Guest Post: The Dissolution of the United States

There are troubling financial signs coming out of Washington and the State Capitols. Deficits, mounting debt, and a poor economy are proving to be a direct threat to the future of our country. Poor economic policies, trillions of dollars in national debt, political bickering, and a fundamental lack of leadership will bring on the dissolution of the United States.

 

2011 and 2012

The Federal budget for 2011, which runs from October 2010 to September 2011, was finally passed in early April of 2011, six months late. The budget projected the 2011 deficit to be $1.645 trillion and is based on estimated revenues of $2.173 trillion with expenses of $3.818 trillion. The Federal Budget for 2012 is expected to be 3.7 trillion dollars with a deficit of 1.1 trillion dollars. The current national debt is 14.2 trillion dollars and will cross the 15 trillion dollar mark sometime this year. It is simply impossible for the United States to continue spending at this rate.

Warning Signs

-Former Fed Chairman Alan Greenspan said the U.S. could face a bond-market crisis if politicians don’t act soon to start cutting the nation’s debt.

 

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-Moody’s Investors Service has been warning Washington that the triple A Sovereign Credit Rating that the United States has could come under pressure if the budget isn’t brought under control.

 

-The world’s largest bond fund, PIMCO, began betting against U.S. government debt last month and dumped all of their Treasuries.

 

-The CBO, Congressional Budget Office, says that the growing debt “would increase the probability of a sudden fiscal crisis, during which investors would lose confidence in the government’s ability to manage its budget and the government would thereby lose its ability to borrow at affordable rates.”

The Presidential Election

The Republican candidate’s chances of being elected will be hurt by conservative independents and the Tea Party, much in the same way that President Bush (41) was hurt by Ross Perot’s Presidential run in 1992.  In the end, President Obama will be re-elected to a second term. Afterwards, President Obama will feel justified that the people backed his fiscal policies and a tax hike will be in the works.

By late 2012, business owners will realize that they will need to adjust their business practices to compensate for higher taxes, mandatory health insurance, and the rising costs of doing business in the United States. Investors will seek out better yielding investments in Asia and South America. And the wealthy will begin to leave out of fear of higher taxes. These things are already happening, but the pace will increase after the election.

 

 

2013

By January 2013, the stage will be set for a perfect economic storm. Winter is typically bad for retail, real estate, and construction. But, after the Christmas season of 2012, many small retail business owners and retailers will realize that they are better off cashing in and closing the doors while they still can. Large businesses will try to relocate where the business environment is better. The real estate market will continue to be bad through 2013, but now the commercial real estate market will turn south. With empty houses, businesses, and factories, the construction market will take a body blow. Shaken by all the data streaming in, investors wanting to preserve their gains will seek a way out. Banks will be reluctant to provide business loans to individuals and businesses in these markets fearing default. By spring of 2013 America will dip back into a recession. For the businesses and retailers that hold-on to the hope of a good Christmas season in 2013, there will only be disappointment.

 

Government Reaction

By early 2014, the deteriorating economy will start to “snow ball”.  The lack of people with good paying jobs coupled with the fear of becoming unemployed will keep people from spending. With higher interest rates on Treasuries, the dollar will start to fall, making goods and oil from overseas more expensive. Higher oil will mean high gas and diesel, making products and services even higher than they already are.

Washington and the state capitols will have their hands tied by the lack of tax revenue, payments to entitlements, and a mountain of debt. Some will argue for another economic stimulus, but new Treasuries will be difficult to auction without an even higher interest rate. Some will argue for a reduction in spending, but that would be an additional blow to the economy.

 

 

Economic Collapse

By April 2015, the national debt is predicted to be 22.4 trillion dollars and the debt to GDP ratio will be 133%. The breaking point will come when nobody has any faith in U.S. Treasuries and they refuse to purchase them or if Washington defaults on its financial obligations. If the United States defaults on the Treasuries that are currently in the market, an economic collapse will follow. Banks, Investment Funds, Pension Funds, Individuals, and Countries will go bankrupt if this happens. The Dollar will become worthless. The economic collapse of 2015 will make the stock market crash of 1929 seem like a small bump in the road. The effects of the economic collapse will be felt around the world, as if a financial comet hit the planet.


 

 

Political Collapse

An economic collapse will bring a political collapse. With decreased tax revenue and the inability to auction Treasuries, Washington and the state capitols will be powerless. The recent near shutdown of the government showed just how far reaching the collapse would be. Hundreds of thousands of state and federal workers would be furloughed. Emergency workers would be required to remain on the job, but Hurricane Katrina showed us just how fast the police and medical workers would abandon their posts.

Dissolution

There will come a time that individual states will feel better off with out the federal government.  Several states already have secessionist parties wanting to form independent republics, including Alaska, California, and Texas. When the states start to vote on whether they stay in the union or not, we will witness the end of the United States, much in the same way we watched the Soviet Union Collapse.

Final Comment

I write this with the hope of offering a realistic timetable of events and how I think the cards are going to fall. I hope this gives people a way to plan for what I think is coming. Conditions might change that would speed up or slow down future events, but in the end, the United States will fall.

 

Steven Hooker

Trenton Illinois

 

 


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6 Comments

  1. A Full Blown Crisis ?

    World Bank president Robert Zoellick warns that the world is one shock away from a full-blown crisis.

    Here are my guesses re: where that one shock may come from :

    > European Invasion [ Libya ]

    > Ethnic Massacres [ Africa ]

    > Population Explosion [ India ]

    > Regimes Overthrow [ Middle East ]

    > Nuclear Nemesis [ Japan ]

    > Economic Collapse [ PIGS ]

    > Overheated Economy [ China ]

    > Melting Snows [ Poles ]

    > Terror Exports [ Pakistan ]

    > Food Shortages [ Developing Countries ]

    > Global Warming [ Worldwide ]

    Feel free to add your own.

    There is no doubt that in 2011, a “ Black Swan “ event is around the corner !

    With regards

    hemen parekh

    http://www.CustomizeResume.com

    Jobs for All = Peace on Earth

  2. Sad to say but probably true….this USA INC has gotten off the track set by the founders and is headed for a train wreck!
    Most likely we will see a group of states decide they have to cut the strings in order to have a chance to survive the mess….liberty is a dream that will always find hearts to live in and a place to make a stand…call me goofy but there will be another free people,another free nation,one that perhaps will have learned from what brought the CORPORATION down,one that will refuse to incorporate or to allow the treasonous actions that followed the War in 1865,we slid downhill from there as near as I can track it.
    Keep your eyes open and your ear to the ground,prepare all you can and be ready to act on a moments notice…alot of people wont survive the end of the corporation and the changes thatll follow and for sure the beast that is govt wont die easy or willingly…they will take as many with them as they can.
    Lastly remember that it wasnt/isnt the American Experiment/Dream that is to blame for this mess…its the ones who usurped it,used it,twisted it to a purpose it was never intended,freedom works as long as personal responsibility is yoked up equally alongside her,this system is finished….. America isnt…liberty isnt! Thanks!

  3. I agree with the whole premise, Its just that I think that it will happen much soon than 2015. We are on a very steep decline right now and it only gets steeper as we get closer to Christmas. Very good guest post.

  4. I was enligthened to this fact about 2 years ago when I lost my job. Thankfully, I was only out about 3 weeks. However, once again, I see the writing on the wall and I am starting to look again. I have been downsizing and prepping for about 2 years now and I still don’t feel totally prepared. I guess you never do, I just know that my wife and I have a plan and we hope to execute it when the time comes and put ourselves around her family and friends. My family is a lost cause of liberals and people stuck in their “normacly bias”. We are too big to fail doncha know? I just hope we can reach our “safe area” in time with her family. I have been resigned to the fact that this is going to happen and there is nothing I can do about it. I think we passed the tipping point 15 years ago. We cannot sustain this and I fear what it will look like on the other side. If I had the means, I would actually move out of the country. All I can say is that I am thankful for the almost 50 years of freedom that I had in this lifetime. I don’t worry for myself, I worry about my family and friends who refuse to believe anything is going to happen. Perhaps they don’t want to see it. God knows I tried. I can plead no more with them. God help us all!

  5. I figure 2 yrs tops for me to bring in income at my job. After that anyone s guess. Prep n hope our resulting country will still have the basics utilities. I thank god everyday for hot showers. That will crush me if I can’t have those.

  6. I have been all of the blogs posted, many of which are very good much alike. I have been preepen for many years. As for food storage, med supplies you will need to rotate you stock for it will go bad. Their is only one sub for knowledge and that is anothers or how to books such as the foxfire collection as well as other how to books, trapping and snaring, hunting and fishing as well as the SF Med Hand Book a must have. Weapons are a given you need at lest 2 or 3 of each caliber and try and keep it to 2 or 3. You can never really have enough food sippin whiskey and ammo. Remember rotation. One thing I have failed to notice post is the need to have 4 or 5 pair of finger nail and toe nail clippers as well as hair grooming supplies. These are some of the cheapest supplies you could stock up on. Backup eyeglasses, sunglasses and different reading glasses cheap (Dollar Tree Dollar Store Cheap, Cheap, in different strengths) magnafing glasses. I could go on and on. You can get allot of ideas from reading the post on this site as well as other. In closing always remember IT BETTER TO HAVE IT AND NOT NEED IT THAN NEED IT AND NOT HAVE IT!! GOD BESS ALL OF YOU>

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