also desperate for the ‘next big thing,’ and they are not paying attention to the fact that the ‘next big thing’ can be an economic crisis that they have created by being very irresponsible with their power.
–Carmen Busquets
- A tidal wave is coming to the US economy, and when it crashes it’s going to throw the economy into recession.
–Albert Edwards
- We owe more than we can easily repay. We spend too much and borrow too much. Worse, we promise too much… I won’t insist that this can’t go on, because it has. I only say that it will eventually stop. I don’t know the date, but I believe that I know the reason. It will stop when the world loses confidence in the dollars we owe. Come that moment of truth, the nation will resemble Chicago, a once-prosperous polity now trying to persuade its once-trusting creditors that it is actually solvent.
–James Grant – Time Magazine 2016
- If the US became unable to service its debt, it would lead to a sovereign default… [which] would be a cataclysmic event globally. In financial markets terms, it would dwarf anything we have seen in 2008 or even 1929… Interest rates in the US (and by extension around the world) would rapidly rise. It would be difficult for businesses to get credit and the economy would grind to a halt, resulting in mass unemployment.
–Alan Clement, Investment Bank VP
- A default would upend money markets, destroy bond funds, slam the brakes on lending, cause interest rates to spiral, make our banks insolvent, and deal a blow to our foreign trading partners and creditors around the globe; all of which would throw the U.S. and the world into economic disarray.
–Matt Nestro
- Many who lack vision will say that it will never happen and those who decide to live unprepared should consider the following: Failure to prepare today will increase the magnitude of your suffering tomorrow.
–David Meyer
- “Time is running out fast. I think we have maybe a few months — it could be weeks, it could be days — before there is a material risk of a fundamentally unnecessary default by a country like Spain or Italy which would be a financial catastrophe dragging the European banking system and North America with it.”
–Willem Buiter, Citigroup chief economist
- What are the consequences of a US default? No one really knows exactly what would happen, but the likelihood is that markets around the world would plunge and global interest rates would rise… In the US, Goldman Sachs estimates that $175bn would immediately be withdrawn from the US economy and it could lead to a very deep recession.
–Kim Gittleson, BBC
- In 2009, Iceland defaulted on $62 billion in debt incurred by banks it had nationalized. The country’s GDP was only $14 billion. As a result of the banks’ collapse, foreign investors fled Iceland, prompting the value of its currency, the krona, to drop 50% in one week. This created massive inflation and soaring unemployment.
- “We all know that 97% of the money in the world doesn’t exist and that’s thanks to Fractional Reserve Banking, or should I say fictional reserve banking.”
–Arun D. Ellis