This Economic Collapse Will Push The US Into A 3rd World Country

About M.D. Creekmore

M.D. Creekmore is the owner and editor of TheSurvivalistBlog.net. He is the author of four prepper related books and is regarded as one of the nations top survival and emergency preparedness experts. Read more about him here.

Comments

  1. riverrider says:

    looks like its going on now, but i expect a bounce before it finally crashes later in september. i’m not an economist but i play one on the internet ๐Ÿ™‚

    • Sierra Grey says:

      @riverrider: Me, too. ๐Ÿ™‚ I play one on the Internet, as well. Nobody can know if this will be the beginning of a serious crash, or if that crash will result in what Bill Holter predicts. The ability of the central banks to keep everything floating with criminal manipulations of the markets and monetary supplies is far greater than I ever imagined. And the world has never been down this road, before, with debt through the roof. But it sure looks like we could be seeing the start of interesting times.

    • Any chance you stayed in a Holiday Inn last night? ๐Ÿ™‚

  2. I like Holter. Watched him a few times on usawatchdog. He’s right about margin calls and they are…were…at an all time high. We are a debt nation. We even borrow to invest in bubbles. IOW, we never learn even after the last closeout of Shemitah in ’08. Lol

    As I think I addresed here, I asked my wife to quit working a month ago and we got her employee sponsored IRA closed out last week. Just in time. I thought a bit more time but couldn’t be sure. I trade stocks and only own a “turnaround” and a “startup” longer term. Both unaffected by the week’s action. Must say that this fed bloated market is not reflective of the real world market prices as we know. Neither is the price of gold and silver with it’s manipulation by JPM acting as the fed surogate. Saw pm’s being sold down today but likely hedge funds selling to cover equity losses. Au/Ag should rise soon imo. What is Yellen going to do next? QE again. Start the presses! Interest rate rise in Sept? Lol. No chance.

    Savers, like me, enjoy little means of positive investments except stocking supplies to beat inflation etc. I haven’t had a mortgage since 42; I’m 57. I have no debt but all I see is folks doing the opposite of me and debt, debt, debt and they have more goods and get more services than I even care about. I don’t even have a smartphone and my last cars before I bought new were 15 and 12 yeqrs old. This country needs an enema to clean it up and I hope we get it soon but I have expected this for some time and nada.

  3. joecardio says:

    gt,
    I’m the same, my wife too. we’re savers. We dated for 6 years before we got married, both in university, then when finished, we both worked two jobs, and luckily all paid well. We knew we wanted a house, so for those six years we drove winter beaters, hardly ever took a winter extravagant vacation, we saved our money. While others had credit cards, vacations and new cars, 4 wheelers and the like, we lived modestly without having debt of any kind, not even student loans. When we bought our first house 20 years ago as kids we had almost 40grand to get ourselves started. We bought all our furniture and appliances with cash, paid for our own modest wedding cash, then put a rather large downpayment down on a fairly inexpensive home. Because we saved. When the time was right we sold our house and built a little bit larger house when we had kids. We got a great deal on the land and the contracter lowballed the estimate just so he could keep his few guys working so we got our house built for cheap, but its not a cheaply built house. Now, after, continuing to save, keeping one credit card for emergencies with no balance and continuing to buy reliable but older cars, we are in a very good place for being 45. My friends carry debt like bags of sand, many of which just upgraded their homes again, just because they wanted to keep up with the joneses and now are starting 25 year mortgages at 45 years old. They’ll have to work like dogs until they’re 65-70 until its paid off, They’ll never “own it outright”. I wonder why? What is it about needing things, and “upgrading all the time”? Because of our living style, we were safe when my job got relocated and had to switch careers. We always saw that we would be able to live on one income if anything happened. My investments were low risk and have not been touched by this slump, unlike my pals who’d brag how much they’d made in a quarter, but now are crying over their losses at a time when they should be looking to retire and downsize, but instead are left with a fraction of their worth with half a million dollar mortgages just starting to be repaid. I am glad we had the discipline and foresight to keep in mind the “what if?” and a way to sole it if “it did”. We are whistling dixie while others are crying me a river now. But hey, they have a nice house right? Be well everyone.

    • Great job, Joe and spouse.

      Yep, can’t bragg about how much we earn or how much home we have. I could talk about savings, gold, silver, lack of mortgage/auto debt etc because we worked hard but more importantly, WE LIVE WELL BELOW OUR MEANS.

  4. Hunkerdown says:

    Worldwide stocks in Asia and Europe are rebounding very good. Japan started out good, but China fell again, and pulled Japan down with it. Other than that, good financial news. However, China going down is the baby ruth in the punch bowl. If they continue to lose, as in their country going into deep depression, not just recession, then they will start taking extreme covert offensive measures to take down our grid. Therein lies our spiritual, physical, monetary, don’t bother to set the alarm clock, we are not going to work collapse. Thanks and now is an excellent time to cancel all projects great and small except increasing food, water, medical, and defensive supplies. God bless and may He keep the lights on for us. thanks

  5. Thomas The Tinker says:

    Hunker… I’m not disputing what you have said… I rather agree. It just strikes me as ‘odd’ that nations with ‘advanced’ economies tend to practice this … seemingly mindless practice of mutually assured bankruptcy and then destruction. ???

    Just stepping back and looking at the events and the directions that age old responses have taken ‘us’ over the last couple of centuries…. What is it .. ‘they’ .. say! “..When goods don’t cross boarders … Armies do…”

    I look for a bounce in markets … I’m ‘hoping’.. for a loooooong bounce. It may be pointless in the end … but it may allow some of to get out of ‘paper’ (I am) and into more solid assets (I have), pay off more debt (I am), adjust our ‘heads’ and step back and watch… what is happening rather than hopping around tearing at our hair.

    These building events are like coasting down a road into a thick fog knowing there is a series of wreaks in it but knowing the fog lifts somewhere beyond it.

    Zig…zig..Zag..coast..Zag…zagzig..zigzag..coast..zig.. zag..coast coast….

  6. Hunkerdown says:

    Thomas the Tinker: Mutually assured bankruptcy and then destruction…well put indeed. But you know, I can’t understand it either. It is beyond my comprehension why governments do the things they do. However, it doesn’t change the fact that they are doing it and we will reap the consequences. That said, I’m not in the panic mode, just getting everything organized for a quick getaway. Small towns cannot even be considered safe anymore. Abandoned, that’s the word we need here. In the military, in that long ago place, no matter what, as long as we could stay alive, we knew help would come. And in the civilian world it’s the same…stay alive…help will come…or there will be a way out. Now, it’s just unadulterated ABANDONMENT. Law enforcement in my own town says if things get so bad that they miss a paycheck then they are going home. The army is scattered out across the globe, with no way of getting home when we go down. Neighbors live as if the party goes on forever. Not singing the blues, but it is as being a Prepper of one, in my case two, because the bride is always there. Thanks God. The world would be an entirely different place if the “Joecardios” in the comment above were the rule instead of the lonely exception. Yep, entirely different. God bless and please Thomas, leave no stone unturned to immediately fill in the blanks on any preps you are lacking. Best to you and yours.

  7. The United States will never be a third world nation. No matter what happens to the economy and the dollar. No matter what happens, all the wealth and infrastructure is still here.
    I can see food distribution stopping and with that horrible hardships for many thousands of people, especially the people in big cities. But everything we need will still be here.
    We Americans are clever and resourceful people. We will reorganize and find ways to rebuild.
    I think it is possible that things could get very bad for a few months or even up to a year. I am quite sure that we will pull though it in the end.
    An economic collapse will not lead to a social collapse. Most all of us are church members, or otherwise involved in our local communities. Hard times bring people together.
    We will not tolerate any more crime after the SHTF than we do now. We will not degenerate into chaos simply because the money is no good.

    • Hunkerdown says:

      Potato Catcher: WRONG!

      • What? Me wrong?
        So, Haunkerdown are you in the United States right now? Look around. Everywhere you look are tools and infrastructure. Can you see any farms, factories, oil wells, refineries? Can you see any solar panels or wind generators? Everything we need to prosper is right here.
        We Americans are a clever and resourceful people.
        All the stuff that contributes to our prosperity right now will not go away.
        The only thing that will change is who owns it and how it is organized.
        Once again. An economic collapse will not lead to a social collapse.
        As I said. Things will be bad for a while. Maybe even as long as a year, but we Americans will come up with a new and different way to distribute goods and services.
        We are simply too innovative, and industrious to let something like an economic collapse get us down for long.

  8. TimeHasCome says:

    We live in a Caitlyn Jenner world of soft hands and soft heads . What is coming can only be described as biblical in proportions. Millions will lose their lives . City are a artificial construct of man and will be hardest hit. There has to be a handful of people that can withstand this and come out the other end to rebuild.

  9. Chuck Findlay says:

    Will an Economic Collapse Push The US Into A 3rd World Country?

    Probably not, most 3rd World nations don’t have an infrastructure like the USA does. Just the highway system alone will allow people to move products from one place to another that in a 3rd World nation would be impossible. Today we tend to expect others to do the hard work. We have become soft. But if it all falls apart you will see individuals step up and take action and rebuild. Will they make money doing this? I hope so as reward always was and will be the reason for doing things.

    Not that an economic collapse won’t bring mayhem, suffering and probably loss of life and life savings. But we will rebuild as people always have. And we have better building blocks (a foundation to build on) then any 3rd world nation.

  10. Will an economic collapse push the U.S. into a 3rd World Country? To best answer that question, I think that we must make one important distinction: the difference between a great depression and a Third World country. No nation, great or small, is immune to a great depression if that nation engages in unsavory and unsafe economic practices. We ourselves had one that lasted 10-12 years (depending on what sources you reference). As has been mentioned above, what the U.S. has that Third World nations don’t have is infrastructure; that is, both the centralization of direction of resources as well as the development and availability of the resources themselves. Barring no other events happening in conjunction with economic collapse, collapse in and of itself doesn’t destroy that infrastructure.

    The peculiar thing about great depressions is that they can make even the strongest of nations FEEL LIKE they HAVE become Third World countries. Chaos and suffering will undoubtedly ensue, but as to the opinions of total societal collapse, I would say this: no society tolerates chaos for too long. At some point, certain people will come forward and rearrange what was disassembled in an orderly working fashion. How long that will take exactly though is anyone’s guess.

    Given the above, the next question is: Can, and will, the U.S. have Great Depression II? I would say that yes, we both can and will. History has shown that we can and pretty much all of the analysis of the economic path currently being followed by the U.S. indicates that we will. The next question to be answered then, I think, is where will the U.S. be once it “sees the light at the end of the tunnel?” As far as the U.S. being a superpower, my gut feeling says that it will not be on the other side of G.D. II and that it won’t be for some time to come. Given the infrastructure mentioned above, the U.S. could certainly qualify as a developing nation again post-depression. Again, just my gut reaction.

    Thanks for reading through.

    • No way. No how.
      The U.S. will never be third world.
      If you are standing in the United States right now simply look around. Everything is made out of concrete glass and steel. It would take hundreds and hundreds of years with no maintenance at all for all our structures to rot away. Each and every subdivision in the US has its own water and sewer systems. Each subdivision has mechanics and engineers living in them. Each subdivision will figure out how to keep their water and sewer systems going.
      Our gigantic military will take action to keep the oil refineries going and assure themselves fuel for tanks, helicopters, and jet fighters. That’s for dam sure.
      The United States is peopled with educated, problem solvers who already have hands on experience at making things work.
      Our road system, natural gas distribution system, and most of the electric grid will most likely keep working or get fixed quickly. Even if the grid does go down we have thousands solar and wind generators all over.
      I am not saying that we won’t experience major hardships after the SHTF. Many of us will. There will be a lot of new problems that none of us can predict. I know too many problem solvers who will not sit around idle if there are problems to solve.
      I am quite sure we will solve them all and fairly quickly.

      • Potato Cacher,

        You misunderstand my post. I NEVER said that the U.S. would ever be a Third World country…only that the U.S. would be shaken enough to have a second great depression and take quite some time to get back to where it was pre-depression. It will get up off its knees.

        I’m not saying the building or cities themselves will disappear in and of themselves, although history has demonstrated that people take apart great structures for other structures, a la the structures of the Romans. The most real circumstance that will happen there will be people getting poorer, sicker, and more desperate.

        The problem with your assertions will be whether people are more concerned with self-preservation or collective cooperation immediately after collapse. I’m inclined to believe the former, at least for a good while. …especially considering the turns in our society in the last 50 years.

        As far as people rebuilding in their own regions: That may be the case, but if it were, then we would most likely cease to be the United States of America, as each region that comes back up would most likely resist re-nationalizing, unless the federal government ingratiates itself to each with MASSIVE rebuilding stimuluses, which it probably won’t have in an economic collapse….just MHO.

        As far as military stabilization: That may be as well, but if so, one must wonder for what purpose if the American people are impoverished and ripe for controlling and the military is still in the hands of the federal government. They may survive, but it may be at the cost of the American people and their freedom.

        As far as the alternative energy grid: Again, we are dealing with the regional vs. national issue. To date, all attempts to nationalize (that is to say, use it to provide energy for the whole nation) the alternative energy grid have failed, either ending in failure or closure of companies due to corruption (i.e. Solyndra). On the other hand, alternative energy has done fairly well to date at the regional level. I doubt that a recovering region would just give up their power (pun intended) to the federal government.

        It’s hard to say how long a great depression will last. It may be 10-12 years like our last one, or it may be longer (as some analysts, such as CIA consultant analyst Jim Rickards and financial research analyst Porter Stansberry suggest, who both say somewhere in the neighborhood of 20-25 years). I think that the most important thing to take away from that probability is this: NO ONE is too big to fall, or to fail.

Before commenting, please read my Comments Policy - thanks!

22 Shares
Share19
Tweet
+13
Pin