Collapse of the US Dollar

THE COLLAPSE OF THE DOLLAR, by Mike Martin

BRIEF: Thousands of modern-day prophets have predicted the down-fall of America. Most have attributed it to God's condemption on the wicked. I do not follow that thinking, but do believe America has broght itself to the brink of destruction, simply by following the internal selfinish of mankind.

HUMAN CHARACTERISTICS

There are basically three types of characteristics in all individuals; pride, selfishness, and compassion. As children, we start as selfish little rug-rats until we get older and learn to share.

If you don’t believe me, watch how a toddler reacts when another kid picks up his toy that he hasn’t touched all day. Some people never grow out of it and constantly demand the world to revolve around them. Most failed marriages are a direct result of selfishness. A lot of us who have more of this trait than others usually end up in our prison system.

Pride is a taught trait and is an excellent motivator for achievement. Without it, people tend to be happy with the status-quo. Those who have an abundance of this become our doctors, lawyers, politicians, and most importantly - our employers.

     But compassion is something that seems to come from within most of mankind and requires little training. It is there in just about all of us; some having more than others. We all want to feel warm and tingly inside when we do something to help others. Don’t you?

     In America, compassion is not limited to one political party or the other. Liberals want to help the down-trod by removing funds from one group and dispersing it to less fortunate folks. Liberals are wonderful people with big hearts. The only people they do not have enormous compassion for are the people they want to take the money from.   Problem is, their effort penalizes those who take the risks and awards those who do not. Still, those who instigate this, “robbing the rich to give to the poor,” end up feeling all warm and tingly inside.

     Conservatives demonstrate compassion a different way.   Most use their own money to give to the down-trod. They also want to help others by rewarding achievement and hard work. The philosophy is that if the people with more pride are not hindered by re-distribution of wealth, ALL will bask in the fruits of the prosperity they create. Some call it the “Trickle Down Effect.”

THE GREAT EXPERIMENT

The original American colonies were a classic experiment in social community productivity. Wealthy investors in Europe saw a chance to recruit farmers and tradesmen, send them to America to work the land, harvest the fruits of their labor, and make high profits for the effort.   Communities and the surrounding land were owned by the investors (or company).   Families would work the land and bring the harvests to the central storage lockers.   They returned to the company farms with enough to get their families through the winter months and to the next spring planting.

     But, something didn’t seem to be working properly in the system.   Each harvest grew smaller and smaller until the investors found they were losing money.   Incentive and lack of pride was the problem.   Mr. Jones and his five sons could produce twice the corn as Mr. Smith and his five daughters. Yet, Mr. Jones received no more than Mr. Smith at the end of the harvest.   It stood to reason that he would not work so hard the next season for the same reward. It was the classic example of why Socialism has never produced a productive society.

     So, The Great Experiment was introduced.   The farms were sold to the families through loans and a fair price was given for the bounty they produced.   The very next harvest proved beyond a shadow of doubt that this experiment in Capitalism was successful and well above expectation.   If Mr. Smith and his five daughters didn’t produce as much as Mr. Jones, they simply didn’t receive as much reward. I call this, “Keeping up with the Jones’."

     The Great Experiment continues and the country has grown into the most powerful society on the planet.   Socialist nations have never been able to compete with the productivity of the USA. No society has maintained a better way of life for the masses than this country.   Foreigners line up every day for the opportunity to immigrate to the place where individuals are rewarded for hard work and ambition.   Because of the prosperity created by The Great Experiment, America’s citizens have become fat and spoiled – a good indication that life is good.

ROBINHOOD SYSTEM: "Rob from the rich and give to the poor"
                                          Government stepped in during the 30’s and introduced another social experiment called Social Security. This took money from those working and gave it to those not working. It was a compassionate idea where politicians learned a powerful lesson. They could buy votes from a block of citizens without spending any of their own money. Since then they have been establishing additional entitlement programs, taking money from productive groups to pass on to the non-productive.   The political party giving more entitlements gets support from those receiving them.   The party restricting the growth of entitlements gets support from those financing the giving.   Problem is, the receivers far outnumber the givers.

     Because we are a nation full of compassionate people, a large sector of our voters now confuse pride with greed.   Having wealth has been vilified by a rapidly growing liberal cult. Those with pride who possessed incentives to better themselves, and took risks to create wealth, are now looked upon as greedy bastards getting rich off the backs of the poor. The majority forgets to thank those greedy bastards for creating our jobs.

     We have been progressively electing more liberal politicians that rob the rich to give to the poor. There is an obvious conspiracy within our mainstream media to encourage such elections and to squelch the views of those who support The Great Experiment. Blame gets cast on the wrong shoulders when the system fails. Rather than lay fault on failed policies created by Socialists, the media shifts it on the Capitalists. A good example is the recent failure of the banking system.

Liberals like Barney Frank mandated that before banks could receive federal dollars, they had to hand out high risk loans to the poor. When it was realized these people were not repaying the loans in massive numbers, the system failed. But the fault was blamed on George Bush and the Republicans while the truth was, and still is, kept from the public by the Mainstream Media. The result was more liberals being elected to office and more social system legislation created. In other words, the very medicine causing the patient to be sick is being increased by the doctor. By the way, Ole' Barney still sits as chairman on the Banking Committee.

I consider myself a history scholar. There is much to learn from it and those who do not are doomed to repeat it. From what I have learned from history and from what I see unveiling before my eyes, there is an impending economic disaster lurking around the corner for America and the world. And it has nothing to do with Biblical predictions, Nostradamus, or the 2012 Mayan Calendar. I am devoting the rest of this document to discuss what I sincerely believe is coming and how good people should prepare for it. I could care less about the bad people. Though I am confident this will happen, I am hoping like hell I am completely and totally wrong!

THINGS COMING SOON

The majority of American compassionate voters have made their voices heard through the election of a self proclaimed Socialist. It did not happen by accident or from missing chads. The majority spoke loudly saying they want to stray from The Great Experiment and move more toward Socialism and the redistribution of wealth.

Barack Obama and his Democrat Congress intend to give the American majority what it wants at record speed. At the time of this writing, President Obama has already begun his plan to rid us of Capitalism and to bring in the new era of government controlled Socialism. He calls it “The Great Change”. Those who differ with my assessment are just kidding themselves. You would have to be blind not to see his scheme unfolding.

Little do most of us know is that our currency has been held together by a thread for many years. It started when Congress allowed more money to be printed than we had gold or silver to back its value in the treasury. Then it did away with the gold standard and based the value of the dollar on the Gross National Product. Countries we do business with, that prosper because of us consuming their goods, control the fate of the American dollar by buying up a lot of the worthless bonds and stuffing them away.

At any time China, Japan, or Germany could call in the notes they are holding, creating an immediate crash in value. Such a move would make the dollar worthless and devastate an already failing American economy.

When Barack Obama and Congress approved the huge Stimulus package, panic broke out amongst those nations holding American debt. They knew to finance the package, America would have more dollars printed than the Gross National Product could support. They knew the burden would fall on them to buy up all the worthless green-backs created for the Stimulus if they wanted to continue selling goods to the USA. And still, there are more dollars to be printed for Obama’s promised projects in The Great Change.

China holds the most dollars. They have already made threats that they cannot continue to support the American dollar if we are going to keep printing it like confetti. China has been vocal in Europe about alternatives such as creating a new international currency or the possibility of switching the planet off the dollar and on to the German Mark. They have already reduced the value of the Yuan (Yen) to make their products more attractive to the international community; leaving American goods less attractive. If the international community drops the dollar as the standard, there will be a sudden dumping of the US bonds held internationally. We won’t even know what hit us until we wake up one morning and find the money in the bank and our 401K’s worthless. I predict this very thing will happen within the second term of Barak Obama (God forbid).

What happens after the collapse of USA currency? Think about it. Whatever money you have will be worthless. No one will take it in exchange for goods and services out of fear it will never gain value again. Remember Confederate money? There may be a bit of warning in the news with China having meetings with Germany and Japan about world commerce. There will be rumors of the dumping of the dollar, but no one will take it seriously here in America. As a whole, we are not educated enough to understand the concept. Here is what to expect once we get the surprising news:

* Day 1 through 7 – The New York Stock Exchange will not open in fear of massive selling of American stocks owned by foreign investors. It will probably remain closed indefinitely, waiting for our government to fix the problem. That fix will come, but not for at least a year.

Americans will hear of the news when they wake up. Some will have received word from friends or relatives who heard about it earlier. Those who didn’t see it coming will spend a good part of the first day trying to assess the situation. Some will still go to work but many will call in sick. By the time the evening news comes on, most will have realized we have become part of the worst economic disaster in world history.

There will be a massive run on food stores by people wanting to stock their shelves in anticipation of events to come. Gun shops will be the second priority. Many merchants will lock doors and attempt to keep precious goods secure until the government can do something to restore a feasible currency. All credit cards will be cancelled within minutes of the news. Paper money will only be good for starting fires. Panic will break out with the hordes of people trying to get supplies. Uncontrollable looting will begin late in the first evening. The police will have no choice but to get out of the way until the military can step in and declare Marshall Law. Stores will be laid to ruin and store owners will make no attempts to restock.

* Day 8 through 14 – Most of the work force will have given up on going to work. They will realize that paycheck won’t buy anything. Men will stay home to protect what possessions they have from being stolen by neighbors and hungry friends. Utility companies will continue to provide services with frequent interruptions. Without adequate staff to man the generators and water treatment plants, skeleton crews will have trouble keeping it all going. Eventually the military will take over the operations, but there will not be enough troops trained in the areas needed. Marshall Law will demand key engineers to return to their posts or face arrest. All military personnel will be recalled from overseas assignments to assist in keeping law and order in the major cities. Civilian law enforcement will hardly exist because lawmen will be doing like everyone else; staying home to protect what is theirs.

- Day 15 through 365 – The military will be in total control of what food and supplies gets to the vast population.   Since food production will have already come to a halt, supplies will mostly come from stored sources.   Rationing will be required and everyone will need more than they are given. Fathers will suffer the agony of hearing their children’s hunger cries and will be tempted to do things beyond belief.

     The compassionate majority will become the selfish majority.   Men who were once supporting Obama’s plans to rob from the rich will be the first to steal from the poor.   Those hording food and fuel will be prime targets.   If not prepared to kill in defense of property, these folks will wind up with nothing and probably end up murdered in their sleep.

     The military will do its best to protect the people. Problem is, there will be a lot more hungry and desperate people than there will be soldiers.   Orders will be given to disarm the society with the excuse of protecting everyone. The man trying to fortify his home against the bad guy will lose his weapons first and become defenseless.   Those hiding weapons and staying mobile will take what they want with little resistance. The military will be completely incapable of stopping them.

     During this time, the President and Congress will have their hands full trying to keep the military functioning and comfort for themselves maintained.   There will be periodic news reports that the government is working on ways to restore an acceptable currency. The President will ask the public to be patient with the promise government will save us all.

Those who thought owning gold would protect them in a failed economy will quickly discover gold is a precious metal and not a currency. If you think I am wrong, try to buy something with gold now. The system requires you to go trade it for paper money first.   Establishing an item as currency requires a system that has been in place for centuries. Few have any idea of the worth of gold or even how to identify its purity.    It is a precious metal with nothing in place to trade it for goods. Private efforts will be made to establish a way to measure and price pieces of gold coins and jewelry for trade, but it will fail. People trading for it will quickly learn that no one else will exchange it for goods and services. A person will be lucky to get a can of beans for a $900 gold piece.

     A barter system will automatically fall into place in a very short time. Smart and good people will ban together out of survival instincts. Sections of neighborhoods will be blockaded and guarded around the clock by the inhabitants.   Canned goods, ammo, and fuel will be used like cash.   People will be holding signs up everywhere saying, “Will work for food.” For once, they will mean it.

     Some will seek rural areas to grow food. They will quickly learn that it takes a long time to harvest food from the time of planting. And finding seeds will be no easy task. While waiting on the crops to mature, they will be inclined to arm themselves and forage through the neighbor’s belongings.   Once crops are easily seen by hungry on-lookers, these farmers will become the new targets.

    The once compassionate and fat American will reduce into a lean and hungry hard-core hater of his fellow man. He will trust no one and will do anything to protect what little he has left. Racial prejudice will be abundant. People will be killed for color regardless of what supplies was gathered from the effort.   All black, all Hispanic, all Asian, and all white gangs will organize and be at war with each other.   Men will join these gangs because of the sheer safety in numbers. The military will be afraid to interfere in gang activities.

     All politicians in office will receive fair blame for the problems faced by the constituency. Though they will try to put blame elsewhere, the Mainstream Media will finally be ignored by the masses.   If the military allows elections to continue, all incumbents up for re-election will be voted out of office.   A new president will be expected to clean up the aftermath of Obama’s Great Change.

     America will not be alone in this.   Even the countries that dumped the American dollar and started this world-wide Depression will not be spared from the havoc of its once content hungry citizens. Countries that are already controlled by the military will see little change. Those people were already hungry and disarmed with little concern what’s happening elsewhere.

- Day 366 – The government will announce that a new currency has been accepted by Congress and all major nations. More than likely, it will replace all currencies. American citizens will be given 1000 credits in this new currency to purchase immediate needs, only if they return to work. The military will remain at their posts for one additional year to insure civilian law enforcers are back in place.

BREAD LINES 1936 It will take years for America to recover from the economic disaster caused by our desire to embrace Socialism. And even then the best we could hope for is a very uncomfortable lifestyle like what the Soviet Union had at its peak. There won’t be a middle class; only an Upper and a Lower. Those folks who once had the pride characteristic will have lost it. Few would be brave enough to risk bettering themselves because someone might want to take it away again. More than likely the new order of things will be under a military dictator who emerged at the worst of the crisis.

And, I hope to God I am wrong!

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PREPARING FOR DOOMSDAY, by Mike Martin

BRIEF: Things to have ready when the day of accountability comes

The science of human nature is a fun thing to study. There are hungry people all over the world who are meek and do not go around stealing from others in the society they live in. So what makes me think hungry Americans will do anything differently? The difference is, the first bunch have had several generations living with poverty. Americans have had it good for many generations. Even during the Great Depression, few went hungry and we only experienced eighteen percent unemployment at its worst. We are a society that takes our very food system for granted. Most of us have no earthly idea how food gets from its source to the market. We just know when we want it we go down the block and buy it with a credit card. When that supply comes to an abrupt halt there will be a lot of fat, selfish, ignorant, spoiled, and hungry individuals out foraging for something to eat. It won't take long for the liberals to learn that the government they had so much faith in will not provide for them. Since most have never been hungry their entire lives, a new breed of human will emerge on the street taking what he can get.

If you do not believe something is going to happen in the near future, just try to buy guns and ammunition these days. The shelves stay empty since Barack Obama and his liberal Congress took over. People inherently know what to stock up on first if disaster is inevitable. But, just having guns is not enough. You must know how to use them and be prepared to kill to keep what is yours.

The day is coming when we will all be tested. It is not just your neighbor you will worry about. Officials wearing badges and guns will be coming to your home to take your things in the name of the law. You may be forced to kill one coming around claiming he is just doing his job. Your wife and children will have to be taught also. Someone has to remain awake and on guard at all times when this disaster hits our economy.

The first thing to get ready for the economic collapse is to start forgetting about saving money for your retirement. It will eventually be worthless. Spend what you have available now preparing. Drop all unnecessary expenses for the time being such as life insurance, retirement contributions, or collision insurance. When the collapse comes, you won't have any of that anyway. Keep paying the mortgage and debts with collateral attached. You do not want things repossessed that you need. Streamline what you are presently spending and use the money to buy things now that you will need in the bad times. Take out an equity loan on your house. If I am wrong and the country returns to its Capitalist values, then go back and spend your money like before. Believe me, you will thank me every day if what I predict comes true. If I am wrong, you can always use up what you have accumulated or sell it. If you didn’t take my advice and I was right, you will be sitting on a lot of worthless money and little to eat. Just don't come around to my house.

MINIMAL PROTECTION: I suggest acquiring several twelve gauge shotguns and double ought buckshot ammo. A high power rifle with scope will be needed for picking off those besieging your castle. Pistols are only good when you are already too close to your enemy. They are also good to hide around with ammo in case you find yourself disarmed and on the run. Automatics with multiple extended clips will save you in an out-in-the-open fight if you are a good shot. I prefer a sawed-off automatic shotgun for such events with belts modified to strap multiple reloads to your body. I also recommend getting bullet-proof vests for all the family.

FOOD: without saying, is the second priority. Many will just do the first thing, because with guns you can take food from those without them. There is no such thing as storing too much food; however, what you horde must have a shelf-life of at least a year or more. You should keep in mind that you are not just hording things for your group to eat during the bad times, but also accumulating assets for barter. At the worst time, a can of Hormel Chile could trade for shotgun shells or gas for your generator. Small canned goods are your best bet. Beans, chili, stews, Ravioli, etc, have long shelf lives and turn into easy to carry barter items. Flour, sugar, powder milk, yeasts, etc. are good things to have, but will have to be kept in air-tight containers to prolong shelf life. Pancake mixes are a waste of space and could end up deadly. The premixed yeasts can turn into mold and cause some severe effects. Frozen foods are out of the question because you will not have reliable electricity to keep the freezer on. Cheap bottled wines, liquor, and canned beer, will make for excellent barter. You will not want to drink any yourself because you will need all your wits to survive. Cheap canned dog food can be eaten also by humans. You may not want to eat it yourself, but your starving neighbor may trade you a canister of propane for a case of dog food.

SECURE STORAGE: Some differ with me on this next priority. I say a secure dry cool storage area is a top need. You must be able to protect your horde at all times and it should be large enough to keep a bunch of stuff on hand. If you have other properties, it would be a good idea to bury or hide smaller quantities of supplies around. If your main stash gets taken, you will have others to fall back on. Family members should all know where each stash is hidden in case one needs to bargain for his/her freedom. Hiding extra weapons and ammunition off-site is probably a good idea too. If your castle is invaded and you are fortunate enough to survive, it will be nice to know you can start over.

FUEL: Gasoline breaks down with age. It eventually becomes varnish and is useless. Diesel can be stored indefinitely and can also be used in place of coal oil. Either will be in extreme demand. The more you have, the more you can use for barter. Twenty pound propane tanks are easy to store and have a long shelf life. People will be doing all their cooking on yard gas grills and propane will be in short supply.

        BACKUP ELECTRICITY:                 A diesel generator is better to have than one running on gasoline. Extra spark plugs, oil, oil filters, etc… should be kept also. You will need a generator to power security lighting outside your home and pumps to move potable and irrigation water. The bad guys are not going to attempt to rob you in broad daylight, especially if they know you are armed. They will try to invade at the cover of darkness and slit your throat while sleeping.   But, the bad thing about night lights is that they will attract unwanted visitors.

     LAST STAND:   A safe room in your home will be a tremendous safety net for your family if you are invaded. It should be impenetrable with the means to defend from within.   With luck, either you kill the invader or he may give up and leave. With bad luck, he may burn your house down around you.

     STORE LONG-LIFE BATTERIES: Battery operated radios, walky-talkies, and anything to keep you in touch with the outside world will be needed.   Cell phones will be useless.   TV may remain on the air, but probably not through cable or satellite. A small battery operated TV may keep you better informed with what’s going on in Washington DC.   I recommend storing Duracell batteries over any other brands because of their long shelf life.   Still, you will have to replace your stock at least once a year.   Rechargables are OK if you have a means to keep them charged once we lose the power grid.

MEDICAL SUPPLIES: I recommend keeping a lot of emergency medical supplies on hand. Having access to doctors is not going to be as common as it is now. How-To medical pamphlets on sewing a wound, sterilizing equipment, removing slugs, etc will be a big help along with the instruments to do those things.   For years I have not been throwing out old medicines, especially pain killers.   Over-the-counter drugs like Excedrin PM and Ibuprofen work for pain relief.   Pills exposed to air should be vacuumed sealed and labeled before you store them. They will last almost forever if not exposed to the elements.

     SEEDS: Stock high yielding seeds like tomatoes, lettuce, spinach, and corn (if you intend to raise animals). Try to stay away from hybrids because they have a poor shelf-life and the seeds from their fruit tend to be impotent.   The internet is full of sites where you can purchase non-hybrid seeds that can be stored forever in a dry place.

     ALTERNATE FORTRESS: The time may come when you will have to relocate yourself and family to a more secure place. As time progresses in the chaos, people like yourself will organize and set up fortified communes. If you are lucky, you may be invited to join one. Problem is getting there.   The military will be watching the roads and disarming everyone they find carrying weapons. You won’t want to lose yours. Traveling by foot while dragging your belongings will make you easy prey. Possessing off-road dirt motorcycles or 4-wheelers will make things a bit easier. They will require little precious fuel and will take you through paths other vehicles can’t travel. You will also need containers that will strap to the motorcycles for transporting your stash.

SURVIVAL DROPS: Your alternate fortress should be far from the nearest city and easy to defend. Set up a back-roads route and bury several survival kits along the path because you may be robbed along the way. Only close people should know where to find the map showing the drop locations. In each site you should have food, water, and weapons to replace whatever you loose along the way. The canisters can be simple five gallon buckets with water-tight lids. Check up on them at least once a year to replace anything spoiled. Most bottled water is good for a year.

SURVIVAL IN NUMBERS: Start seeking others you can trust who believe as you do. Hopefully, the group can secure a property away from the big cities. Work out a plan to join forces when the time comes and work together in advance to prepare the location. Make sure everyone knows to do it quietly and not to involve people outside the group. Delegate responsibilities and have regular meetings at your fortress location. Limit the number of dependants each can have join after doomsday comes. Think about it: We all have hundreds of relatives and could probably count ten close ones, including those on your spouse's side. If you have three others in your group and each brought in all the close relatives, you will have almost fifty people to protect and feed. If your group can support that many for at least a year, then go for it. If not, you will have to agree to a limit in advance and stay with it. Expect to see a lot of hungry relatives attempt to join you once they get desperate. Unless they bring a lot to the table with them, you will have no choice but to turn them away. Your group worked and invested together to prepar. Unless each agrees unamiously to allow others in, you dare not do otherwise or your organization will fall apart.

CONSLUSION:

Regardless of what happens politically in the short term, I believe the way things are going now that we have about five years left before the complete collapse of the American dollar takes place. It may happen gradually, but I personally believe we will wake up one morning and find our money will not purchase anything. Hopefully, I have at least four more years to prepare at my present income while keeping a job in a big city, but have had to set the following plan based on conditions:

If Barak Obama is re-elected in 2012 I will sell everything I can do without, including home and properties, and use the money to better fortify my alternate fortress. If the House stays as it is and the Senate does not change leadership, I'll figure we have at least a year at most before the currency collapse. I will probably lose my job within that same year anyway. If the Senate changes leadership, we may have two years left because Obama will keep circumventing Congress with his socialist agenda. But, if Obama is taken out (we pray), we just may make it another five to six years before all our existing entitlements bankrupt the country.

Remember these tips if nothing else: Money will be worthless and you will have to trade for items you need. No one will want your Rolex or Mercedes. Forget gold if you were one of those foolish enought to buy it and not canned foods instead. No one will know how to measure its worth or even how to trade it. If you don’t prepare anything else, stock plenty of food so it can be traded later for things you didn’t get.

Many Americans, like my sweet wife, have trouble believing the comfortable and safe life we have been enjoying for generations will come to a sudden delay. She, like many others, has been taught to trust in government and believes politicians will protect us from bad times. People like her do not study history or pay attention to what our leaders are doing behind the scenes. Most Americans have never understood that the prosperity we have been enjoying for over two hundred years has never been a result of something the government did. We’ve enjoyed prosperity despite government attempts to alter The Great Experiment. Our comfortable life is strictly due to the abundance of successful citizens with pride who create wealth that passes on to us through jobs. Mess with that as Obama is doing now, dump gazillions of worthless dollars on a fragile market, reward failure and penalize productivity through entitlements, and watch what little the politicians can do to stop economic collapse they created. Face it, an economy revolves around currency. Without value, it is just paper and precious metal you can't eat. Without currency, an economy cannot function. But through barter, you stand a better chance of survival.

If my predictions come true, please do not come knocking on my door asking that I show compassion for your starving family. My compassion stops here with this friendly advice to prepare yourself. Ignore it at your own risk. That is the best thing about choice in this great country.