PREPARE Introduction

Below you will find the introduction to PREPARE.

“The mother of all economic storms is headed our way, yet most Americans seem oblivious to the danger. Despite the gathering thunderclouds of annual federal budget deficits and a rapidly escalating national debt, most people are simply ignoring the news and information concerning the coming economic crisis.

There’s really nothing complicated about it. You only need one chart to illustrate our nation’s unsustainable course.

Prepare Only One Chart

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Worst Disaster or Finest Hour?

One of my favorite movies is Apollo 13 (along with Rudy, Braveheart, The Patriot, and Iron Will). Underdog heroes have always inspired me to never give up.

In Apollo 13, shortly after an apparent electrical short/explosion occurs in the rocket ship, all the warning lights and alarms begin flashing in the cockpit and at mission control. That’s when we hear the commander say, “Houston, we have a problem.”

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Billions of Lives Will Be Impacted

Large crowd of people watching concert or sport eventIf Congress fails to take corrective action, more than 300 million American lives will be impacted.  In fact, it’s no exaggeration to say that billions of lives are will be affected (around the world) if the financial crisis in the United States reaches the tipping point.

Why? Because the economies of most nations are directly or indirectly tied to the U.S. economy. As America goes economically, so goes the world.


Who Do You Want in Congress?

Prepare Capitol in DC

I am fiscally conservative, but that doesn’t mean I promote one political party.

Both parties — the Democrats and the Republicans — have acted irresponsibly over the years. I am in favor of any person, group, or political party that will promote (and vote for) for responsible fiscal management.

There are some great people who serve in Congress. Just because the majority are making irresponsible decisions doesn’t mean that every member is in favor of borrowing and spending more.

We should support, applaud, and re-elect members of Congress who consistently demonstrate fiscal responsibility. And we should exercise our rights as citizens to vote out of office members of Congress who promote and vote for fiscally irresponsible legislation.

What You Need to Know

Prepare What You Need to Know

  • The United States of America is on an unsustainable financial course.
  • The next few years will be critical in defining our nation’s history.
  • The greatest threat to our national security is not from our enemies, but from our own financial irresponsibility.
  • The timeline has changed. It is no longer about your children and your grandchildren. It is now about you!
  • The time to prepare is now. We have only a few more years before it becomes mathematically impossible to recover.
  • We are approaching the point of no return.

Perspective on Economic Projections

Prepare 10 charts mixedThe projections in PREPARE are simply that — projections. A wide spectrum of forecasts can be found, even within the federal government itself. For example, the Congressional Budget Office projections will not always agree with those of the White House Budget Office.

In addition, no one knows what the future will bring. In August 2001, no one had factored into their economic projections the consequences of 9/11.

In early 2008, no one could have projected that our nation would have a deficit of $1.4 trillion in fiscal 2009.

In the same way, no one knows whether the economy will expand or contract over the next few years. No one knows what new legislation Congress might pass in the coming weeks and months. Thus, everyone must continually adjust their projections to account for changing circumstances.

Most of the projections you find in PREPARE are based on the current data available as of early 2014.

Approaching the Point of No Return

IllustrationWe only have a small window of opportunity left before we reach the point of no return.

Let me illustrate what I mean by the point of no return.
Years ago, my family visited Niagara Falls. Like many tourists, we watched the movie at the welcome center about the Niagara River and the famous falls. The movie explained that if you are traveling down the Niagara River toward the falls, you will see a sign that says, “Approaching the Point of No Return.” After you reach a specific point in the river, you will see a sign that reads, “The Point of No Return.” If you go beyond this point, it is certain that you will go over the falls because the force of the river’s current is so powerful that it is impossible to turn around, no matter how hard you try. Beyond the point of no return, gravity and physics overrule good effort, good intentions, and desire. And if you know anything about the Niagara River, you know that going over the falls is some-thing you do not want to happen!

What is the lesson? Take note of early warning signs, because at some point it will be too late.

The data in PREPARE documents we are in the river and headed downstream.

Based on my analysis, I believe the warning signs indicate that we have a small window of opportunity before our nation reaches the point of no return economically. More information becomes available every day, so the timeline can change for better or worse at any time.

Once we reach the point of no return, powerful, negative economic forces such as interest payments on the national debt, growing entitlement spending (Social Security, Medicare, Medicaid), and deficit spending,
will consume such a large portion of federal revenue that it will be mathematically impossible to recover from these mounting negative economic forces—regardless of whatever heroic efforts are tried.

This point is important enough that it bears repeating: Once we reach the point of no return, it will be mathematically impossible to recover.  Please read carefully what I am saying so there is no misunderstanding. I’m not predicting we are going to have a financial crash in 20XX. (Even when you reach the point of no return, you are still in the river for a period of time before you go over the falls.) However, I am saying that the evidence supports the conclusion that if we do not lower spending and stop growing the national debt in the next few years, we will be past the point of no return because it will become impossible to raise enough revenue to pay for our growing obligations.

Your PREP Plan:

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