May 3, 2007
As we slumber into the final nights of our current history the concepts of Goldilocks and the three Bears, Peaceful Co-existence via compromise, and of course, Mama and Papa economics are the ruling world view being expressed by those in charge of the world we live in. It is amazing that the reality being presented to the “people” is quite different from the reality that exists in the world of the economic powers. That is why the event forthcoming to be called “The Blunder” by this author, will make for a logical pathway as to where our future might lie. As I am prone to do in my editorials and opinion pieces, I tend to present a theoretical look at the future, and with this piece, I shall not disappoint. So let’s take a look at the life of Amy, a single mother of three in the year 2012.
Amy was trying desperately to experience “normalcy” with her children this particular Saturday afternoon. It was March 10, 2012 and the weather, as usual, was cold and snowy this weekend in Cleveland, but her kids were trying to keep their smiles and spirits up as she was taking them to the movies to see the latest sequel in the Spiderman genre. The theatre was a good thirty minutes from her home but she felt that her little Toyota, even though it was a 1992 model, was still getting good enough mileage to get her by for this trip and a stop at the grocery store. She knew her rations were at their razor’s edge, especially after she received the violation notice last month and that could be disastrous for her household. As they walked through the half empty shopping mall parking lot the snow started to flutter lightly again in the bleak gray sky. Amy walked up to the window and said “one adult, three children” and has become customary the last two years, handed the teenager behind the glass her USID card and the clerk swiped it. In the cash register display four “9’s” appeared and the clerk, looking nervous, handed the card back to her and said “I’m sorry, you can not see this movie, you are violation of your monthly entertainment allocation and can not see a movie until June of this year.” Amy, stunned asked if she could pay cash then, as she had some left for these types of emergencies. The clerk stammered “I’m sorry but I’m not going to jail for accepting cash, if you do not leave the premises, I will be forced to call security.” At that point in time, the six year old started to cry, his tears freezing on his second hand winter jacket. Amy stuttered out “thank you” and took the children back to the car, now with two children crying uncontrollably. As she reached the car, she felt this trip was wasted so she went to the local Kroger to at least get a little bit of food on the shelves. The stores had become rather barren lately with little fresh produce and that cost a lot of ration points that had to be saved in case of an emergency. Amy tried to get just the bare necessities and since it had been two weeks, she knew she could buy some meat again and picked up some ground beef. Amy was stunned to see the price had risen to 8 points, which was steep, but she had to have some. She noticed that Kroger’s still accepted cash, but didn’t make change and that was of some comfort. But the old U.S. dollar price of $24.99 per pound was of little comfort as she only had thirty U.S. dollars left on her. What a horrible choice to make, but she got one pound so her kids had a shot to grow up healthy. As she made her way to the register, the kids wanted some candy and of course it was very expensive, a luxury pretty much reserved for the wealthy elite. She grabbed a bag of Gummy Bears and hoped that the 4 points allocated would not put her over for the week. As the lines were long and tempers always short, those with cash sailed through the lines, loaded with groceries despite President Clinton’s executive order banning the ownership of cash as of January 1. Most retailers got preferences from the government for assisting in the confiscation and destruction of dollars and set up kiosks to swap out cash for USID cards in exchange. Amy sweated because she had both, a major federal violation of the law now. As she got her groceries on the old conveyor belt, sounding as if it were going to fail at any time, she handed her card to the clerk it got swiped with the four 9’s in the register display again. This time, because it was food related, it was different. The clerk flipped open the display on the credit card machine and asked for her thumbprint. This was basically considered an “oath” in this economy not to violate rationing laws again. Amy, seeing the hunger and eagerness to leave the store pressed her thumb on the machine and the clerk started to swipe the bar codes on the various items. Some items went into bags, others went into a bin to the other side of the clerk. After all was said and done, the Gummy Bears ended up in the bin along with make up, beer, a carton of cigarettes, and coloring books for the kids. I asked if that was being packed separately and the clerk said “no, if you notice on your receipt those are denied items on your card as you are not permitted to purchase those items.” Stunned, Amy asked if she could pay cash for those items or some of them as she really needed the Gummy Bears for her kids who “deserved” a treat in this horrible world. At that point the clerk stammered and sighed, “okay, let me get a manager to over ride this for you” and she paged. The store manager was a haggard, tired soul and as he walked over the clerk whispered the desires of Amy. He said to Amy “you can have the Gummy Bears and two packs of cigarettes for $30.00 U.S. or one U.S. Liberty Silver Dollar, as the government sent a memo out to confiscate silver this week, in addition to gold.” Amy fumbled in her purse and sternly said “here” and got her groceries and left. Another day like this she thought and she would go insane. Since power was rationed and her twelve hours of electricity began at 6 o’clock that night, she wanted to hurry home and enjoy the prescription television being broadcast now, in addition to a little heat in her one bedroom flat. At least she had a job she thought. There were 35 million other souls that would kill to be in her position. The system meant survival to her, and she was happy to at least keep herself and her children alive.
Far fetched you say? More “John Galt Dramatics” you vent? Not really. Not far fetched at all. The technology for such a change is already in place. The economic management programs could be implemented over night. But how would we get there? Is the “BLUNDER” going to be all that bad. Oh yes, my friends, and it will be possibly far worse than I have outlined. As no world war will bail us out unless it is total. We are already losing the next world war without even a draft or mobilization under way. The “Resource War” is being won by our enemies, those who have elected not to go bankrupt to provide a flat screen LCD television in any home. But that’s for another time….on to the “BLUNDER” which is about to change our history forever.
In Washington, D.C. there is a major disconnect from reality. That is demonstrated monthly with the use of hedonic adjustments to create a perverse version of economic reality when the PPI and CPI are presented to the bleating masses on Bubblevision. The real rate of inflation is far north of 10 percent yet we are told it is not. The average Joe goes to the gas station or grocery store and sees reality. Jeans or underwear? They are cheaper according to the government because they only cost $10 more than last year, but are made with better synthetic fiber in the Chinese slave labor factory. Gas is better because it now has TURBOFLUSH additives to keep your engine cleaner and those icky taxes are not really contributing to inflation.
The government, especially that private bankster organization the Fed, knows better. Ben Bernake has been given the keys to immortality, and sadly, the label of the last Federal Reserve Chairman as we know them. Their power as economic dictators since the abandonment of the gold standard has been unquestioned, yet now, as their star should sign brightest, the inability to control the coming events will lead to the greatest blunder in the history of capitalism. Some time, this year, next year or even as late as 2009, the Federal Reserve will either cut interest rates too far or raise them too much.
In scenario one, the cut will lead to the almost over night collapse of the dollar and an explosion into hyperinflation, eventually leading to the hyperinflationary price structure displayed in the story above. In scenario two, a rate increase will lead to a stagflationary increase in consumer prices, but a deflationary collapse in asset valuations, destroying all of the savings and investments of two generations in no time flat. The rock and hard place scenario has been discussed over and over again, but what happens when the rock slams you in the middle of the hard place? What happens when the hard place turns out to be made of brittle razor thin glass and shatters into a billion pieces cutting and injuring everyone as we fall into the abyss. There is no middle ground. There is no way we can sustain or maintain our debt structure and survive this collapse in the same structure we exist in as a nation now. There will be far worse consequences then what Amy in the story above endured. And some will be life threatening to those who do not prepare.
So what do you do? You and I are Joe Six-Pack. The guy or gal who goes to work, pays taxes and tries to be loyal to the government despite the constant perversion of our Founder’s intent. The Constitution will survive but it might be two full generations after we pass this earth for it to be re-invigorated and given a rebirth that saves the world. That is my hope. But you have to survive and help your children survive. Prepare accordingly. Try to plan for this future. And remember that millions of people will try to destroy your way of life, be they Islamonuts, unemployed pathetic souls, or your own government.
I can not train you to free yourself and prepare. I can only advise you to do so.