The Coming Collapse

"There is no means of avoiding the final collapse of a boom

brought about by credit expansion. The alternative is only

whether the crisis should come sooner as a result of a

voluntary abandonment of further credit expansion, or

later as a final and total catastrophe of the currency system

involved." —Ludwig Von Mises

This is called a hyper-inflation. It happens every time the government

can no longer function through tax collection and free markets. They

simply print whatever short fall of revenue is needed, and continue to

spend to maintain power and control over the economy. Printing

money out of thin air has the exact same effect in the real economy as

if the bankers stole wealth from depositors or if politicians taxed the

citizens. Real wealth and purchasing power is stolen from we the

people every time the bankers and politicians create debts and money

out of thin air.

Countries that do not print their own currency — like Ireland, Greece and Spain — will suffer massive deflation as the real wealth of those nations is sold off to pay the imaginary debts created by the bankers

and their puppet politicians. Countries that do print their own currency — like the U.S. and Japan — will simply create more and more money out of thin air, bailing out their partners in crime until the point that the currency has no value what-so-ever.

We have reached the tipping point — where the debts have become so

large there is no way out. We will see the very basis of our economy,

the Dollar, fail in the most spectacular fashion. The implications of

this collapse will be the single largest event in human history. The

collapse of the Dollar will upset every aspect of your life. Your job,

your savings, your food, your relationships, your safety. Everything.

The 2008 economic crisis was an Institutional Crisis. Institutions like

Lehman Brothers, AIG, GM, and Freddie Mac reached critical mass.

They became insolvent because of all of their bad debts. These bad

debts were sold all over the world and into every portfolio and

pension in the world. If left unchecked, as debts and promises of the

world were defaulted on, this would have bankrupted the entire world

within days.

So what stopped that crisis? Why can't we just save ourselves again

the next time an economic crisis happens? Remember, the solution in

2008 was for the Central Banks and governments of the world to

absorb all of those toxic debts by creating more debt and money (out

of thin air, remember) and paying off the bad debts at full value. This

was done so as to not cause a waterfall collapse of defaults. We

essentially stole from those that were good with their money to pay

off those that were gambling poorly. This was done through the $700

billion tax-payer bailout and a secretive $16 trillion slush fund the

Federal Reserve created to bail out the rest of the world. This is

socialism for the rich and capitalism for the rest; losses are socialized

and profits are privatized.

But they cannot play the 2008 bailout playbook again because the

highest level of power is now facing the risk the risk of bad debts. It's

not puny billion Dollar institutions at risk any more; now we're

dealing with trillion Dollar economies and markets. In other words,

there is no higher power to absorb the bad debts of the world’s

reserve currency. Economist Robert Triffin pointed out this problem

in the 1960‘s, called Triffin’s Dilemma. It stated that a world reserve

currency must continue to mount debts in order for the economy to

function. The bankers wish they had a global currency in place to

allow the Dollar to default and allow them to continue on, but

thankfully, the rest of the world is waking up to this scheme of debt

and refuses to play along.

For years, when the U.S. was the sole super power, it was our

currency, but it was the rest of the world’s problem. After World War

II, we were the world’s reserve currency and because of that we were

allowed to create as much debt as we wanted. For a while, the world

craved the dollars that were created out of this debt. After Nixon

defaulted on the ‘good as gold’ Dollar we backed the Dollar with the

Petro Dollar standard. This forced the nations of the world to use

Dollars to buy any oil in the world. If they didn't have our Dollars,

nations had to exchange goods for our Dollars or they would not get

oil to run their economy.

Nations that went along with the plan were rewarded with tremendous growth. Most notably was our former enemy Japan. We totally destroyed and even nuked them twice, but after the war we

gave them an offer they could not refuse: in order to buy oil, produce products for our Dollars and we will make you into the second largest economy in the world. Japan grew tremendously by playing along

with this scheme, and by the end of the 1980’s they threatened to overtake the U.S. However, their accumulation of debt reached such speculative excesses that to try to keep from imploding, they've lost

an entire generation to the 20+ years of stagnant growth. Then, we identified China as the next nation that to build up and on which to dump even more Dollars. For if we did not find more external markets for our Dollars, we would have massive inflation here at home; more Dollars chase after fewer goods. So China played

the role of the obedient trading partner. They took massive amounts of investment and technology form Western powers, namely the U.S. They built their country up from poverty stricken, communist farmers

to now the second largest economy in the world. However, China is learning from the Japanese lost generation.

China is leading a group of non-intellectually aligned nations that do

not benefit from this current economic paradigm. This includes

Russia, Brazil, India, Iran, Indonesia, South Africa and many other

nations that make up half of the world’s population and emerging

economies. I call this group the anti-Hegemon since their only uniting

ideology is against the Hegemonic actions of current super power, the

U.S.

The anti-Hegemon nations recognize the mathematical and inevitable end of the Dollar and they're doing everything in their power to prepare for that reality. They know that the Dollar will ultimately collapse and that they are going to need real alliances, real markets, and real technologies to assert their power in the vacuum of the collapse of the U.S.

The anti-Hegemon isn't wasting Dollars or time on blue chip

properties like Pebble Beach or Columbia Pictures, as the Japanese

did. Instead, they are importing massive amounts of gold and silver.

They are dumping the Dollar in bi-lateral trade. They are buying oil

fields and farms. They are creating their own IMF and World Bank.

They are creating business ventures and investing in developing other

nations. In short, they are creating their own reality that does not

include the U.S. Dollar. And much of the rest of the world is

responding positively to them because they are a power that is

offering partnerships rather than bombs.

What does our world look like when the Dollar dies? Individuals will

see just how fragile our existence is. The system offers only a few days

of food and fuel. When the Dollar collapses, we won't have the money

to keep the just-in-time, always-stocked inventory flowing. Panic

buying will set in. People will try to make up for their lack of food

wealth with a Hail Mary last trip to Walmart. Unlike every other

currency collapse in the world, this time no other currency can act as

a support through the crisis.

When the Soviet Union collapsed, the Deutsch Mark and the Dollar

helped bolster the economy when the Ruble became worthless. This

time, the world’s reserve currency itself will collapse and that collapse

will systemically collapse all other currencies and markets. When the

currency fails, all financial, political and social contracts will fail.

Trust will be destroyed at every level. Commerce will grind to a halt and all current valuations will be destroyed.Those people and nations that are most dependent upon the Dollar will suffer the most. Highest on the list will be all urban areas in the world. Cities rely upon the constant influx of capital, power and food.

Without a functioning currency, those cities will be the most dangerous places to be as there will be so many, aggressive people packed into a densely packed area with no means of supporting themselves. After a few hours of the power being cut off, the worst in humanity will be revealed.

This will not be like Hurricane Katrina; it will be much worse. Even though a lot of inhuman acts were committed and things were very bad for those caught in the storm, during that time, there was always

the subtle undertone that someone was coming to save them. People from all over the country donated time and money to help make a difference. The government had unlimited budgets to spend on contracts and reconstruction.

When the Dollar collapses, people in urban areas will see that everything they worked for is gone, and that there is no one coming to save them. This will drive these individuals insane. They will have gone from very high living to instant poverty without any means of supporting themselves. The rich will see their portfolios worthless and that all of the people in their lives were only loyal to the Dollars paid them. The poor will see that there are no more hand-outs and that starvation is a very real possibility. Everyone will see that they have no real skills to produce and real value or wealth in the new paradigm.