USA Economic Collapse 2011

John William at KWN has just stated that USA is nearing a economic Collapse in 2011.

His main prerequisites for an economic collapse in USA are

• the Federal Reserve moving to monetize U.S. Treasury debt;
• the U.S. dollar losing its traditional safe-haven status;
• the U.S. dollar losing its reserve status; the federal budget deficit
• Treasury funding needs spiraling out of control.

His definition of collapse will be full blow hyperinflation. I actually believe the economic collapse is currently taking place. But what is happening is the TPTB is trying to slow down the process as much as possible so that they can get the most out if it, before the end. So it not going to be one way direction down but economic factors going up and down just trending downwards but trend getting faster and faster downwards.

We are going to have to move into a new system as the current one is not working as it is too negative to the earth.

When people see a major disaster occurring they try and get as much resources as they can to be able to ride out the disaster and these are the times when you see human nature to be the most selfish. Its only after disaster when people start acting friendly again. I can see that players in the economy are now much more ruthless and not really caring about damage that is being created only trying to get as much as the can out of it. Best example of that is how less then three hundred families in USA have more wealth then half of population of USA and its getting worse everyday

Another example is despite $14 billion in worldwide profits, General Electric is paying no federal taxes in fact GE got a $3.2 billion tax benefit. To make it worse a significant amount of GE jobs in the US was sent overseas.

New Home Sales are at their lowest rate since reporting began in 1962.

Average Sale Price for non-foreclosed homes is $246,358 - below 2003 levels, and for foreclosed homes, is $169,965

Best indicator is price of oil, gold, silver and other food commodities.

Geithner warns U.S. to hit debt ceiling by May 16 2011.

Below are some graphs on USA state revenue and debt.

Big picture The U.S. government is broke/bankrupt. USA is around $14T in debt with future obligations of almost $75T. There is no desire from the political class to address this issue and so the the only Option of the FED is for inflation of the money supply. ie. devalue the dollar. But this process cannot happen to fast to worry the masses so its being done gradually while telling public that everything is okay.

The best interview on reason for economic collapse that I have read

The best protection for an economic collapse in 2011 is in physical gold, silver and agricultural land with access to free flowing water. For me it is also to be with your family.