Consequences To Expect If The U.S. Invades Iran

Guest Post by Brandon Smith

Let’s be honest, quite a few Americans love a good war, especially those Americans who have never had to bear witness to one first hand. War is the ultimate tribally vicarious experience. Anyone, even pudgy armchair generals with deep-seated feelings of personal inadequacy, can revel in the victories and actions of armies a half a world away as if they themselves stood on the front lines risking possible annihilation at the hands of dastardly cartoon-land “evil doers”. They may have never done a single worthwhile thing in their lives, but at least they can bask in the perceived glory of their country’s military might.

This attitude of swollen ego through proxy is not limited to the “Right” side of the political spectrum as some might expect. In fact, if the terrifyingly demented presidency of Barack Obama has proven anything so far, it is that elements of the “Left” are just as bloodthirsty as any NeoCon, and just as ready to blindly support the political supremacy of their “side” regardless of any broken promises, abandoned principles, or openly flaunted hypocrisies. No matter how reasonable or irrefutable the arguments against a particular conflict are, there will ALWAYS be a certain percentage of the populace which ignores all logic and barrels forward to cheerlead violent actions which ultimately only benefit a select and elite few.

They do this, though they rarely openly admit it, because of unbalanced and irrational biases which drive their decision making processes. In the case of the wars in the Middle East, the common public argument boils down to one of “self defense”. “They are coming to get us!” At least, that is what we are constantly told. And I’m sure that some Americans out there truly believe this. However, in their heart of hearts, others instead relish the idea of imposing their world views and philosophical systems upon others, even if it means using cluster bombs and predator drones.

Some people simply hate Muslims, for one reason or another. Some people believe that war will bring with it economic gain. Some are so afraid of what they do not comprehend that they only feel secure by attacking it. Some believe that the U.S. citizenry is morally obligated to become entangled with governments like Israel’s, and support them without question as if they are infallible, though they are often just as corrupt as the governments we are directed to despise. And yet others (for religious purposes), actually clamor for Middle Eastern destruction in the desperate hopes that their version of biblical prophecy will be vindicated. Ultimately, most Americans who support continued destruction in the Middle East, or anywhere else for that matter, do so out a selfish need for private absolution and elevation, not out of a sincere sense of patriotism, and not because nations like Afghanistan, Iraq, Libya, or Iran present a legitimate danger to their safety.

These men and women have invested their very identities into the mechanizations of collective war. They will not be swayed by evidence or honorable arguments. Any criticism of the actions of the collective will immediately be treated as a personal attack on their individual character, causing their minds to shut down completely.

As far as Iran is concerned, I am not here to convince the war-drum pounding zombie hoards infesting the mentally impotent sewage soaked wastelands of my country that their rationalizations for raining laser guided death on the third world is a “reprehensible thing”. Given their impenetrable biases, which I listed above, that would be a complete waste of time.

I could, indeed, point out how in 1953 the U.S. and Britain overthrew the democratically elected leader of Iran, Mohammad Mossaddegh, because he refused to allow global corporate interests to exploit his country’s oil resources. I could outline how the forced CIA installation of the Shah in Iran and the creation of his secret police led to the torture and murder of thousands of innocent people. I could list similar covert activities over the past 100 years or so, in countries all over the world, which have created the now universal disdain the third world has for the U.S. government. I could even show them a PBS special from 1987 which effectively details this history and warns of what is now going on today. The kind of mainstream news coverage that networks currently blacklist honest and daring journalists for:
























But what about all the nuclear talk being shoved down our throats lately? Doesn’t this supersede any historical concerns between Iran and the U.S.? What if the terrorists get their hands on “the bomb”?!

On this issue, I could easily interject the fact that countries supposedly hostile to the U.S., like North Korea, have long had nuclear capability, and certainly the means to use infiltrators to deliver that technology, yet, we haven’t sent the Western war machine after them. I would also set the record straight by mentioning that the ONLY country in the world that has used a nuclear weapon against another is the U.S. I could educate these people on the exposure of secret Israeli nuclear weapons programs since the 1970’s, and the fact that Israel even attempted to illegally sell this technology to Apartheid South Africa:

http://www.abc.net.au/news/2010-05-24/israel-tried-to-sell-nuclear-weapons/839404

I could try to clear the air by reminding the uninformed that Secretary of Defense Leon Panetta recently admitted that Iran has no nuclear weapons capability. And, that this fact was repeated by an Iranian nuclear scientist, Sharhram Amiri, who defected to the U.S. in 2010 with the help of the CIA in the hopes that he could be used to disseminate propaganda on “secret” nuclear weapons programs in his former homeland. Instead, he only reinforced the assertion that there are no such programs:

http://www.atimes.com/atimes/Middle_East/LG21Ak01.html

With the CIA made to look foolish, they have now decided that Amiri is “peripheral” to the Iranian nuke programs, and is no longer a solid source of information. I could follow by pointing out how decidedly convenient this is…

What about all the similarities between the lies on WMD’s in Iraq and the rhetoric against Iran today? What about the disinformation put forward by the IAEA and its cadre of foreign policy yes-men?

What about the fact that back when Iran was run by our own puppet leader, the Shah, an iron-fisted sociopathic dictator, we were more than happy that the country was developing nuclear power plants:



Sorry, but sharing this information with the warmongering percentage of our American culture is futile. None of this data means a thing to them. For these people, it’s not about facts; it’s about foggy perception, uncontrolled emotion, and false identity. Understanding the situation only complicates their pursuit of the next collectivist high; that frenetic freak frenzy that takes hold of a population and makes them swarm like mad bees, or hungry piranha, poisoning and devouring everything in their path.

With this in mind, the only recourse I could possibly think of to wake them up to their philosophical and moral folly is to expose them to very real and debilitating consequences they will face in their everyday lives in the wake of expanded conflict on the part of the U.S. That is to say, you may hate Iran, you may hate Iranians, you may despise Muslims, you may be driven by a childish need to live vicariously through the exploits of your government, or, you might actually believe the hype that Iran is in league with Al-Qaeda, that they really are after nuclear weapons in a diabolical plot to harm Americans, and you might truly believe that Israel is that “beacon of freedom” in the Middle East and that all its neighbors must be pacified for the sake of democracy. At bottom, whatever your deepest intentions, and whatever you might think, this is irrelevant in the face of the inevitable costs of war. If you support such a war, here is how it will affect you when it breaks loose:

Exploding Oil Prices

The U.S. has had a ban on Iranian oil imports since 1979, however, Iran still supplies about 5% of the global oil market. This might not seem like much, but Iran also has the means and ability to shut down the Straight of Hormuz, which is one of two major petroleum choke points in the world. Around 17 million barrels of oil per day are shipped through the Straight of Hormuz, or about 20% of all oil traded worldwide.



In 2006, during the last major Iran war scare, experts predicted gasoline price increases in excess of $10 a gallon if Iran was invaded.

http://money.cnn.com/2006/02/07/news/international/iran_oil/

This would devastate the U.S. economy, which is already hanging by a thin thread. Iran has announced this past weekend it will cease all oil shipments to Britain and France in protest of their support of economic sanctions. This alone is causing oil to spike today. A global energy crisis will financially decimate average citizens who will have their savings sapped by extreme price inflation, not just in gasoline, but in all goods that require the use of gasoline in their production and shipping. If you like this idea, then by all means, support an invasion of Iran.

War Domino Effect

In January of 2010, I wrote an article for Neithercorp Press entitled “Will Globalists Trigger Yet Another World War”. In that article, I warned about the dangers of an invasion of Iran or Syria being used to foment a global conflict, in order to create a crisis large enough to distract the masses away from the international banker created economic collapse:

http://www.alt-market.com/neithercorp/press/2010/01/will-globalists-trigger-yet-another-world-war/

In 2006, Iran signed a mutual defense pact with its neighbor, Syria, which is also in the middle of its own turmoil and possible NATO intervention. Syria has strong ties to Russia, and even has a revamped Russian naval base off its coast, a fact rarely mentioned by the mainstream media. Both Russia and China have made their opposition clear in the case of any Western intervention in Iran or Syria. An invasion by the U.S. or Israel in these regions could quickly intensify into wider war between major world powers. If you like the idea of a world war which could eventually put you and your family in direct danger, then by all means, support an invasion of Iran.

Dollar Collapse

Make no mistake, the U.S. dollar is already on the verge of collapse, along with the U.S. economy. Bilateral trade agreements between BRIC and ASEAN nations are sprouting up everywhere the past couple months, and these agreements are specifically designed to end the dollar’s status as the world reserve currency. An invasion of Iran will only expedite this process. If global anger over the resulting chaos in oil prices doesn’t set off a dump of the dollar, the eventual debt obligation incurred through the overt costs of war will. Ron Paul has always been right; it doesn’t matter whether you think invasion is a good idea or not. We simply CANNOT afford it. America is bankrupt. Our only source of income is our ability to print money from thin air. Each dollar created to fund new wars brings our currency ever closer to its demise.

This combination of disastrous economic policy and disastrous foreign policy has actually been used before. Great Britain once sat in the position of economic authority that the U.S. sits in today, and the pound sterling was once considered the world reserve because it was required in the global trade of oil, just as the dollar is now. However, British intrigues in the Middle East, and more specifically in Egypt, led them into extreme debt. In the 1940’s and 1950’s, international banks led by America and France threatened to dump British Treasury Bonds in response to their efforts to dominate Middle Eastern oil. Does any of this sound familiar?

This ultimately led to considerable devaluation of the pound. In 1967, the death blow was finally delivered when Prime Minister Harold Wilson artificially reduced the British exchange rate by 14% overnight! Meaning, in the span of a single evening, British citizens lost 14% of their buying power, and every product they went out to buy the next day would cost them 14% more.

It would be practical to mention that the move to destroy the British pound came right in time for the implementation of new programs for the construction of the European Union, and the Euro, the new supranational currency which would later become the standard. The EU and the Euro never could have come about while the Pound Sterling remained a world reserve. Just another amazing coincidence I’m sure, and one that couldn’t possibly have any relation to what is happening to the dollar in 2012, right…?

So, if you like the idea of losing 14% or more of your buying power overnight, and having that financial loss blamed on the tides of war, rather than on the corporate bankers who actually created the mess, then by all means, support an invasion of Iran.

Civil Liberties Destroyed

Do you like being able to walk down the street without having to suffer through constant pat-downs by low wage brain-dead cretins in blue gloves? Does it make you feel good to know that if you are ever arrested, whether you are guilty or not, you are guaranteed by law to receive a fair trial by your peers in a civilian court with a lawyer by your side? Do you enjoy taking a long drive with the family without facing check points, and predator drones constantly overhead every time you put the top down to feel the wind in your hair? Don’t get too comfortable, folks! These “luxuries” will soon be a thing of the past, especially as the U.S. financial situation deteriorates and war escalates. Think of all the new threats the elites in our government can use to rationalize the usurpation of Constitutional protections when war with Iran, or Syria, or Russia, or China, or all of them at once, breaks out.

The term “terrorist” will take on a whole different dynamic. Great national dangers often facilitate broader definitions of who is and who is not an “enemy of the state”. Crisis gives wings to legislation like the NDAA. In this kind of despotic environment, no one, even those citizens who support the state in nearly all of its enterprises, is safe. Maybe you love the idea of war with Iran, but at the same time, hate the idea of having a TSA goon manhandling your wife or daughter in a train station or on a street corner. Good luck with that. Speaking out could be treated as disruption of national security measures. Off to the gulag with you!

The “greater good” somehow always entails the dissolution of civil liberties for the common man. Invariably, the establishment in power favors no one, save a highly connected few. Being pro-establishment does not necessarily protect you from a government given free reign to do whatever it pleases in wartime. In the end, everyone is fair game.

If this is the kind of America you want to live in, by all means, support an invasion of Iran.

If You Can’t See The Big Picture, You Can’t See A Thing…

The relentless drive for war in the Middle East is not about “spreading democracy”. It is not about terrorism. It is not about oil (at least for the most part). It is not about Israel (at least, not the Israeli people). It is not even about corporate profiteering by the Military Industrial Complex. War in the Middle East is about changing the way our country and our world operates, culturally, socially, financially, and politically. War opens doors to social re-engineering that could never be accomplished otherwise. War creates fear, panic, rage, and allows dystopian fallacies to reign supreme. War, unjust and dishonorable war, makes countries weak, and ripe for violent change.

Iran is not a threat to our way of life, and never has been. But, war in Iran could easily upset the core of our entire country, and leave us wayward strangers in the land we were born.

While much of the rhetoric of preemptive invasion that America has been awash in these past few months is carefully crafted and disseminated by government entities whose intentions are far from honest, its effectiveness is mute without the helping hand of a thoughtless subsection of the public. Every decade or so, a new generation of idiot spawn comes of age to be willingly sacrificed on the chopping block of globalist conquest. This new decade brings with it the promise of not just more of the same, but perhaps the most costly tithe to the gods of war ever made in our country’s history. This is not our fight. This is a fight we are being conned into undertaking for the profit of others, and thus, it is a fight we cannot win. Perhaps when the blind mobs of this nation feel the abrupt sting of their foolishness in their narrow day-to-day existence, they will finally understand…

Original Article

A Warning Sign For The World

Guest Post by Michael Snyder

Any financial system that is based on debt is doomed to fail. Today, we are living in the greatest debt bubble that the world has ever seen, and if all of a sudden people could not use credit to buy things our economy would immediately ground to a halt. Unfortunately, no debt bubble can last forever. When this current debt bubble finally bursts, faith in the financial system is going to disappear, credit is going to freeze up and there is going to be a massive wave of bank failures. Right now, Greece is a warning sign for the world. Nobody wants to lend money to Greece, the Greek banking system is dying, one out of every four businesses has already shut down, unemployment is soaring and the Greek economy has now been in recession for five years in a row. Sadly, the economic implosion in Greece is rapidly accelerating. The Greek economy shrunk at a 7 percent annual rate during the 4th quarter of 2011. That wasn't supposed to happen. Things were supposed to be getting better in Greece by now. But instead the Greek depression is getting even worse, and very soon the rest of the world is going to be going through what Greece is currently experiencing.

Unfortunately, most in the mainstream media are treating what is happening in Greece as an "isolated incident" rather than as a very serious warning sign for the world.

Thankfully, there are at least a few reporters out there that are realizing the gravity of the situation. The following is how one reporter from the New York Times recently described what life is like in Greece now....

By many indicators, Greece is devolving into something unprecedented in modern Western experience. A quarter of all Greek companies have gone out of business since 2009, and half of all small businesses in the country say they are unable to meet payroll. The suicide rate increased by 40 percent in the first half of 2011. A barter economy has sprung up, as people try to work around a broken financial system. Nearly half the population under 25 is unemployed. Last September, organizers of a government-sponsored seminar on emigrating to Australia, an event that drew 42 people a year earlier, were overwhelmed when 12,000 people signed up. Greek bankers told me that people had taken about one-third of their money out of their accounts; many, it seems, were keeping what savings they had under their beds or buried in their backyards. One banker, part of whose job these days is persuading people to keep their money in the bank, said to me, “Who would trust a Greek bank?”

Can you imagine?

Greece is experiencing a full-blown economic collapse and nobody can see a light at the end of the tunnel at this point.

As I have written about previously, the overall rate of unemployment in Greece has now risen above 20 percent and the youth unemployment rate in Greece has soared to an astounding 48 percent.

Deleveraging can be an extremely painful process. Greece has been forced to try to reduce the size of its budget deficit, but every time it cuts government spending that causes economic activity (and thus government revenues) to slow down as well.

Now the EU and the IMF are demanding that even more very painful austerity measures be implemented in Greece even though Greece is already experiencing a full-blown depression.

The EU and the IMF are demanding that Greece fire 15,000 more government workers immediately and a total of 150,000 government workers by 2015.

The EU and the IMF are demanding that wages for government workers be cut by another 20 percent.

The EU and the IMF are demanding that the minimum wage be slashed by more than 20 percent.

The EU and the IMF are also demanding significant reductions in unemployment benefits and pension benefits.

Of course all of those cuts are going to make the short-term economic conditions in Greece even worse.

The rioting, looting and burning of buildings that we are witnessing right now in Greece is likely to continue for quite some time as exasperated citizens attempt to express their frustrations to politicians that simply do not seem to care.

According to the National Confederation of Greek Commerce, recent rioting resulted in damage to 153 businesses in Athens. 45 of those businesses were totally destroyed.

You can view some stunning footage of the current rioting in Greece right here.

Despite all of the austerity measures that have already been implemented, the truth is that Greece is very likely to default soon anyway.

There is a very good chance that the new austerity agreement that the Greek parliament just approved will never be implemented. There are new elections scheduled for April and the current party in power is polling in the single digits.

The new Greek government is likely to look much different from the current one, and nobody knows for sure if the new government will follow through on any of the promises being made by the current government.

In addition, the German parliament must approve this new deal with Greece, and the German parliament is not scheduled to vote on it until February 27th. Considering the mood in Germany right now, approval is not guaranteed.

So there are all kinds of things that could go wrong with the "deals" that are currently being discussed. The truth is that a Greek default in the coming months seems to become more likely by the day.

Some in the financial world almost seem eager for a Greek default. The following is what Jon Moulton, the chairman of Better Capital, recently told CNBC....

"If I was Greek, I wouldn’t be going for these measures, I’d be going for default and getting it over with. Would you like two to three years of pain or 20?"

But a disorderly Greek default would not be a pleasant thing for the global economy at all. A recent article in the Guardian detailed what some of the consequences of a Greek default and exit from the eurozone might be....

But default and "re-drachmatisation" would be a costly and chaotic process. In the long term the euro might be strengthened if some of its weaker members headed for the door. But in the short term banks across the eurozone might have to be closed to prevent a run on the single currency as investors speculated about which country might be next. A new wave of bank nationalisations would be likely to follow as lenders counted their losses on now worthless Greek debt.

Capital controls would have to be imposed and borders shut to stop money flooding out of Greece. Portugal, Italy and Spain would come under intense pressure from investors wary about the risk of another victim. Banks everywhere, already reluctant to lend, would cut back hard, nervous about their exposure to the bonds of all Europe's crisis-hit states.

And the financial crisis in Europe is going to continue to spread well beyond Greece. Moody's Investors Service just downgraded the credit ratings of six European nations. The following is how Bloomberg described the downgrades....

Spain was downgraded to A3 from A1 with a negative outlook, Italy was downgraded to A3 from A2 with a negative outlook and Portugal was downgraded to Ba3 from Ba2 with a negative outlook, Moody’s said. It also reduced the ratings of Slovakia, Slovenia and Malta.

Countries such as Italy, Spain, Portugal, Ireland and Hungary are heading down the exact same road that Greece has gone. Greece was the first one to experience a full-blown depression, but soon Greece will have a lot of company.

Greece is most definitely a warning sign for the world. If you keep recklessly piling up debt, eventually a day of reckoning comes. It is inevitable.

But Barack Obama does not seem to understand this. He continues to pile another 150 million dollars on to our national debt every single hour. He knows that cutting spending significantly right now would hurt the economy and that would significantly hurt his chances for another term.

Needless to say, Barack Obama is not likely to do anything that is going to significantly hurt his chances for another four years in the White House.

So we continue to roll on toward disaster.

The U.S. financial system is like a car with no brakes that is heading straight toward a 5,000 foot drop at 100 miles an hour.

It is all going to seem like fun and games to some people until we hit the canyon floor.

Once that happens, nobody will be laughing.

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Original Article

Doomsday Report: THREE MILLION PREPPERS IN AMERICA Are Getting Ready For The End of the World As We Know It

Guest Post Mac Slavo

In the autumn of 2008, as Presidential hopefuls sparred over whether we had entered a recession or not and well before the onset of the most serious global crisis since the 1930′s, trend forecaster Gerald Celente advised his Trends Journal subscribers to prepare for the worst and plan for the best. “It will be,” warned Celente, “like nothing we’ve ever seen in our lifetime.”

The aware and prepared … those understanding just how out of control society would become, and those who had acquired the skills for survival would stand the best chance of navigating the chaos safely.

But Americans were not prepared. Not by a long shot

Very few had the foresight to predict that the economic system and social fabric of our nation would be threatened with upheaval and disarray. But some, whether through independent education or through intuition, deduced that there was a real possibility of a system shock so significant that life as we know it could be on the verge of a major paradigm shift – perhaps even a complete collapse of our economy and resource infrastructure.

As natural disasters around the world took the lives of hundreds of thousands, space agencies warned of solar disruptions that threaten our power grid, the economies of the world slid further into depression, and tensions between the world’s financial and resource super powers grew, more and more people began to realize that the stability we have come to depend on to live our daily lives was nothing but illusion.

With very few places to turn for support, most headed for the internet, where communities had popped up to discuss possible disaster and collapse scenarios, and ways to minimize the impact on oneself and family. That it was happening or could happen was no longer the question.

The real question was how to survive it when it finally came to pass.

With none of us ever having experienced (or even imagined) such a possibility before, many turned to guidance from experts in their fields – people like Gerald Celente or Marc ‘Dr. Doom’ Faber, who had an uncanny ability to see developing trends, and authors like survival expert James Rawles who wrote the popular economic collapse and survival cult classic Patriots and William Forstchen who penned One Second After, a frighteningly realistic look at what life without the grid might look like. First it was thousands, then tens of thousands of concerned Americans who began learning the essentials of survival by learning from each other with resources offered at web destinations like the American Preppers Network, Doctor Prepper, Survival Mom, Off Grid Survival and Ready Nutrition.

Those who chose to insulate themselves against coming disaster were often vilified or dismissed as lunatics by friends and family alike. And while many chose to ignore the trend which had become quite apparent, those who had the willingness to consider a different reality than had been painted by the powers that be just kept on preppin’.

As global malaise continued and the people began to lose confidence in political platitudes and corporatist solutions, the movement towards preparedness, survival and self reliance grew. After having seen what took place in New Orleans after Hurricane Katrina, many came to the conclusion that if the worst were to happen there would be no government to help, no 9-1-1 to call, and no emergency management agency to distribute food or water.

Today, at the cusp of possibly the most trying times in human history, more Americans than ever before are preparing for the possibility of disaster.

As many as three million Americans now fall into the category dubbed ‘preppers’ – people who are making detailed plans for the end of the world as we know it.

The preppers are an ever-growing group of survivalists who take extreme measures to prepare for a major catastrophic event.

…

More than 300,000 people a month visit the movement’s website, survivalblog.com, which catalogues how people are preparing for the worst.

The website has been set up by James Rawles, a former US Army intelligence officer, who is one of the movement’s leading figures.

Speaking to The Times, he said: ‘Should the worst happen, it’s become apparent that the Government can’t provide for everybody. And now that realisation is becoming more widespread.‘

…

‘People invest so much money in life insurance,’ Mr Ralston told National Geographic. ‘This is life assurance.’

He is like some of the people featured on National Geographic’s new show Doomsday Preppers, which chronicles a new prepper each week, delving into their conceptions of the end and what they’re doing to prepare for it.

‘It’s not a hobby, it’s a lifestyle,’ Gloria Haswell told National Geographic. She and her husband spend 50 hours a week getting ready for a climate shift in the poles.

…

‘These are not just a handful of people living in the mountains,’ National Geographic Channel’s executive vice president of programming Michael Cascio told the Wall Street Journal. ‘They’re everywhere.’

…

The Journal notes that Nat Geo has begun appealing to a growing subculture that has seen the past disasters – from last year’s tsunami and earthquake in Japan to riots to economic uncertainty – and have wanted to prepare the best they can.

‘The last few years have probably exacerbated the doomsday fear,’ Mr Cascio told the Journal. ‘The world is changing.’

Source: UK Daily Mail

This week the National Geographic series Doomsday Preppers debuted to an audience of four million, a testament to the fact that preparing for disasters – regardless of the kind – is a growing trend, and one that’s popular even among those that have been affectionately dubbed the sheeple. No doubt some of those watching the show, who never considered the possibility of far-from equilibrium events, will take to preparing right away.

Most seasoned preppers will agree that those first few weeks and months of preparedness are the most stressful, with emotions being described by newbies as anxiety and panic. For those just getting started, you should feel better knowing that it’s better late than never.

What you may be experiencing today isn’t panic. It’s a sense of urgency, and that’s a positive motivator that can, with focus, drive you to quickly and effectively achieve your goals.

Panic is what we’ll see from those remaining 99% of Americans who have failed to take measures to protect themselves from the coming devastation.

(*Note: The preparedness books and websites mentioned in this article are only a handful of fantastic destinations you can visit to read articles and guides, join communities, and download resources. Check out the Web Destinations at SHTFplan.com and The Prepper Website for an extensive list of excellent resources.)

Original Article

How Will The American Economy Die?

Guest Post Russell D. Longcore


I have been writing about secession now at DumpDC.com since May of 2009. One of the constant themes of my writings is that secession is not going to happen in America until and unless the economy collapses. AFTER it collapses. A lot of what I’ve written has been perception, conjecture and prediction based in reason. But much of that conjecture and many of those predictions are now coming true. Tick. Tock. It’s not a case of “If,” like there was a possibility that America could avoid collapse. Now, it’s simply a countdown to inevitability.




The following is a plausible and likely scenario of the death of the American economy.



First, the money goes.



The world economic system is built upon two things: (1) fractional reserve banking and (2) fiat money. There is not one nation on earth that has a commodity-based money and currency. Keynesian economics, taught in nearly every college Econ curriculum, is so ubiquitous…so ingrained…that it is like the dye colors in your shirt. No amount of washing gets the dye out.



Is there a banker on earth that does not use fractional reserve banking? Money is created out of thin air and pumped into the world economy. It would be impossible without fiat currency…the currency considered to be money because some government says that it is. When your currency is backed by “the full faith and credit of” your government, and nothing else, and your government goes broke…your currency is not far behind. In the regular world, issuing paper money with nothing behind it is called “Counterfeiting.”




The power in Washington is built on those two things above and add a third: the US Dollar is the world reserve currency. Being the world reserve currency was brought about back in the early 1970s when Nixon negotiated a deal with the House of Saud, in which Nixon guaranteed the Saudis that he would protect their kingdom from their neighbors if they agreed to (a) use only the US Dollar to settle oil payments, and (b) use their surpluses to buy US Treasury debt instruments. Over time, the Dollar became the currency all nations used to settle all kinds of commercial transactions. This reserve status gave the USA a tremendous advantage over all other nations. The blowback of unintended consequences is that many foreign nations own trillions of US Debt, and that gives those nations leverage over Washington. For a good look at who owns US Debt, CLICK HERE.



Right now, in real time, Washington is making plans to make war upon the nation of Iran. They are using the excuse that they must keep Iran from possessing nuclear weapons. The reality behind the scenes is that Iran started an oil bourse (a commodity exchange) on Kish Island in 2008, specifically to begin trading their own oil in currencies other than the US Dollar. That is a grave threat to the reserve currency status of the Dollar. Previously, Iraqi President Saddam Hussein announced that Iraq was going to begin accepting payments for oil in Euros, not Dollars. What happened to him? Muamar Gaddafi of Libya was buying enormous quantities of gold bullion with the intention of creating an African dinar, a gold-backed money for all of the African nations to use. Where is Gaddafi now?



“But so what?” you may ask.



The only thing that maintains the purchasing power of the Dollar is its world reserve status. You already know that the Dollar has no precious metals backing it. The Dollar only has the “full faith and credit of the United States” behind it. But Washington is many dozens of trillion dollars in debt. Some estimate that the US has over $100 Trillion of debt. Just a week ago, the United States current Federal budget debt limit reached $15 Trillion, and that is equal to the Gross Domestic Product (GDP) of the entire nation. So we owe more now than we take in annually.




Any action by any other nation that threatens the world reserve currency status of the US Dollar panics Washington. They must snuff it out by whatever means necessary. Even war.



But they cannot.



Iran has powerful friends around the globe. Just last week, Iran inked a deal with India to sell them oil for gold. Iran will do the same with China. Russia will pay with gold and rubles. And, because Iran sits on an ocean of oil, and many nations rely upon its oil for survival, Iran will defeat Washington and its allies who have set up embargoes against Iran.



The whole world does not have to forsake the Dollar all at once to send shock waves through Washington. But more and more nations are rejecting the terms of the DC/European embargo against Iran. On Thursday, Turkey announced that they would not participate in the embargo. Turkey is a very crucial ally to DC. One at a time, nations will find that they can do business around the world in their own currencies or in gold.



But here’s another unintended consequence, and a potential trigger for the collapse of the Dollar. As nation after nation decide they do not need the Dollar, they will do what they can to rid themselves of American currency and American debt. Nations around the globe have purchased US Treasuries. Now they will have no need for the bonds, and will want to sell them. Questions come up: Who will buy them? And what are they worth?




What happens when you offer bonds for sale and no one buys them? You have very expensive wallpaper or toilet paper. What happens when you CAN sell them, but at pennies on the Dollar? You take staggering losses.



One other problem is timing. In order to reclaim some value for US Treasuries, your nation’s bond traders must have perfect timing to offer enough bonds for sale but not so many that it triggers a bond market collapse. Then to find buyers at acceptable prices? It is not reasonable to believe that every nation will find buyers at all, at good prices and not create a bond market crash.



So, built into the global process of forsaking the US Dollar as the world reserve currency are the seeds of the Dollar’s collapse. Either the bond market collapses as nations get out of the Dollar, or getting out of the Dollar causes the value of the Dollar to collapse. Keep in mind that if the Dollar were as “good as gold,” no nation would want to jettison the Dollar.



Dear Readers, there is no third choice that prevents the collapse of the Dollar.




What Does Collapse Mean?



There can only be one meaning for the word “collapse.” Hyperinflation is that collapse. Think about it. Inflation is the loss of purchasing power. Inflation that occurs over decades is like death by a thousand cuts. Americans for the last 80-plus years are used to inflation and the loss of their purchasing power. In hyperinflation, what took perhaps 40 years to lose a certain amount of purchasing power can easily happen in 40 days…or even 40 hours. There will come a day soon here in America when the Dollar will not be accepted between buyers and sellers for even the simplest transactions. It happened in Zimbabwe. I presently own 160 Trillion in Reserve Bank of Zimbabwe currency, and I paid six dollars for it.



The American Dollar has purchasing power…value…now because the world uses it. And the nation with world reserve currency status that is inflating its money will continue to pay its debts with fiat currency, which is losing more and more value. Once an unknown number of nations stop…or even just slow down…using the Dollar for international trade, the value of the Dollar will evaporate. I say “unknown” because it’s not just the number of nations that is important. It is the economic might of the nations that stop using the Dollar. If the BRIC nations…Brazil, Russia, India and China…arguably the four strongest non-USA world economies...continue the process of weaning themselves off the Dollar, it will have drastic and sudden repercussions for the Dollar.




Also remember how this world turns. The business day in Berlin, Rome or Athens is six hours ahead of the American East Coast. A bond market collapse could start in a European bond market at 9:00 am in Berlin while it’s 3:00 am in New York. The Dollar could get hammered on foreign markets for six hours before the banks open in New York, or the New York Stock Exchange opens for business at 9:30 am. Americans will be completely defenseless against the collapse.



Washington’s Response



The politicians in DC will be powerless to stop the financial carnage because they cannot control the value of a currency that others refuse to use. The Federal Reserve may pump additional trillions of greenbacks into the American economy, but at some point, wheelbarrow loads of paper money won’t buy you a loaf of bread. This will cause the Federal bureaucracy to grind to a halt as Federal union employees refuse to work for worthless money. And how will Washington pay its military personnel? How will state governments pay their law enforcement officers and prison guards? Society will collapse at that time. It will be The End Of The World As We Know It.



You see, when the VALUE of the American Dollar ceases to exist, our bubble society will also cease to exist. This is why I hold the position that once the economic system in America fails, Washington will be entirely unable to stop secession. And that only the collapse of the Dollar will trigger the desire for secession.



Here is the mental picture I want you to form when thinking about the world economic system. Blowing soap bubbles. You dip a drinking straw into the bubble liquid and begin blowing on the dry end of the straw. Hundreds of bubbles of many sizes will form, expand and then pop. For a hundred years the world has experienced economic bubble after bubble…boom, bust, recession, depression, real estate, housing, tech stocks, mortgages but to name a few. But don’t miss this! When fractional reserve banking and fiat money run the world, ALL ECONOMIC ACTIVITY IS A BUBBLE that must eventually burst.




This has been a hard article to write. The subject is one of life or death for billions around the world, and millions on our own continent. I take no joy or satisfaction in this article, save the satisfaction of knowing that some of you will read this and act to save yourself and your family.



Think. Use your brain. Do not let anyone tell you how to think. Question ALL authority. Free Your Mind.



Secession is the only hope for humanity. Who will be first?

The Financial Crisis Of 2008 Was Just A Warm Up Act For The Economic Horror Show That Is Coming

Guest Post by Michael Snyder

The people out there that believe that the U.S. economy is experiencing a permanent recovery and that very bright days are ahead for us should have their heads examined. Unfortunately, what we are going through right now is simply just a period of "hopetimism" between two financial crashes. Things may seem relatively stable right now, but it won't last long. The truth is that the financial crisis of 2008 was just a warm up act for the economic horror show that is coming. Nothing really got fixed after the crash of 2008. We are living in the biggest debt bubble in the history of the world, and it has gotten even bigger since then. The "too big to fail" banks are larger now than they have ever been. Americans continue to run up credit card balances like there is no tomorrow. Tens of thousands of manufacturing facilities and millions of jobs continue to leave the country. We continue to consume far more than we produce and we continue to become poorer as a nation. None of the problems that caused the crisis of 2008 have been solved and we are even weaker financially than we were back then. So why in the world are so many people so optimistic about the economy right now?

Just take a look at the chart posted below. It shows the growth of total debt in the United States. During the financial crisis of 2008 there was a little "hiccup", but the truth is that not much deleveraging really took place at all. And since the recession "ended", total credit market debt has gone on to even greater heights....

So what does this mean for the future?

Well, if a small "hiccup" in the debt bubble caused so much chaos back in 2008, what is going to happen when this debt bubble finally bursts?

That is something to think about.

Sadly, most Americans seem oblivious to all of this.

If you go out to malls in the wealthy areas of America today, people are charging up a storm. In all, Americans charged a whopping 2.5 trillion dollars on their credit cards during 2011. Way too many people have already forgotten the lessons that we all learned back in 2008.

Of course some Americans pay off their credit cards every month, but way too many Americans are not doing that. In 1980, Americans were carrying 54 million dollars in revolving credit balances. Today, Americans are carrying 794 million dollars in revolving credit balances.

And student loan debt is an even bigger bubble than credit card debt is. As I have written about previously, total student loan debt in America is rapidly approaching a trillion dollars.

So it looks like U.S. consumers have not learned to stay away from debt.

That is not good.

Well, what about the banks?

Has the financial system learned any lessons since 2008?

No, not really.

Sadly, the "too big to fail" banks are now even bigger than ever. The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011. If they were to fail today, they would be even more of a threat to our financial system than they were back in 2008.

And our major banks continue to be very highly leveraged. In fact, major banks all over the world are absolutely swamped with debt.

The following statistics come from Zero Hedge....

The U.S. banking system is leveraged 13 to 1.

The Japanese banking system is leveraged 23 to 1.

The French banking system is leveraged 26 to 1.

The German banking system is leveraged 32 to 1.

These are insane levels of leverage, and they are just inviting another major financial crisis.

Do you all remember Lehman Brothers? The fact that they were leveraged so highly is what did them in back in 2008. When the value of their holdings declined by just a little bit they were totally wiped out.

Well, during this next financial crisis large financial institutions are going to be wiped out all over the world. Major banks all over the globe are going to be crying out for more bailouts when things take a turn against them.

They are making the exact same mistakes that they made before, and they are going to be expecting more government handouts when things go bad.

Will we ever learn?

So obviously the banking system has not learned any lessons.

What about the federal government?

Well, if you follow my blog regularly, you know that I love to write about how horrific U.S. government debt is.

Unfortunately, over the past four years things have gotten so much worse.

Back in 2008, the U.S. national debt crossed the 10 trillion dollar mark.

Just recently, it crossed the 15 trillion dollar mark.

So now we are in a much weaker position financially to respond to another major financial crisis.

Just check out the chart posted below. This is a recipe for national financial suicide....

During fiscal 2011, the Obama administration stole close to 150 million dollars from our children and our grandchildren every single hour.

At the moment, the legacy of debt that we are passing on to future generations is sitting a grand total of $15,351,406,294,640.49.

But keep in mind that it is going up every single hour.

Meanwhile, our ability to service that debt is declining. We are rapidly getting poorer as a nation.

During 2011, the amount of money that left the United States exceeded the amount of money that entered the United States by more than a half a trillion dollars.

This gap is called a trade deficit, and it is absolutely ripping our economy to shreds.

For a moment, imagine Uncle Sam standing next to a giant pile of money on a map of the United States. Then imagine a half a trillion dollars being taken out of that pile every single year.

So why haven't we totally run out of money yet?

Well, it is because we borrow those dollars back. In order to maintain our false standard of living, our federal government, our state governments and our local governments have to go out and beg the rest of the world to lend us our dollars back.

Sadly, our government schools have "dumbed-down" the population so much that most of them don't even know what a "trade deficit" is anymore.

Meanwhile, our economic infrastructure is being gutted like a fish.

Look, I know that I go over this point over and over and over, but it is absolutely imperative that we all understand this.

The half a trillion dollars a year that leaves this country every year could have gone to support businesses and jobs inside the United States.

But instead it is going to support businesses and jobs on the other side of the world.

The consequences of this are absolutely devastating.

According to U.S. Representative Betty Sutton, an average of 23 manufacturing facilities a day closed down in the United States during 2010. Overall, more than 56,000 manufacturing facilities in the United States have shut down since 2001.

Even many so-called "American companies" have been bought up by the rest of the world. The following comes from a recent article posted on Economy In Crisis....

RCA is now a French company, Zenith is a Korean company. Frigidaire is a Swedish company. IBM’s Personal Computer Division—with its 500 patents—is now a Chinese company. Westinghouse Nuclear Energy’s major shareholder is Toshiba—a Japanese Company. Lucent Technologies, a former research division of AT&T, along with all the patents acquired from the beginning of the phone system, is now a French company. In 2008, Brazilian-Belgian brewing company InBev purchased the iconic American brewer Anheuser-Busch, makers of Budweiser. With the sale of these manufacturing companies, the future profit and technologies all belong to foreign entities.

We once had the greatest economic machine in the history of the world.

Now it is being dismantled and bought up by foreigners.

When America's economic infrastructure declines, that means that there are less jobs available for all of us.

As I wrote about the other day, the employment situation in this country is not getting better and we have never even come close to recovering from the recession that started back in 2008.

During 2008 and 2009, the U.S. economy lost millions of jobs. Since the beginning of 2010, the percentage of the U.S. population that has had a job has remained very stable....

Normally, when a recession ends the percentage of Americans that have a job bounces back pretty dramatically.

So considering the fact that the employment situation has never recovered from the last financial crisis, what is going to happen when the next financial crisis hits?

And most of the jobs that have been "created" during this so-called "recovery" have been low income jobs. In fact, if you look closely at the employment numbers that were released last Friday, you will find that the vast majority of the "new jobs" were part-time jobs.

But you cannot pay a mortgage and support a family on a part-time job.

Sadly, the truth is that median household income in America has been steadily dropping over the past several years. Tens of millions of American families are deeply struggling and more Americans than ever are falling into poverty.

Back in the year 2000, about one out of every nine Americans was living in poverty. Today, about one out of every seven Americans is living in poverty.

All of this is causing a great deal of anxiety in America today. Large numbers of Americans know that something has fundamentally changed, even if they don't understand the specifics. That is one reason why sites such as this one have become so popular. People want some answers.

And once people get some answers about what is really happening, they tend to want to prepare for the hard times that are coming.

In a few days, a new series on National Geographic entitled "Doomsday Preppers" premieres. The mainstream media is starting to take notice of the growing "prepper" movement in America today. It is estimated that there are at least 2 million "preppers" in the United States at this point. Of course people are "prepping" for a whole host of reasons, but the number one concern among most groups of preppers is the economy.

As the economy crumbles, more Americans than ever have decided that it is not a good thing to be 100% dependent on the system.

Back in 2008 and 2009, millions of Americans suddenly lost their jobs. Because they did not have any finances stored up, large numbers of them also lost their homes. Many went from being solidly middle class to being out on the street in a matter of months.

That doesn't have to happen to you. Instead of blowing your money on frivolous things, do what you can to set something aside for the difficult times that are on the horizon.

A lot of those "in the know" are quietly making their own preparations. For example, legendary film director James Cameron (Avatar, Titanic and Terminator) has purchased more than 2600 acres of farmland in New Zealand and he is getting out of the U.S. for good apparently.

Unfortunately, most of us do not have the resources for something like that. But what most of us can do is we can change our priorities and start focusing on the things that will help us survive the hard times that are coming.

So are you ready?

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The Revolution of 1913

Guest Post by Bill Bonner

Readers will scarcely have given any thought to the fact that they have never lived in the system of government argued for by Madison, Jay, and Hamilton in the Federalist Papers.

“It may come as a shock …” wrote John Flynn, “to be told that[you] have never experienced that kind of society which [our] ancestors knew as the American Republic …” Flynn, the editor of the popular weekly the Saturday Evening Post, had already come to this conclusion in 1955. In his book The Decline of the American Republic, Flynn observed that Americans needlessly “live in the war-torn, debt-ridden, tax-harried wreckage of a once imposing edif ice of the free society which arose out of the American Revolution on the foundation of the U.S. Constitution.”

An empire needs a source of income sufficient to fund its military campaigns, regulatory regimes, and domestic schemes. It also needs a strong central authority to direct its ambitious new programs. In one short 12-month span, a year the writer Frank Chodorov calls the “Revolution of 1913,” the empire got the tools it needed. That year—the same year European countries abandoned the gold standard in preparation for World


War I—the old Republic ceased to exist.

WHERE THE MONEY COMES FROM

America’s current system of income tax is a twentieth-century invention. Previous attempts at creating a national tax had failed or had been thrown out because they violated tenets of the Constitution deemed essential by the founders. In its f irst 100 years, the United States supported its federal government with a series of what we would call “sin taxes” today, on

whiskey, tobacco, and sugar. By 1817, all internal taxes were abolished by Congress, leaving only tariffs on imported goods as a means for supporting the government.

The first income tax that citizens of the young Republic were forced to endure came about because Congress had been asked to fund the War between the States. In 1862, a tax on incomes between $600 and $10,000 was assessed at the rate of 3 percent, and the Internal Revenue Service (IRS) was created. The war was costing $1.75 million per day.2 The government sold off land, borrowed heavily, enacted various fees, and increased excise taxes, but it simply wasn’t enough. The income tax seemed like the only way to finance the war and service the country’s then-staggering $505 million debt. That tax was promoted as a temporary wartime measure. Temporary it was. In 1872, after servicing the Reconstruction, Congress yanked the “temporary” tax.

But that was not the end of it. The income tax appealed to empire builders because it alone offered enough cash to finance the enterprise. But it had another appeal—to the larceny and envy in the hearts of ordinary citizens. Following a banking panic in 1893, Senator William Peffer of Kansas, supported the progressive income tax in this way:

Wealth is accumulated in New York, and not because those men are more industrious than we are, not because they are wiser and better, but because they trade, because they buy and sell, because they deal in usury, because they reap in what they have never earned, because they take in and live off what other men earn… . The West and the South have made you people rich.

That sentiment was puffed up by Nebraska’s bellicose worldimprover William Jennings Bryan, who argued against the “equal taxation” requirement in the Constitution, in favor of the current progressive one:

If New York and Massachusetts pay more tax under this law than other states, it will be because they have more taxable incomes within their borders. And why should not those sections pay most which enjoy most?

This logic is simple. People who are more productive should be forced to pay a bigger share of their common expenses. But this kind of logic had no place in a free republic where all men were supposedly created equal; if they were equal they could each carry their own share of

the burden of central government. Under this new regime, men were no longer equal, but given differing loads to carry based on the whims of elected hacks.

With considerable foresight, one member of the House of Representatives predicted:

The imposition of the [income] tax will corrupt the people. It will bring in its train the spy and the informer. It will necessitate a swarm of off icials with inquisitorial powers. It will be a step toward centralization.

… It breaks another canon of taxation in that it is expensive in its collection and cannot be fairly imposed … and, finally, it is contrary to the traditions and principles of republican government.

When the tax was again introduced in 1894, a challenge went to the U.S. Supreme Court. In 1895, even among the cacophony of appeals in Congress to “soak the rich,” the Supreme Court declared the bill unconstitutional in a 5-to-4 ruling. In writing the majority opinion, Justice

Stephen J. Field quoted another case to support his conclusion:

As stated by counsel: “There is no such thing in the theory of our national government as unlimited power of taxation in congress. There are limitations, as he justly observes, of its powers arising out of the essential nature of all free governments; there are reservations of individual rights, without which society could not exist, and which are respected by every government. The right of taxation is subject to these limitations.”

But when the winds of empire blew, the old yellowed paper of the U.S. Constitution went f lying. Following The Panic of 1907, President Theodore Roosevelt sided with a faction in the Democratic Party that wanted to amend the Constitution to allow a national income tax. In

1909, President Taft stated that he had “become convinced that a great majority of the people of this country are in favor of vesting the National Government with power to levy an income tax.”

Of course, politicians are always able and willing to argue that “the people” want a government to have more power. If the voters see a free lunch in the deal, they’re for it. By 1913, just in time for Wilson’s emergence on the world stage, the Sixteenth Amendment had been ratified by enough states to put the income tax into law. The Amendment states:

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration.

It wasn’t long before Congress exercised its new powers. Wilson even convened a special session of Congress to rush through the f irst tax law under the Sixteenth Amendment, in which earnings above $3,000 were subject to a 1 percent tax, gradually moving up to 7 percent on higher income levels.

With its rather modest rates, the original income tax was viewed as a benign inconvenience. As early as 1916, however, the top rate was more than doubled from 7 percent up to 15 percent. Then as cash was needed to send Pershing to France, the rate was hiked to a staggering 67 percent in 1917 and 77 percent by 1918. Even the low rates were raised. From their microscopic origin of only 1 percent, the rate settled into a “modest” 23 percent by the end of World War II. But by that time, the people of the old republic had grown to accept an income tax as a necessary evil. Now that the nation was an empire, it needed the money.

In our present era, the complexity of the Internal Revenue Code (IRC) has created an army of specialized lawyers and accountants. Even attempts at reform are out of control. A “technical corrections” bill exceeds 900 pages of adjustments. In fact, by the beginning of the twentyfirst century, the tax codes exceeded 7 million words, about nine times longer than the Bible; and the IRS was sending out about 8 billion pages of forms and instructions every year—at the cost of about 300,000 trees! All this effort translates to about 5.4 billion hours spent every year by Americans just complying with the tax rules.

From 1913 to 2005, the income tax has enabled, entitled, empowered, and engorged the federal government, states, and local governments, private enterprises, and millions of private citizens. Spending has grown by more than 13,592 percent.

The income tax gives the federal government a blank check to spend money, even money it does not yet have. The federal government lays a claim on all future economic activity of its citizens; its massive debts are a lien on the earnings of people who have not yet even drawn their first breaths. What’s more, the income tax could be used as both an economic tool and as a political weapon. Tax rates could be manipulated, for example, to punish or reward favored political groups.

When the Constitution was ratified in 1789, the colonists in the New World believed they had won for themselves a measure of freedom and independence. “A republic, if you can keep it,” Benjamin Franklin warned.

But by the end of 1913, a scant 124 years later, Americans were happy to lose their republic; an empire was what they wanted.

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