Leaders and special interests use fear to get gain on both sides of the isle. This is not one of those times. I'm not selling you anything. There are no adds or donation links on my sight. I'm not trying to increase my readership, most people don't want to hear doom and gloom. What I am about write is out of sincere concern for my fellow Americans
The dollar will die
It is no longer a question of if this will happen, but when it will happen. At this moment the dollar is losing it's power as the world currency. Retailers across the globe are shunning the dollar as an acceptable form of payment. China and other nations that used to use the dollar as a reserve currency are diversifying their holdings and curbing their reliance on our currency. Even more disturbing, many central banks are dropping dollars and turning to precious metals. The only thing that has kept the dollar afloat is that it is the currency in which oil is traded.
We are starting to see the effects of the devaluing of the dollar. One year ago today silver closed at $17.90, yesterday it closed at $43.96. We are seeing a similar trend in commodities across the board. While gas prices have been on a steep rise in America, the rise has been subtle in other developed nations. The price of retail goods and services have seen similar rises. This is not normal market fluctuation, this is painful inflation. Unfortunately, this is only the tip of the iceberg about to collide with the unsinkable Titanic that is the U.S. economy.
America's economic might is due largely to the dollar being used as a reserve currency. Because of this status as a reserve currency the dollar is more resistant to inflation than other currencies. When that status is removed we will see rapid inflation. What does rapid inflation mean to the average person?
Checks will no longer be accepted as a form of payment
What business in their right mind would accept a $50 check that will be worth half the value by the time it is processed?
Credit Card Companies will no longer accept dollar transactions
For the same reason business would not accept checks, credit card companies will refuse to process dollar transactions which would end up costing them money.
Banking expenses will shoot through the roof
As businesses shun the dollar more people will seek to transfer their wealth into alternative currencies. Because of the large demand for such transactions, expect the few banks that continue to provide such services to charge large fees.
Banks will fail
If you think banks are failing now, wait until the our currency crashes and government can no longer bail them out with borrowed money. Many people will lose their life savings, and property.
Unemployment will skyrocket
Small businesses will be hit hard with rising prices and diminished capital. They will be forced to lay people off or go under. Large corporations will also lay off employees and cut benefits.
Some local and state governments will fail
State and local governments that depend on federal funding to provide basic services will find themselves in a world of hurt. We will see hospitals close, roads and infrastructure will decay, and law enforcement will be be a shell of it of what they are today.
Pensions will vanish
Government and private pension funds will fail. We we see many seniors struggle to survive in a job market which provides little opportunity.
Social programs will fail
If you think that Social Security and Medicare will survive this, you are sadly mistaken. These programs are heading for collapse even if the economy rebounds. As a result medical costs will rise and services will be extremely limited.
Energy and water rationing
To cut cost and reduce maintenance , many public utilities will limit services during certain hours. Don't be surprised to see the power cut off after 10PM and water rationed.
Many state and local governments will try to stay afloat by raising taxes through the roof. The days of seemingly free public services will end for most Americans.
The overall shock to the system will have a devastating effect on American agriculture. Many farms will go under, and the cost of imports will shoot up. Grocery stores that survive will have empty shelves. For the first time in our history Americans will know what hunger is.
Crime will increase
Many people, in desperation will turn to crime. Drug use, theft and violence will plague us in ways we can only imagine.
Large scale civil unrest
The riots of the sixties will seem like a walk in the park, as people seek revenge on those who promised them the world and delivered heartache. The strife that is occurring now in third world countries will become common place in America. To restore order many local and state governments will use draconian measures to suppress the unrest.
As you can imagine such circumstances will lead to panic and desperation. When powerful nations face such problems they tend to take drastic actions. I'll give you three probable outcomes that could develop out of this desperation.
Soviet style breakup
If we suffer from hyper inflation we may see a Soviet style breakup. While no one wants this now, we may be praying for it soon.
Donald Trump recently made headlines by calling for America to seize the oil assets of Iraq and Libya. While this would make Muslim nations angry, it would also anger nations such as China, Russia and India. Now imagine the anger it would generate with nations after they have already been negatively affected by our defaulting on our debt. As we become more desperate more leaders will embrace such actions. Such a provocative action would likely lead to a world war. I would not be surprised to see many Keynesian leaders (who believe war is good for the economy) try to create such a war. With our diminished capacity to produce, I'm not sure we would win such a war.
Yugoslavia is the most recent example of a developed nation being overcome with hyper-inflation. Almost all of the scenarios I listed above occurred there. The result was tensions that had existed for decades and centuries became inflamed, and they tore themselves apart. Think about how divided we are now? What do you think will happen when things get bad? Talk to someone from the former Yugoslavia and ask them what life was like less than a decade before the war began. They did not think it would happen to them either.
If we ever do have a civil war it won't be anything like the first. It will likely be a brutally long gorilla war with multiple factions. With the size and scope of our military industrial complex; I fear the destruction and loss of life would be beyond any previous civil war.
It's not a happy message, but we are heading in this direction. I am not the only one who can see this coming. I think, we as a nation have less than two months to turn this around, before it becomes be too late. It may already be too late. Now is the time to prepare yourself and your community for what is coming. Most importantly we need to get on our knees.