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What Will Happen To You When The Dollar Collapses?
Submitted by Jeff Thomas via Doug Casey's International Man blog,
?Historically, when a nation’s debt exceeds its ability to repay even the interest, it can be assumed that the currency will collapse. Typically, governments exacerbate the situation by printing large amounts of currency notes in an effort to inflate the problem away, or at least postpone it.
The greater the level of debt, the more dramatic the inflation must be to counter it. The more dramatic the inflation, the greater the danger that hyperinflation will take place. No government has ever been able to control hyperinflation. If it occurs, it does so quickly and always ends with a crash.
Although there are observers (myself included) who frequently discuss what a reserve-currency crash would mean to the world, there is little or no discussion as to how this would impact people on the street level, and perhaps that discussion should begin.
When currencies crash, the state often tries to float a new currency. Sometimes, it’s accepted, sometimes not. Generally, the people of the country (and those trading within the country) move immediately to “the next best thing.” In 2009, when the Zimbabwe dollar crashed, several currencies were used, but the US dollar was the clear favourite, as it was the world’s reserve currency and therefore the most “spendable” currency.
Not surprisingly, the Zimbabwean government fought the use of the dollar, as they wanted to retain control of the economy and the people. People were therefore penalised for using the US dollar and other currencies.
And that’s what most governments do, but here’s where that idea usually falls down: First, the “black-market” currency is so desired by the now-jaded citizens that they do all they can to avoid the new official currency. Soon, most transactions, although illegal, are undertaken in the black-market currency. Second, since no one really wants the new currency, even the political leaders are soon using the black-market currency.
Ultimately, the black-market currency is legalised (since it’s the only truly workable solution), and it often becomes the unofficial currency, if not actually the official one.
First, the Euro Crash
It’s safe to say that the EU, the US, and quite a few other jurisdictions are nearing currency crashes, and in all likelihood, the euro will go before the dollar. So, unless the EU has already prearranged a new euro, the US dollar might well be chosen as an immediate solution to the problem, as the US dollar is presently recognised and traded throughout Europe. Therefore, a relatively painless transfer could be made.
Then, the Dollar Crash
However, the dollar, which is presently praised as being a sound currency, is really only sound in relation to the euro (and some other lesser currencies). Once its less stable brother, the euro, collapses, the dollar will be exposed.
As the US dollar is a fiat currency and is on the ropes, the US (and any other country that is using the dollar as its primary currency when the time comes) will experience a currency emergency at the street level that will be unprecedented.
The big question that is generally not being discussed is: The day after the crash (and thereafter), what will be the currency that is used to buy a bag of groceries, a tank of petrol, a meal at a restaurant? Certainly, the need will be immediate and will be on a national level in each impacted country, affecting everyone.
And Then…
I have discussed for some time that the US will be prepared ahead of time with a new, electronic currency. This will serve three purposes:
- It will allow the US government to blame paper currencies for the crash, in order to distract the public from recognising that the government itself is the culprit.
- It will allow the US government to create a currency system that disallows the holding of tradable currency by the population—that is, a debit card would be created by banks through which all transactions must pass, assuring that all transactions are processed by (and thereby subject to the control of) a bank.
- It will allow the US government to have knowledge of every penny earned and spent by any individual or organization, allowing for direct-debit income taxation.
If the US does institute such a system, US citizens will then become the most economically controlled people in the world, overnight.
It’s likely that a black-market system would spontaneously be created by US citizens in order to bypass the new government system. A portion of daily trade would occur under the table. It would unquestionably be made illegal, and we can only speculate as to how prevalent it would become: 10% of all transactions? 30%? Anyone’s guess. Certainly, the government would crack down, and penalties might become severe.
Elsewhere in the world, there would be greater freedom, but what would their currencies be? There are many countries that presently use the US dollar as one of their official currencies. After a crash, the greater the link to the US dollar, the greater the loss of economic freedom, although, in most such countries, the government is likely to be less efficient than in the US, which would work in favour of the individual.
Such countries would also have the option of switching from the dollar to another dominant currency. With the euro and dollar gone, that currency might be the Chinese yuan. The difficulty with this possibility is that, presently, the yuan is not in common use on the street.
Adoption of a currency such as the yuan would require a sudden switch in monetary policy, complete with teething problems. However, recent developments amongst the BRICS and others indicate that many countries are already seeing the writing on the wall and are readying themselves for the use of the yuan as an alternate.
A Return to Precious Metals as Currency?
A further possibility is taking place in Mexico today. Mexico is remonetising silver. A one-ounce pure silver Libertad coin will function in parallel to (and be interchangeable with) the existing paper peso. Banks will value the Libertad daily, based upon the silver price. Thus, Mexico will create a legal way for its citizens to protect themselves against devaluation of the peso, whilst creating an internal protection against currency crashes in other countries.
If the Mexican government remains consistent in its plan, it will do more than simply help stabilise Mexico economically; it will serve as an example to other countries that when the Goliaths of the euro and US dollar fall, there is a very sound alternative.
Further, the more countries that follow this policy, the more silver (and for that matter, gold) would become an international currency. It would matter little to a petrol station owner in Canada, Australia, or Chile whether his till was filled with coins marked, “Mexico,” or whether they said “Iceland,” “New Zealand,” or “South Africa.” After all, an ounce of silver is an ounce of silver, no matter what the issuing country is.
As the Great Unravelling proceeds, we would be wise to monitor what happens with the Libertad in Mexico and watch for a similar return to precious metals in other jurisdictions. As this development progresses, we might wish to consider that, whatever jurisdictions are the most forceful in demanding the continued use of doomed paper currencies (or, worse, transferring into electronic currencies), we may choose to store our wealth, no matter how great or small, in a safer jurisdiction. Further, we may choose to reside in a jurisdiction where a currency crisis will be less likely to occur; to live under a government that does not seek to monitor and tax our every economic transaction.
* * *
Editor's note: To help you protect your life savings from a drop in the dollar, and depending on one currency and the whims of one government, we've prepared a free, in-depth video presentation called, "Internationalizing Your Assets."
You'll discover how easy, and essential, it is to move a portion of your savings overseas and protect yourself from rising taxes, capital controls, asset forfeiture, and even predatory lawsuits. Doug Casey and Peter Schiff round out our all-star panel of experts. Click here to watch this insightful webinar, it's completely free.
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Won't happen in my lifetime. The dollar is backed by the full faith and credit of US Citizens.
KING DOLLAR!
It's all about cash flow. The American public are the smartest, strongest and most disciplined people is recorded history. Their institutions are superior to everything that came before them. The author of this article is obviously a communist/terrorist sympathizer.
and handsome. the american people are handsome. the men all have big muscles and the women all look great in bikinis. don't forget that.
American boy, American girl,
Most beautiful people in the world.
Son of a frontier, Indian swirl,
Dancing through the midnight whirl-pool,
Formless. Hope it can continue a little while longer.
I do remember writing a blovel about this. And yup, a lot of us die.
THE SDR is Next
We are not Mexico
Yeah? Bullshit!
http://whatreallyhappened.com/WRHARTICLES/mex.html
At what point do people finally rebel? I mean, if Casey's scenario were to unfold, that is forcing people onto a new and digital currency, is that not a massive red line being crossed? At what point does the average Joe take up arms over the clear and utter destruction of any basic freedoms left? I really wonder. In all reality no one has done jack shit about anything YET, just grumble at the TSA at best...if they can really get away with that type of tyranny, they can get away with anything.
At what point do people finally rebel?
starvation disease finally death in that order. However it will take months for the majority of americans to die from starvation as we have months and years of internal storage .
I like the thesis of the article, but I disagree with one of your points that your conclusion about Europe is based upon - what steps in after a EUR collapse.
We all know the EUR collapse is coming, and I myself am actually quite surprised how long the EUR has endured. I think it has to do with fanatics running the show, but that's just a guess.
What I can promise you is that when it comes Germany will not get caught with its pants down. I guarantee you the most infiltrated government in the world right now by foreign spies is not the US or Russia but Greece'S finance ministry. I guarantee you, that as these people's salaries get cut, slashed, and their pensions destroyed, those who work there, be it a secretary, the mail boy, or Varoufakis' Thai sex slave have sold out to some foreign government or another, be it the French, the Germans, the Americans, the Russians, etc., etc., etc.,
Europe has had its own "reserve" currency before -- it was the DM. IF the DM comes back it will most definitely assume this role almost immediately as everyone is clamoring for them to prevent the destruction of their savings in whatever shithhole Mediterranean currency their government employes. I think a NEURO would be better, but we'll see how that works out.
I think that if the Germans could bring a lot of the countries ordering the Baltic and North Sea into a currency, and the countries bordering the Med got their own currency one would have many of the benefits of the single currency without the "oh fuck maybe the Greeks and the Germans look at money differently" that the continent is experiencing right now.
I'd also be interested to see a Slavic based currency, but this configuration would put the Polish in a really weird spot. The Polish are ethnically Slavic and culturally Slavic, but Religiouslly & Monetarily very western. They are essentially the French of the Slavic world.
yeah i would like to see on what basis youre guaranteeing that most spied country is greece finance ministry because i got an article showing russian spies are at much large in usa . not even during cold war they had such reach .
This article makes the point that I've been saying now for years. Before the USD loses reserve status, we will first see the yen, pound and euro collapse.
The euro is your 18 month warning. I don't know or care what replaces it -- maybe german DM. The US dollar is the flight to safety, UNTIL someone comes out with a stable alternative. Once flight to safety changes to something new, the dollar is on it's last leg.
Your 18 month warning is the time to get into hard assets before you lose any savings held in fiat.
when the belly aches from hunger.
and maybe when they see their children crushed by tanks in the street.
When there is food on the table, there are many problems. When there is no food on the table, there is only one problem.
The four horsemen; war, conquest, famine, and death.
A further possibility is taking place in Mexico today. Mexico is remonetising silver...If the Mexican government remains consistent in its plan, it will do more than simply help stabilise Mexico economically; it will serve as an example to other countries that when the Goliaths of the euro and US dollar fall, there is a very sound alternative.
Lol oh gawd that's good.
Only saturday night could produce a dollar collapse article of such brilliance.
Please read the Death of Money, by Jim Rickards. The SDR has been in the works for years. The US, Europe and China arel all be big players in the new currency. Read the book, its well research and foot noted.
Rickards is nothing but a Mole and not to be trusted.
No one is to be trusted...not even you.
and superheroes! Dont forget the superheroes! Americans are superheroes!
And Americans are the best-smelling people in the world.
And Americans are not as obese as some people are, mainly people in the South Pacific and in Kuwait and Saudi Arabia, who don't have to work, and so they just sit and watch American TV all day.
Blah, blah, blah, blah...USD currency collapse preached forever while people all over the globe can't literally get enough USD.
If anything is in a secular bull market, about to break out to the upside, it's USD.
Short Japanese Yen, Chinese Yuan, Euros, Mexican Pesos, Russian Rubles, Indian Rupees, etc.
The stock & bond markets are going to get insanely volatile no matter what the global central banks do or don't do - and there's going to be a literal flight to USD and all of its forms (e.g. Treasuries).
It's more likely to be phased out or fundamentally changed:
http://debtcrash.report/entry/recent-trends-toward-the-e-dollar
@ Zirpedge. I appears that some folks don't recognize sarcasm. You might want to exclude them from your opinion that the American public is the smartest etc...
"US Institutions" are owned and controlled by a degernerate elte that views 98% of humanity as ants -ready to be squashed and exterminated at their convenience. Do you actually think the US Supreme Court gives a shit about the Constitution? Do you actually believe US presidents like Obama, Clinton, Bush serve the people? Or Congress? There are but a handful of US representatrives who do not deserve to be shot for treason. They are corrupt -they are owned. Do you actually believe the US mainstream media -owned lock, stock and barrell by 6 criminal corporations -actually tell the truth and report real news -rather than reading the script that the Ministry of Truth gives them daily? If you really believe all this (which I believe you know to be untrue) -you are deluded and ignorant. The good news is that you have lots of company - you are part of the ignorant, immoral majority.
So much misplaced anger and resentment can't be good for you. Why do you imagine that "The Elite" want to crush humanity like ants? Maybe if you practiced a positive outlook and surrounded yourself with success, some of it might rub off. Would you be so angry if you lived comfortably? (Frankly, if you are an American citizen I have a hard time imagining that you don't live comfortably. Count your blessings your not a Palestinian or Iranian, I hear those places are terrible to live in)
MBD, is that you? Upvoted for making me giggle. (Either you or the whiskey, but the night is young so I think it's you.) I LIKE being angry. But yeah I have not tried that comfy living thing yet. I will head out to the pub soon and see if I can find me some success to surround and rub off with.
I see what's coming. You don't have enough fingers and toes to count all the countries with "comfortable" people who had their lives destroyed due to the actions of the elites who decided they were ants who needed to be crushed due to the power and greed - and that's just in your lifetime. I just see that what goes around comes around -the elites who have used the USA as their engine that drives globalism - have pretty much sucked us dry. America is now the most hated, despised country in the history of humanity -by "friend" and foe alike- and they have pretty much sucked the lifeblood out of us. Our turn is coming soon -very soon. Live in your fantasy world of ignorance -you will never see what is coming until it is too late.
Some other terrible places to live are Cuba, Venezuela, Russia, China, North Korea, Africa, the entire Muslim world, the entire Buddhist world, and maybe the entire Greek Orthodox and Russian Orthodox world. And wherever there are Mormons and Scientologists and Atheists and Agnostics. And California. The best place to live is Rome. Second best is Jerusalem. Third best are Manhattan, upper Long Island, south Miami Beach. Havana will be good after we get the Mafia back in there, but first we have to decide how to bulldoze Las Vegas?
P.S. Many terrible place to live are also great places to visit. For example, some say the BEST hookers are in Russia, the BEST cigars in Cuba, the BEST coke in Colombia, etc. If you live a boring comfortable life, why not take your vacation in a place that is great to visit and terrible to live in?
"...smartest..." LMAO... that-s Y the sheeple elected the fudgepacker twice...
I love the smell of sarcasm in the morning ;)
Delusions of grandeur.
"King Dollar" Is that Obama's pet name for Reggie's dick?
I admire your optimism.
Unless the negative, detrimental consequences of a "dollar collapse" have an immediate effect upon my lifestyle, I couldn't give a rat's ass.
Bring on the Apocalypse already. This shit is getting old.
and a plethora of aircraft carriers . . .
Yes, 300 or so million when there 6Billion other people on the planet with divergent ideas about what should be the 'currency' the world should us.
Most US citizens have lost faith-and-credit in Congress, the Presidency, and the Supreme Court, i.e., the entire swindling oligarchical USA government, i.e., the USA.
So... WHO SAYS that US citizens "back" the USA dollar with their full faith-and-credit?
Heck, the USA government doesn't even back the USA dollar any more, since the USA government isn't doing anything about corporations, including banks, who are more and more saying, "our corporation does not allow any transactions using actual USA paper dollars; our corporation only allows electronic transactions using no actual money."
One might expect the President to step up and tell the Secretary of the Treasury to take action against such banks, and one might expect Congress to write a new law taking action against such banks, but I have not heard of either doing anything.
The USA might as well go back to using the UK Pound, for all the difference it would make in anything that is happening these days in the USA. In fact, the USA might as well go to the Queen and ask if the 50 States could have 50 seats in Parliament, and the 50 States would then give up their Statehood.
"..most US citizens..." LMAO..... if that were true they wouldn't havr reelected the fudgepacker twice.... "most" are completely oblivious as to what is really going on....'
I agree.
But was Romney any better? (I'll never know.)
Was McCain any better? (I'll never know.)
That's why I keeps saying, "vote in the Primary elections".
Also, I BELIEVE that most US citizens don't vote, or at least, don't vote in most Primary elections, when their vote is most important.
Hope you are enjoying your last few months on earth.
Cancer or syphillis ?
You are a fucking retard. it could happen next week.
I appreciate your sarc.
Freedom.
I'm not going to cry over the remaining three cents......
1) Silver monetization - if it happens in Mexico like the man wrote, and the COMEX continues to be the silver price benchmark. Physical silver will run out of the banks FAST. ...won't work. Only an unrigged MEXICAN silver exchange could realistically set the price of silver in pesos.
2) The man talks about "severe" government penalties on black market commerce after a dollar collapse. It's pretty obvious this man's not an American. After a dollar collapse, there will be many (most) places in America where government attempts to stop "black" market transactions will be met with severe citizen penalties (bird shot to hollow point - you name it). The New Tea Parties will begin.
3) This reads like the Stansberry Research reports from 2011-2012 about the "coming collapse". Those weren't right either.
Nice Try.
Yes the dollar will crash, yes an electronic currency will be implemented by the fuckers, yes a black market barter/trade system will spread (it might even use old greenbacks or gold or silver). If it hits 30 % or so of the real economy, then the people win.
Bring it on. What was that line in Star Wars, "The tighter you grip, the more star sytems/planets slip through your fingers"
Blythe Masters marrying Fart Chilton.
Give my Silver back.
Man, how would everyone else get a hold of Precious Metals at that point... Coin shops, mints ect would sell out over minutes right?
It would be Chaos/Jade Hlem/Mad Max fairly quickly...
Maximum Chaos coming to a city near you....
In case you missed the warning.... http://www.imdb.com/title/tt0116629/ (Alien Invasion has already happened)
Same way most folks get currency -- they hire themselves out to someone who has it.
Sunnyside, I agree. Bring it on. But an ounce of silver is about $16 bucks and we will need smaller denominations to make it work. Maybe those 90% coins in the US or produce smaller coins. I mean 1/16 of an ounce of silver is a pretty small coin. And if the value of silver goes up then we will need even smaller coins.. Maybe gram coins.
I favor Mercury dimes myself.
Dude, mercury is toxic!
Are you so young that you don't know what a Mercury dime even is?
https://en.wikipedia.org/wiki/Mercury_dime
Liberty dime. Non-toxic. Although there is that fasces on the reverse.
Not sure of your perceptions about the fasces. It preceeded fascism and doesn't hold the same stigma. You are right in that the correct name is the Liberty dime. That is one of the reasons I favor it. It was the last of the coins in general circulation that presented the ideal. US coinage used to be works of art that promoted the idea of liberty but now have lower standards and glorify politicians. As such they represent lesser ideas than before.
According to Livy, the lictors were likely an Etruscan tradition, adopted by Rome.[6] The highest magistrate, the dictator, was entitled to twenty-four lictors and fasces, the consul to twelve, the proconsul eleven, the praetor six (two within the pomerium), the propraetor five, and the curule aediles two.
Another part of the symbolism developed in Republican Rome was the inclusion of a single-headed axe in the fasces, with the blade projecting from the bundle. The axe indicated that the magistrate's judicial powers (imperium) included capital punishment.
Mercury the Greek God, not mercury the element.
Even the Mexicans have it figured out.
Busy day at the shooting range today. Lots of serious ordnance.
La Raza Aztlan!
Or something like that.
Amexica WAS a great country once upon a time, but I can see it in their faces, and the way they shake hands....
(Hatred, contempt, revenge, and they are all so quite about it, but I know the real plan..... Tick Tock Crackas...)
Face it folks, this song & video is more real than you'd like to admit, isn't it? https://youtu.be/gNYkwsV6UD0
So funny to see this U.S. centric hopium thinking in that the Euro will collapse first. Jim Willie predicted that before the dollar will vanish (not collapse) it will rise, rise and rise some more before it will be replaced by a Scheiß dollar (a dollar devalued by 50%-75%). This dollar rise is exactly what we are witnessing now while the whole world is busy getting rid or circumventing it.
New Jim Willie: National Default, Dollar Collapse, Low Oil Crushing EconomyP.S. Keep in mind what Jim Willie talked about namely the high dollar blowing up companies and countries around the world and what is talked about on SilverDoctors regarding the reverse repos.
Extra: Johnny Guitar Watson-It's About The Dollar Bill https://www.youtube.com/watch?v=tx9XGvaUy68
It's amazing how many Americans here cling with blind faith to that unsupported central bank debtnote called the USD. 'Full faith and credit' FTW, but the trouble is, other countries do not have much faith left in it and American 'credit' has just about run out. (Everyone is coming the knowledge that the US government cannot even begin paying its debt obligations.) Without other countries' faith there is no World Reserve. The stampede to the AIIB was jaw-dropping to behold. Pretty soon the US and a handful of bankrupt vassals will be the only countries passing this paper around (faster and faster), while the rest of the world trades productive goods amongst each other, facilitated with trading notes. I'm in awe of how many Hedgians cannot seem to even conceive of a note that represents REAL assets, even as they watch the Eurasian trading block forming all around them, without them, and very often without the USD.
What will happen to us when the dollar collapses, depends greatly on which country we are in. Those countries who cling to the USD, will find their purchasing power rapidly dwindling to nothing against the USD, as the derivatives market collapses and the USD is used to discharge more and more debt. Those countries who sensibly turn to currencies that represent real trade or wealth, will be able to join the rest of the world in productivity using their own assets. Their currencies will reflect their productivity and trading wealth; they would have to have trading arrangements and partnerships set up prior to this collapse for their currencies to be seen to have value, though, or have a reserve of assets ready to show that they have wealth to support their own currencies. Those countries that rely entirely on the USD (e.g., the USA) will probably have to introduce a new currency for their populations to use, since the USD will be swept up more and more in the updraft of collapsing derivatives, and those alternative currencies will no doubt be devalued over and over to reflect the rapidly dwindling wealth of that country.
The derivatives market is a black hole that is swallowing value via the USD, which I suspect is why Willie says the dollar will go higher until it vanishes. The USD is being used to discharge debt, so it is in great demand even as it is issued in greater and greater amounts, all being swallowed up by the black hole. It is becoming useless for trade, which is where real wealth is. I suspect the US will have a difficult time not to be taken over by its creditors, and its banking system liquidated.
re: the Silver Doctors reverse repos article -- I found that article to be an extremely loud warning as to something big happening, right now. I suspect the derivatives market is beginning a meltdown. Here is a good podcast interview with Michael Rivero, explaining very clearly the scope of the problem:
https://www.youtube.com/watch?v=yJ9DssINmW4&index=3&list=PLNwUWnJgSq_LsS...
The u.s dollar (True Constitutional Dollar) is doing fine... at about 11-13 FRN
The Federal Reserve Note however not so good... nothing to measure it against as it is just paper.
"The stampede to the AIIB was jaw-dropping to behold"
I kno right? :-)
I would get out my bottle of Lagavulin 16 and raise a toast to king petrodollar. We hardly knew ye.
Well I imagine nothing much will happen to me because I use bitcoin for most of my purchases. Hey wait a minute--the "Bittertad." Something don't sound right.
I still cling to the belief that if you don't hold it, you don't own it. My PMs are in my safe and I can't hold electrons.
Your PM's are full of electrons
I just had a vision of myself going into the local Mobil, seeing it would take $500.00 to fill my tank, and saying to the clerk, "Do you take bitcoins?"
"We'll I don't mind Chopin wood and I don't care if the money's no good" the band
I suppose the answer was supposed to be rhetorical but the actual fact is that in every single currency collapse on record the currency in question is used to the bitter end. After that it has ususally been a neighboring country's.
Since the dollar won't have a surviving neighbor I suppose we will just create a new one.
After that it depands upon the governments ability to keep it healthy. Post Weimar, after the Reichsmank, the Rentenmark lasted a few years at most. My guess is the Euro or even the Yuan might act as a very temporary MoE. The US will definitely at least try to reestablish some form of usable money. If all currencies restructure with gold on the balance sheet, like the Euro has now, we could see some longevity but the value vs real producers will not be much.
Things are different now.
People are blind to the many monetary replacements for fiat currency. We can aspire to trade in bullion. We do not need banks.
However, if the tele-communications companies were smart, they would offer the use of phone cards in a graduated and sly manner with the ultimate intent of totally displacing the entire banking industry as we know it. Time is the new currency. People can trade phone cards alongside cash.
That could have happened at least a decade ago. It can still happen tomorrow.
Praying for a massive EMP. I think living without ZH would be a fair trade considering where all this tech bullshit is taking us.
Yup. Cleanest way out of this is a return to the stone age. Massive die-off. Fucked up, isn't it.
except for all the nuclear power station metldowns.
A lot of people will stop by and say hey man you were right. Can you spare a gram. ..... Of silver.
That's why I'm getting my phone disconnected first.
All these people who tell me I'm worrying for nothing are going to be calling.
The dollar will collapse as soon as we run out of zeros. The cleanest dirty shirt since 1945.
One doesn't run out of zeros. But if zeros get too long to deal with science math has an easy way to talk about it. We will have to make it easier to type power numbers. But yea u just move over to the X10 to the power of
http://en.m.wikipedia.org/wiki/Power_of_10
There is no zero to infinity. One can not reach infinity one can only infinitely attempt to approach infinity. It goes on infinitely attempting to reach infinity.
2000 years ago the apostle John on the island of Patmos wrote the Book of Revelation based upon the images and words Jesus told him. We are seeing this come into place right before our very eyes. Never in the history of man was it feasibly possible to control the buying and selling of everyone until today. Let the scoffers laugh at the prophecies in the "fairy tale book of stories" called the Bible, but this and many other things it foretells is all coming to pass including what the war to end all wars will look like and who will participate. You were warned.
"It also forced all people, great and small, rich and poor, free and slave, to receive a mark on their right hands or on their foreheads, 17so that they could not buy or sell unless they had the mark, which is the name of the beast or the number of its name." - Revelation 13:16-17
I would love to find out who John really was. John wrote beautiful stuff. My favorite is "God is love". But John was born years after Jesus died. John says, over and over, "I was there", but John was not there. (Neither was Luke.) I think a lot of the other books of the Bible and the Talmud may have been written the same way - by people who said they were there, but were not actually there, but were good writers.
Hey, Al Gore said he invented the internet...
I guess you were there, right? You speculation is noted and rejected.
You are a liar.
1st century papyri attest to that fact.
I will join my friends, outside: https://www.youtube.com/watch?v=exuGv3HsV-U
Ok I had to stop reading after this fool author talks about the Chinese Yuan becomes the new reserve currency.. That will never happen !!
I keep telling people this next crash might be so bad that kills confidence in capitalism in the US.
Also, if the USA crashes, China is coming down with us. China will have violent revolution by all the unemployed Chinese workers to throw out the communist party. It will be a very ugly crackdown by the communists. Then watch a massive outflow of foreign money and investments. It will head towards USA and Europe.
Ok I had to stop reading after this fool author talks about the Chinese Yuan becomes the new reserve currency.. That will never happen !!
I keep telling people this next crash might be so bad that kills confidence in capitalism in the US.
Also, if the USA crashes, China is coming down with us. China will have violent revolution by all the unemployed Chinese workers to throw out the communist party. It will be a very ugly crackdown by the communists. Then watch a massive outflow of foreign money and investments. It will head towards USA and Europe.
haha currentl 27cents of every tx dollar the gov recieves is going to pay interest at an averag rate of 2.5. 9 trillion innew debt n 8 years follow traector at the end of hillary he debt wiil b 36 trillion. who thinks rates r going up? taxes will b raised gdpwill fall and ollapse will com. in my lifetime.....
For those of us who aren't dyslexic, you wanna translate that from Eubonics back to English with a spell check? Yeah, I might be a grammar Nazi, but I can't fucking read your comment to even try to make sense of it. Downvoted you on principle.
Chauncey - LMAOOL on ur spot on post... well done...!
Nice article. But fails terribly on many counts.
US dollar collapse will happen when a substantial large group stops using that currency. All you have to do now is explain, exactly who is going to stop using US dollars.
Dont give me theories about currency printing causing inflation blah blah ...
Inflation only happens when people are given more easy money and time to spend it.
Or US pays up all its debt with new printed money. But by all accounts, US is going to bankrupt all others (like EU and China) before it pays a dime. And the fact is clear when you see US spending mroe and more on Military then pay back any debts. 14 trillian and counting.
The end game this time is not currency devaluation. It is debt destruction. Watch out.
?Historically, when a nation’s debt exceeds its ability to repay even the interest, it can be assumed that the currency will collaspe.
"In fiscal 2013, which ended Sept. 30, net interest payments on the debt totaled $222.75 billion, or 6.23% of all federal outlays."
If Sammie takes in 3 trillion a year and borrows half a tril, as long as rates keep going down(negative rate/cashless society), yada, yada looks like he can keep borrowing all the way to 32 tril and still make a payment. That's 20 or so years of free money.
What does the rate have to climb to before 300 bil becomes 3 tril? Without being clever I'd guess 4%. But heck, 1% interest would probably make waves to.
Would also flow through to raise the 'cost' of other debt in the economy. It could then trigger waves of interest rate derivatives.
32 trillion in debt, if we don't have a currency crisis before then, is more like 9 or 10 years away. This is not linear. This is exponential. The US's public debt doubles, on average, every 8 years.
Loooooool
What about when the dollar crashes before the Euro!!!!
I'm sure the degenerates in Washington have you back covered...,,
Doug Casey also talks about Puerto Rico....seems they are having a nice crisis right now. Nothing out of Casey about this lately...
Jeff Thomas and Doug Casey should read Astle's Babylonian Woe, and disabuse themselves that Gold or Silver is a magick panacea.
http://www.jrbooksonline.com/pdf_books/the_babylonian_woe.pdf
Below is an excerpt from Schacts book, Magic of Money. It describes how he led Germany out of the hyperinlfation. Schact also describes the characteristics needed to make a private Credit system work. Private Credit has big problems, mostly interlocking dominoes that can cause contagion. But Schacht carefully lays out the elements need to properly function with credit. The U.S. does not follow his rules. http://www.sovereignmoney.eu/
His advice boils down to keeping the volume of money equal to goods production. Also, short term credit should not be used long term. Long term credit should come from savings that were available in capital markets. Bills of exchange are to only be used to match goods.
Having enough FX was always a concern in order to pay loans denominated in a foreign currency. This required exports of German goods, which were often blocked.
The hyperinflation was due to foreign creditors, mostly dollar loans to Germany, including those loans to municipalities. This credit money was spent on consumption, sometimes buying more foreign goods. This did not help the FX position, and hence German Mark came under pressure. Further pressure then was speculators trying to force Marks down by shorting. The shorting caused a feedback of emergency money printing as new Marks had to come on line as foreigners took out loans to cover their short.
Hyperinflations are almost ALWAYS FX driven. If the U.S. has hyperinflation it will be due to adoption of a different currency overseas, probably SDR's. SDR's are not sovereign, but international money.
The real solution is sovereingmoney not gold or silver. www.sovereingmoney.eu
Schacht:
============This speculation (shorting) was not only hostile to the country's economic interests, it was also stupid. In previous years such speculation had been carried on either with loans which the Reichsbank granted lavishly, or with emergency money which one printed oneself, and then exchanged for Reichsmarks
Now, however, three things had happened. The emergency money had lost its value. It was no longer possible to exchange it for Reichsmarks. The loans formerly easily obtainable from the Reichsbank were no longer granted, and the Rentenmark could not be used abroad. For amongst the stipulations governing the issue of the Rentenmark, there was one which forbade the surrender ofRentenmarks to foreigners. For these reasons the speculators were unable to pay for the Dollars they had bought when payment became due. They were forced to sell the Dollars back, and the Reichsbank was not prepared. to pay more than the official rate of 4.2 billion Marks to the Dollar. The speculators made considerable losses. A bare ten days later the rate of exchange of 4.2 billion fixed by the Reichsbank had re-established itsel£ That measure too was hardly designed to make me more popular. This was the first time that the Reichsbank brought hoarded foreign exchange back into its coffers.
Four months later it was given another chance to achieve this End.
This first success had also a favourable effect on the internal payments situation. Whereas at first small traders had preferred to deal in Rentenmarks they soon grew accustomed to Reichsmarks. Already by December, trade accepted Rentenmarks and Reichsmarks on equal terms. Yet all this still did not add up to the ending of inflation. Everything had to be done to prevent any new inflation in the future. The fact that the Reich government was no longer allowed to raise credits with the central bank contributed to this and the success of this restriction was in large part due to the Reich Finance Minister, Luther, who showed himself just as resolute in the face of pressure as the Reichsbank
Bro Mefos:
Trying to be polite here but.......bollix. Sorry.
You sound like Bill Still or like that Currency report out of IceLand. We just need a committee of angels in charge of the money supply and all will be well. We don't need gold/silver. If we just limit the money supply to grow no faster that GDP it will be fine......
Sigh.....
Have you met any REAL people in your life mefos? To quote Milton Freedman, "Just where are you going to find this group of [ultra honest] angels to run the money supply for you?".
The ENTIRE reason the US constitution mandates the use of gold and silver as money is the founders understood that ALL MEN are dishonest to a degree and cannot be trusted. The reason ALL fiat currencies fail is the temptation to print and emit unlimited amounts of unbacked credit is too much for mere mortals. The solution is simple, gold and silver. Use that which cannot be printed.
We just need to track GDP......yawn. Who calculates GDP? See where it goes?
Just use gold. Mean are dishonest so they need honest money, its that simple.
Squid
Agree partially with you there are no angels. true
but gold or any metals cannot be basis to print money either.
human population and its needs can grow faster than gold supply.
only true method is barter and Debts with clear collateral, without interests but and fixed repayment plan.
Many a great Saints have said the same thing. The Jewish sacred books says the same too. No interest rates among fellow humans. (of course, Goyim is different)
"human population and its needs can grow faster than gold supply."
Human population and its wants can grow faster than gold supply. Fixed it.
Obama and his libtards say not to worry - the economy is booming and the dollar is more than sound.
and the Pedo-publicans shall light the way
Every one of those elected ruling elite turds should have their skin sandpapered off & buried in salt... and for the fudgepacker it should be done 3 or 4 times..
Russia should start a parallel currency along Mexican lines.
But coins made out of Palladium, a One Chervonets coin that contains 10 grams of pure Palladium plus additional base metals for durability.
Daily announcement of the Ruble to/from Chervonets exchange rate based on the free market spot price of Palladium.
The effect would be to encourage wide holding of Palladium by the Russian people (and others) and thereby increase the world spot price for Palladium - a precious metal for which Russia has the biggest mines in the world. 1% charge for exchanging in either direction. 1% is big enough to discourage mindless swapping but small enough to make a blackmarket unprofitable.
It's The American Curse >>> http://wp.me/p4OZ4v-3z
bitcoin was created by the free market and its decentralized and cant be inflated away - scary for central w/banking - a bit like the first computer, no one could possibly imagine the future. bitcoin is more honest than any fiat money system.
I hate salesmen
What is wrong with the analysis is that it appears to assume a seamless transistion from one economic state to the next. Hardly likely as the first stage will be a collapse in lending as the interbank system freezes. This will be followed by a collapse in commerce.
This article is crap on so many levels, surprised ZH even gave it page space.
Does ZH not have any spam filters?
Wow go mexico!
That is what western banksters fear the most, the unability to print their way forth!
I wonder what will happen to the gold and silverprices if the entire world would start using them as currency on daily basis.. Guess we'll have to add up copper to make it work!
Those mexicanos will be damn rich by then.
Hugo Salinas Price one of the driving forces behind silver in Mexico coming back into the monetary fold.
http://www.plata.com.mx/mplata/articulos/articles.asp
Yes, Hugo is a very smart Man, and one of the brightest in Mexico.
But his Math is a little fuzzy:
His own Family Company ELEKTRA after Embracing the Leveraging and Fiat, has been in slow motion melt down. Effectively what is left of his Family Fortune depends on the Bubble continuing.
In fact, this Family is on the path of being one of the First Major Families in Mexico to implode.
The Family Stock has gone from appx. $ 140 a Share to $ 26. today. $ 17 Billion to $ 7 Billion in just a few years.
And much more Downside is ahead.
Perhaps even to one "Libertad".
With regard to Mexico, the Question that ENDS ALL DISCUSSION:
How much Silver would Mexico need to back up the National Debt of some $ 500 Billion, not to mention the Economy itself ?
Should Mexico be our example, or perhaps Iceland?
I suggest we invent a monetary measure based on the Bridge of sighs mecanism.
He or she who sighs most gets the prize of golden gerege to travel free all over the world and sigh on seven continents.
You'll then find sighing nuns and honey buns running wild as you would the roving poet who looks for the pot of gold at the end of each rainbow full of swooning nuns.
What a world that would be; no place for money changers, warmongerers and popes or divine rights kings.
Just sighing nuns aching to find solace in poetic transe. It would be a world of human endeavour that would breathe out what it breathes in : balanced budgets for crazy midgets!
Where do the Oceans go...?
Grow your own pot of peas and row!
stupid article. no one even knows if this will ever happen. people have been talking about this shit for 20 years and i imagine it will be another 20 years from here. hell, even if the dollar did fall no one knows what will happen. who knows, maybe it means free love.
If by free love you mean everybody is going to get fucked, well, yeah, free love.
Currency collapse is inevitable. And its no accident. The outcome is also predictable. Skyrocketing unemployment further reducing tax revenue. Massive cuts in government services. The free shit crowd gets cut off and those that remain at the trough are paid in increasingly worthless fiat. The free shit crowd burns ALL the inner cities to the ground. Riots are out of control. Expect the pissed off blacks to go full retard insane in an out of control race war. Commerce comes to a screaching halt.
And then watch the rest of the world affected. We of a nation have managed to piss off just about the rest of the entire planet. Russia and China will make moves that capitalize on the good ole USA's collapse into chaos. Within the context of that understanding, WW3 is all but a foregone conclusion.
When the fiat currencies fail, the VERY FIRST things that ALL regimes in EVERY country will do is:
1. Confiscate ALL precious metals, including those owned by dealers, ETFs, CEFs, hedge funds, institutions, individuals, etc.
2. Ban the use, sale, trading, bartering of/with precious metals, under severe penalties enforced by the highly-militarized eager-to-comply police forces.
All of you who have been buying and storing precious metals, thinking that they will save you from control from the regime, would be far better off investing in a self-sufficiency farm, equipment, livestock, infrastructure, etc so that you will be able to provide at least your own food.
The regime is NOT going to allow you to escape their control.
They did it before, and they will do it again.
Is your farm at the bottom of a lake ?
When the FSA comes streaming out of the towns and cities after EBT goes dark, where do you think they
will be going ?
Its you that hasn't thought this through.
"where do you think they will be going ?"
I strategically acquired the skills and credentials of a gunsmith and full-spectrum gun dealer.
All the staff at my comprehensive produce and livestock farm are ex-military with combat experience.
The fleeing proletariat parasites will be running into our preplanned booby traps and predesignated machine gun and sniper fire zones.
This is what I did over the years instead of wasting my fiat on worthless useless precious metals, ie shiny lead.
Clearly it is YOU that hasn't thought this through.
I guess it all comes down to where you think this is all headed. If it's a Mad Max world, then you're in great shape. But if mankind and the social fabric continues, commerce will demand an efficient and honest means of condcuting transactions for goods and services.
I agree with you.
But compare:
1. Precious metals are totally useless and COST MONEY to own in overhead for security, transaction costs, etc
vs
2. My farm generates PROFITS because it produces FOOD that people want and will buy or barter for.
Which would you rather be invested in ????
You ever seen the farm scene in the walking dead?
"Could armed U.S. border guards be coming to Union Station?" (Toronto, Canada)
Apparently, this has been in the works for some time. They say pre-clearance, so I assume from this being a Canadian article that it is from Canada to US. Would it be a stretch to think they could be shifted the opposite way US to Canada?
http://www.thestar.com/news/gta/2015/04/19/could-armed-us-border-guards-...
Historically the bad money has driven out the good money, so here the new silver coin will be held by the people whilst they'll use the paper money in daily transactions. This policy already has failure written all over it, precious metails as a currency is an all or nothing affair, it can't be shared with fiat.
I can already tell you what happens to the Silver Libertad- it will rapidly become a Zinc Libertad.
You can also use other currencies and transfer back and forth so it is not a big deal anymore. I prefer bitcoin which I can transfer into dollars or yuan. We have computers now you know and you'd have thunk that the central banks would have learned how to use them by now.
The solution to all problems is the barter trade.
The GDP should be measured in terms of food , gold & minerals produced