1776 Nation Website
In a recent micro-documentary Chris Duane of The Greatest Truth Never Told and Don’t Tread On Me discusses the coming collapse of our debt-based monetary system and provides a simple, yet succinct argument for why it cannot be prevented.
There’s $8 Trillion in global sovereign debt that needs to be rolled over in 2012. This does not include state, local, corporate or personal debt. There’s simply not enough cash in the world to buy all this debt.
What is worse – who would? Who in their right mind would loan cash today for ten years for a guaranteed return of 1.85%. We know inflation is at least running at 10% in the real world, and you’re taxed on the gains you make before inflation, making bonds a very bad choice for anybody.
But, this debt must be funded or our entire way of life ends. What most people do not know is that our money is debt. Every dollar that comes into existence has a dollar of debt and interest attached to it. The only way to pay back this debt and interest in this debt-based monetary system is that we need to create more debt every year in excess of the debt and interest accrued the year before, or we suffer the mother of all margin calls.
When that mother of all margin calls does finally happen – and it will because it is a mathematical inevitability - the paradigm shift that will follow promises to fundamentally alter our entire way of life. We’re not just talking about losing jobs, we’re talking about all of those worst case scenarios you’ve imagined about hyperinflation, no gas, no food, no government safety net, no emergency services and a complete breakdown in the rule of law.
These consequences of collapse are well known and have been documented throughout history, and they always end badly for the general population.
The following video, entitled Confiscation and Inflation, takes an excerpt from the 1981 movieRollover and highlights what we’ve known for decades about how the eventual meltdown of the US dollar and US debt based monetary instruments will come to pass, and the events that will follow.
It’s a fictional account filmed on the heels of the 1970′s oil crisis and recession, and some of the players may have changed, but it’s as timely today as it was in 1981.
When the Arabs learn of word of what they’ve been doing is out they may panic… move a big chunk of funds too fast or the wrong way…really destabilize the monetary markets.
Then the dollar will collapse.
Whereupon there will be a lot of jaw boning by the President, and that won’t work. Then they’ll go to selling gold, and that won’t work either. Then they’ll have to go to capital controls, freeze foreign assets, stop any money from going in or out, and that will be the end of all the markets. That’ll really be the finish.
Then you’ll see a worldwide depression that’ll make the 1930′s look like a kindergarten. In two months you’ll have bread lines in Detroit, riots in Pittsburgh. In six months you’ll see grass right over Rodeo Drive, and Michigan Avenue and 5th Avenue.
This whole thing with the Arabs and gold is inevitable. We’re just going with the tide. The only question is whether you want to let it go like an unguided missile and raise hell, or whether you want to keep it in the hands of responsible people… Believe me, the system will be fine…provided nobody panics.
Whether it’s an increase in the velocity of money that drives hyperinflation, a peak oil resource crisis, failed government central planning, an economic and market meltdown, a global conflict, the world refusing to buy US debt, an unforeseen Black Swan or a combination of all of them that is the catalyst for what’s to come, one thing is certain: “IT” is coming.
And when it does you can fully expect 99% of the population, from government officials and institutional investors down to the average Joe on the street, to panic. Chaos will reign supreme.