“Dead Government Walking” and A Response?

The Economy – “Dead Government Walking”: Via lifeaftertheoilcrash.net on 11/3/09, we sourced  doomers.us to sprott.com and the exceptional article entitled “Dead Government Walking”. Here are a couple of the key elements of that piece:

• “ … the United States Government is on a trajectory to default on their obligations. In it’s current condition, it will not be able to fund its forecasted budget deficits and unfunded social security and medicare promises on top of its current debt obligations. … we don’t know when the market will react to it, but there is no longer any doubt about the extent of their trajectory. There simply isn’t enough taxing power, value creation or outside capital willing to support its egregious spending.”
• “From 2004 to 2009, US obligations increased by an average of almost 50% over this six year period under both calculation methods, while US government revenue increased by only 12%. No company or government can increase its liabilities by more than four times the rate of its revenue and stay solvent for an extended period of time.”

A Response?: We, (PH), wondered if this bit of information from the Financial Times (FT.com) on 11/03/09 could be a response, in part, to the information presented above in “Dead Government Walking”. See for yourself:

• “Gold prices continued to rise on Wednesday extending the all-time highs which followed India’s central bank bought 200 tonnes of the precious metal, swapping dollars for bullion as the country’s finance minister warned the economies of the US and EU had collapsed.”

Food – Stamps: From newsmax.com on 11/4/09 we get this headline, “A Record 36 Million in U.S. on Food Stamps”. Here’s the nut:

• “The number of Americans receiving food stamp assistance soared above 36 million for the first time in August, the eighth month in a row that enrollment set a record, the U.S. Department of agriculture said on Wednesday.
• USDA said 36,492 million people were receiving food stamps, also known as the Supplemental Nutrition Assistance Program. … At the current rate, an estimated one in eight Americans receive benefits.”

PH Comment: The above information are only a couple of snapshots of conditions in the US and the world at the current time. These snapshots along with the comments/observations from economic and social analysts like Prof. Nouriel Roubini, Martin Weiss, and Gerald Celente, would seem to demand the prudent family prepare for a darker future.

At PrudentHome we still advocate strong general preparation for very hard times in the future along with heavy investment in faith, family, friends and neighbors.

Until next week; keep your eyes on the horizon as the weathers changing fast.