Sunday, January 23, 2011

2011 Economic Collapse?

HERE is one of hundreds of articles talking about how our economy might collapse- sooner, rather than later.

I am sure that by now all of us agree we are in a crisis situation in regards to the economy and the national deficit.

I, however, have lost faith in both political parties to do anything about it.

Both parties caused this. One party did not do more damage than the other- and I will not argue about that. BOTH sides are responsible.

The worst part, though, is that NEITHER side is doing anything about it.

They both promise to.

They both say they will.

But nothing gets done.

Even the beloved (HA!) Tea-Partiers have vowed to reduce the budget by only 30 billion. That's 1.67% of the deficit. That's the same amount the Fed prints every MONTH. Meaning: Even the tea partiers are completely unwilling to do anything that will actually reduce the deficit.

I have completely lost faith in both parties to make the hard choices and actually do something meaningful to reduce the deficit. Why? Because it is political suicide to be the one to push the austerity measures that must be done to get our budget anywhere within reason. Remember what happened in Greece? Spain? London? It's not pretty for the ones who actually do the hard things.

So neither party is doing it.

Honestly, I don't understand all the numbers and how it all works and I don't get everything that is happening. But, I know it's not good- and it's not going to get any better anytime soon, regardless of who is in power.

What do I think will happen?

I think China will call our debt and leave us begging for mercy as the dollar becomes worthless. I think there will be massive riots in America as food becomes the most precious commodity. I think we will have to create a new currency and start over- which will most certainly be painful for all of us.

Yes, I think it's that bad.

How bad do you think it is?


okbushmans said...

Wow. Christina. You took the words out of my mouth! Both parties (including Tea) have financial proposals that will be like a drop in a bucket that turns into black hole! And China is calling, and just like you said, we will be at their mercy. We need REAL solutions, REAL fast. Thank you for not pointing fingers, because that just wastes time from actually discussing solutions. Have any? This is on such a grand scale, where do you begin!?

okbushmans said...

Christina, did you see the spot on 60 mins about the states? Frightening. Here's a link:

Christina said...

Thanks for the video OKB- I knew the states were in trouble, but when she talks about how they will be defaulting within 12 months, that's pretty scary. That was a good synopsis of where the states are at- and it's not pretty.

I think the only thing that could possibly save us is if both parties jointly came out with massive austerity measures- things like no more deductions on your taxes, no more tax breaks for the rich, huge cuts in pensions and huge job losses in the government sector and no more unemployment benefits. I don't want any of these to happen, either, but I think there is no choice. But, BOTH parties have to be completely united in this- not one person from either party can step up and say, "they did this- it's their fault." It has to come from both parties, in my opinion.

Which I don't think will ever happen. So, in the end, I guess it boils down to our own personal preparedness and what we are doing in our homes to prepare for what is going to come. Food storage, savings, being free of debt, etc. My husband and I are even cashing out my retirement to put toward our house to try and get out of that debt within the next 10 years- but, that could be too late. It sure seems like it will be.

This is definitely something that is very scary. I can not believe that more people are not talking about it. I guess it's easier to not believe it is really happening and wait until we are forced to- like the lady in the video said.

Lula O said...

We just have to do the best we can Christina. You should probably not read too much on the internet though. It's kindof like when you wake up in the middle of the night and worry too much about stuff that may not ever happen, like the world may end at any moment, or did I mail the house payment, and brush my kids teeth. It's always much better in the morning. I try to keep that in mind when I start to freak out about something. And it's like what Stewart said. The media sometimes makes mountains out of mole hills. So I wouldn't build the bunker yet. Every generation seems to have some sort of crisis. We've overcome them before, and we'll do it again.

Lula O said...

And I just read an article on our dealings with China. It's doubtful they'll come calling anytime soon. Who else would buy all their crap?

Christina said...

You are probably right- I do need to stop reading articles:) I actually have cut way down, because it is so incredibly depressing!!

I do have a question for you- and I am asking with all sincerity. I know sometimes it's hard to hear the tone of a coomment, but imagine me asking because I really want to know your thoughts- I know you are very knowledeable about state and federal budgets and how they work, so I am genuinely interested.

How do you think things will go down? Do you think we will be able to avoid states going bankrupt and avoid a freefall of the dollar? What do you see things happening so that we can avoid the doomsday scenario?

Curt said...

Excellent're finally coming around to Glenn Beck's way of thinking!

Lula is correct. Don't worry, set our own houses in order, stay informed, and vote for those candidates whose values are aligned with ours.

Sorry, couldn't resist the Glenn Beck jab. For the record, we don't watch him. He's too theatrical for us. HOWEVER, he did say these same things over 18 months ago. He warned of everything that is happening now. And the media lambasted him as a "fear mongerer" full of hate.

Christina said...

You're mean, Curt:)