Is the US Heading for Fiscal Disaster by the end of 2012?

The simple answer is yes.  In fact, it’s more like driving the economic car off the fiscal cliff and all these intereventions the Fed keep doing are just lead parachutes.  The probablity of spending cutes along with raising taxes increases this likelihood, too, according to CNBC. 

Meanwhile, Charles Evans of the Chicago Fed referred to the cliff as a “big uncertainty.” At the same time, Atlanta Fed President Dennis Lockhart said the markets could experience “financial shock” if Congress and the White House remain in deadlock over how best to jumpstart the economy.

What will this look like to us?

How will an economic collapse look like to people in the US?  Who really knows, it differs from country to country.  Greece’s collapse looked entirely different from Argentina’s.  One thing is certain, it will be hard for us all.

We really have no idea what it would look like as far as the details are concerned.  We simply know that the results are not good and people will suffer.  Those not prepared will suffer more.

What can we do about it?

While there is no real way for us to prevent it, we can make it a little easier on ourselves.  Have cash, don’t depend on plastic, whether debit or credit.  If the banks fail, you’re stuck for a bit.  Yeah, the bank is federally insured, but nothing says they have to recover your losses within a day or two.  So, again, have some cash on hand.

If there is a collapse, the grocers will run dry pretty fast.  People will know that the prices will jump and they’ll go buy everything they can to provide for their families, so have some food and water stored up.  remember, store what you eat and eat what you store.  Keep a rotation going that takes about 3 weeks or a month to go through.  That will lighten the stress a bit.

Have your home and cars secure.  People may, more likely will, try to steal your things to provide for their families.  They didn’t prepare, so they will be more likely to take.

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