If you’ve got a pulse and can read or turn on the TV you’ve probably heard about the market dive on Friday. A little bad news seems to have broke that camel’s back, but since the market seems to have decoupled from reality a long time ago, I wouldn’t be surprised if it bounced back again this week on a good news coming out of Europe (such as another round of 
quantitative easing for them or something equally crazy.) I say that because I don’t believe you can spend your way out of debt.
As you can probably tell I’m bearish on the market and the economy over the next few years. The government and the mainstream media keep telling us it’s getting better and printing favorable statistics, only to revise them downwards later when they hope nobody is watching. Guess what? We’re onto your tricks MSM and US Government! We can see what’s happening and it’s an election year. Not that there’s a whole lot we can do about it at this point. The fuse is lit and we’re just waiting for the debt bomb to blow up.
Don’t you wish you could look into the future and see what’s going to transpire over the next year or two? Or ten? But since we don’t have that capability the best we can do is be prepared for anything that happens – as much as we can be anyway.
What are your thoughts? Is this simply the beginning of a market correction or the start of an economic melt down? How bad is it going to get? What can the government do to pull us out of this if anything?
Let me know what you think.
Sound off below!
-Jarhead Survivor
How About That Economy?
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35 comments
My thought & am completely serious:
Why worry about it?
You must not have kids or a family that you care about
Actually I do have kids, family, many friends & take that responsibility quite seriously.
However, my question was/is – in other words, what is the point in worrying about something that is out of your’s or my control?
Think about it …
I underestimated how hard the TPTB would work to keep this system afloat but it is starting to come unraveled. I think it will take more time before folks really wake up and then it will be to late. After this long decline I think it will blowup very fast. Perhaps the new energy from the EPA jumping electrical rates 500-700% in a one fell swoop will be the cause.
Market goes up; market goes down. Market goes up …… you get the idea. Its relation to the actual health of the economy? None that I can make out.
There was also the “unexpectedly” poor jobs numbers on Friday.
Jobs numbers goes up …….
That one should be an indicator of the health of the economy; but it isn’t. The “good” jobs numbers from recent prior months were due mostly to people dropping out of the workforce entirely. So, “worse” jobs numbers could (maybe, but who knows) indicate only that fewer people were dropped from the rolls altogether. That would actually be a “good” thing …. relatively.
Jarhead, you said: “As you can probably tell I’m bearish on the market and the economy over the next few years.”
I think it’s pretty safe to say that preppers are bearish on just about everything …. that’s why we’re preppers.
But I’m with you on the economy. When even the Republicans are Keynesians, it’s kinda hard to see a way out of the debt. Or an overall reduction in government spending ….. ever.
I’m no economist, but maybe that’s a good thing. The financial system has been rigged for so long that I think trying to just let things take their course won’t work. I agree with you that we as individuals can’t spend our way out of debt, but if people aren’t buying what you’re selling because they have no money or jobs, you are going out of business too. So I do believe that the government has a role to play in helping us to spend our way out of debt as a country (as counter-intuitive as that sounds).
Meanwhile, spend your money locally. Each local dollar goes through your neighbors’ hands several times-the guy who runs the filling station shops at the local grocery store, its employees shop at other local stores, whose employees buy gas at the filling station.
And be ready for TEOTWAWKI–just in case it does happen…
Sorry Jarhead, but even if I could see the future I don’t think I would look. I think the picture would be too devastating. I am just going to keep on getting ready for the inevitable.
I’ve got a lot of prepping to do. I’ve got a lot of skills, but none that create food and water from thin air. Time to cover the basics and build from there. I’m closing on my first home on wednesday. It will mean a $500 savings over the rent I’ve been paying. Definately need to get a rain catchment system installed. No ponds/creeks within about 600 yards, which isn’t far, but it’s thick suburbia.
I’m in dire need of networking in the Memphis, Tn area. I’ll be honest, I’m not well prepped yet, but I’m a hard worker and am a maintenance electrician at a steel mill. The closest family I have is 10 hours away and I don’t trust anyone I work with or they’re blind. So if anyone is interested in making a new connection, just let me know here.
Not that I want more pain on the average guy , but as long as it helps oust Obama , then its a good thing .
So you’re fine with things getting worse for the “average guy” as long as it gets rid of the current president? I was thinking maybe we wanted things to get better for the “average guy”….
Oh I do want things better , I think people have suffered enough , far enough . Fact is , a bad economy is a big factor in election outcomes ………….thats how HE got elected in the first place …………..everybody knew McCain was going to be Bush’s 3rd term with more of the same ……so the took a chance on the unknown guy ………….this guy is worse than Bush , we need him out .
Considering the lack of any kind of oversight over Wall Street and the banking industry under the last President, I guess we can just agree to disagree. I think Bush (like Nero) just fiddled while our economy burned. At least things are (way to slowly) moving in the right direction…
If growing the government to triple the size he started with , and forced socialism ( obamacare ) and attempting to stop states from protecting their citizens from our out of controle neighbors to the south , and continued military action in the middle east with stalinist internal practices against the american people , civil liberties , and the constitution started by the Bush administration and now expanded by the Obama administration is headed in the right direction ………then yes we are . Like you said , we agree to disagree .
Haven’t really thought about it much to be honest, but I can say it’s a terrible pain driving west from the coast! I guess it depends on a lot of factors: cost, environmental impact, social impact, that kind of thing.
What do you know about it?
Face it, you’re both wrong – so saith Jason.
Actually I get where you’re coming from, but would counter with this. I think that we are past the point of being able to change the direction of this boat/train/plane but my concern or worry is trying to figure when this bomb is about to detonate………the better able I am to predict this the better able I and my family are at surviving in the short term. I’m not talking about preps but rather traveling and other things that might find us miles apart. However, point well taken!!
Baltic Dry Index pertains to cargo shipping = down. Manufacturing orders = down…Real unemployment number U6 = way up…forget the DOW number (unless is absolutely bottoms out at 300 points per day) and look at the S&P numbers – once 1270 hits it will drop like a rock….keep eyes on Government T notes which indicate long term health = 10 year = 1.7% (BAD)…Britian = 300 year lows = Spain is tetering….the fiddles are playing on board the USS America. The fianancial tsunami is approaching. Gentlemen, prepare to defend yourselves.
Hey Jarhead,
What’s your thoughs on the Maine east/west highway?
Hi ya’ll, its 6/4/12 and I think japan just set off the big stock drop. I think maybee its time to look to the state of our barracades Its a ” time for gatering stones together, a time of walls” Stand fast ,look to your loved ones, above all COURAGE , There are dark times ahead, we knew this was comeing . REMEMBER the best prep is in your heart and your mind. Ray in Ky
D-All of the above. The mkt correction is going to be a melt down due to the ongoing manipulations attepted to keep the economy afloat. Porter Stansbury & associates has laid it all out fro way back when and so far e has een pretty much on theoney alng with Gerld Celente, Jim the bow tie man, lives in singapore? cant remeber hs ame bt he is very well know and respected in the circle of econoist that make the ruds on the Internet and TV news sites. All of the people of notablity hat are always right say the same thing. THe wheels are commin off and the only thng we can do is prep, protect, and HANG ON its gonna be a BUMMPY RIDE!
i pretty much agree with everybody. i use the wile e. coyote’ school of thought. we were on the top of the mesa. we fell off, but caught on a rock outcrop by our underware waistband which is slowly unravelling. all we need now is for roadrunner to go beep-beep! and we’re in a 1000′ freefall. what will be the roadrunner? i don’t know, could be any little thing at this point, but even if roadrunner never shows up the elastic is still unravelling. 1000′ freefall, its gonna hurt, a lot. stack it high, shorten the fall. i figure 4 months to a year at best, but maybe tomorrow. good luck.
coyote teaches us many lessons.
he has plenty of time for regrets on the way down.
one time instead of going splat, on the desert floor, he lands in the river. unhurt, he begins to swim along with the current. out in the “mainstream”, living in the moment. Until he swims over the falls. going with the current was easy. swimming up a waterfall is not. but this is a cartoon, and he succeeds. (only to go over the other side of the falls)
the moral here is that the “mainstream” goes over the falls first. (pick a shore now, and swim for it.)
agreed. i always knew those cartoons were meant for adults. how many 3 year old kids can read or understand “acme rocket kit”?
they don’t write ’em like that anymore.
I remember when I was a kid about 8-9 years old watching cartoons on TV with my dad. I will never forget my dad laughing hysterically at, what I came to understand later, as the double entendres – those cartoons were so well written & clean.
Timmy,
I agree with you for the most part – had the government allowed the banks fail a few years back – I mean ALL of them fail, we would be in a far better position today because that portion of the recovery would have been far swifter. Instead, we’ve got to put up with this continual political masturbation.
One of the primary reasons I do not worry is because the past conventional solution models are obviously broken & many know it. I believe it even confounds the doom & gloom gurus who keep reaching into their past bag of tricks & come out empty handed as we continue to limp along.
They keep pointing ahead at a fiery train wreck but I don’t think that’ll be the case. While I do not believe the government is the answer, I do think that the innate survival instincts of man will be clearly in focus & will create out of the box solutions. Look at what has happened in the past decade with regards to advancements in the collective intelligence in the world – it is off of the chart.
There is no question in my mind we are in brave new world & venturing into unchartered waters and, call me crazy but, it is pretty exciting to me. Again, I don’t worry because that can only create fear which makes one frozen in the moment(s).
I’d much rather act than react because it’s a position with which I control & certainly more fun ….
Collective intelligence? That is one big oxymoron. Each person I meet on the street seems to be reducing the total IQ, not adding. Each drive down a street shows me that people seem to more and more believe that as long as their present is ‘ok’ that all is well. Ask them directly and they will all say “yeah, it’s just getting worse.” “So what are you doing about it?” “Oh, I’m upgrading to the iPhone5.” or “iPad3” or …
When talking to those few smart people I meet, and I ask about bad times coming, they all agree to it, but when I ask about their gardens or their savings (in case of job loss …) or what they are learning that they might do in case the bottom of the economy falls out, I get looks that TRY to tell me that I’m the stupid one. Sure, I might be, but staring at the car approaching you and about to hit you is NOT the way to serve your family. And they agree, at least until you ask them what they are doing. Then suddenly (“deer stare.”)
Once again, the collection intelligence I was referring to is the obvious & incredible increase in knowledge worldwide over the past decade or two, not those in your microcosm.
I have always stroked the cat’s fur in the wrong direction on these survivalist sites with regards to the economy. I do not think it will crash, rather it is a bumpy road we are experiencing like those of the early 70’s, 80’s & 90’s – just read about those times – they were spooky & I lived in & through them. Imagine interest rates to buy a home at 18-19% or waiting in line for an hour every other day to buy gas – & a 10 gallon limit! It was real & fact AND people dealt with it without civil war.
Where are we today? Pay close attention to the 5th paragraph from the bottom.
https://articles.marketwatch.com/2012-06-08/commentary/32103077_1_debt-private-sector-slowest-pace
The US economy is an incredibly complicated matter and is not like balancing a personal checkbook as so many seem to react like. Housing markets are starting to rebound or have bottomed out like Phoenix Az, consumer spending is beginning to increase as you are witnessing & so forth. Are we out of the woods? Not at all however, it takes years to complete corrections.
Incidentally, the Federal Reserve (a privately held organization – it’s fact) would have NEVER loaned trillions to the US government money if they stood a chance of having it default. I suspect the others we owe money to had the same mindset.
So, you are polling people around you & the vast majority seem to think things are ok & you say “I get looks that TRY to tell me that I’m the stupid one” – you may want to reexamine the evidence. Sometimes it’s helpful to find out what we don’t know before basing an opinion.
The what separates the rich & intelligent from the rest is having the ability to see ahead & not get bogged down by the muck & mire like the vast majority of the lemmings.
BTW, those oncoming headlights you seem to see barreling towards you may actually be coming from a car parked a few miles away, about to pull a u-turn & go into the other direction & not giving you a moments thought ….
… unless you’re caught in a “rip-current”. swim with the rip-current. there will be a spot up or down the beach somewhere that you’ll be able to swim to.
All I know is if you vote for anyone in office today, you deserve what ever you get.
i’m with Jason on this one. why worry?
(the only reason for me to worry is because i don’t have enough stored food, “band-aids” or ammo)
“What can the government do to pull us out of this if anything?”
Why does everybody keep looking for the blessed government to dig them out the problems that government has created?!? What the government can do is get the hell out of our lives, give us our freedoms back, and let the too big to fail cancers fall on their own weight. It is going to happen one way or the other. Let it happen naturally. Others that are better positioned will pick up the pieces of value and put them to work in a much better position. Pain is a part of life. Cope.
While there will continue to be volatility in the market with several hundred point daily swings in our future, at the end of the year we’re going to be flat. I say that because our government can’t improve it but they can manipulate it with more QE. Too much and the bond bubble could burst, not enough and the market and economy tumbles. This cycle will continue until it’s no longer sustainable and the whole thing crashes but, I don’t see that happening until Europe’s situation is resolved and the financial community turns it’s attention back to the USA.
Jarhead, I think that the powers that be see it more as trying to grow their way out of debt rather then spend their way out of it. I mean they tried austerity and all they got was a wicked economic slowdown and the now extreme danger of a deflationary depression.
Furthermore I now strongly suspect in the EU at least the euro was just a means to the end with a built in expiry. The one thing that can stop the globalist takeover of ALL of human civilization are sovereign states. I suspect the euro was kind of a euthanasia drug administered by stealth. If this is true then we are facing a full force economic contraction, starting first in Europe and then spread throughout the developed world.
That being said, economic contraction depression, stock market and currency collapse might be the easy part. The hard part will be in resisting the no doubt pre prepared “solution”. That solution will probably mean the end of sovereign states, especially the right to print their own money, and control their own resources and economic destiny.
Much has been written about the NWO banking cartels ect. I am some what contrarian. I think despite all the efforts going into it’s planning it will prove to be even more unworkable than the euro. Thats only at the macro economic level. Worse for them far to many people are now wide awake. Greeks wish to be Greeks, Germans wish to be Germans ect ect, right down the line. I strongly suspect people of every strip will be willing to fight for that.
END THE FED!!! At least start there… That will certainly end the boom-bust cycles we have been going through since the 70’s with them opening the flood gates and creating money out of thin air. Sound money is the only “correction” that can help the economy.