All rights reserved by Colonel Flick
That’s all politicians around the world can do these days is show us their rear ends and the fact that by definition politicians do not have as a motive in their hearts to do good things for the people. They are not built that way. Their impurity of motive makes them sitting ducks for the rich and powerful so they become corrupted. If we look across the landscape that is to come over the next few decades we will understand the measure of tragedy our current governing class has rendered.
The entire world is wondering if there will be cataclysmic consequences of S&P’s downgrade, given that U.S. sovereign credit is bedrock to the world financial system. That bedrock is cracking with hope lost for desperately needed growth to fuel the engines that could pay off debt. The burden of global growth is a weight no country or people can now muster so its end game time. It’s all over for the dream of growth; it is not coming from anywhere or anyone. Everything has been swallowed or soon will be by the many headed monster of debt.
Many Americans are wondering whether they are in for a repeat of the financial crisis of 2008 while others are anticipating something a whole lot worse. What we are facing is the final realization that our system has been insane. What is being resisted in the mainstream is the realization that the entire system is bankrupt because they have to hide this fact to the last moment or face an immediate bank run as everyone rushes to get their money.
Some people hope that with our final fall from debt fed illusions we will collectively find some sanity. Others fear that with the fall and collapse into anarchy a one world fascist government will end up forcing itself down our collective throats.
We woke to the headlines on Monday, “Ominous signs that the slide on Wall Street is just beginning” and to the horrific pictures from England. As the financial world collapses the heart of modern civilization centered in London is burning. London is at the heart of modern civilization and banking and if we see it degenerating into chaos and anarchy on the streets what can we expect in the rest of the world?
The intro to CBS News’ Face the Nation asked, “As Americans watch a broken government, can Washington avoid economic catastrophe?”
The market has been swinging violently but the direction is heavily down as fear and the underlying feeling that the whole system is a cruel hoax about to be uncovered. So here we are again back at the edge of the abyss wondering what is going to come next. The question for investors and everyone else at the moment is do we fall into the abyss right now or back away for a few weeks or months before the great fall happens?
“The United States is firmly on the path of becoming the most massive economic and financial failure in the history of mankind. The credit downgrade is a shot across the bow, not a political or ideological ploy. Will the current American ruling class and the average American citizen glued to the television begin to wake up and understand that he or she is living a tragic reality show in which everyone and everyone’s progeny will bear the burden of a dramatically reduced standard of living and a country at the mercy of others?” wrote Steve McCann.
The economy is at stall speed and everyone knows that the financial system will not stand another strong downdraft of economic activity. Jim Rogers says, “You think the problems are bad now? You wait until we don’t have any more credit. You wait until the currency is collapsing. You wait until interest rates are going through the roof and inflation is going through the roof. It’s not going to be a pretty picture. There will be social unrest.”
James Turk says, “There is a financial Katrina coming and you must not rely upon government promises, you must make your own preparations for your friends and your families.” The world is closer to an economic crash than at any time since the outbreak of the financial crisis. It is a good time to watch your back and take some money out of the bank before there is a bank run. Already going to the bank can bring some surprises if you have any considerable deposits.
“My friend went to the bank Friday to withdraw her savings account and was given a battle by the bank people who didn’t want to release it to her, said she had to show them proof of what she was going to use it for and/or proof of purchase, said they didn’t have enough money on hand to just give her all she asked for, which was $15000. She stood firm and told them she wasn’t leaving without every penny of her money and finally got it all. Then I heard on the news that they are thinking of placing limits on bank withdrawals as it seems the run for the money is starting!!” wrote one of my readers.
“The West hasn’t been this weak since World War II, and never before has a crisis paralyzed Europe, America and Japan at the same time. The problems of the leading industrial nations aren’t just sapping the political influence of the so-called Free World, they are also threatening the global economy,” writes Spiegel International.
The English are Rampaging on the Streets
The ground is giving way beneath our feet as our financial system threatens us with a full meltdown. Insane people, institutions and governments have brought us to the precipice so what do we expect but the burning of Rome? In this case it will not be the city that burns but the paper and digital universes of money. When the house of cards goes up in flames it will be the world and most people in it that will crash hard.
What Would Happen in a USD Collapse?
The Coming Depression Editorial Staff
“It would be a dark time worldwide.”
- The U.S. and Western economies would all face insolvency simultaneously, with the U.S. first in line.
- The entire Western industrial/consumer/credit economy would fall apart so fast it would make your head spin. The supply chain would stop and stores would empty quickly.
- The USD would fall over 50% in one week’s time and then temporarily stabilize before its final last gasp…
- Worldwide currency panic would set in, paralyzing what’s left of the world economy, which means the ‘emerging markets’ would stop dead too.
- China would have a revolution, or go into military mode, which would be even worse.
- A one-world currency would be demanded and implemented.
- Asia would fare fare horribly… If Western consumerism goes away, then the entire foundation of the Asia macro economy would instantly crash and stop cold. Do you remember what happened that fateful last quarter of 2008, after the Lehman debacle, and the world banking system almost collapsed en masse? Exports from China and Japan for example collapsed over 30%! Don’t think economic demand cannot stop on a dime, because we already had one very scary case of this in 2008. So, all the pundits aside, Asia would get killed too economically. The big question is, could they successfully adapt to a new economic paradigm before they had their own revolutions? I do not think so.
“We’re going into a never-ending depression unless we repudiate the debt, which never should have been extended in the first place.”
What does John Rubino say about the situation? “Over the past three decades, the doses of debt have grown to near-fatal levels, leaving only the question of timing: when do we realize that not only have we been conned but that the con is over, and abandon, perhaps violently, the existing system? Today could easily be that day. Interest rates are as low as they can go, debt is surreally high, and life is still getting worse.”