The Top 10 Scary Facts About the New Debt Deal

With all the fervor that has been experienced over the last month concerning the “Debt Crisis” back in Washington D.C. it seemed only right to take a minute and get in front of the camera with Thomas to discuss the crazy stuff going on in washington how it may affect you and I. So watch and enjoy!

Mike Lee, The Debt Ceiling, and DC Scare Tactics

Mike Lee, The Debt Ceiling, and DC Scare Tactics [ 53:14 ] Play Now | Play in Popup | Download

With Mike Lee, Utah’s Freshman Senator and many other Freshman Congressmen declaring their intent to vote against raising the Federal Debt Ceiling at all hazard, many in DC are declaring how taking that approach could spell doom and destruction for our nation and it’s triple A Credit Rating.

What does that really mean for Washington and for US Citizens? Listen in as we talk about the reality of where we are, how we got her, and what we should do to prevent it from happening again.

Could the Bail-Out Spell Personal Disaster for YOU?

Which ever way the Federal Government ultimately chooses to deal with the problem of the Wall Street Bail-Out, there are potentially painful days ahead for you and your family.

Washington could decide to let the market work things out naturally, letting banks and other businesses declare bankruptcy and then allowing a short time for the market to adjust and return to a more nominal level. There will still certainly be a term of economic and emotional pain from a few months to a year, possibly longer.

Or the government could decide to arbitrarily bail out the markets and by so doing begin the process of propping up the prices and wages of the nation.  If so, we may find ourselves in for a long ride on the pain train. It may take a little longer but the pain will eventually reach us tax payers. We could experience the same level of hardship (if not greater) than what was experienced during the Great Depression.

In either case it is fundamentally important that you are adequately prepared to deal with either painful situation. We advise that in whatever circumstances you find yourself, that you do whatever it takes to buy your family at minimum a 6 month supply of food.

You may ask, “Why should I get a 6 month supply of food? I can run to the store.  Even if there was a run on the store, I could just run down myself and get enough to last until the store re-opened.”

Let’s talk for a moment about food and the system of credit that it revolves around. We will simplify this a little bit. The Farmer sells his produce to a distributor, but the distributor rather than paying cash for the product, will most likely negotiate terms with the farmer, say 30 day terms (NET30), which gives him 30 days to pay for the produce. Meanwhile, the distributor takes the product and sells it to a retail store, and they likewise desire terms with credit, so they purchase the food on NET15 terms from the distributor. Then the Store sells the produce to the end consumer, they pay off their net15 terms with the Distributor and then the distributor pays off his debt to the farmer. Everyone has profited through the use and extension of private credit.

But what happens if the market is volatile, specifically, that the value of the dollar is inflating at an extremely rapid rate? So quickly in fact that it causes the Farmer to wonder if the dollars he sells his produce for on credit will be worth that much at the end of the 30 days. What then? The same thoughts go through the Distributor’s head; that it makes potentially more economical sense for the farmer to keep his crop rather than sell it. And they all watch as the value of the dollar plummets.

This is a very plausible scenario given the time and circumstances that we live in today. If the Farmer looses faith in the dollar/economy of the US, there is the very real potential of having little to no food on the shelves of our great supermarkets. If such a problem arises (taking months or years to correct), you could be left with nothing to eat simply because you didn’t take the time to adequately prepare.

It wasn’t raining when Noah built the ark.  It may not be raining now but it certainly is sprinkling! As I said earlier, if you can afford it I highly recommend having at least a 6 month supply of food. Maybe I am totally wrong and the markets will correct themselves, operate optimally, and government will keep its hands off.  But what if that doesn’t happen?  Even if supermarket shelves stay stocked, what if you lost your job because of the economy? At least you would have enough food to sustain your family while you searched for new employment.

THE TIME TO ACT IS YESTERDAY. Avoid as much pain as possible by preparing today for the challenges that tomorrow could bring.  Self-reliance is ALWAYS timely.

If you are interested in growing or acquiring some food storage, I encourage you to contact Joseph’s Storehouse for a professional consultation and advice on what foods are best for you to store.

P.S. Having a little food storage in their homes could have saved lives of many during/after hurricane Katrina who starved to death while they were waiting for someone to rescue themselves from the flood. Don’t become a statistic!

Ron Paul, Opposition to the Bail-out

“Long term, this is disastrous.”

Don’t make the problem worse by encouraging the continued creation of credit. Don’t blame the free markets for this problem. The markets have been regulated throughout the whole creation of the problem.

We must move forward with common sense. Watch the Video.