Is the American Economy About to Collapse?

Certain financial writers have been making a little news recently with sensational articles suggesting that the American economy is likely, in one popular writer’s opinion certainly, to collapse in the course of the next year—not sometime in some uncertain future time frame but over the next few months. What evidence does he have and how likely is it?

Escalating National Debt

Some of the major facts facing our economy are clear. One reason for fearing an actual collapse, rather than the existing persistent decline as debt service uses an increasing portion of the nation’s income, is that the size of the debt accelerates over time.

National Debt Chart

The national debt is sky rocketing and its escalation is near the tipping point where it will accelerate so fast it will be unstoppable. Factors beyond the Federal Reserve’s capacity to control will at some time push up interest rates dramatically if unchecked soon.


Food Prices Increase!

For more than a year now I have been observing the widespread anticipation of rising food prices among those who claim to be experts on the subject as well as talk among everyday shoppers as they observe trends in the local grocery stores.

No one expects anything but higher food prices in the months ahead. But how well are we prepared?

Higher Prices Are Here Already

Two Gallons of Milk

Have you been to the grocery store lately? Just a few months ago I could run down to a local store and pick up two gallons of milk for $5.00. Not any more. Yesterday my daughter told me the best advertised sale price now for two gallons of milk is $7.00!

…No really good solutions are out there, I suspect, but in general there are two things that can be done.