“The world as we know it, will in a sudden flash, disappear . . . .”
 
Warning, Unmitigated Catastrophe Waits Ahead,
Capitalism Crippled and Undermined
 
            Merry Christmas and a Happy New Year:   the very best to you and your families!
A crisis is upon us. That is, there are potential problems, even dangers you must choose to either avoid or face and there are potential opportunities which you must either exploit or allow to slip away. If you do nothing, alas, you will definitely face the dangers and miss the opportunities. “What is the nature of the crisis?” you ask. In a phrase:  American civilization is at severe risk as the collapse of our long-time friend and trusted storehouse of value, the American Dollar, is upon us. I’ll begin with a quick word on A. how it happened . . . then provide B. proof a crisis exists . . . C. Give a quick rundown on the likely scenario as the realized problem begins to play out in everyday lives of the common folk . . .  and finally D. some sage advice about protecting yourself and your family.
 
A.     How did it happen?  Up until the 2010 elections we have been dominated for 82 years by a political philosophy known as Progressivism (“We must ‘progress’ beyond the ‘outdated and ill-conceived’ U.S. Constitution if we hope to ‘progress’ toward our earthly (socialist) Utopia.”) The most “progressive” of politicians of the United States for some 65 years now at a minimum have undermined capitalism and the Constitution and destroyed the American Meritocracy that made this nation the hope of the world for over 200 years. They have also considered themselves the only truly important special interest group and have used the resources of the country to ensure their repeated re-election. This ploy has worked because the people have lazily and ignorantly (not aware; not caring to educated themselves about political activities) allowed the politicians uninterrupted benefit from promising us the various free lunches we’ve so craved.  In those 65 years the nation has amassed not only a $14 TRillion debt but more importantly $112 TRillion in unfunded liabilities. One example will suffice: the so-called “Cash for Clunkers” program diverted new car sales forward roughly two and a half months on average but otherwise did NOT affect auto sales. The program was very expensive and the American taxpayer bore the huge burden. Meanwhile, like all government programs we were not advised of the “unintended but easily foreseeable consequences” of this government interference. So many decent and serviceable used cars disappeared just like that, that the price of the average used car following “Cash for Clunkers” rose $1,800 . . . and even now 17 months later, the average used car still costs $1,100 more than it should have been expected to cost. What is the end result? Society is not only poorer by 700,000 used vehicles deliberately destroyed . . . the poorer citizens now face greater expense in the future when purchasing used vehicles. Yet, in comparison to the typical government spending boondoggle, which on a scale of 1-10 probably rates a 1.75 or less, Cash for Clunkers was a roaring success . . . let us call it an 8.0;  for comparison, Obamacare will rate a deeply negative number . . . but enough of that, you’ve got the picture what 65 years of Government Spending Boondoggles amounts to . . . the combined more than $125 TRillion the country’s obligated for is roughly 2.8 times the GDP (gross domestic product) of the entire world . . . .
B.    As if the debt and unfunded liabilities statistics were not enough, in late 2008, the Federal Reserve Bank used the money-printing presses and began to print up 14 times the amount of paper dollars already in circulation making a combined total of 15 times the original amount circulating around the nation. Theoretically, therefore, the June, 2008 dollar was worth 15 times the value of the June, 2009 dollar since the amount of goods and services did not increase. By the law of supply and demand the 2009 dollar was theoretically worth 6 2/3 pennies worth of the 2008 dollar. Recently the Federal reserve has used another method of creating money out of thin air called “quantitative easing” twice in the last five months and will do so once again in February, 2011. The net result of all this new “money-magic” is that the 2011 dollar will be worth (theoretically) the same as 3 ½ cents worth of the 2008 dollar. In any other country on earth this would have meant immediate and crippling inflation . . . . the United States had one huge advantage that up till now allowed the nation to willy-nilly print as many new dollars any time the government wished: the United States has been the preferred world storehouse of value for 65 years (a.k.a. the “world’s reserve currency” was the American dollar) as nations all over the globe including our enemies trafficked in dollars the most consistently-trusted currency among all the 208 nations of the world. Before World War II the world’s reserve currency was the British Pound Sterling which had born that noble role for about two centuries. The Brits after the end of World War II tried to inflate their currency and spend their way out of debt . . . it didn’t work and hundreds of billions of pounds worldwide were sold in a heated rush as nations and individuals stampeded away from the pound to the dollar. This is why the United States didn’t resume the financial problems we’d known prior to World War II . . . we had become the owners of the most preferred money in the world and our economy was buoyed up then and has been wonderfully blessed ever since. Of course the truly in the know people, the wealthy, kept huge amounts of their wealth protected in gold, silver, and collectible like art and numismatic coins and rare stamps; and, of course, property . . . but that’s another story . . . in any case the bottom line today is that the stampede into the dollar that saved our bacon in 1945 and ’46 has reversed directions right now. Currently it’s an orderly retreat by nations like China, Russia, Japan, Turkey and Brazil . . . countries who don’t want to cause a panic by selling too many dollars at once since their reserve funds are so deeply, deeply dedicated to greenbacks . . . someday soon it’ll become a panic as everybody and their poor relations stampedes to trade dollars for anything of value. Nobody with any sense wants to stay in a currency which has multiplied its paper presence 28.5 times in less than 25 months. Yes, some of these foreigners will be badly hurt by the collapse of the dollar and its loss of “world reserve currency” status, but, that’s nothing compared to the problems facing Americans for whom the dollar is our personal friend and trusted storehouse of value. This should become noticeable within 18 months.
C.    Don’t expect things to be pretty . . . when Americans find that overnight their dollar’s buying capacity has been drastically diminished . . . they’re going to be shocked, frightened, angry and very bitter. If the dollar starts a headlong plunge toward its true value (3.5 pennies) absolute panic could very well ensue. The strikes in Greece, Italy, England and France we’ve seen and the coming demonstrations and panic in Spain, Ireland, Italy, Hungary and all the British Isles (the Euro is far preferable to the dollar, but nothing to cheer about) are infinitesmal compared to what we betrayed Americans will feel toward our government. The TEA (Taxed enough already) Party groundswell of protest against the government these last two years has been circumspect, logical and respectful.    When less patriotic people who’ve been buying the government’s promises for the last 65 years suddenly find they’ve been taken by a scam that makes Bernie Madoff look like an inept pickpocket . . . well, you get the idea Expect violence lots of it and a lot of incredible hardships especially for the poor, the elderly and just about everyone excepts crooks and conmen (“speculators” of all classes will be about the only ones enriched by the situation if preventive measures aren’t taken by the government to reverse the direction now in play; or more likely by smart individuals seeking to protect their wealth and families). America, indeed the world, as we know it, will in a sudden flash, disappear . . . .
D.   There are no guarantees, physical danger can be expected to ride along with economic ruin . . . prudence says that big cities will be flashpoints and hunger riots and ceasing of services like electricity and heat all carry enormous power to injure, deprive, and cause suffering.   Utter self-sufficiency (food stored; safe haven; silver or gold or a trusted foreign currency to use as money when stores won’t accept the dollar; weapons present and the will to use them if necessary) is almost impossible . . . but any steps in the right direction are preferable to apathy or worse (joining in the rioting).
 
One step Ol’ Rajjpuut would advise for anyone interested in avoiding problems would be the purchase of a $100 face-value bag of “junk-silver” right now costing roughly $2,350. It’s conceivable that in a severe monetary crisis, merchants may so crave some fundamental storehouse of value that a couple of pre-1964 dimes might provide a person with a day’s nutrition.
A second step would be for someone in your family to learn the art of safe canning; or for your family to accumulate five or six month’s worth of non-perishable groceries or perhaps even more such stores.
A third step would be to let those you know and love in on the probable truth about the upcoming dangers. The more people as a whole who are self-sufficient, the less danger we all face.
 
Here’s hoping we’re 100% wrong.
 
Ya’all live long, strong and ornery,
Rajjpuut
 
 

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