Back in Jan 08, I pondered aloud several questions related to the potential Social Implications of (what was then) a looming economic crisis. Turns out, many readers were wondering the same and this was one of my highest traffic posts ever.
If you haven't already done so, read the info at the following link then come back to read the rest of this post.
SOCIAL IMPLICATIONS of a SIGNIFICANT ECONOMIC DOWNTURN
Well, nine months have passed since those words were written and there can now be no doubt (1) that this crisis is one of the most significant economic downturns in history and (2) the Massive bailout package being worked is just a bandaid to slow the controlled financial implosion. Even John McCain realizes this and recently stated in his debate with Obama: "This is not the beginning of the end, but the end of the beginning - if we come out with a package that will keep these institutions stable..
With that digested and the knowledge things are likely to get far worse, what can we anticipate for our future - just how bad could things get for the little guy living in the suburbs - trying to raise a family?
I'll refrain from trying to list all possible consequences, as there are far too many potential outcomes, but I would like to highlight several major consequences that could be initiated by a worst-case financial panic...
Note: I'm not trying to scare anyone here, but merely trying to create an awareness and food for thought - so that you can use the information to better prepare your family (in the event the worse-case scenario actually happens).
Let us hypothetically propose the economic crisis intensifies:
Hundreds more banks/financial institutions implode and the FDIC runs out of money - a nationwide run on the banks ensue; consumer credit has consistently gotten worse and available credit-card credit-lines have finally been turned off/reeled in - unemployment skyrockets due to the lack of new credit/spending; inflation rages as the dollar falls sharply; the economic crisis deepens and trillions in unpayable derivative contracts unwind quickly - stock markets collapse around the globe and the crushing pressure is exacerbated by foreign holders of US Debt who finally rush to the exit doors.
The Gvt panics and Stock Markets are closed indefinitely while ATM machines, banks and electronic commerce are shut down across the nation (as the government tries to figure out what to do). People grow anxious as their credit cards and debit cards don't work, and with no cash on hand, they can't buy food or gas... Those who do have cash rush to fill up their gas tanks and empty the shelves at their local grocery stores. The real economy comes to a screeching halt as deliveries of food, gas, etc can no longer make it to market.
Social unrest and general panic set in as our just-in-time economy breaks down. People are confused and scared while the government repetitively tries to reassure that they have everything under control. Hysteria eventually sets in as social chaos, looting, and roving gangs terrorize the masses (taking what they need from the unprepared). Similar situations take place across the nation as people who were on the fringes of society become hungry/desperate and/or take advantage of the lawless situation.
Martial law is ultimately declared and National Guard troops are deployed to major cities around the nation - to help restore order, distribute food, etc.
So many unknowns
Could this actually happen? I don't know - you be the judge; but it's probably better to be a prepared alarmist than an unprepared victim... Think about it.
If you've watched Paulson, Bernanke, Bush and the rest of our worried leaders over the last couple of week, you've probably been able to sense their state of alarm - Yes, they truly realize how big this crisis is...
What can you do to prepare?
I could list a thousand things here from generators, flashlights, etc, but the most important (I believe) are:
1) Have at LEAST a couple of weeks worth of non-perishable food/water on hand
2) Have enough cash on hand to make it through a possible electronic commerce shutdown
3) Maintain close relationships with friends/neighbors (help each other out)
4) If you have a gun, know how to use it - to protect your family, friends and valuable assets (cash/food).
Closing:
Yes folks this could be bad, but we Americans are an industrious/resolute bunch and (though it will take some time) we will find a way to pull out of it.
However, be aware: regardless of the ultimate significance of this downturn, America is likely to forever change as the US Dollar loses it's reserve currency status in the not too distant future.
At a MINIMUM, this economic crisis will cause our standard of living to fall and our cost of living to increase significantly.
Bottom Line:
Our future is uncertain, and we're definitely in for some difficult times ahead, but the world will NOT end - and we will survive.
Again, this post was no meant to scare, but to inform by thinking outside the mainstream box. Use this information as you may, but it's probably not a bad idea to prepare for whatever the outcome.
Best regards
Randy
Showing posts with label America. Show all posts
Showing posts with label America. Show all posts
Sunday, September 28, 2008
Tuesday, June 10, 2008
NAFTA Superhighway and North American Union: a Scary Reality
I've been warning you about the North American Union (NAU) for quite some time now: AMERO and the North American Union.
My thoughts on the NAU: Mexico has Cheap labor and Canada has Abundant Natural Resources
Once again, just like NAFTA, the NAU will lower America's Standard of living through job outsourcing.
I hope we can all agree that corporate bottom lines were the main reason for outsourcing our US manufacturing base... So today we receive cheap imported goods at our borders, and these goods get handled by Union dockworkers and then get put on American Trucks (high labor costs cutting into corporate profits). Suppose now we now take all these cheap imports from Asia and offload them in Mexico (Mexican labor with Mexican wages and few benefits), put them on Mexican trucks and ship products to final destination (anywhere in US or Canada) via the NAFTA Superhighway.
Ultimately, this move increases bottom-line profits for BIG BUSINESS, and we all know big business controls our elected representatives through huge campaign contributions, high power lobbyists and special perks...
End result: That Giant Sucking sound (loss of American Jobs) will merely get louder and our standard of living continues to fall -- until it becomes cheap enough to employ American workers once again.
Anyway, the reason for this post is: a friend of mine over at ECONOMY IN CRISIS just posted up a new article illustrating that, though officially denied, the plan is still intact, yet few seem to take an interest -- while those who do get marginalized. What's it going to take folks?
NAFTA Superhighway and North American Union: a Scary Reality
The NAFTA Superhighway is not a myth, but instead represents a road leading to a troubled future. In an attempt to facilitate and create a North American trade bloc, quickly transporting cheap imported goods from China to America’s many Wal-Marts – our leaders are creating a North American Union and a massive highway – four football fields wide – running from Mexico to Canada. The highway promises to import a surplus of goods, destroy any country-side in its path and ease a process of outsourcing American jobs south-of-the-border to cheaper rates of pay and lower environmental standards.
While most other major national newscasters have blindly accepted the government’s line that the “NAFTA Superhighway” is a “myth,” Lou Dobbs has refused to be fooled. In search of the truth, Mr. Dobbs sent investigative reporter Bill Tucker to Texas to see for himself.
The evidence Mr. Tucker uncovered was powerful, compelling, and shocking. It confirms everything we here at the NAU War Room have been saying about the government’s hidden drive to absorb America into a “North American Union” (NAU) with Canada and Mexico, anchored by a massive “NAFTA Superhighway” designed to speed cheap Red Chinese and foreign goods from Mexico into the U.S. and Canada.
NAFTA Superhighway and North American Union: a Scary Reality
My thoughts on the NAU: Mexico has Cheap labor and Canada has Abundant Natural Resources
Once again, just like NAFTA, the NAU will lower America's Standard of living through job outsourcing.
I hope we can all agree that corporate bottom lines were the main reason for outsourcing our US manufacturing base... So today we receive cheap imported goods at our borders, and these goods get handled by Union dockworkers and then get put on American Trucks (high labor costs cutting into corporate profits). Suppose now we now take all these cheap imports from Asia and offload them in Mexico (Mexican labor with Mexican wages and few benefits), put them on Mexican trucks and ship products to final destination (anywhere in US or Canada) via the NAFTA Superhighway.
Ultimately, this move increases bottom-line profits for BIG BUSINESS, and we all know big business controls our elected representatives through huge campaign contributions, high power lobbyists and special perks...
End result: That Giant Sucking sound (loss of American Jobs) will merely get louder and our standard of living continues to fall -- until it becomes cheap enough to employ American workers once again.
Anyway, the reason for this post is: a friend of mine over at ECONOMY IN CRISIS just posted up a new article illustrating that, though officially denied, the plan is still intact, yet few seem to take an interest -- while those who do get marginalized. What's it going to take folks?
NAFTA Superhighway and North American Union: a Scary Reality
The NAFTA Superhighway is not a myth, but instead represents a road leading to a troubled future. In an attempt to facilitate and create a North American trade bloc, quickly transporting cheap imported goods from China to America’s many Wal-Marts – our leaders are creating a North American Union and a massive highway – four football fields wide – running from Mexico to Canada. The highway promises to import a surplus of goods, destroy any country-side in its path and ease a process of outsourcing American jobs south-of-the-border to cheaper rates of pay and lower environmental standards.
While most other major national newscasters have blindly accepted the government’s line that the “NAFTA Superhighway” is a “myth,” Lou Dobbs has refused to be fooled. In search of the truth, Mr. Dobbs sent investigative reporter Bill Tucker to Texas to see for himself.
The evidence Mr. Tucker uncovered was powerful, compelling, and shocking. It confirms everything we here at the NAU War Room have been saying about the government’s hidden drive to absorb America into a “North American Union” (NAU) with Canada and Mexico, anchored by a massive “NAFTA Superhighway” designed to speed cheap Red Chinese and foreign goods from Mexico into the U.S. and Canada.
NAFTA Superhighway and North American Union: a Scary Reality
Tuesday, June 03, 2008
GM and Ford -- Dire Straits
As I’ve stated before, the problems in our economy are many, and the issues at hand are far more than just a housing bubble losing its steam. Although housing has played a significant role in our economy for the last decade, it is just one of the many issues at play... We also have massive trade deficits, increasing cumulative debt, foreigners holding vast sums of dollars, waning confidence in those fiat dollars, soaring energy costs, skyrocketing health care costs, significant inflation, negative personal savings rates, major immigration concerns, nearly broken Social Security system, nearly bankrupt pension plan systems (PBGC), decaying moral foundation, inept leadership, out of control government spending, ignorant/completely oblivious consumers, irrational markets, etc… I could go on, but the main issue I’d like to concentrate on tonight is our faltering American Auto Industry:
I've been talking about our US Auto Industry woes since 2005, and have even posited an eventual Bankruptcy for both Ford and GM somewhere down the line. Why? Well, they have both been bleeding red ink badly and the current US consumer downturn, credit crunch and looming recession is making matters much worse.
Many of you probably don't know this, but in an act of desperation, Ford borrowed $18 Billion back in 2006, using the company as loan collateral -- the first time ever in the company's history.
GM has had it's own set of issues: GM Bankruptcy
Well, based on just released data, it certainly seems as if the situation isn't getting any better for these two -- and sky-high gas prices are making things worse:
Ford, GM See Sales Tumble in May
GM, the nation's No. 1 auto seller, said auto sales fell a greater-than-expected 30% in May to 272,363 vehicles. Truck and SUV sales dropped 39%, while car sales fell 17%.
Ford, meanwhile, said its May U.S. sales fell 15.9% to 217,377 vehicles from 258,391 the prior year. Adjusted for one extra selling day, sales dropped 19%.
GM Finally Gets it-- Admits SUVs Are a Dead-End
The company's announcement that it is embracing compact cars, shutting down four truck plants and possibly even dumping Hummer shows GM -- and, by extension, Detroit -- realizes fuel prices aren't coming down and SUVs are a dead-end. It's a fundamental change of direction for the world's largest automaker, which has for more than 10 years counted on pickups and SUVs to provide the bulk of its sales -- and profits -- while all but ceding the passenger car market to Japan and Europe.
But with gas poised to top $4 a gallon any day now, auto sales tumbling and the economy tanking, company CEO Rick Wagoner -- like his peers at Ford and Chrysler -- is scrambling to keep up with seismic changes that are coming far faster than anyone expected.
G.M. Closing 4 Truck Plants in Shift Toward Cars
With no end in sight for elevated gas prices, G.M. announced drastic cuts in production of sport utility vehicles and pickups on Tuesday and stepped up plans for smaller cars and engines.
G.M.’s chairman and chief executive, Rick Wagoner, said G.M. will cease production at four North American assembly plants that make S.U.V.’s and pickups by 2010.
And in a humbling admission that the S.U.V. era is all but over, G.M., Detroit’s leading automaker, said it was considering selling the gas-guzzling Hummer brand it once regarded as a pillar of future growth.
Ford F-Series' long reign as U.S. top-selling vehicle ends
After decades of sales domination, the Ford F-Series was outdone as the best-selling vehicle in America in May by four Japanese cars — a development that symbolizes the difficulty Ford Motor Co.’s turnaround now faces.
In May, F-Series sales plummeted 30.6%, to 42,973, as customers continued to reject trucks in favor of more affordable, fuel-efficient cars.
The F-Series decline meant the title of top-selling vehicle went to the Honda Civic, which starts at $15,010 and is rated at 29 m.p.g. in combined city-highway driving. The sporty compact car earned the purchases of 53,299 customers last month, an increase of 37.1%.
The F-Series has been the best-selling vehicle in the United States for 26 years.
Ford has drastically cut truck production and announced an incentive program to spur sales of its F-Series. Ford is offering customers the chance to purchase or lease a 2008 F-150 for the same price employees pay. Beginning today and running through June 30, Ford’s Employee Pricing Program will be available on 2008 model F-Series pickups, including the F-150, F-250 and F-350. Harley Davidson and chassis cab models are not included.
Ford Motor Credit Hurts Recovery, Independence
Ford (F) is starting to look better and better as an M&A target. The company said yesterday that it was having significant trouble at its lending unit. At Ford Credit "Delinquencies are rising on its loans -- especially those for big trucks -- and some of its borrowers owe more than their vehicles are worth," according to The Wall Street Journal.
Ford faces huge losses in it North American operation. Management had hoped for operating profits in 2009 and then backed down on that prediction. It now seems almost certain that Ford will have to cut more workers, idle more plants, and squeeze more suppliers. At some point all of that reaches a limit.
Ford may have no alternative other than to sell stock or borrow money to underwrite its prolonged recovery. The cost of debt to a company like Ford which carries a "junk" rating, will be dear.
Ford cannot support huge losses and substantial debt service forever. At some point, perhaps toward the end of this year, the Ford family, which has a large portion of the company's voting shares, will have to pick Chapter 11 or sales to a foreign buyer.
Closing:
As I've stated before: unfortunately, I believe these two companies are mortally wounded & walking dead.
I think many of you will remember the old Charles E. Wilson Quote: "What's good for the country is good for General Motors, and vice versa."
How true he was. Both the company and country are now in dire straits are both are nearly bankrupt.
I've been talking about our US Auto Industry woes since 2005, and have even posited an eventual Bankruptcy for both Ford and GM somewhere down the line. Why? Well, they have both been bleeding red ink badly and the current US consumer downturn, credit crunch and looming recession is making matters much worse.
Many of you probably don't know this, but in an act of desperation, Ford borrowed $18 Billion back in 2006, using the company as loan collateral -- the first time ever in the company's history.
GM has had it's own set of issues: GM Bankruptcy
Well, based on just released data, it certainly seems as if the situation isn't getting any better for these two -- and sky-high gas prices are making things worse:
Ford, GM See Sales Tumble in May
GM, the nation's No. 1 auto seller, said auto sales fell a greater-than-expected 30% in May to 272,363 vehicles. Truck and SUV sales dropped 39%, while car sales fell 17%.
Ford, meanwhile, said its May U.S. sales fell 15.9% to 217,377 vehicles from 258,391 the prior year. Adjusted for one extra selling day, sales dropped 19%.
GM Finally Gets it-- Admits SUVs Are a Dead-End
The company's announcement that it is embracing compact cars, shutting down four truck plants and possibly even dumping Hummer shows GM -- and, by extension, Detroit -- realizes fuel prices aren't coming down and SUVs are a dead-end. It's a fundamental change of direction for the world's largest automaker, which has for more than 10 years counted on pickups and SUVs to provide the bulk of its sales -- and profits -- while all but ceding the passenger car market to Japan and Europe.
But with gas poised to top $4 a gallon any day now, auto sales tumbling and the economy tanking, company CEO Rick Wagoner -- like his peers at Ford and Chrysler -- is scrambling to keep up with seismic changes that are coming far faster than anyone expected.
G.M. Closing 4 Truck Plants in Shift Toward Cars
With no end in sight for elevated gas prices, G.M. announced drastic cuts in production of sport utility vehicles and pickups on Tuesday and stepped up plans for smaller cars and engines.
G.M.’s chairman and chief executive, Rick Wagoner, said G.M. will cease production at four North American assembly plants that make S.U.V.’s and pickups by 2010.
And in a humbling admission that the S.U.V. era is all but over, G.M., Detroit’s leading automaker, said it was considering selling the gas-guzzling Hummer brand it once regarded as a pillar of future growth.
Ford F-Series' long reign as U.S. top-selling vehicle ends
After decades of sales domination, the Ford F-Series was outdone as the best-selling vehicle in America in May by four Japanese cars — a development that symbolizes the difficulty Ford Motor Co.’s turnaround now faces.
In May, F-Series sales plummeted 30.6%, to 42,973, as customers continued to reject trucks in favor of more affordable, fuel-efficient cars.
The F-Series decline meant the title of top-selling vehicle went to the Honda Civic, which starts at $15,010 and is rated at 29 m.p.g. in combined city-highway driving. The sporty compact car earned the purchases of 53,299 customers last month, an increase of 37.1%.
The F-Series has been the best-selling vehicle in the United States for 26 years.
Ford has drastically cut truck production and announced an incentive program to spur sales of its F-Series. Ford is offering customers the chance to purchase or lease a 2008 F-150 for the same price employees pay. Beginning today and running through June 30, Ford’s Employee Pricing Program will be available on 2008 model F-Series pickups, including the F-150, F-250 and F-350. Harley Davidson and chassis cab models are not included.
Ford Motor Credit Hurts Recovery, Independence
Ford (F) is starting to look better and better as an M&A target. The company said yesterday that it was having significant trouble at its lending unit. At Ford Credit "Delinquencies are rising on its loans -- especially those for big trucks -- and some of its borrowers owe more than their vehicles are worth," according to The Wall Street Journal.
Ford faces huge losses in it North American operation. Management had hoped for operating profits in 2009 and then backed down on that prediction. It now seems almost certain that Ford will have to cut more workers, idle more plants, and squeeze more suppliers. At some point all of that reaches a limit.
Ford may have no alternative other than to sell stock or borrow money to underwrite its prolonged recovery. The cost of debt to a company like Ford which carries a "junk" rating, will be dear.
Ford cannot support huge losses and substantial debt service forever. At some point, perhaps toward the end of this year, the Ford family, which has a large portion of the company's voting shares, will have to pick Chapter 11 or sales to a foreign buyer.
Closing:
As I've stated before: unfortunately, I believe these two companies are mortally wounded & walking dead.
I think many of you will remember the old Charles E. Wilson Quote: "What's good for the country is good for General Motors, and vice versa."
How true he was. Both the company and country are now in dire straits are both are nearly bankrupt.
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