-128 votes

5 reasons why Gold will unfortunately be worthless AFTER the collapse of the dollar.

I predict Gold and Silver will have no value after the dollar collapse for 5 main reasons probably nobody has ever heard of. Yes we all know precious metal prices will skyrocket from now until the dollar collapses but afterwards it will be as worthless as a paper weight. In history it used to be true that gold would regain itself as currency again after a paper currency collapsed but it wont work this time and I'll explain the reasons why.

(Reason 1)
With no currency, with what are you gonna sell your gold? The amount you paid for your gold before the collapse will by a long shot not equal the goods and services value, you'll have to trade it for after the collapse and no one will want it because it wont really serve any purpose during this time. Meaning for example most people will be forced to trade $1000 worth of gold for $5 worth of food. Well people might argue "You can use gold for electronics and other things." I say who's gonna work at the electrical plants without a paycheck? The only electricity being made are survivalists who own windmills in their back yard and seriously how many of you have those?

(Reason 2)
People will argue, gold will have to return to currency. I argue, who's gonna mint all those gold pieces for free? Remember when the currency collapses nobody is getting paid anymore so why would US mint workers waste their time working for free? Everybody is gonna be busy guarding their food supply. Food will be the new currency. People who are not self sufficent will end up having to help people who are in order to survive.

(Reason 3)
The government wont create a new currency. Everybody thinks the Illuminati will introduce the "Amero" at this time. Those people who are the Illuminati network won't do anything without getting paid. They are going to be hiding in their Apocolyspe bunkers that they paid billions of dollars to reserve a room in the mountains. Once the dollar collapses everything and I mean everything will shut down. The gasoline will dry up in 2-3 days, food will dry up quick, nobody will work a job including the goverment workers. In these conditions the last thing on people's minds will be fancy jewelry or precious metals. The first thing will be how can they eat another meal and live another day. Everyday, people will get shot/killed for stealing food. You can't eat gold you know.

(Reason 4)
The dollar is currently the worlds reserve currency. The reason in history for thousands of years that gold always returned it's value after a paper money collapse is because it happened in a time when world reserve currencys didn't exist. What this means is formerly when one country's currency died, another would just take over. However in this case, the currency currently dieing is the currency that all other countrys currencys are backed upon. Meaning if the dollar dies here, it takes down every countries currency that based their own currency's buying power or value upon the dollar.

(Reason 5)
Manufacturing and mass production stops. With nobody working because their paycheck is now just worthless paper, gold will cease to have a material or useful purpose. I mean seriously, what are we gonna use it for?

I would suggest this. Buy gold for now and hang onto it for about 6 months. Then immediatley sell it just before the dollar completely crashes when you notice inflation going through the roof and buy as much seeds and non parishable foods items as you can and bury it in containers in the ground to hide it. Remember people will be getting killed over food so you'll be able to get anyone to work for you in payment for food. Nobody will have any reason to want gold after the collapse. I predict when it happens this may very well be the end of money all together and the beginning of what Gene Roddenbury tried to portray when the character Captain Picard said "There was a time in history when the world gave up on money and decided to all work together for the common good." Those who survive who be forced to live by this method. Meaning we will all become farmers and fisherman to feed our communities.




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Trust and obey.

Trust and obey.

-
"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi

SteveMT's picture

You want us to trust and obey you! No way.

That is your interpretation, not mine.

Oh, puleease!

You know that's not what I'm saying.

-
"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi

For one who speaks so highly

For one who speaks so highly (and authoritatively) of providence and faith in god- at least in this thread- I find it ironic in the extreme that The Main Man doesn't even make the list of quotables in your own signature.

All one needs to take from

All one needs to take from your delusional ranting is that you appeal to Keynes- literally- to make your case ("In the long run, we're all dead.")

I believe you're looking for Mitt Romney's forum (is there such a thing?)

Wow

You really have no idea?

"Hoarding cash is obstructing the flow of life itself" You sound very much like a keynesian there, - "No Savings , we need more agregate demand!".

Wealth in the hands of people is what creates a society, it is what drives all investment, it what drives all improvements within society, and within a free market, those who work the most recieve the most and therfor can do WHATEVER they like with it, Deflation is not a bad thing.

What is not fair is stealing that wealth off people and spending it how YOU see fit. The accumlutation of wealth is what drives the increase of innovation/production levels of society, leading to an overall more propsperous and happier socity. The Problem is with Central Control and the Central Banks!

Gold, of course, is plugged as the ultimate store of value.

That’s why our misguided brethren of the Austrian persuasion believe it is the only ‘Real Currency’.

Nowadays the Gold dealers will tell us gold was only at $200 per ounce a decade ago while currently at $1600. “Now that is storing value!” they will exclaim.

Clearly it is not: if it were a good store of value, it would buy the equivalent of $200 2002 dollars. In reality gold has been a good ‘financial investment’. And who have been paying for the gains of the gold owners? Well…….those that didn’t buy gold. Or better: that only just bought some.

-
"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi

You're too funny

I'll trade you a $1000 bill from 1928 for fifty twenty dollar gold pieces from the same year.. Whattaya say?

SteveMT's picture

Ron Paul hoards gold, and he believes in Austrian economics.

His thinking is working for me also. I have been doing quite well believing in Austrian economics.

You must be a Keynesian, if you are not of the Austrian school. Correct?

Nope.

Jesus was not kidding when He warned us we cannot serve two masters. Accumulating wealth leads to poverty of the Spirit. This is a Law of Nature.

We can own what we need and use, all the rest is simply a hindrance. It requires care and attention. It must be maintained. It can be stolen. We become defensive (because) of it. It distracts us from our main priorities in life. Long before Jesus, Buddha was already explaining this.

First and foremost: the desire to store wealth is a sign of fear. Fear for the future. Fear of want. Anything driven by fear leads us astray. It is uncalled for. Providence provides. We can really trust on that. We must shed the fear of want and we must shed our desire to measure our ‘standard of living’ by the norms of our neighbors. We should not be working hard to create wealth, but to learn how to live in tune with the One Volition, to do His will, because that is the real source of everything.

-
"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi

I agree

With that. The only thing to Fear is Fear itself, But the Point is, not everyone is religious, Not everyone believes in God. I understand Buddism, and the goal of having no desire, but the reality is - The Reality.

It will not work, as not all will agree, it is another form of collectivist theory, akin to "The Greater Good" within communism and has nothing to do with Freedom.

You are free to promote your idea's and live them as much as possible within our Free society with a Free market.

You said: "Nowadays the Gold

You said:

"Nowadays the Gold dealers will tell us gold was only at $200 per ounce a decade ago while currently at $1600. “Now that is storing value!” they will exclaim."

As per the few posts of yours I've come across, you continue your strawman argument. Who proffered this "Gold dealers will tell us" argument that you are fighting against?

Complete bunk. All of what you've said thus far in this thread is nothing more than Keynesian nonsense dressed in the garb of christian faith.

THATS EXACLTY

What it is - "Keynesian nonsense dressed in the garb of christian faith."

Looks like this is the new angle of these Assholes running the system, Get the (ignorant) Christians to believe in Usury.

Jesus Chased the Money Changers out of the Temple for a reason, and We WILL TOO!

Not Keynesian,

not usury. Spirit.

-
"Stand up for what you believe in. Even if you stand alone."
~ Sophie Magdalena Scholl
"Let it not be said that we did nothing."
~ Ron Paul
"You must be the change you want to see in the world."
~ Mahatma Gandhi

How

are you going to force people not to save?

SteveMT's picture

Great comment, DZ.

How to force people not to save?
Answer: By enslaving them. Slaves don't save anything because they have nothing to save. They are slaves and only have faith and hope to rely upon.

Who wants to enslave everyone?
Answer: The bankers who are Keynesians.

Hahaha . . Oh wait . .Your serious?

Really? Sorry you need to do some more research!, as this post to me is one of the most Ignorant I've seen.

ALOT more research!

If things get as bad as you

If things get as bad as you think they will, then the most valuable items will be guns and ammunition. Do you really think that starving people are going to stay out of your garden or that roving gangs of armed thugs will not be plundering your home if they have not eaten for days.

Some people in this thread

Some people in this thread just have their rose-colored glasses on. Once the food is gone, there will be violence. Guaranteed.

Simple Facts and Plain Arguments
A common sense take on politics and current events.

http://simplefactsplainarguments.blogspot.com

Until martial law is in full

Until martial law is in full effect you bet guns are king... After anything useful for barter... If power is spotty or not working at all candles could be in high demand who knows... The way the orders keep coming off the desk it sounds to me like uncle sam will confiscate all the gold, fields, food, guns, ammo, and everything else. Hiding it could be bad news if you get caught hording under martial law. If we have a full blown crash the have nots are going to out number the haves 20,000 to 1 (not many people prepping).

Republicae's picture

Judging from the past

Judging from the past abilities of this government I tend to doubt if this government could ever really impose martial law on this country or actually seize all the guns in it. If you look at the so-called COG, or Continuity of Government response plans they assume several things as government bureaucrats always do. One thing they assume is that they would be able to essentially place a lock-down on all major cities and most of the surrounding regions around those cities under martial law. The COG only assumes that they would be able to control the major cities and surrounding areas, but even that is questionable under the COG response plans. Thus, they realize that there is absolutely no way that they (the government) can adequately control the entire country or, for that matter seize all the guns within this country.

There are those among us that tend to give them, i.e. the government, the elite, the NWO, more credit then they seem to give themselves which, something that I find to be a strangely odd fact.

The fact of the matter is that the government realizes that it would be virtually impossible to disarm the people of this country, we are the most armed country of civilians in the world. This government cannot even subdue a third-world country like Afghanistan or even control major portions of it, neither could the Soviets. When the Soviets attempted it, they were fighting people who basically still lived in the 19th Century, yet they were unable to defeat those tribal fighters in Afghanistan, particularly after we armed them with more sophisticated weapons.

It would be mathematically impossible for this government to not only disarm this people, but to control them under martial law and they, the government bureaucrats, readily recognize this fact, why don’t we?

The logistics alone would pose an impossible task for this government, eating away at resources during a time when the government could not possibly afford to expend such resources. For if martial law is imposed that means that this government is in a position of virtual collapse, it would mean failure and would be a loud proclamation of such failure. That in itself, would not be advantageous in anyway to a government attempting to yield power or preserve itself.

There are so many guns in the hands of Americans that is would be a disaster for this government, martial law or not, to attempt an instantaneous gun grab and they know that. Not only that, but the majority of those gun owners are seasoned handlers of weapons, they are either skilled hunters or people who are not afraid to use their weapons.

Additionally, since supply lines could not be safely maintained during martial law under COG, and that too is recognized by this government, then it would again pose a major issue with the imposition of not only martial law, but any type of gun grab by this government. There would be no way for the government to wage martial law against this entire country, and the pockets of resistance that would arise in response would make Afghanistan look like a joy ride.

This government does not have a very good record of being able to handle anything under duress, an economic disaster would pose for more problems for this government then it would be able to handle and because of that it is highly doubtful that it would be able to even logistically impose or maintain a system of martial law, even in the major cities.

Think about it, with the War in Afghanistan, our material support in Iraq, our hundreds of bases and manpower around the world stretching our military thin to say the least, our domestic forces consist of primarily some active and reserve duty troops, who, by the way, have complained about not even having enough vehicles for training, much less any type of major domestic live operations. It would be extremely difficult for this government to even transport troops, especially under an economic meltdown.

Read some of the reports on the military preparedness of this government, a government where every single SOP failed on 9-11, a government that either cannot or will not even protect its own borders. Read about what happened during the most recent storms around Washington, D.C., the government was essentially shut down, they couldn’t even maintain operations around the Capitol during a storm. Read about the governments reaction during Katrina, it was a patch-work disaster of operational ineptitude.

Likewise, any consideration of martial law should be put into perspective, that perspective is that, by the governments own account, it would be impossible to impose or maintain martial law or confiscate all the guns in this country.

http://militantjeffersonian.com

"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre

I highly doubt they will try

I highly doubt they will try to take the guns.... They are smart enough to know a gun is useless without ammo. All they have to do is cut off the ammo supply.... No need to pry guns away from owners...

Republicae's picture

It is doubtful that they

It is doubtful that they would even be able to effectively cut off the supply of ammo, just look at the efforts within other countries, blackmarkets always spring up and defy such government attempts. Even in the former Soviet Union, or NAZI Germany it was impossible to stop either the flow of weapons or ammo. Not to mention the fact that ammo of some sorts is always relatively easy to produce, explosives are extremely easy to produce. Supply trains or convoys are also always susceptible to being high-jacked, ammo-depots are susceptible to being raided, manufacturers are also susceptible to various types of pilferage.

http://militantjeffersonian.com

"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre

I give the elite a lot of

I give the elite a lot of credit. They have been able to pull off the nearly impossible. I would have never believed that they could have nearly every American proudly flying the US flag and at the same time have a hay day destroying the Constitution.

I would have never believed that they could talk the public into accepting a never ending war against a tactic.

It appears they have even put a foreigner in the white house! If this is true they simply get a kick out of how blind we are. The sheriff has a news conference today.

The list goes on and on...

They appear to be masters at deception.

Could not agree more. The

Could not agree more. The same people who control the currency control gold. They can print money at zero interest buy all your gold. Dump it on the market any time they want... and buy it back again... all for free... The key is to be born into one of the few families who gets to issue currencies. Something not even most governments are allowed to do.

If you don't think they have a plan to replace the current currencies of the world with a one world currency you are pretty foolish. If you think they are going to let a little gold and silver get in the way you a crazy.

You are foolish if you think gold or silver will save you.

Republicae's picture

Actually, there is more gold

Actually, there is more gold in the hands of private individuals than all the governments and central banks combined. It is unfortunate that people believe that if there is indeed a systemic collapse of the entire economic and therefore the complete supply chain that the so-called elite will fair better than anyone else or will somehow, through such a complete meltdown of the socio-political structure that they will somehow retain power, that is simply not the case. They will probably be hunted down and their head stuck on pikes when such a collapse occurs...it would not, after all, be the first time that an elite ruling class had to run for cover. I also say that it is highly doubtful that the elite, in such a state of collapse, will be able to survive on their own since it is doubtful that they have very many survival skills that would suit them if the entire supply chain of the global economy collapses. They are not, after all, magicians nor do they possess any supernatural powers that would protect them during such a systemic collapse, but there are those who apparently place a great deal of faith in their powers...we see numerous believers here on the DP all the time.

http://militantjeffersonian.com

"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre

Now that is funny.... Do you

Now that is funny.... Do you really think the Rockefeller clan will be eating canned beans? If you make a mortgage payment you are paying the Morgan, Rockefeller, or Rothschild families. They own all the land (behind the mortgages)... land is food... Do you really think the elite suffered in the depression? In fact it is a time that they consolidate all the wealth... When you can't pay your mortgage who do you think ends up with your land? You are foolish to think for one second they are not in control. They just let us borrow the land for a short time and can take it back anytime they want it......

These same families and other Bushes, T Boone, and others are buying huge water reserves around the globe? Why? What do we need to live? In order Air, Water, and Food.... They seem to think controlling these are far more important than gold and silver.

Republicae's picture

Well, let us consider a few

Well, let us consider a few things shall we? What is really funny is your response because apparently you have bought into the dominate theme that is constantly used without much forethought or consideration of economic realities this world is facing today. There is, by the way, a very distinct difference between a systemic collapse and a depression.

First, I am completely out of debt so I pay no one payments for anything. Second, tell me where you get the idea that the Morgans, Rockefellers or Rothschilds own all the land and what difference that would make in a systemic collapse? If you can prove it rather than just making assertions then by all means do so. Additionally, if you look at the banks of the world then the only thing that is keeping them afloat is the ability of governments to sustain the monopoly power of fiat money creation, that will cease as the weakest links in the economic/monetary systems suffer systemic collapse. Now, as the banks go so goes the bankers and the government power structure behind those elite.

What we are talking about is a systemic collapse, not merely an economic depression, as such it doesn’t matter who suffered or who did not suffer through the depression because what will take place during a systemic collapse will be considerably different than what occurred during the depression of the 1930s or any other depression or economic dislocation for that matter.

Take a good look at really what has happened and what is happening around the world. First, a plan that was a hundred years in the making is rapidly falling apart, that would be the EU. While I am sure that there are many who view it as just part of a grander scheme by the elite, the fact is that there was so much energy, time and money spent on implementing this NWO in Europe that it is simply impossible to think that if they did have that much control they would allow the last hundred years to be intentionally scrubbed, besides the economic signals being given off by the EU, as well as other official powers around the world appear to be increasingly in a real panic about the course of events occurring now.

The EU, along with the EURO, are in the midst of a systemic collapse that cannot be stopped, no more so than the global systemic collapse can be stopped and guess what, the elite, those who think they are masters of all economic and social law, can’t do one damn thing to stop it or even divert it at this point.

Additionally, if you look, really look instead of reading and believing some of the tripe on the internet about the elite, then you would see, putting the dots together, on just how shaken the elite really are about the events that are occurring. The dislocation is spreading rapidly, the laws of economics are reeking havoc on the best laid plans of the elite and the proponents of the NWO. Along with the hundred years of planning the EU, the elite has also spend nearly a hundred years implementing a fiat/credit economy in this country and around the world, one that is now on the verge of a complete collapse. This fiat system was the center-piece of all their control and provided them with the ability to maintain that control, manipulating the masses of the world into a social order that can only be considered Orwellian in direction and character. They spent all these decades creating what amounts to a productive serfdom and their power depends totally on the ability to maintain not only control, but maintain the productive nature of this artificial serfdom crafted through the fiat monetary system. If therefore, this productive serfdom is destroyed through a systemic collapse of the global economic structure then their power collapses with it, all their plans go down the drain. The only thing that has allowed them to continue maintaining their control was their ability to placate the masses with a type of economic wonderland in the industrialized world, once that collapses their ability to maintain control no longer exists.

Few people understand that we have had a global currency since the 1970s, its called a total fiat monetary regime, one that has substituted real asset money with a system dependent on the organization of debt into currencies, but the fact is that they are all the same. The reason there is a Foreign Exchange Market is simply to allow for a mechanism that sought to replace the natural monetary mechanisms of gold and silver, but of course, such artificially crafted mechanisms cannot possibly replace the natural market forces within real asset money. The idea that the elite can replace the current fiat currency system with yet another homogenous global currency ignores the most basic monetary mechanics, one of the mechanisms is the fact that all fiat currencies must first be introduced on the back of an actual real asset monetary system, otherwise the new system fails rapidly...take note of the EURO for instance. Throughout history there have been approximately 700 or so fiat monetary systems introduced in various countries, few survived over a few years and those which did survive were those that were introduced on the back of gold and silver, the ones that rapidly failed were replacement fiat systems. The reason it is so difficult to replace one fiat currency system with a new one is that there is no ability to impart value and confidence in the replacement currency. There is no foundation of value by which the new replacement fiat currency can be based, thus the failure rate of replacement fiat currencies are 100%.

Now, let's consider an elite-owned organization that has suffered a complete collapse, let’s consider Lehman Brothers, it was the 4th largest investment bank in the US…imagine that. Lehman Brothers were a part of the foundational elite in this country, not just new-comers to the elite club, but, in many ways Lehman Brothers were founders of the elite in this country. But beyond that imagine the fact that it went belly up extremely rapidly, but it was an elite-owned bank, the holders of its stock were some of the most influential members of the elite families of the world, but they LOST.

You see, we have been in a depression since 2008 and the fact is that there is nothing in the elite’s bag of tricks that can stop this depression from becoming a systemic collapse on a global scale. The controlled reality that the elite (bankers-corporatists-politicians) have desperately tried to conceal is the fact that they have lost control of the economic situation and are trying to keep that fact from the public. The ability to maintain that controlled reality is rapidly coming to an end. Eventually, those “too big to fail” corporations and institutions will fail because they will be far too big to continue to bail out and because the amount necessary for such bail-outs will be prohibitive in economic and political terms. If just one of the “too big to fail” institutions fail then the game is up, within a matter of days you would see a global cascade of failures. With that event you will see a systemic failure in the global supply chain, that will instantly cause major disruptions that are currently unimaginable to us or anyone else, including the elite. Without the global supply chain I don’t care how much land the elite own, it will do them no good if they don’t have seed to plant, know how to hunt and butcher the game they kill or have knowledge of survival skills since they won’t be able to pay anyone to do it for them. They won’t have running water, electricity or anything else, unless they are prepared for such a devastating event as a systemic collapse, which some might be just as some ordinary people are prepared, but for the most part I dare say they are not prepared for such events because they chose to live soft, comfortable lives.

The idea that there is an all-powerful and coherent NWO elite that has total control over everything happening in this world not only defies logic, but a certain economic reality that simply can’t be ignored by any rational person, that economic reality is that despite all their efforts of control the economic laws will always stand in their way and create havoc in their plans. If you look at the various camps within the elite or NWO, then it becomes apparent that it is not only not coherent, but it is a mish-mash of ideologies ranging from far left to far right and every type of hybrid ideology in between. You have East/West ideologies that are playing tug-a-war within the elite ranks of the NWO, you also have a growing power structure beginning to press its power in the so-called BRICs, all of them pressing some very different desires that appear to be competing with the old Anglo/American elite structure and the European elite structure…the NWO is a house divided.

While I most certainly believe that the elite have worked toward a one-world government, I have never believed that it was possible for them to complete such goals because I am aware of the history of economics and the laws that will always combat such manipulations over the long term. The EU and EURO was their grand experiment, but it is crumbling rapidly in their hands and they are scrambling to find solutions to the problems the EU is facing but they have none. The curtain is being pulled back and the reality of the elite is rapidly being exposed, not by some researcher or writer, but by the events that are taking place in the world today. Confidence in the official leadership of the global elite is rapidly being replaced with shear contempt, the one thing the elite cannot afford is the loss of confidence in their ability to not only lead but find solutions to some very pressing problems that are affecting people’s lives in a very harsh manner.

The fact of the matter is that the concept of the NWO is completely contrary to the actual realities of the world today. While I understand that there are those who have played up the NWO as a very powerful group of elite that are hell-bent on transforming the countries of the world under a single socio-economic-political unit, the reality is a far cry from that commonly accepted and widely promoted MEME. In fact, if you look at what is actually going on, this collapse will be so much bigger than anyone can imagine, bigger than any group of elite money powers, bigger than any government power and beyond the control of any of them.

Besides, what would the elite have to rely upon if this collapse occurs as I think it will? What would they have to build upon after such an event, what would make them different from anyone else after such a systemic global collapse? I can think of nothing, for without their power structure they are nothing and their power structure is based upon a system that has taken a hundred years to implement, that being the fiat monetary system. Without that system they have no power and no ability to manipulate society or governments, without those structures they have nothing they are nothing. When the systemic collapse occurs they will be trying to hide anywhere they can and they are well aware of the fact that they will be hunted down.

Now, if you can prove to me that the elite will be able to survive comfortably under conditions that will most certainly be comparable to at least the mid 1700s to early 1800s in living standards then by all means give me your best shot, but under a systemic collapse that is what we are talking about...a reversal of the standards of living on a global scale that will push us back at least a couple hundred years if not further.

In conjunction with this post I have reposted this from another thread, but it is definitely relevant to the subject at hand:

There is a corollary issue with the debt burdens of not only the U.S., but also all of the industrialized countries, including China and it is the interconnectivity of the entire global economy. There are so many relationships that all it will take is the collapse of one of the major systems and the whole global system will suffer collapse. The monetary system, which, by the way, is in the stages of collapse, is the primary support of the global economy and it links every single exchange and relay of goods and services together. Unfortunately, there is absolutely no asset value behind the entire monetary system of the global economy. The entire system works because there is a faith in the system, but with such a complex system the level of confidence can be easily shaken.

For years I have talked about the growing impotency of the fiat monetary system in economic terms, meaning that as more and more fiat money is placed into operation, the inflationary depreciation of the currency begins to degrade the actual effectiveness of each economic exchange. Additionally, because there is an essential balance between the economic efficiency of each monetary unit and the ability to maintain actual economic productivity through such exchanges there will come a time when the utility income that is relative to the fixed costs of production fails. Since the entire system has become so distorted through the manipulation of the monetary system and the economic system it supports, there are few reliable mechanisms within the economy that allows businesses and people to determine what decisions are best suited for any given time. The entire system can be subjected to collapse if just one major component fails.

Panic of 2008 was merely the beginning of the overall global systemic collapse, but the problems that brought about the Panic of 2008 were in the works since at least the 1970s with the foundation of those problems stemming from earlier government monetary decisions such those found in the 1930s and, of course, the creation in 1913 of the Federal Reserve system. Of course, the weakest link is always the problem, but in a system of such massive integration as with the global economy there are multiple weak links that can easily domino.

The entire complex system of not only physical infrastructure, but also economic infrastructure is so integrated that it would not take much for the entire system to be subjected to complete collapse within a matter of days or a couple of weeks at most. There will be a cascading effect of failure in the system as one by one, the infrastructures collapse.

We might not realize it but we have already entered into the stages of collapse, what has been happening however is that the governments of the world, through the use of fiat currency, have been patching up the system in order to maintain it in hopes of finding a solution, but there is no solution in their current point of reference. The entire contraction of the economic system and the ability of governments and their central banks to maintain the most critical structures through massive subsidies are becoming more and more difficult. There will reach a point where no matter how much fiat money (physical and digital) they throw at the problem there will be a decreasing effectiveness in the potency of their monetary magic tricks.

Of course, central bankers all fear deflation, but their assumptions are based on a 1930s understanding of deflation in a world that has not operated in those terms for at least 40 years. Their responses therefore, will be based on that 1930s understanding and thus, the outcome will not be as they expect. Unlike the 1930s, today bank-issued credit is the source of just about every type of money circulating. The system has evolved into one where it requires more credit expansion just to service previous credit burdens. The problem is that in order for this system to continue to function at any meaningful level of effectiveness the GDP must also increase at a level of credit expansion, but the problem, as mentioned before, is that with a fiat monetary system the economic potency is increasingly depleted through such monetary credit expansions. It is a snake eating its own tail and soon the snake will have nothing else to consume but its head.

The central bankers of the world and the governments that sponsor them are desperately attempting to maintain the system without realizing that it cannot be maintained through the very means that brought about the dislocation in the first place.

, The Federal Reserve released a paper the other day stating that because of their efforts over the last decade the stock market increased by 50%, but what they fail to say is that it is a completely manipulated system that defies the entire economic structure of reality and that it cannot be maintained. Thus, if 50% of the stock market is based on the artificial manipulation by the actions of monetary policy by the FED then the actual GDP was not actually real, but a mirage that was produced to effect a socio-political outcome. I dare say that we have not seen actual economic and productive growth in this country for well over a decade and the manipulation has been carried out to conceal the actual decline in the overall economic reality in order to maintain a degree of social and political order.

Of course, the trust has been broken long ago between this government and the People, what remains are a few slithers of trust but that is rapidly being tested, not only in this country but also globally. We are all getting poorer by the minute.

It is important to understand that the entire global economy is based on a type of proxy-wealth involving fiat currency that is a very weak link in the whole global economy. Unlike gold and silver, fiat wealth is nothing more than a proxy for real assets holding no value in and of itself. Take, for instance, many people hold financial assets as an investment, particularly in their retirement funds however, if you consider the actual make-up of such investments they are all based on the fiat proxy-wealth system, which, is largely dependent on trust. Such proxy-wealth investments are nothing more than a re-allocation of values within the market and in order for a person holding such investments to actually profit from them is if those proxy-wealth investments can be readily transformed into real asset-wealth at some point in the future. It is that conversion that is the ultimate source of value for such investments, if there is a failure in any portion of the system then the entire structure collapses and loss ensues on a massive scale. Now, if we consider the fact that the FED has already stated that the last decade of such proxy-wealth investments were subjected to its manipulation to increase their nominal value by 50%, then the real value of conversion without such manipulation would be a 50% loss of conversion value. That should inject a huge question of trust into such security instruments.

The system can and will suffer from a systemic collapse; one weak link can facilitate such a collapse. What will occur, it appears, is that as there will be a debt-deflationary collapse causing a cascading effect within the economy there will also be a corollary hyper-inflationary event created as the governments and central bankers of the world pump massive amounts of fiat currency into the system in an attempt to stave off the debt deflation. Thus, we will experience a growing decline in economic activity, which, at the same time, experience the most drastic inflationary price increases in a rapidly decreasing selection of goods and services. In other words, it will be nothing like the 1930s.

Debt serviceability becomes increasingly difficult and no longer functions as an adequate means of economic exchange, thus the entire contraction of the global economy becomes incompatible with the entire financial system that is based on the credit, which back it. What we have had for decades is nothing less than a hype-credit expansion but eventually the global GDP cannot grow fast enough to service the debt that is created to maintain the system. Again, the snake is eating itself from the tail up to the head, eventually the snake has eaten all of itself and there is nothing left to consume.

Eventually, there will be a complete loss of faith in both the government and its façade of finance; as such, people will begin to exit the system or at least they will attempt to exit it but will be restrained both by government edict and by the fact that there will be a decreasing ability to convert proxy-wealth into real assets as the proxy-wealth is perceived as increasingly worthless. While there will be a period that people will stubbornly cling to their fiat cash, a stage will be reached where fears begin to press them to rid themselves of fiat cash as soon as possible, trying to convert it into any type of hard assets available.

People will awaken to a reality that the entire system has been little more than an extremely complex government/bank sponsored Ponzi Scheme, that all the global financial markets and the ability to convert that proxy-wealth into actual assets is based on an illusion that has been carefully crafted and maintained for decades.

Now, most of what was just written is based on what could be considered a relatively slow collapse, but it is important to understand that such a scenario could rapidly be transformed into an extremely fast collapse with just a few minor changes. It would not take much for a financial collapse to rapidly turn into a complete social collapse within a matter of days of an event. Not only is there an integration of financial infrastructure, but also the physical infrastructure within the economy. There could easily be a massive disruption in the entire supply chain of the global economy due to the fact that it is based on Letters of Credit which, are becoming difficult to obtain as the economic situation worsens around the globe. We would see food and fuel shortages within a day, not only that, but almost instantly there would be hundreds of thousands of people put out of work by such a disruption.

Within a few days the food, fuel and water shortages would escalate, banks would be forced to shut down because of bank runs and no cash. Within a week all travel would come to a compete stop; all functions within the government would essentially cease within a few weeks. In a month we would essentially be placed back into the 1800s.

So, given the real possibility of such a scenario, the best thing to do is prepare.

If you want some more in-depth information then visit my blog link below...

http://militantjeffersonian.com

"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre

Who are the largest mortgage

Who are the largest mortgage lenders? This may help

http://deanhenderson.wordpress.com/2011/06/01/the-federal-re...

Also look into death taxes and what happens to the family farms. Just follow the money it always ends up in the link above. Which actually roots with Rothschild. I think he has a problem with the Revolution thing!

First off a complete collapse wont send the world back to the dark ages (not part of the plan). We will still have tech and knowledge far beyond the 1700's. The Military (UN) of the world will step in. Within weeks the elite will offer the solution to the problem (plan) they created. The IMF currency. (after guns, gold, and everything else is collected) and most people will be happy to see this happen for safety. (after the riots and crime wave). The collapse after all will be much like 9/11 just on a much bigger scale.

Second you assume the collapse is an out of control accident. This is a plan that has been in the making correct and it is working like a dream. This country has been ran into the ground while we sleep. We have bought it hook line and sinker. I tend to agree with you all the players not getting along has helped slow it a bit.

Sure let's Look at what is happening in the EU. Taxes going up social programs being cut. Raising retirement ages so the surfs can work until they drop. Airports, roads, Power plants, and the rest going private. Who will buy these (for pennies on the dollar)? Please see link above. Again they consolidate wealth. Wealth being assets. Soon these people will wake up in a country that owns nothing but owes everything to the elite.

I think you have greatly under estimated your opponents. Why do you think the orders now roll off Obama's desk? When the dust settles we will wake up in a country that owes everything to the elite.

Republicae's picture

Gosh, you really don’t

Gosh, you really don’t understand the fragility of the entire system do you? Doesn’t matter who are the largest mortgage lenders, those are based on a purely proxy-wealth system, one that is created through the manipulation of credit based on the organization of debt into currency, i.e. fiat monetary substitutes. That entire system is in the process of failure.

Look at the names of those banks listed on that blog, do you find anything interesting about them? Perhaps not, but you should because each of those banks listed are up to their collective eye-balls in the most risky type of proxy-wealth, that being derivatives, those derivatives combined with the fact that they subsist on a fiat fractional reserve system makes then an even more risky venture for those involved. The elite, of whom you place so much faith in their power, have woven an ever-tightening noose for their own criminal necks.

Now, what do you suppose a complete systemic collapse will look like? We are not talking about a mere economic dislocation, but a systemic collapse where the entire supply chain fails. While we may have technology and knowledge what happens to technology and knowledge when there is a complete systemic collapse of the global supply chain, when nothing, absolutely nothing moves? What happens when there is no potable water, when there is no food, which, by the way a shortage would occur within the first 24 hours and a complete absence within three days of a systemic collapse of the global supply chain? The military, which, by the way, is subject to the very same global supply chain as everyone else in the world, will not be able to do one thing once such a collapse occurs. Hell, this government was helpless for weeks over the most recent storm that simply knocked out power in the D.C. area; do you think they actually have the wherewithal to actually handle a systemic failure and collapse of the entire global supply chain? Within weeks there would be no elite to offer up any type of solution, apparently you have been reading far too much fiction to understand just what would happen during such a systemic collapse. This would not simply be a collapse of say the type experienced by the former Soviet Union; this would be a complete global collapse of everything that we currently consider a necessity.

I dare say that you have never studied the interconnectivity of the entire global economic systems have you? With that economic interconnectivity there is a supply chain connectivity that is correlated and connected to absolutely every single area of what we know and call civilization today. The relationships between the entire global systemic banking and monetary system, as well as the very real possibility that the entire system could collapse with just the degradation of one component of that system poses extremely dire implications for the real-time supply of all goods and services, of everything from fuel, food, medicines, power, everything. It would be essentially a contagion that not only could not be stopped, but also once it began it would render the entire socio-economic-political structures of the world beyond repair. If you have not considered this then perhaps you should, for one a global systemic collapse occurs it is not as simple as you appear to think for the pieces to be put back together again. In fact, think about it for just a moment, perhaps you might be able to wrap your mind around the fact that once the massive global supply chain collapses it will not simply start up again, it will take decades for it to even begin to function on a localized scale, much less nationally or globally. So, if you can give me a detailed explanation of how it could possibly just be kick-started by anyone, like the UN, the military, NATO or anyone else within a short period of time after such a collapse then by all means give it a shot, but by all estimations once it's down it's down and everything we know about our civilized world completely changes.

By your statements I can see that you really, really don’t grasp just what I am saying when I state that a systemic collapse of not only the economic and monetary systems, but also, due to the interconnectivity of all systems, including the global supply chain there will be no IMF, no UN, no US government. Do you have any concept; of course you don’t, about what would happen if there were a global systemic supply chain collapse? Have you really ever thought about it?

Have you ever considered just what type of cross-contagion would take place between the entire financial systems and the entire trade-production networks of the world? No, of course not, but without understanding just what would take place under such circumstances there is really no way to grasp the import of such an event. You think, or seem to think that the UN would simply step in…how, how would it do that if there was no fuel, no food, no water, no transportation, no communication, no one to man the command posts, no one to actually give the orders, how would the UN do anything under such conditions? Let’s see, there is no power, no form of communication, all computers are worthless, no phone service, no way to transport anything or anyone. Do you even know what the global supply chain is and how it works? The entire system is based on what is known as “just-in-time” logistics, meaning that everything arrives essentially just before the supplies run out, but rarely before. That means that, in this country for instance, there would be no food within three days on any grocery shelf, drinkable water would run out within a week or so and within 4 weeks there would be no drinkable water within the entire country except that which would need to be boiled.

Within the first 24 hours of the systemic collapse all hospitals will begin to run out of the most basic medical supplies, gas stations will begin to run out of fuel, manufacturers will develop critical shortages and guess what, the U.S. postal service would not be able to function and that is just the first day after a systemic collapse of the global supply chain. After a day, food shortages will begin to develop globally; in this country fuel will begin to be in extremely short supply, manufacturers will begin to shut down due to the fact that they cannot get parts. After three days food shortages will reach a stage where it will be rare to find anything available in stores, they will simply shut the doors. The most essential supplies will become non-existent within three days of a systemic collapse. There will be no cash because of bank runs, gas stations will, after three days simply shut their doors because they can’t get fuel. Container ships and railroads will stop running, no need to they can’t get either fuel or supplies or people to run them. Within a week all automobile travel will completely cease and hospitals will exhaust all their supplies. Within two weeks this country will begin to see the last of its clean water supply dry up, besides with no power there will be no treatment of the supply and no means of actually delivering the water to people anyway.

We really have been living in a dream world, for the most part, and many people obviously still do for many seem to think that there is always going to be someone with a solution to the problems that the world faces today, but the entire infrastructure of the global economy is so interconnected that it would not take much at all to throw the entire system into a tail spin that would literally take decades to crawl out of, even with technology and knowledge it is not as simple as you seem to think once the entire system goes down.

Of course, we can’t forget the numerous nuclear power plants around the world, they too would be subjected to a scenario that makes the Japanese Tsunami look like a minor inconvenience by comparison. In fact, all the power plants, the electrical grid and every other form of energy production would rapidly cease.

We fail to understand or fully grasp that the most critical infrastructures of all governments, businesses and even banks require the global supply chain to function. Every single transportation network, the power plants and electrical grids, pipelines, refineries, water works, telecommunications…everything requires and are integrally connected to the global supply chain and with even a slight disruption, not to mention a systemic collapse, the entire system is effected.

The collapse will be nothing like 9/11, nothing at all, but it appears that you have a major problem understanding scale and consequences of such interactions of infrastructure when speaking about a collapse. It is also apparent that you don’t seem to have an understanding of some of the most basic principles of economics or monetary mechanics otherwise you would not make some of the statements you have. You are also making assumptions that do not follow reality, but are apparently based on some sort of fictional understanding of popularized books and websites concerning the NWO, but that is not what is occurring, nor has it occurred as you and others present. Like others, you readily give the elite far more credit than they deserve. Additionally, you seem to think that a group of men could actually control the global economic and monetary systems to such a degree of certainty that they could gain control without much trouble, but that has not been the case.

I am not simply talking about an economic dislocation that could be used to promote a hidden agenda of some elite group of people, what I am talking about is the very real possibility of a systemic global collapse of not only the economic system, but because of the interconnectivity, the entire global supply chain operations. Such a collapse would not only be far beyond the control of any group, but far beyond the control of all the governments of the world even if they could agree on what to do to control it. What is happening is not something that either can be controlled or would it provide anyone with any benefit, even the elite. The world, starting with the US, has been subjected to a fiat monetary system that has essentially created a productive serfdom, as I said. What that means is that the entire system, as it was created and implemented, it the vital centerpiece of all control over people. As long as the productive serfdom can be maintained and managed then the elite retain their power over the entire system, but if that serfdom can no longer produce as with a global systemic collapse, then all control and power is completely and absolutely removed from those who have wielded such power. The entire system has relied upon the fiat monetary substitution system for its power, for creating, as it were a productive serfdom of people transferring their labor into wealth and having that wealth stolen from them through a monetary system that was intentionally created to siphon that wealth from the people and concentrate it into the hands of a few powerful globalists, corporatists and Statists. Without that system there would be no power elite as we have seen evolve in the last 100 years.

I cannot believe that you are overlooking the most obvious consequences of what a global systemic collapse would involve. What I am talking about has nothing to do with taxes going up in the EU or austerity programs being put into place in an attempt to stave off internal collapses within various EU member states. It doesn’t matter who buys up the airports, the roads, the power plants or anything else when the systemic collapse occurs, all of that will be completely and absolutely meaningless in the context of what I am speaking about. The elite can buy, buy, buy but they cannot stop such a systemic collapse from occurring nor can they control it or benefit from it.

The fabric of the entire socio-economic system has highly critical inputs in order to produce and the entire system is only one step away from a complete failure, one weak link in a system that is filled with weak links. The entire system is limited, not by the total amount of resources available at a given time, but by the scarcest resources. In other words, it would only take one of the links in the chain to break to cause the entire system to suffer from systemic failure; this is truer today than it was back in 2008.

We tend to think that if something did happen like a systemic collapse that it would be only short-lived and things would get back to normal within a few days or perhaps at most a few weeks or months, but we fail to understand just what a systemic collapse would actually involve in a highly integrated society such as ours and the worlds. If we think back on the Lehman Brothers collapse, it was almost one of those events that could have easily reached a critical point where there resulted a systemic collapse. I say that because after Lehman failed there was, as we know, an almost instant response within the credit structure of the economic systems globally. Credit seized up throughout the banking system, which, in turn, caused disruptions within several other areas of the economic, including the supply chain of the world. It could have easily overwhelmed both governments and central banks to the point that there would be no way to even begin to re-stabilize the system quick enough to stop the contagion from spreading, we got very, very close to the dominos starting to smack down one after another.

Few people seem to understand that the global economic system today has very few, precious few redundancies, as such the entire economic is basically one-dimensional and makes interdependency, as well as interconnectivity some of the weakest links in the entire system. The entire global economic is totally dependent, for instance, on a fiat monetary system that has been crafted around an even more risky type of system called the fractional reserve banking system and credit expansion. This system is the center of all proxy-wealth held by most people in the world, particularly those who invest their money in financial instruments such as stocks and bonds and other more eclectic securities. They are all forms of proxy-wealth, but not real asset wealth. If you have ever heard of a paper-millionaire then you know it is a person who has most of his wealth tied up in some sort of commercial paper or government bond or stock.

For instance, let’s take Bill Gates, the vast majority of his wealth is in stock, that is nothing more than a form of proxy-wealth, but let’s say that he holds several millions in cash otherwise known as fiat money substitutes, that too is nothing more than proxy-wealth, then let’s say that he is wise enough to actually hold a couple of million in gold and silver as hard assets. What happens to those various forms of wealth during a systemic collapse of both the financial systems and the global supply chain network? On paper Bill Gates is worth $61 Billion Dollars, one of the wealthiest people on earth, but in after a systemic collapse what would he be worth, well if all his wealth was proxy-wealth he would be worth zero, nothing, not one red cent. If he had a couple million in gold and silver before the collapse then he would have gold and silver but it would not be valued in terms of dollars any more. The same is true for every other Billionaire on earth if their wealth is based on proxy-wealth.

The same holds true for Carlos Helu, for Warren Buffett, Bernard Arnault, Amancio Ortega, Larry Ellison, Eike Batista, Stefan Persson, Li Ka-Shing, Karl Albrecht, etc. All Billionaires, all part of that very select, very elite group of people around the world, but for all their billions of dollars not one of them would be worth a single dime once a systemic collapse occurs.

Thus, I think you overestimate the power of the elite in the face of a systemic collapse and simply don’t understand just what it really would mean when it happens.

http://militantjeffersonian.com

"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre