American Hangover (The Day the Dollar Died, Part II)

by John Galt

November 19, 2009

The following posting in ITALICS to represent the fictional perspective I see possible during a week long currency crisis created by the United States government and how it might well be viewed from the eyes of a blogger, a truck driver and a warehouse section manager. The premise might seem like a crisis that could not happen here, but does it really take much of a reach to come to these conclusions? Each individual might react differently, each aspect of the story questionable to some degree but the question has been asked of yours truly as to why and how the series of events could occur in such rapidity and without warning. For those that have been reading my pages and works since late 2005 when some friends in the real estate and financial industry made me aware and gave me the red pill so I could understand the depths of the financial fraud being perpetuated on our nation and much of the Western world married to our foolishness.

To provide an alternative to just the story telling aspects as how I envision such a time line let me start with another opening salvo and commentary on today’s markets to give you a perspective. The regular readers of these pages understand that I have been preaching the 1-3-6 Rule for some time and as such a quick rehash for my new guests is in order. During the peak of the financial and credit crisis in 2008 and 2009, the 1, 3 and 6 month United State Treasuries had their yields crater to 0.00% or into negative territory in some cases and just above that during other periods.  Let us start this brief trip in time with a story from Reuters on April 20, 2009 titled:

US Treasury bill rates fall on bank concerns

Today those rates per CNBC are:

1 Month: 0.01%

3 Month: 0.01%

6 Month: 0.11%

Those are absurd yields by any stretch but when measured against the last “official” inflation report you are actually paying the government ten cents on the dollar to hold your money.  To get a better perspective, here is the report from Bondsonline at 1626 ET on November 19, 2009:


Thus you do not have to take my word on it. We have billions of dollars pouring into short term Treasury Bills to essentially pay the government to “store” or hold their money for the next 30 days to 91 days and it begs the question as to why. The answers I propose are simple and have been stated many times before, that our financial system is no much more repaired or functional than an airplane is airworthy after it flies into the side of a mountain at 500 knots.  Credit is limited if not totally frozen at many levels and the government’s role as banker of last resort is being tested by foreign powers sick and tired of funding America’s house party. And the timing of the sudden move in short term Treasury yields which began in August of this year and has been accelerating ties in nicely with the timing of the fictional death of our dollar I have been outlining.  I shall continue to add to the story and highlight the news stories and related articles in a later thread with the appropriate links to give my readers some idea as to how these theoretical conclusions were reached.

The party is about to end. Let’s take another look to see what the hangover from the party might just look like……..

“Ah, Lincoln Avenue exit, Thank You Lord for getting me home!” an exhausted driver named Mike exhaled as he saw the ramp approach.  Had had just over a half tank of fuel and could keep the rig running during the icy nights in Minnesota but was more aggravated after today’s events that no one in his office would answer the phone or the Qualcomm communications he had sent.  Mike spent seven hours to get fuel in Fargo as the tanks were empty and the last tanker truck the Petro would send did not arrive until three hours ago. As a result, Mike sent a nasty message to his dispatcher about ice, cold and where it needed to be located up his dispatcher’s torso in Atlanta.  Here it was six o’clock in the morning on I-94 and the roads were packed with truckers as usual but the CB radio screeching with chattering rumors about bank failures and economic collapse. “Good thing I have The Highway channel on my Sirius” he thought to himself as he cruised home to some classic Johnny Cash.

As he started down shifting on to the ramp he noticed that at just after 6 a.m. one of his neighbors, Deputy Monckton was at the bottom of the ramp with his lights flashing and flares across the bottom of the ramp. Mike rolled to a stop and cranked the window down and asked “Hi Jack! What the heck has you out here freezing your tail off this early in the morning?” The Deputy unsnapped the cover from his parka over his face, took a sip of coffee and then spit out some chew to reply, “Mike, you are not going to believe this, I’ve been ordered to close this exit. Locals are the only ones allowed in for the next ten days per the Sheriff and Mayor Hilldegest. We’re supposed to turn everyone away here and off  the old Highway 52 and 210 exits. I hope you’re going home, there’s some wild stories circulating out there!” Mike grabbed a huge gulp of coffee and wiped the over flow off his now frozen beard in the negative 21 degree temps to tell the Deputy “I’m going home and locking and loading. I’ve got a about a third of a load of pork from IBP to deliver tomorrow in Duluth, but now, we might just need it here. Call me if you need my help on the patrols, I’m locking this sucker up.” The deputy said “thanks” gave a half-hearted salute and moved his car to let Mike through. Little did Mike know that the little town of Fergus Falls would get very, very busy before the week was over.

Meanwhile, back in Hampton, Georgia….

February 22, 2010 0315 A.M. ET

Tom finally had the joy of handing a clerk $72.00 to pay for 30 bucks worth of toilet paper and a bunch of canned goods. Amazingly when Tom arrived home a half hour later his wife greeted him at the door. “Well, was it worth it getting all that toilet paper?” Sandy asked. As Tom looked uncomfortably at his lovely wife of twenty years, he started to speak when she interrupted and said “uh, I don’t see any of this magic toilet paper? Where is it sparky?” Tom looked down as he set the first load of bags of canned food down and a full two cases of Saltine crackers and started the story, “Well, uh, honey, you see there was this guy in the parking lot and uh, well, you see, he uh, well, gave me $10 a package for toilet paper I paid $5.99 per package for! He’s such an idiot!!!!” Sandy was not impressed. She said in a stern and disgusted voice “And if we run out because the stores are closed, will you let me use all that money you just earned to wipe my butt?”

“Uh” was all Tom said as he looked down and meandered back to the car for another bag full of canned veggies and Ravioli in the middle of the night.

February 23, 2010 1:41 A.M.

Crap, I forgot to turn off the computer. Look at all the emails and nasty messages. Maybe it is just a bad dream or the bourbon but I swear that even at this time of night the “Day After” as the media was calling it seemed like it was prime time as thousands of people were on my favorite message boards, many pleading for help about their investments or what to do to survive. After finishing up my business in the bathroom, I figured I might as well turn on the idiot box and see if the mainstream had figured out just how severe this historical event was or if our morons who helped make this mess had the nerve to utter any statements from Geneva yet.

As I flipped through I wondered if slugs like Cramer and Kudlow would ever show their face on television again.  I had managed to convince the wife that I needed at least three televisions but that didn’t fly so two would have to do along with a split screen on my monitor as I used when I formerly day traded. She was wonderfully tolerant but knew that I had a clue this might be happening so understood and enjoyed a bottle of wine with me as we talked on the patio before retiring for the evening. Unfortunately my office beckoned and when I saw the insanity on my screen my head almost exploded.

There it was, live at eight minutes until 2 a.m. a repeat of a special “Fast Money” segment on Bubblevision proclaiming and pushing the “Best Stocks to Buy” when the market re-opened next week. The best stocks to buy? These morons are acting as if this was just eating some bad undercooked chicken from a local Chinese choke and puke and once you purge it, you can chow down some more, just add more soy sauce! At 2 a.m. the mood returned to my more somber dark outlook as the Bloomberg network began live coverage from Switzerland and their attitude was 180 degrees from the propagandists on other channels.

The interview they had with the Swiss Finance Minister Merz was pretty much to the point. He looked into the camera and sternly proclaimed “We will not sacrifice Europe nor our economy to save America and their illogical banking structure. We will issue a statement tonight after President Obama speaks at 6 o’clock Geneva time.”  I figured that might give me time to squeeze in eighteen holes and enhance my hangover if I could get back to sleep but that would mean convincing my boss to tee off at 7:30 a.m. instead of 9:30.

05:09 A.M. ET

The snooze button felt good but sleep was not an option. I left my wife’s warmth and comfort to sleep on the guest bed and kept the television volume on low just in case the EAS decided to activate because the ChiComs got sick and tired of the excuses from Obama and Bernanke in Geneva. Of course my paranoid self got the best of me and made me get up, shave, shower and listen intently to the local station which broadcasts the Bloomberg Radio Network exclusively in the early morning.  What was unusual about this mornings program, as I smelled the coffee cranking up from my automatic Mr. Coffee (Dunkin Donuts, fresh ground if you’re curious) was the appearance of the morning team of Tom and Ken a full two hours plus before they normally come on the air. Bloomberg “Surveillance” was on at 5 a.m. and that meant either big news was breaking or there was some serious concern on the behalf of the big money crowd. The first interview they had was with a New York City Councilman who worriedly professed that the longer the markets were closed and the more dangerous the projected actions, the worse the city would be hit. I found that interesting because locally, nothing much of anything beyond the international fiasco was really going on. The bank closings and gas stations running out of gas was just taken in stride by the masses and that’s why I was hurriedly shaving and then putting toilet paper on the fresh cut when Tom Keene said that the projected Dow opening if it were to open today was down thirty percent if it were allowed to trade according to some experts.

06:00 A.M. ET

As I finished my shower the sounds of Bloomberg Radio faded as I turned it down to turn up Bloomberg television and hear the big announcement from the new President of the EU Van Rumpoy state the following:

“The United States Dollar in its current form is no longer an acceptable medium for a reserve currency or international trade with members of the European Union. We have expressed our policy on this matter to the other world leaders and President Obama at the morning meeting. The resolution of the matter will be completed soon and the announcement of our final policy decision will be enunciated at 6 o’clock European Central Time.”

Stunned, I reached for the half full glass of now somewhat warm wine and chugged it. While the sheeple as I affectionately nicknamed them might have slept through this announcement, it was Armageddon for our country. Screw it. I’m going to play golf one more time before it hits the fan. This is absurd.

06:25 A.M. ET

The ‘DING’ on my toaster oven went off faithfully with my last ‘Everything’ bagel and the cream cheese tasted extra rich this morning. It was almost if enjoying life without work was better but instead of retirement it was more of a resigned “now what” attitude. As I walked back into my home office with my bagel on my plate, the beautiful wife was awake and asking what my plan was. I reminded her that there was no work today so go back to bed but she insisted on going into her office, I guessed to answer phones that were not going to ring and hoping someone would help her figure out what was next for her state contracts. I told her that I’m playing golf with my boss so I have my excuse for playing hookie from reality. Just as she was going to reply in a rather rude outburst I asked her to be quiet as Prime Minister Brown from the UK began to speak:

“Fellow citizens of the world, America and the United Kingdom have long enjoyed a special relationship. The matters being discussed within the halls of this meeting in Geneva will not benefit the citizens of the crown nor the free world. The United Kingdom has elected to depart this meeting and recognize the United States Dollar as the primary reserve currency for trading purposes and we fully expect and accept that the Americans will make good on all debts past and present that are owed to our nation as we too shall be strong and persevere in the face of this unwarranted attack on our sovereignty.  The crown and eagle shall stand together, alone if we must. We will not abandon the ally which helped us survive World War Two and the Cold War. Thus the meetings here in Geneva,  from the perspective of the United Kingdom and our financial agencies, are now concluded. Effective at midnight tonight, the United Kingdom shall withdraw from our participation in and investments of the World Bank and International Monetary Fund. Good day and God Save the Queen.”

06:37 A.M. ET

I walked into my bathroom and got quite ill to my stomach.

07:oo A.M. ET

As I tossed my golf bag into the back of my pick up truck the cell phone rang and of course it was my boss. He said that he had lined us up at the country club but only for 9 holes because he wanted to see what President Obama and the rest of the G20 said at noon today. After signing in and the usual pleasantries, we headed out to the practice green to attempt to warm up a bit. Thankfully, it was a nice Florida morning where global warming had cooled the tee off temp to a robust 49 degrees and as I tried to find my stroke  I muttered under my breath an obscenity (or four) about Al Gore’s family tree and dumped a little Irish Whiskey into my coffee to warm it up.

We walked to the first tee from our golf cart and the Marshal said cheerfully “Have a good time gentlemen, it may not matter tomorrow!” With that I figured it was time to fire up a Diamond Crown #7 and enjoy the scent of a Pyramid Maduro as my golf game was not going to be so hot today. My boss said jokingly “I’ll take one on the second hole if you have one, I’ll be out of business soon anyways” and as he chuckled proceeded to hit a nice drive about two hundred and seventy yards down the right side of the fairway. I reached into my bag and handed him my last cigar and told him to enjoy today because tomorrow was going to really suck. He replied, “Yup. As soon as the courts open, I’m filing Chapter Seven.”

That made for a nice shank about seventy yards behind his ball and in the tall grass leaving me a mountain to climb. But the best part was getting away from the Marshal who was acting as a starter today to work off tips (of course we gave him $10) as now we could talk and drink like Kamikazes on their final mission. The truth about our local situation was about to come out.

09:17 A.M. ET

The Par 5 sixth hole was a monster today with the tees set back in the dew laden grass some 547 yards from the pin. The inhalation of my cigar helped but adding a cocktail to the mix did not hurt. My boss, a normally reserved sixty three year old self-made millionaire was chugging drinks like a mad man and telling all. He told me how the local banks were all insolvent criminal enterprises, as if I did not know that already. He told me that fifty percent of the commercial real estate was already delinquent or ready to be foreclosed upon. He even told me that half of the private jets at our Sarasota airport would be repossessed  if any damned fool would buy them for 30 cents on the dollar! As he hit his second shot off the fairway, I took a swig straight up. The hangover I had this morning was nothing compared to what was coming for America.

11:00 A.M. ET

The approach to the 9th hole was one of both a glazed over look of relief and horror as we knew that once were settled down to watch President Obama’s speech at noon, our lives and our nation would change forever.  My boss laughed as I birdied the hole, giving me a scorching score of 49 on the front nine and he finished up to whip me by ten strokes yet again.  Knowing full well that our relationship as employer and employee was practically over, I looked at him half serious and said “You know if you actually gave me a fair schedule for time off, I would hit the ball as well as you do.”  He let out a huge belly laugh and said that he was buying the first round and not to worry, he was giving every employee one month’s salary on Thursday with the cash he had on hand and more when the banks opened to insure everyone survived before he filed for bankruptcy.

“Dear God” I thought to myself. He’s either fleeing the nation or ending it all. The local news was chocked full of reported and rumored suicides around our community as of yet the names were unconfirmed this morning. The blaring of sirens out to Longboat Key and helicopters flying to our local hospital disturbed the normally quiet winter evening, yet it seemed surreal to everyone who lived in our community. The bartender at the country club looked us in the eye and asked “Are you staying for the big one?” My boss, being the the guy with the attitude now of “whatever” replied, “You mean they are showing a repeat of the Bucs game today again?” The bartender laughed and replied, “No, you know, President Obama and the bankers are going to screw all of us retirees in forty-five minutes! We don’t matter any more, so we figure we’re toast.”

My boss, saddened, looked at him and handed him a $100 bill to my astonishment and said “Old man, this may not be worth anything today, tomorrow or ever again, but take it for what it is worth now. A thank you for helping our nation make it this far.”

I started to get a little misty eyed at that point.

11:55 A.M. ET

CNBC interrupted with news that a WalMart Super Center was in the midst of a riot as it was closed due to running out of stock on the north side of Lexington, KY. As footage rolled in, the scroll said “6 dead, 15 injured” and just as the reporter was getting ready to speak….

11:59 A.M. ET

Attention all broadcast, cable and satellite outlets, this special emergency broadcast from Geneva, Switzerland and the President of the United States begins in 10, 9, 8, 7, 6, 5………..

Creative Commons License
American Hangover (The Day the Dollar Died, Part II) by John Galt is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Based on a work at
Permissions beyond the scope of this license may be available at



Filed under Uncategorized

39 responses to “American Hangover (The Day the Dollar Died, Part II)

  1. I just discovered you this evening, keep up the good work! I’ll have link in my blog for you tomorrow! PLEASE don’t leave us hanging on this story you have gotten started… Daily updates are a must!


  2. Jim ODonnell

    I bet some were hoping that Obama would save the day but no dice. Its bad and will get much worse when the stores run out of everything and no one will leave the relative safety of their homes anymore.

    A note on what interest rates actually mean in reality: The rate of interest [when functioning properly] signifies the measure of the realtive desire for future goods over present goods. Don’t let this economic principle confuse you. When the rate is “infinity” [high] it means I want goods NOW, and when it is “zero” it means that I don’t want any current goods, I’ll wait forever, that’s just fine.

    So when the gov mucks around with interest rates it “short-circuits” the entire economy and makes it impossible to make any economic decisions. This is where we are now, nothing is real anymore and like real estate it is all “upside-down.”

    I personally made the decision over a year ago that any security was worth zero since the gov now was to decide everything including most prices.

    The only thing that can save anyone is gold-in-hand or other valuable stuff which can be used or bartered. Any “investment” is worth zero, or soon will be worthless.

  3. julie A. Wagner

    This story is absolutley terrific. I don’t always understand the technical parts but the the sense of impending doom is bang on. Please, please write more. Your characters are well rounded and make the reader really empathize with their experiences. I felt like I was standing there right next to them. Well Done !!!

  4. TraderScott

    Hey, I didn’t see a way to email this to you-update your WP software to 2.8.6. There’s some vulnerability in the old version.

    Anyway, great story.

  5. Gusevg

    Please continue the story, much better than 2012.

  6. Jim ODonnell

    Here is the best movie I have found about the 1929 stock market crash: The Day The Bubble Burst.

    Has all the same drama as John’s writting as it includes the happenings in the lives of regular people as well as the elete. Was a made-for-tv movie but with a great cast but is NEVER shown on tv anymore for obvious reasons. Can be rented, I believe, check on the web.

    Shows how the lives of all were changed forevermore with some dead but others suceeding but the USA changed. Well at least until recently.

  7. ryan

    awesome. keep it up!

  8. John Galt, another nice segment. I like your central character. He understands what is happening and what it means and what is coming. Unfortunately Amerika is filled with sheeple that will watch and listen to the media reports on the day it happens and will be dumbfounded and wonder how could this possibly be happening here. Your story reminds me of the short lived CBS series of a two years ago called Jericho. Get it on DVD if you didn’t see it. The plot twist is a little different but the realities will be the same.

  9. Lawrence Roberge

    Ok, now what is next?

    Furthermore, wha about those who own gold or silver or other metals (on hand). How do they fair through this?

    Keep up the great work!

  10. Sunny Meadow

    Interesting story, but a little pollyanna.

  11. JOe

    Junk silver baby, buy and HOLD junk silver.

  12. engineer

    This scenario isn’t too farfetched. Good work John. You did a great job portraying the possibilities that could ensue after a total economic collapse. Now the question is when will this all happen? Not if, but when. Let’s be realistic people. This is just the beginning of the end. Our Lord Jesus Christ’s return in the heavens will be imminent once everything starts to unravel. Jesus is our only hope for what the future holds. God be with us all.

  13. nos es sic screwed

    Another great article that I have come to expect. It’s hard to foresee the future, but this is more than likely.

  14. jg

    Excellent, sir! I cannot wait for the next installment!

  15. Patrick.E.A.

    assuming there is an economy in a few years, you should publish this as a book – i’d sure as gold buy it! great reading 😀


  16. Vernon Peterson

    Good story. Seems to fit the expected flow of thought for the start of things.
    A few things I have learned in life; you can’t eat gold, you can buy with gold when supplies are available, having gold and food gives one a warm fuzzie feeling. Having a few pounds of heirloom seeds will make you the superhero your wife married
    Check out the pictures of people burning the German Mark during the Weimar republic.

  17. You’re onto something big here, John Galt. Doing something good for the country while there is still time (tick tick tick). Cannot thank you enough

  18. Cheryl

    Big mistake to sell your TP. Commodities is the name of the game now.

  19. Jay

    hahahaha ! hohohohoho ! I laugh the big Mogambo Laugh because I have all the food and bullets and Silver to live so…… . Adios suckers !

    Too bad you didnt’ take good advice !


    Hi, this is fantastic and frighteningly realistic. One thing I must add, Gordon Brown would NEVER end a press conference with “God save the Queen.” He is a Scottish socialist, (almost everyone in Scotand is a socialist,) with a massive chip on his shoulder, (again like most Scotch,) and closet republican leanings.

  21. MDS

    Again, if you know how to pull a “Jermiah Johnson” which most of us don’t, and head North to portions where there’s next to nobody, you might make it in a scenario like this. The rest of us will all go together. May take a lot of time for some, but little to no time for most, if such a scenario plays out.

  22. Carl W. Livingston

    And to be sure, some form of this authors perspective will come to pass.

    The end is near, it’s only a matter of time. I was personally hoping that we had a year or two left – my hopes for further preproation. But, with Obama-care on the verge of reality, it seems that they’ve accelerated the timetable to Obama’s timetable. That is, we’ve moved the collapse of the U.S. dollar from years, to months – or even weeks and days…

    God speed, folks!

  23. greenacr

    John –

    Hats off to you. Your stories are stimulating and help keep my head around staying prepared. Please keep the installments coming. I have to believe this is increasing the traffic to your website which means that you are getting the word out,

  24. Randall Wefel

    Very will done!
    Or should I say, WE are well done?

  25. PestControl02

    wow..great story! someone posted a link in the comments section of a recent max kaiser video…sooo glad I checked it out.

  26. Steve in Kentucky

    I know that Wal*Mart site in Lexington,KY. That shopping center used to be called North Park Shopping Center and was the site of a Hills Dept Store years ago. A renter of mine was in management at that store and he told me that Hills paid over $3,000,000 in advance rent just to break their lease since the shoplifting was so bad there. I can visualize exactly how the neighbors of that Wal*Mart would clean that place out so darn fast it would make your head spin. As for myself, I got an 8 pack of Dare to Prepare and gave them out to friends & family and I am well prepared. When it happens, don’t come to my door looking for some TP or food. Pray for our Nation.

  27. Bernard Romanycia

    Good thing I’ve got a good supply of Canadian whiskey to last the coming winter.

  28. patchbox

    I can’t call the writings a fictional account… they reflect a reality that some of us expect. Self sufficiency and self protection will be the centerpiece of life once “the day” happens. Stores will clean out in a week. It will be shortly thereafter that I would expect water and electric to stop, until taken over by state or fed agencies. I will hold gold and silver to the extent I can, but for years after “the day” it will be food and skills that will be of the greatest barter value. We best hope we still have the freedom to barter…

    Keep up the great work John Galt.

  29. McNamara

    Wow….this is better than most books I read! Can’t wait fo the next installment.

  30. Pingback: » Financial News Update – 11/22/09 Where liberty dwells, there is my country…

  31. Pingback: The Prophetic View News! – 23 November 2009 « The Prophetic View News!

  32. Bob

    …4…3…2…1… Ladies and gentlemen – the President of the United States.

    “Fellow Kenyans, Indonesians, & British nationals of all colors – I’m pleased to announce, that the Swiss have agreed to grant me political asylum. While this means, I’ll actually have to learn how to SPEAK ‘Swisshili,’ it is a small price to pay, for the saving of my derriere, and besides which, none of you back in the 57 states, want me back there anyways. So in the words of that famous old west missionary – once given to my great-great-great-great-grandfather – I now share them with you, as my parting words of inspiration; Son… you’re on your OWN!

    Good luck, and remember, vote DEMOCRAP this fall!”

    Immediately, gunfire echoed across the golf course – I suspect it was ONLY just getting started…

  33. Pingback: Economics and Investing: | Theology Today

  34. Pingback: » Economics and Investing:Footpounds: Planet Preparedness:

  35. Mickey

    You have awaken so many with this great writtings, but the truth is we are very close to this out come now. I read a reading this week end at by Robert K. Landis, all need to read it. Also you can get real data from www, without the bought & paid for media that sides with the progressives that help to install the Federal Reserve Banking Cartel that is the Rothschild family & those they let in their click. Protect yourself where you can protect your family. GOD help us all from our politicans……

  36. Gary

    John, like your thought process, of course, you could be considered a nutcase, but I would rather have three freezers in my garage, fully stocked, as opposed to none, hey, you buy bulk, its cheaper, you use it any way, and save money if the shit storm does not come down. A little gold, silver, cash buried under the doghouse, never hurt anyone.

    If it does, than you have to supply your kids, they want the new IPOD, not paying attention to what we are stocking up on, they would rather have a new Blue Ray, than a freezer full of food, #@?”%*&#= frustration.

    I never thought I would get into this mindset, and I am a ex corporate guy who made 300 trades this year, mostly on miners & energy, I’m out as of now. No more fiat paper trading. Just physical gold, wood, propane, food, etc and cash, out of the banks, and withdrawing cash on a weekly basis.

    Either way, by buying bulk, I am saving money. If the shit storm comes down at least I have a six month supply of essential goods.

    PS I am not a a survival extremist, as some of the nut cases are out there, but what IF? you run out of ass wipe,try explaining that to your wife, and two daughters, three woman, in the same house hold.

  37. Pingback: The Survival Station - Economics and Investing:

  38. Bob

    Wal Mart on the northside of Lexington, KY. Oh hell, that’s the one I go to. I live on the northside of Lexington. Don’t do that to me.