America is entering the most volatile and dangerous period in its 240 year history. Unfortunately for the 7 billion others who share the earth with us, we have a nasty habit of making our problems their reality.
There are several facts which are certain. The first is that the US and indeed the entire world has more Unpayable Debts now than at anytime in history. And as Dr Michael Hudson often reminds us, Unpayable Debts are never repaid.
Debts can be cancelled in one of three ways. A billion dollar debt can be made to appear smaller if we raise prices 100,000%. That was done in the Weimar Republic in 1923. It did not work out very well. Another way to cancel debt is to discharge it in bankruptcy court. America did that in 1933 when farms and home mortgages were foreclosed and millions of businesses and individuals filed for bankruptcy. Bankruptcy cancels loans and shrinks our checking account money supply. In the Great Depression our money supply shrank by a third. Monetary Contraction is what caused all the unemployment and economic disruption. It starved 3 million Americans to death.
There is a painless way to end a Depression and to cancel Unpayable Debts but more about that “Third Way” in a moment.
There is another undeniable fact. America has had an enormous unbalanced trade deficit since the passage of the North American Free Trade Act which shut down 58,000 manufacturing plants. Those same politicians added 55 million people to our population through legal and illegal immigration in that same period. Nearly 20% of America’s GDP is purchased with I Owe You Nothing dollars and promises to pay in the distant future for things we could never afford today.
These “Two Facts” will cross paths in the very near future. Catherine Austin Fitts is giving us at most until some time in 2017. I doubt we will last that long.
These facts will end the fiction that I Owe You Nothing Federal Reserve Notes can prop up the stock market and the bond markets, purchase more than a billion dollars in “free things” every day from foreigners and pay the salaries of 30.6 million government workers without consequences.
I am thinking this will all end very abruptly and very badly sooner rather than later.
Suppose the stock and bond markets get a bad case of jitters due to rising interest rates. Stocks and bonds decline in value every time interest rates go up. This might stampede foreigners into dumping American stocks and bonds. This drives down the value of the dollar as they are exchanged for other currencies and/or precious metals. A decline in the value of the dollar would make American food cheaper overseas. We could see empty shelves and much higher prices for all imports.
Higher interest rates would make it impossible to fund our permanent budget deficit. We would find it exceedingly difficult to pay the salaries of government workers and to fund vital programs like Food Stamps. We have already been neglecting infrastructure repair to pay for wars and military bases overseas.
We could achieve the same results from a government forced to print trillions in new money to continue benefits for angry voters and to bail out more failed banks. A sudden rush in money printing combined with widespread corruption scandals could also spook foreigners to dump dollars and flee into the safety of commodities and precious metals.
This could all happen about the time that either Donald Trump is assassinated or Hillary Clinton and her vote count riggers, the news media, dead voters, illegal aliens and people voting several times steal the election. If people lose their jobs and their savings at the same time that the one election that meant anything was stolen either by a bullet or by those voting machines owned by George Soros, then a few million people will get exceedingly angry.
When, not if, Americans go to the store and see sharply higher prices and a sign saying Food Stamps have been cancelled, there will be Nationwide Food Riots.
When 3 million Americans starved to death back in the 1930s, we only had 125 million people, 90% of whom lived near farms. Today we have 220 million Americans living in highly urbanized areas. Those people can’t go for a 2 mile hike to shoot a deer or at least a couple of rabbits. They could however go to the nearest store and loot the shelves. We will need something other that grocery stores to distribute food in urban areas by the end of the First Week after the Dollar Dies.
We will also have increased racial strife over the distribution of food. There are 57 million Latinos and 46 million blacks plus 12 million Asian-Pacific Islanders. The Mexican gangs of the West Coast would love to annihilate the two million blacks who live in California but black people outside the West would retaliate.
Does anyone really believe that our minorities will agree to let 2 million blacks and 2.5 million Latinos starve to death even if 5 million whites agree to die of starvation?
Some anti-Semite might question how many Jewish people will be dying of starvation.
That brings me to fact Number 3. I can just about guarantee martial law as soon as the Dollar Dies.
I have followed US Army Urban Warfare exercises. When they practice riot control, they deploy soldiers and equipment to protect wealthy Jewish suburbs. And they do sacrifice poor working class whites who live near minorities.
Fact Number Four: Most of those US Dollars are overseas. In 1980 the Federal Reserve raised interest rates to 19% to convince foreigners to not dump our currency. That worked then but will not work now. Our trade deficits and budget deficits have soared over the last 36 years. And our population has increased by 98 million. We are importing food and natural resources.
We are, according to Michael Hudson in his book Super Imperialism, making foreigners pay for the bombs and drone strikes we use to kill them because we can’t afford all those wars. China, Russia and lots of other nations know that. They just don’t want to start a stampede by dumping dollars by the tens of billions every hour of the day for week after week.
When the dumping starts, it will cascade into a flood that drowns the markets everywhere. When the Dollar Dies, foreigners will dump their dollars because they could lose half their value in a week or two. That means prices for imported food, electronics, cars and clothes will double in weeks and probably double again in a few months.
Fact Number 5. When Americans see prices double, everyone with a working credit card will buy anything they might need over the next few months. This will clear the shelves so store owners can raise prices on the new inventory when or if it arrives. We have not had any inflation nor has the economy generated many jobs because people have been sitting on money and not spending. Turning money over more quickly leads to inflation. It is called higher velocity. In Zimbabwe on July 4, 2008 between 5 and 6 pm a bottle of beer rose from 100 billion to 150 billion dollars. That did not happen because their government increased the money supply by 50% in an hour. Velocity or rapidly turning over the money in your pockets did that. Zimbabwe is an extreme example of what an increased velocity or turnover of money can do. We will see this happen in America in our near future though to a lesser degree.
Hint Number One: If you were a foreigner who wanted to dump all US Treasury bonds and your American stocks and corporate debt, how long would it take? If you dumped ten billion dollars an hour 40 hours a week for 40 weeks, you could get rid of your stocks, bonds and corporate debt but you would still have to unload the dollars you received when you sold $16 trillion in stocks and bonds in the US. You could always buy commodities and precious metals.
Hint Number 2: Think of the stock and bond markets as huge stadiums with 50,000 people inside them and only one exit which only allows one person every 2 seconds out of the single turnstile. Imagine a fire breaks out and everyone wants out at the same time. Not going to be a pretty sight.
Catherine Austin Fitts in her latest interview with Greg Hunter said the Elite stole $50 trillion from us since the Clintons took office. I would ask you whether or not you think the Bankers will willingly surrender control of the Cash Cow that is Washington DC? Ask yourself if they would be willing to pay the media billions of dollars every year to lie to you? If they are willing to kill people in foreign lands to get their oil, wouldn’t they be willing to Kill Americans to keep the tens of trillions of dollars they stole from us?
There is cause for hope.
During the Brexit vote, polls even up to the morning of the vote said Remain was ahead by ten points. We saw election workers erasing Leave votes. We saw returns claiming Brexit won by a slim majority in areas where the voters didn’t know anyone who voted Remain. Yet Brexit won. There are limits to the amount of theft voters will tolerate. Brexit probably would have won by an even greater number if they had an honest count but at least they won the battle.
1 The majority of US military officers support Trump. The majority of police support Trump. I can guarantee martial law when the Dollar Dies. Martial law cannot feed 120 million Americans who won’t have anything to eat after prices double and Food Stamps are either cancelled or zeroed out due to inflation. That means we will have a brief moment when angry people can demand a modern version of a Debt Jubilee. The Debt Jubilee in the Bible was copied from the Babylonians who borrowed it from the Sumerians. It does work.
It could work here. Arrest the Bankers, seize their assets and use that money to fund Debt Cancellation. Admittedly, that would require us to temporarily occupy offshore tax havens from the Cayman Islands to Liechtenstein. But that is preferable to shooting ten or 20 million Americans who have nothing to eat.
2 US military officers and the police are well aware that Americans own 350 million guns and 10 billion bullets. They do not want to go door to door seizing guns, bullets and any food above a one week supply. The military has been practicing Zombie attacks. The soldiers practice killing unarmed civilians who march against their position. What they are doing is drilling for the day when 120 million people have had no food for 3 days and they rise up in protest. These crazy Game Plans were designed to intimidate you. They are not going to shoot 40 million people to balance the budget and eliminate unemployment. That will not happen. Americans have 350 million guns. There are scenarios where USAF pilots drop bombs on Americans. Never happen. Men with hunting rifles would start killing Air Force officers. But long before that, the electricity to Washington would be cut off. Military bases on US soil require food, water and electricity from nearby civilians to survive. They can’t live without us. And they all have parents, other relatives and friends who will seriously object to a war against America.
3 The US military apart from the USAF Chief of Staff David Goldfein does not want a war with Russia. Goldfein thinks America is ready for another 15 years of war. Only crazy people want a war. Defense Secretary Ashton Carter could order a war but the majority of military officers would say No. General Goldfein might play follow the leader. But he won’t be the one carrying out the orders implementing a war.
We are in for a bumpy ride including a Depression and a sharp devaluation of the dollar.
Does Wall Street fear the military and intelligence services backed up by an angry electorate enough to forget about assassinating Trump?
Do they believe that they can buy a pardon from Obama and flee overseas like Marc Rich to avoid prosecution?
Will the American people and their military leaders make the right decisions after martial law is declared? I see no way to avoid martial law unless Debt Cancellation and the arrest of the Bankers is announced from the White House.
Let me close by saying once again that I am more interested in Trump’s angry supporters than I am in him. I disagree with him on so much. I just believe that we should not let so much hostility towards Wall Street go to waste.
Catherine Austin Fitts: Trump Has A Greenlight From The US Military-Intelligence Services
America’s Secret Multi-Trillion Dollar Black Ops Slush Fund
Debt Cancellation Is The Best Way To Take Down Bilderberg
How And Why An American Military Coup Could Save The World