This article has been contributed by Brandon Smith of Alt Market.
After being immersed in the world of alternative economic analysis for several years, it sometimes becomes easy to forget that most people do not track forex markets, or debt to GDP ratio, or true unemployment, or hunch over IMF white-papers highlighting subsections which expose the trappings of the globalist ideology. Sometimes, you just assume the average person knows what the heck you are talking about. This is, of course, a mistake. However, it is a mistake that is borne from the inadequacy of our age and our culture, and is not necessarily a product of weak character, either of the analyst, or the casual reader.
The great frustration of being actively involved in the Liberty Movement is the fact that many people are rarely on the same page (or even the same book) during political and economic discussion. Where we see the nature of the false left/right paradigm, they see “free democracy”. Where we see a tidal wave of destructive debt, they see a “responsible government” printing and spending in order to protect our “best interests”. Where we see totalitarianism, they see “safety”. Where we see dollar devaluation, they see dollar strength and longevity. Ultimately, because the average unaware citizen is stricken by the disease of normalcy bias and living within the doldrums of a statistical fantasy world, they simply have no point of reference by which to grasp the truth when exposed to it. It’s like trying to explain the concept of ‘color’ to a man who has been blind since birth.
Americans in particular are prone to reactionary dismissal when exposed to facts that disrupt their misconceptions. Our culture has experienced a particularly prosperous age, not necessarily free from all trouble, but generally spared from widespread mass tragedy for a generous length of time. This tends to breed within societies an overt and unreasonable expectation of ease. It generates apathy, and laziness. A crushing blubberous slothful cynicism subservient to the establishment and the status quo. Even the most striking of truths struggle to penetrate this smoky forcefield of duplicitous funk.
In recent articles, I have outlined the very immediate dangers of several potential economic events that are likely to take place this year, including the exit of peripheral countries from the European Union, the conflict between austerity and socialist spending in France and Germany, the developing bilateral trade agreements between China and numerous other countries which cut out their reliance on the U.S. dollar, and the likelihood that the Federal Reserve will announce QE3 before the end of 2012. All of these elements are leading in one very particular direction: the end of the Greenback as the world reserve currency.
In response to these assertions I have received letters from some people (some of them indignant) questioning how it would be even remotely possible that the dollar could be replaced at all. The concept is so outside their narrow world view that many cannot fathom it.
To be sure, the question is a viable one. How could the dollar be unseated? That said, a few hours of light research would easily produce the answer, but this tends to be too much work for the fly-by-night financial skeptic. Sometimes, the job of the alternative analyst is to make the obvious even more obvious.
So, let’s begin…
The Dollar A Safe Haven?
This ongoing lunacy is based on multiple biases. For some, the dollar represents America, and a collapse of the currency would suggest a failure of the republic, and thus, a failure by them as individual Americans who live vicariously through the exploits of their government. By extension, it becomes “patriotic” to defend the dollar’s honor and deny any information that might suggest it is on a downward spiral.
Others see how the investment world clings to the dollar as a kind of panic room; a protected place where one’s saving will be insulated from crisis. However, just because a majority of day trading investors are gullible enough to overlook the Greenback’s pitfalls does not mean those dangerous weaknesses disappear.
There is only one factor that shields the dollar from implosion, and that is its position as the world reserve currency. Without this exalted status, the currency’s value vanishes. Backed by nothing but massive and unpayable debt, it sits frighteningly idle, like a time bomb, waiting for the moment of ignition.
The horrifying nature of the dollar is that it is only valuable so long as foreign investors believe that we will pay back the considerable debts that we (the American taxpayer at the behest of our criminally run Treasury) owe, and that we will not hyperinflate in the process. If they EVER begin to see their purchases of dollars and treasuries as a gamble instead of an investment, the façade falls away. Yet again this year Congress and the Executive Branch are “at odds” over the expansion of the debt ceiling, which has been raised to levels beyond the 100% of GDP mark:
Barack Obama has made claims that increases in the debt ceiling are “normal”, and that most presidents are prone to hiking the barrier every once in a while. Yet, back in 2006, when George W. Bush increased debt limits, Obama had this to say:
“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills…Instead of reducing the deficit, as some people claimed, the fiscal policies of this administration and its allies in Congress will add more than $600 million in debt for each of the next five years…Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”
For once, Barack and I agree on something. Too bad the man changes his rhetoric whenever it’s to his advantage.
Today, Obama now asserts that raising the debt ceiling is not an opening for more government spending, but an allowance for the government to pay bills it has already accrued. This is disingenuous and hypocritical prattle. Obama is well aware as are many in Congress that as long as the Federal Government is able to raise the debt ceiling whenever it suits them, they can increase spending with wild abandon. It’s like handing someone a credit card with no maximum limit. For most men, the temptation would be irresistible. Therefore, one can predict with 100% certainty that U.S. spending will never truly be reduced, and that our national debt will mount in tandem until we self destruct.
How has this trend been able to continue for so long? Our private central bank has created the fiat machine by which all economic depravity is possible. Currently, the Federal Reserve is the number one holder of U.S. debt. The Federal Reserve creates its own capital. It prints its wealth from thin air. The dollar, thus, has become its own lynchpin. The secretive institution which has never been subject to a full audit is now monetizing endless debt mechanisms with paper promises. What value would any intelligent investor put on such a fraudulent economic system?
The epic dysfunction of the dollar is rooted in its reliance on perception rather than tangible wealth or strong fundamentals. It is, indeed, like any other fiat unit, with all the inevitable pitfalls built into its structure.
Ironically, the value of the Dollar Index is measured not by its intrinsic buying power, or its historical buying power, but its arbitrary buying power in comparison with other collapsing fiat currencies.
The argument I hear most often when pointing out the calamitous path of the dollar is that it is the go-to safe haven in response to the crisis in Europe. What the financially inept don’t seem to grasp is that the shifting of savings back and forth between the euro and the dollar is just as irrelevant to our currency’s survival as it is to Europe’s. BOTH currencies are in decline, and this is evident by the growing inflationary pressures on both sides of the Atlantic. Ask any consumer in Greece, Spain, France, or the UK how shelf prices have changed in the past four years, and they will say the exact same thing as any consumer in the U.S.; costs have gone way up. Therefore, it makes sense to compare the dollar’s value not to the euro, or to the Yen, but something more practical, like the dollar of the past….
In 1972, just as Nixon was removing the dollar from the last vestiges of the gold standard, a new car cost an average of $4500. A home cost around $40,000. A gallon of gas was .36 cents. A loaf of bread was .25 cents. A visit to the doctor’s office was $25. Wages were certainly lower, but they kept much better pace with the prices of the era. Today, the gap between wages and inflation is insurmountable. The average family is unable to keep up with the flashflood of rising prices.
According to the historic buying power of the dollar, the currency is a poor safe haven investment. With the advent of bailout efforts and debt monetization through quantitative easing, its devaluation has been expedited dramatically. The Fed has left the door open for what I believe will be a final destructive round of publicly announced QE, weakening the dollar to near death:
The question then arises; why do foreign countries continue to buy in on the greenback?
The Dollar Dump Has Already Begun
One of my favorite arguments by those defending the dollar is the assertion that no foreign country would dare to dump the currency because they are all too dependent on U.S. trade. To answer the question above, the reality is that foreign countries ARE already calmly and quietly dumping the dollar as a global trade instrument.
To those people who consistently claim that the dollar will never be dropped, my response is, it already has been dropped! China, in tandem with other BRIC nations, has been covertly removing the greenback as the primary trade unit through bilateral deals since 2010. First with Russia, and now with the whole of the ASEAN trading bloc and numerous other markets, including Japan. China in particular has been preparing for this eventuality since 2005, when they introduced the first Yuan denominated bonds. The bonds were considered a strange novelty back then, especially because China had so much surplus savings that it seemed outlandish for them to take on treasury debt. Today, the move makes a whole lot more sense. China and the BRIC nations today openly call for a worldwide shift away from the dollar:
With the global proliferation of the Yuan, and the conversion of the Chinese economy away from dependence on exports (especially to the West) towards a more consumer based system, the Chinese have effectively decoupled from their reliance on U.S. markets. Would a collapse in the U.S. hurt China’s economy? Yes. Would they still survive? Oh yes. Far better than America would, at least…
In 2008, I warned of this development and was attacked on all sides by more mainstream economists and Keynesian proponents who stated that such a development was impossible. Today, it’s common knowledge that our primary creditors are “diversifying” away from the dollar, though MSM talking heads and those who parrot them still claim that this is not a threat to our economy.
To be clear, the true threat to the dollar’s supremacy is not only due to the constant printing by the private Federal Reserve (though that is a nightmare in the making), but the loss of faith in our currency as a whole. The Fed does not need to throw dollars from helicopters to annihilate our currency; all they have to do is create doubt in its viability.
The bottom line? A dollar collapse is not “theory” but undeniable fact in motion at this moment, driven by concrete actions on the part of the very nations that have until recently propped up our debt obligations. It is only a matter of time before the dollar diminishes and fades away. All signs point to a loss of reserve status in the near term.
What Will Replace The Dollar?
My next favorite argument in defense of the Greenback is the assertion that there is “no currency in a position to take the dollar’s place if it falls”. First of all, this is based on a very naïve assumption that the dollar will not fall unless there is another currency to replace it. I’m not sure who made that rule up, but the dollar is perfectly able to be flushed without a replacement in the wings. Economic collapse does not follow logical guidelines or the personal pet peeves of random man-child economists.
Though, to be fair, and to educate those unaware, there IS a replacement already conveniently ready to roll forward. The IMF has for a couple of years now openly called for the retirement of the dollar as the world reserve currency, to be supplanted by the elitist organization’s very own “Special Drawing Rights” (SDR’s):
The SDR is a paper mechanism created in the early 1970’s to replace gold as the primary means of international trade between foreign governments. Today, it has morphed into a basket of currencies which is recognized by almost every country in the world and is in a prime position to take the dollar’s place in the event that it loses reserve status. This is not theory. This is cold hard reality. For those who claim that the SDR is not considered a “real currency”, they should probably warn the U.S. Post Office, which now uses conversion tables that denominate costs in SDR’s:
So, now that we know a replacement for the dollar is ready to go, the next obvious question would be:
Why would global elites destroy a useful monetary tool like the dollar? Why kill the goose that “lays the golden eggs”?
People who ask this question are simply unable to see outside the fiscal box they have been placed in. For global bankers, a paper currency is not important. It is expendable. Like a layer of snake skin; as the snake grows, it sheds the old and dawns the new.
At bottom, men who promote the philosophies of globalization greatly desire the exaltation of a global currency. The dollar, though a creation of a central bank, is still a semi-sovereign monetary unit. It is an element that is getting in the way of the application of the global currency dynamic. I find it rather convenient (at least for those who subscribe too globalism) that the dollar is now in the midst of a perfect storm of decline just as the IMF is ready to introduce its latest fiat concoction in the form of the SDR. I find the blind faith in the dollar’s lifespan to be rife with delusion. It is not a matter of opinion or desire, but a matter of fact that currencies in such tenuous positions fall, and are in the end replaced. I believe that the evidence shows that this is not random chance, but a deliberate process, leading towards the globalist ideal; total centralization of the world under an unaccountable governing body which operates a global monetary system utterly devoid of transparency and responsibility.
The dollar was a median step towards a newer and more corrupt ideal. Its time is nearly over. This is open, it is admitted, and it is being activated as you read this. The speed at which this disaster occurs is really dependent on the speed at which our government along with our central bank decides to expedite doubt. Doubt in a currency is a furious omen, costing not just investors, but an entire society. America is at the very edge of such a moment. The naysayers can scratch and bark all they like, but the financial life of a country serves no person’s emphatic hope. It burns like a fire. Left unwatched and unchecked, it grows uncontrollable and wild, until finally, there is nothing left to fuel its hunger, and it finally chokes in a haze of confusion and dread…
You can contact Brandon Smith at: [email protected]
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Alll one has to do is read the bible…it tells you that we will ALL have a one world currency in the end times…and I very much doubt it will be the dollar…since so many countries are already dumping the dollar as I write!
Agreed. Many of the prophesies in the Bible were technologically impossible until recently which indicated we are close to the end of days.
I also believe Revelation 6:6 speaks of hyperinflation. I have been slowly converting all my assets into ABCD (Anything Bernanke Cannot Destroy) so have only $55 in my checking account and a few thousand in twenties.
Bernanke can and will destroy your twentys with hyperinflation which results from an oversuppy of newly printed dollars. The only asset that can protect you is gold and silver or other real assets which have no counter party risk. The price of real assets rise during hyperinflation as the value of the fiat currency decreases dramatically. Just trying to help you preserve your buying power.
If I know the Pastor, Mark, and I do from his many comments here, those twenties are not his store of wealth but merely some convenient paper that will be useful as long as both they and the US dollar last. It is clear to me that he has long since converted the majority of his fiat into things of real worth.
@ Prepared Pastor. Yes it will be hyperinflation. I forget where maybe Revolation it says “a days wages for a loaf of bread” ( I beleive King james states a pound of grain) It will be hyperinflation, then the good old micro ship in either the hand or forehead AKA mark of the beast, as no one will be able to buy or sell without this mark. My preps are in accordance with what God says to be ready for. I am hoping for the rapture to take place but I know that is a debatable subject. I hope it is true as I am ready to be beamed up as there is no intelligent life here LOL 🙂 We see the wars and rumors of wars, speaks of hyperinflation, disease and famine. We are almost at the tipping point. I pray we have a lil more time.
The problem with a microchip implant being the mark of the beast is that the Bible clearly states that it will be a physically identifiable mark, a seal if you will. Thus, it might be possible that the coming chip implant is not the actual mark of allegiance to the beast. However, it is not something I would bet my eternal soul on either.
As to the implant itself, the Obamacare bill seems to call for it’s mandatory implementation by 2016. If you are interested, Google it and see what you think for yourself. It is not exactly clear what it is talking about but supposedly reading between the lines shows it to be a mandatory chip implant.
I think the ABCD technique will become more popular with each apssing day. This technique is best used to buy any tangibles that one needs to get by on. many examples come to mind.
I am personally very curious as to how long it will take Americans to get on the bank run bus. it has to be coming. whatever happens “over there” , is going to happen here. why do you think we don’t see much MSM covergae of the lines outside the European banks?
I love the ABCD analogy!
I believe there is a portion of Obama’s health care bill that puts this into motion. It allows the government to start a national registry of all American citizens. The RFID chip is there preferred method.
I will try to find a link to post.
Brandon: You said, “There is only one factor that shields the dollar from implosion, and that is its position as the world reserve currency.”
That’s fear mongering. What economic basis do you use to support that statement? I expect better than that from you. While there are economic problems, there is NO “implosion” eminent on the horizon and nothing to justify that statement.
If the dollar doesn’t decline in value pretty soon against other currencies and the status quo continues, then WE are toast, as the conditions which plague the nation will continue as is.
And again you said, “Without this exalted status, the currency’s value vanishes. Backed by nothing but massive and unpayable debt, it sits frighteningly idle, like a time bomb, waiting for the moment of ignition.”
Again hyperbole. Nothing that you have written supports this conclusion, at all.
There is no currency in the world backed by anything other than the “full faith and credit” of the nation which has issued the fiat; its political stability, and its military might. That includes SDR’s.
Why single out the dollar for failure? What bias do you have? Do you accept the idea of financial collapse so intimately that you refuse to put economics in perspective? Do you have an Alt Media bias?
The fact remains, the dollar IS the world reserve currency. Historically, the percentage of world trade conducted in the dollar has ranged between 55% and 65% of all trade. It still does.
The question is “Why is the dollar the world’s reserve currency if the economic fundamentals for the dollar are so poor?” You need to answer that question, if only for yourself.
I would suggest that the dollar is the world’s reserve currency precisely because WE have the largest and most diversified economy in the world.
This is what makes OUR currency fungible; so many nations find it convenient to trade with US and with each other in dollars. OUR debt is manageable even if it is enormous.
Why? Because OUR economy is enormous too. China is a distant second. Germany even farther behind.
OUR military is second to none so WE can protect world commerce from external threats.
Even with the transfer of gold for oil, or oil for wheat, or other transactions that you have mentioned or alluded to between some individual nations, the percentage of world trade conducted in dollars is still within that 55-65% range.
China or Germany, the most stable economies with the smallest Debt to GDP ratios have a ratio around 85-90%. The US has a D/GDP ratio of about 100%. That is not untenable. The UK has been moving along with a 200% D/GDP ratio. Others are much worse. Only Greece which was over 400% when their crisis started, has succumbed so far.
Why hasn’t the pound “imploded”?
Its not the world reserve currency. The UK has a small economy compared to US, and its military, though able to dominate Argentina, is a shadow of its once great power.
China is redirecting its economy inward to facilitate consumerism by its population. This will reverse the flow of exports as China becomes an importer of more goods and services.
As this transition occurs and it deploys its current surpluses into infrastructure its D/GDP ratio will rise.
That is the cycle.
The dollar and euro will fall against the Yuan and it will be cheaper to manufacture in the US and Europe than China.
In a room full of midgets, even a dwarf can be king.
Conch shells anyone?
Durango Kid. If you believe the dollar is the world reserve currency, fine. But ask European leaders who are calling for its replacement.They’re calling the “shots.” As for your statement, the the U.S. military is second to none.Think again! The US is not geared for a one and a half war: a major war, plus a sideline like Korea. We don’t have the divisions, ships, or aircraft and, above all, manpower. We have our assets already committed to Korea, Afghanistan, and Iraq. We no longer have a draft and the active component is smaller than it was in numbers and equipment. WE simply do not have the assets to deal with anything else. History is repeating itself, as what happened to the military/economic might of Rome,France, and Great Britain. We had our ascendency after WW 2, but we are in a period of decline. Make no assumptions as to our present capabilities. As was said once “those who chose to ignore the mistakes of history are doomed to repeat them.”
It’s not quantity it’s quality. The US owns the sky and hence a few soldiers with air power overhead have the firepower of a division. A B-2 can bomb anywhere in the world regardless of defenses with impunity. An F-15 (which is being replaced) has never been shot down in air to air combat. Actually I don’t think an F-15 has been lost by any hostile action and the F-22 is light years ahead of it. An M1 tank has never been lost in tank to tank warfare and they faced plenty of Soviet tanks. The US has 10 fleet carriers and can put air power anywhere on the globe.
Snipers, IEDs and the like negate a majority of US advantages but a conventional military could not move and deploy forces and resupply said forces with the US overhead.
The US gets something for spending more on the military then the rest of the world combined.
Old Soldier: European leaders haven’t called a single “shot” since WWII, or are you too old to remember? 🙂 The USA has been calling the “shots” since D-Day in Europe.
The facts are in. The FRN IS the world reserve currency. That is not my designation, that is commonly accepted knowledge by everyone. So while the IMF may be calling for another currency (standard) to enhance ITS power, the IMF is irrelevant. It has no money of its own and no mechanism to create any. What money it redistributes it gets from other nations.
The IMF is a paper tiger. Forgive the pun.
Those who have the gold rule. That’s US and that has been the case since all of the gold plundered by Japan and Germany fell into US hands.
Possession is nine tenths of the law.
I got to say I think your’re dillusional if you think the US dollar will hold the status of reserve curency much longer. If losing it with each passing day. examples:
1. The BRIC nations recently made a trade agreement to trade among themselves in their own currencies, bypassing the US dollar all together.
2. India and iran made trade aggreements to exchange trade goods and use their own currencies, and some gold.
3.saudi arabia agreed to build the world’s largest refinery in China, and NOT use the US dollar for the exchange of oil.
4. Over 10 nations, recently banned from using the SWIFT banking system made trade aggreements to use their own basket of currencies to make deals among themselves, thumbing their collective noses at the US dollar’s reserve status.
Also, with the recent announcement by JP Morgan, of larger than expected loses in their foreign office , from derivatives loses, the genie is out of the bottle.
I could go on, but you get the picture. You want facts, those are facts, NOT specualtion.
The US dollar is a dead man walking. For all practical purposes, the reserve stauts is over. Americans are the only ones pretending that it still has that stauus. This economic fact takes time to filter through the economic world, but it’s coming soon to a neighborhood near you. get ready for it.
Look soon for QE-3, and then a rise in interest rates by the end of the year, as the rest of the world dumps their useless reserve status dollars on the open market.
It’s over folks, plain and simple.
This discussion sounds a little abstract until you think about how much longer folks over the world (Americans and non-Americans) will tolerate the further and rapid devaluation of the dollar.
Since commodities such as food, oil, metals, etc. are mostly still traded in dollars, as the dollar sinks in value as a result of printing more of it, the commodities keep rising in price at a much higher rate than average people’s income.
At a certain point people cannot make ends meet; they lose their homes, their kids are going hungry, families are dissolving, etc.
Drastic deterioration of people’s economic conditions has been the main reason behind every revolution including the recent Arab Spring uprisings.
If the present US-dollar-based world monetary system cannot prevent these revolts to happen, then it will collapse.
You can love the dollar or hate it; it won’t make the slightest difference.
If you need $20 to buy a loaf of bread and have to pay $10 for a gallon of gas (that’s if you still can afford owning a car) then the dollar becomes useless monopoly paper money unless your income keep increasing at the same pace at the prices of vital goods.
You don’t need to be an economist or know much about economic theories to realize that at the rate the world currencies are being produced, a hyperinflation in basic goods can be expected that will affect everyone rich and poor.
What will replace the dollar? Who knows! Before we find that out, the world will experience some real chaotic period of time. I doubt the replacement process will be an orderly and peaceful one. Already, some believe that the root cause of the Iraq and Afghanistan wars was to defend the dollar status as a world reserve currency. They remind us that Saddam and Khadafy had decided to sell oil for Euros.
Most likely before anything replaces the dollar, every country or region in the world will find its own temporary solution(s) until the world can agree on or forced into adopting a new world monetary system – from chaos springs order.
That might take decades after a collapse of the dollar and the loss of its status as a world reserve currency.
Buy gold and silver just in case! Then buy tangibles, real stuff whose value would increase with inflation (multi-nationals and real estate come to mind).
Before all that happens, the world will go through some bumpy times; the population in industrialized Western countries will be further impoverished while the one in developing countries will continue improving its economic conditions.
Let’s hope all the changes will happen without leading to WWIII!
Greaseman: I am not delusional. I’m realistic. I am not suggesting that changes are not in store for all of US, eventually, but not anytime soon, as the many prophets of doom in Alt Media suggest.
Financial collapse has been coming for years according to those who want to sell you their latest newsletter on how YOU can escape the carnage if you will just subscribe to their latest issue or buy their latest DVD (and at a steep discount). LMFAO! 🙂
There are wars to be fought, nations to destroy, and phony crony capitalism to spread. This will take time. Years. The dollar is the weapon of choice.
WE are years away from any drastic change, and that change may not even be predicated upon the events looming on the horizon now.
Those that can should buy RmB as it will bounce. Preppers should collect the hard copy information that will be useful, and develop the skills they will need when collapse does come.
Any financial collapse would have to be deliberate; and that would be akin to the GB’s shooting themselves in the foot because the vast, vast, vast amount of their wealth is in the form of paper.
It is not the likely outcome of current economic conditions as presented by this article.
Invest in gold, speculate in silver, and hoard your lead. They won’t be making anymore of it after the Changes.
Brandon: You said, “It is only a matter of time before the dollar diminishes and fades away. All signs point to a loss of reserve status in the near term.”
What is “near term” with respect to your view of the loss of reserve status of the dollar?
Keep an eye on the word derivatives, we’re going to start seeing it more and more! There are up to 250 quadrillion out there, who’s going to pay that debt and how?
Prepared Soccer Mom, you are one smart gal! And yes, indeed, the returns on food/commodities far outweight the speculatives on equities. Keep savings liquid, jingle the metals, and stack it high!
PSM: Derivatives though MASSIVE in scale,are just a SMALL percentage of the underlying loans in existence which are supported by real assets: IE real estate, commodities, and equities.
It would take an EMP, Pole Shift, nuclear war, or other act of God to destroy the intrinsic value of these assets. Not saying that those things aren’t going to happen. On the contrary I believe they will.
Until then engage.
are you totally insane? The collective total of the outstanding derivatives exposure is many times more than the combined GDP’s of the entire worlds’ economies combined. That’s a fact, not opinion. These greedy psycopaths have leverged every cent of assets millions of times over. They have played all their cards, and now, their game is done. We will all get to see the collapse coming soon enough. Just watch the European countries fall, one by one, then, it’s our turn. What happens over there, willl happen here. Whose tax dollars do you think they bailed them out with in the first round of bailouts? Your friendly local “to big to fail”. get real dude.
Greaseman: No I am not insane, but you are poorly informed, and that surprises me because I have always perceived you as knowledgeable. You are comparing apples to oranges. Follow me my friend, its not difficult:
Yes you are right that the COLLECTIVE total of derivatives far exceeds the combined GDP’s of the entire world’s economies, but that GDP is the measured product of just ONE year. That Global GDP number includes the loans and derivatives that were made in any given year.
Derivatives are first a small fraction of the outstanding loans made by the banks in a given year. These loans (like MBS) can be made for five, ten, twenty, or thirty years, bundled and tranched and then sold to investors with a specific appetite for a given credit quality and investment time frame.
So the total number for derivatives that you identified can span MANY years and represents the accumulated gross number of derivatives in existence.
Since derivatives are basically a credit enhancement, and a small percentage of a given loan, it begins to tell you the size and scope of the gross underlying assets.
Granted, I am not current on the state of the art of the derivatives market which may have morphed into more of a currency play through the buying and selling (trading) of derivatives on its own market; but since US banks hold 96% of their own derivatives between themselves, it only means that instead of having the risk of maybe an 80% LTV the LTV risk may be more like 95 to 100%.
The loans upon which derivatives are made are supported by loans and borrowers which should have been vetted under proper underwriting guidelines.
The underlying aggregate loans outstanding would dwarf the total derivatives themselves, and the Global GDP because, again, Global GDP represents only one year of activity.
Got the big picture now?
That is true. Its starting.
Do you have a source for that 250 quadrillion figure? Just curious. Most sources I’ve read say that the derivatives market is about 1 quadrillion… and yes, that is still a s***load of money!
done deal. everything going according to plan.
Their plans should scare everyone…
The Federal Reserve openly admits plans to crush the dollar
Federal judge: Terror law violates 1st Amendment
By LARRY NEUMEISTER | Associated Press – 1 hr 36 mins ago.
U.S. District Judge Katherine Forrest in Manhattan said in a written ruling that a single page of the law has a “chilling impact on First Amendment rights.” She cited testimony by journalists that they feared their association with certain individuals overseas could result in their arrest because a provision of the law subjects to indefinite detention anyone who “substantially” or “directly” provides “support” to forces such as al-Qaida or the Taliban. She said the wording was too vague and encouraged Congress to change it.
Russia discovers Japan’s intentions to evacuate Tokyo
link to follow
Thanks for the info, Daisy! Unbelievable that this is being kept from us…
and im sure there is more, they wont comment on.
even small town USA is keeping some news stories out of print, in an effort to keep people in the dark , on small things as robberies, gas station holdups, and police chases that end up in death..etc..
keep the masses from knowing the S. is hitting the F.
another story being kept from us is deaths of thousands of dolpins washed up on shore..one story from south america says they know its from the oil and chemicals that tainted the waters after BP’s oil rig blow out
saw it on SA’s news ..but not here ..and we wont
Run a search for “Plume-gate Natural News” – there’s more info there. Some US govt documents were accidentally released that prove how much the government knows that they are not sharing with us.
You people are too funny. So how did you enjoy the trip on the alien space ship?
Sorry John W.
I decided not to get on the alien space ship because I didn’t want to visit YOUR planet.
I know you MUST be on another planet to be so ignorant of something so important.
There are Sheople and there are Black Sheople. All the sheople believe that all the people who are awake are black sheople (along with the true, black sheople).
Brandon is not a Black Sheople. I’ve been reading his stuff constantly for about 4 years. I’ve conversed with him online, person to person. He is one of the most learned, grounded and pragmatic people you’d ever meet. He is rather young but is extremely wise.
His articles are widely read and highly regarded in areas that you would not expect. He is the co-creator of NeitherCorp (now dormant) and Alt-Market.com
Ignore his information at your own peril.
Daisy. This arguement between Russia and Japan over these islands have been going on since the end of WWII. Looks like Japan is bring up another reason to re-occupy. These islands are actually closer to the nuke fallout than Tokyo. Seems the article has been designed with a little SCARE THE PREPPER in mind.
@VRF… that’s known as “Mushroom Management”… feed’em BS and keep’em in the dark. 😉
Hey Daisy, love your website, I am a regular visitor to it. For what it’s worth, I read that same article at Waht Does It Mean.com http://www.whatdoesitmean.com/index1572.htm I often wonder how much of their stuff to believe. Yesterday I read a pretty good article on their site about that FBI agent who is running around in California feeling suicidal. Like I say, just don’t know wether to believe some of it. Anyways, love your site, keep the articles coming. The other day I saw a headline about Obama adopting UN Codex Alimentarius, after I read your aricle about it. Good job.
Thanks, Still. 🙂
Sooo….At some future point in time, all our dollars will be converted to SDR’s, using whatever conversion rate table is in use at the time. DK: what is your take on the article? Any thoughts on a timeline of implementation?
We’re talking months and not years.
Easy Peter Parker,
DK, needs to find a phone booth to change in…
I look forward to his take as well, no doubt this is up his ally.
I’ve said it before, I’ll say it again, the day I see DK, drop his shit and start running…
I will be right behind him.
Slick: Hi guys! I just started reading the article. I am a big fan of Brandon but see many gaps in his reasoning and I had just started reviewing it when my ears started burning and and saw your post out of the corner of my eye. 🙂
I’ll try to respond to the article later tonight, I haven’t been to LA Fitness yet today because I had to charge my AC with freon.
It s getting hot in Phoenix time to head for Durango!
Forget fiat – commodities in hand are the only way to go!
USD is strengthening, while commodities are falling, so it may be a good idea to dollar cost average your purchase of those commodities you plan to hold. If this trend holds, come Fall, the retail price for processed food should fall somewhat.
Actually the bible doesn’t say we will have a one world currency. It says that people won’t be able to buy or sell without accepting the Mark. Revelation ch 13. Then it goes on to describe the mark – that it will be associated with a number – the number of a man – and where that mark will be placed – on your forhead or hand.
It doesn’t teach of a single currency – but infers a central world government. From the book of Daniel we understand that there will be 10 kingdoms (who have not yet recieved their authority) and that 3 of them surrender their authority to the Anti-Christ. Who will be master over this system of marking peoples (all peoples). The Bible CLEARLY explains that anyone who takes this mark will be eternally doomed to Hell… Because the mark is actually “swearing” allegiance to the anti-Christ.
I don’t think the mark will be forced upon people until the very end – rather it will be introduced and offered as a means of convenience. Corporately it will be introduced as a way to save money and be more efficient – so all the merchants will adopt it so that they can stay in business. Much like bar coded products & RFID have completely over taken almost all transactions already. People will want it first – then life will get hard for the resistors – they will be persecuted – labeled as terrorists and ultimately be forces to accept the mark or be killed.
There is a lot that the bible clearly teaches about this – but there is a lot that is not mentioned. I believe God has mercifully given us the really important information. I personnally beleive it – because it would be IMPOSSIBLE for Daniel or John or any of the other prophets or apostles to have known this stuff 2000 years (or more) ago – and have it actually be happening today – if GOD had not revealed it to them.
Little known fact back in Daniel’s time. Anyone who prophesied had to be 100% correct or they were killed. Every prophet in the old testament is there because the things they prophesied when they were alive, all came true. Who else but GOD could give them that ability.
As for the mark being a sign of swearing allegiance, that may be true, but It will have to be obvious (at least to the believer). I don’t think you could lose your salvation because you were ‘tricked’ in to it. It would have to be a conscious decision just like when you accept Jesus Christ as Lord and Savior.
What could happen is that things are so bad and the only way you can buy food is if you have the mark and the only way you can get the mark is to publicly denounce your faith. Just as in baptism when you publicly announce your faith.
Please do not include me in your “we” as in we understand. I have been deprogramed so leave me out of it.
Thats ok Eh, you don’t have to believe in Hell to go there.
They can put a bar code on my forehead at the same time as they put a tag on my toe!
I love this site, but sometimes you guys are not rational.
The US dollar will be the worlds reserve currency long after the youngest reader here has grownm old and died.
Did you see the article that said Greece may use US dollars ? Because the US dollar is the best currency and will be.
You guys are right here that even conservative finance guys(like me) are not estimating the pain that the US will go thru to become a stable, growing economy again. The debt the US has now is unsustainable and the big banks have more issues in derivatives than the world can handle; but the US will still be on top when this debt deleveraging era is over.
you guys should read mainias, panics and crashes. The world has gone thru deleveraging periods like this before for 100’s of years and the world didnt fall apart forever; uit came back and will again with the US on top.
Only question is will it take 5 years or 20.
Lee, what is your informed opinion on gold/silver as we go through the weeds on the way back to strength? I notice that an acre of farmland in my area is right now equal to 2 oz of gold. That was exactly the ratio 38 years ago when we bought this land. However, taxes, fuel, food, insurance have all risen over 100% in that period.
If you can buy an acre of productive farm land for less than two grand you better buy all you can. Let me know where you are and I will buy some.
Two ounces of gold is $3,140, at today’s (Thursday) close.
The land next to me just sold: 25 acres for 78k. Unimproved. 1/2 is floodplain and has been farmland forever. Has a creek that is not year round. Across highway from a good trout stream. The remainder could be pasture, but has a natural gas pipeline running through it, limiting building a structure within 40′ either side of it. The buyer will have to put in a drive from the road (hilly country)and run the electric from the road.
We paid $256/acre in 1974. Gold then was around $170, so the land was less the price of 2 oz of gold, which made it a bargain.
Where did you get under $2k?
My opsec precludes telling my location, except it is rural Northern Tier, East of the Mississippi. Area produces corn, beans, hogs, cattle, dairy. Wooded with good water supply. Good hunting and fishing. Manufacturing jobs available.
leeh I don’t know if it will be “that long” but I think your general assertion is correct. I disagree with the author because he disregards the powers that be who have their wealth secured by the dollar.
Ludlow (sp) said it last night on his show; we have a deflationary problem growing not an inflationary one – right now. That isn’t good for a nation trillions in debt so QEIII is assured if you ask me; plus Obummer needs it to bolster markets and wealth before his re coronation party.
The dollar will fall; all currencies fall, but the idea this one is about too – sorry the signs are not there. The author failed to note several nations are buying up dollars right now. Last year they were buying up Gold this year they are buying up the dollar.
I dont think tptb care so much about the usd staying strong as they do about the power they can grab during an economic collapse.
RP the powers that be will care about the power sure, but they will care about their assets more. So long as their assets are in dollars they will prop it up – even through a propagandized media if necessary. I looked for evidence of China, Russia or any other nation dumping dollars today for about 20 minutes online – can anyone show me such evidence? I can’t find it.
Trouble is every time there is a deleveraging period as you call it, ordinary men’s lives are scarificed en masse.
The aim of prepping is to survive the coming crisis so that you are one of the group that rebuilds after it has past.
My Gran used to tell me “wishing doesn’t make it so”.
The ptb have never worshipped money in it’s fiat form – they leave that to the phlebs and celebs. Instead they manipulate it in order to obtain what they really crave power – which always corrupts.
The ptb have been aquiring farmland, gold, mines, factories etc on a global scale since this whole crisis emerged. Certain strategic areas of the globe such as Africa and the area around the Med are currently being carved up like a giant game of chess as the key players at the top of the global banking cabal jostle for ultimate control of the global plantation.
Ordinary people are losing their homes, businesses, lands and livehoods to the corptocracy and their assets are being swept up in a giant net to be harvested by the ptb.
The global banking cabal owe NO allegiance in the final anaylsis to any particular nation or cultural set of values bar those that either suit or can be twisted to suit their own purposes.
Historically people after people have been oppressed, genocided, starved or thrown to the wolves whenever it has suited the purpose of the ptb in their never ending quest for yet more power. We are confronting the true face of evil.
No lie is too big, no propaganda too brazen,no human life too valuable. The criminal banking cabal meet the definition of a true parasite, eventually destroying the host nation before moving on to swallow the next. Once infected no nation on earth has ever been able to truly eradicate this pestilence from their shores.
I agree and it makes me wonder what their plans are for Greece. Could it be that their plan calls for a depopulation of that country, leaving only enough to serve as serfs to the new aristocracy? Oddly enough, that makes sense in a horrible way, given what is happening over there now.
Leeholsen and Jim aren’t watching the bilateral moves by the Chinese and Russians.
I’m in the UK and it’s worth pointing to our history – it wasn’t so long ago that the pound sterling was the global reserve currency, linked to the gold standard. We decoupled from the gold standard and the rot set in – a new currency on the block that was linked to the gold standard took our place.
The dollar backed dollar then climbed into the throne vacated by sterling & all was well for a while. Then a traitor at the top of the tree decided to decouple the dollar from the gold standard ………………
See the pattern emerging yet? The Chinese and others have been quietly stockpiling gold and a new kid on the block is waiting in the wings – the SDR.
The only real suprise this time has been the sheer utter audacity of the biggest 419 scam in the history of mankind, that’s accompanying the current transition.
gold backed dollar climbed into the throne……
(the birth of the petro dollar)
The British Pound was the world’s reserve currency before World War 2. Where is it now? The government has already printed trillions of bogus dollars. It’s only a matter of time before we have hyperinflation like Germany had in the 1920s. If I was a gambler I’d give 10 to 1 odds that the dollar will be worthless in two years or less.
10 Reasons Why The Reign Of The Dollar As The World Reserve Currency Is About To Come To An End
Direct link below
Totally agree Daisy, in one of Mac’s other articles, he wrote that storing food is way better than putting your money into the stock market. Inflation on wheat is WAY higher than what you can make in the market.
COMMODITIES are a must, be prepared and be financially better off!
In addition – and as far as this article is concerned. I believe it’s spot on with the update regarding the worlds reserve currency. The question is – will governments outlaw physical gold and silver and othe commodities in order to force the adoption of the new currency. Will they outlaw barter as a means of “free trade”. – they will certainly desire to tax any transactions regardless if it is the US Govt or some other country. The elite are pushing for globalism and all of their plans are focused that direction. The govt’s will continue to raise taxes, inject currency into the system (QE3,4,5….) which will cause further inflation, which gives more reason for foriegn nations like Russia & China to pull away fronthe USD as a world reserve currency. All of these actions will result in more wars and more competion for resources. These things take time – but this is the road we are on and we seem to be excellerating rapidly. The longer that goverents and central banks keep the system away from “true” money and keep everything locked into a false paradigm of fractional reserve banking with trillions upon trillions of derivative debt – the worse the crash will be. I may have been lurking here for a while without posting before – but I do want to say that I am truely greatful for all those who comment and share their perspective – I’ve learned a lot from many of you- it’s good to know that there are lots of lime minded people out there.
“””The question is – will governments outlaw physical gold and silver and othe commodities in order to force the adoption of the new currency.”””
No, they will use the military just as they have been doing for the last few decades.
“””Will they outlaw barter as a means of “free trade”.”””
Free trade is already “illegal” for corporate persons. They can make illegal the private transactions between consenting people, but they can not stop or tax it.
That is why I encourage people now to join the unregulated, Lawful economy and ditch the corp with it’s fiat papers and privilege.
All we have to fight for and protect are our rights. Now, most people confuse those with government privilege. They seek protection from the government, then complain about their protector. They want their rights, but have already given them up.
Just like in the movie Bedazzled, The devil will give you what he wants, while making it seem as though you asked for it, no matter what you ask for.
I prefer to watch the corp disintegrate from a distance. There are many of us out there now that do not use corp persons anymore. The quicker you join us, the less the collapse will affect you and the more likely we will be as a People to beat the banksters and restore human dignity to the planet Earth.
the military, at least the majority of them, at least the members they have now, will NEVER comply with orders to confiscate gold, silver, guns, etc, etc. They will immediately form the head of the armed resistance to such.
If TPTB actually thought they had the physical resources to take everything over and impose their plans on us with force, they would have already. Thats the great deception, they DON’T have any power except that which we give them by playing their game and believing they have control over us. FEAR is their weapon because physical power (manpower) will never be a viable option.
@GC I’ve been reading your refernces to “the corp” and “corporate persons.” I am interested in reading up on this topic. I seem to have gotten it in bits and pieces from you and other sources, but I’d like to find a place that lays it all out. Can you recommend something?
I recently read an article outlining what will happen to the U.S.A. when the dollar is no longer the standard.
The consequences to our standard of living when this occurs are devastating.
The US Govt has relied on high worldwide foreign investment in US Treasuries & dollars – thanks to the dollars tie to oil.
This allowed the US Govt to print, borrow & spend money at will. And they did. And they are.
Here is a paragraph from the article.
“The value of the US dollar is based on this role as the conduit for global trade. If that role vanishes, much of the value in the dollar will evaporate. Massive inflation, high interest rates, and substantial increases in the cost of food, clothing, and gasoline will make the 2008 recession look like nothing more than a bump in the road. This will be a crater. The government will be unable to finance its debts. The house of cards, built on the assumption that the world would rely on US dollars forever, will come tumbling down.”
We must be the stupidest people in history. We are allowing the very people who got us into this mess to “fix” it. Lord Help Us.
Here’s a link to the article.
Here’s another fun quote from the article I mentioned.
“The end of dollar dominance is a very ominous sign for the US economy… especially since the federal government seems to be ignoring this enormous elephant. Ignore it at your peril.”
Better “a little” with the fear of the Lord than “great wealth” with turmoil.
Better a simple meal where there is love than a Banquet served with hatred: Proverbs 15:16-17
(The New Preppers Bible)
well said.. i thing we should go back to simpler times once again..
Even the fool democrats should become ‘preppers’ and attain the simple life now before it is forced on us by the mathematics of economics. But alas, the central control command political power does not prefer the simple life, as it is too free. Hence, totalitarianism…
If you have not listened to it yet the video from the 12 year old explaining the Bank Fraud from the Daily Sheeple is awesome. If she gets it why can’t everyone else?
What is the video link to the 12 yr. old explaining Bank Fraud? The discussions are superb! Many thanks.
I think I lost my last comment, got an error message. Here goes again. The real issue here is what I call “FROZEN ASSETS”. At anytime the money and the wealth someone has can be lost and unobtainable. Think about all that can happen all of sudden that make everything someone has in the electronic world of finance that can be lost. An EMP can flatten the entire electronic world of banking in an instance. A sudden event that doesn’t allow someone to get their money.
Imagine someone that is mega rich that has not put away for emergencies. That person can put away food, water, supplies, everything they and their families need for decades at a fraction of their worth. This person has depended on the banks and finaicial instuitions to alwasys stay open. This person now is reduced, after a SHTF event that closed the world of money, to the same level of drinking from a nearby contaminated pond that the same homeless person that they looked down upon just the other day. In an instance how the mighty have fallen will become apparent to those that had everything but had no foresight to put away “real” needs.
Those that depend on the monetary system to function are putting their lives in the hands of shear blind FATE. Those that could have purchased precious metals that they could put in their hands and use for what they need, instead they invested in electronic commodities that evaporate in the same instance. Their creidt is laughed at with any merchant still open, as they are ONLY accepting hard currency or barter items. A few MIGHT be accepting cash money, but the mega rich individual has chosen plastic and a credit rating close to 850 to buy what they need.
The person that is worth 1/10,000 of the mega rich person that has prepared has everything they need within a few steps in their home. For the prepared person that sacrificed for a true tomorrow, the grocery store is now open for business for them, while everything else is closed. The people that depended on a banking system to always be there for them, their dilemma is ONLY made worse by the notion in their minds that the banks will eventually open and everything will be fine. They delay and delay while they could be at least trying to scrounge together something for the days, weeks, and months ahead of nothing.
The person that made so much money, a genius in the business world, is now worse off than most anyone else because their mega mansion is now a big fat target to those that are desperate that think there is plenty in there to be had. The super rich person relies on the police to protect them, which now are long gone to prtoect their own families. The mega wealthy person now sees their idiocy for not putting a fraction of their money into emergency preparedness.
FROZEN MONEY, something people should really give much to consideration. Unless you can hold it, you have nothing if and when SHTF.
The “trust bubble” is about to burst. Everyone take cover.
About to burst? WTH?
I read this article and it got me to thinking how the average citizen of the Western Roman Empire must have felt as the Empire was imploding. Did they know? Did they care? How did their lives change? Did it change immediately or was it a generational shift? What happened to all the Legions that were stationed on the periphery of the Empire? Were they recalled or left in place to fend for themselves?
So it got me wondering what about now 1500 years later, will we bring our troops home? How will we pay for it? Does the average citizen in the USA have any idea what is going on? What is going to happen when the spickett is cut off to the millions who cannot survive without government assistance? What will happen when we can’t pay the police anymore or the fire departments? How about the medical industry?
Travelling throughout the world as I have in the past I observed people in countries where there is little or no government involvment in their daily lives. Where there are very little if any services. Where the water is filthy and the conditions are wretched. I have seen the disease, the squalor, and the fear that they live in. Is this what will become of us or will we adapt and rebound? I hope the latter.
These were just thoughts on my mind.
I only hope that I haven’t begun too late.
The Roman world dies over long period of time. first signs showed already during the reigns of Tiberius and Caligula. but empire rebounded, Claudius came. after him Roma had another share of evils – Nero reigned supreme. and Nero’s death brought yet another civil war – the Year of For Emperors. after that, a very long and stable period through Flavian and then late Nervan dinasties. Commodus was the last emperor when Empire saw prosperity… after that was a steady decline (with some short periods of relative or perceived regrowth) The crisis of the third century was actually when empire and the old ways finally died a true death. there was some sort of stabilization and consolidation during Ivlianvs and others, but basically after AD 300’s Roma was done for.
just go and read Vegetius! that famous De re militaris of his. Do you know how he called Polybian and Marian military systems? The way of ANCIENTS! and the average citizen of Roman empire in 476 AD was no Roman citizen at all. Look at those illegal aliens around you and you will understand why (remember that Romans started to allow barbarian tribes inside Roman lands en mass just in order to avoid having confrontation with them)
I once fancied an idea of writing a comparative article about similarities of USA (and the West as a whole) and Roman republic/empire. but then I remembered that Mac doesn’t like my articles, so I’ll stick to writing comments 🙂
Gee.. I’m really bad with that typing…
meant to say “Roman world died
and “the Year of Four Emperors”, and “dynasties”
Can you write it as a comment?
Your perspective is often refreshing & thought provoking.
mkay I guess I could… I’ll just make it shorter I suppose, but it will take some time since I only made rough sketch on it
Read up on the Romans at armstrongeconomics.com.
You totally forgot to mention the only reason the “dollar” is still taken by anyone. Those are the “agreements” from oil exporters to sell only in “dollars”.
We have all seen what happens to those governments who refuse or try to act to the benefit of their people by requiring gold for payment.
I suspect that 100% of what China imports in oil from compliant countries is financed by the selling of accumulated US treasuries (back to the fed).
All TPTB are trying to do is buy some time by starting wars and forcing countries to take the dollar until they no longer want them to. Then the protection will be offered for those who sell their oil in SDRs.
The wildcard is the Honor of our military and the ability or will of our own soldiers to protect us. It saddens me that they have been so brainwashed as to believe that killing innocents in foreign lands is OK. It bothers me even more that they are apparently ready, willing, and able to train to specifically for the purpose of fighting the very people they are there to protect.
Will they agree to take SDR payments for their service? If they are so willing to sell out now for the bogus fiat “money” and prepare to attack us instead of attacking the banksters and politicians that they should be protecting us from, we should expect the worst from them.
The dollar is being held up by oil sales terms enforced by the military power of the corp alone. Our only hope is for a collapse not only of the fiat dollar, but of the military that it supports, the owners of which fully intends to use against us just as it has used it against other foreign countries to FORCE us to accept their new fiat scheme.
It’s about control of the money. The People must rise to the task of taking it back from the criminals.
Not only must the criminals control of the money be taken away, but the criminals must also be put away. That’s our ONLY fight. If we win them all but that one we will be no better off.
The dollar, as measured against other paper currencies via the
dollar index, is the best looking horse, in the glue factory.
Does it really matter? The dollar has been losing massive amounts of value since the 1970’s, even as the reserve currency.
The problem is not the dollar, the SDR or derivatives, the problem is governments enforcing 1-2% price increases year after year in order to transfer wealth from the lower orders to the government. Some governments make productive use of the money, but most simply recycle it back to the people they impoverished as a means of political control (after skimming off the top of course).
Logically, you would think progress would be prices falling dramatically year after year, with wages or hours required to work falling at a slower rate. Workers work less, and have a higher standard of living. But this is the exact opposite of what centralized states require – they need ever expanding pools of money and attempt to have wages increase faster than prices. It never works for the masses, but makes the elites wildly wealthy.
That link on the SDR’s is a bit scary…I know we’re heading down that road…but still, to see it in print..wow!
Get ready for the new and improved monopoly money.
Meet the new boss, same as the old boss.
The dollar is eternal. America has the right to print money, no one else has. North Korea is practically the last nation on earth without a R-controlled central bank.
If dollar goes the rest of the world will die before America.
With the diehard Progressives and those who choose not to educate themselves, I keep it simple. I say, “Let’s compare the US Dollar to the Wizard of Oz.” I get the deer-in-the-headlights look…..Then I say, “Now what happened when the curtain was pulled back?”
That example seems to pique their interest so I explain that there is great mojo and power behind a person’s perception. And I didn’t even have to get into all of the government hoo-doo and ‘conspiracy theory’ to explain why we are economically screwed. They don’t wanna hear that anyway.
The wizard of oz was one of the first horns sounding the alarm re the fiat & the federal reserve all wrapped up in a kid’s bed time story. We just need to find our brains, hearts and courage to survive the end of the illusion.
How many decades ago now was that written?
You look at The chrysalids, 1984, animal farm, the swan – how many warnings have we been given? (Even ignoring Jesus & the story of the temple money changers).
Even now I’m shocked at how many keep on drinking that Kool Aid.
Because Kool Aid is just another story, too, isn’t it, Lonelonmum? lol
Bankers and government MAY be the ones who begin the decline/doubt in the dollar; but of equal possibility is that events in other countries may raise the specter of doubt in the dollar’s worth. If you think about it, if the second scenario plays out to be the real one, the unintended consequences would spiral out-of-control more rapidly. That fact would be more difficult to deal with, as the bankers/government would not be in control of the fall. They could only attempt to deal with the aftermath and that would require a dictatorship. Their draconian over reach would spark a civil war that no one would be in control of. Bad thought that!
The power elite need their global enforcer the US Military. If the US economically collapses the Military if defanged. If the collapse happens it’s not in the interests or wishes of the power elite.
No doubt the US standard of living will continue to decline but it will stabilize slightly above the “go for broke” revolt stage. If it goes beyond that the power elite will loose their precious enforcer.
I suspect the US for the most flimsy of reasons like freedom and democracy will commit troops over even more vital resources most likely in Africa forcing more use of the USD to obtain the raw material. Developing said countries increasing their standard of living creates a greater pool of USD demand to dilute the ever increasing supply of money.
They ain’t building new aircraft carriers and state of the art generation 5 aircraft with the expectation of loosing it all.
If the above does not take place it’s because the power elite have lost control.
Strange you mention africa, I may be headed there soon for some merc work. Pays well(well once I convert it into something worth having like silver or useful items) and it appears to be the dawn of the African Union(AU). It appears to be a joint venture between canada, USA, and UK.
So I think you are fairly on the spot when you say they will not want to lose their enforcer. Because facts are the China isn’t going to do it. But the US seems to love starting wars.
Why would you choose merc work?
Why actively assist the banksters?
Why forfeit your soul?
“Because facts are the China isn’t going to do it”
One big reason they don’t want to loose their precious US Military enforcer is Chinas growing military capacity. Of course China would use it’s forces for China and not globalization.
The US is securing resources and routes to resources. We supported un democratic dictatorships for decades allowing them to misbehave and therefore “justify” some future intervention at a time and date of our choosing. The US public raised on WWII movies goes along with the program like every “war” is justified for freedom while their strip searched and tasered at home.
How’s that “one currency” experiment working for the Eurozone? Not too well. While the moneymasters may wish for something like a global currency, don’t look for it too soon.Too much cultural diversity in this here world for that to happen yet.They must first get the “unit of labor” to a level playing field. This means lower living standards for Americans and higher ones for most other developing countries.That will NEVER go over well here in America.We have only begun the fight against the corrupt banking cartel and their DC minions.
Serfs up America!
“This means lower living standards for Americans and higher ones for most other developing countries.That will NEVER go over well here in America.”
It might not go over well but it will go over. It’s going there as we speak. You vote Democrat or Republican and you get NAFTA and China Free Trade regardless. Europe was in the same boat getting Free Trade with it’s associated de-industrialization and debt as a replacement regardless if Labor or Conservatives were in power. The “Democracies” have been hi-jacked across the globe. Yes their that powerful.
“Let me control a nations money supply and I care not who writes it’s laws”.
Mr. Blutarsky, here is the exchange rate chart for the US$/SDR the US post office uses:
Looks like the SDR is pegged to the British Pound.
Obama Declares State of Emergency through yet another Executive Order
Direct link below…
From the article…
“This is a seizure of all Yemenis owned properties in the United States and the properties of any American with business ties to any interest in Yemen.” …
“Everyone had better be advised. There now exists within the United States a declared State of Emergency. Under this State of Emergency, Obama can now issue orders that create law as the words are coming out of his mouth without so much as a “by your leave” from our Congress.
Why this issue has not been in the mainstream news is cause for concern. If Obama can just, out of the blue, change US foreign policy, he can change any federal law and or create new federal law on a whim.
One might be prudent to ask who that “other” is he refers to in the executive order.”
This is truly horrific!
Then They Came For Me
First they came for the communists, and I did not speak out—because I was not a communist;
Then they came for the socialists, and I did not speak out—because I was not a socialist;
Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist;
Then they came for the Jews, and I did not speak out—because I was not a Jew;
Then they came for me—and there was no one left to speak out for me
~Pastor Martin Niemöller (1892–1984)
A repeat of the Japanese internment camps of WW2 with no justification.
In Jesus name, the Africans of the diaspora will resist this oppressive act.
I would advise ALL those who have the means and ability to aquire a second passport and to aquire a small portable stash of PM’s sufficient to flee at a moment’s notice if needed. Pray that you will never be tagged a “dissenter” and need it.
This news has me totally rethinking my own long term preparation plans. My first duty before God is to ensure my children and those of my sisters survive.
The sky is falling!!!! I must prepare!!!!!
Build a bunker and stock up on ammo and food!!!
one of the great satisfactions during and in the aftermath of this crisis will be telling idiots like you to get bent when you come begging to eat anything, including my toenail clippings.
Naw, stay clam Wack Job! No need to prepare.
Trust the government to take care of all your needs.
Go back to watching the T.V. News, they will reassure you that everything is just fine.
That’s not the sky. It’s a drone IN the sky.
Where did the link about the SDR’s go???
Okay, it’s not just me, SML. I was looking for what you were talking about!
TY Daisy..I thought I was seeing things! LOL!
The Last Official Act of Any Corrupt Government is to Loot the Nation…
According to in-house memos now circulating, the DHS has issued orders to banks across America which announce to them that “under the Patriot Act” the DHS has the absolute right to seize, without any warrant whatsoever, any and all customer bank accounts, to make “periodic and unannounced” visits to any bank to open and inspect the contents of “selected safe deposit boxes.”
LOL!! This article was written for durango boy, he is the perfect example of those the author is calling out, will he show up with his paragraphs of rambling nonsense trying to refute this article or will he find some humility and save us all from trying to sift through his BS to read relevant information posted here? I say he can’t resist and his ego won’t allow him to see his errors…or he will just say he never said it.
Durango boy has responded to the article. While I appreciate Brandon, his work at Alt Market, and other commentary i have read, his view of the dollar and the economy is inaccurate and not based on the economic facts.
Brandon is predisposed for collapse, as many in Alt Media are, as if collapse is the natural consequence of current financial conditions. It is not. Recessions and Depressions come and go. This one is bad.
It is not the end of the financial world as We know it.
Except in the case of Europe which must use this crisis to implement a copy of the FED architecture as a template in conjunction with a single sovereign government for Europe if it is to remain anything other than a mutual defense agreement.
Engage your managers or be enslaved by them.
The elephant in the room is OPEC. The minute they decide to dump the dollar the US economy will crash. The Saudis have a trillion or more in our stock market and they hold a lot of our Treasury bonds but at some point they’ll stop throwing good money after bad. When the US can no longer buy oil in dollars we’ll become a third world country. The US imports 70% of its oil. The remaining 30% will be seized by the government for whatever it decides to do with it. The vast majority of people will have no way to get to work. The economy will shut down. Food will no longer be transported across the country. Even if it was, the vast majority of people would have no money to buy food. It’s going to get horrifically worse. I think the crash happens this year. Probably in the fall before the election. And no, there won’t be another election.
In doing so the Saudi’s will loose their protective shield.
He knows something, they dont want him to say
Daisy, SML, this link works for me…scroll down:
TY another Jay!
Obama’s Literary Agent in 1991 Booklet: ‘Born in Kenya and raised in Indonesia and Hawaii’
Direct link below
As of now the “value” of the dollar is up against other currencies….. I just dont see the dollar dying off just yet. When ALL the world quits using the dollar to buy oil…then its time to panic. Stay vigilante and keep prepping.
the dollar is going to be replaced by whatever works for whoever you are, wherever you are at the time… whatever works best locally. why do i say that?……..
world’s reserve currency? i really don’t give a shit. couldn’t care less what the galactic reserve currency is, either. when dollars become worthless (almost there…), i have an expanding garden. i have PMs and acquiring more. i have stuff stocked up. i’m not worried. right now, i’m in better shape than most people. dumb-ass DHS can have what i have in the bank: twenty-eight cents. LOL
max keiser said to buy silver & crash JPM. i did that, i still do that and i will continue to do that until i can’t, but i look a little farther down the road and set my sights just a bit higher: crash the USA by not playing their (banksters/politicians) game. easy.
i’ve read this article twice and i’ve seen it posted on numerous other sites the last two days. each time i read it (and then spot it posted somewhere else) my reaction is the same: so what.
i used to think i have absolutely no control over what goes on in the upper echelons of law and banking. i was wrong. i have a little. so do you.
stop playing their game. stop giving them attention. attention = energy. stop giving it to them.
i now spend more time in the garden & yard than in front of the computer. i don’t read the “news”papers, listen to radio or watch tv. ((ehhh, ok, i watch a smidge of tv: weather channel and now that playoffs are here i watch a little hockey [usually while doing other things]….hey, at least it’s not DWTS or AGT)).
i used to be glued to a collapse-oriented website when i started the ‘waking-up’ process. i don’t bother even going there anymore. i don’t need to. and i don’t want to. and i’ve got other stuff to do.
i’m not at this site as much as i used to be, as well as many other sites. the ***RON PAUL REVOLUTION*** took care of that for me. ron paul-this and ron paul-that, ron paul in my face wherever i go to read. “Don’t bother with it,” i used to post. LOL, ron paul revolution, my ass. now i just laugh. the ron paul thing was waaaay too much like ross perot. does anyone remember ross perot? i laughed back then as i laugh now. history repeats. when perot dropped out what were the “choices” then? poppy bush and clintoon. either way you go, we all lose. y’all made goddamn sure of that, didn’t you? just like you’re going to make goddamn sure of it again this year.
choosing between the lesser of two evils is still choosing evil.
do you still not believe these ‘people’ are evil? i guess you need another 20 years of “voting” and thinking (cue hamster on rusty spinning wheel).
someone up above this post said, “Meet the new boss, same as the old boss,” and i see that posted everywhere from zero hedge to right here to activist post to collapsenet and on and on. it’s true. what you’ll end up with tomorrow is exactly what we have today. history repeats, and not just after scores and scores of passed years. as long as you continue to pour your attention into ‘the next boss’, the next boss is going to continue to arrive, right on schedule, with little to no difference between the two. this is what ‘voting’ gets you. why do you continue to play that game?
DISENGAGE. DISOBEY. DISCOVER who and what you really are and what you are truly capable of. it’s easy. all you have to do is try and keep trying and don’t stop trying until you succeed. how will you measure your success?
i don’t know. only you will know that. aren’t you eager to find out?
Wow, awesome post CR. 🙂
Quote of the day:
DISENGAGE. DISOBEY. DISCOVER
To disengage is to surrender to the NWO: a small group of elites and dual citizens around the world who want you to live your life their way; and for their behalf.
They want to limit your education and tax your wealth while creating loopholes and privileges for themselves and their progeny.
They want to decide what is best for you and your family.
They want you to eat the food that their corporations grow for you, and limit you from feeding yourself.
They want to impose rules, regulations, and laws to limit your access to your own national forests; then charge you fees for access even to the air you breathe.
They want you to move into the inner cities where they can control you and impose their will upon you.
They want to control the information you get, the choices you can make, and the options that you have.
Most of all, they deny your God given human rights and want you to deny them too. Don’t disengage.
If you disengage you submit to their domination over you. You deny your rights as a child of God, a free soul within a community of free souls whose very nature is to express what is inside, outside.
Organize. Initiate. Demonstrate. Speak truth to power. Demand your rights and your Constitution.
DK, I think it depends on one’s definition of “disengage”. By disengaging from certain aspects, we are refusing to participate in something fraudulent and unConstitutional. By refusing to participate in their system, but doing so VOCALLY, we do demand our rights.
Daisy: Even OUR most self described disengager, GC, has admitted that he has yet to escape the corp. I rest my case.
Its not possible.
“as we are liberated from our own fear, then our presence automatically liberates others”.
The words of Mary Ann Williamson above.
DDD it is mate ; )
Got yourself lots of “dis” going on there, Ron: “DISENGAGE. DISOBEY. DISCOVER who and what you really are and what you are truly capable of.”
I’m not convinced. When a person disengages, apathy sets in. Will apathy set you free? How about ambivalence? Will that work for ya?
How about enlightening us on what you have actually discovered about yourself now? Who are you and what are you truly capable of?
“Resolve to serve no more, and you are at once freed. I do not ask that you place hands upon the tyrant to topple him over, but simply that you support him no longer; then you will behold him, like a great Colossus whose pedestal has been pulled away, fall of his own weight and break in pieces.” – Étienne de la Boetie
Lyme Disease: An Emerging Epidemic
While there are a number of scenarios that could send us down into the abyss I truly believe this will be the one that dooms us. As the article says it is already under way and picking up steam. Once the dollar goes it will snow ball. This will lead to many other problems. Unable to fund our military we will be easy targets for those that want to see America destroyed. Prepare the best you can while you can.
Relax a little we have been smart enough that we owe them so much money they will go down with us. (Secret plan, don’t tell)
So the question I have is……… Is there any point saving dollars( money) or should it be quickly converted to useful stuff
Rich..I have all the food and supplies I can use in ?? years.
I plan to pay forward my phone, water, and electricity for a year…can’t pre-pay property taxes–I tried that once; Farm Bureau are buttholes about yearly payments also(only 6 months on autos) and that leaves only the three mentioned.
To steal a line from Prepped Pastor; ABCD (anything bernanke can’t destroy).
always keep enough cash for 6-12 months of expenses, If the law says they want $5 for a bridge toll; even if the money is worthless; if you want to cross the bridge you must have $5
rough times ahead people keep prepping!
censorship is for fascists
I don’t doubt it could happen.I also expect that sometime between now and that day we’ll see the American banking “system” frozen like Mexico did back in the 1970’s.The next day revalued at 1 new peso to ten “old” pesos.The UBER-RICH knew when it was to happen.Everyone else suffered(and are still suffering)Argentina went through the same grief.Zimbabwe went thru it even faster and harder.I’m guessing our “National Banking Emergency Order” will take about an hour to implement.If I were a betting soul I’d make the results at a ratio of about 1,000 greenbacks to ONLY 1 “new times of change” fiat paper money.
It’s only REAL purpose would be to greatly enhance the already powerful TPTB folks and destroy financially any opposition.
Personally,I look beyond all this Satanic-inspired lunacy of those who want to have total control over others.
St.John gave those of us with faith us a hope for the future beyond today at Revelation 21:3&4.
let TPTB do their worst.I gave up believing ANY of the promises(A.K.A.lies and falsehoods)put forth by any government entity.However,I’m “putting something aside” supplies to care for current needs while looking beyond our current tribulations to the future.
Best to All
Kenyan Ambassador admits Obama born in Kenya
Proof Obama Admits He Was Born In Kenya
After the mass arrests take place (from Obama to Bernanke to Bush on down the line), the Federal Reserve Note will be replaced by legitimate precious metals backed treasury notes, just like the Constitution mandates. The little guys (you and me) will get to trade our worthless FRNs in for new treasury notes on a 1:1 basis, while certain banks, certain corporations, and fraudsters will get pennies on the dollar, if they get anything at all. Mark my words- as sure as the sun will cross the sky, the mass arrests are coming.
i am praying you are right.the options are just not acceptable.
what is your opinion and knowledge of what will happen to all of the debt out there. both government and personal debt?
“The naysayers can scratch and bark all they like…”
Ha, good one.
So many good articles lately; just a few thoughts…
The SDR is not a currency we, the public, will ever use for daily trading or savings. These are allocated notes, like reserve notes, that are issued by the IMF to G5 nations. They are an extension of credit based on a nations assets and GDP – just like a bank giving me credit based on my assets and how much I earn. Unfortunately, the US is running out of credit, even with the IMF, and so fewer SDRs will be available. These SDRs serve the same purpose as the Bancor proposed by Keynes – which was to protect against impacts by the domination of a single reserve currency. The SDRs enable value equilibration among national currencies – keeps one nations currency from utterly destroying another’s. This equilibration could not be accomplished with nations exchanging gold or any other asset of finite supply – this is why Nixon had to “unpeg” the dollar from gold – because the US needed to increase the money supply to allow it to be used as a reserve currency. The US had to increase the money supply to support the advent of the petrodollar domination. SDRs are just an exchange currency exclusive to the IMF. No matter what the emerging reserve currency, the US problem is going to be convertibility. The current US credit crisis and state of debt is going to keep us from converting into the new currency at a good rate of exchange – we won’t get squat for these “federal reserve notes”. What can I do to prepare? Start becoming dollar independent by converting into assets (land, metals, art, classic cars, etc.) and/or into currencies of nations with more assets, better credit, and a promising GDP.
JPL: An absolutely EXCELLENT comment until you suggested that WE would have difficultly converting the FRN’s into the “new currency”.
The dollar is the most fungible currency in the world, representing the largest most diverse economy in the world.
That is why it is the world’s reserve currency.
durango: Thanks for your compliment and thots; sorry to have let you down. The loss of appeal of the FRNs is effecting their fungibility (convertibility) – the crash occurs as it reaches zero fungibility – it’s why we’re prepping – I think. Perhaps you were being ironical?
ironical, Ha, doubt that, he’s big time merchantilists, Very.
JPL: No apologies necessary. Please explain how teh dollar is losing its “convertibility”.
Clark: You want to have this debate again? I handed your ass to you on a silver platter last time, don’t think I can’t do it again.
China is the one practicing mercantilism. Even OUR fucking Congress says so.
China buys more than one billion dollars every day in the currency markets to suppress their currency and increase the value of the FRN through demand: $36 billion last month.
Brazil bought nine billion dollars last month to suppress the value of their currency. Other third world nations do the same. They create a demand for dollars and push the value up while pushing the value of their own down by printing their currency and using it to buy dollars.
Fair Trade is not mercantilism; but intervening to debase your currency is mercantilism. hell you cannot even spell it correctly! 🙂
Go back to school dumb fuck! You are an economic idiot! 🙂
Durango; this is a reply to your interest in how the FRNs may be losing their convertibility. Establishing a reserve currency requires the host country to run a trade deficit (buying more than selling). In an ideal (free trade for all) system, this could not be sustained because the host country would run out of spending money for imports, and would have to sell exports to raise more spending money. This is a basic trading cycle based on finite money supplies – and these monies would have to be based, or pegged, to an asset (gold?). If you have a lot of assets, you can supply a lot of money. IFF, you were to lose those assets – as if you sell off your gold, consume or sell your oil, sell all your land, etc. – AND you concurrently increase your money supply – you wind up with money that has decreased buying power. Now, in the global economy, when one country pays for imports from another country, there is concern for the value stability of the currency of the buying country. So, the selling countries, which are not in the reserve currency position, rely on exporting and value stability of their exports – at the sacrifice of devaluing their currency against the currency of the buying country. This is a monetary intolerable act and no country can sustain this impact indefinitely – at some point, the exporter will refuse payments in terms of FRNs – or will only accept them if the importing country agrees to let the exporting country hold the buying countries assets – i.e. US and Britain’s gold going to Chinese banks, US farmland going to Chinese food conglomerates. Convertibility of FRNs to other G5 nations, principally China, must now be backed by assets – and the US can only do this for so long. When all material assets are traded away, the only thing left to trade is US labor – and we will live like the rest of the laboring world.
The US dollar is redundant toilet paper and the sooner it is replaced with something else, the better. As fiat paper currency goes, it is the ugliest bitch-ass currency in the world. It even feels like crap: the paper is so thin and wrinkly.
This worthless toilet paper has only one thing that backs it up: the US military and global spy apparatus. Without that, the dollar would be long gone.
We need something like a global currency – a globo – if you will.
The day the US dollar disappears will look like this: the sun will rise, a man – or woman – will get out of bed, pass stool and urine, take a shower, brush their teeth and go to work. As in, life will be the same.
The globo should have colour and sharp design. It must be made with the finest currency paper – think Switzerland or Australia – and it must be of a range of sizes to help the blind. And, and this is critical, it must certainly must not be green with a gazing eye atop a pyramid. That shit is just plain creepy!
Frank: When people wake up to a global currency, they will be waking up under a one world government.
Welcome to the New World Order.
Durango, go back to the NWO article on this site. Frank’s “thoughts” on the matter are clear – his is one of the last posts.
He’s all for it and thinks we should be too.
Keep in mind: the rest of the world owns 100 per cent of America’s debt. America is kept by the short hairs at the behest and leisure of nations like China, Saudi Arabia, Britain, etc.
America’s economy could go down any day that those countries choose to pull the plug.
Maybe it is time to drop the jingo and start to embrace the wider world? Even America’s kill teams have left the country and set up their busines operations in the middle east. In fact, 90 per cent of America’s business wealth and power centres now reside off-shore. It is over and the sooner most people realise that, the better.
I am not a Christian. I believe that Gods Teachings come from Gods Grand Design which is Nature.
Contrary to popular belief, Nature was not created to serve Man. Man was created to serve Gods Structural Design – Nature.
Gods Design rewards and punishes us on a daily basis, cumulatively. Unfortunately you have not been taught how to recognize either such punishment or reward.
We have refused to control our Governors, in doing so we have refused to respect Gods Structural Teachings, thus we are being punished.
Until we accept the responsibility of Controlling our Governors and respect Gods other Structural Teachings then our Punishment will increase.