Topic: Lord Monckton: the USA is toast

[Glock32]

Can't find much to argue with. Given the unassailable figures Monckton recites, one can only marvel at the malignant lunacy of people like Krugman who believe they've somehow discovered a magic loophole in economic reality by triumphantly announcing that widely believed point of no return in debt-to-GDP is the result of a math error. Ok so maybe it's 126% rather than 120% then? No, Krugman et al seem to believe the whole concept of a limit is invalid.

We are indeed screwed.

Obama has done it. He has brought America down. It only took him just over four years. The Republicans could have stopped him. They didn’t.

How did the nihilistic left succeed in destroying America? Simple. They learned just a little of the capitalism they hate, and they drove your nation into outright bankruptcy.

And here is what the GOP has to say about it: just about nothing.

The once-mighty United States is now the most indebted nation on Earth. In round numbers, here are just some of the vital statistics as the patient dies:

National debt: $17 trillion, or $50,000 per man, woman and child, or $150,000 per taxpayer. Annual federal deficit: $1 trillion. Medicare/Medicaid/Obama”care”: $1 trillion a year. Social Security: another $1 trillion a year. Defense: two-thirds of a trillion. Unemployment handouts: $2 billion per working day. Debt interest: $1 billion per working day. Federal pensions, ditto.

Now for the big numbers. Your government’s Social Security liability is as big as the national debt: $17 trillion. Its prescription drug liability is $22 trillion. Then there’s the Medicare liability of $86 trillion. Total unfunded liabilities of the U.S. government are $125 trillion.

Net assets for each U.S. citizen are $300,000. The net liability of the U.S. government, shared among its citizens, amounts to almost four times that: $1.1 million a head. And the government’s debt is growing at $1 million every 45 seconds. To cover its annual deficit, it is printing $1 trillion a year of currency that is not backed by any asset whatsoever.

Here is what will happen next. When the crash comes, don’t say you weren’t given fair and clear warning.

First, the dollar will cease – no, make that “is already ceasing” – to be the world’s reserve currency. China, as I have been warning you she would, has realized the dollar is finished. So she is quietly making startling progress with bilateral and multilateral deals to replace the dollar with the yuan as the world’s currency of choice.

Sterling, once the world’s reserve currency, went precisely the same way in 1967 under orders from Moscow, which then largely controlled the governing Socialist Labor party in Britain.

After the Second World War, the Socialist/Communist governments of Attlee and Wilson bankrupted Britain with health-care and welfare programs and nationalization of industries. Inflation rose to 27 percent.

Obama’s copycat policies are different in only one respect. Moscow is no longer calling the shots. International totalitarianism no longer needs direction. Its cruel, hate-filled, destructive mission now advances on autopilot.

Watch some of the straws in the wind. China and Korea have come to a little-noticed agreement that international trade between them will no longer be denominated in U.S. dollars, but in yuan, or Won.

Behind the closed mahogany doors of the world’s finance houses, elaborate and secret preparations are being made for the upheaval and international financial collapse that will follow the deliberate printing-out and consequent implosion of the dollar.

Your GOP representatives should be, but are not, asking the administration to reveal to them the ever-tougher terms on which the Chinese continue – with ever-greater reluctance –to lend money to keep their communist ally in the White House afloat.

Do not believe China cannot afford to let her biggest creditor fail. She can, she will, and she is making careful preparations to do just that.

If you thought the crash of 2008 was bad, think again. The crash that is coming –I cannot put a date on it, but it is not far away now – will be orders of magnitude worse.

So, what should you do to protect yourself and your family? First, get rid of every dollar you have. Dollars are now all but worthless. When the crash comes, they will have no value at all.

In hard times, most financial instruments – currencies, stocks, bonds – are not worth the paper they are printed on. Get rid of them now. Buy silver coins. They will quintuple in price once the crash sets in, and they are small enough to be fungible when the dollar dies.

Buy land, some of it well-wooded, some of it arable, some of it grassland. You will need the timber to power your steam tractor. Gasoline will be a costly rarity. And make sure you can defend yourselves. Starving mobs are no respecters of persons. Do what the Mormons do: Get three months’ supply of imperishable foodstuffs and hide them in the basement.

Absurd though this advice may now seem, there is a real danger that the crash will sudden. If so – perhaps for several months, and even for years – the fabric of civilization, including the food-supply chain, will fail.

It is not my custom to write in millenarian or apocalyptic terms. But the very best that can be said for your current administration is that it simply has no idea what damage it is doing. It is printing money in the vain hope of buying itself time. Yet every fake dollar that comes off the printing-presses makes the problem worse and the solution harder.

At worst, what is now happening to your nation may be deliberate. In that event, your current “president” will go down as history’s greatest villain. In any event, he will go down as history’s greatest incompetent.

Do not believe none of this can happen. Psychiatrists study what they call “normalcy bias.” People expect that everything will carry on and that America is too big to fail. She is not. She has failed. You will pay a heavy price for her failure, unless you act now to defend yourselves against what your government, with the culpable, silent acquiescence of the GOP, is doing to destroy your nation.

Finally, pray. God bless America. It has been nice knowing you. Only when you are gone will the world realize how much it misses you, and – paradoxically – how much it owes you.

http://www.wnd.com/2013/05/the-dollar-and-the-usa-is-toast

[trapeze]

Yeah, a storm is coming. I hope that I am ready for it. Ammo? I'm in pretty good shape. Food and water? Could be better. Firewood? Maybe enough for next winter but I'm surrounded by it so I don't worry so much about that. Need a generator and a lot of fuel for it.

Hope that we have another year. I'll settle for six months, though. Should have at least a year's worth of food laid in by then. Don't think I will be able to get a solar hot water system up and running for at least another year. Solar electric? Even longer.

Very depressing on the one hand. Sort of curious as to how it will all sort itself out on the other hand.

I am absolutely convinced, though, that the storm is coming. That "unsustainable" word does mean something. Maybe we should have an office pool for when the dollar collapses. Winner gets to turn out the lights.

Side note: Discovered some packages of Mountain House food that were supposed to expire in '08. Having a Spaghetti and Meat Sauce for lunch. It's very good. Gives me good confidence in the freeze dried stuff I have stored away.

[trapeze]

Here's another related story:

The Bank of Japan has embarked on a deliberate act of economic warfare, aimed in part against China and the other nations of Asia. The attack is in the form of expansion of Japan’s money supply and the related decline in the value of the yen, this to boost Japan’s economy. The Japanese are desperate to boost economic activity, albeit by imitating the Fed’s own failed pro-inflation policies.

The BOJ creates new yen and then sells its currency and buys dollars. The Japanese are one of the biggest buyers of US agency securities, for example, effective duplicating the Fed’s own “quantitative easing” or QE to keep mortgage rates low. But what neither officials at the Fed or BOJ understand is that their actions are futile in terms of creating real jobs and growth, and dangerous regards inflation. Two percent inflation over two decades destroys the purchasing power of working people, but nobody at the Fed cares.

“The Bank of Japan is taking down the entire world,” worries lawyer and author James Rickards, but allows that the Japanese are only following the bad example of the Federal Open Market Committee. “Bernanke has advanced the idea that if we all hold hands and devalue together, it is OK as far as inflation is concerned.  If we all ease at the same time, then it is not a currency war.”

The Fed has already embraced an inflation target as a matter of explicit policy, some measure of how desperate the socialist majority on the governing body of the US central bank has become in recent months. Luminaries such as Chairman Bernanke and Governor Janet Yellen believe that by monetizing the debts of the US Treasury and depriving individual and corporate savers of a decent return on their money, they will restore nominal growth to the US economy. 

[warpmine]

" Luminaries such as Chairman Bernanke and Governor Janet Yellen believe that by monetizing the debts of the US Treasury and depriving individual and corporate savers of a decent return on their money, they will restore nominal growth to the US economy. "

Worked so well in Weimar Germany. Fortunately, I have a couple of good wheel barrels.

[Glock32]

" Luminaries such as Chairman Bernanke and Governor Janet Yellen believe that by monetizing the debts of the US Treasury and depriving individual and corporate savers of a decent return on their money, they will restore nominal growth to the US economy. "

Worked so well in Weimar Germany. Fortunately, I have a couple of good wheel barrels.

Plus the whole policy is just another form of pandering to the less responsible, immediate gratification spendthrifts of the population at the expense of the more diligent, delayed gratification savers of the population. The policy positively screws people who invest and save for their future (i.e. what responsible people do).

It's no different than what we see politically, where politicians mortgage the country's future in exchange for political payoff right now. I mean, that'll be some other generation's problem right? Who cares, right? Wash, rinse, repeat over several decades and you arrive at our present reality.

[Weisshaupt]

“The Bank of Japan is taking down the entire world,” worries lawyer and author James Rickards, but allows that the Japanese are only following the bad example of the Federal Open Market Committee. “Bernanke has advanced the idea that if we all hold hands and devalue together, it is OK as far as inflation is concerned.  If we all ease at the same time, then it is not a currency war.”

yes, that worked so well in Europe.  Because the economies in question are wildly different sizes, even if printing occurs at the same rate everywhere ( the Euro)  the smaller economies suffer more dramitc effects.
That is mostly likely what has motivated Japan to print even more..

[charlesoakwood]

Bernanke, as all our aristocracy do, places no value on the individual.
We and all the other nations are in debt up to their gills.  By devaluing
their currency they virtually are writing off their debt.  How this affects
the individual they care not.  Individuals are a dime a dozen, literally.

[Weisshaupt]

  Individuals are a dime a dozen, literally.

Actually I think the going rate is now $22.50 a dozen due to inflation.

[Libertas]

These Captains of Destruction think judgement day can be avoided, they are arrogant enough to think they are smarter than everyone else, part of this comes from inside knowledge that their minions control the levers and can manipulate markets and values to their dictate, part because in the short term they are getting away with it.  But too many are onto their scheme and realize that Judgement Day cannot be gamed away and are making the necessary preparations.  Some inside players know this, it is why access to guns and ammo are high on the statist list of activities to ban or curtain by other means, it is why the use the paper markets to manipulate PM values and give the appearance that the dollar is king and gold & silver bugs are lunatics.  Yes, the wise lunatics are stacking gold & silver when they beat it down, let the PTBs keep hammering, they are running out of ammo, the margin calls slam paper holders and create more physical holdings, when the string snaps back the values will go geometric and fiat will collapse overnight.  Yes, soon the Captains of Destruction will face hungry, angry masses...they can run, they can try to hide...they won't get very far.

[charlesoakwood]

It was a link from Newsbusters, no citation:
Buffett, Paulson, and Soros are dumping equities.

[trapeze]

I wonder when the UN will start to move in? You know...peacekeepers. That ought to be interesting. I wouldn't want a blue helmet on my head for anything.

[Glock32]

I wonder when the UN will start to move in? You know...peacekeepers. That ought to be interesting. I wouldn't want a blue helmet on my head for anything.

They would be advised to heed Admiral Yamamoto's warning.

[Pandora]

I wonder when the UN will start to move in? You know...peacekeepers. That ought to be interesting. I wouldn't want a blue helmet on my head for anything.

They would be advised to heed Admiral Yamamoto's warning.

Absolutely.  Should they dare.

[Weisshaupt]

Absolutely.  Should they dare.

I doubt it.. they tend to run at the first sign of trouble.  The problem is if they bring in Chinese or Russian troops ....
B

[trapeze]

I think you can count on them coming when the economy collapses. They will be sent at the order of those who hold our debt in an attempt to secure what they perceive to be their property. It's pretty much inevitable.

The stupid thing is, after we bottom out, you will see the same cretins trying to be our leaders all over again. I can just see the likes of Lindsay Graham trying to get idiots to rally around him.

Another thing that will be interesting is that the idiot anarchists...you know, the morons who break store windows in Seattle...will finally get to see what a world without rules is really like. Somehow I'm thinking that they won't care for it too much.

[warpmine]

Doubt it. When the economy collapses here it will cause the ripple effect all across the world. They all bitch at the Dollar being an unstable currency but it is the defacto world currency now and dumping it is just another admission, fiat paper has zero credibility. Back to the troops, nobody will be paying them so who's going to accept payment by some other fake currency all the while dodging bullets from 30 million guns.

No the real threat will be the end of days Biblical scenario of an evil one claiming to blow away your troubles. How many of the population will go along just to survive? Happy hunting folks, remember, shoot first, ask questions later.

[AlanS]

Absolutely.  Should they dare.

I doubt it.. they tend to run at the first sign of trouble.  The problem is if they bring in Chinese or Russian troops ....
B

The Chinese and Russians are smarter than that.

[Libertas]

Doubt it. When the economy collapses here it will cause the ripple effect all across the world. They all bitch at the Dollar being an unstable currency but it is the defacto world currency now and dumping it is just another admission, fiat paper has zero credibility. Back to the troops, nobody will be paying them so who's going to accept payment by some other fake currency all the while dodging bullets from 30 million guns.

No the real threat will be the end of days Biblical scenario of an evil one claiming to blow away your troubles. How many of the population will go along just to survive? Happy hunting folks, remember, shoot first, ask questions later.

I would qualify the payment angle of foreign adventurers in America - their payment will not be in fiat, fiat will be universally destroyed, nor will it be in PMs as that will be the foundation of any nations wealth, the payment will be the promise to reap whatever spoils you can gather...it will be the Viking raids 21st century version.  I hope they ignore or are ignorant of Yamamoto's warning.  Let them come.  Molôn Labé!

[AmericanPatriot]

The Chinese have all those single men due to their one child policy.
Offer them an american woman

[Dan]

A libiot, multi-culti, gaia worshipping, screaming to be ruled, dhimmi type of woman, to be sure.