Apr 15, 2011

5 Ways US Bankruptcy Will Affect You (and Me)

From http://rightwingnews.com/john-hawkins/5-things-that-will-happen-to-you-when-america-goes-bankrupt/ or click here for details

1) Your life savings could be reduced to nothing almost overnight. Inflation is a fact of life.  Thomas Sowell has noted, “As of 1998, a $100 bill would not buy as much as a $20 bill would buy in the 1960′s.” That’s under normal circumstances.

However, the thing governments have traditionally done when they simply can’t pay their debts is print more money. The problem with this is the further you expand the money supply, the less the money you already have on hand is worth. This can wipe out the savings of a lifetime in a relatively short period. Imagine spending billions of dollars just to buy a loaf of bread.

My comment: invest in commodities e.g. gold or silver or alternate currencies that are more stable.

2) Your taxes will skyrocket. We’ve been conned into thinking that we can fund a massive government on the backs of the rich. This is simply not so. It’s not working today and it’s not going to happen in the future. We cannot tax the rich enough to pay off our debt or even enough to keep the government going long-term. Even if we could, the rich have the resources to flee the country for greener pastures if they’re being taxed into oblivion. The middle class? Not so much.

My comment:  use tax shelters when possible.  Have a home based business of some sort.

3) Your life could be in danger. If the government goes bankrupt, you’ll have an extremely angry, confused, and frustrated populace that has little faith in its leaders — combined with a horrific economy and a reduced ability of the government to keep order. Under those circumstances, widespread rioting and violent crime seem entirely plausible.

My comment: buy a gun while you still can.  With Liberals in charge, it is conceivable that owning a firearm will become illegal.

4) Your payments from the government will dramatically decrease or stop altogether. Contrary to what some people believe, Medicare and Social Security are paid out of the same fund that pays for everything else. In other words, if the government goes bankrupt, there is no money set aside to pay for these programs.

My comment:  adopt a healthy lifestyle ASAP.  Health is wealth.  Diet and exercise.

5) You will have a dramatically reduced standard of living. If taxes and inflation escalate dramatically, both of which are very likely if we go bankrupt, economic activity will slow to a crawl and we’ll go into a depression. We’re not talking about a “This is the worst economy since the Depression” situation that we hear every time there’s a mild downturn in the economy; we’re talking about a REAL depression. Businesses will close left and right, the stock market will tank, unemployment will soar to heights not seen since the thirties, and the government won’t be in a position to help very much.

My comment: consider relocation to the South or some other country where there is no Winter and your savings can be used to open a small business.

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