I am not a ‘doomsday’ crazy guy.
But, I have read ‘The Book,’ and I know how it will eventually all end. But, before Armageddon, I think America will also come to our end.
I know it is possible that Armageddon and the end of the world could be a couple years away, but living like it is still ten or twenty years away leads to an important set of questions:
1. Will America survive much longer as we know it now?
2. If it gets bad in America, how bad will it get?
3. If it gets bad, or gets better, what will you do?
First, $18 Trillion in debt has changed our future. We will have to star paying much more interest in the future on our debt. Our budget is almost $4 Trillion. At historic interest rates, the current US Federal interest maintenance of US debt would be between $600 Billion and $800 Billion. (1)
That would require significant cuts to Welfare and Social Security. Depending on how high our interest rates go to maintain the debt, your Social Security retirement would be worth 10% to 50% less than it is today.
Do you ask why the Democrats refuse to fix the problem? So do I. Merely rolling back welfare to 2008 levels could prevent our decline. (2)
Second, naturally a 10% hit on Social Security payments is the mild possibility. With Obama’s additional debt, our weakening economy, and any world wide demand for bigger interest payments, the US would have to cut benefits more.
Personally, I think the collapse will be slow, but steady. I do not see ‘a cliff.’ But our situation will deteriorate.
Worst case? Inflation would eat away at our income levels, and we could see five years like Spain, Greece, and Italy did. Their economic output was close to ours, and their debt problem similar. They lost around 30% of their pre-crash income value.
There would be a lot of poor Americans.
Last, how can you survive America’s coming collapse?
God will see you through. But, economic reserves will help you keep your sanity.
What do you think I missed?
(1) current maintenance at $411 Billion (http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm); current bond rates vs historic rates are 2.5% and 5% (http://learnbonds.com/historical-treasury-yields-2-year-bill-10-year-note-30-year-bond/ AND http://observationsandnotes.blogspot.com/2010/11/100-years-of-bond-interest-rate-history.html)
(2) https://luvsiesous.wordpress.com/2013/09/24/1-3-trillion-dollars-on-welfare/ and https://luvsiesous.wordpress.com/2013/09/20/the-biggest-problem-with-welfare/ and https://luvsiesous.wordpress.com/2012/04/21/why-cant-we-afford-to-feed-the-poor/