after the dollar collapses, what will happen to the .99 cent menu(WW3 remix)

October 6, 2009

This is not so much witty or interesting or fun or exciting or dangerous or risky or, anything colorful adjectives can keep pinned in a cage of inadequate meaning.  There is a serious paradigm shift occurring before our very eyes.  For those of us who live in these “growth”-based, debt-backed, credit card financed societies, a serious waking up is about to occur.

There is a perfect storm of disaster brewing.  There is a coalition of nations, including Arab states, China, Japan, Russia, and France considering decoupling oil from the dollar.  The significance of this is major.  Those of us who have paid attention to the fact that the Federal Reserve had begun such an inflationary policy as to dig up the dreaded “nuclear option” only used in a failed test on the Japanese market, quantitative easing, (which is essentially to try and drive the value of your own T-Bills up by buying them yourself to drive up speculative buying) have been warning of an international decoupling from the dollar in the pricing of goods… aka the end of the dollar as a reserve currency.  Ever since the Bretton Woods agreement, we have given up any other backing of our currency.  Pure fiat, fake money.  Not just semantically, but in the sense that in a crisis there is no real asset backing.  This is the type of thing that sets the stage for a dollar crisis.

If this decoupling occurs, our currency will be trashed.  If it is trashed, you can look at these new economic alliances as our potential military foes.  The only way our politicians will think to respond from financial moves that hurt our economy so badly as to isolate us from the world… will be to promise us war with the world.

With the growing mistrust of government now reaching new heights… now you have to push your grandfather out of the way to get a word in at a protest anymore, do we really think a government whose only solution is a world war is going to garner popular sentiment?

So the good news may be a forced return to sanity in America.  The bad news is we are going to have to do some pretty complicated things in order to eat shortly.

Whatever it takes, I’m down.  But let’s be realistic.  The greatest generation of our crisis is in its teens right now.  A moment is forthcoming that will bring on a dark period… “out of the depths of sorrow and sacrifice will be born again the glory of mankind,” said Winston Churchill as Hitler’s bombs rained down on his people.

If we want to avoid this dollar collapse without some serious political unrest, possibly resulting in a violence situation, we need to quickly, cleverly, and legislatively move as much power from the federal government to the local government as we possibly can… because if that federal government can’t pay its employees anymore, we may have a hard time keeping things civil.

I just hope that this dollar collapse doesn’t come in the form of a War with Iran, Pakistan, or anyone else.  This is the perfect geopolitical time for China to put its foot down as a world power.  That is a freight train we don’t want to play chicken with right now.  If we wound up in a proxy war with them, our country will have a Zimbabwe economy… while trying to keep a huge war going.  The bankers will sacrifice our military power to Moloch just as fast as they did our industrial economy.  They have no dog in our hunt.  As soon as our credit limits dry up, the bankers will have no use for us.

If you don’t understand the significance of a dollar crisis; imagine what life would be like, short-term, if your currency was not useful for buying goods anymore… and you were required by law to use it anyway.  What if there were banking panics erasing large amounts of digital dollars, along with skyrocketing prices at the pump and grocery store a few months later…

With the declaration of intent of a new geopolitical currency regime… we are in serious trouble.  Seriously.  Like, even if terms like “quantitative easing” mean nothing to you and bore the hell out of you, learn them now.  They will be much more interesting in hindsight when milk costs 9$ a gallon, gas is 10$ a gallon, and you have to quit your job because they refuse to raise your pay every four hours to keep up with inflation.