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Detroit is going to cut fire, police and street lights to 25% of the city! And they think they can just not officially declare bankruptcy???

http://globaleconomicanalysis.blogspot.com/2010/12/detroit-mayor-plans-to-halt-garbage.html

Here is what we posted in July - Let's see how we did.

• The Dow Jones will finish the year well under 10,000 - probably around 9500.
  • Well, not yet.  However, the Fed's program of "liquidity" has artifically propped up the Dow, despite lower trade volumes and more middle class money exiting mutual funds.  Zerohedge.com has some great info on this - expect a major "correction" by the end of February.

• Silver will finally break $20 / ounce and more people will be starting to accumulate this precious metal.
  • Correct

• The "official unemployment" rate will still be claimed to be below 10%, but real numbers (like those available from Shadowstats.com ) will show unemployment to be nearing 25%.

• Several states will have reached a state of de-facto default on their debts and President Obama will be advocating for a state government bailout.

• The issue of state pensions 'defaulting' will be in the news, with states stating that they need to revise the pension benefits owed to their state workers to something that is affordable.

• While the official inflation rate published by the government will try to hide the problem, the man on the street will start to feel the pinch of rising prices in life's essentials.

• More and more mainstream media outlets will run stories on the move to  abandon the US dollar as the world's reserve currency, as the US debt problem will reach 'critical mass.'  The Fed will admit that they are monetizing (printing money to pay for) more and more of the US debt than was first admitted.
  • Correct - Russia and China have reached a deal to trade in their own currencies instead of using US Dollars. The Fed has announced "QE2" and is printing enough money in the next few months to totally support the borrowing needs of this year's budget.

All of the following on TV (see link at bottom) proving the experts were nuts. Everything Peter Schiff predicted (along with other economists that subscribe to the "Austrian School" of economics) came true. Now Peter says buy precious metals and hold on to your hats - it's going to get much worse.

August 28, 2006 - Peter Schiff argues that a Real Estate Crash / Recession is coming ( a Recession that will last years instead of months). Economist Arthur Laffer bets him he is wrong.

December 31 2006 - Peter Schiff is laughed at on Stewart Varney's show as he predicts a Housing Crash, and the other two "experts" laugh (literally) at him.

August 18, 2007 - "Expert" Ben Stein says it is a great buying opportunity in the markets, and Peter Schiff tells him 'no way.' The other panelists all agree that "the worst is over." 

Dec 29, 2007 - Peter Schiff predicts that economy will be in a full blown recession by the November 2008 election.  Dead on accurate. The "experts" predict the Dow at 16,000 (fantasy) and Peter predicts gold at $1,000 (very close - $920).

http://www.youtube.com/watch?v=2I0QN-FYkpw

Remember the Great Depression campaign promise of "A Chicken in Every Pot" that gives us the insight into the fact that having meat with every meal was not always the case?

Not to be on an anti-capitalist rant here, but when things get so bad that factory workers' lives are endangered, like this guy who was killed in Australia*, it gives us pause to reconsider our lifestyles.

Imagine our health if we did NOT eat so much meat... Imagine how much money we could save each month for more important things.  Imagine we weren't spending $100 / month on cable TV (okay, one more "imagine" and this will sound like a John Lennon song...).

While these events are not causally related, it is an opportunity for us to think how we can cut back drastically now in order to make "the new normal" of tomorrow less of a shock.  Why not start with Meatless Mondays - serving a rice and bean dish instead.  Save money, improve your health and burnish your cooking-on-a-budget skills....

http://www.dailymail.co.uk/news/article-1335290/Indian-migrant-Sarel-Singh-decapitated-chicken-factory-accident-Australia.html

This is a great, great article! Read it and see if you can envision any scenario which does NOT involve hyperinflation...

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/5_Jim_Rickards_-_Fed_May_Go_Bankrupt.html

This post on ZeroHedge.com shows how $91 Billion has left the equity markets this year, even as the stock prices are seeming to come back. Is this indicative of people draining their retirement accounts to live on as they are unemployed?  The stocks are being propped up, allegedly, by the Fed.... Now THAT is a bubble... 

Consider these and draw your own conclusions:

1) China is now dealing with Russia w/o using the US Dollar. This was not even reported in most of the US mainstream media!!!! (You have to look up overseas reports or go to www.Drudgereport.com to get any real news)

2) China is dealing with Brazil w/o using the US Dollar. If they can get OPEC nations to accept their currency for oil, the US dollar will quickly become toilet paper.

3) The Euro bailout is now bigger than anyone thought and the Germans are upset with having to bailout the weaker economies, setting the stage for a German pullout of the European Community.

4) For 30 consecutive weeks now, money has been flowing OUT of mutual funds (Zerohedge.com).

5) Insider selloffs of stocks (that is, the selling by top executives in companies, which is required by law to be reported) is running rampant (Zerohedge.com).

6) The Federal Reserve has printed so much money that they, not China, are the biggest holder of US Debt.  How can we owe the money to ourselves???

7) The majority of people in Ireland are AGAINST getting "bailed out" by the International Monetary Fund, yet their corrupt government has agreed to terms with the IMF, enriching the bankers in Ireland (who get bailed out) and the bankers of IMF (who get rich).

8) Europeans are taking to the streets in protests over these "bailouts" of the bankers at the expense of retirees on public pensions (social security).

9) World stockpiles of food (like wheat and rice and corn) are at an all time low and commodity prices have soared - causing a certain food shortage in the 3rd World countries.  Many will starve for lack of affordable food.

10) The current US budget forecast depends on healthy growth and low inflation for the next ten years (what a joke) and even then, the debt will increase at an alarming rate...

There soon will be a "event" in our economy - a collapse that will cause a disruption in the normal flow of business. Hopefully it is just the stock exchanges and banks being closed for a few days.  However, it will probably be much worse, causing empty store shelves and food riots that will make the "Black Friday" stampedes look like child's play.  Be prepared.

We wrote about this possibley happening before, but now it is official.  Russia and China are no longer going to do business using the world's reserve currency - the US Dollar.  This is huge.  It is the offical declaration by two of the world's biggest powers that the US Dollar is done for. 

Don't look for the BMW driving, million-dollar-bonus-earning young traders on Wall Street to pay much attention to it - they can't get out of their own forest long enough to see that their days are numbered.

How will this all play out?  Well, consider that the US Dollar will soon not be needed for trade between Russia and China and that other major economic powers like Brazil might soon follow suit.  As more and more of the world's economy decides to do without the US Dollar, its importance will become insignificant.

The big shock - where it could mean a total collapse of the US economy in a single day, could happen if the OPEC countries decided to sell oil in currencies other than US Dollars.  Unlikely?  Considering that the Saudis, for example, have to pay a ransom to the super-radical Islamists each year, funding the Wahabi schools in a desperate bid to remain in power, it is quite possible that they Wahabi sect may just decide enough is enough and overthrow the House of Saud.  They would then dictate that they have had enough of enabling the United States and end the unholy alliance between the US, the protector of Israel, and the Arab States.

Whether it happens in a mad sell off or in a more gradual, orderly manner, the writing is ever more clearly on the wall.  The US Dollar is doomed.  Any assets you have that are denominated in US Dollars (like stocks and bonds) should be converted to hard assets like precious metals and other commodities. Time is running out.

http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm

Today we have learned that the big Greek bailout is going to have to be bigger - surprise, surprise.  This will further weaken the Euro and present problems with the currency wars that are reverberating around the world.  What happened?

A few months back the European Union decided to violate its charter and bail out the Greek government.  This bailout specified that the Greeks had to reduce their budget deficit a certain amount, but now that the number are in, they have fallen short.  What can the EU do?  It's like a parent who continually threatens to punish a child - the threats become laughable.

This shows us that not only with the Euro continue to be devalued, as the full extent of their financial mess becomes known, but that this devaluation will hurt the US.  A stronger dollar, which we used to want, is not desirable now, as we want other countries to buy from us to get us out of the economic hole we're in.  But if the dollar is stronger, the other countries have to pay more for our goods, thus decreasing sales and exports and stalling the "economic growth" that the government claims we have.

As the president of Brazil warned, the currency wars that we are now in are a prelude to world war.  This may sound fantastic and hard to believe, but consider that this is exactly what we have been told for a couple of years now by Trends forecaster Gerald Celente and economic gurus Marc Faber and Jim Rogers.

Just as the pitiful politicians in Washington lack the moral courage and the political will to address our red ink and bankrupt balance sheet, the Europeans lack the stomach to do what they need to do.  This is the decline of the West - as China and India begin their rise and global domination.  Taiwan's days as an independent democracy are numbered. So are our own.

Well, as we have reported here since the springtime planting season, the crop yields are going to be very low and that means higher prices for everything we eat, and for textiles made from cotton. 

In order to keep the economic news as good as possible, the Department of Agriculture gave false forecasts of the expected crops this year, while simultaneously quietly admitting that unusually wet weather had hindered the planting of crops this Spring.  This is in our blogs from earlier this year.

Now Kraft and General Mills have announced price increases will take effect by January.  Being totally victimized and overtaken by this food price inflation is purely optional.  You can stock up on non-perishable items at today's prices, before the increasing commodities prices and the mounting inflation hit hard in the first quarter of 2011.  Or, you can do nothing and just hope.  However, you would do well to remember the famous quote:  "Hope is not a strategy!"

http://www.ft.com/cms/s/0/249211fc-ec1d-11df-9e11-00144feab49a.html#axzz14v4TxfT1

That's right - Desperate People do Desperate Things and soon there will be more and more desperate people.  That's why tens of thousands of Frenchmen took to the streets and rioted.  That's why crime is on the rise... So what lessons do we learn from the Great Depression?

First off, crime did NOT skyrocket then as it is likely to do now.  Why?  The standard of living back then was much lower and they had a culture of hard work.  Today, our culture is one of "what's in it for me?"  We have people who pay public housing $150 / month rent suing to get their rent back because their housing is not nice enough!  Yes, the entitled mentality that has permeated our culture will make tough times seem simply unbearable to most Americans.  They will become desperate way before they start to actually starve....

Second, criminals like John Dillinger were heralded as heroes by many during the Great Depression. Why?  Because they robbed banks.  Banks were the bad guys - the ones who foreclosed on homes and evicted people from their farms.  The ones whose market manipulations caused the stock market crash.  Yes, Bonnie and Clyde and Dillinger and others who attacked the bankers had their fans, due to the overwhelming resentment of the population.  So what will that look like when entitled Americans see the next Great Depression?

Some of the greatest threats to the safety of your family won't come from roving bands of zombies, but rather from people in your neighborhood who freak out when things get really tough.  Mothers and Fathers who don't object to their teenagers going out and doing breakins and robberies to put food on the table will be the cause of a lot of crime.  And the people in your neighborhood can easily watch your house and know when you come and go, in order to break in while you're gone. 

Time to become paranoid?  No, that will eat you up inside.  But definitely time to think and be planning....

This article gives a very cogent rationale for how the next 24 months will usher in hyperinflation.

http://gonzalolira.blogspot.com/2010/10/signs-hyperinflation-is-arriving.html

It will be interesting, as John Mitchell of Shadowstats.org predicts a major currency crisis by Spring of 2011.....

What do they know that most people don't know?

The ratio of selling to buying is 3177 to 1 in the last six months for the top executives of US Companies.... They are selling their stocks... They are closer to the real economic news than we are - they monitor their supply chains and demand models.

Rats are jumping off a sinking ship....

Investment firm Goldman Sachs, the power of Wall Street that owns most of the politicians in Washington DC, just sold $1.3 Billion worth of 50 YEAR bonds to gullible investors offering a rate of return of about 6%.

Goldman Sachs doesn't lose - they always make out and pay their people billions of dollars in bonuses (literally, Billions with a "B").  They know that inflation will heat up big time and they have found suckers to pony up $1.3 Billion locked in for 50 years at 6.125% interest!   Those people will watch their investments become worthless within 5 years.

Remember, Goldman Sachs and their cronies on Wall Street packaged risky sub-prime mortgages into bundles and sold them, making a commission on the sale of course, and then bet against the same mortgages they sold to clients by selling them short!  Why would anyone in their right mind loan money to Goldman?  You know that if they are offering 6.125%, then that is a steal .... for THEM!

I just got three of these.  One for the front door, one for the garage entry door and one for the basement door.  Don't try to kick in any of my doors!

http://store.winner-intl.com/the-door-club-p50.aspx

Here is a GREAT video showing the foolishness of thinking that you can go live off the land if SHTF....

http://www.youtube.com/watch?v=vSQDGYuYL9c

Well, the mortgage mess fallout is beginning:  that is, the blame game.  Several large investment firms that bought bundled mortgages thinking they were a safe investment have banded together against Bank of America.*   They are saying that the mortgages they bought were misrepresented as a safe investment, and now are demanding the Bank of America buy them back - all $47 Billion worth!

For their part, Bank of America is saying that it isn't their fault (the mortgages were done by Countrywide Financial, which went belly-up and was acquired by Bank of America).

One thing is certain.  The dealers on Wall Street have long since cashed their multi-million dollar commission checks.  They always make out somehow.

* http://www.cnbc.com/id/39745128

Goldman Sachs admitted what we've been saying for a year - that the dollar is headed for a sharp decline.*  PIMCO, which runs the world's largest bond fund, is selling US Treasuries.** Considering that the Fed will announce a new round of money printing, which they call "Quantitative Easing," and their STATED goal is to increase inflation to their "target rate," it would make sense to get out of US Treasuries.  It also makes sense to get out of all US Dollar denominated assets. 

When even Goldman Sachs admits the dollar is falling, then you know that the Big Boys have already made their moves and are just waiting for the shoe to drop. 

If the dollar tanks, inflation rises and bonds become worth less and less, where should you put your money?  Think precious metals.  It's not NEARLY a bubble yet.  Think of when the NASDAQ was approaching its peak - everyone and their brother was day trading, taking home equity loans to open E-Trade accounts... The majority of Americans are now selling gold....  The Bubble will burst, as all bubbles eventually do, but it has barely begun to inflate.

* http://www.telegraph.co.uk/finance/currency/8047468/Dollar-set-for-sharp-decline-Goldman-forecasts.html

** http://www.telegraph.co.uk/finance/economics/8063303/Pimco-sells-US-Treasuries-ahead-of-QE2.html

Since we first started harping about precious metals, gold has increased from $950 to $1370 / ounce, and silver has increased from $15 to $24.

Look at the "checkbook" of the federal government and see the fundamentals.... It's only going to get worse here economically, meaning that precious metals will skyrocket.

IRA's and 401k's will be raided by the federal government soon, so consider cashing in, paying the penalty and investing in agricultural commodities and precious metals.  It may feel like a bold, risky move, but betting that the fools in Washington can somehow reverse what is now past the point of no return is really the risky bet.

It doesn't take a Rocket Scientist to see that the federal government has a HUGE vested interest in making the inflation rate look lower than it really is.  In addition to the political fallout of reporting higher inflationk, the budget takes a hit when Cost of Living Adjustments (COLAs) for Social Security have to be given.  So during the worst "recession" since the Great Depression, when food inflation is really high (but conveniently "not calculated" for the official inflation rate), Social Security recipients get no annual increase. 

This is only the beginning.  When a currency event happens within the next 24 months (some respected experts predict one will happen before June 2011), then the purchasing power of a Social Security check will be wiped out.

Be prepared and spread the word....

The exact words are "fears of a global food crisis" - that is how this article in the Financial Times starts.*

We told you this back on March 11, 2010.  It was obvious for a few reasons - not the least of which was that the US Department of Agriculture was clearly lying about their crop forecasts this year to keep commodity prices down.  Their motive: avoid inflation in food prices for political purposes. 

It was clear that the Dept. of Agriculture was lying due to the fact that there were so many counties that were declared 'disaster areas' for farmers due to poor planting conditions.  The same Dept of Agriculture that was providing a map of the US showing that the majority of the counties in the country had crop issues was, on another part of their website, telling us we had nothing to worry about.

Will we all starve?  No.  But we will experience even greater inflation in food prices than we have, and that has been as high as 18% year over year, though food and gas prices are conveniently left out of official US Inflation Statistics!

Don't be a sheep!  Keep reading here and note the sources that we quote.  Search our archives (you can use the "find on this page" function of the search button on your browser if we don't have a "Search Archives" button yet.)

Everyone should accelerate the pace of their food storage project to get as much stored now before the skyrocketing commodities prices impact the prices in the stores.

* http://www.ft.com/cms/s/0/12b06cee-d300-11df-9ae9-00144feabdc0.html

Illinois is now paying more to borrow money than Mexico.  The 5th biggest state in the country actually has a lower bond rating than Mexico, so the question is: when will Illinois default or go bankrupt on its debt?

Currently, many school districts post the amount of money owed to the state prominently on their websites or on signs outside their schools*.

California is doing the same - deferring payments to schools and counties to try and rob Peter to pay Paul.**

With the huge transfer payments to states from the federal "Stimulus" act running out, the situation will grow very dire soon. 

Preparing to be more self reliant is the only option.

*  http://www.sd129.org/ Owed $3.6 Million

http://www.suntimes.com/news/maxedout/2062131,CST-NWS-skuls22.article

** http://www.businessweek.com/news/2010-08-23/california-defers-2-9-billion-for-schools-counties.html

The Central Banks of the Eurozone have stopped selling their gold.  Doesn't sound like a gold bubble at all - if it were, they would be dumping it with plans of buying back once the price drops...

http://www.cnbc.com/id/39376353

The article mentioned below refers to massive layoffs (as many as 1 in 10 nationwide) for the banking industry, as this summer's slump on Wall Street profits took analysts by surprise.  Did they actually believe the hype, based on fairy tales of economic "stimulus" that the fundamentals of our economy suddenly changed for the better? An article like this makes it all too clear that the coming economic tsunami will catch most people by surprise, which is unfathomable.  How could any person in America run up such a huge debt, with continued annual deficits predicted for the forseeable future, and expect that everything would magically work out? The US is mortally wounded financially, and most have their heads in the sand..... Denial is not just a river in Egypt.

http://www.nytimes.com/2010/09/20/business/20wall.html

We keep trying to help friends understand why food storage (and storage of other grocery essentials) makes sense.  Here is a great quote:

“Kimberly Clark, as you probably know, makes toilet paper. And the Federal Reserve makes dollar bills. If I take a dollar bill and change it into a deposit in a bank, if I’m lucky I get 0.5%. If I buy Kimberly Clark — it owns big printing presses that print toilet paper — it gives me a dividend yield of 4%, seven times higher,”

http://blogs.wsj.com/marketbeat/2010/09/14/why-toilet-paper-is-better-than-cash/

The Swiss Franc is now worth more than a US Dollar.  In 1971, the Swiss Franc was worth only $.23.... What happened?  In 1971, we abandoned the Gold Standard and since then we have just been printing as much money as we want......

In the 1970's, Archie Bunker (from the TV show All in the Family) supported his family of four on an hourly wage of just $6 / hour.  Now he would need at least four times that.... Meanwhile, the Swiss Franc is worth 4 times as much as it was then.  If you add two plus two, you can see very easily that the Federal Reserve and the US Treasury are destroying the purchasing power of the US Dollar.  As our standard of living continues to decline, and now the decline is accelerating, countries with more sane fiscal policies are maintaining or increasing their standard of living.

Now we look at the price of Gold and Silver.  When we here at Survive2Day began talking up precious metals about two years ago, Silver was at $15 / ounce (it is now $20.50) and Gold was under $1000 / ounce (it just hit $1270).  This is just the beginning....

China and Russia are beginning to conduct trade in Rubles and Yuan, totally bypassing US Dollars.  This is HUGE that two major economic superpowers are dumping the dollar for trade.  The value of the US Dollar is set to suddenly collapse; more likely in the matter of a couple of days rather than having a long, slow slide.  When that collapse will happen is unsure - although John Mitchell, the respected head of Shadow Stats, believes we have less than 12 months.

We would look for something to happen by the end of January, 2011.....  Get ready and prepare....

http://www.gata.org/node/8992

Back when it all hit the fan and the "Stimulus" was coupled with the Federal Reserve's money printing (called Quantitative Easing), experts like Peter Schiff and Jim Rogers explained that these efforts would do little to address the economic problems we are facing. 

Perhaps more importantly, they also explained that once the Fed lowered interest rates to practically zero and bought up all these assets, they would have "no more bullets" to fire if things got worse.

Well, here we are, exactly as they predicted (see article below). These experts called the financial crisis before it happened and they were laughed at.  Once it happened, just as they said it would unfold, the "consensus" was that they got lucky and everything would be fine.  Now they've called it again.

It's time for us to advise our friends and relatives that there is little time left where we will have options to prepare.  Once the inflation hits and the currency collapses, it will be too late.  There is a saying that the man who doesn't read is no better off than the man who can't read.  The same goes for those who are nodding their heads but are too timid to act.

http://www.reuters.com/article/idUSTRE67R1KP20100828

Well, we have been preaching it for over a year, and economists like Peter Schiff, Marc Faber and Jim Rogers have been predicting it for longer.  The article below shows that right now, some of the world's largest banks are looking to switch from the US Dollar to the Chinese Renminbi for trade.

The scoffers are about to be left standing with their mouths hanging open in shock and surprise. This is the time to ensure that you are poised for a dollar collapse - stock up on non-perishable food.  Your money will keep in the pantry, but in the bank it could get wiped out.

http://www.ft.com/cms/s/0/182a2b70-b130-11df-b899-00144feabdc0.html

Well, it is official!  CNBC is announcing the "Death of the McMansion."  No more oversized houses with too many rooms squeezed onto lots that leave no room for a lawn.  The era of conspicuous consumption is ending, according to this article:

http://www.cnbc.com/id/38757287

What is equally interesting, is that the "bailout" for homeowners behind in their mortgages has proven to be a big failure, with about 50% of homeowners "rescued" by the Obama plan now again in arrears.  However, this comes as no surprise to either the cynical or those who got the details about the mortgage refinance options that the government provided. 

All they did was save banks!  The government guaranteed all those mortgages that the banks were going to lose their shirts on, and it just forestalled the inevitable defaults.  The difference is that now the banks don't lose their money - good old Uncle Sam co-signed for these refinances!

This insanity could get you down - but don't let it.  Just remember, those who have the courage to see what is coming - another Great Depression - have more time and opportunity to act now to do better than those with their heads in the sand.

So get to work and reduce debt, build up your pantry with non-perishable foods, invest in precious metals and take heart.

The "economic recovery" is such that yet another major city is not able to deliver full emergency services to its citizens.  Philadelphia is now doing "rolling shutdowns" of fire stations, which means that if you live in an area served by a fire station that happens to be shut down that week, then you'll just have to wait longer for fire / ambulance service.....

http://cbs3.com/local/philadelphia.firehouse.closures.2.1837765.html

The city of East St. Louis, Illinois has had to layoff 30% of its police force, as well as a good number of firemen.  They were already on a bare bones budget, relying on the Illinois State Police to handle their homicide investigations. Budget woes are crippling more and more municipalities. Learning to be more self sufficient is becoming increasingly important.

http://www.stltoday.com/news/local/illinois/article_dfb230c2-9bf3-11df-9731-0017a4a78c22.html

There is a movie called the Final Countdown, where the aircraft carrier USS Nimitz gets caught in a time warp and is suddenly back in 1941 near Pearl Harbor a few hours before the Japanese attack on Dec. 7th.  It is interesting to watch as the characters realize that their one aircraft carrier has the firepower to destroy the entire Japanese navy, and their struggle with deciding if it is okay to intervene and change history.

Before the time warp reappears and they lose the opportunity to change history, two people get stranded on an island and are not able to return to the future.  When the ship arrives back at the port, they are met by those very individuals, who are now 40 years older and very rich.  They were able to capitalize on the fact that they knew what was going to happen in the next four decades and so they knew how to invest their money.  They got rich doing so.

We are currently in the same position.  If we have the courage to look honestly at the state of the economy, budget deficit, and unmanageable debt, we understand what is coming, and have the great fortune to know what to do to protect ourselves. History is a great teacher, and we have a Great Depression to look back on for instructions about what we need to do.

This is a great Youtube video from Peter Schiff, who predicted this economic mess back in 2006 in his book "Crashproof."  He explains what lies ahead for us with respect to interest rates and inflation.

http://www.youtube.com/watch?v=y8kDVRwq-1Q&videos=MVQ7l_I60tc&playnext=2

Hundreds of thousands are without power and 1.8 million have water restrictions.  Just another great illustration of what we prepare for!

http://www.wtop.com/?nid=25&sid=2008840

Very interesting Youtube video from a guy in California whose neighborhood is FULL of foreclosed homes with people living in them without utilities.

http://www.youtube.com/watch?v=sHQXU9Kzgr8&videos=ooeoGWx6Gc0

At the very least, we should all know how to cope with basic camping skills so that this wouldn't be a total nightmare.  In our book "When the Last Bubble Bursts: Survival Without the Tinfoil Hat" we teach these very skills.

Crime seems to be reaching a tipping point in Chicago. Another police officer was killed (the third in two months) and there is some evidence that suggests that the Chicago Police are being targeted for killing by gangs. Whether that is correct or not, the recent killings have brought to light that the Chicago Police Dept. is currently undermanned by  over 2,000 officers, on a force that should have 13,000. According to the Chicago Sun Times police are having to "wait every day for backup."

Police morale is low and officers complain that they are so busy running back and forth on calls, they no longer have time for the community policing activities that have proven successful at reducing crime in the past.

As we mentioned a few days ago in the blog, the layoffs of Oakland Police officers has taken place.  (At the time of the blog, it just looked really probably due to budget cuts.)

The police laid off just over 10% of its officers and have now listed instances (like robbery and vandalism) where citizens are instructed to report crime online instead of expecting an officer to come out.....

Last year we had about 900,000 homes foreclosed on and this year we are looking at over a million.*  How will this affect you, even if you are employed and current on your mortgage?

More displaced people means more opportunity for social unrest.  More homes where multiple families are living means more stress. It all adds up to a situation where we need to be careful about things such as avoiding people who may exhibit road rage.  This is NOT a good time to be cutting off other drivers!  Seriously, if more people than ever are unemployed and losing their houses, that means that any given person you encounter out in public is more likely to be "on the edge" and stressed out.

Something to keep in mind....

* http://www.foxnews.com/us/2010/07/15/homes-lost-foreclosure-track-eclipse-levels-banks-work-backlog/

Call it gutsy or call it common sense, but France's parliament has just approved a bill that would outlaw the wearing of the Islamic burqa in public.  Wow, a European country that has the guts to say that insisting that women remain covered is a bad thing! If only Hilary Clinton would speak out against the subjegation of women by Isalm.

I do wonder what sort of terrorism this move will spawn, as Islamofascists decide to make a statement....

http://news.yahoo.com/s/ap/20100713/ap_on_re_eu/eu_france_forbidding_the_veil_9

This is a good video, containing actual news reports of people acting like animals trying to get bottled water after a boil order was issued in an area of Boston.

If people act like this to get bottled water just because they are too lazy to boil it, imagine if something happens that really causes an issue in the food supply!

http://www.youtube.com/watch?v=BIVVL43qPXY&playnext_from=TL&videos=seFKZeO-2tk

At midnight tonight, the Oakland CA police department faces a budget crisis that will result in the layoff of 80 officers. The Chief of Police, Anthony Batts, says that this means police officers will not respond to most "minor" crimes, such as burglary, theft or vandalim.  These crimes are going to have to be reported online!  Watch for similar developments around the country....

http://www.nbcbayarea.com/news/local-beat/Suffer-These-Crimes-in-Oakland-Dont-Call-the-Cops-98266509.html

So what happens if  you prepare and plan and some catastrophe happens and your neighbors are not prepared?  This episode of the Twilight Zone shows exactly that scenario...  It's a 3 parter, but this link is for part 3 of 3.

http://www.youtube.com/watch?v=4LXShL69Li4&feature=related

• The Dow Jones will finish the year well under 10,000 - probably around 9500.
• Gold will have risen to over $1300 / ounce.
• Silver will finally break $20 / ounce and more people will be starting to accumulate this precious metal.
• The "official unemployment" rate will still be claimed to be below 10%, but real numbers (like those available from Shadowstats.com ) will show unemployment to be nearing 25%.
• Several states will have reached a state of de-facto default on their debts and President Obama will be advocating for a state government bailout.
• The issue of state pensions 'defaulting' will be in the news, with states stating that they need to revise the pension benefits owed to their state workers to something that is affordable.
• While the official inflation rate published by the government will try to hide the problem, the man on the street will start to feel the pinch of rising prices in life's essentials.
• More and more mainstream media outlets will run stories on the move to  abandon the US dollar as the world's reserve currency, as the US debt problem will reach 'critical mass.'  The Fed will admit that they are monetizing (printing money to pay for) more and more of the US debt than was first admitted.

According to the New York Times, Illinois is facing insolvency, with a stack of unpaid bills to hospitals and schools and day care centers amounting to $5.01 Billion.

http://www.msnbc.msn.com/id/38072919/ns/business-the_new_york_times/

Illinois is not alone.  Dozens of states are borrowing billions of dollars from Uncle Sam just to make their unemployment payments.

This is not the time for fear and hand-wringing about the coming economic collapse.  This is the time for prudent preparation: both mental and economic.

Our handbook is a great first step.  "When the Last Bubble Bursts: Survival Without the Tinfoil Hat" is a guide to help anyone prepare for a Great Depression or worse.  While no one book can claim to be the end-all in preparedness knowledge, this book will get you on the road to surviving very well.

Take a step and get the book.

Well, both of us (Ed and Mike) at Survive2Day had recent power outages: one for 17 hours and one for 36 hours.  It was a great opportunity to see how prepared we were.  Some observations:

• Having all flashlights standardized to the same batteries is a lifesaver.
• LED flashlights are the greatest.
• Having extra kerosene lanterns and flashlights to loan to neighbors is a blessing, and an opportunity to model for them the preparedness mindset that we all need to have.
• Children tend to freak out a little when every vestige of civilization (all that requires electricity) suddenly is removed! Getting them to sleep was easier once the battery powered CD player was going, playing Bible stories.
• When it is really hot and muggy, a battery operated tabletop fan is a great luxury to have.
• Keeping jugs of water frozen in the freezer gives us a lot more options to prevent food spoilage. You can move some to the frig, which is the first to get too warm.
• Corded telephones and texting were the only ways to communicate - either a few cell towers were out or the circuits were overloaded. A car charger for the cell phone is a must.
• Playing board games like Monopoly by the light of a kerosene lantern provides great memories that will last the kids a lifetime.
• A quick drive through the neighborhood while listening will reveal how many neighbors have generators!

Whether it is a planned rehearsal without power or a forced power outage, living a day or so without electricity is a great eye opener.  There is very little preparation required to transform a miserable time packed with uncertainty and feelings of powerlessness (no pun intended) into a time of minor inconvenience and adventure.

According to this article in USAToday* the rate of bank foreclosures is double last  year's.  Time to panic?  No. Time to double-check your preparations.  Eliminate unnecessary spending, store food to hedge against hyperinflation, and adopt the mindset that resourcefulness will get your through the coming crisis.

This advice is about 3,000 years old and can be found in the 6th chapter of Proverbs, beginning at verse 6:

"Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest. How long will you lie there, you sluggard? When will you get up from your sleep? A little sleep, a little slumber, a little folding of the hands to rest— and poverty will come on you like a bandit and scarcity like an armed man." (NIV)

http://www.usatoday.com/money/industries/banking/2010-06-19-bank-failure-pace-tops-2009_N.htm

In this day and age of information overload it can seem like it's next to impossible to find truth. But, the more we see, the more we should realize that there is nothing new under the sun. There are just new ways of doing the same old things.

In our efforts to prepare for the uncertain times ahead, we have been focusing on the bad news. That doesn't mean our outlook is bleak. By preparing for the material needs of the future we are using our common sense. We must also try to use our less common sense from scripture...

In Matthew 6:34 Christ tells us - Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Sufficient for the day is its own trouble.

As hard as it may seem to practice, we can try to prepare without being anxious. The truth is, it's easier than you think.

If you don't know who Arthur Laffer is, just Google his name and then read this article (link is below). If Laffer is correct, next year will be very, very bad....

http://online.wsj.com/article/SB10001424052748704113504575264513748386610.html

There is a very easy way to cut your family's food budget by over 50%.  Before you roll your eyes and stop reading, just continue to the end of this post and you'll see that this is both simple and very do-able.

Supermarkets schedule all of their sales on a 12 week cycle. Any given item will have a "cycle low" at which time it is the lowest price you can get.  The coupons in the Sunday paper NEVER come out at the same time as a cycle low.  However, by combining the Sunday paper coupons with cycle lows, you can get groceries dirt cheap.

Now, most of you are thinking "I don't have time for all that."  Here's the good news:  You don't have to do it all.  There are numerous websites that do all the work for you.  Our favorite is www.JillCataldo.com.  All you have to do is save your Sunday paper inserts and check the website each week, where you will be told what to buy and which week's inserts to get the coupons out of!

Many people get several Sunday papers each week in order to have several copies of all the coupons, enabling them to really take advantage of the specials. As an example, a friend of ours never pays for shampoo or toothpaste, instead using the "register rewards" of Walgreens coupled with sales and coupons to get these items for free, time and again. Without being a 'blackbelt' couponer, one of us was able to get 4 Secret Deodorants this week at a price of $.19 each, and a $9.97 razor for $.97.

This is not the camouflage and guns and Army Surplus MRE's glamorous survival stuff.  But this is a guaranteed way to save families hundreds of dollars each month.  And the best part of it is, once you get used to beating the system, it gets addictive!