Wash. DC Financial Crisis - Prepare While There Is Still Time
Preppers have heard about a collapse date for at least 30 years but the doddering DC establishment, the Swamp, has managed to keep things from completely cratering mostly by borrowing more money. That time is now at an end. The US Treasury now has $168B in cash or about 50-60 day’s worth of activity. The National Debt is now at $19.96T (yes that’s Trillion) dollars or $166,000 per taxpayer. The current borrowing authority is $20T. Game over, checkmate and let me now tell you why.
To borrow more money the Congress has to approve a higher borrowing limit. Think about raising the spending limit on a credit card. Currently at $20T a logical increase to get through the 2018 elections would be $2T.
This will not happen with the Freedom Caucus of the GOP in the House and Senate; their whole purpose is to reign in Federal Gov’t spending and they would resign before voting to raise the debt ceiling.
President Trump may be able to get a debt ceiling increase but he would have to “work” with Democrats and the results would end the Trump mandate to drain the swamp and likely result a crisis in Washington with President Trump now accepting many Democratic proposals to get anything passed. The Wall, gone, Tax Cuts, gone, Obamacare stays, immigration unchecked and on and on.
If President Trump stays true to his campaign and cuts spending, Wall Street will crash and since the President tied himself to the run up in stock prices, well he gets the blame. The US will have to cut spending in ways that it has not since WWII to meet its debt obligations and stay under the $2T debt ceiling. Chaos in the streets will result when Welfare is cut.
Either scenario results in chaos and we are probably less than 90 days away at this point.
Depending on where you are in the US, there is still time to grow some food in the backyard, on a neighborhood vacant lot (call it a community garden) and to stock up on non-perishables to the extent you can afford to do so. The following from EasyPrepper.net might help:
- Wise 7 Day Food Bucket includes Entrees, Breakfasts and Drinks in camping pouches for $80 on sale through August 9th.
- Mountain House 14 Day Food Supply 100 servings of world famous Mountain House Foods for $235
- Wise Foods Entrees and Breakfast 120 Servings of Each 120 Entrees and 120 Breakfasts from top quality Wise Foods $384 on sale through August 9th.
These are “grab and go” buckets that you can easily carry with you. As they are in camping style pouches, you can also use for a backpack or store at a remote location. This is bedrock food insurance which you should have before there are potential disruptions to food stores, or the streets are filled with unhappy hungry people.
In addition, take advantage of any sale at the grocery store on canned good, bulk items like flour, sugar, salt, rice, pasta etc. If we enter a crisis (even a small crisis) prices will rise.
Wetz Canned Beef and Pork is a premium product that we carry at EasyPrepper.net with hormone free, anti-biotic free beef and pork family farm raised and packed with only sea salt. Fully cooked, I can tell you these are delicious and make tacos, chili, burrito’s, Asian dishes taste incredibly. I can’t say enough good about Wertz. In difficult, Wertz is a huge morale booster!
If you want to know more you can reach me at email@example.com or comment here on the blog. DC's Financial Waterloo is a great article from former budget director David Stockman on the dilemma faced by President Trump. Good luck and I will keep blogging as long as I can but I suspect it starts getting very sporty around October-November 2017.
- Thomas Walker