Why those who think that geopolitics and the demise of the Dollar are not their problem will be hit the hardest

For the first time in history, the world is waking up to the fact that central banks form a secret government that runs the majority of the world through collusion of coercion.  When times are good, most people do not care who is in control as long as their own needs and interests are met.  What is meant by “good” to most people is having food to eat and relative security. If there are disruptions in the supply of food and water, the result will be unrest and instability.
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Many reading this have probably been told that the price of food is due to flooding, droughts, the growth of wealth in developing nations, or any number of misdirections that would place the blame where it squarely should lay – the Federal Reserve.  While some conditions such as crop damage and a growing population will affect the cost of food, there is still more than enough food to easily feed the current population at a cost, at worst, equal to the rate of inflation.  Historically farmers have over-produced, even in recent years, to a degree that causes large amounts of grain to sit rotting in warehouses or silos.  Many farmers are even paid not to grow certain crops in order to keep the prices artificially high.  So the current parabolic rise in the price of all commodities has little to do with the actual supply and demand.  The culprit for the rising prices is the money printing of the Federal Reserve at the rate of $75 billion per month.

When the government needs money, it issues Treasuries.  In normal economic conditions, these debt instruments are readily bought by investors as a form of “safe haven” for their money, especially during uncertain times.  But now few, if any, private investors are buying Treasuries.  Why?  Because most people are waking up to the reality that there is currently no collateral offered by the US government for their T-bills.  Would you loan 25% of your life savings/net worth of, let’s say $100,000 (including the equity in your home), without some form of collateral that you would receive in the event that this person could not pay you back?  Unless you don’t care if you lose your life savings, most people would demand collateral and it is fair (as the lender) to offer some form of assurance on the debt.  So now the US government has turned to the private Federal Reserve bank to issue the credit necessary to purchase this debt without collateral.  This monetization of the debt is essentially flooding the world economy with Dollars with each passing month.  As the amount of Dollars floating around the world increases, the value of the Dollar decreases.  The result is rising prices where holders of Dollars are no longer able to buy the quantities of goods and services that they could buy before.

So what is the national debt?  It is $14 trillion?  In your dreams.  It is much worse.  The debt is based on both money owed to Social Security as well as T-bills held by both domestic and foreign entities.  But the true number of debt is much higher.  $14 trillion is what is actually accounted for!  There are several tens of trillions or more that have still not been accounted for due to obfuscation by the government.  If there are any doubts to this, look at Donald Rumsfeld’s testimony of $2.3 trillion that is “missing” on September 10th, 2001 in front of Congress on Youtube.  Then September 11th hit and that testimony was forgotten.  But not only that missing money has still yet to be accounted for but the records of those tracing it were lost forever when the Pentagon was “hit” by a plane.  But make no mistake about it, someone (government or individual) holds a portion of that $2.3 trillion and sooner or later their T-bills will be cashed in and the interest is being paid to this day.  The significance of this is that once it is realized how great is the true debt, the money collected through taxes will not even pay for the interest on the debt, let alone the principal.  This is the “asteroid headed for Earth” analogy and deductive reasoning will explain why the government is as forthcoming as it is with respect to how the unemployment rate is “below” 9% with more people than ever unemployed.

Some people may still not understand why this matters, especially those with a job or in school expecting a job when they graduate.  If you have traveled the world, you may have happened upon some countries where the money is denominated in 500, 1000, or even as much as 1,000,000 on their bills.  Italy was one example that I saw (Lira) before they transitioned to the Euro.  In other words, at some point, Italy saw a time that their currency was greatly devalued.  By the time it stabilized, that “wealthy” person with 20 million Lira in the bank now had the equivalent of about $20.  This was due to the dilution of the money via printing by the bank.  So you might think, “But I’m not a millionaire, why should I care?”  The answer is simple:  Imagine that you are making $50,000 in the USA.  You might be barely getting by on that amount.  Now imagine that it costs $50 if you want a value meal at Wendy’s.  Imagine that this happens in a span of a few weeks.  Now imagine that you are still being paid $50,000 per year while it costs $50 for that value meal.  What do you think will happen to the cost of everything else?  How far do you think that you think that your $50,000 will go?  If you guessed that your “average” $50,000 salary will be at parity with the developing world at that point, you’d be correct.  But let’s go to some further illustration to why you should be concerned.

What we hear in the mainstream media, both political parties, and the GAO (General Accounting Office) is that the US economy is in the midst of a “recovery”.  The most important thing to realize is that this so-called recovery is based on the premise that oil is less than $70 per barrel.  This is even more important since basically everything in the US economy is based on the cost of oil.  If one was to look at any oil production chart, the world hit the point of “peak oil” sometime around 2007.  While this does not mean that the world is necessarily running out of oil, it does mean that the world is running out of cheap oil.  In other words while there is plenty of oil shale, tar sands, and natural gas for many years to come, the cost of producing those usable fuel out of those sources is both expensive and slow, relative to light sweet crude.  The conclusion that a US recovery is impossible if considering the cost of oil vs. the GAO projections.  Therefore any GDP required for the tax base of said “recovery” is also impossible in the long term, short of the discovery of fusion.

So whenever there is unrest, again, this is due to the Federal Reserve printing money and devaluating the Dollar.  Since commodities are traded in Dollars worldwide, the dilution of the Dollar is resulting in widespread hunger in hundreds of millions of people who were otherwise on the borderline of absolute poverty.  The immediate reactions of most governments is to devalue their own currency.  But due to the rising power and commodity influence of Russia, China, and Brazil, there are increasing calls for the elimination of the Dollar as the “world reserve currency”.  To ditch the Dollar as the World Reserve Currency will also stabilize dozens of nations who are facing revolution due to the rise in currency prices.

Most Americans would probably think, “Who cares?”  The reality is that the only thing that the USA exports in significant quantities anymore is the Dollar.  Rather than go into all of the economic how’s and why’s, know this:  If the Dollar loses its World Reserve Currency status, everything will double (best case) or triple in price.  Gasoline will go from $3 to $8 per gallon.  Food prices will likely double across the board.  This will hurt the average person far more than it will hurt the top 5%.  But long term this will lower the standard of living of everyone, even the top 5%.

So what can you do?  Stop thinking in terms of left vs. right.  Recognize that the Federal Reserve is not working in your best interests and do not hold any savings in Dollars.  Pay off your debts, especially your house or car.  Organize on the local level with the goal of declaring sovereignty from Washington DC.  The debts that the US government holds is not your responsibility.  Start looking at this now rather than when it is too late.  Those who say that “it cannot happen here” obviously do not know their history.  This same scenario has repeated itself several times already.


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