Expect These Eight Steps From The Government’s Playbook

Tyler Durden's picture

Submitted by Simon Black of Sovereign Man blog,

To anyone paying attention, reality is now painfully obvious. These bankrupt, insolvent governments have just about run out of fingers to plug the dikes. And history shows that, once this happens, governments fall back on a very limited playbook:

  1. Direct confiscation

    As Cyprus showed us, bankrupt governments are quite happy to plunder people’s bank accounts, especially if it’s a wealthy minority.

    Aside from bank levies, though, this also includes things like seizing retirement accounts (Argentina), increases in civil asset forfeiture (United States), and gold criminalization.

  2. Taxes

    Just another form of confiscation, taxation plunders the hard work and talent of the citizenry. But thanks to decades of brainwashing, it’s more socially acceptable. We’ve come to regard taxes as a ‘necessary evil,’ not realizing that the country existed for decades, even centuries, without an income tax.

    Yet when bankrupt governments get desperate enough, they begin imposing new taxes… primarily WEALTH taxes (Argentina) or windfall profits taxes (United States in the 1970s).

  3. Inflation

    This is indirect confiscation– the slow, gradual plundering of people’s savings. Again, governments have been quite successful at inculcating a belief that inflation is also a necessary evil. They’re also adept at fooling people with phony inflation statistics.

  4. Capital Controls

    Governments can, do, and will restrict the free-flow of capital across borders. They’ll prevent you from moving your own money to a safer jurisdiction, forcing you to keep your hard earned savings at home where it can be plundered and devalued.

    We’re seeing this everywhere in the developed world… from withdrawal limits in Europe to cash-sniffing dogs at border checkpoints. And it certainly doesn’t help when everyone from the IMF to Nobel laureate Paul Krugman argue in favor of Capital Controls.

  5. Wage and Price controls

    When even the lowest common denominator in society realizes that prices are getting higher, governments step in and ‘fix’ things by imposing price controls.

    Occasionally this also includes wage controls… though wage increases tend to be vastly outpaced by price increases.

    Of course, as any basic economics textbook can illustrate, price controls never work and typically lead to shortages and massive misallocations.

  6. Wage and Price controls– on STEROIDS

    When the first round of price controls don’t work, the next step is to impose severe penalties for not abiding by the terms.

    In the days of Diocletian’s Edict on Prices in the 4th century AD, any Roman caught violating the price controls was put to death.

    In post-revolutionary France, shopkeepers who violated the “Law of Maximum” were fleeced of their private property… and a national spy system was put into place to enforce the measures.

  7. Increased regulation

    Despite being completely broke, governments will dramatically expand their ranks in a last desperate gasp to envelop the problem in sheer size.

    In the early 1920s, for example, the number of bureaucratic officials in the Weimar Republic increased 242%, even though the country was flat broke from its Great War reparation payments and hyperinflation episode.

    The increase in both regulations and government officials criminalizes and/or controls almost every aspect of our existence… from what we can/cannot put in our bodies to how we are allowed to raise our own children.

  8. War and National Emergency

    When all else fails, just invade another country. Pick a fight. Keep people distracted by work them into a frenzy over men in caves… or some completely irrelevant island.

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toys for tits's picture

If plugging dykes is the remedy, then I'm the doctor.

Kilgore Trout's picture

She's really not that into you.

machineh's picture

It's all good fun, till one of her hair spikes pokes out your eye.

ACP's picture

Or any of the other industrial equipment stuck to her face.

illyia's picture

Or any of the other industrial equipment stuck to her face.

Ummm... Pot v kettle?

Like, ummm, mirror?

Say What Again's picture

When the Levy breaks...

mama you got to go...

Taint Boil's picture



No offense but your face looks like you got shot in the face with a squirt gun full of trifluoromethanesulfonic acid – but I’m sure you’re a nice guy on inside.

ACP's picture

What? You can't make fun of the ridiculous uniforms people wear to show their 'individualism'?

Stoploss's picture

The speed that they are implemented in will make your head spin.

After number two, then they kinda run all together.

frankthomaswhite59's picture

who can possibly down-vote these comments?

must have a plug in their hole...


thanks for the laugh

Rogue Trooper's picture

Agreed. We can only assume they are socialist fun-nazis :?

They even down-voted you for some WTF reason????

Anyway I hereby give you a virtual +100 MOAR votes... take that humourless stazi-trolls!

in4mayshun's picture

The playbook is much less effective when the other team knows the plays.

Cognitive Dissonance's picture

Even if they know your next play they still gotta stop you.

<The real question is.....what are we gonna do about it folks?>

CH1's picture

The real question is.....what are we gonna do about it folks?

And "complain" is not an acceptable answer.

orez65's picture

Exchange any US Dollars that you have into gold and silver coins.

Preferably US Gold and Silver Eagles as they have the best liquidity.

Wait until the shit hits the fan.

Buy everything at a discount with your gold and silver.

e-recep's picture

that's the plan, yeah, but life in sovereign fiat hyperinflation could be a little different than what we can imagine. it's uncharted territory.

CrimsonAvenger's picture

You mean, all my snarky comments on websites aren't helping?

Kirk2NCC1701's picture

A bunch of people and I plan to grill Simon on this, this coming weekend.  At the Workshop in Santiago. 

Stay tuned, while I put my money where my mouth is.

DoChenRollingBearing's picture

OK, Capt. Kirk!  Please do report back with your findings, and let us know what you think of CHILE!

CompassionateFascist's picture

A nice place to visit, but I would not want to live there. I mean, you are lying on a beach, and out of the surf slides a killer whale who eats you. 

FL_Conservative's picture

Nor is watching American Idiot, the DeBaucherette or Filandering with the Stars.

enloe creek's picture

read comic books, it's nostalgic, you might even think for a minute there are superheroes who give a shit about you

Rogue Trooper's picture

What have I been doing?  Well my custom Ruger 10/22 build is going much better than expected. Lower than expected cost along with better than expected performance. The BUIS/reflex & red-dot are now are co-witnessed and that was not easy on a Ruger 10/22 which still has the standard synthetic stock.  The last issue is finding an additional rail that will provide enough additional height so I can add the scope on QR rings without removing the rear iron sight (Monday I found it!).  I will have the perfect SHTF zombie dispatching back-up platform once I get it sighted in for CCI high velocity stingers at 25, 50,75 and 100 metres.  It's already a tack driver with a standard barrel using CCI .22 standard velocity and should be lethal out to 50 to 100 metres with the high velocity .22 rounds assuming accurate placement.  At worse it's a distraction/nuisance and I can fucking run. 1st and 2nd rules will of course always apply should this scenario arrise.

So to summarise:

  • A cheap back up rifle (verses my collection of .308's), something I use a lot at the range for practice and plinking, great for varmint/pest control and a better self-defense platform than folks give credit.  Shoot yourself in the foot and see how it feels if you are still skeptical.
  • Considerable amount of fun.
  • Gunsmithing and tuning experience.
  • Time spent productively has I wait for armageddon.

That is what I have been doing...

illyia's picture

Everyone knows what to do, CD. They just do not want to live without the (perceived and current) perks, or have their friends think they are 'conspiracy theorists'.

Who has not seen 'War Games'.

That is all, folks.

Cognitive Dissonance's picture

We are all herd animals.....some more than others. This is our great denial and the leverage most often used against us.

Salah's picture





Shell Game's picture

Caveat emptor on this video. I wonder how Duncan's overly simple plan of turning massive money printing toward corporate insiders won't further deepen our corrupt economic and monetary system, government and culture?  How can he possibly beleive that living outside of our means - and massively so - will lead to no toxic unintended consequences?  I never thought I'd hear a man invoke Mises and Krugmanism simultaneoudly, but behold... Richard Duncan.

trader1's picture

duncan is a logician / utilitarian idealist.

there is nothing wrong and right.  

there is only more and less suffering, now or later or possibly never.

Rogue Trooper's picture

Salah, you got excited over nothing but no need to worry it happens to everyone!

Read CD's post which is, ironically, just above you.

"We are all herd animals.....some more than others. This is our great denial and the leverage most often used against us"

bloostar's picture

I'm sure there's a Dick van Dyke joke in there somewhere. If only I could find one.

frankthomaswhite59's picture

yeah Toys, someone has to do it...


Zer0head's picture

let the 8 ball roll

francis_sawyer's picture

I got my money on the bolded


  • It is certain
  • It is decidedly so
  • Without a doubt
  • Yes – definitely
  • You may rely on it
  • As I see it, yes
  • Most likely
  • Outlook good
  • Yes
  • Signs point to yes
  • Reply hazy, try again
  • Ask again later
  • Better not tell you now
  • Cannot predict now
  • Concentrate and ask again [this reply reserved for blowjobs]
  • Don't count on it
  • My reply is no
  • My sources say no
  • Outlook not so good
  • Very doubtful
ZerOhead's picture

Remember the rules... 8 ball last Junior.

I was amazed that the ECB/EU went for the Cyprus 1 ball into the banksters side pocket shot while all those other easier balls were still in play...

StychoKiller's picture

"These cards are gonna fall like a house of dominoes -- checkmate!" -- Zap Brannigan

Rogue Trooper's picture

Or they could be snookered?

..just sayin'

Mercury's picture

So, does gold rally before it becomes illegal (again) or not?

Coldsun's picture

You bet, the government needs to inflate the price before and during the confiscation.

NoWayJose's picture

Of course gold will rally, straight up until the government confiscates it.  But the key at that point is that your gold will be maintaining its buying power against the strongest currency left standing, and will INCREASE your buying power against all other currencies.  Nothing else can do that.

sunaJ's picture

Gold is like garlic to vampire squid fiatists, to hear them talk.  Protest too much?

Scro's picture

Wait a minute, you mean I should not have sold all of my gold and silver to buy bit coins.

Damn it.

orez65's picture

Fuck Bitcoins, they are just another fiat money scam.


Don't get fooled!!!

chdwlch1's picture

Magic 8 Ball says, "Ask again later"

CoonT's picture

Rally? I didn't think gold actually did "rally". Is gold not the absolute and finite standard by which these paper lies fluctuate and diminish? The lower it's paper price falls, the more we can accumulate..

SpiceMustFlow's picture

Agreed, suits and steak dinners and all that

jeebus's picture

You forgot the pay raise they're giving everyone at CNBC.

Yen Cross's picture

   ( 8 )balls are used in the game of billiards. (9) balls are used in the game of banking.