Why Lawmakers Won't Fix the Economy . . . and How to Prepare for Coming Collapse

Few realize that the rising deficit and decrease in production are by design. Politic decisions are influenced by central bankers to an extreme, even godlike, degree. In order for a state in increase it's capital account, it must create debt and outsource production. In addition, every time a new consumer or mortgage loan originates, new money—debt—is created.

Wealth is an illusion. Truth wealth is complete ownership of an asset. A homeowner does not own their home as long as there is a mortgage. That mortgage is considered an asset by the bank, even though the loaned money did not even exist prior to the mortgage being created.

According to economist Peter Schiff, who predicted the current crisis years before it happened, "Our government for many years has been successful at hiding the problem and buying time". (Crash Proof 2.0: How to Profit From the Economic Collapse). Why hide the problem? Why "buy time"?

A proper set of reforms would be fought vigorously by the Wall Street. It will reduce the value of everyone's stock portfolio, stripping virtually everyone of their hard-earned retirement. It will break the majority of banks, possibly forcing the nationalization of many.

The only to restore the dollar and the US economy to increase production and decrease consumption. The initial impact will be terrifying. Borrowing opportunities will virtually dry up, with fewer credit cards offered, fewer car loans and fewer mortgages. Cut out these things, and you SIGNIFICANTLY lower the lifestyle of the EVERY American. Our appliances and cars are deliberately constructed for planned obsolescence—they are designed to need replacing after a number of years. When your vehicle dies, you will not be able to finance another quite so easily. Every nickel will be micro-managed in your household. Fewer trips to Walmart. All of this means unemployment will reach proportions never seen in the history of modern civilization. Everyone with a job will take a pay cut. Millions will be unable to pay their debt. As poverty increases, fewer will seek treatment for preventable diseases. More will die from the flu than ever before. Conditions once eradicated in the US will begin to reappear. Churches will close their doors and will be forced to meet in homes or even in the street.

This trend will not limit itself to the US. It will be felt across the globe. Poor nations will become even poorer. Charities will be unable to raise money and ship food to these impoverished nations, let alone help those at home. Throughout the world, millions will die from starvation and untreated medical conditions.

When the above scenario happens, everyone will curse the President and Congress, blaming them for the calamity facing our nation. It will be extremely difficult to convince the populace that these changes are necessary to save our nation. There will be rioting in the streets. The crime rate will rise to epidemic proportions. Your home will no longer be secure from thieves. (Assuming you are able to keep you home through the crisis). In response, government intervention in our lives will increase an hundred fold in an attempt to manage the chaos. We could very well experience martial law for the first time in America. Eventually, society will adjust, as we rebuild America from the ground up. We would live in a very different America.

No one likes change. Change which lowers the standard of living is especially difficult. For lawmakers initiating such reforms, it's guaranteed political suicide. Because they have been successful for so many years at masking the problem and delaying the inevitable, our lawmakers naively think they can continue this trend indefinitely. They are not willing to risk a complete breakdown of society—which would all but guarantee they will not see another term. In any event, this breakdown WILL eventually occur. Officials cannot continue to "buy time" forever.

The other issue is that reforms need to be systemic and long term. Lawmakers will consistently try to usurp the healing process and prevent a true recovery. Our lawmakers need to be fully committed and passionate about rebuilding our nation. We need a plan that government will stick with for many years, despite political pressure from lobbies and their constituents. In a country with democratic elections, this is a virtual impossibility.

My advice to everyone is to become aware of how our economy actually functions. Pay off your existing debt and save your money. Life will be much more difficult for those steeped in debt

Don't rely exclusively on your investment portfolio for your retirement. Be prepared and have a backup plan. In addition to your 401K, buy physical commodities such as silver, and gold (not gold funds, which are speculative—hold only physical bullion). Begin purchasing some of the new private, bullion-backed currencies becoming increasingly available (another topic). Consider the Liberty Dollar, e-gold, GoldMoney and others.

If you are debt free and have skills or assets to exchange, you will be better able to sustain yourself during the complete economic collapse which will inevitably occur. Don't rely on elected governments to fix the problem—they won't. It's every man for himself.