Top 20 Reasons That An Economic Collapse Could Be Coming

Top 20 Reasons That An Economic Collapse Could Be Coming

Top 20 Reasons That An Economic Collapse Could Be Coming

Top 20 Reasons That An Economic Collapse Could Be Coming

Many of us have experienced a rough year in 2011, but the worst maybe yet to come.  Both the U.S. and Europe are  in the middle of dealing with debt issues that are unprecedented. Worldwide the financial markets are in a tailspin and  the austerity programs that governments are implementing are not having the desired effect. The fact that prices on things like food are increasing is not a good sign. There are many who see signs of the worst possible scenario could actually happen. While we hope this does not happen 2012 could be a very difficult year.  Here are what I would consider the Top 20 Reasons That An Economic Collapse Could Be Coming:

Top 20 Reasons That An Economic Collapse Could Be Coming

Top 20 Reasons That An Economic Collapse Could Be Coming #1 – During 2008  there was rioting as a result of rising food prices. As of July of 2011 global food prices were 33% higher than they 12 months prior. Some examples are:

Corn +84%

Sugar +62%

Wheat +55%

The increases in these commodities are having a devastating effect on the poverty-stricken communities throughout the world. Some estimates say that upwards of 800,000 children  will die in the Horn of Africa alone.

Top 20 Reasons That An Economic Collapse Could Be Coming #2  – Over the last 3 months, the producer price index in the United States has grown by a rate of seven percent on an annual basis. At this rate inflation will be a major problem by 2012.

Top 20 Reasons That An Economic Collapse Could Be Coming #3 – Looking at unemployment plus inflation or the U.S. “Misery Index”  it reached a 28 year high this year and most feel it will go much higher.

Top 20 Reasons That An Economic Collapse Could Be Coming #4 – Currently the unemployment rate is at 9.1% and very few people expect it to go below 8.5%. That is a very scary prospect.

Top 20 Reasons That An Economic Collapse Could Be Coming #5 -The working class in the U.S. is losing jobs at an increasingly alarming pace.  Today seventy-six percent of males with a high school diploma and who are between the ages of thirty and fifty are working. In 1967, that number was ninety-seven percent.

Top 20 Reasons That An Economic Collapse Could Be Coming #6 – Most indicators show that the economy in the United States is about to come to a crawl.

Top 20 Reasons That An Economic Collapse Could Be Coming #7 – Surveys show that 90% of workers in the U.S. do not think that their wages will keep up with inflation over the next 12 months.

Top 20 Reasons That An Economic Collapse Could Be Coming #8 – Currently consumer confidence in the United States is at its lowest level in over thirty years.

Top 20 Reasons That An Economic Collapse Could Be Coming #9 – As of the writing of this article, 45.8 million Americans accepting food stamps. This is an all-time record.

Top 20 Reasons That An Economic Collapse Could Be Coming #10 – Flash mob crimes are an example of what can and is already happening as the economy begins to fall apart.

Top 20 Reasons That An Economic Collapse Could Be Coming #11 – Theft of things like even pets are on the rise. People are taking anything of value that they feel will generate money.

Top 20 Reasons That An Economic Collapse Could Be Coming #12 – Across the country, small business owners are having a difficult time getting loans. This is a result of the Federal Reserve was not paying banks not to make loans.

Top 20 Reasons That An Economic Collapse Could Be Coming #13 – The national debt for the United States is a giant ball and chain that is holding back the economy. This weight is by billions upon billions of dollars every single day. This debt was increased by record numbers under Bush and has gone up by nearly 4 trillion dollars since Barack Obama took office. This debt has caused the S&P  to strip the U.S. of its AAA credit rating. The bad news is that in all probability more downgrades appear to be on the horizon if the United States does make some drastic changes.

Top 20 Reasons That An Economic Collapse Could Be Coming #14 –  The relationship between the U.S. and its largest lender, China, are growing. When the chinadaily.com calls the Chinese government to take advantage of the United States debt and use it as a “financial weapon” then things are getting dicey. The chinadaily.com is run by the Chinese government and it stated that if the U.S. sells weapons to Taiwan this could occur. Right now  the economies of the U.S. and China are the two biggest in the world. In the event that there are issues between these 2 giants economic troubles for the rest of the world could be the result.

Top 20 Reasons That An Economic Collapse Could Be Coming #15 – All across the United States, local and state governments are going broke. Jobs at these levels are being cut at an alarming rate.  Economists feel that over 450,000 jobs will be cut between now and the end of 2012.

Top 20 Reasons That An Economic Collapse Could Be Coming #16 – Calls for a global currency to replace the U.S. dollar as the reserve currency of the world continue to grow.

Top 20 Reasons That An Economic Collapse Could Be Coming #17 –  The debt crisis for the European Union are getting worse daily. It is likely that countries like Portugal, Italy and Greece will all default on their debt. This means that additional pressure will be placed on the core E.U. countries to bail the weaker countries out. The problem is the main E.U. countries have issues of their own and this will create friction.

Top 20 Reasons That An Economic Collapse Could Be Coming #18 – Things are getting desperate for the Federal Reserve. The problem is the Federal Reserve is running out of bullets in it’s gun. The worse part is the real problems have yet to surface.

Top 20 Reasons That An Economic Collapse Could Be Coming #19 – A sign of problems is that the world central banks have purchased more gold during the first half of 2011 than they did in all of 2010.

Top 20 Reasons That An Economic Collapse Could Be Coming #20 – Self fulfilling prophecies well tend to fulfill themselves. As more and more people expect for things to get worse they cut back and spend less. This creates the depression that people expect especially in our consumer driven economy.

All of these things combined lead me to believe that the worst is not over. The question is will the governments of the world make the correct decisions to lessen the pain by allowing the pain to occur now or make it worse by kicking the can down the road as has been done in the past? The results of years of growth fueled by unsustainable debt is becoming apparent.  Those that are already positioned, with reduced or no debt, income producing assets that are wholly owned, and flexible in their skill set have the best opportunity to survive. Those that do not have all or some of these advantages should work quickly to create these options.

I am not a gloom and doom person, however we have to begin to prepare for a change in things as we know it.

 

This article, Top 20 Reasons That An Economic Collapse Could Be Coming,  is the opinion of Mark Talbot, editor of free-retirement-plan.com. The information expressed is for informational purposes and may or may not fit your personal situation. You should seek the advice and guidance of a financial professional who is familiar with your personal situation.

 

 Top 20 Reasons That An Economic Collapse Could Be Coming