Reporting that half of America has no financial cushion and that "they are living really close to the edge", Yellen's claims of 'a crisis unlikely to happen within our lifetimes' rings hollow and surely sounds like fake news to the 1 out of every 2 Americans who are already suffering and living 'on the edge'. In such a continuing scenario, experts warns, social disorder is inevitable.
“Half of America has no financial cushion,” Jennifer Tescher, president and CEO of CFSI, told CNNMoney.
“They are living really close to the edge.”
While 25 percent of Americans surveyed said they have too much debt, 96 percent of those people also said they feel stressed. “We can’t deal with their health problems if we can’t deal with their financial health,” Tescher said. “It’s your co-workers, the receptionist, the guy mowing your lawn, the woman who takes care of your kids.”
With one of every two Americans spending their entire paycheck, the study’s results showcase the impact of a larger structural problem in the U.S. economy, she said. American’s increasing financial hardship is largely attributed to a “shockingly large” amount of income spent on housing and transportation costs, coupled with stagnant wages, Tescher said.
According to financial expert Peter Schiff in a recent interview with Infowars, the establishment so loathes President Donald Trump that they're setting him up to be the perfect scapegoat of the coming financial calamity. Warning that a system which has its foundation in borrowed money is living on borrowed time, Schiff too claims there’s plenty of evidence to suggest that they’re (the FED) trying to pop the financial bubble that they created, while Trump is still in office.
“It’s interesting that during the entire term where Obama was president, the Fed really only raised rates once. I mean, they raised them a second time, but that’s after the election. Since trump was elected they’ve already had three rate hikes and they’re planning on doing more.
But the low interest rates were part of the problem. The Fed needs to raise interest rates, but when they do that, the economy is going to collapse. The whole bubble, the recovery was phony, we don’t want to keep the phony recovery going. We want to let it implode so we can have a real recovery built on a solid foundation.”
While many have said that what is happening in Venezuela could never happen here in America, the beginning of the financial calamity now happening in the state of Illinois is proof they were wrong as the state racks up over $14.6 billion in unpaid bills and the 'trickle down' effect is felt across the state. It's long been warned that when SHTF, it flows downhill.
This is what happens when a major American state lets its bills stack up for two years.
Hospitals, doctors and dentists don’t get paid for hundreds of millions of dollars of patient care. Social-service agencies help fewer people. Public universities and the towns that surround them suffer. The state’s bond rating falls to near junk status. People move out.
A standoff in Illinois between Republican Governor Bruce Rauner and Democratic Speaker of the House Michael Madigan over spending and term limits has left Illinois without a budget for two years. State workers and some others are still getting paid because of court orders and other stopgap measures, but bills for many others are piling up.
The unpaid backlog is now $14.6 billion and growing. Illinois is even late paying its utilities bills to Springfield, its own capital city. On July 1, the beginning of the next fiscal year, billions of dollars in road projects are scheduled to grind to a halt.
“Right now, our state is in real crisis,” said Gov. Rauner last week, on the eve of a special legislative session where lawmakers are trying to hammer out an agreement before the state enters its third budgetless year.
With parts of Illinois already a 'war zone' as seen in the countless shootings and 329 murders already in Chicago in 2017, what might happen should Illinois begin to experience the same kinds of supply shortages now being experienced by those living in Venezuela? While it'd be much easier for residents living there to cross state lines to buy food and supplies than it is for Venezuela residents to get out of the country there, if things get totally out of control in Illinois, there may be no choice but for government to crack down upon the anarchists and criminals to protect the innocent majority.
Margaret Thatcher once said that the big problem with socialist governments is that “they always run out of other people’s money”, and unfortunately we are witnessing this play out in a major way in the state of Illinois right now.
It is the worst financial crisis in the history of Illinois, and State Comptroller Susana Mendoza sounds like she is about ready to tear her hair out in frustration…
Would you continue to do work for the Illinois state government if you knew that they were this far behind on their bills and that it is doubtful that you would be paid any time in the foreseeable future?
Of course the answer to that question is quite obvious. As contractual relationships break down, social services are starting to suffer, and there is not much hope that things will take a turn for the better any time soon.
In the end, the state of Illinois is either going to have to cut spending dramatically, raise taxes substantially or some combination of both. And since the Democrats have very large majorities in both chambers of the state legislature, I wouldn’t count on spending being cut that much.
This is the thing with big government – it always has a tendency to get even bigger. And the bigger government gets, the more of our money and the more of our freedom it takes away.
With 69% of Americans not having an adequate emergency fund should even minor emergencies emerge, what might happen should a major calamity strike such as a cyber attack that takes down our banking system and/or electrical grid, a war breaks out upon US soil making food and supplies difficult if not impossible to acquire or the banks across the board 'go under', leaving us holding the bill? With tens of millions of Americans galloping towards '3rd world nation status' whether Jane Yellin and the FED want to admit it or not, this is one of the reasons why we prepare.
In closing, we've linked to several different stories and resources below that we've found to be helpful for 'prepping on a budget', little hints and wisdom that we all could use as 2017 rolls onwards. The final video below looks at prepping on a budget and as always, we'd all appreciate you sharing with us any 'prepping on the cheap' tricks of the trade that you might have in the comment section below.