16 Signs That Most Americans Are NOT PREPARED For The Coming Economic Collapse

This article has been generously contributed by Michael Snyder. You can follow his regular writings, research and analysis at The Economic Collapse Blog and The American Dream. Read his recent book The Beginning of the End to get an idea of what America may look like in the very near future.

Disaster-Is-Coming-300x300Sometimes I think that I sound like a broken record.  I am constantly using phrases such as “get prepared while you still can” and “time is running out”.  In fact, I use them so often that people are starting to criticize me for it.  But the truth is that only a small percentage of people out there are actively taking steps to get ready for what is coming.  Most of the country is not prepared at all.  In many ways, it is just like 2007 all over again.  There were many people that could see what was about to happen and were doing all they could to warn people, but most did not listen.  And then the great financial crisis of 2008 struck and millions of people lost their jobs and their homes.  Unfortunately, the next great wave of the economic collapse is going to be even more painful than the last one.  It is imperative that people get prepared for what is on the horizon, but for the most part it is just not happening.

A lot of it has to do with the fact that we have such short memories and such short attention spans in America today.  Thanks to years of television and endless hours on the Internet, I find myself having a really hard time focusing on anything for more than just a few moments.  And we are accustomed to living in an “instant society” where we don’t have to wait for anything.  In such a society, we are used to “news cycles” that only last for 24 hours and very few people take a “long-term view” of anything.

And another one of the big problems that we are facing is something called “normalcy bias”.  The following is how Wikipedia defines it…

The normalcy bias, or normality bias, refers to amental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster occurring and its possible effects. This often results in situations where people fail to adequately prepare for a disaster, and on a larger scale, the failure of governments to include the populace in its disaster preparations. The assumption that is made in the case of the normalcy bias is that since a disaster never has occurred then it never will occur. It also results in the inability of people to cope with a disaster once it occurs. People with a normalcy bias have difficulties reacting to something they have not experienced before. People also tend to interpret warnings in the most optimistic way possible, seizing on any ambiguities to infer a less serious situation.

Over the past several years, the U.S. economy has been relatively stable.  And that is a good thing.  But it has also lulled millions upon millions of people into a false sense of security and complacency.  At this point, most Americans consider 2008 to be a temporary bump in the road, and most assume that the U.S. economy will always be strong.

Unfortunately, that is not the truth.  As I have written about previously, the long-term trends that are destroying our economy have continued to get worse since 2008, and none of the problems that caused the last financial crisis have been fixed.

We are steamrolling toward the edge of an economic cliff, and most people in our entertainment-addicted society are totally oblivious to what is going on.  So they are not doing anything to get ready for the immense economic pain that is coming.  The following are 16 signs that most Americans are completely unprepared for the coming economic collapse…

#1 Could you come up with $ 2000 right now?  According to a shocking study that was just released, most Americans could not

Forty percent of individuals in the U.S. said they could not or probably could not come up with $ 2,000 if an unexpected need arose, according to research by Atif Mian of Princeton University and Amir Sufi of the University of Chicago Booth School of Business.

#2 In that same study, Americans were asked the following question…

“Do you have 3 months emergency funds to cover expenses in case of sickness, job loss, economic downturn?”

An astounding 60 percent of people that responded said that they do not.

#3 Another study found that less than one out of every four Americans has enough money stored away to cover six months of expenses.

#4 Some people are actually trying really hard to get ahead, but admittedly that is really tough to do when we are all being taxed into oblivion.  In fact, it was reported this week that Americans now spend more on taxes than they spend on food, clothing and housing combined.

#5 Right now, more Americans are dependent on the government than ever before.  In fact, according to the U.S. Census Bureau, 49 percent of all Americans live in a home that currently gets direct monetary benefits from the federal government.

#6 It is estimated that less than 10 percent of the entire U.S. population owns any gold or silver for investment purposes.  That is a stunning number.

#7 It has been estimated that there are approximately 3 million“preppers” in the United States.  But that means that almost everyone else is not prepping.

#8-16 The following are nine more statistics that come from a survey conducted by the Adelphi Center for Health Innovation.  As you can see, a significant portion of the population is not even prepared for a basic emergency that would last for just a few days…

  • 44 percent don’t have first-aid kits
  • 48 percent lack emergency supplies
  • 53 percent do not have a minimum three-day supply of nonperishable food and water at home
  • 55 percent believe local authorities will come to their rescue if disaster strikes
  • 52 percent have not designated a family meeting place if they are separated during an emergency
  • 42 percent do not know the phone numbers of all of their immediate family members
  • 21 percent don’t know if their workplace has an emergency preparedness plan
  • 37 percent do not have a list of the drugs they are taking
  • 52 percent do not have copies of health insurance documents

What do you think is going to happen to these people once the economy collapses and there is chaos in the streets?

How are they going to survive?

After all of these years of writing about the coming economic collapse, nothing has changed as far as the long-term outlook is concerned.

We are still heading toward a complete and total economic meltdown.

But most Americans continue to have faith in the system, and the mainstream media keeps assuring them that everything is going to be just fine.

And in this “dumbed-down” society of ours, most people are perfectly content to let others do their thinking for them.  In America today, only one out of every six Americans can even find Ukraine on a map of the world.  That is how far we have fallen.

In this day and age, it is imperative that we all learn how to think for ourselves.  The foundations of our society are crumbling, our economic system is failing and the blind are leading the blind.  If we do not learn to make our own decisions, we are just going to follow the rest of the herd into oblivion.

In addition, we all need to start taking a long-term view of things.  Just because the economic collapse is not going to happen this month does not mean that it is not going to happen.  When you step back and take a broader view of what is happening, it becomes exceedingly clear where we are heading.

Sadly, most Americans will never do that.

Michael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years. Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream. If you want to know what things in America are going to look like in a few years read his new book The Beginning of the End.

 


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

Kerry blames Israel for collapse of peace talks. Ridiculous. This is part of a troubling pattern of this White House alienating America’s friends & appeasing our enemies.

Secretary John Kerry.

Secretary John Kerry.

(Washington, D.C.) — UPDATED: Over the past year of the peace talks, Israel has consistently taken practical, concrete steps to show goodwill, including releasing hundreds of Palestinian prisoners, some of whom were terrorists with blood on their hands.

Israel took such measures even though Palestinian terrorists have continued to fire rockets and missiles at innocent Israeli civilians over and over and over again.

What practical, concrete steps did the Palestinian leadership?

The sad fact is that Mahmoud Abbas gave concrete nothing in return.

What’s more, he outright refused to even consider recognizing Israel as a Jewish state. Then he embarked on unilateral steps to create an independent Palestinian state in direct defiance of the terms of the peace process which call for a negotiated settlement. Then he refused to continue the peace talks beyond the April 29th deadline without Israel releasing thousands of more prisoners.

Yet now Secretary of State John Kerry is blaming Israel for the breakdown of the talks. Consider the latest headlines:

This is ridiculous, bordering on the infuriating. Netanyahu appointed good people to negotiate in good faith. Israeli Justice Minister Tzipi Livni, the chief negotiator, is not exactly a right wing Likudnik. She is part of Israel’s center left. She wanted a deal. She worked hard for a deal. Yet she became increasingly frustrated by the resistance of Palestinian leader Mahmoud Abbas to bring serious ideas and compromises to the table, and then had to speak out when Abbas decided to sign 15 international treaties to unilaterally creating a Palestinian state.

“The past week wasn’t a good week and we will have to fight to see how we can correct and move forward,” said Livni on Israel’s Channel 2 news. “It isn’t simple. It’s very complicated. This is a real crisis.”

Bloomberg reports that “Livni called Palestinian President Mahmoud Abbas’ bid last week to join international bodies ‘a violation and a big mistake that will make it very difficult to go back to normal.”

When Abbas has burned Tzipi Livni — a woman deeply committed to a two-state solution — you know things have really gotten bad.

Yet once again Kerry is blaming Israel.

Sadly, this is part of a troubling pattern of the Obama administration alienating America’s friends and appeasing our enemies. Mr. Obama and Mr. Kerry have invested enormous amounts of time in trying to force enormous Israeli concessions to create a final peace deal with the Palestinians, even though everyone told them the Palestinian leadership was not prepared to deal seriously. Yet the most important mission in the Middle East right now is stopping Iran from building nuclear weapons, yet the White House and State Department are treating Iran with kid gloves.

As former Senator Rick Santorum and I stated last week:

What troubles us most is the feckless, rudderless foreign policy of President Obama. Do our enemies fear him? Do our friends trust him? To the contrary, Mr. Obama is presiding over the systematic collapse of American credibility around the globe, from the Middle East to Russia to Asia. This vacuum of leadership is creating a very dangerous global environment and must be corrected quickly.

 

We believe in a bipartisan approach to American foreign policy. The challenges we face are serious but manageable if we unite as a country around a policy of peace through strength. That said, we also believe in the important role of a loyal opposition that warns the government when it is heading in the wrong direction.

 

In the 1930s, Winston Churchill warned the world that Adolf Hitler and the Nazis represented a gathering storm that had to be stopped early and decisively lest disaster ensue. A new gathering storm is brewing, as dangerous as the last, if not more so. We need an honest, strong, principled American foreign policy now more than ever, especially when it comes to the Iranian nuclear threat. The stakes are too high for miscalculation.

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>> On April 7th, 1944, two men escaped from Auschwitz. 70 years later, novel inspired by real events is a best-seller — click here to learn more.

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Joel C. Rosenberg’s Blog

Responding to Iran: Americans are not fooled by Khamenei’s lies. But what troubles us most is President Obama’s “feckless” policy towards Iran. He is presiding over the systemic collapse of American credibility around the globe.

MEME-SecondHolocaust-small(New York City, New York) — An Iranian official this week attacked an op-ed I recently wrote with Senator Santorum for CNN.com as “ludicrous, counterproductive and unfortunate.”

You can read our original op-ed here, and the Iranian official’s op-ed here.

Here is Senator Santorum’s and my response:

The American people are not fooled by the lies of Ayatollah Khamenei and his regime. Americans understand that Iran’s illegal nuclear program poses a grave danger to U.S. national security, to Israel, to NATO, and to our Arab allies in the Middle East.  

As we stated in our column, a new poll shows that 80% of Americans fear a “Second Holocaust” if the world allows Iran to build nuclear weapons and the missiles to deliver them. Given that the Khamenei regime is one of the world’s worst state sponsors of terror, Americans are right to be so deeply concerned.

 

The regime’s response to our column would be laughable if its intent wasn’t so diabolical. Tehran is trying to use Hitler-esque spin as part of its charm offense. The mullahs are saying they just want peace and are hoping the West will surrender and ease off — or dismantle — the sanctions, even as they steadily develop the ability to annihilate their enemies.

 

What troubles us most, however, is the feckless, rudderless foreign policy of President Obama. Do our enemies fear him? Do our friends trust him? To the contrary, Mr. Obama is presiding over the systematic collapse of American credibility around the globe, from the Middle East to Russia to Asia. This vacuum of leadership is creating a very dangerous global environment and must be corrected quickly.

 

We believe in a bipartisan approach to American foreign policy. The challenges we face are serious but manageable if we unite as a country around a policy of peace through strength. That said, we also believe in the important role of a loyal opposition that warns the government when it is heading in the wrong direction.

 

In the 1930s, Winston Churchill warned the world that Adolf Hitler and the Nazis represented a gathering storm that had to be stopped early and decisively lest disaster ensue. A new gathering storm is brewing, as dangerous as the last, if not more so. We need an honest, strong, principled American foreign policy now more than ever, especially when it comes to the Iranian nuclear threat.

The stakes are too high for miscalculation.

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Joel C. Rosenberg’s Blog

The Reality of Collapse: “Many Preppers Will Die”

Editor’s Note: In the following article well known Balkan War survivor and developer of the SHTF School Selco shares yet more of his insightful experiences. Many of us have taken steps to insulate ourselves should the worst happen. But is that enough? Selco explains that regardless of the supplies and tools you have in your possession, you still face the very serious risk of injury or death should the system around us collapse. 

many-preppers-will-die

Why Many Preppers Will Die
By Selco

Survivalists and preppers are (or are supposed to be) by definition something like smart folks, people who do not trust mainstream bu..s..t, who follow their own path to be winners at the end.

Actually in reality truth is different.

We all like to say that we are different but just like everyone else we fall under the influence too.

How many times you or some prepper you know built or formed opinion without even checking it? How many times you bought some item and store it just because you think it makes sense, not because you know it makes sense and you check on it. It is often easier way to believe others and you can not try everything yourself of course.

One of the most stupid things or worst mistakes that you can make in prepping is to become “mainstream”. Slap label of prepper on you and you start to think you are smarter than others. You may think that preppers and survivalists can not be mainstream because it is not logical, but yes we can.

We gonna buy bug for BOB because someone said “it is best for BOB” usually without checking who is the guy who said it. Or we gonna say “I have best gun for SHTF” because someone put huge amount of money for marketing it. If most preppers look at their storage they can find items they know theory of using it, but never used it.

The problem here is not buying these things. The problem is with forming your opinion and many survivalists think they know and they have plan but that makes them in reality less flexible to consider all options.

When SHTF and you realize quickly that you have completely wrong boots (or weapon, or BOB or whatever) you maybe still can fix it if you act. Changing way of thinking (or plan…) is harder.

There was man who before SHTF was owner of few cafes, pretty wealthy man. He was involved in some crime business and you could hear from time to time how he was involved in some fight, or he was arrested, or served some time.

Sometimes he was out of the country for months or year, rumors were that he was something like professional thief, specialised for breaking into “high class” homes, jewellery and safes and similar.

Those stories were rumors only, but in his cafe in town all guests were his crew, and going there for coffee was not forbidden, but also was not bright idea. If you entered there (probably) nobody would kick you out, but atmosphere and faces there clearly would tell you that you are outsider.

In short he was something like “tough guy” in city talks. Weapons, secret gambling, prostitution etc. Guy with his crew.

On first rumors of troubles he started to sell his cafes I guess in order to leave the area, but he was too late. When SHTF, and groups and gangs started to form, he simply gave his cafe to the leader of one group in exchange for protection.

Later when that leader and group were destroyed he found himself imprisoned for some time. Lot of people around were robbed and tortured or killed.

He immediately agree to write statement that he is “selling“ all his cafes to the leader of new group, of course in exchange for the life and freedom.
They had it anyway, but they needed that piece of paper for time after war.

After that he was something like “lone crazy dude” through the rest of the SHTF period. He was nobody.

He survived everything and after that he needed quite some time, few years to prove that he was forced to “sell” his cafes.

Court gave everything back to him. Soon after that he sold everything and emigrated somewhere, probably to place with less chance for another SHTF event.

My friend talked with him before he left the country, and after some time they touched the subject that lot of people wanted to know.

Why did he go down so easy? Why did he not resist at the beginning with his crew? Why did he not had his own strong group during SHTF? Things like that.
He had original answer: “Every time they were stronger than me, I simply had to let it go”.

His story is not so unique, but I know much more stories about how folks got killed because they refused to leave their home (and run) when under attack by several people armed with firearms, while they were unarmed, or armed with pistol or knife, clearly outnumbered.

I read every day on web sentences like “having this gun will save you when SHTF” or “with this BOB you can not lose when SHTF”. Of course this is marketing crap from people who want to sell you something.

Please do not get yourself killed, or allow your family to die when SHTF just because you put your “perfect” BOB on, your “zombie survival” rifle in your hands and went out to save the world.

Or to get killed because you “draw line and here you stand your ground” for example when they attack your home or your storage. Do you really want to die just to hold onto things?

In world of survival number of people who are gonna blindly believe in their equipment, or just blindly stay where is impossible to stay are much higher from folks who are gonna take the smartest option (however bad it could look). This is why many preppers will die. Regular folks will run but some preppers take so great pride in their plan or equipment they do not make right decisions when it matters because of their ego.

You can hear me being not hero and just doing what I had to do for 8 hours in my course.

I am not the dude who is living on tree armed only with kitchen knife and big mouth. I also have BOB, BOL, equipment, weapons and plans.

But if I see that my SURVIVAL is in question I am ready to say f..k it to everything.

Sometimes to survive means not to win but to give up, and wait for next chance. Do not expect to be winner all the time.

You can follow Selco’s story at SHTF School and learn how he survived one year in hell. 

selcobanner

More Excellent Reading From Selco:

A Survival Q & A: Living Through SHTF In the Middle of A War Zone

Advice From A Collapse Survivor: “RUN!” From Major Cities

Collapse Reality: “If I Had to Be an Animal, I Was an Animal. It Was About Survival.”


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

Nationwide Home Sales Collapse: There Is No Recovery and This Chart Proves It

Now may be the best time to buy a home. At least that’s what the majority of real estate agents in America will tell you if you ask them how the housing market is doing.

They’ll cite various statistics and give you a “feel” for the market from their personal experiences to convince you this is the case. But if you’re paying attention, then it should be clear that there is, in fact, no recovery in the housing sector. And any gains we may have seen over the last few years are nothing short of a Federal Reserve fueled mirage, much like the stock market.

The following chart from Bank of America is indicative of some serious fundamental problems, not just with the housing market, but the broader economy as a whole.

first-time-homebuyers

If you ask the experts they’ll give a host of reasons for why sales are down, as well as prognostications for why the real estate market is about to turn the corner and head back to new highs.

The weather, of course, is always to blame for lackluster sales in homes and consumer products, and that, apparently, is the case once again. But the National Association of Realtors has, for the first time ever, indicated that there is another key challenge facing home buyers.

Student debt appears to be a factor in the weak level of first-time buyers.

“The biggest problems for first-time buyers are tight credit and limited inventory in the lower price ranges,” he said. “However, 20 percent of buyers under the age of 33, the prime group of first-time buyers, delayed their purchase because of outstanding debt. In our recent consumer survey, 56 percent of younger buyers who took longer to save for a downpayment identified student debt as the biggest obstacle.”

Brown notes the survey results are for recent homebuyers. “It’s clear there are other people who would like to buy a home that are not in the market because of debt issues, so we can expect a lingering impact of delayed home buying,” Brown added.

NAR via Zero Hedge

In short, we’re broke as a nation and we’re broke as individuals.

A recent micro documentary that discussed America’s College Debt Bubble in detail predicted that we would soon begin seeing the fall out from trillion dollar student loans. Apparently, that fall out has already begun.

But not to worry, because housing experts indicate that we may soon see home sales and prices start to rise, an effect that will be fueled by more jobs and rising incomes:

“Going forward it will take sustainable job and income growth to propel would-be-homebuyers back into the market. But with the labor market uneven at best, it may take some time before the housing industry regains the momentum seen earlier last year.”

Housing Wire

As you have probably deduced, there’s one key problem here. There is no job growth. And, any income growth already has inflation priced right in, so purchasing power will not increase and is likely to actually decrease because the rate of inflation is outpacing what Americans are being paid.

Thus, if we are awaiting a real estate recovery and the necessary steps for such a recovery require an improvement in the jobs market then you can forget about it.

The housing market is the pulse of our nation. It was the trigger event for the collapse of 2008, and it looks like it is now indicating what many of us already know: that we are in the midst of another recession within a broader depressionary trend.

Couple this with the Federal Reserve now indicating that they are pulling back on $ 85 billion in monthly market stimulus, and you can probably guess where this is headed next.

Welcome to Round 2.

housing-crash


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You