There really are not any encouraging signs of economic recovery in America, contrary to what the government and the corporate controlled media say. In fact, there are numerous signs of an impending economic collapse. The Keynesian economic policies that prevail in Washington have guaranteed a total collapse of the US economy. Adherents to the Austrian school of thought in economics have been saying this even before the housing market crash and the financial collapse of 2008.
The writing has been on the wall for quite some time. So it would serve Americans well to finally admit the ugly truth of how the big-government statists in Washington have wrecked the American economy. What follows are just a few warning signs of economic collapse that simply cannot be ignored.
With the housing market still in a horrible state, ghost towns are appearing all across the United States. Since the federal government induced a huge boom in home building there is still a massive surplus of homes on the market. Many home owners are underwater because of the drop in value of their homes, especially the ones who bought at the peak of the bubble. Housing prices could be falling for some time during the economic collapse as there is still quite a glut of homes on the market. The silver lining though is that this will make it easier for other people to buy homes at more affordable prices. I say silver lining because Americans who bought and held on to physical silver before the economic collapse will be in a position to buy a median price home with as little as 500 ounces of silver in the future.
Deloitte Consulting published a new survey that indicated 74% of Americans plan to decrease their spending in the near future for fear of an impending economic collapse. They stated in the survey that the main reason for their spending cuts is because of rising prices. If these Americans are able to save money then that would be an encouraging sign for the economy. But the reality is Americans will probably not be able to save. And with the Federal Reserve keeping interest rates at nearly zero, they will not have any incentive to save. This will be very bad for economic growth and a major cause of economic collapse.
China has said they will curtail their exposure to US debt holdings. With China holding about $1.6 trillion of US debt, this could be a significant factor in the economic collapse. It could mean a much weaker dollar as those dollars from China come back here and flood the American economy with excess currency.
Gas prices hit record highs in April, 2011. In Washington DC they rose to $5/gallon. Dollar devaluation and Middle East conflicts are some major contributing factors in the increasing cost of petroleum. Some economists are forecasting $7/gallon gas by this time next year, which by itself could cause an economic collapse.
Unemployment rates are still astonishingly high at around 20%. This number is based on “real unemployment” which includes people who are underemployed and the discouraged worker who has stopped looking. Government statistics don’t include these figures because they reflect badly on the failed economic stimulus, which has only served to make the economy worse. By further misallocating resources, the government has prevented the necessary correction that is necessary for an economic recovery. Indeed, government ineptitude will be responsible for a total economic collapse.