The Imminent Dollar Crash and Social Disintegration
2004 – $501
2005 – $373
2006 – $282
2007 – $178
2008 – $488
2009 – $1509
2010 – $1360
2011 – $1324
To maintain your standard of living, you re-mortgage your house at 3% interest year after year to make up for the deficit, as well as the ever-increasing interest payments.
The interest on your loan year by year is as follows:
2004 – $322
2005 – $352
2006 – $405
2007 – $430
2008 – $451
2009 – $383
2010 – $414
2011 – $454
Your financial record shows that your outstanding loan capital is as follows:
2004 – $7400
2005 – $7900
2006 – $8500
2007 – $9000
2008 – $10000
2009 – $12100
2010 – $14000
2011 – $15400
It does not take an Einstein to figure out that this is unsustainable, and that by about 2013, you will be faced with three appalling alternatives:
1. to borrow some more, assuming that you can find a lender that would lend anything to you, or
2. if you can’t, to default on your loan and declared bankruptcy, or
3. to print your own fake money, at risk imprisonment.
This, in a nutshell, though the real situation is more complex than this, is what the financial picture of the mighty United States of America looks like. Just add 9 zeros to the above to make the amounts in the BILLIONS.
The real situation is in fact far worse, because on top of the U.S. national debt, owed to the banks and other nations, which in 2011 towered at $15,400 BILLION or $15.4 TRILLION, there are also the unfunded commitments in the forms of social security, medicare coverage, pensions, etc, amounting to some $55 trillion, which essentially is a debt owed to the American public.
So, all in all the U.S. owes to various parties a total of over $70,000 billion or over $70 trillion as we speak, and mounting.
While up to 1970 the U.S. dollar (USD) was based on gold, in 1971, Pres. Nixon switched it to a Fiat Currency, allowing the independent central bank – the Federal Reserve (FED) – to print money out of thin air. One of the ways that the U.S. has been trying to maintain an appearance of financial solvency is by the FED printing an amount of USD needed to cover the debt – at an interest (of the above said ~3% charged against the government, i.e. the people).
An effect of massively printing money out of nothing and releasing it into the American financial pool is that the USD is devalued, leading to inflation. It is not that the commodities are rising in value, but that the USD is losing its purchasing power.
If pushed too far, it would lead to hyperinflation, which could render the USD almost worthless. The gasoline pump price today floats around $4 per gallon. In the scenario of hyperinflation, the dollar could shrink very quickly, meaning in terms of days, to, say, 20 cents to the dollar, and the gasoline pump price could rise to $20 per gallon almost overnight.
On the surface, the U.S. financial picture is one of soundness and stability, and even after the 2008 crash, one of recovery. Nothing can be farther from the truth, and yet, via the government and corporate controlled media, the gullible public has been made to swallowed this, line, hook and sinker, and carry on consuming as per the great “American Dream”, which, unfortunately, will turn into the huge American NIGHTMARE in short order.
This is considered by experts to be a mathematical certainty.
Financial experts has been predicting an American financial meltdown for years, and their estimated time frame has become shorter and shorter, first in terms of years, then months, some even say weeks. Now, they by and large predict that the crash will occur some time in 2013, if not in 2012.
Coming back down to the personal level, what will happen to you as an American citizen if this comes to pass?
1. You pay check would be worth next to nothing.
2. As the USD is printed out of thin air, your life-saving could evaporate back into thin air.
3. Given the skyrocketing cost of doing business, many companies will fail and fold.
4. There will be massive unemployment, perhaps up to 50%.
5. The government will default on social security payments, pension payments, government employee salary payments including that of the military, medicare payments, unemployment insurance payments, etc., etc.
6. Your gasoline cars will be as good as static metallic sculptures rooted to where they are parked.
7. Since the transportation system will have ground to a halt, grocery shelves will empty within days.
8. The water distribution systems could also fail, in which case people living in the depths of major metropolises, e.g. Los Angeles or Chicago, may go as far as dying of thirst if not hunger.
9. Other than fuel prices going out of reach, the electricity grids too may fail, and people living in those areas with severe winters may freeze to death.
10. There will robbing, looting and rioting in the street and invasion of private residences – in general an overall disintegration of the American society as we know it.
This is as far as I will go in this blog. I will have more to say about the GLOBAL economic melt-down, the crash of the U.S. Petrodollar, the likelihood of World War 3, and how you can deal with and survive all these calamities on a personal level. But they will be said in subsequent blogs. Stay tuned, if your dare.
Anthony Marr, Founder and President
Heal Our Planet Earth (HOPE)
Global Anti-Hunting Coalition (GAHC)
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