Monthly Archives: March 2013

THE IMPORTANCE OF SUSTAINABILITY

Sustainability=Resilience, Resilience=Sustainability

“those with great wealth have captured the for-sale machinery of governance, and “persuaded” the Central State to carve out quasi-monopolies and cartels that enable artificially high premiums. They also buy subsidies, exceptions and tax breaks for their income streams.” “The financial and political Aristocracy will continue to do more of what’s failed because they have no alternative model that leaves their power and wealth intact.” – Charles Hugh Smith

Quit thinking in terms of total collapse, and start focusing on personal independence.  Become resilient and become free from the artificially high costs that dependence on the current systems enables.  The reason people resist becoming resilient is because they worship convenience.  We have become over-dependent on single source systems, and dependence is not liberty!  Liberty is one of the foundational and fundamental pillars of America.  It is intrinsic in the definition of America.  America is supposed to be the land of the free, and I for one don’t want to be enslaved.

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SPEAKING OF TAXES AND INFLATION

Tax

Tax (Photo credit: 401(K) 2013)

I few months ago I asked myself the question “What happens if gas prices start spiking at the same time taxes are spiking?” Well as it turns out, gas is climbing and so are taxes. Debbie Bruister, a mother of four, received a $1,160 raise this school year- about $97 a month, before taxes and other deductions – but the elimination of the payroll tax break shrunk her and her husband’s paychecks by more than $270 a month. They’re paying $3.51 a gallon whereas they were paying less than $3 per gallon in 2012. –http://finance.yahoo.com/news/middle-class-expenses-grow-faster-111900178.html In Virginia, the governor has managed to raise taxes and gasoline prices in one fell swoop by enacting a new wholesale tax on gas paid by distributors, which you know is going to affect the price at the pump. Glad I bought that 4 cylinder Civic.

So below I listed a few inevitable outcomes to gas and taxes spiking at the same time just off the top of my head:

– Increased food costs

– Break down in various supply chains

– Less disposable income – decrease in non-essential spending

Corporate profits begin getting squeezed

Less profits means smaller (or no) raises for employees

Leading to even less disposable income, and the cycle starts feeding on itself

– Becomes more expensive to drive to work

– People (teens mostly I’d imagine) begin stealing gas

– People begin to struggle paying bills

– Loans become harder to get

All of the above can lead to civil disorder, or at the very least people becoming far more uptight and stressed out.

As people have less and less buying power, they will begin losing confidence in the dollar, and as this happens people and countries will stop investing in US Bonds. If that happens then the government will have as much trouble servicing its debt as the individual is having, but that is another topic entirely.