Recently the Presidents debt commission offered up its plan to reduce the deficit, but was not passed because they needed 14 votes and only received 11. Recently the Chairman of the debt commission was on FBN. The Chairman said that if the debt commission was unable to come to an agreement that the incoming freshman wont take a level headed approach to the debt, they were elected to cut spending and that's exactly what they'll do. Since the debt commission wasn't able to come to an agreement, expect a drastic reduction in the budget, but this is only federal spending.
Currently all the States are in trouble financially. Everyone understands that California, New York, Illinois, and other states are reaching their point where, in order to cover their budgets, are going to start cutting services. When you start cutting services such as state employee's, police, and firefighters everything will start to fall apart. Some states will rely on the federal government to bail them out, but with the new freshman in office, I'd doubt that will happen.
Could there be a global economic collapse? Yes, we're starting to see signs of the Euro collapse and China has been caught red handed hiding their debt estimated now at 60% of their GDP from the 15% they were trying to pass onto the world. Everyone is looking at Europe saying that they're on the verge of collapse, but people haven't even started taking a look at the US. The US is 40% of the worlds GDP in imports, so our economic health is most important. If the states start defaulting or needing to be bailed out, that will trigger an economic collapse starting in the US and spreading like a virus to the rest of the world.
Another thing that could stop and crash the world economy is Oil. I just received my daily newsletter from Uncommon Wisdom stating that in the next two years oil will be past $200 because the world has passed it's “peak production” about 10 years ago. Fed Chairman Bernanke stated in a 60 minutes interview that he sees the economy taking as long as 5 years to recover to 2008 standards. If there is any type of recovery going on within the next 2 years or even a recession, $200 a barrel of Oil will bring any economy to a stop. Oil is such an important part of our every day life that the cost of energy, transportation, and goods will skyrocket so that only a few will be able to afford it.
So, what is it that will happen? Well, the military is already planning how to handle these events when they occur. I don't think there will be an IF at this point in the game. As recently as 2008 the US military was deployed according to http://www.commondreams.org/newswire/2008/10/21-4
“The American Civil Liberties Union today demanded information from the government about reports that an active military unit has been deployed inside the U.S. to help with "civil unrest" and "crowd control" - matters traditionally handled by civilian authorities. This deployment jeopardizes the longstanding separation between civilian and military government, and the public has a right to know where and why the unit has been deployed, according to an ACLU Freedom of Information request filed today.”
“According to a report in the Army Times, the Army recently deployed an active military unit inside the United States under Northern Command, which was established in 2002 to assist federal homeland defense efforts and coordinate defense support of civil authorities. This deployment marks the first time an active unit has been given a dedicated assignment to Northern Command.”
“Since the terrorist attacks of 9/11, the Department of Defense has dramatically expanded its role in domestic law enforcement and intelligence operations, including the National Security Agency's warrant less wiretapping programs, the Department of Homeland Security's use of military spy satellites, and the participation of military personnel in state and local intelligence fusion centers. The ACLU has repeatedly expressed concern about these incremental encroachments of the military into domestic affairs, and the assignment of active duty troops to Northern Command only heightens these concerns.”
You can expect the US to deploy active duty military, although unconstitutional, inside the borders of the US. You can expect that there may not even be any elections allowed either because of civil unrest or economic collapse. You can expect curfews, people being sent to FEMA camps, and the loss of all your basic rights under the Constitution. When the rest of the country decides to act up the military will be called up and there will be nothing at that point you can do. It's not hopeless, but follow your survival instincts. Pack up food and get out of whatever currency you have and buy precious metals like gold and silver because they will be the only currency that is usable when the collapse happens.. Most importantly, make sure to ban together with your neighbors and friends because they will be the key to your survival in many ways.
**Blogger Note: My next few articles will be regarding the survival of an economic collapse and how to survive Marshall law**