The steps will occur as follows:
1) Currency War and Devaluation. Already here.
2) Central Banks Buying Gold – Already here.
3) Governments Buying Bullets – Already here.
Stage Two is based on the tax receipts which will be horribly low. Shockingly low for a economy in “Recovery”. The recovery is a lie and the tax receipts will be the FIRST harbinger of doom. 5/2013 – 12/2013
Step One: Tax Receipts come up 500 billion short
Step Two: Sequestration slashes budgets
Step Three: Economy spirals down
Stage Three: 1/2014 – 7/2014
Inflation doubles. The official reported inflation will be 6-8%. The real inflation will be a shocking 16-25%. Food prices will skyrocket, nearly Doubling in the year. The first feelings of panic will set in.
Obamacare will hit this year and in full force, bankrupting the middle class. The newly legal 40 million mexicans will continue to flood the nation and cheat all the welfare programs in massive numbers possibly surpassing 60 million by the end of 2014. The percentage of working adults will drop to less than 50% of the population and the percentage of workers earning more than 60,000 a year will drop to less than 25% of the population.
Banker cheating will get even more outlandish causing another banking cash as derivative calls cannot be met. What then? Another bailout? No instead the secret borrowing window from the fed (at 0.0005%) will be extended to 100s of Billions of dollars per bank. Since they offer 3% a year interest on deposits, each bank will receive 6-10 billion dollars a year in free money which will barely keep up with their gambling loses.