[invision]

Ok, sequestration starts March 1st... That seems to be a given... But correct me if I am wrong, the fiscal cliff 3 month can kick that also caused the sequestration, also stated that the debt ceiling would be raised "unlimited" UNTIL May, and then lock in place... Meaning once May hits, the debt ceiling will no longer rise... So with current in hand revenues, what does the government have 4-8 weeks of operating capital???

If so, then a heck of a lot more people won't be employed than Obama's "doomsday" of 750,000 unemployed numbers... That means no more entitlement dollars, no more pension dollars, no more government finances cause the bank would be at zero, and by law no more new debt....

Now, if they (both parties) can't come to an agreement over a 2.5% cut, how in the heck are they gonna come to terms on a new debt ceiling?

Am I right?

 

[taylort5]

I couldn't agree more. That's why my preps have taken a huge upturn. Food, water, extra gas while I can still afford it. Thinking about pulling 401k ..
Dunno, if the gov goes broke that means they will be trying to get their hands on every dime they can.

 

[Jimthewagontraveler]

I ain't talking about it cause it has to many sylablas?

 

[Viking]

I couldn't agree more. That's why my preps have taken a huge upturn. Food, water, extra gas while I can still afford it. Thinking about pulling 401k ..
Dunno, if the gov goes broke that means they will be trying to get their hands on every dime they can.

In considering what you have said this is how I've been explaining the feeling, it's like I've been walking down a tunnel toward the light at the end of that tunnel (Old saying about this) anyway with the uptick in things like this going on it's like the tunnel is closing in behind with it bumping at our heals and rear end and so it's no longer a walk but a quick running because we are also seeing the walls of the tunnel beginning to close in as well. It all equates to that prep upturn as troubles are closing in on all sides and much like cornered rats we are being pushed into a greater survival mode often spending more money than we had planned to spend, shortening long term span buying to shortest term buying we are able to do. This is serious stuff, not to be taken lightly, so do what you can while you can because next week, month or year may be too late.

 

[MetalPrepper]

So what do ya'll envision....slow economic sunami or a vibrant shut down?

 

[CrackbottomLouis]

They will just raise the debt limit again and keep printing money. It will be a last minute deal like it always is. Not to do so is political suicide. Rather than improving the situation theyll just flog the donkey downhill till it dies. The downward slide will start and stop but pick up speed everytime it starts again till the point of no return. Maybe I should take out school loans and buy preps. Just kidding of course but its tempting. Most Americans are to spoiled nowadays to adjust to the new reality waiting round the corner. The chaos will be epic. What we now call the third world will survive the best even if their situation is more brutal in the short term.

 

[invision]

They will just raise the debt limit again and keep printing money. It will be a last minute deal like it always is. Not to do so is political suicide. Rather than improving the situation theyll just flog the donkey downhill till it dies. The downward slide will start and stop but pick up speed everytime it starts again till the point of no return. Maybe I should take out school loans and buy preps. Just kidding of course but its tempting. Most Americans are to spoiled nowadays to adjust to the new reality waiting round the corner. The chaos will be epic. What we now call the third world will survive the best even if their situation is more brutal in the short term.

I can agree with you... But in the same sentence - with the gap getting farther apart between parties, I just don't know man... Look at it this way, republicans are going to win the battle on sequestration - aka stand tall, demand cuts while Obama does the dog and pony doomsday campaigning crap and loses... This gives republicans some backbone moving into May - "he may have one the election, but we won this round". Now Obama will be like a 2 year old and throwing a tantrum... Do you really think his ego will allow him to even give anything up in May... "Don't call my bluff" - so I don't have a clue for round 2. But if it does go to the 59th minute of the last hour... I see all the credit rating companies going, "yep, let's lower their credit score" after all the just did it to Great Britain... That alone could drastically start a slow down in foreign bond purchases and even slow sell offs by our two largest debt holders - Japan and china... That happens, could also force USD out of position as global currency for oil and gold - which would deflate the USD faster than a BB through a water balloon...

 

[dixiemama]

I'm praying it takes a year before the S really HTF; it will take us that long to get the BOL semi functional. Livestock need to be bought and cabins built, along with fruit trees planted.

It's just sad that more people aren't aware of what's going on in our world.

 

[CrackbottomLouis]

I can agree with you... But in the same sentence - with the gap getting farther apart between parties, I just don't know man... Look at it this way, republicans are going to win the battle on sequestration - aka stand tall, demand cuts while Obama does the dog and pony doomsday campaigning crap and loses... This gives republicans some backbone moving into May - "he may have one the election, but we won this round". Now Obama will be like a 2 year old and throwing a tantrum... Do you really think his ego will allow him to even give anything up in May... "Don't call my bluff" - so I don't have a clue for round 2. But if it does go to the 59th minute of the last hour... I see all the credit rating companies going, "yep, let's lower their credit score" after all the just did it to Great Britain... That alone could drastically start a slow down in foreign bond purchases and even slow sell offs by our two largest debt holders - Japan and china... That happens, could also force USD out of position as global currency for oil and gold - which would deflate the USD faster than a BB through a water balloon...

The republicans will cave like they always do as long as they get one or two face saving concessions that dont amount to anything. I dont believe either party has anyagenda other than expanding and keeping their influence over the lifeboats on the sinking ship and where to beach it.

 

[jsriley5]

In considering what you have said this is how I've been explaining the feeling, it's like I've been walking down a tunnel toward the light at the end of that tunnel (Old saying about this) anyway with the uptick in things like this going on it's like the tunnel is closing in behind with it bumping at our heals and rear end and so it's no longer a walk but a quick running because we are also seeing the walls of the tunnel beginning to close in as well. It all equates to that prep upturn as troubles are closing in on all sides and much like cornered rats we are being pushed into a greater survival mode often spending more money than we had planned to spend, shortening long term span buying to shortest term buying we are able to do. This is serious stuff, not to be taken lightly, so do what you can while you can because next week, month or year may be too late.

Imagine your suprise when you get to the light now and find i'ts just me roasting a rat over a fire

 

[Tweto]

The only reason that anyone thinks that the S will HTF Friday is because Obama has been preaching the end of the world if he does not get his way. The actual cuts would be so small that most professional economists see it as just a bump in the road.

 

[vellomike]

85 billion is what the gov. Borrows in one month

 

[biobacon]

Things keep going the way they are my family is in trouble. Some months we don't make enough yet we still make more then whats needed to get aid, when the dollar crashes I sure hope that welfare line comes by my house cause were going to need it. If it were just me or just me and my wife it would be to the hills but with a 3 and 1 year old what then? Time to start reading some inter war German history eh?

 

[invision]

The republicans will cave like they always do as long as they get one or two face saving concessions that dont amount to anything. I dont believe either party has anyagenda other than expanding and keeping their influence over the lifeboats on the sinking ship and where to beach it.

Oh yeah, they will kick the can... But there can't be much more room to kick it too... If it gets heated, and we all know it will, then Moody's and the rest are going to shit on our credit rating... I just see this as almost the last straw...

As for sequestration, it is a freaking joke. Military cuts & non-military cuts are EASY to fix. Here is my top 10 just off the top of my head...
1) new hire freeze.
2) reduce all salaries that are $85,000-100,000 by 5%.
3) reduce all salaries that are $100,000+ by 8%
4) stop the automatic budget increase of 3-10% across the board.
5) enforce line item accountability for every department.
6) reduce travel of leadership, including the $1.5B Obama spent on vacations last year. Instead of his 100 city tour, bring the mayors and city council to him, and provide live feeds of the meetings via website.
7) stop the $46.5B in foreign aid budgeted to be spent in 2013
8) mandatory 5% budget cuts to all budgets in regards to non-salary/wages line items
9) move all government healthcare to Obamacare
10) move all pension funds to self managed 401k plans with a 1/2% match up to 5%.

As for the salary cuts, I remember in 2000-2001 when the bubble for tech went bust, and the company I was the IT director for also got creamed because Argentina blew up and 70% of the consulting revenue was coming from the banks there as our consultants were scrambling to try and fix their situations - when the government took over the banks, we lost all the receivables. My direct boss, was a large shareholder, ESVP and BoD member. I had to come up with cost savings... I myself took a 10% pay cut, I had to let one developer go, and I had to reduce my budget by 15%. It wasn't pretty, but my pay cut was voluntary... I was rewarded a year later being the first and only non-consultant to ever be made a share holder... Also, I was repaid the 10% cut I took, by receiving 2 massive bonuses the next 2 years for that sacrifice that equaled 1.5x the total I lost AFTER TAX...

 

[goshengirl]

Things keep going the way they are my family is in trouble. Some months we don't make enough yet we still make more then whats needed to get aid, when the dollar crashes I sure hope that welfare line comes by my house cause were going to need it. If it were just me or just me and my wife it would be to the hills but with a 3 and 1 year old what then? Time to start reading some inter war German history eh?

You are not alone.

 

[oldasrocks]

85 billion is what the gov. Borrows in one month

Correction: This is what they print every month and passed to the banks interest free (so I've read). NO one wants to loan us any more money so they just print paper and tell us its worth something.

 

[Immolatus]

I dont believe either party has anyagenda other than expanding and keeping their influence over the lifeboats on the sinking ship and where to beach it.

BINGO! I'm pretty sure this whole thing was voted for by both sides, and signed by O. Who is he going to blame? He signed the bill. A shiny hat wearing type would say this is what they all wanted in the first place.
Oh, they'll cave alright just like the fiscal cliff deal. Eliminate the debt ceiling and raise taxes on everyone. Awesome! The worst possible solution. Almost like it was planned out that way...Or maybe it was an accident. Compromise?

85 billion is what the gov. Borrows in one month

Correction: This is what they print every month and passed to the banks interest free (so I've read). NO one wants to loan us any more money so they just print paper and tell us its worth something.

Youre both right. We borrow $85b/mo by selling UST (that the F3D buys in a circle jerk move), and the F3D prints $85b/month to give to the big banks in what we call QE.
It happened just the other day, on the 28th. (the borrowing part)
In essence, the F3D prints $150b/month (they buy 75% of the new issuance is what I hear), and $85b/year is a big deal?

Invision, theres tons of ways to get rid of this, its a complete joke. They want it to be as bad as possible for the public, its really the only answer. We give $50b/yr in foreign aid, spend ungodly amounts on wars and bombings overseas and generally stationing troops around the world, and imprison people for the possession of plant material. Etc...
Funny how we are broke and in debt up to our eyeballs (ok way over our heads), but cutting a small % of spending will kill the economy. With some semblance of fiscal responsibility, a cut in spending would mean a cut in taxes for everyone.
A cut in spending reduces GDP? That only makes sense if the gubt is an all consuming monstrosity that essentially is the economy. Only in a backwards world is austerity a bad thing. Prudence is dead, long live prudence?