When The System Resets, You Will Not Get A Second Chance To Do It Right – We Are Heading Into A New Depression. It Is Not Coming. It Is Already Here!

Sunday, October 1, 2017
By Paul Martin

WebNewsOrder.com
October 1, 2017

We are heading into a new depression. It is not coming. It is already here but we are only in the beginning so it may not be easy for many people to see just yet. Once it is easy to see it will be too late for any meaningful actions to mitigate the effects. Just as you must prepare for a tornado ahead of time, you must prepare for economic conditions early.

We have 20 trillion in debt, over 200 trillion in unfunded liabilities and over a quadrillion in derivatives held by the banks. Our GDP is only about 17 trillion a year and world GDP is only about 60 trillion. It does not take a math wiz to realize that even if we are not paying any interest at all on this massive debt, there is no way to ever pay it all back short of some type of default.

That is what depressions do. They wipe out all of the misallocation of resources and bad debt and provide a reset for the economy. These resets can be relatively easy or they can be very destructive depending on the amount of misallocation that is present in the system. The amount of debt, brought on by decades of unrestricted credit creation, is the largest in history. That means we are in for a very bad ride in the near future.

Much of the money that people think they have is really only made up of digits in some computer somewhere. The banking industry has already taken this money for its own use. To eliminate the need to ever give it back to the rightful owners they must destroy these digits. That is what the new bail-ins are all about. They can at some point just wipe all of those digits out of existence and say tough luck suckers.

The depression of the 1930’s was a deflationary one in nature. People lost their jobs, prices fell and cash was king. People holding bonds did very well. In an inflationary depression, prices rise, people will get paid in increasingly worthless paper and bonds will collapse. Banks will enact bail-ins to stay solvent and people will go broke while holding piles of cash.

In the end the inflationary depression will end with the currency collapsing and people losing everything they have that is not fully owned. Eventually we will see deflation as prices fall due to the destruction of the monetary system. At this point most people will be financially devastated. Those that make it to this point with their wealth in tact will be the new wealthy class.

So how can a person survive something like this? You simply need to focus on the needs of your family over this period of time. If you can provide the needs of your family regardless of the prices at the time, you will make it through the worst of times, This means you need a plan to provide these items to your family whether prices are rising or falling. If you have a years supply of food, it does not matter what the current price is, you will have the means to feed them.

If your home is paid for, your car is paid for and you have a supply of energy or a way to produce it yourself, it will not matter to you how fast prices are changing or how much money you bring home every week. You will be able to live outside of the rapidly changing economy. The rapid changes that will destroy others will only provide you a glancing blow.

Those that survive on credit will be devastated as their access to credit is cut off and they become unable to continue making payments on their possessions. They will be devastated even if they still have a paying job. For those that expect to survive on their savings and pensions, they will find those accounts empty following any bail-ins.

The Rest…HERE

One Response to “When The System Resets, You Will Not Get A Second Chance To Do It Right – We Are Heading Into A New Depression. It Is Not Coming. It Is Already Here!”

  1. OldReb

    I guess I am in good shape, I have never bought anything on credit in my near 80 years and have viewed anyone who did as fools. This is a long standing family tradition going back to 16th century Scotland. I was born 1-1-1939 the worst year of the depression. We never felt the effects of it and pitied those who did. Everything stops now will be a minor inconvenience, no TV or internet but otherwise life as usual. I have solar/battery backup, kerosene, candles, food and water for my descendants for hundreds of years. I’m not a prepper, have just always lived mostly from nature. One of my Great Uncles lived 97 years and spent under $5.00. ‘Gramps called them spendthrifts as he lived to 112 and spent nothing. No one in my family tree ever worked for wages as nature supply’s everything needed.I have been a bit more greedy having spent $10,000.00 in near 80 years.

    #3398703

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