Free - Beyond Collapse

Monday, January 25, 2010

Secession and Economic Collapse

Economic collapse in the United States is inevitable. But because the dollar is currently the world’s reserve currency, when the US gets sick, so will the rest of the world. Tragically, the worst of the consequences for regular people will happen here in America. Let’s look at what will happen.

The Causes of Economic Collapse

Congress, the US Treasury and the Federal Reserve have flooded the world with paper US money. Not all “money” is a spendable piece of paper currency. Treasury securities are sold to pension funds, insurance companies and to other nations, like China and Japan. They can be traded between parties just like cash. Look over the pie chart below and notice who owns MOST of the US debt…states, foreign nations and the Federal Reserve, who owns a whopping 49% of all US debt.

Just the Federal Reserve and foreign government holdings account for over 77% of all US Treasury securities owned. So if the Federal Reserve controls the money supply…and own almost 50% of the Treasuries…and foresee deficits into the future…what choice do they have but to buy more Treasury debt and printing more paper money to pay for it?

The US Federal Government is going to run a TRILLION DOLLAR deficit this year. That means they can do one of four things: (a) tax Americans a trillion dollars to collect the money from the citizens; (b) borrow (sell debt instruments like bonds) to the Fed, pension funds, states, insurance companies and nations of the world; (c) slash government and cut back to a balanced budget; or (d) print another trillion dollars in currency and buy some more US Treasury debt.

Which one do you really believe that Washington will do?

Now, institutional investors aren’t completely droolingly stupid (that we can prove). And most of the foreign investors are way smarter than Americans. They know that the dollar has no basis for value. They all know that inflation happens when governments print too much paper money with no underlying value. So, they can look into the future and see that they are going to receive payment in dollars that have shrunk in value. And they see that the more wildly Washington spends money, the more the dollar will shrink. Dollars that shrink in value means their buying power diminishes…the definition of inflation. The US Dollar has lost 95% of its value since the 1920s. Said another way, what now costs a dollar today only cost five cents in 1920.

This is the reason that the other nations of the world are looking for a new reserve currency. This is the reason that the oil producing nations would like an oil bourse, which would accept payment in currencies other than the dollar (Iran just started one). They know how bad off the dollar is and they don’t want to get stuck with billions of dollars of worthless currency as payment for their oil.

Here’s something else that institutional investors know…that the value of these securities and dollars they hold is a soap bubble on a hot day. It will only last briefly and then it will pop and disappear. Investor confidence maintains most of the value of US Securities, and investor confidence is extremely shaky right now. Said another way, if a couple of major holders of US Treasury securities tried to sell off their holdings next Monday, it would trigger a worldwide panic in the bond markets. Others holding US debt would also try to sell their holdings in an effort to get something for them as opposed to holding worthless bonds unsellable at any price. The bond market would collapse overnight, which would also collapse the rest of the financial markets, including the banking sector.

There are hundreds…perhaps thousands of holders of US Treasury securities. To maintain the semblance of investor confidence, every boldholder would have to sell his holdings with perfect timing. But selling presumes that there is a willing buyer at some price, and that has yet to be proven. Any one of them that makes a mistake could cause the crash of the worldwide bond market, and inevitably the crash of the entire world financial system. So, do you really believe that no one will make the mistake that crashes the system? Remember, much of investor confidence is based upon PERCEPTION, not reality.

Once that happens, the banks and credit companies would cease to function, or at least, their operations would be curtailed for an indefinite time. The term for this event used to be a “bank holiday.” Few will see the fun in that holiday.

If you watch the news each week, you’ll notice that lots of banks have already closed in America. And the bank examiners and regulators ALWAYS seem to close the banks on Friday. That gives them the weekend to scurry around and fix things if possible.

So, let’s explore the string of events that will likely occur on the day the system fails.

It’s a Friday. You go to work in a normal fashion. At lunchtime, you swipe your credit card at the restaurant and the transaction is rejected. The cashier says that all the credit and debit card transactions are being rejected, and there must be something wrong with the satellite feed. Luckily, you have cash, and you pay your bill. By the time you are leaving, the manager announces to the whole restaurant that they are not accepting any more new customers until their credit card system comes back online. All customers will have to pay cash.

You go back to work. When you get there, you punch up CNN on your computer and find that the problem is not just that restaurant’s uplink. News reports state that the worldwide bond market crashed during the morning, sending the rest of the financial markets into a freefall. The New York Stock Exchange called a halt to trading and closed at 11:30 am. Credit transactions all over the US are not working. Businesses are closing early, or only accepting cash transactions. You and your co-workers leave work early to go to your banks to make a withdrawal of cash to tide you over the weekend. But hundreds of thousands of other people have run to their banks to get cash, too. And because the banks are only required by law to keep about 15% of their assets on hand in cash, they quickly run out of money. Many banks have closed their doors for the day. When you arrive at your branch bank, it’s already closed. The sign on the door says the branch will be open again Monday morning. The ATMs do not function…anywhere.

You look in your wallet and there is six dollars there. Payday was today and now you cannot cash your paycheck. You were going to fill your tank on the way home, but now you can’t. You wonder how you’ll get to work Monday with no gas.

On your way home you drive past gas station after gas station. Many have already closed. Many have erected hastily-scrawled signs that say “CASH ONLY, NO CHECKS.” The lines of cars are blocks long.

When you get home, your spouse has had much the same experience. She went to the market on the way home from her job and the market manager had also posted “CASH ONLY” signs on the front door. People were buying up everything they could afford. The milk and bread shelves were already bare. Thankfully, your wife’s car has a full tank of gas.

You look in the pantry. A quick look tells you that the family will be able to get through the weekend just fine, although the meals might be a little weird. But by Tuesday, you’ll be running out of essentials.

Throughout the weekend, regularly scheduled news shows become 24/7 special reports about the banking and credit interruptions nationwide. Videotape from all over America shows the closed banks, shops and gas stations. 18-wheelers are parked and shut down all over the roads and in truck stops since the truckers can’t fill their fuel tanks using credit. And, some of their loads of refrigerated or frozen goods will spoil if the reefer unit runs out of fuel.

The Saturday news shows report that the Federal Reserve has been taken over by the World Bank. The President has signed an Executive Order authorizing the takeover. But since taking over the failed Federal Reserve, they have now replaced all dollar-denominated money with the Euro. They also devalued the dollar’s convertibility by a factor of 2. That means when you convert your dollars to Euros, you will only receive less than half of the face value of your dollars. Before the collapse, it cost $1.50 to buy one Euro. Now it costs $3.00. So, your $100 bill will only convert to about 33.50 Euros. The President proclaims a limited window of 30 days in which citizens will be allowed to convert all dollar currency into Euros. Than after that, the Federal Reserve notes will be entirely worthless. The President states that this is the only solution to prevent chaos.

Sunday afternoon your boss calls. Your suppliers cannot get product to your business since the truckers cannot move cargo. He tells you to just not come in Monday but to call him for instructions about Tuesday.

Monday brings no good news. More and more people, desperate for cash and panicked by the news broadcasts, have crowded in a riotous mood at banks all over America, but they’re turned away. News film shows inner city markets, gas stations and businesses that have been looted over the weekend. And the looting will now begin to spread out into the suburbs. Small bands of armed looters openly storm into businesses and take what they want. News stories show business owners sitting outside their front doors with rifles or shotguns in their arms. Crime mushrooms in only a 72-hour period. The police are completely overwhelmed.

Over the weekend, you and your family have combed the house for spare change. Between your change jar, coins in the couch and in drawers, you’ve come up with about twenty dollars. All the rest of your money is in your uncashed paycheck and in your bank account…unavailable. You have a no gold or silver coins. You have a couple ounces of gold jewelry that could be sold for cash. But what kind of cash? Should you hold onto the jewelry or sell it? Perhaps you should trade it for gold or silver coins.

On Sunday evening all TV and radio networks simulcast a Presidential address. In a terse statement, the President declares martial law in effect immediately. From now on, you will see troops on the streets, and all police officers will be dressed in SWAT team military gear, carrying AR-15 rifles.

On Monday, you call your boss and ask if he can take back your paycheck and pay you in cash. He cannot, since the business account is frozen just like everyone else’s accounts. He also tells you not to come in at all until the credit and banks work again. By the way, you’re not getting paid for your time off.

On Tuesday, you go to your local supermarket. When you arrive, you find armed guards at the entrances who search you for weapons before you enter. Upon entry, you find that many of the shelves are empty. You’re able to buy some canned goods, but that’s about it…and you only had $26 bucks anyway.

By Thursday, The World Bank has replenished some banks’ cash reserves. Some banks have re-opened for only a couple hours per day, and have restricted service to drive-up service only. Most people park their cars to save fuel and line up on foot to use the drive-up service. The employees that do show up for work are locked safely inside the branch away from the angry mobs. Women, who comprise most of the branch bank work force, are too scared of mob violence at the bank. Some refuse to work and some simply quit.

But many banks cannot reopen again, since the larger financial fallout has made them bankrupt.
By Friday, news programs show story upon story of armed thugs breaking into homes, looking for food, cash, valuables…and guns. Other stories feature homeowners who fought off robbers and looters with their own weapons, and showed film of the thugs lying dead in the front lawn. Cops are nowhere to be found, responding to calls more serious than simple robberies.

Only one week has passed in America, and things are only going to get worse. How are you going to feed your family? How are you going to keep the utilities on if you cannot work, earn money, get paid in cash and pay the utility companies? How will you pay if you need medication at your pharmacy, or need medical treatment? How are you going to keep your cell phone working? How are you going to feed your pets?

All of your neighbors are in the same mess you’re in. But now, you’re meeting together to see about ways to band together for safety, protection, and sustenance.

Now, you will see prices of all goods and services skyrocket. Inflation of 200%…300%…500% are common. Soon, those annual rates of inflation might become weekly rates.

A black market of goods and services springs up quickly. But the Federal Reserve or World Bank Euro currency is not accepted in this black market. Only gold and silver coins are accepted as money. For those who possess gold and silver coins, most goods that are unavailable to paper money users are readily available.

What’s happening to the poor…the sick…the elderly? Actually, the elderly may do better than you do, since the elderly are known for keeping more cash at home than most families. But this reputation will also make them prime targets of criminals who will rob them of their cash and valuables. For those who cannot fend for themselves, hunger and death are a very real possibility.

And folks, we are less than two weeks into the economic crash.

If the economic crash lasted a month, or two or three months, America would see a complete breakdown of society, with massive death tolls due to starvation and crime. There are going to be millions of men and women whose jobs will simply vanish, never to return. Millions of businesses will close, as consumers deem them to be unimportant to survival. What will these people do to earn an income? What skills do they have?

Eventually, states are going to have to decide if they are going to allow themselves to be run by Washington, or if they believe they can do better. One of the only ways to lessen the cultural chaos that has been portrayed here is for an American state to secede from the Union and establish a gold/silver monetary system. Even secession after the economic collapse will not protect anyone from the short-tem fallout of being unprepared to weather a disaster. But secession with a gold/silver monetary system is the ONLY possible method of cutting short the disastrous effects of the inevitable economic collapse. No one believes that Washington will ever again accept Constitutional restrictions and a gold standard for money. So, absent any help from DC, state secession is the only possible solution for governance and the only way out of economic collapse.

In conclusion, let me say that I am not trying to convert the sycophants of tyrants into liberty lovers, although that might happen in isolated incidents. I am writing to give crucial information to any citizen who is disturbed about America, and to encourage rebellion and sedition by the rest of the Americans who already know they are DC slaves.

Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.
Full article Here

Sunday, January 24, 2010

NewAmericaNow - Saving the Republic

This coming Saturday, January 30th, 2010

A Special Two Hour Show starting a four part series

Saving the Republic

Patriots, concerned Citizens, all Americans please join us in the most important talk on Radio anywhere.

The United States is slowly dying, and we are here to conceive an action plan for Citizens to unite and save our nation while we still can. Join us and contribute to the discussion for Two Hours on Saturday as the first part of a Four Part Series.

If your not part of the Solution, your part of the problem.

See you there.

Monday, January 18, 2010

Preparing for the Coming US Economic Collapse

By Ron Chapman

G'day cobbers,

I get the impression that some forum posters think nothing is more
important than being negative about AH and its goals. If I were in
their situation I would be packin' death about what the future holds –
especially for those living in the good old US of A. IF one truly
believes that US-style 3D life is all there is one needs to get into
ECONOMIC COLLAPSE mode FKN quickly. There ain't much time left.

Currently the U.S. economy is poised to perform a magical disappearing

Many of the problems that sank the Soviet Union now endanger the US.
For instance, like the Soviet Union in the late 1980s, it has a huge,
well-equipped and very expensive military bogged down fighting Muslim
freedom fighters in foreign lands. Also, energy shortfalls linked to
peaking oil production and horrendously unfavourable capital account
and trade balances is resulting in runaway foreign debt. Add to that a
delusional self-image, an inflexible ideology, and unresponsive,
totally corrupt authoritarian judicial and political systems.

When supported by corrupt judicial and political systems economic
arrangements can continue through sheer inertia well after they become
untenable. But eventually the tide of fraudulent practices, broken
promises and failed corporate activities flushes it down the drain.
The US economy and society currently floats on the false assumption
that it is possible to perpetually borrow increasing sums of money
from the rest of the world, to pay for ever-increasing manufacturing
and energy imports, while the price of those imports steadily
escalates. In particular the US economy and polity floats on the
notion that free money (fiat petro-dollars and US Treasury notes) will
always be able to buy energy imports from foreign lands. This use of
free money equates to FREE energy. But good things don't last forever
and so the US's free petro-dollar scam is a transient condition. Once
the US dollar loses its world reserve currency status based on its
role as the petro-dollar (as is now happening) the flow of FREE energy
to the US will cease and much of the US economy will be forced to shut

Fuel shortages will precipitate shortages of food, medicine, and
countless consumer items, outages of electricity, gas, and water,
breakdowns in transportation systems and other infrastructure,
hyperinflation, widespread shutdowns and mass layoffs, along with a
lot of despair, confusion, violence, and lawlessness. Moreover, there
is no evidence that the US governing elite has any grand rescue plans
or innovative technology programs with which to prevent the coming
socio-economic catastrophe, nor does US society evince any signs of
manifesting any miracles of social cohesion during the impending
economic implosion.

US society is based on money. In the coming economic collapse the
governing elite is already fuelling that collapse by pumping excessive
quantities of virtual (credit) money into the banking system. The
result will be hyperinflation, which wipes out savings. As oil and
other import prices escalate they will be accompanied by rampant
unemployment, which wipes out incomes. The result is a population that
is largely penniless.

As most employment in the US is in the private sector, the transition
to permanent unemployment of much of the workforce is likely to be
sudden as businesses rapidly shed workers in an effort to stay viable,
or go into liquidation.

In the US very few people own their place of residence free and clear,
and even if they do they need an income to pay real estate and other
taxes. So, people without an income face homelessness. When the
economy collapses, very few people will continue to have an income, so
homelessness will become rampant. Add to that the motor vehicle (mv)
dependent lifestyle in most US cities and the countryside, and the
result of mass unemployment can only be mass migrations of homeless
people, mostly towards city centres.

The US population is almost entirely mv-dependent, and relies on
markets that control oil importation, refining, and distribution. They
also rely on continuous public investment in road construction and
repair. Also motor vehicles require a steady stream of imports of both
parts and whole vehicles neither of which are designed to last very
long. When these intricately inter-dependent systems stop functioning
the bulk of the US population will be virtually immobilised as public
transport systems are negligible.

US families generally tend to be atomized, geographically dispersed
and unused to sharing. Families unused to sharing in good times are
likely to find it very difficult to co-operate in bad times.
Competitiveness and personal isolation tend to be endemic already and
economic collapse is unlikely to cure these attitudes and situations.

Economic collapse tends to shut down both local production and
imports, and so it is vitally important that anything you own wears
out slowly, and that you or someone in your family or community (if
you have one to call on) can fix it if it breaks. This is another
reason why AH is exhorting people to develop their community

In the US most people get their food from a supermarket, which is
supplied from far away using refrigerated diesel trucks. Many people
also eat fast food. When people do cook, they rarely cook from
scratch. Apart from being unhealthy, these habits will cease to be
viable if super markets and fast food sellers are unable to get food
supplies from distant places. On the positive side, obesity will cease
to be a problem for most people.

US health care is for profit. Once the economy collapses, the profit
ceases, as will most of the services it motivates.

This article is based on the information in the article "Closing the
'Collapse Gap': the USSR was better prepared for collapse than the US"
by Dmitry Orlov Published on 4 Dec 2006 by Energy Bulletin. Archived
on 4 Dec 2006. See

Orlov's article compares and contrasts the situation of the Soviet
Union when it collapsed at the beginning of the 1990s with the
situation in the US at the end of 2006. In my opinion this article is
a MUST READ for anyone seriously concerned about surviving the
impending economic difficulties facing the population of the US in the
near future.

Orlov says, rightly in my view, that a new subsistence/barter economy
emerges almost immediately in the aftermath of an economic collapse,
whatever its cause.

The scenario discussed by Orlov is predicated upon the current 3D
economic situation, absent ANY Earth changes or other physical
catastrophes that could create or exacerbate it.


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Thursday, January 7, 2010

2010 Food Crisis and Financial Armageddon

by Eric deCarbonnel

If you read any economic, financial, or political analysis for 2010 that doesn’t mention the food shortage looming next year, throw it in the trash, as it is worthless. There is overwhelming, undeniable evidence that the world will run out of food next year. When this happens, the resulting triple digit food inflation will lead panicking central banks around the world to dump their foreign reserves to appreciate their currencies and lower the cost of food imports, causing the collapse of the dollar, the treasury market, derivative markets, and the global financial system. The US will experience economic disintegration.

The 2010 Food Crisis Means Financial Armageddon

Over the last two years, the world has faced a series of unprecedented financial crises: the collapse of the housing market, the freezing of the credit markets, the failure of Wall Street brokerage firms (Bear Stearns/Lehman Brothers), the failure of Freddie Mac and Fannie Mae, the failure of AIG, Iceland’s economic collapse, the bankruptcy of the major auto manufacturers (General Motors, Ford, and Chrysler), etc… In the face of all these challenges, the demise of the dollar, derivative markets, and the modern international system of credit has been repeatedly forecasted and feared. However, all these doomsday scenarios have so far been proved false, and, despite tremendous chaos and losses, the global financial system has held together.

The 2010 Food Crisis is different. It is THE CRISIS. The one that makes all doomsday scenarios come true. The government bailouts and central bank interventions, which have held the financial world together during the last two years, will be powerless to prevent the 2010 Food Crisis from bringing the global financial system to its knees.

Financial crisis will kick into high gear

So far the crisis has been driven by the slow and steady increase in defaults on mortgages and other loans. This is about to change. What will drive the financial crisis in 2010 will be panic about food supplies and the dollar’s plunging value. Things will start moving fast.

Dynamics Behind 2010 Food Crisis

Early in 2009, the supply and demand in agricultural markets went badly out of balance. The world experienced a catastrophic fall in food production as a result of the financial crisis (low commodity prices and lack of credit) and adverse weather on a global scale. Meanwhile, China and other Asian exporters, in an effort to preserve their economic growth, were unleashing domestic consumption long constrained by inflation fears, and demand for raw materials, especially food staples, exploded as Chinese consumers worked their way towards American-style overconsumption, prodded on by a flood of cheap credit and easy loans from the government.

Normally food prices should have already shot higher months ago, leading to lower food consumption and bringing the global food supply/demand situation back into balance. This never happened because the United States Department of Agriculture (USDA), instead of adjusting production estimates down to reflect decreased production, adjusted estimates upwards to match increasing demand from china. In this way, the USDA has brought supply and demand back into balance (on paper) and temporarily delayed a rise in food prices by ensuring a catastrophe in 2010.

Overconsumption is leading to disaster

It is absolutely key to understand that the production of agricultural goods is a fixed, once a year cycle (or twice a year in the case of double crops). The wheat, corn, soybeans and other food staples are harvested in the fall/spring and then that is it for production. It doesn’t matter how high prices go or how desperate people get, no new supply can be brought online until the next harvest at the earliest. The supply must last until the next harvest, which is why it is critical that food is correctly priced to avoid overconsumption, otherwise food shortages occur.

The USDA—by manufacturing the data needed to keep supply and demand in balance—has ensured that agricultural commodities are incorrectly priced, which has lead to overconsumption and has guaranteed disaster next year when supplies run out.

An astounding lack of awareness

The world is blissful unaware that the greatest economic/financial/political crisis ever is a few months away. While it is understandable that general public has no knowledge of what is headed their way, that same ignorance on the part of professional analysts, economists, and other highly paid financial “experts” is mind boggling, as it takes only the tiniest bit of research to realize something is going critically wrong in agricultural market.

USDA estimates for 2009/10 make no sense

All someone needs to do to know the world is headed is for food crisis is to stop reading USDA’s crop reports predicting a record soybean and corn harvests and listen to what else the USDA saying.

Specifically, the USDA has declared half the counties in the Midwest to be primary disaster areas, including 274 counties in the last 30 days alone. These designations are based on the criteria of a minimum of 30 percent loss in the value of at least one crop in the county. The chart below shows counties declared primary disaster areas by the secretary of Agriculture and the president of the United States.

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