Sheep to the Slaughter: Americans Raid Savings
Accounts To Stay Afloat and Maintain the Dream
by Mac Slavo: Doctor
Doom Warns: 'World War III Will Occur In the Next Five Years'
lots may be full and Americans may be buying must-have electronics,
home decor products and new cars, but wheres all the money
previously, the economic destruction following the collapse
of 2008 is slowly, but surely taking its toll, forcing many people
still holding on to a paradigm of consumption to dip into cash savings,
retirement accounts and personal credit lines:
four years after the United States fell into recession, many Americans
have resorted to raiding their savings to get them through the
stop-start economic recovery.
ominous sign for Americas economic growth prospects, workers
are paring back contributions to college funds and growing numbers
are borrowing from their retirement accounts.
worry that a recent spike in credit card usage could mean that
people, many of whom are struggling on incomes that have lagged
inflation, are taking out new debt just to meet the costs of day-to-day
households have been spending recently in a way that did
not seem in line with income growth. So somehow theyve been
doing that through perhaps additional credit card usage,
Chicago Federal Reserve President Charles Evans said on Friday.
they saw future income and employment increasing strongly then
that would be reasonable. But I dont see that. So Ive
been puzzled by this, he said.
the saving rate is falling out of necessity. Food and energy prices
have risen and folks dont have as much money to spend on
the things that they would like.
Americans used to borrow against the value of their homes before
the property crash, now many are taking out loans from their 401(k)
retirement savings plans.
third of plan participants currently have a loan outstanding,
according to an upcoming survey of 150,000 holders of 401(k)s
by consulting firm Aon Hewitt.
nothing to be puzzled about here.
There are over
25 million people in this country whose jobs have been destroyed
by economic malaise and outsourcing to foreign companies. Monetary
easing and other financial machinations have forced the price of
essential goods like food, gasoline and life-saving services through
still living in a world where we identify ourselves by the products
we wear, what we drive and how we entertain ourselves, havent
yet realized that the consumptive paradigm of the last 30 years
is coming to an end. The majority of people, even those going through
financial hard times, simply bury their heads in the sand in an
effort to avoid the reality that the economy is on a trajectory
as bad as, if not worse than, the Great Depression.
they may be making less money or no money at all everything
is still OK it has to be because the Jones family
across the street always has the latest gadgets, goes on luxurious
weekend getaways, eats out regularly, and they even bought a new
car last month. So, if the Joneses can do it, then the economy and
financial markets must really be in recovery just like those experts
say on television.
On top of that,
this is America, the richest nation on Earth, and its managed by
the best, brightest, and most benevolent. We may have had a slight
down-turn, but those people in Washington and on Wall Street know
what theyre doing and theyll make sure nothing goes
Since all of
the experts say the recession is over and everything will be returning
to normal including more jobs and regular pay increases
theres nothing to lose.
Americans being led, yet again, to financial slaughter (and perhaps
worse), are willing to take the experts on their word. Theyll
pull money out of their retirement accounts, bank savings account,
even take on more debt than ever before, just to stay afloat in
anticipation of that job, wage increase and return to normal
theyve been promised.
This, of course,
is a dream world, but millions upon millions of Americans (and Europeans
too), believe that all of the fundamental problems responsible for
the global meltdown a few years ago have been resolved. They still
have faith in a false paradigm that has already collapsed.
of it is that they will spend everything, believe everything theyre
told, and do whatever their elected masters tell them, until they
are eventually left with nothing. No financial stability. No accumulated
wealth. No liberty.
from SHTF Plan.
Slavo [send him mail] is a
small business owner and independent investor.
© 2012 Mac Slavo
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