The Day the Dollar Died

by John Galt

November 18, 2009

The following story in italics is a potential fictional time line for the day the dollar died. I hope not to instill fear or loathing but to give everyone some perspective on a POSSIBLE outcome which does not really take much of a reach to come to any conclusion. Despite popular belief and promises from those who wish to rob you of your savings and investments, the collapse of the dollar might just be an event measured in hours, not days as their control is not what it seems…..

Mike was less than an hour from home in Minnesota after dropping his load off in Fargo but knew he needed to top his tank off this Sunday evening to insure his rig would make it home. He pulled into the Petro Truck Stop just outside of Fargo and hopped out of the cab into the bitter twenty below temperatures which he could not believe had already hit at ten o’clock at night. He slid his fuel card into the pump waiting for the next prompt when the “SEE ATTENDANT” message flashed in the screen. He blustered, figured it was another card problem and whipped out his Master Card and slid it in after the pump reset and again the “SEE ATTENDANT” message flashed up. “What the hell is going on?” he thought to himself as he wandered into the long line of drivers boisterously yelling at managers and clerks alike.

Tom finished up his shift on the docks at the Nestle warehouse in Hampton, Georgia at exactly 11 o’clock at night and decided that because of the scuttlebutt he had been reading on the message boards, it may not be a bad idea to pick up a few cans of food and some toilet paper at the local WalMart Super center. Even though it was a Sunday night, they were always stocked and it was just five minutes out of the way to his home. As he walked inside the store, his mouth dropped. It looked like the day after Thanksgiving sale with every register open and ten plus people deep at 11:30 p.m. “Oh my God!” he gasped as he walked in grabbing the last shopping cart with the wheel that was half locked up.  As he walked as fast as he could to the aisle with the paper goods, he looked at all the shelves then noticed the clerk who looked stunned himself. “How in the SAM HELL does WalMart sell out of Toilet Paper son?” he screamed at the eighteen year old kid. “Sir, I don’t know what is going on. Is the world ending? I’m a little freaked out!” the clerk stammered. Tom realized that he was not to blame and as he calmed down said to the kid “Son, I don’t know what is going on either. It must be an ice storm on the way. Are you folks getting another truck soon?” The clerk said in a very low voice “Sir, I think there are two coming at 2 a.m. I would wait here if I were  you.” With that information Tom slinked outside to his car and called his wife at home just before midnight to tell her he would be staying to wait on the WalMart trucks.

1730 ET…February 21, 2010

It was a typical Sunday night in my household, a tremendous dinner, nice weather in Florida and of course a chance to chat with my friends online about the events of the world. The big news was that on Friday, February 19, 2010 the US Dollar Index closed at 69.07 far below any level in history and of course shattering all known technical support. As I grabbed a glass of Port and settled in front of my computer at 5 p.m. Eastern to watch the Asian fireworks and watch Bloomberg and CNBC-Asia on my computer, I noticed the Middle Eastern markets closed in horrid shape. The Israeli market closed three hours after the open and down 22% for the session. The Saudi markets closed after one hour and down 41%.  Other regional markets did not open or were shut down due to national emergency declarations. As I tuned in expecting the usual repeat on Bloomberg, it was live with a somewhat excited news babe reading information from a blog reporting “rumors” that the CEO’s of Citigroup and Bank of America were in meetings since 11 a.m. with the New York Fed. At that point, it was time to put the port up and break out the hard stuff.

Gold had closed at a record high again, up some $37 to finish Friday’s session up at $1289 and change so I figured it would be jumping again with all of this worldly instability on display. I searched the boards and feeds like mad, looking for anything on an Iranian attack or outbreak of war elsewhere in the world but nothing was found at all. As 6 p.m. Eastern flipped up on my watch, CNBC interrupted their programming with a live update from New York instead of Australia or Tokyo about the meeting at the NY Fed. Bloomberg also broke from their Asian coverage with a brief story but no details as to why there was a meeting today or who else was there.  As the New Zealand markets opened, the prices went nuts but shockingly to the upside. Their markets shot up 11% on the open to break over the 3900 price level but that was not the story. As the futures opened in Chicago for the evening session, no matter where you were in the world that day or night, you printed that screen at 6:04 p.m. Eastern time as the prints were staggering:

Gold UP $212.15 to $1501.15

Silver UP $39.13 to $81.06

US DOLLAR INDEX DOWN 9.5869 or just over 14% to 59.4830

US S&P FUTURES DOWN 49.13

US DOW FUTURES DOWN 472

NASDAQ FUTURES DOWN 135

Holy Smokes!  This was an absurd way to start the night and my phone started ringing along with text messages and emails out my wazoo. The sense of panic was evident on Bernie Lo’s face as he came on to the air discussing what was happening in the futures market and fortunately he announced that Jim Rogers would be joining him after the next break. As the commercial started at 6:09 p.m. Eastern the scroll at the bottom of the screen was bright red with the headline:

ALL U.S. EQUITY FUTURES ARE LOCK LIMIT DOWN…..TRADING SUSPENDED UNTIL 0900 ET MONDAY FEB 22….US DOLLAR BEING SOLD ACROSS THE BOARD

By 6:15 the Euro was trading at $1.92, the Kiwi (New Zealand Dollar) at $1.26, the Aussie Dollar well beyond par at $1.39 and the Canadian Loonie rocketing past par to $1.33. The U.S. Dollar was in a full fledged collapse and the world was putting money anywhere they could to escape the carnage. As the New Zealand equity markets struggled to handle the order flow an announcement emerged at 6:27 p.m. Eastern time that they would no longer accept U.S. dollars within their nation for the next 72 hours until the United States Federal Reserve Bank introduced stability measures.  That instantly turned a huge move to the upside to down 17% in less than three minutes and soon thereafter, trading was suspended by 7 p.m. Eastern time.  Instead of waiting to see what was next, I left at 6:51 p.m. to run down the street and take $500 from the local grocery store ATM,  returning just in time for the top of the hour news.

1900 ET

The Australian markets attempted to open but due to order imbalances they were delayed twenty-seven minutes. It was a buying frenzy in Australia also as the Aussie Dollar was skyrocketing higher and gold continued to gain, now up $273.20 per ounce in less than two hours of trading. The Chicago board was going to make a statement at 8 p.m. ET and the world was holding its collective breath because something bad was happening again in the United States and everyone wanted to buy into foreign markets to escape the American disaster on the horizon. After a brief opening, the Australian government followed suit with the New Zealand announcement and suspended acceptance of the U.S. Dollar for commerce until further notice. The Japanese were very quiet in the mean time as they announced at 7 p.m. they would keep their markets closed but the huge move in the Yen caused massive concerns as noted by the central bank. The yen appreciated from a close of 79.8213 on Friday the 19th to an opening of 48.7326 in less than an hour of trading. Nobody wanted dollars and even fewer people it was discovered wanted the British Pound.  The Pound for the first time in its history was worth less than 100 yen and it was well on its way to joining the US Dollar in a death spiral.

2000 ET

The internet is crawling. Message boards were lit up with record numbers of participants. Rumors swirled about declarations of martial law, bank holidays, secret wars and other crazy things. Yet my phone messages, conversations, texts and emails told me there was something very very wrong. Two of my friends called me to tell me the consequences of the failed 30 year bond auction last Thursday came home to roost over the weekend. Citi and BoA were rumored to have a huge CDS obligation due to the interest rates being blown outside of the norm and the 6.05% yield from the auction cost the banks an estimated $400 billion each if  they were forced to settle open swap contracts and derivative issues by Monday or the end of the month. The swaps and derivatives which were to prevent the collapse may actually have finally started it but nobody could verify anything that was happening as the NY Fed looked like a war zone with hundreds of cameras around the building and reporters speculating endlessly on every cable channel.

2100 ET

I did not know who to believe but when Bloomberg played the excerpt from Jim Rogers’ interview just after the top of the hour where he said “this is what a currency collapse looks like and if you were not prepared, you were wiped out” really resonated with everyone on the Bloomberg set and throughout the news worldwide. The Chicago Futures were closed by order of the CFTC and SEC and that was the big announcement but it was assumed anyways because there was no way the COMEX or anyone else could possibly have kept up with the demand for precious metals as the last print had gold over $1579 per ounce and worse, the base metals closing at obscene prices like $6.79 per lb. for copper! The Shanghai markets were ordered open for domestic participants only and no overseas selling was allowed nor trading in US Dollars thus allowing the communists to manage their banking situation without outside influence. Unfortunately a rumor was confirmed on FNC later in the hour that Chinese troops were deployed to all U.S. and British bank branches inside their nation. That only permeated the panic already felt on the internet and in the air. The news at the top of the hour was even more shocking.

2200 ET

CNN led the hour off with coverage of the “FINANCIAL CRISIS OF 2010” with breaking news about two hedge fund managers committing suicide in their offices in New York. That did not help the confidence level nor did the statement from Treasury Secretary Timothy Geithner at 10:09 p.m. Eastern that the “government was in full control of the situation and that the panic world wide was unwarranted.”  When he finished the statement assuring that the financial markets would probably open on time in the morning, the snicker from CNBC’s team of Gasparino and Griffith spoke volumes about what was really occurring.

2300 ET

Somehow a picture of Goldman Sachs CEO Blankfein and JP Morgan’s CEO Jamie Dimon entering the New York Federal Reserve building was leaked out and broadcast on cable news and financial news outlets causing more discussions and a genuine sense of panic to grip everyone. Reports about credit cards not working for the last two hours nationwide were swamping the newsrooms but no comments from VISA, Master Charge or anyone else was forthcoming.

0000 ET February 22, 2010

It was officially a panic. Reports on local news stations about grocery store shelves being cleaned out and ATM machines running out of money hours ago and not being refilled were broadcast nationwide. Even my local station had a story about accessing the reporter’s bank account online and all they got was a very scary message as they attempted to reach his bank’s web page:

404-NOT FOUND

0100 ET

WWOR and WCBS started reporting that gas stations in the New York City and northern New Jersey areas were running out of gas even though credit cards did not work. The cable news stations and financial news networks just recycled earlier news with updates at the top of the hour. The world markets were closed and everyone was holding their breath to see what happened the next morning.

0200 ET

As I struggled to stay awake, NY Federal Reserve President Denis Hughes came to the microphones with Dimon, Blankfein and shockingly Ben Bernanke. Hughes immediately deferred to Bernanke who said that the President would address the nation at 7 a.m. Eastern Time and that he felt the crisis was averted for the moment and that everyone should have faith in the United State’s policy of a strong currency and banking system. After that statement was concluded, Bloomberg switched to a banking analyst from Singapore who said that the U.S. was now a hulking smoking black hole in the ground and the only thing it was good for was to return those worthless dollars back to “THAT” nation so “THEY” could burn them to stay warm this winter.

0300 ET

Someone on the message board posted a story from WTOP that military police were seen setting up roadblocks throughout Washington, D.C.  There was no video or other confirmation within that hour. I had to make double strength coffee at that point in time but instead set my alarm for 0500 to try to grab a nap. I was not about to miss what was going to be a day to remember in American history.

0509 ET

So sue me! I hit my snooze button then realized I fell asleep with the computer and television on and the news was flying. In big bold red at the top of CNBC’s screen was the announcement COUNTDOWN TO SPEECH and a counter moving towards 0700 Eastern. As I flipped the channels half awake, I noticed a BREAKING NEWS announcement on CNN and there was a feed from WSB in Atlanta, GA with their helicopter video of the Georgia State Patrol closing off all streets within three blocks of the Federal Reserve Bank in Atlanta and also around the Federal Home Loan Bank. That sent a chill down my spine as I flipped back on to the computer to see over two hundred unread emails and message upon message about shortages, internet outages, credit card problems and worst of all, gas stations running out of fuel. The other shocker was the suspension of international flights in many U.S. cities as the suppliers put every airline on C.O.D. effective immediately at 2:30 a.m. Eastern Time and that suspended a ton of flights inside the United States and worldwide. The cascading effects were stunning, even to those of us who were warning about it.

0530 ET

Several European markets attempted to open in coordination with Middle Eastern markets but the declines were so severe that within ten minutes of trading the authorities shut them all down within a half hour:

Russia -35%

Saudi Arabia -43%

Israel -22%

Switzerland -17%

Germany’s DAX -41%

CAC 40 – 29%

FTSE 100 – 32%

The Euro was up another 10% against the dollar and the Swiss Franc was now worth over $1.40 U.S. As the discussions about the problems with the U.S. dollar accelerated, banks were being shut down in Europe in nation after nation to prevent runs. Sadly for the Brits, the Sterling was now trading so poorly in Europe that it was worth just 1/3 of a Euro at some trading desks. By the top of the hour, video of riots in front of banks in Frankfurt and Glasgow were broadcast nationwide.  At 5:55 a.m. Eastern the news took a dark turn with this BREAKING NEWS headline:

OBAMA AND BERNANKE TO SPEAK TO THE NATION AT 6 A.M. EST

0600 ET

The speech was low key, solemn and to the point. Obama announced a one week bank holiday. All credit card transactions and all collection actions of any sort were hereby suspended for seven days.  All financial markets were closed until further notice.  All mortgage and bill payment due dates were suspended for thirty days and no past due notices nor penalties were to be allowed by Federal Law. All schools were closed for seventy-two hours be they public or private.  The city of Washington, D.C. was hereby declared to be under a state of martial law and all citizens were ordered to observe a curfew from 8 p.m. to 8 a.m. daily. Just as that sunk in, Ben Bernanke stepped up to the microphone to announce that President Obama, Treasury Secretary Geithner and all of the Federal Reserve Presidents along with himself were going to depart for Geneva for an emergency meeting of the G-20, IMF, World Bank and United Nations Financial Stability Working Group.  Bernanke also announced that Citigroup, N.A. and Bank of America were hereby nationalized and placed under control of the United States Treasury under the auspices of the FDIC and that Sheila Bair would have an announcement at 8 a.m. Eastern. As he finished the announcement, an obviously exhausted Federal Reserve Chairman concluded by assuring the citizens of the nation that a stable currency was their only goal from this meeting of world financial leaders. I noted he did not say what currency though he was referring to.

0800 ET

By now, CNBC, Fox Business and Bloomberg were knee deep in wall to wall coverage but so were the broadcast and cable networks. America was on the brink was the preaching and screaming and the “bulls” were being gored by the permabears every time they uttered any statements about “how we’ve been through worse” etc., etc.

The announcement of the seizure by the FDIC of two of the largest banks in the world was pretty standard and short. The follow up statement by Ms. Barr though is what caused every newsroom to take pause when she stated that “further consolidations will be announced in the next seventy-two hours.”

The Bubblemedia was stunned and even shocked when Canada announced that they would attempt to open their financial markets for two hours of trading and that their banks would be open for normal domestic customers and business from 10 a.m. until noon Eastern time.  Everyone on television looked at each other and just asked “How?”

0900 ET

I had forgotten to call in sick to work but then again the phone call from the company owner was pretty much a “well now what” as we laughed in a gallows humor discussion. He understood why I was home and he had already told the employees that he was closing at noon and would reopen when we could actually collect real money on what we sold and leased out. I told him I would call him at home later or meet him with a bottle on the golf course in the morning, weather permitting.

The chilling video of the Federal Reserve heads, Geithner and Obama boarding Air Force One to leave for Geneva from Washington, D.C. really had an impact on me.

1000 ET

The Canadian markets opened up 10% in ten minutes then rolled over down 31% by 10:30. The scary part was that the Canadian dollar kept on rising even though commodity trading was suspended and everyone was wondering just what gold would be priced at if the markets were allowed to trade.

As the day wore on, it was a blur of shocking story after shocking story. The President and his entourage arrived in Switzerland along with other world leaders but little was discussed or disclosed. The reports of banks being fire bombed by nuts throughout parts of the U.S. made the international news and caused all of us to feel somewhat uncomfortable as to what was next. The 8 p.m. interruption of normal prime time programming with a FEMA NEWS ALERT which lasted ten minutes and was repeated at the top of every hour with little if any information caused even more panic in the masses. Today I watched our dollar die in a matter of hours even though I knew how it was killed months if not years ago. I just wondered how bad the announcement out of Geneva was going to be as our bankers and politicians sold our souls out to save their rear ends.

I also wondered if I would ever sleep again.




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The Day the Dollar Died by John Galt by John Galt is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Based on a work at johngaltfla.com.
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178 Comments

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178 responses to “The Day the Dollar Died

  1. graham Todd

    When are you going to write the book?
    I have run out of really great dramas and this looks like the beginning of a best seller!

  2. RCP

    Dude, you need to write screenplays! This would be a great opening scene to a TEOTWAWKI movie.

  3. Matt

    That’s a beaut!
    Most people don’t realize how fragile this whole dog & pony show is.

    I hope we don’t experience what you have written, but I think it is almost written in stone at this point.

    Goldbugs mostly hope for higher gold prices. What most of them fail to recognize is what society will look like at higher prices. Gold prices are a direct reflection on the state of the economy, and the currency of the country. If $5000 gold ever happens, we may not want to be around to see it.

    Hope for the best, prepare for the worst…

    Thanks for a most entertaining read again.

  4. CarlnCarol

    A great read as always. Thank you.
    What surpised me was walking through the aisles in my local Supercenter is how much of our food is imported, from canned goods to fruit cups. When the dollar is worthless what will companies use to purchase these goods. I believe alot of folks will be seeing major weight loss programs beginning next spring.

  5. Good and more or less realistic one. however, it makes sense to provide such a scenario with something like 9/11 so the government will be able to blame the disaster on someone yet. Do you agree?

    I am going to translate the article and publish at my blog in Russian (with reference to your blog), any objections?

  6. Administrator

    Alex, translate your heart out. I don’t think you’ll have to worry about a 9-11 scenario. Our own incompetence and arrogance will trigger it.

  7. Richard

    John: What you wrote is every bit as good as the beginning chapters of the book “patriots” By wesly rawles.
    Such a outcome of the current state of things is looking more likely every day.

  8. Pickdog

    I agree John – when this happens, no scenario but our own stupidity/hubris will be needed. That being said, it is time to add to one’s preparations as we head to the end of 2009 and enter 2010. I suspect 2010 is going to be a very bumpy and painful ride.

    Pickdog
    III

  9. Jet Graphics

    Pursuant to Title 12, USC Sec. 411, a “dollar bill” (Federal Reserve note) is NOT a dollar. It is a promise to pay face value – in dollars – in the future. That promise was repudiated in 1933 – over 76 years ago.

    For over three generations, Americans have lived under a perpetual “temporary” State of Emergency, with no real money in circulation, and no one lawfully paying their debts. (See Art. 1, Sec. 10, USCON)

    Thanks to 305 million “human resources” pledged as collateral on the impossible national debt, worthless notes have circulated as “legal tender”. However, when foreclosure happens, I do not think they will be happy with their indentured servitude.

  10. Wow. I had no idea what it would look like in the event of this sort of thing actually taking place so I was looking online for a good summary…..this is pretty scary.

  11. I only wish I could have written that piece. Nice job! I’d like your opinion of “State of Seige” on my blogsite.
    http://www.reynoldswrapcap.blogspot.com

  12. joe

    One can only hope this will happen soon

  13. MDS

    What’s amazing to me is not that this could happen. What’s amazing is those of you who think your gold, silver, foodstuffs, and guns will save or protect you. You’ll be like the rest of us…..and those two Hedge Fund Managers in Galt’s story….only you just don’t or can’t see it, yet.

  14. Dee

    Now is the time to watch “Fall of The Republic: The Presidency of Barack H. Obama” and “The Obama Deception” and now is the time to attend the End The Fed Rally coming up this Sunday, November 22, 2009 at your local Federal Reserve branch. Tell all your friends, family, neighbors etc.

  15. John Galt, another excellent post and I heartily agree with the other comments. My only thought, you under sold it. When (not if) it happens it will be much worse. If you were totally honest you’d need a disclaimer up front:

    The following comments may frighten unprepared liberals.
    Conservative Discretion Advised.

    P.S. – linking to this on my blog.

  16. Pingback: Where Are We Headed? @ In The Eaves of the Blogosphere

  17. Randy

    Coming soon to a nation near you…..

    Excellent post. Chilling, but the first realistic scenario I have read. Thanks for having the balls, and courage to write it.

  18. OhioDude

    A very likely scenario.

    The widening gap between Talking Hiardo pronouncements on the idiotbox and Reality is a leading cluebat.

    I’d encourage folks to read the Alpha Strategy, and secure Maslow basement-level supplies first. And info. And some tangible skills.

    Only after that would capital preservation via metals be indicated. Silver’s gonna be a bargain for a while still; but not for too long.

  19. jg

    Thrilling!

    Seems plausible, too. I spend my free time preparing my family to survive in exactly this scenario.

    Great work, sir; keep it up!

  20. FHL(C)

    thanks John,
    its happening, you and others, myself included, picked up on the mammon angle years ago, and have been warning about the consequences, but ordinary people dont like coming out of their comfort zones unless they are forced too, so now the next phase approaches. What is your insight view of what will befall the continental US over the next 3 years?

  21. mockingbird

    Brilliant work, and I am spreading the link.

    Is this a free-staning piece of work, or a chapter from something longer?

    If free-standing, I find it a little bit confusing to jump from the Mike the trucker and Tom the dockworker to the narrative of an unknown, but more literate, sort of narrator.

    Nonetheless, it is a stunning work, and I do not mean to offer any but the most constructive of suggestions. Perhaps you mean Mike and Tom as “snapshot” vignettes. They work well in that context.

    I for one am hoping to see more of your excellent writing.

  22. Pickdog

    btw – published with proper citation here:

    http://texaspreppersnetwork.blogspot.com/

    This was a very great piece of writing.

    Pickdog
    III

  23. Carl W. Livingston

    I was in WAL-MART this past Sunday. Oddly, I was thinking of how full the shelves were, and yes, I also commented to my wife that everything on the shelves seemed to come from somewhere other then the United States.

    I also thought about just how quickly those shelves would become bare when TSHTF.

    So, while things may well get very bad, I’ve been preparing for quite some time. I’ve managed to accumulate more then a years worth of food. That, and I’ve been buying a few hand guns and rifles over the past year. In particular, I’ve been spending money on ammunition – each and every week. When the dollar collapses, barter items will be the new currency, at least for a while – and ammunition will be at the top of the barter list.

    Prepare, people! Prepare as much as you can, with what little time and resources you have left!

    While this story is fiction, and seemingly at the edge, our financial system is already rolling over the edge and it can’t be pulled back!

    God speed! And, happy camping!!!

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  26. Joe murray

    “They” know that this will happen.
    Why are they letting it happen?

  27. Carl W. Livingston- I am looking for advice on how to stock up on food and supplies- Would you mind sharing any tips with me? How long did it take to stock up on that much food? How did you find the best bargains? What do you consider the neccessities? Etc… If you click my name you can reach my blog, I have a contact form from there. I would really appreciate any advice, I have two small children I am worried for….

  28. larry

    Abseloutley brilliant. I don’t know about all you other “aware” folks out there but sometimes i wish i was still amongst the idiot sheeple. being cognizent about what is soon to happen does not make for restfull nights or a calm intestinal system no matter how much prepping has been done.

  29. John

    Fantastic. Brilliant. Hopefully this will help wake a few people up that it not only could happen but most likely will happen.

  30. David

    We don’t need to go to Geneva to fix what’s wrong with the FRN. We only need for Congress to take it’s rightful position and issue non-debt based USD’s, while at the same time repudiating any debt to the Federal Reserve. Just spend the money (a fiat- market basket stabilized USD) into the economy without borrowing from a Central Bank. That would be the right thing to do. Sadly, after watching the Universal Health Care Fiasco in the making, it’s not likely to happen.

  31. David

    Just to make matters worse, Walmart and most stores rely on a “Just In Time” process for their inventory. There are no local warehouses full of food and goods now, because the Just In Time concept tells the manufacturers when to make and ship (Just In Time to sell). When TSHTF, this system is going to explode like a two dollar watch. IT would be a very good idea to stock up now.

  32. Stephanie Hatcher

    Frightening and yet so plausible. I have read James Wesley-Rawles’ book “Patriots” and this is very similar to his outline of how TEOTWAWKI will play out. Each day it seems less like fiction and more like prophesy.

  33. Captain Joe

    A realistic tale of what’s coming up in the near future.
    It’s time to stock up on food, ammo, batteries, gasoline, emergency supplies, etc. This story will play out this winter.

  34. restless native

    Patriots Survive the comming collapse by John Rawles picks up where you left off

  35. Mark Ruby

    Everybody listen-up. The time for talk is past. Anyone who now does not prepare for this type of scenario is in denial. Please be aware, all you ordinary people, like you and me, that the people in power in this country are well aware of this COMING scenario, and have all surrounded themselves whith whatever they will need to survive. Do you really think they give a tinkers damm about you?

  36. Bill V.

    Great! But why did you rush to an ATM to get 500 greenbacks if they were going down the tube? What did you plan to do with them? Oh, maybe you needed enough money to get a morning paper, eh?

  37. Dave

    I have been worried about this for 3 or 4 years now,I now have about 1 year’s supply of food,a water well on my property so that even if the electric goes out(I have city water),I will still have drinking water.
    As far as guns,gold,ammo,that’s a done deal as well.
    I sleep like a baby at night.

  38. Chris

    John Galt,
    Scintillating! We await the next chapter.

    Kristi,
    You should check out survivalblog.com

    Everyone else,
    Pray for protection and wisdom. God has a way of giving nations what they deserve. There is always a remnant though and they are usually the ones who saw it coming.

    Amos 3:1-11

    Haggai 2:6-9

    Habbakkuk 2:1-4

  39. Dr. Prepper

    NOT FAIR: You can not leave it where you ended….There is soooooooooo much more ….Please keep going…it will only get better (worse in the book)
    As othere have posted …maby this will get peoples heads out of the sand and look what is really going on with our dollar!
    Dr. Prepper
    Sp. Calif.

  40. idahojoe

    “Who is John Galt?”

  41. minafiore

    Who is John Galt?

  42. Jim ODonnell

    Nice job John. Many on the comments probably don’t know who John Galt is in fiction, but if this happens they are going to discover: “Who Is John Galt?”

    In fiction it was a bit different but the outcome was the same. John Galt will address the nation tonight, blared the headlines. In the end John Galt traced the sign of the dollar [gold] in the air, and announced that it was time to return and rebuild.

  43. Hi. This is alex sword.

    Russian translation is here – http://alexsword.livejournal.com/42123.html

    And it was included into top-10 of records in Russian blogosphere. In other words, it’s very popular. My congratulations, John.

    BTW, I strongly recommend you to study a history of previous major collapse of financial system in Europe in 14th century.

    It was started with bankruptcy of Eduard III and result was quick desintegration of banking system, a collapse of political system as well.

    I recommend you to find work “New Chronicles” of Giovanni Villani, a former top-manager of 14-th century’s version of Citigroup, and study it.

    You will find there not only “day first” description, but the whole story.

    and once again – thanks.

  44. Michail

    Well, near the collapse US is gonna commence act of terror on it’s land, saying for examble “That was Pakistani nuclear bomb! OMG! They are guilty!” and then “Due to this disaster our economy having hard time, so it’s nothing to do with what we were doing all last years, it just happened now :-(”

    Good luck there, honestly 🙂

  45. Chad

    It’s Sheila Bair. NOT BARR.

  46. BJ Lanford

    I wonder if all the talk about a trial of the 911 terrorist inside New York and the great rush for a health care bill are nothing more than distractions… a way to keep the public distracted from what is happening to the dollar and the consequences they will suffer. Few commentators are talking about it.

  47. Pingback: The Prophetic View News! – November 18, 2009 « The Prophetic View News!

  48. Bernard Romanycia

    Fortune cookie say : “Who put the worm in the buy buy american pie?”

  49. Robert

    How is the best way to store gas?

  50. Stephen

    I hope you won’t mind a question…which anyone is free to answer. I have the ability to put my 401K money in different funds, but not gold (sadly). Even as all markets crash, would the difference in currency values make it smart to put my retirement money into foreign stock instead of domestic? I am federal employee (scientist) and my options are truly limited. Thanks for any ideas anyone would be willing to share.

  51. Douger

    Damn !
    I need to go check the bearings in my windmill and collect my eggs.
    You guys have fun with your Visa cards.

  52. PETER S

    I have bad news and good news. The good news is that it is doubtful that things will get so bad just out of the blue and so suddenly. The bad news is that if things do start to go bad, they will be a lot worse than outlined by you.

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  54. Tom

    yeah….we really need health care for illegals and bait and switch for the enviro cultists…..

  55. IndianaJohn

    I went rural 10 years ago and will help the old and the good as best I can.
    I feed hogs and taste their feed now and again. It is as good as anything in the meal bin at the healthfood store.

  56. maggiemoos

    I’m with Douger. I have to go out and milk the cow and collect eggs. And later, I have some chicken butchering to do. At least we won’t be hungry when the stores run out.

  57. John

    The dollar is eventually toast and there is nothing you can do except prepare for the financial tsunami. Protect yourself and your family as best you can. This all you can do. The real-time essay created for us by John Galt is a good one, but it probably won’t be that bad. It will be worse.

  58. Fedayeen

    Let’s throw in some geologic or climate events and then you got a great film, only this one is real.

  59. npd1969

    Well written, John. When this scenario happens, or something very similar happens, I imagine those arrogant, know-it-all Vomit Brokers on CNBC, Faux Business, CNNMoney and the other networks will be shouting at the top of their lungs saying: This is the Buying Opportunity of a Lifetime. Get out there and Buy Stocks. Plus they’ll keep on saying that the Good Times are just around the corner.

  60. Marianne

    Great article, but to real for my liking, we have gold and silver bullion, gold and silver stocks, have food put away etc all one needs to live on. We live in Canada and heaven knows if that was to happen in the USA we would feel some of the effects here in Canada. I think in the US all citizens should start to get dry goods in and toiletries and keep some cash in the house nothing in the bank, for I am sure that this scenario is a warning told in a fictitious type story. John Galt is warning everyone in a kind and gentle way what is going to happen

  61. Kevin 927

    http://www.survivalblog.com This website will answer most questions posted here.

  62. jdb

    Kristi, someone mentioned SurvivalBlog. While I don’t share JWR’s belief that the government will utterly collapse, there’s some good prep info there. I also recommend a blog called “Surviving in Argentina” (they went through a similar scenario a few years back) and The Survival Podcast.

  63. Dennis

    Great Vid.. I disagree with Peter.. I think it could happen virtually over-night.. I play around with currencies and read a couple of forums.. Everyone knows there is something up and the stats are lying.. Nobody wants to be the last one out of the burning room..

  64. Dennis

    ooops.. not a vid.. blog.. sorry.. use to commenting on videos.. LOL

  65. John it is interesting that you selected 2/22/2010 as the day the dollar died. That is date that I have found ciphered on the dollar bill in relation to the fall of the United States. The article is entitled The Dollar Code located at thecomingepiphany.com

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  68. Jonas Parker

    Peter, I’ve got bad news for you… look at the time-line for Iceland’s crash… then prepare accordingly. Better yet, read FerFAL’s book on the economic collapse in Argentina in 2001. History does in fact repeat itself regularly.

    Good job, John!

  69. truthseeker

    How will we outside the US be affected? Will we also have a problem getting out our Euros, kroners?

  70. LANCE

    Those of you with 401(k) [worthless paper] assets whether federal or private employees need to take the MAXIMUM in-kind distribution allowable by your plan and roll the proceeds tax-free into an individual retirement rollover (IRRA) account which DOES permit/encourage precious metals investment. All after-tax savings should be immediately diverted to REAL TANGIBLE ASSETS and withdrawn from the WORTHLESS PAPER markets immediately.

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  72. ed reader

    Science fiction,but fun to read.People who sit around watching TV might believe this stuff but if you live and think in the real world,you know it is just another Star Trek episode.

  73. LH

    John, Where are you? Something just happened:

    The last time Bill yields turned negative (in essence investors paying the Government to hold their money for them) was in the days after the Lehman bankruptcy, when the entire world was about to blow up. So why did Bill yield for January maturity just turn negative once again? In other words, why are investors suddenly running for the hills? As Dow Jones reports, January and February bills hit a yield of -0.03% earlier.
    http://www.zerohedge.com/article/post-lehman-deja-vu-t-bill-yields-turn-negative

    Also from the comments:

    WOAH!!!!!!!!!!!!!!

    This is what caused the Japanese sell off!

    This is what caused our sell off!

    This is the watershed signal events…. this destroys quant models

    INTEREST CANNOT BE NEGATIVE….. When it becomes negative in real terms, forget about it. Somewhere, someone just went bankrupt!

    John can you comment?

  74. Ben s

    Shouldn’t we take “In God we trust” off of our currency now?

    His Name is sacred, and should not be attached to paper seen as worthless. May He have mercy on all of us.

  75. blackoak

    The collapse is already starting. Carefully read the following article.
    http://www.kitco.com/ind/willie/nov182009.html

  76. Hey, thank all of you who contacted me and offered advice- here, on my blog, as well as through email. It’s really really nice to know that people will take time out of their day to offer advice to a stranger, God bless all of you, everyone has been really helpful, you all are awesome.

  77. bobby

    I have a friend who is from Germany and is so afraid that he has over the last 15 years collected a lot of silver and gold coins in case of such a senerio. He has also made provision for collecting long lasting foods that are dried and have a self life of 12 to 18 months like rice,dried lentiles,beans and so forth.He feels strongly that such a senerio will happen. He says what the worse if it does not happen.He has S3000 to $4000 of grocery that cannot go bad which he can use on a continuous basis.For him this is survival food.

  78. Newblood

    Now buying Silver Eagles on eBay, in 20 coin rolls, on any pullback in price. Also canned meat and fish, ammo, Jack Daniels by the case. Be smart, be prepared, it’s coming.

  79. Gary

    I live in Canada, take note where a lot of our food comes from, the USA, China. Distribution system would be shut down re transporting across the border. Our banks would shut down, you cant even take out more than 1500.00 per day as it is, our credit markets would also shut down.

    People had better take this seriously as the smart people moved their money out of Argentina before the collapse, to Uruguay, Brazil, Germany etc. If you buy gold store it in Canada, or at least open a bank account here or in Europe. Buy a extra freezer, stock up on, wood, gas, prescriptions.

  80. For even a more complete look at the coming Trouble for America, check out “The Epiphany Deception” @
    DeceptionDay.com
    !!Shocking!!

  81. The writing has been on the wall for decades, no-one who has neen paying attention should be surprised, the planned location of the World Govt is in Jerusalem just in case you haven’t guessed who will be your new leaders:-

    “We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest or consent.”

    James Paul Warburg appearing before the Senate on 7th February 1950

    In Jerusalem, the United Nations (a truly United Nations) will build a shrine of the Prophets to serve the federated union of all continents; this will be the scene of the Supreme Court of Mankind, to settle all controversies among the federated continents, as prophesied by Isaiah. Higher education will be the right of every person in the world. A pill to prevent pregnanacy will slow down the explosive natural increase in China and India. And by 1987, the average life-span of man will reach 100 years.”

    Time magazine’s interview with David Ben-Gurion, of August 16, 1948

  82. StatsGeek

    John Galt — Someone mentioned that you should I write a screenplay. I’m thinking about doing that myself (not with your story but with something to try to wake up the Sheeple of America), seriously. Can you give me your email address? Or send me an email at scottjcole@yahoo.com. (This is my spammable account, so I don’t mind posting it publicly).

  83. Mike Schurr

    great narrative, scary but great…I am curious though…what make you think your internet would work if this happened?

  84. Traitor

    Nice read. I find it disturbing that so many people shop at Walmart.

  85. wcmillionairre

    Nice read, although I also wonder why the internet would be working in this scenario, especially considering what our “good friends” in Washington have been recently proposing…

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  87. time is not on our side…collapse is unavoidable….the best move is land with water and stored up organic seeds…dry goods and toilet paper,firearms,gasoline an above all prayer..

  88. Chris

    Moshe talks about the one world government.

    Twice, once before the joint session of Congress, and once during the 11-9-09 celebrations for the 20th anniv. of the wall’s demise, German chancellor Angela Merkel talked about the need for sovereign states to yield up most of their competencies to supranational entities,and stating that this should be done “…no matter the cost”.

    That about sums it up for all of us peons.

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  90. John

    I am a physician, an anesthesiologist.

    I have spent considerable time calculating how long we could continue to conduct surgeries if our area or the U.S. was cut off for any reason, since meds are produced all over the world, usually in one or two factories per drug, generally overseas. And because hospitals have so little in their formularies. (They run close to “on demand”).

    We could run our ORs about four busy days. If the mds and nurses and techs abandoned their families to work.

    Then think about the medicine family members, friends and neighbors take daily.

    There is no question in my mind that the largest cause of death in any widespread disaster that cuts off the U.S would be “rebounds” from citizens cut off from their meds. Heart attacks, diabetic crashes, strokes, suicides, injuries untreated, etc. would kill at least 25% of the populace by my calculations.

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  93. Lemontre3

    Will need to get the garden growing and doing a cookery course.
    Services will cotinue to be in demand, such as dental vetinary, agricultural
    the list goes on, even to entertainment.
    some garage sales coming up?
    will be a shock if the shelves become empty at the grocery, i have thought of what that be like

  94. Nitrous

    That was awesome. The adrenalin kicked in as I was reading it. I am not in the US though I have my gold, food and heating already stocked up (which I only started doing in the last 6 months – so not a die hard survivalist nut). Good luck world, this is our future.

  95. bob

    Can someone suggest a plan of what to do with cash? To open a Canadian bank account you have to go to Canada in person. There has to be a better way. I would love to hear suggestions

  96. Jonathan M Mergott

    yup, that pretty much sums it up. buy gold, leave no cash. If you have a safety deposit box, empty it and buy a good safe.

    In such a situation the three most important things you will need for survival are the three g’s…

    Gold, Guns and God.

    -J

  97. JULIA RAMOS

    THIS SENARIO IS FRIGHTING.DO WE HAVE TO WAIT FOR THIS OR CHALLANGE A REVERSAL. SECURE THE DOLLAR AND STOP SPENDING.I AM IN FAVOR OF FAIR TAX AND HOPE IT COULD BE THE FIRST STEP TO STOP THE DESTRUCTION OF THIS COUNTRY AND THE MONETARY SYSTEMS. SPEAK UP AMERICANS WE ARE THE PEOPLE.

  98. TMc

    The scary thing is this isn’t too far off from being right on. check out http://www.chrismartenson.com “crash course”

  99. Ricky

    Enthralling read! Also, it’s very realistic. I’d like to read more!

  100. Ricky

    …and I shall. (I realized that there’s a continuation to this series.)

  101. Paul

    When this happens will the Cowboys still play next Sunday?

    Just kidding, I hate the Cowboys!!!

  102. frances snoot

    That’s not the way it’s going down. If the dollar collapses it will take out the euro and the EU/ECB is not ready for that scenerio yet. You know that the dollar is traded in a basket with five other currencies: yen, loonie, pound, euro, krona. The sdr-manipulation game will support the basket until it is time for the basket itself to become obsolete.

  103. Joeyman9

    Man, you gotta finish this! What a great read.

    Please take it to the point where money reemerges as gold and silver as it did in Cambodia after Vietnam destroyed their central govt and the people were left create a financial system ALL BY THEMSELVES (Something that must make every central banker panic (What?? They don’t need us with our interest bearing (paying) currency and the income tax to insure those payments!!!!)

  104. J. Kimmel

    After the U.S., Japanese, and London markets collapsed totally, a man named Maitreya came on world wide tv to announce to the world that he was there to save the world. He had the solutions to the world’s problems and spoke with reassuring words of kindness but firmness. Follow me! I am now giving direction to our leaders in Geneva. In short order, order will be restored and you will be able to buy and sell again with my approval.

  105. maui manaman

    here’s what i have been planning to do when the collapse comes. i hope you do so in your own community.

    when the collapse comes i’m going not to walmart. i’m going straight to the police chief with some of my gold. i convince him we immediately need a stable LOCAL currency to maintain law and order. sold on my idea, he then announces to all local government agencies that he is taking over all water resources in the county. (it’s privately owned here. our county only buys it.)

    we then create a paper currency backed by gold and water, our most precious commodity in our island. then we disburse it first to farmers and ranchers to ramp up our local produce which is 99% imported from california. then we disburse it to various other groups that are working towards a more self sustaining island. the rest of the non productive workers like government and welfare folks will have to learn quickly what a truly free market system looks like: everyone working productively. they’ll end up working in the farms and ranches making real products. besides i believe that as this new local currency spreads out a free market charity/ welfare system will arise out of its own altruism without the need for government (ie:churches, affinity groups etc). new local businesses not catering to tourists will naturally arise like what we had in america in the early days: shoe making, bicycle repair, small engine repair, pneumatic driven tools, all the cottage industry stuff you see the amish making. most of these people will come from our suddenly unemployed tourist industry.

    this crash course in local self sustainability can be done only WHEN THE DOLLAR COLLAPSES, and when an honest commodity backed currency is created and used.

    this is my scenario. anyone else have positive ideas for when the dollar collapses?

  106. David Hunt

    what would happen to all of the gold at Fort Knox?

    The US currency would good zero, but the value of the gold at Knox would increase?

    let us assume the gold is still there…

  107. simeau

    We have to remember that these crises are created by the Elite Globalists. the Flu PLANdemic, poison drugs in food (aspertame, florides, glutamates, etc), the corrupt legal system, corrupt medical system…
    obsessive-compulsive control freaks in denial populate the hierarchy of every system, organization, institution, government at all levels.
    It’s operated under the Hegelian Dialectic, using crisis (chaos) to sieze control (order). Just the threat of chaos (martial law) is enough for the goons in congress to go along with the Con; they are traitors.
    fear the mindkiller, the means of control, plus doubt, worry, peer pressure, ostracism, any negative emotion they can exploit.
    Even the founding fathers are suspect, with their landed gentry status, doubtful they ever meant equality. PEOPLE WHO THINK THEY ARE MOVING UP THE STATUS LADDER MAKE EXCELLENT DUPES, USEFUL IDIOTS, AND FALL GUYS. Liberty is not freedom, ask any sailor.
    The Poor, the homeless, will not notice much difference, except their ranks will be growing exponentially, and the handout places will be overtaxed.
    so they, TPTB, enjoy the hunt, the endless machinations, and testing of the herd. How much will we endure? They CAN collapse it at any time, and have had the capability for many decades, at least since 1933, IMO.
    but they are not ready to bring the whole thing down, they have to have ww3, the military aspect, because we are already in ww3, the war on you.
    Eugenics is at the center of the agenda, population reduction is parroted from ted turncoat to henry kissass.
    I dont have much sympathy for the dumbasses over 40 who are just now waking up – better late than never, but what about the silent majority, living on little white lies, its all good, check out my SUV, HOT TUB, VIDEO GAMES…
    how quickly the smugness will drop from their demeanor as they line up or the shot, the chip, the government i.d. shit-job.
    they dont know socialism or communism even when it is in their face 24-7, indoctrinating them in the media, jabbing the needle in their butt.
    these people are the reason America is going down, not the filthy “leaders” they worship.

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  109. William Feader

    Fiction, or fact?

  110. Quite realistic for the domestic portion, but it would be much worse than you described for the international scenario. Most of them are hanging on by a thread, except for countries like Brazil, but even they would be hurt by a lack of buyers.

  111. Agman48

    Does anyone have a feel for what everyday life in the US would be like if this scenario were to actually happen?
    How do you think it would play out over a timeline of lets say
    1-week, 1-month,6-months,1-yr.?
    When would you expect to see any positive turn around?
    How would the infrastructure of our manufacturing operate? How would the transportation industry operate, fuel, drivers, safety? You can’t hunker down but for so long most can’t stock pile but so much and where will the resupply come from?

  112. alan

    Then the Amero is printed and circulated with the promise of a common currency will stabilize North America.

  113. John M.

    Great story! It makes sense that when all the stress and unbalance in the system is finally released it will go FAST. Rapid information exchange coupled with the fact that deep down inside most everyone “knows” the dollar is on borrowed time will be a potent combination. Once that get’s translated into action, then watch out… Reading your scenario invoked that queasy feeling associated with a surprise encounter with the blunt, harsh truth.

  114. timo

    Well the following makes ZERO sense.

    Foreign currencies gaining against the USD, and foreigin stock markets tanking as well.

    Nah, not gonna happen.

    It is not going to be a catastrophic event that will effect everybody, every country out there. USD may crash, but that will not necessarily affect the other stock markets and other countries.

    If Australian dollars gain against the USD, there is absolutely no reason for the Australian market to crash. The Australian dollar will be worth the same to the Australian yesterday, and today. No change. It will still buy the same amount of food, and other needs, and on top it will buy a lot more oil for a lot less.

    Decent story, but lacks the realities of economics. USD crash will hurt the USA the most. Most other countries that can manufacture their own stuff will get by without a problem. And Germany stock market going down 41%? LMAO.

  115. Mike

    Great message, does anyone here know how I can get an mp3 of something like this…I know folks who only watch tv, but who might listen to something like this while driving.

  116. Those that want more on how this can happen should read
    “Atlas Shrugged” written by Ayn Rand in the 1950’s. The main man in this story was named John Galt.

  117. Vike

    The Dude write 19/11/2009 19:24:
    Just remember.
    http://en.wikipedia.org/wiki/Nimitz_class_aircraft_carrier
    Dear The Dude, it wouldn’t be that easy:
    http://en.wikipedia.org/wiki/RT-2UTTH_Topol_M
    War won’t happen. So US will suffer in solitude. Use this once-in-a-lifetime chance to get back to your real strength – 1787 United States Constitution.

  118. Johnny Reality

    Our entire fiat money seystem is all based on faith. When we awake to the fact that dollars are just paper backed by a mere promise or in this case a lie, it all unravels to the point where our faith must be redirected. God will provide the answer if we are open to hear it. I know there are true good men and women who will rise up from the coming adversity and together we will all make this planet a better place for all who believe.

  119. Agman48

    Timo writes on 11/21 “The Australian dollar will be worth the same to the Australian yesterday, and today. No change.” If that is correct than would not the same be true for the”USA” in country? Would not the main impact be in our foreign trade and foreign debt markets? If that be the case it would bleed into our everyday lives through the inflation of and availability of “imports” but”USA” produced food and goods should still be available if the infrastructure remains intact and panic does not disrupt our ability to function.This would require a huge adjustment in product choices but would not necessarily mean total devastation.

  120. honestann

    The only question is, how on earth did it take so long for the world to wake up and realize those stupid green pieces of toilet paper are totally freaking ***worthless***.

    Sadly, I am certain the mainstream liar-media and so-called “authorities” will continue to denigrate those few who “were correct all along” (RonPaul, PeterSchiff, etc), as well as the sub-1% of the population who also identified the problems and spoke out years to decades ago. Just like after the 2008 crash, nobody who “got it right” was asked for advice or given any power to “fix it”.

    The bottom line is, we desparately NEED an absolute total meltdown crash at least as bad as the one described. Only when masses of citizens hang the traitors (the entire administration, the congress, federal judges, federal reserve officials, etc) from trees (except RonPaul perhaps) can the RESET button be pressed, and the USSA converted back to the tiny limited government required by the constitution.

  121. The collapse hit in 2007. It played through the system in 2008, was masked through 2009 with $trillions, and will likely become terminal in 2010.

    Joe

  122. For too long, now, I have watched and read about the economic status in the U. S. and how it will turn out bad for Americans. What I see little of is some intelligent insight on how to correct the current problems in order to deferr the above chronicled episode. By November 2010 it may be too late to elect a Republican majority in the House or Senate or both. The Democrates are out of control and the Republicans can’t agree on just how to fix things. Well, how about starting with prayer? Although now that liberals etc. have dismissed God and His Son, where are they going to turn; and to whom? The Bible talks about a tifme when ‘men’s hearts will fail them.’ Perhaps we are at the starting point.

  123. This story is close enough to the coming reality to be chilling. Now warm up with positive actions. Time is precious, silver & gold are still cheap, compared to what their prices will be. (If the FRN$ has no bottom, silver & gold have no top.) Better have some pre-1965 silver dimes and quarters on hand for basic exchanges. Gold coins are a great store of value, but will have to be traded very carefully to avoid robbery & perhaps murder.
    If you’ve got some goodies, keep it to yourself; remember the 6 degrees of separation. Your good news can reach ears you never thought existed in hours.
    There are many current sources of dried foods prepared for storage. Guns, gold, silver, beans & blankets, etc.
    Ayn Rand would say that you are responsible for you. Act accordingly. The government isn’t coming to help you; it may come to confiscate what you have. Better decide now, while you have time to think, what you are going to do in that event.

  124. JimjJim

    ffffWhat utter nonsense. Your story contradicts itself before it even starts – wait, the trucker can’t use his charge card for fuel, but shoppers are cleaning the WalMart out? You think they have cash?

    Riot and fire bombings and martial law, oh my! All within 8 hours? Hmm, the last time the world panicked, they BOUGHT dollars.

    More likely we see devaluation in the USD, only less rapidly. Timo’s got it right – USD crash will be hardest on USA. Then we start manufacturing again. And all those sitting on their piles of gold and silver will find it buys a lot less food than it did before.

  125. SOURDOUGH JOE

    Wonderful scenario: taking care of the obeisity problem and walfarism in one brutally efficient swipe. Payback time for all the deadwood. Please, Lord, bring it on soon!

  126. dejayajay

    God – shmod. God has never helped man before in times of catastrophy, and won’t this time either. We, and we alone are in charge of our destiny. The best hope we have is that the internet will spread knowledge faster than the disaster described.

  127. Ponce

    Save your nickels
    and save your dimes
    because some day
    you ass they will save.

    In the future the will keep on printing the fiat but not the coins so that the coins will become more valuable than the pape fiat.

  128. Jim D

    John Galt, the author of this incomplete article is someone who knows a lot about markets. He picked currency, gold and silver values in relation to each other at various price points very well. I am convinced John did not write this article for fun or to scare people. In my opinion, John wrote this article as a public service to educate as many people as possible.
    To save US dollar and economy, first Federal Reserve must stop printing too much money and US government must stop spending too much. As we all know both are not going to happen, hence dollar collapse is imminent. The best case scenario is that dollar collapse may be delayed by two years. Recent large gold purchases by Indian and other central banks are first hints for anyone paying attention.

  129. alan

    It wouldn’t take much to set off rumours and panic. People will run out buy all the food and gas in a few hours. Once crime breaks out people may stop going to work in fear of something happening to their family’s and it just keeps going down hill.
    I guess it depends on how it unfolds and if people freak out. I’ve seen Walmart food shelves completely empty a few days before a hurricane hit far away from us, but people went nuts buying everything. I don’t think it would be the end of the world but would be something to tell the grand kids!

  130. HerdMania

    1982- “The Death Of Equities”

    2009- “The Day The Dollar Died”

    Get the picture? Start Preparing

  131. thinker70

    Makes for interesting reading but I have learned not to take peoples prophecies seriously, particularly when they offer a specific time line! That being said, except for a few “problems” as pointed out by previous posters the premise is not at all improbable but I suspect may take a few more years to play out.

    The responses run the gaumat of peoples prejudices and personal beliefs but the Book of Revelations paints a picture of complete chaos and breakdown of normal commerce until man learns the lesson that he is incapable of ruling himself!

  132. Paul O'Brien

    Thank God we live in Australia! We have had gold slide backward slightly because the rise in $AUD over the $US! Sure makes you think though, maybe it will happen in march 2010!

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  134. herdingcats

    I fear you are spot on . Alot of people will be blindsided by this whole currency collapse. It may happen very , very quickly as you describe . You should write novels or a screenplay . ( I wish this was just a screenplay ! )

  135. Some answers:Exchange paper cash for small denomination coins – silver (pre 1965)for groceries etc.Very small gold coins, too.Start growing tomatoes etc.in pots-amazing what you can do…Barter will work too. Buy gold and silver producing mining companies to preserve capital. Canadian and Oz equities should also be ok to keep currency viable.
    Consider moving to these countries. Write yourself a menu of what you can eat out of cans for 6 months – also, it’s tradeable! If buying ammo,consider whether you are really prepared to defend yourself – or don’t bother. A real government can quickly re-assert your constitution and print money backed by gold and silver (it probably already exists if the rumours are true) You have one state already doing this. Abolish the Fed and most of your hand-out banks. The real American people will quickly revert to honest labour and looking after each other with a return to honest money. Good luck, America. Roger,Australia.

  136. peri1224

    Honestman is 100% correct. Hang all traitors. It’s the way of nature. Only that will root out our money problem at its source. Only then will the world have a chance to improve.

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  138. Mitch

    Bring it on, I got debt to pay off. Also to Matt in the 3rd post, Gold went from $35/oz. in 1971 to ~$850/oz. in 1980. So today gold going from $1150 to $5000 will not be that big of a deal. If fact the sooner the better. Fast collapse will be easier to live with than a decade slow one.

  139. Irene

    Believe it or not…it’s up to you.
    Thousands of years ago, prophets in the Bible predicted the scenario perfectly. The world is on the proverbial brink, falling apart. One man steps up. He is brilliant, he is beautiful, he is charismatic like no other has ever been. He solves the world money crisis with a single swoop. No more cash. Just a mark on your hand. Each “citizen of the world” gets one. Those with no mark (and thus no allegiance to him) can no longer buy or sell. Additionally, those without the mark are hunted down…and executed. This is WORLDWIDE. He even brokers a peace treaty with Israel/Palestine which lasts for 3.5 years. The world is thrilled! BUT, He is not a saviour, he is no other than the Great Dragon, Satan. After only 3.5 years, ALL HELL will be unleashed upon this earth. Two-thirds of the population of the earth are going to die. You can put up all the canned foods you want and prepare as best as you can, but NOTHING is going to stop this. Start thinking about what and whom you believe in. You had better make the RIGHT choice. It may save you from having to go through (or die) in The Great Tribulation.

  140. seog

    Right wing paranoia stoked by corporate wh@res & fear & hate mongers at F#X “News” is at a fever pitch. “A black man was elected president! Grab you women & children & guns and run for your lives! The end is near!” Nevertheless, a well written piece of fiction. I hope you expand it into a book. Peri is 100% correct; traitors Bush & Cheney should be hanged for squandering a trillion tax payer dollars butchering & slaughtering innocent people who did nothing to us.

  141. Lizadfuel

    This could be a real possibility if not a manual that the dollar is following.

  142. Awesome, see my email for reprint permission in our magazine. Or contact me below immediately, thanks.

    Mark
    dgcmagazine.com

  143. I’m stocking up on porn!

  144. Bob W - Los Angeles

    So Ya have plenty of the gold and silver (in small weights) and the sh-t hits the fan, who are the buyers, who is going to trade me TP for Eagles? I run up a flag that says “will trade gold for dinner” and I’ll have 5,000 bad guys with their cross-hairs on me and my family. I have food for a “rainy day” and my neighbors know it. How do I tell the neighbors kids, go home and starve? I’m prepared, but how does one deal with the moral issues that will arise?

  145. Jack Black

    Everybody should stock up on food, water and fuel. Can’t eat gold or silver. Doesn’t keep you warm either.

  146. funRide

    great read, wish they’d get it over with…:))
    yeah can’t eat gold/silver..but I’d for sure have some, food water gear..anything can happen-you might not want to stay in current city-so should consider learning some skills and also water treatment supplies, stay tight with good friends and family network

  147. david dillard

    my wife and i were it italy skiing in 1971 when nixon stopped guaranteeing one oz of US gold for every $35 submitted for redemption. the italian hotel would not accept $us to setle its bill for about 24 hours. a small event then after a relatively minor policy acknowledgement of poor government. best of luck to all with possibly larger consequences ahead.

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  149. Shawn

    This being told as a fiction story; is it a fact, seems kind of scarry to the public, I wonder if its true it diffenitly puts a qoute on the time to come.

  150. Samuel

    This is scary … I’m from Spain, we use euro’s here, but I think some how is linked to the dollar … No to say I’m really worried about what is going in EEUU … Are you sure the people in the Federal Reserve know what they are doing?

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  152. David Ortiz

    Definitely an entertaining story. However, it will never happen. The U.S. Dollar is on the verge of a HUGE rally. Gold is headed much lower.

  153. Man oh man. Glad I got into gold back in 07. @David Ortiz: I’ll take all your gold, bro. I’ll give you nice crisp pretty paper for it. Lots of nice pretty paper. Oooohh, paper…

  154. jim D

    “The U.S. Dollar is on the verge of a HUGE rally. Gold is headed much lower.”

    I am sure you know US Congress just voted health care reform and thereby willing to add minimum $2 trillion debt on top of huge debt mountain. By the time everyone recognizes this, gold is up another $300/oz. Gold got friends in Washigton, D.C.

    Good luck with your paper.

  155. Pathfinder

    I noticed a brief reference to a man named “Maitreya in one of the posts here. It turns out that it is possible that a man, who will one day be called Maitreya, does exist. However, the previous post on this subject was not accurate. For those who may be interested, here are a few facts concerning this person, IF, in fact, he does exist at all.
    – He is the fulfillment of the prophecies from all the spiritual traditions of the world including those from indigenous sources.
    – He has been active in the world since 1978, but so far as acted from behind the scenes.
    – Except for very close associates, no one knows what he looks like.
    – He is not here to save us. Only we can do that.
    – His primary interest is the unsustainable nature of the existing political and economic system of the world. For example, in 1988 he forecast the global stock market decline that began in 2008 and is now well underway.
    – He will be seen and speak publicly about the global economic situation sometime in the near future, but even in this capacity, when and if it takes place, he will not reveal who he really is.
    – The beginning of this public phase of his work will be indicated by the appearance of a “star” of such great size and luminosity that it will be seen both night and day. This event will last for about a week and was announced in a news release issued on 11 Dec 2008. Here is the link:
    http://www.share-international.org/media/newsrelease87.pdf

    In light of the unprecedented nature of events real and anticipate in these times, I find this particular story quite intriguing. After all, if the “star’ appears as forecast, I think a lot of people are going to want to know more.

  156. restless native

    To all the fools who say you can not eat gold or silver,how does paper with ink taste? What will America be like in the aftermath of the dollars death? not pretty , for awhile.It will be up to the people, are you prepared to take care of yourself for a few years? Why is KBR and Halliburton building detention centers in every state? For fema and Homeland security, why?for who?Do you feel cozy with a muslim president? Does not their Koran tell them to kill all the infidals? All who disagree with them are infidals, just ask them. .Listen to radioliberty.com, read the Bible,be ready

  157. Northern Art

    Stock up & Shut up!

    1.5 million gold 400 oz bars {+ or -} are tungsten bars plated with gold.

    This gig is about up!

  158. cdur

    some kind of “deja vu”…!!

    have a look @ : http://www.silverbearcafe.com/private/10.08/tshtf1.html

    just a true story….

  159. Michael Fiorillo

    Very effective econoporn, but porn all the same, and a survivalist’s wet dream.

    While the economy (and we, its servants) is indeed screwed, and it’s possible the financial system will melt down overnight as you describe so vividly, the greater likelihood is the incremental decline in production, credit and living standards.

    Don’t get me wrong, this incremental decline is in fact happening quickly in historical terms, but is much less likely to occur in the cinematically compressed way you describe.

    That’s all for now: gotta go buy some ammo.

  160. Patriot RWB

    From: http://www.apfn.org/apfn/fed_reserve.htm

    Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks, a very well kept secret, has been revealed:

    Rothschild Bank of London Warburg Bank of Hamburg Rothschild Bank of Berlin Lehman Brothers of New York Lazard Brothers of Paris Kuhn Loeb Bank of New York Israel Moses Seif Banks of Italy Goldman, Sachs of New York Warburg Bank of Amsterdam Chase Manhattan Bank of New York (Reference 14, P. 13, Reference 12, P. 152)

    These bankers are connected to London Banking Houses which ultimately control the FED. When England lost the Revolutionary War with America (our forefathers were fighting their own government), they planned to control us by controlling our banking system, the printing of our money, and our debt (Reference 4, 22).

    The individuals listed below owned banks which in turn owned shares in the FED. The banks listed below have significant control over the New York FED District, which controls the other 11 FED Districts. These banks also are partly foreign owned and control the New York FED District Bank. (Reference 22)

    First National Bank of New York James Stillman National City Bank, New York Mary W. Harnman

    National Bank of Commerce, New York A.D. Jiullard

    Hanover National Bank, New York Jacob Schiff

    Chase National Bank, New York Thomas F. Ryan Paul Warburg William Rockefeller Levi P. Morton M.T. Pyne George F. Baker Percy Pyne Mrs. G.F. St. George J.W. Sterling Katherine St. George H.P. Davidson J.P. Morgan (Equitable Life/Mutual Life) Edith Brevour T. Baker

  161. Charles

    The perfect vehicle to bring about the North American Union and the introduction of the common currency of Canada, the USA
    and Mexico…THE AMERO.

    Of course it is necessary to convince you the SHEEPLE that this is the best possible solution to the whole engineered mess.

    ” Nothing in Politics happens by mistake, If it does happen, it was planned that way.” – Franklin D. Roosevelt
    ( Communist/Socialist/Globalist )

  162. HEY JOHN GALT — I moved. I live in Texas now. And “topping off my tank…to insure that I get home” was an understatement if I had ever heard. Especially now, that I no longer live in Minnesota. To continue with the story… After I swiped my Comdata fuel card and got that pesky little message, I found out that they were excepting cash. After returning to the fuel desk with half of my stash of emergency cash, $750, I filled her to the brim. And heck, I even had $37.14 left in change.

    The collapse was no real surprise for me as I follow Denninger on a daily basis. What was a surprise for me was the frequency in which the collapse took place. I’ve read FerFals account of his experiences with Argentina’s collapse and studied our own great depression as well. In both accounts the collapse didn’t happen overnight, though the misconception is that it did. Needless to say, I wasn’t quit expecting this.

    After fueling, I began to search the web, via verizon wireless. To my shock and amazement it appeared that the end was near. I believe that Denninger was having a typical bout of sanity. Denninger’s overall video response to the crisis was… “Head for the Hills”. Well, that was enough for me. At that moment I dropped my trailer and headed across the highway to Gander mountain. “Who could be so lucky?”, I thought.

    As I topped the overpass and looked down to my left, “Wow! Would you look at the people” I exclaimed softly to myself. Gander Mountain was packed. I had to park on the road out front. My plan was simple, get in, get some mountain house food, a Remington 870 ,a case of double ought buck, and get out. As it turned out there were no 870’s, no buck shot, and no mountain house freeze dried food. However I did end up with a 410 snake charmer, 3 boxes of #7 bird shot, and a pair of Danner all-leather Striker™ II’s, socks, and extra fuel containers for my dragon-fly multi-fuel camp stove.

    Making it home was the tough part, once I got there I had 325 gallons of Pri-G stored gasoline, 300 gallons of Pri-D stored diesel, 11,000 gallons of water in my cistern, food to last 6 months, gold, silver, Guns, Ammo and enough heirloom seed to last a lifetime.

    But making it there is where the fun began.

    Take it from here John Galt…

    TruckinMike

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  164. Robert

    I really like the use of fictional stories to help convey just what a collapse would be like. It provides insight for planning. Thanks for the excellent article!
    For those interested in reading something similar you can check out a book called “Rescuing Liberty” by Amanda Washington that is on Authonomy. The book describes another potential similar social/economic collapse. It is an excellent piece of writing and can be found at http://www.authonomy.com/ViewBook.aspx?bookid=10037. There is no charge to read the books on Authonomy.

  165. Sweva

    Good horror flick…are you going to write the next Saw movie?

  166. An excellent writing but there is one flaw. Why must everyone lament the loss of the Federal reserve Note and system as the loss of the “dollar”? The FRN is no more a “dollar” than a hot dog is. It (the FRN) is a fraudulent, fake, counterfeit, fraud and its passing should be rejoiced over, not lamented over.Only when the unfair system is replaced with fair weights and measures (a coin system of real value) will our nation begin the healing process.

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  168. Petr

    Hi, nothing new for Europeans. To be frank our currency – Czech Koruna colapsed several times in the history…. and my grandparents, grandgrandparents, etc. loose everything – means savings. It was in 1939 (Nazi ocupation), 1945-freezing long term deposits, insurance premiums, all stocks were nationalized, 1953 – conversion of old CZK into new – losing approx. 90% of value in one day. So, get accustomed to the new reality and be aware that you cannot eat the banknotes.

    But on the other hand US caused worldwide troubles and as such should suffer the most (but will not).

    I do hope that this situation will not happen. SOS – Save our savings.

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  172. irene

    what was good enough for hussien, is good enough for both illumnati bushes asses…… and the rest of them,- one word ————snipershot

  173. Cass Andra

    Someone asked what happens to “all the gold in Fort Knox”. Since they have not had an audit in Fort Knox in over 60 years my guess is the answer is “what gold?”.

    If this scenario comes to pass, then all you people who have chickens and cows had better brace yourselves for the raids by the townies who do not. And if I had any gold or silver I certainly wouldn’t be telling the neighbours about it.

    Owning a gun and being prepared to kill someone who is trying to steal your tinned beans to feed their kids are two different things. Think about it. Cowboy shoot-em-ups are fun on the big screen but I sure wouldn’t like to be living in one.

    If I believed in God I would be praying hard. Good luck to us all.

  174. Radio Canada International has 2 or 3 shortwave transmitting antennas that could be used to cover the USA 24hrs per day if this kind of disaster were to emerge.

  175. Marek Szablowski

    So this probably will wait us

  176. MAVIS cARACOSTAS

    Fantastic! About the 0800 ET spot I knew what the trip to Geneva would end up as —–THE NEW WORLD ORDER. This is a real cliff-hanger, will be looking for the best-seller to come.