We have obviously crossed the threshold folks, things are falling apart by the day and the game of Kick the Can has at long last gone as far as it can. The rest of the World no longer has a choice, the United States is no longer the big bully on the playground who won WWII and their fingers are no longer so firmly around the throat of the planet. The long lunatic nightmare of Bernanke monetary ponzi schemes cannot continue.
It will be interesting to see what their plan is to try and switch the U.S. (and possibly the World) to a new currency system. My take?
There will be an immediate bank holiday across the board, stopping all transactions of any kind in all avenues of banking and stock markets. This will likely happen on a Friday afternoon, and there will be no warning. A temporary state of martial law will be instituted, in which people are told to basically stay at home as though they are taking a sudden ‘cheap holiday’ and things like trucking of supplies of normal groceries and the like will be the only thing still going on under strict military rules, keeping all emergency supplies of diesel available to those lines of credit used for that infrastructure. Military escorts of supply convoys will be the only thing moving on U.S. highways for perhaps several weeks until they restart the engine under the new rules. Police in all cities will be given total freedom to ‘shoot first, ask questions later’ for any deviation from total movement restriction of citizens. Examples will be made, and the media will carpet bomb the public with this message.
The U.S. will lock down the dollar (both digital and paper) to a complicated SDR basket of currencies around the World, the Canadian dollar will figure heavily in this. This will obviously include devaluation across the board of many world currencies, and some of the currencies (like our Canadian dollar) will also be strictly controlled during this time (wanna know why we care so much? 90% of our economy is still directly tied to you Yanks) The U.N. and IMF will be token heads of an emergency council that all countries of the World will have no choice but to agree to (barring a few examples in the Middle East and North Korea, Cuba, a few South American countries, etc).
Debt restructuring will be performed from top to bottom. The 1.4 Quadrillion derivatives bubble will pop like the veritable tree falling in the forest that no-one hears. The wage structure of the entire United States will be chopped off at the knees when jobs are ‘started’ again, and people are going to learn rather bluntly that their standard of living is going to drop by a large margin. Even when financial markets are loosened on the leash enough to make it look like things are ‘running’, foodstuffs and all energy (gas, diesel, natural gas, propane, etc) will be price controlled from that point on. This could be seen as an enforced Socialist military junta rule, which it is, but honestly there really is no choice.
Production of goods will continue by force if necessary, people will clamor to the new low wage positions because they won’t have a choice. It is either that or starve.
Inner cities could collapse entirely during the transition period, the military in all forms will setup blockades around zones in these areas and food rations will be handed over in exchange for firearms and ammunition. It doesn’t even bear mentioning the horrors that await some areas during this period. Within two weeks of supply infrastructure collapse things like rape, murder, and cannibalism will be commonplace. People are exactly three square meals away from becoming savages, it is as simple as that. In San Fransisco there are 17,500 people per square mile, I won’t go into lurid details but let’s just say there will be shoot-outs in the local 7/11 for the last bag of Doritos a lot sooner than most people think.
Slowly but surely ‘zones’ will form, protected areas where people are moved (perhaps forcibly) and live under what seems like a fairly free system but is obviously locked down military camps. Again, is this a bad thing? They aren’t necessarily trying to clamp down control, they have known for many decades the collapse would happen under a fiat currency system and have planned accordingly.
There will be a lot of hardship, a lot of deaths, in a lot of areas of the World and United States things will collapse into ‘One Second After’ conditions where attrition will reduce population drastically over the next several years. The media will cover some of this, but not the true horrors, and it goes without saying that ‘the revolution will not be televised’. This means that the Internet will no longer be free, and when and if an ‘Internet’ is brought back up and running it will be the government sanctioned AOL style system with no freedom of any kind. There will be no anonymous communication, any Internet Service Providers will be under total government control and it will be technically impossible to transmit encrypted packets. As a result communication can be controlled, and when it gets to that point a smattering of free Ham Radio will be the only true source of freedom.
There will be pockets of resistance, even entire States that balk at the new way of things, at first they will be treated with hands off respect but in time they will be forced with simple supply blockades to conform to the new rules. They have the technology, and the patience, and the means to cut off outside supply. There will obviously be a lot of ‘free people’ out there, entire communities where they are self sufficient in every way – but these will be small Colonial technology areas that are visited by smiling officials on a regular basis to let them know the limitations of such existence.
I obviously can’t say exactly when this banking holiday will happen, but I think it is safe to say it is going to happen sometime in the next 18 months for sure, and possibly a LOT sooner than that. They simply cannot keep pretending things are okay for much longer. Anyone who isn’t a Prepper yet, there is still time as long as the stores are open and your debit/credit card still works. Lay low, don’t brag about supplies, and stockpile simple foodstuffs for the time when your family needs to hunker down.
What do you guys think? I have spent my life as an Eschatological High Priest, studying and preparing for the inevitable Crash of our soft Western Civilization. We have lived the easiest life of any Humans in our History, but that ride is about to come grinding to a halt. How do you think the United States (and the rest of the World) will handle the ‘adjustment’ that is in the mail?