Contrary to what the mainstream media and government tell you, the United States is in the beginning stages of a total economic collapse. All that is propping up the economy is the massive inflation being created by the Federal Reserve, giving the American people the illusion of an economic recovery. The resulting economic collapse will probably be precipitated by a dollar collapse as the world is flooded with increasingly worthless dollars. Here are 5 signs of impending economic collapse in America:
- China recently announced that they will be reducing their holdings of U.S. Treasuries. This is significant because they hold about $1.6 trillion of our debt. All those dollars coming back to America could set the stage for the economic collapse, as the dollar weakens and prices rise dramatically.
- Ghost towns are appearing all over America. There are some counties with home vacancy rates over 50%. The housing market is still in terrible shape with a huge surplus from the government induced housing boom. Look for housing prices to continue falling during the economic collapse. This is bad for current home owners with mortgages but potentially good for new buyers, especially those who kept there savings in gold or silver.
- Real unemployment is still hovering above 20% nationally and much higher in some states. By “real” unemployment I mean including the statistics that the government leaves out to make the numbers look better, such as underemployed workers and discouraged people who have stopped looking for a job. The economic “stimulus” did nothing to employ more people in productive jobs and prevent an economic collapse. In fact, it made things worse by continuing to missallocate resources that free markets would have correctly utilized.
- Gas prices rose to $5/gallon in Washington, DC in April, 2011. With the combination of dollar devaluation (inflation) and conflicts in the Middle East and other factors, this could be just the beginning of a dramatic rise in crude oil and gas prices.
- According to a recent survey conducted by Deloitte Consulting, 74 percent of Americans say they plan to curb their spending in coming months due to rising prices. This could actually be a good sign if they are able to put money in savings, but the Fed’s near zero real interest rates and rising inflation will prevent any incentive for saving.