The Trigger has been pulled, the Crash has begun. How are things going to play out? My take…
February 22nd, 2013
We have obviously crossed the threshold folks, things are falling apart by the day and the game of Kick the Can has at long last gone as far as it can. The rest of the World no longer has a choice, the United States is no longer the big bully on the playground who won WWII and their fingers are no longer so firmly around the throat of the planet. The long lunatic nightmare of Bernanke monetary ponzi schemes cannot continue.
It will be interesting to see what their plan is to try and switch the U.S. (and possibly the World) to a new currency system. My take?
There will be an immediate bank holiday across the board, stopping all transactions of any kind in all avenues of banking and stock markets. This will likely happen on a Friday afternoon, and there will be no warning. A temporary state of martial law will be instituted, in which people are told to basically stay at home as though they are taking a sudden ‘cheap holiday’ and things like trucking of supplies of normal groceries and the like will be the only thing still going on under strict military rules, keeping all emergency supplies of diesel available to those lines of credit used for that infrastructure. Military escorts of supply convoys will be the only thing moving on U.S. highways for perhaps several weeks until they restart the engine under the new rules. Police in all cities will be given total freedom to ‘shoot first, ask questions later’ for any deviation from total movement restriction of citizens. Examples will be made, and the media will carpet bomb the public with this message.
The U.S. will lock down the dollar (both digital and paper) to a complicated SDR basket of currencies around the World, the Canadian dollar will figure heavily in this. This will obviously include devaluation across the board of many world currencies, and some of the currencies (like our Canadian dollar) will also be strictly controlled during this time (wanna know why we care so much? 90% of our economy is still directly tied to you Yanks) The U.N. and IMF will be token heads of an emergency council that all countries of the World will have no choice but to agree to (barring a few examples in the Middle East and North Korea, Cuba, a few South American countries, etc).
Debt restructuring will be performed from top to bottom. The 1.4 Quadrillion derivatives bubble will pop like the veritable tree falling in the forest that no-one hears. The wage structure of the entire United States will be chopped off at the knees when jobs are ‘started’ again, and people are going to learn rather bluntly that their standard of living is going to drop by a large margin. Even when financial markets are loosened on the leash enough to make it look like things are ‘running’, foodstuffs and all energy (gas, diesel, natural gas, propane, etc) will be price controlled from that point on. This could be seen as an enforced Socialist military junta rule, which it is, but honestly there really is no choice.
Production of goods will continue by force if necessary, people will clamor to the new low wage positions because they won’t have a choice. It is either that or starve.