(The Economic Collapse Blog)—There is a tremendous disconnect between the economic numbers that the government is giving us and what most Americans are personally experiencing on a daily basis. The government says that inflation is low, but the cost of living just continues to spiral out of control. The government says that unemployment is low, but Challenger, Gray & Christmas says that the number of layoffs in the U.S. was up 98 percent last year. The government says that the economic outlook for 2024 is positive, but companies all over America are acting as if extremely hard times are ahead. So who are we supposed to believe?
Personally, I trust numbers that come from private sources far more than numbers that come from government sources.
For example, a survey that was just conducted by Bankrate discovered that 56 percent of all U.S. adults do not have enough money to handle an unexpected expense of $1,000…
A majority of Americans say a $1,000 emergency expense would be too great of a hit to their savings and that they could not afford it, according to new data released Wednesday.
Bankrate’s latest survey results found 56% of U.S. adults lack the emergency funds to handle a $1,000 unexpected expense and one-third (35%) said they would have to borrow the money somehow to pay for it.
More than half the country is literally living on the edge of financial disaster. That is crazy. Another survey has found that much of the nation barely keeps any money in their bank accounts…
Nearly half of Americans have $500 or less in their savings accounts, an amount that leaves them vulnerable to unexpected expenses, according to a GOBankingRates survey of 1,063 U.S. adults conducted in November 2023.
About 29% of respondents have between $501 and $5,000 in their savings accounts, while the remaining 21% of Americans have $5,001 or more.
Few hold much cash in their checking accounts as well. Of those surveyed, 60% report having $500 or less in their checking accounts, while only about 12% have $2,001 or more.
Most Americans would be financially wiped out by just one major accident or emergency.
The vast majority of us are just barely scraping by from month to month, and the rapidly rising cost of living is making that increasingly difficult to do.
One woman recently found a Taco Bell receipt from 12 years ago, and she discovered that prices are now approximately three times higher than they were back then…
A TikTok video by a user who found an old Taco Bell receipt has gone viral – as Americans realize prices are now almost three times higher.
The old receipt showed that – 12 years ago – Americans could buy TWO of the chain’s beefy five-layer burritos for $2.59 including taxes.
Today, those same burritos cost about $3.69 for just ONE. That doesn’t include tax, which can vary across the US. So too can the base price.
The government continues to insist that inflation is “low”, but everyone knows that is a big fat lie. Insurance rates have been spiking at a particularly alarming rate. One man in Las Vegas was horrified when his auto insurance bill shot up by 72 percent in just eight months even though he had no accidents and no tickets…
They say ‘What happens in Vegas stays in Vegas’ – but the eye-watering auto insurance bill city resident Simon Edwards recently received is just one example of the staggering rises in premiums consumers are facing all across the US.
The 2012 Mazda 5 owner was shocked to find his monthly bill from Geico had rocketed up from $130 last April to $223 now – a rise of 72 percent in just eight months.
‘I’ve been in no accidents, no tickets, been with Geico for many years,’ a perplexed Edwards told the Wall Street Journal.
Another man recently posted a video on TikTok in which he ranted about how the cost of literally everything is absolutely soaring…
Four years ago my rent was $1,200 a month at a luxury apartment complex”
“It is NOW $2,100, not even including utilities”
“3 years ago my electric bill was averaging $45 now it’s averaging $125…”
“I went to the grocery store yesterday and got 3 bags of chips, some ground turkey and some vegetables and it was $67 DOLLARS?!”
U.S. consumers are being squeezed like never before, and as a result debt levels have been rising to unprecedented levels.
For example, unpaid residential utility debt in the U.S. rose to a new all-time record of 20.3 billion dollars last year…
Bloomberg cites a new report from the National Energy Assistance Directors Association that reveals US household utility debt hit a record as an alarming number of Americans can no longer afford heating and cooling their homes.
NEADA said one out of every six ratepayers is behind on energy bills, adding residential utility debt hit a new record last year of $20.3 billion.
Please don’t let anyone tell you that the U.S. economy is in good shape. Most Americans are really hurting in this economic environment, and conditions continue to get even worse.
As I discussed yesterday, large companies all over America are feverishly laying off workers. In fact, earlier today we learned that even eBay is now laying people off…
Online retailer eBay Inc. will cut about 1,000 jobs, or an estimated 9% of its full-time workforce, saying its number of employees and costs have exceeded how much the business is growing in a slowing economy. It marks the latest layoffs in the tech industry.
CEO Jamie Iannone said in a message to employees on Tuesday that the company also will reduce how many “contracts we have within our alternate workforce over the coming months.”
The worse economic conditions become, the more crime we are going to see.
At this point, looting has already become a way of life in some areas of the country.
In Washington D.C., a CVS store is permanently shutting down because dozens of teens would literally loot the store multiple times per day…
A Washington D.C. CVS store is shutting its doors after being repeatedly ransacked by thieves, the chain has confirmed.
The pharmacy, located in the Columbia Heights neighborhood, went viral last October when videos emerged of it totally stripped of all its products after being targeted by a teen gang.
Staff claim more than 45 schoolkids would go into the store and steal chips and drinks in the morning, after their classes and late at night. It will close on February 29, according to WTTG-TV.
If this is what is happening now, what will we see once economic conditions get extremely bad in this country?
I would encourage you to get prepared while you still can, because so much chaos is ahead of us.
We are living at a time when most Americans are literally living on the edge of disaster, and disaster is coming.
Millions will be wiped out by the economic tsunami that is approaching, and you do not want to be among the victims.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
