Inflation The Key Prior Indicator Towards The Next Great Depression — How to prepare

Monday, September 28, 2015
By Paul Martin

by SUBURBANPREP
PrepperFortress.com
SEPTEMBER 27, 2015

What keeps me awake at night is the prospect of a financial collapse. Unless something dramatically changes in the world economies, I believe the next great economic depression is coming soon. If you life in Argentina, Greece or Spain, the depression has already arrived and millions are suffering from it. With 50% youth unemployment in Spain, cancer patients in Greece with no access to chemo drugs, or the malnutrition of Argentina’s underclass children, economic depression is real, painful, and reduces life expectancy.

Portugal and Italy, these beautiful countries, are on the edge of entering their next economic depression. How far behind is Great Britain and the USA from their great depression? Give the creativity of their leaders to delay, but not solve, their debt problems, my sense is we are 3 to 5 years away from our great depression. And when Great Britain and USA enters their next great depressions, the entire world, including China, will be dragged down. Some believe the China will ride out and become strong in the next great depression, but I do not hold that opinion. The capacity of China’s manufacturing sector is provisioned as an export economy. When Europe and North America enters their great depression, trade with China will fall off a cliff to minimal levels. Will China be able to make the difference with internal demand? I’m doubtful.

The political and economic leaders in USA and Euro feel that the solution to a debt problem is more debt. A some point in time, the national credit cards bills come due, no new credit cards can be opened, and sources for funding for new national debt will dry up. To delay the inevitability, USA and Euro zone are expanding the supply of money, through indirect mechanisms. The reason inflation is not readily recognized is that we are in a current period of deflation, where the value of real estate, businesses, and national assets are decreasing in value. Inflating and expanding the supply of currency hides the real deflation of many assets. But what is not deflating is the cost of day-to-day living expenses. My family’s groceries bills are going up, up, up every month. I’ve been closely monitoring the cost of long-term storable food, where the costs have dramatically increased the past two years. Clothing, automobiles, electricity and medical costs going up, up, up.

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