A Fictional Story on Economic Collapse (Republicae)

This is not original, this story has been floating around for years, I simply updated it a bit for drama

FRIDAY…NO DATE GIVEN

It was an extraordinary day, the events of the past several months finally giving way to shear panic in the markets, the governments and around the world. The news carries the story that an emergency meeting is called by the heads of China, Japan, Britain, the Middle Eastern States summoning President Obama, Treasury Secretary Geithner and several economic advisors of the Obama Administration to Tokyo. The holders of U.S. Treasury debt have indicated that they are no longer willing to absorb U.S. Debt. The Federal Reserve takes the step to directly infuse credit and money into the system, side-stepping the monetizing of the debt by lending directly to the government and the banks at a level that boggles the mind.

MONDAY…NO DATE GIVEN

Opening Bell, Wall Street is hit by a massive tsunami of foreign investors to sell all U.S. Government securities at market. The massive panic in the Bond Market spreads quickly to stocks and the DOW plunges to 3,850. The dollar falls nearly 70% against all foreign currencies, gold soars to nearly $1,250 per ounce; silver hits $42 per ounce and settles at $36. Later that day, prices across the board begin to rapidly increase, with loaves of bread selling for $4.70 and hamburger at $6.50 per pound. By the end of the day, a gallon of gas is selling for $5.24 on the West Coast.

TUESDAY…NO DATE GIVEN

The SEC orders all Markets to open two hours late. The Markets open on another selling panic until the Dollar once again sinks another 30% against foreign currencies, and then a panic buying begins as investors seek to buy anything they feel has some value. The Dow closes at nearly 25,534 while the Bond Market collapses. Gold prices shoot through the roof, closing at $4,560 per ounce and silver closing at $95 per ounce. Working people have spent the day off work, seeking instead to sit in line at gas stations and eager to pay $16.50 per gallon. All the late-comers at the grocery stores felt lucky to be able to buy a loaf of bread for $15 and a pound of hamburger for $24 per pound. For the most part the grocery store shelves are empty.

WEDNESDAY…NO DATE GIVEN

Markets are given a national holiday, and nation-wide Banks begin to call in loans and mortgages, the largest insurance companies announce that they will no longer be able to honor any request to cash in policies “until future notice.” Food riots break out in New York, LA, San Francisco, Chicago, St. Louis and New Orleans. In Cleveland and Chicago enraged mobs of housewives kill three Kroger store managers and maim 7 grocery workers before SWAT teams are able to clear the buildings. In other cities, dazed shoppers are glad to find bread at $75 a loaf, but few can afford hamburger at $119 per pound. Coin dealers in all major metropolitan areas close their doors, sneaking out the back to avoid the long line of customers now blocks long looking for any silver or gold. In LA, two gas clerks are burned alive when irate customers trap them in their kiosk, shoving gas tank hoses into the payment slots, filling the kiosk with High Octane Gas at $82.899 per gallon, and throw a match to the trapped clerks. The dollar drops again, now by nearly 95% against all foreign currencies, banking raise interest rates to 72% per day to their creditworthy borrowers, who are lined up for the bargain rates. Early in the day, more banks begin to call all mortgages. By 4:00PM, President Obama calls a banking holiday. Wall Street is booming, with the DOW hitting the all time historic high of 168,650. Trading in the gold market goes into a frenzy mode as gold reaches the $20,000 per ounce mark and then settles at $22,800 per ounce. Two gold traders suffer heart attacks on the trading floor, but are trampled to death by the frantic traders before medics could reach them. Managers of three of the nation’s largest pension funds commit suicide, one Live as he was being interviewed on CNN. Silver begins to increase in price faster than gold and hundreds of millions rush to spend their remaining fiat dollars and save what value they can, by the end of the day silver prices close at $651 per ounce. FEMA, under the direct orders of President Obama, take control over all transportation, all businesses and requires a complete shut down for the next 7 days. The National Guard is ordered to patrol the major cities, in some areas a de facto Martial Law is declared, but to little effect.

THURSDAY…NO DATE GIVEN

With grocery stores and other businesses closed, people panic. Flea markets and black markets spring up everywhere, even in mall parking lots. Bread, if you are lucky to find it, is selling on the black market for $600 per loaf or a dime of pre-1965 silver coin. A very few daring farmers who bring fresh meat are asking $955 a pound for hamburger, $1500 a pound for rib-eye steak, and $50 for a single fresh egg. In LA, Korean truck farmers commandeer a U.S. Army armored personnel carrier and use it to protect their produce as they sell their goods throughout Orange County. President Obama appoints former President Clinton and former President Carter as joint heads of a commission to investigate price gouging, as though it mattered any more. Army units withdraw from Beverly Hills and cordon off the entire area, leaving it to burn from the riots of the formerly wealthy rapidly go insane as shortages crept into their high-end grocery stores and boutiques. The interstates leading from New York, Philadelphia, Boston, Chicago and other major metropolitan areas are gridlocked as multiple millions of refugees flee the cities only to find that there is no gas for their escape. Tent cities spring up at Interstate exchanges, patrolled by armed militias. The Army, with its hands full in the major cities, makes no effort to control suburbia or rural areas. In the Southwest, border crossings are hopelessly clogged as millions of illegal aliens rush south toward their homelands. Stock and commodity traders have been forced to remain in their offices, unable to leave their buildings because of the mobs gathered around them with torches and all manner of weapons. Gold is not trading at $182,400 per ounce, silver climbing to $7,600 per ounce. Traders panic as shots are fired in the gold pit at the Chicago Exchange, but calm returns as they all realize it was nothing more than the last few short-sellers committing suicide. Interest rates on the dollar once again climb to 2,880% per day, but only in overseas markets. U.S. Banks remain closed. Brazil, Nigeria, Mexico and other debt-laden countries paid off their entire foreign debt to the U.S. Banks. The Dollar again drops, closing 96% lower against foreign currencies, but even foreign currencies are taking a beating as the panic spreads globally. Britain, Canada, and most of the EU declares banking holidays along with draconian measures to keep order, rioting has already toppled the Austrian government, and Germany teeters on political collapse. Stock markets across the world hit record highs, but oil, retail business stocks sink.

FRIDAY…NO DATE GIVEN

With the entire nation in shock, as the remaining millions try to escape the urban areas, the declaration of Martial Law by President Obama goes unheeded, even the military is experiencing massive desertions and in some areas open rebellion against some military units who are remaining faithful to the government. In Washington, D.C. heavily armed police and Army forces wage a pitched battle on Capitol Hill trying to defend Congress against a well-armed mob, mixed with its share of military and law enforcement deserters changing their allegiance to the newly formed Provincial Constitutional Government of the Independent States of America. Several Congressmen, including Barney Frank, Nancy Pelosi, Hillary Clinton, Charles Rangle, along with others that had voted for bailout after bailout were tried, found guilty of High Treason and summarily hung on the National Mall. Two days prior, Dr. Ron Paul, along with others who objected to the massive government intervention were safely hastened away to safe-houses.

Federal Reserve Banks across the country are sacked, the various heads of the Banks executed, in many cases, without trail. Various government economists around the country were left hanging from trees and street lights. Bundles of fiat money confiscated from various banks are torched and the massive wealth in art objects, gold, and silver were confiscated In the Name of the People.

In Austin, Texas, the State Legislature announces that, acting on the Treaty of 1848, they declare their Independence and are now to be known as the Texas Republic. Alaska, Montana, Idaho, Washington, Oregon, Oklahoma, Vermont and New Hampshire quickly follow suit and Secede from the United States. It is announced that each Governor of the Secession States will meet in Austin Texas to ratify Articles of Confederation of the Independent States of America. All Independent States jointly announce that they will welcome all Patriotic Constitutionalist into their ranks and will welcome other States which wish to join their Confederacy.

President Obama, along with Treasury Secretary Geithner, FED Chairman Bernanke broad cast an emergency message calling for calm and announce that the government will issue a new dollar backed by gold, repeal the Federal Reserve Act and dissolve the Federal Reserve Banks, but it is too late for any actions taken by the government.