Anyway, I decided to start posting again because everyone has been emailing with questions and discussion points and it is too hard to have a conversation over email. So, mostly I hear from US citizens who are deeply concerned about their personal situation as America continues to have debt, currency and related economic problems.
Here is why you should not worry:
(1) All fiat currencies return to their original value-- zero. So will the US dollar. The US has had several currency collapses in its short history. In fact the Federal Reserve Note (the dollar) is not even 100 years old yet. Currencies have collapsed around the world in many countries throughout time. My point is, currency collapse is manageable if it is carefully engineered. What you are really seeing is the careful, thoughtful management of a collapse. If it is handled correctly, the currency will be replaced with something else.
PROOF: The value of Iceland's currency in 2009 was zero. However, Icelander's continued to buy and sell to each other using Icelandic currency. Why? Because a Kroner was still worth a Kroner to Iceland... it is just that no other country wanted them.
(2) When the US dollar is worth zero we will still buy goods and services from each other in the US using dollars. But what if no one else in the world will accept dollars? We can't import anything because no one will accept our money!!! Really? Think about this...
(2A) If we can't import anything does that mean we can't export anything? If so, how will the world feed itself since one of the largest US exports is food. To a hungry world food is more important than money. So don't worry about the dollar because we export food.
(2B) If we can't import anything does that mean we can't buy the 20million barrels of oil we consume every day? We don't have to. The US is energy self sufficient and natural gas, coal and petroleum reserves within the continental US and Alaska will last 300 years. So don't worry about the dollar.
(2C) There is always pain in transition so yes, cities will burn, people will be killed, periods of martial law may be required and aspects of the US constitution will be suspended. These are all temporary. The US military will come home to patrol the streets, order will be restored and we will rebuild. The feeling of unity and togetherness normally experienced during a common disaster will fill our hearts and we will be Americans again.
(3) But what about the massive US debt burden? Who cares. We were never going to pay it off anyway. We took exports from other countries and gave them little green pieces of paper in return. You tell me who was smarter. And what can they do? Bomb us? I don't think so.
(4) When will all this happen? Most likely very far out into the future. Too many people in powerful positions (government and non-government) have a vested interest in the status quo. The currency crisis and, its impact on the economy and wealth, started more than 30 years ago. Our darkest hours were between 1978 and 1982 but no body knew it because of the lack of mass communication and poor education levels to understand the message and its implications.
SOME HISTORY: In the early 1980's, people vested in the status quo managed the collapse. US unemployment was higher then. US interest rates were horrible. And the public was faced everyday with the prospects of mutually assured destruction from the USSR. But somehow we survived and somehow, some of us, improved ourselves and our situation. US banks were overexposed to South American currency collapse and hyperinflation. We were so close to the edge of Armageddon. But we didn't know it, so it didn't bother us.
REALITY: Today we are more aware. 24 hour news coverage for what is less then 15 minutes of news. We are victims of "speculative factualization". So you worry more. You are also older and you feel more vulnerable.
"When there is blood in the streets be a buyer even if that blood is your own".... Rothschild circa 18th century.
"Gamblers understand what Winners don't know". Ann Wilson circa 1980's
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