Current Events And The Need For Preparedness

I think the following items are noteworthy, though I am at a loss to say much about them other than to express my concern.

Number 1:

The second-largest merchant-vendor for credit card use is now McDonalds. This suggests that many consumers are in serious distress if they need to get their $4 Big Mac and fries with a credit card.

Source: Minyanville: The Illusion of Wealth

Number 2: About 10% of all mortgages are either delinquent (6.99%) or in the foreclosure process (2.97%).

Number 3:

WASHINGTON (Reuters) – Food stamps, the main U.S. antihunger program which helps the needy buy food, set a record in September as more than 31.5 million Americans used the program — up 17 percent from a year ago, according to government data.

The number of people using food stamps in September surpassed the previous peak of 29.85 million seen in November 2005 when victims of hurricanes Katrina, Rita and Wilma received emergency benefits, said Jean Daniel of the USDA’s Food and Nutrition Service.

September’s tally — the latest month available — was also boosted by hurricane and flood aid, Daniel said on Wednesday.

But anti-hunger groups said the economic downturn is the main reason behind the higher figures.

“It’s a disturbing trend,” said Ellen Vollinger, legal director with the Food Research and Action Center. She said she expects more people will turn to food stamps as unemployment figures rise and the economy remains weak.

One in 10 Americans were participating in the food stamp program as of September, said Dottie Rosenbaum, analyst with Center on Budget and Policy Priorities, a think tank.

Source: Reuters: Record number of Americans using food stamps: report

This video on America’s deficits was quite interesting:

I’m not sure that we can necessarily say that any one of these items paint a more dire picture than things have been at various times in the past. For every single statistic, you could find a comparable one from history. But throw into the cauldron the exponential rate of government debt, the evaporation of virtual wealth (stocks and fiat currency), the lack of untapped home equity (whether real or imagined), the impending retirement of the baby boomers, and you have a situation where something significant must soon change. Something has to give.

Who would have thought Americans would have tolerated the nationalization of banks without so much as a peep? The path to unresisted change is through the control of credit and virtual wealth. It has become our soma. The populace will accept any change, so long as they get (1) a promise to protect their virtual wealth and (2) someone to blame. We’ve been conditioned for this by all the cushions that we’ve enjoyed. If we lose our job, no big deal, we still have credit cards, home equity loans, unemployment compensation, etc. Control over those things means control over people, especially people with no savings, no food storage, no ability to produce food, and no real assets. And we’d be naive to think that those that wield this control won’t be tempted to use it.

In the times ahead, we need to be prepared on many levels. Keep your trust in God, and your powder dry.