GET YOUR DOLLARS OUT, BEFORE THE TIME BOMB EXPLODES!
October 22, 2012
A time bomb is an explosive which will go off in the future, usually being set to go off with a clock or timing device. The time bomb I am writing about is one whose detonation is in the future, with its destructive explosion time not seen yet, but its eventual happening is quite certain. This time bomb will go off and destroy all in its path, and it will not be pleasant. The bomb is a collapse of an economic system and the chaos it will bring to those who didn't prepare.
Many of us have generators to protect us against power failures. Many of us have a supply of water stored away in case of a break down in a city's water supply system, and many of us have food stored away for a possible future interruption in the food chain and distribution system. Water, food, and electricity are things we all take for granted, and assume they will always be there. Will they? No, because without an economic collapse, there are hurricanes, earthquakes, tornados, blizzards, and all sorts of happenings which interrupt these things on a daily basis in some parts of America, and certainly in the world. Those of us who have prepared, are always glad we did so, and are the envy of those who didn't.
Why should there be or will there be an economic collapse? Because just like a person who runs up credit card bills and other debts, and can't pay them, a personal economic collapse is certain, this is known as bankruptcy. Personal bankruptcies are at all time highs, due to the recession, job losses, real estate losses, and just plain stupidity. Personal bankruptcies do not destroy the food, water, and electricity supplies though, other than at individual levels.
Corporate bankruptcies happen because of a loss of markets, overseas competition, foolish decisions by corporate boards and CEO's. Corporate bankruptcies destroy the investor's stock values and cause large unemployment. These have a larger interruption of food, water, and electricity, and for many more individuals, but an entire nation.
Place it on a national level then, and see what is happening, with the ultimate result just as certain to occur, as a personal or corporate bankruptcy is, to an individual or corporation who finds itself in a bad situation due to stupidity or other causes. What could possibly cause a nation to collapse economically? Just look at Greece. Greece, for decades failed to collect taxes, and spent itself into bankruptcy with huge government benefits, union protectionism, and waste, spelled with a capital "W." In Spain today, there is a 25% unemployment rate, and Portugal and Italy are in deep economic trouble. "We're headed for Greece," as John Stossel recently pointed out on his show which can be seen on the Fox Business Channel.
Think about it! America has current national debt of over $16 trillion dollars, and it is growing like bacteria. Politicians will not control their 'earmarks,' will not stop spending, refuse to reform entitlements, and the presses continue to roll. Committed future payments for Social Security, Medicare, and others, run the committed debts up to $175 trillion, an amount just as impossible to pay, as is the current $15 trillion. America takes in a $1 billion, and spends $2 billion, just as regularly as clockwork.
When the facts all come home to roost, and an economic and dollar collapse is at the door, politicians may either cut spending radically, which will cement the final destruction of major cities due to rioting by those denied welfare. When they officially devalue the dollar personal savings will be destroyed for the entire population. No matter how large or small the savings may be mass rioting will result. Those who bought Greek bonds, thanks usually to a 'licensed financial advisor,' have lost their money or at least most of it. When the stock market collapsed a few years ago and went from 14,000 to 7,000, it is estimated that $7 trillion was lost. There have been lots of financial upheavals and depressions. The depression of 1893 was as serious as any, it is said, but there was no Federal Reserve then, so the paper money presses couldn't destroy the value of the dollar and it worked its way out with minimal problems.
Today and as far into the future as I can see, the Federal Reserve will continue to pour out dollars, politicos in both parties will continue spending, the government will continue to sell its ever increasing debt. If, as seems to be happening now, no one wants to buy our debt, it will buy it itself, which compounds the inflation. The more of anything there is, the less it will be worth and this certainly applies to dollars. The paper money devaluation syndrome has been happening ever since the invention of paper and printing presses, and the result has always been an economic collapse, due to paper money going to zero. It happened after the American Revolution, when the Continental dollar went to zero due to massive printing of it. The North's Greenbacks and the South's Confederates went to zero, after being printed en masse. It has happened all over the world at one time or another, and those who saved in those currencies lost all of their savings. Those who had tangibles, such as free and clear real estate, cars, furniture, refrigerators, clothes, gold, silver, machinery, and all tangibles, saw their tangibles "go up" in decreasing value currency prices, even though the tangibles remained exactly the same.
When will the ultimate happen? I have no idea, but unless those in charge can figure out how to pay for America's debts without printing its way out of them, thereby destroying the nation, it will happen. The pickle we are now in took 80 years to make and it cannot be undone. I doubt they want to fix it, many are getting mega-richer! The fact remains that gold and silver have been real money for thousands of years, and are tangibles which are easily bought, sold, and stored, besides being the ultimate in beauty. Enough said?
Protect your family before it's too late. The time bomb clock is ticking!
Spot prices accurate as of
Fri Dec 4 16:10:57 PST