Sunday, December 19, 2010

The Coming Total Collapse of the Dollar


We could lose the dollar overnight.

The American people don’t know this because they don’t understand the mechanics of the modern day monetary system.

The big can of elephant worms in the room is our National Debt.

Ergo Can of Worms #1: Bankruptcy

The US is already on the verge of bankruptcy.

With its $16 trillion dollar debt and annual $1 trillion interest payments in can barely afford, the US is standing on an economic precipice.

The incapacity to pay interest on a debt is a threshold measurement for bankruptcy.

The day America fails to make its trillion dollar interest payment on its debt is the day America is declared bankrupt.

If you look at Greece, then you get a hankering on how bankrupt countries are treated.

Now everything in this world has been turned into speculation (as you might have noticed). 

Money is no exception.

Money is speculated at the International Currency Exchange or ICE. 

Here money and government bonds are bought and sold like you buy and sell stocks on the stock market.

Ergo, the value of your national currency is liable to rocket up or sink downward depending on the speculation that occurs at the ICE.

It is because of this that the value of the dollar (or any currency) can disintegrate overnight.

A massive speculatory move by the powers that be can destroy the value of the dollar within 24 hours.

Remember Mexico in 1994? 


The bottom totally fell out of the Peso and it began losing all its value within a days. 

It was an emergency of such magnitude that the US had to come to the rescue with an immediate $50 Billion bailout set up by President Clinton.

Now if this happens to us, who is going to come to OUR rescue?

The answer is nobody.


In fact, a lot of countries might just cheer as we go down the toilet.

The worse thing is, that the mechanisms that can destroy our dollar are already in place.

Can of worms #2: Dollar Collapse

The Communist Party of the People’s Republic of China is holding $1.13 trillion of our debt.

All it will take is for China to start selling those bonds and dollars to cause and OVERNIGHT collapse of the dollar on the International Currency Exchange (ICE).

If this happens, you might be hearing of the sudden plummet of the dollar as you watch the morning news (or check your morning email), cause it won’t even have time to appear in the newspapers.

This opens can of worms #3: Inflation

We are an import-based nation.

Most of the stuff that we get we import (including all our produce!).

If the dollar starts plummeting in value…

…all those exporters are going to start wanting more and more (constantly depreciating) dollars for their stuff.

At this point, I guess we could print even more dollars on the currency exchange market, but that would be like a drowning man trying to drink his way out of a swimming pool. 


Our debt is already at peak levels, and the results would be temporary if any.

At this point, the cost of every imported item will begin to skyrocket - and that’s just about everything.

Because we import gas, the price of gas will skyrocket.

Because the price of gas is skyrocketing, the price of transporting everything will skyrocket.

Because the price of transporting everything is skyrocketing, the price of EVERYTHING will skyrocket.

Now comes can of worms #4: Stagflation

Our economic situation is unique not just in the world, but in history.

The government is constantly borrowing more and more money, but none of it is making its way to the public.

Why?

Because all of its is going into saving the government and the banks…not us.

It’s all going into Wall Street banks (which have made $trillions disappear in the derivatives market) to keep them solvent. 


And the rest is going to the government to keep it running, service its debt, keep the dollar high, keep our allies friendly, Iraq, Afghanistan, social security, welfare etc.

So what we have a situation where the government has actually borrowed $5 trillion dollars since 2008, with very little if any of it going to the American public.

Incredible but true!

This has led to a situation where the government borrows more and more, while there is less and less money inside the American economy. 


As you might have noticed, prices are going down, not up, because we have no more money, and no more money is being injected into the economy.

This then is the setting for the perfect storm.

Inwardly, there is no more money circulating within the American economy. 


Outwardly, the dollar loses all its value.

Ladies and gentlemen, for the first time in world history, I would like to present to you the hitherto theoretical phenomenon of STAGFLATION!

Stagflation is the condition in which people have less and less money while prices keep going up and up.


This is literally the worse of both economic hells.

Up until know this has been a condition which has only existed in the minds of economic theoreticians. 


But it now seems about to become a plausible reality.

Now, for the first time, it seems like its going to happen right here in America!

This indeed is the worse can of worms: rising prices within a population that has less and less money.

If you can imagine a total economic hell, this is it.

I don’t think a society in a condition of stagflation can stay a society for very long.


At this point, the best thing America could do is:
1) get rid of the dollar
2) default on its debt completely and absolutely
3) shut down the Federal Reserve
4) start printing a new debt-free currency through the Department of the Treasury directly (if possible backed by gold or silver)

This would be what a real America run by real Americans would do.

But what are the chances of it happening under the watch of the internationalist custodians who inhabit the Federal Government?

Didn’t they let the Federal Reserve run our face into the ground in the 1930’s?

Chances are…they will run to the Federal Reserve, the International Monetary Fund and the World Bank for help…while they let us stew in our stagflation for a while.

The solution, of course, won’t involve defaulting on our debt, but exchanging something for it to the international banking order (our public lands, our spheres of influence and trade, our natural resources, perhaps even our rights and sovereignty).

This solution would have more to do with submitting to the New World Order than recovering our economy (remember, many other countries would also have be thrown into chaos by our collapse).

The UN might even be called in to manage some of the riots while the President and a desperate Congress sell the country over to the New World Order.


(End of Article)

Addendum:

I felt a sudden urge to include an addendum here, instead of leaving everyone clueless with a lap of bad news.


What you can do if the stuff hits the fan?

What could you do to prepare?

The only thing I can think of economically is to buy silver (my sources told me gold will confiscated by the government). 


Silver is ‘spendable’, affordable, keeps its value, and historically has never been confiscated.

People also say, accumulate food, water, weapons and ammunition.

The advice I have received on this is to do it, but do it as a community of several people or families you trust, not just one, living in the same location and watching out for each other in the lowest key possible.

The other advice I have gotten (and this is directly against my nature) is hide: hide your wealth, hide your possessions, hide your weapons, if possible, hide your location. 


Don’t tell anyone of your plans or what you have (not even friends or colleagues) who is not a direct member of your ‘survival team.’ The advice I received is that this can be done at the urban or rural level.

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