Real Debt is Real Bad News

Real Debt is Real Bad News, or

Preparation does not guarantee success, but the lack of preparation guarantees failure.

 

As a result of the Newtown School shootings, big-government elites have been hammering HARD for their version of gun control- which is really “victim disarmament.”  Indeed, the push has been more aggressive and contentious than anything I’ve ever seen.  The obvious goal of our government (as the NDAA and NDRP amply demonstrate) is complete and total control of the population, and elimination of any possibility of armed resistance to their hidden agenda.  Oh, we know the agenda is power, but we don’t know the details of why, when or where… or do we?

There are plenty of official proclamations as to how much debt the USA has-$16 Trillion.

But the unofficial debt, using Generally Accepted Accounting Principles (GAAP) now stands at $238 Trillion. 

Against an annual GDP of approximately $16 Trillion, that means that every dollar of value created by goods and services for the next 15 years is already spent.  And that number, by the way, is in today’s dollars.

Current estimates place the current “financial weapons of mass destruction,” the derivatives (or bad debts) outstanding, at $1.5 Quadrillion.  How can one comprehend such a mind-boggling number?  To answer that question, I took the measurements of a $1 bill, and calculated that this amount of money would cover the entire Earth with a layer of paper 1.24 inches thick.  This is the amount of phony debt that is outstanding, waiting for the first domino to fall, where a bankrupt country goes to their bankrupt neighbor to collect, and so on.  American banksters own approximately half of those bad bets- another 38 years of GDP gone.

So while the “official” numbers show we’re in deep trouble, the real data clearly shows the USA isn’t merely financially “broke,” which implies we’re out of spending money…  It shows we’re completely bankrupt, without any hope of getting out of the hole we’re in.

Our main export at this point, isn’t jobs.  That’s already gone, given away to the Chinese.  Now, our main export is financial paper- or electronic dollars, to be more precise.  The problem is that the ongoing collapse of the American economy- the basis of value for the American dollar- has made it obvious that the dollar is about to collapse. 

In the past, the dollar was backed by gold.  This ended in 1971, when President Nixon disconnected the dollar from gold, and let it “float.”  That is to say, the value of the dollar after this time, was a reflection of the value of the U.S. economy.  In other words, it was based on faith that the government could repay its debts.  As I’ve already shown, it is now impossible to repay the debts, and there is nothing left to support the dollar as the reserve currency.  We have no gold, no industry, nothing except nearly 50 million people who are broke, out of work and hungry, and roughly half of the electorate believes the other half “owes” them something (i.e., putting your money in their hands).

The Chinese- no fools are they- have merely taken these worthless electronic digits, and used them to purchase real money- gold.  In fact, they’ve imported literally hundreds of tons of it, in the last few years.  At the NY Fed, where they supposedly store some 7000 tons of gold, much of it belonging to foreign countries.  But that was before the Fed became blatant in their manipulation of gold and silver prices, by short-selling precious metals, to suppress gold and silver prices, while making the dollar appear more stable.  Since the prices of gold and silver have gone up, the NY Fed has had to provide the collateral- gold- to cover the shorts,.  As a result, there have been rumors that the gold is long gone- stolen or substituted with “salted” bars filled with tungsten.  

Germany owns 1536 metric tons of gold at the NY Fed, and they want to withdraw ~300 metric tons.  The NY Fed claims it will take seven years to accomplish this.  Of course, in 1965, France repatriated their gold reserves- in one day, by loading it onto a battleship.  Considering how fast the economy is spiraling down the toilet, seven years might as well be 700.  Now the Swiss are lining up a referendum (which will obtain enough support) to demand that all of their gold comes home, too- all 1040 tons of it.  Nobody knows how much of it sits in New York, but I hope you’re getting the picture.  Basically, it appears that a gold run has begun, where everyone who owns gold at the NY Fed wants it back.

That the NY Fed can’t deliver can mean only one of two things: it’s not there, or what is still there has claims of ownership by more than one country, which is legally (and practically) the same thing. 

Going back to the Chinese, they’ve been acquiring gold for years, at artificially low prices.  As well, they’re buying gold mines and physical assets such as land, all over the world.  In other words, they’re getting out of the dollar, buying whatever they can with it, while it still has some value.  Why?  Well, the IMF announced this week that the Yuan is ready to be the worlds’ reserve currency.   When that happens- and it will- the price of imported goods will go through the roof almost overnight, as every country will attempt to get rid of their dollars while they still can, and use some other currency for international trade. 

The dollar will be dumped as the worlds’ reserve currency, in a cascade as other countries holding dollars run for the exits.  When this happens, the price of products that are imported will go up by 4-5 times, almost overnight (my best guess).   This is the logical result of the Cloward-Piven strategy writ large.

The price of oil- when no longer priced in dollars- will have ripple effects that will cause suffering on a scale never before seen in America.  Consider the trucking industry, in a very real way, feeds the country.  The food you eat, the clothes you wear, the furniture in your house…  even the building materials for the house itself, were all delivered by truck.  As the price of fuel skyrockets, trucking companies will attempt to pass on the costs to their customers (stores like Wal-Mart, for example), who will in turn pass it on to the consumer.  Will the consumers pay so much more?

Consider that while those desperate people who live on the dole may still get their checks (or “deposits” on their EBT cards), it will no longer be able to buy anything, because the prices of everything have gone up 500% overnight.  What will happen in the inner cities, when people realize they can’t put food on the table, much less put gas in their cars?  Gerald Celente summarized it best: “when people lose everything, and they have nothing left to lose, they lose it.”  And they will.   It is my opinion, that the downward spiral will far exceed what we’ve already seen in Greece.  The starvation and violence will eclipse Greece by many orders of magnitude.  The key reason is that we’re the most heavily armed country in the world, and when the wool is pulled from peoples’ eyes, they’re not going to be happy with our government “representatives.”

THIS is the reason why the Obama administration is pushing so hard for “gun control.”  The scam is almost over, and when it is, people are first going to be fighting for their survival.  When they realize that the country has been robbed blind by the corrupt politicians in D.C. (and at all more-local levels of government), they’re going to be out for blood.  The DHS, it has been suggested, is the personal army of the Obama administration.  It’s why the DHS has ordered 1.6 billion rounds of hollow-point ammunition, tanks, drones, body armor and thousands of REAL assault rifles.  They know the American citizens are going to come after them, and they truly believe they can intimidate and disarm the public.  They believe they’re more enlightened than the rest of us, and that we don’t matter.

The government has made their choice abundantly clear.  They intend to retain power over the American people, regardless of the cost.  We are all slaves- taxpayers, tax collectors, police, military, people down on their luck, the middle class…  They’re perfectly happy to use 20 dead slave children- and hundreds of thousands more in the Middle East- to maintain that power, and won’t let any “crisis go to waste,” to gain more power.  Their viewpoint- to be blunt- is that we are ALL expendable.  You need to understand that fact. 

It is my firm belief that the financial collapse- intentionally caused- will create a civil war.  Those who think they can escape to Costa Rica (as a fellow traveler told me on an airplane two days ago), Russia, Argentina or some other lovely Caribbean country, are fooling themselves.  Americans have always been inventors, and our biggest invention wasn’t nuclear power, it wasn’t advanced medicine or the harnessing of electricity.  Our biggest invention was the financial virus which now infects the entire world.  There’s nowhere to run, nowhere to hide.   The pain unleashed from this virus, will unleash an ugly side of humanity, not witnessed for hundreds of years.

I beg you, to get prepared, both emotionally and physically.  There are a lot of forums that go into how to prepare for the collapse, if you do web search.   

There is an old Japanese proverb, “Preparation does not guarantee success, but the lack of preparation guarantees failure.”  Do what you can, prepare as best you can.  There’s not much time.