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Concerning the economic collapse of the United States, how did we get here?
We are where we are today because career politicians have prostituted the founders’ clear intention to limit government in the name of “doing good.” For decades both parties have grown government well beyond the boundaries of the Constitution and created the very problem our founders sought to avoid – a deeply indebted government that is threatening the very survival of our republic.
Sen. Tom Coburn
The Debt Bomb
The above assessment may not account for 100% of our economic collapse: we have to include corruption and incompetence in Washington, DC to have a complete accountability of the causes. But here is the incredible part: not only were the people complacent (and therefore culpable) in the demise of the republic, we still argue that political parties are the solution. The small percentage of the people who understand our financial debt crisis are blinded by supporting only one solution: get Obama out of office.
Alright. I agree that this president has not only destroyed our economy and social structure, he has also destroyed the Democrat party. Good. If we destroy the Republic party, we have a chance to save the republic. Step one is to stop arguing for our ignorance. Again both parties have gotten us to this point and neither one will or can fix it. A rather bold statement so let’s explore it a little further.
The monetary policy of our country is controlled by an independent banking committee known as the Federal Reserve. Under their control, our dollar has been devalued and manipulated to the point of insolvency. Does the government understand this? Of course but they are impotent to control the situation, let alone fix it. The endgame is close upon us and the prognosis is terminal. How do I know? The government has taken control of your money market assets so that you do not control your private property. If people started to withdraw their cash, our banks would collapse immediately. Think about that statement because that is one of the keys. We no longer have control over our own money. Have you tried to withdraw a large sum from the bank recently?
Most of our banks and brokerage firms are also leveraged with European credit derivatives that are worthless. The recent examples of MF Global, PFG Best and the Sentinel Group proved that these institutions not only stole assets from their clients’ segregated accounts, the assets will not be recovered (unless you are Jamie Dimon).
Step two is to understand that the government is not only bankrupt, our financial institutions are bankrupt. This means accepting the fact that the US dollar will collapse. When will this happen? Whenever China revalues their currency on hard assets – mainly gold. At the rate of their gold hoarding, it will not be long before our dollar will no longer be the world’s reserve currency.
Step three is to understand that the price increases for gas and food are not going to moderate: they are going to “necessarily skyrocket”.
Step four is to understand that the value of the stock market is 50% higher than it should be due to the actions of the Federal Reserve. This means that your portfolio can be cut in half overnight when people understand these simple steps.
Step five is to stop relying on the government for a solution because they have no viable solutions. Fortunately, there is a growing number of people who do understand this (outside of the political class) and they have taken measures already to protect their assets. They have sold their equities and are cash or gold rich. Which is why the money markets will be frozen. Stop looking at the value of the stock market and look at the volume of trades: they are off over two thirds from four years ago.
If you truly understand how we got here, you now have to ask yourself where you are going? And I mean you, because personal responsibility is the only solution for your future. The government is not buying massive amounts of hollow point bullets to protect your assets.