[How I Look When I've Been In A Fight]
Kong Sez

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U.S. Treasury To Default On Its

Debt !

Kong Sez:

    Today I have been bombarded by the thought that so many things are coming together and are likely to create the so-called "perfect storm" in our financial affairs, that I have been inspired to write about what's been on my mind.

    First, we have the situation created by our illustrious government, wherein they bailed out all the big contributors to their political campaigns, namely, the wheeler-dealers at the big banks, the Big Three automakers, AIG, Fannie Mae, and Freddie Mac.

    Second, we have the Fed keeping interest rates so low, money is practically free, if you're a big bank. The rest of us can't get a loan, even if we have collateral and perfect credit. So the taxpayers, who are expected to provide the funds for all these bailouts, are losing their jobs and can't pay their mortgages, which results in more loans going "toxic" at the big banks. The idiots haven't yet cottoned to the fact that this is a self-perpetuating cycle.

    Third, we have the Federal government owing more money than it ever has a prayer of getting, and planning to borrow still more to fund the staggering deficits it plans on running for the foreseeable future.

    What this means, folks, is that the time is rapidly approaching when the government will have to default on its debt. This will happen because the Federal Reserve will finally have to decline funding any more of the United States Treasury's debt. For a time, The Fed will inflate to cover Treasury debt, but if it continues too long, the United States dollar will go the way of the Zimbabwe dollar. Medicare and Social Security "trust funds" have been filled with nothing but Treasury I.O.U.s for many years now. What we will probably wind up with is the worst of both worlds — Treasury default and serious (but not hyper) inflation.

    Kong believes the United States welfare state will come to an end, just like the socialist state came to an end,and for much the same reasons. When that happens, somebody, and more likely a lot of somebodies, will end up holding the empty bag.

    Who will get the short end of the government welfare default?

    In a word: Everyone.

  • During mass inflation (inflation greater than 10%, but less than hyperinflation), everyone gets the shaft, because everyone's dollar-denominated savings loses value at an ever-increasing rate.

  • If there are price and wage controls, along with shortages that always result from these conditions, almost everyone will suffer.

  • If there should be hyperinflation, everyone will suffer, only worse.

  • If the government defaults on treasury debt, central banks, insurance companies, and investment pools will suffer.

  • If the government defaults on Medicare, those who are dependent on it will suffer. This is probably the most likely default to occur first, and it will occur one benefit at a time.

  • Before the government cuts off Medicare, however, look for Congress to run even greater deficits in an attempt to keep funding the program. This means the Treasury will have to sell more debt, but would-be buyers by that time will be highly cautious and will suspect that the Treasury might default. So in order to coax reluctant investors into buying potentially toxic Treasury debt, the Treasury will have to offer some very high and enticing interest rates, like 20%.

  • Interest rates this high will really create chaos in the capital markets. Corporate bond rates will rise and force down stock prices. Millions more jobs will be lost because businesses will not be able to afford to keep their lines of credit open, and severe unemployment will result. In short, there will be hell to pay.

    If this whole scenario sounds like a vicious circle to you, that's because it is.

    Dr. Gary North puts it this way, writing on his members-only website in an article entitled, "When T-Bill Interest Rates Go to 20%, Where Will Your Job Go? Be Prepared." He writes:

Delaying an open default by allowing rising rates will produce severe unemployment. But Congress always wants to play kick the can. It does not want to cut existing programs. Investors have ponied up the funds so far, but at some point, they will not do so at six on-hundredths of a percent, as they have this month.

If this happens, millions of jobs could disappear in a few months. Anyone who is not preparing for this with at least 5% of his after-tax, after-tithe income is truly rolling the dice with his future. We all need a reserve for the day the pink slip is handed out.

People will be forced to cash in their retirement plans.

    In another article on his members-only website, "The Great Federal Default: Winners and Losers," Dr. North continues the thought by pointing out the obvious (or what ought to be obvious, if we would only take an unbiased look at it):
Lesson: Do not become dependent on Federal welfare. The supply will be cut off.

Kong Sez:

    Folks, there continues to be no good news out there. Prepare yourself to be more self-reliant and self-sufficient now, because we are rapidly moving toward a time when it will be too late. Once wage and price controls begin, you are looking at the beginning of the end, and you will suddenly not be able to get the things you need, and certainly not at a price you can afford.

    Get ready NOW. Store food and essential items you will need to survive the coming chaos. Americans these days, especially those on Federal welfare programs, think they deserve the government-given largess, and they will not be happy when it is suddenly cut off.

    Get your garden going now, so you will at least have some fresh vegetables. Before all this happens, you need to learn what you can grow well and get your soil prepared to grow it. While you are at it, learn how to preserve (canning) what you grow. This used to be the way hardy American pioneers prepared for the winter. Let's get back to our roots! Eat locally grown food, especially that which you grew and canned. Your spirit and your health will both improve.

    Trends expert, Gerald Celente, says "There is no economic recovery—it's a cover up!"

    Watch the whole interview:

When Violence Strikes, Women Are Always A Target

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Get Prepared!

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Use It Up !
Wear It Out ! Make It Do !
Do Without !


It's Still Coming!
Subduction: One Plate Goes Under Another As The Other Goes Over The Former.

Interestingly...Early Church Saints Said: "Mountains Will Roll Over Another." This Sounds Like They Saw Subduction.


The Second Ammendment!

Learn This...Memorize This...Let It Become a Part of You! Bring It Back When The Terrible Chaos Is Over...If There Is Something To Come Back To.

[Running For Your Life]

In The Meantime

Run For Your Life

From now on, Folks, it's gonna get pretty rough! In fact, downright cussed.
Mr. Ugly Is Showing Now!

But For Now...

[Running For Your Life]

Keep Running

Keep Your Purse and Scrip With You—Luke 22:36

And Now

Get Two Guns—Luke 22:36–38

Before The New Dude Won't Let You Have Them

Times in America will change rather abruptly.
Your WebMasters suggest you check your
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We Feel This Is Going To Be A Long, Hard Siege
Get Prepared...Time Is Short Now...
Other WebPages of Interest:

Purifying Water ¦ When The Hell Breaks ¦ Gun Page

Galactic Plane

Soon..The Rocks Will Fall...See The Galactic Plane

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The Impact and Its Consequences

Ronking & Gronking In Distress
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Mass Extinctions Occur Around This Time Of Passing Through The Galactic Plane
The Earth Is Also Coming To The End Of An Age, As The Precession Ends

The Rocks Are Coming

[The Rocks Are Coming]

A City Being Stoned

[A City Being Stoned]

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