As we race toward the end of the year, we all need to be asking each other if we have done everything that we can do to prepare for the impending collapse of the Federal Reserve Note, that we call the dollar?
Why would I ask such a ridiculous question? Simple, our economy is on the brink with our $18 trillion dollar deficit, our $240 trillion dollar unfunded liabilities (e.g. Social Security, Medicare), our negative national savings rate, the planned bail-ins of your savings accounts and of course, the mother of all debts, the estimated one quadrillion dollar credit swap derivative debt. With the full implementation of the free trade agreements, America has virtually no other source of revenue (e.g. tariffs) than the $2 trillion dollars of annual tax collection. The United States could spend every dollar, dime and nickel on these debts and not pay them off by the 50th century! An economic collapse is inevitable and it will come like a thief in the night. You will have virtually no warning from the MSM.
The collapse will be more massive than the 1929 crash! There will be no breadlines, no government welfare, no handouts, your pensions will be cut off as will your social security. You may or may not have a job to go to, but even if you do, who will cash your check? After the coming crash, our society will be reduced to trading and bartering on one hand and thievery, murder and cannibalism on the other.
A Changing of the Financial Guard
The nations presently running from our petrodollar are India, China, Iran, Japan, South Africa and Australia have signed their own trade agreements and their currency of choice is no longer the dollar!
We are all familiar with the concept of inflation, which is the intentional byproduct of the Federal Reserve. But I am not just talking inflation, I’m speaking about hyperinflation which is caused by the collapse of the value of the currency resulting in runaway prices. Here are three examples of how quickly a currency collapse can occur when a nation’s money no longer holds it value:
- In Weimar Germany, from 1922 – 1923, prices doubled every three days.
- In the modern era, in Yugoslavia from 1992-94, witnessed prices doubling every 34 hours.
- In Zimbabwe, in the two year period from 2007 – 2008, prices doubled every 25 hours.
History is replete with examples of currency collapses and they typically follow very predictable patterns in which a nation unravels and social chaos, and many times, widespread violence and even genocide becomes part of the national landscape.
What Does a Currency Collapse Look Like?
It can accurately be stated that a lot has been written and rehearsed by the federal government on the topic of the effects of a currency collapse and its subsequent impact on society. NORTHCOM, DHS and FEMA as well as other federal entities have practiced for this eventuality. In each and every scenario, the facts remain the same, human beings and society follows a very predictable pattern of decline when the currency of the day collapses.
When George Soros pulled his money from the S&P 500 and from Bank of America, Citibank and JP Morgan, all Americans should have sat up and taken notice. Generally, when the currency collapses, a stock market crash is right on its heels. Because of the repeal of Glass-Steagall, a banking meltdown will immediately occur following the collapse of the stock market because since Clinton’s presidency, banks are now allowed to loan money for investment in the stock market and for down payments for homes. It was irresponsible of Congress to repeal Glass-Steagall, because it made surviving an economic Armageddon a near impossibility just as it did during the 1929 crash.
In a currency collapse, your life savings will be wiped out and this is why on November 16th, the G20 declared that your bank account is not money. This put your account in last place in terms of FDIC compensation, and since the FDIC only has about 1% of the money needed to cover a complete collapse, you will never see a dime from the FDIC.
Hurricanes Katrina and Sandy demonstrated that gas stations will be bone dry within two days following a complete collapse. Subsequently, commerce will not move and this includes food. If you are on vacation, you may not make it home. On the second day following a currency collapse, being on the road will be a risky endeavor because of other desperate motorists who will lie in wait to rob other motorists of essential supplies and resources.
With no available fuel, the grocery and drug stores will be empty within one to two days. There will be no food to be had except for that which is decaying in your refrigerator and that in which you can beg, borrow and steal from your neighbors who will also be begging, borrowing and stealing from your other neighbors. If you have an adequate food and water supply, you better have an adequate gun and ammo supply in order to defend your assets. And when will you sleep? The protection of your critical assets is a 24/7 proposition. Therefore, having a cooperative survival plan is critical. EVEN IF YOU ARE AWARE OF WHAT IS COMING, IF YOUR NEIGHBORS ARE STILL ASLEEP, YOU ARE ON YOUR OWN!
Without gas, people will stop going to work. Corporations will disappear overnight. Hurricane Katrina showed America that the police cannot be expected to stay on the job more than 48-72 hours as they will be home protecting their families and foraging for food and water like everyone else. The emergence of former police, now operating as gangs, will become common in an effort to secure the products which will ensure survival. Therefore, when your home is under attack, there will nobody to call. Everyone will be on their own.
The elderly and the chronically ill will be the first to die. Too old to defend their assets, the elderly will find themselves overpowered as they will make easy preys of opportunity for the roving gangs. The chronically ill will have no way to procure their medication and even if they survive the looting rampage which will follow a currency collapse, these poor souls will perish without access to their life-sustaining prescriptions.
The money in your wallet will be useless. Cell phones will not work. Heating and air conditioning will not work either and depending on the time of year, the environment could prove deadly to untold numbers of people.
Water treatment plants will stop operating for the same reasons that you will not be able to find a cop during this crisis nobody will be manning the water treatment plants. Toilets will back up and diseases will spread like wildfire. Cholera will become the leading cause of death even surpassing homicide. Something as simple as toilet paper will become a prized commodity. There will be no trash pickup and more disease will result due to the increased rodent population.
Clean drinking water and hunger will become the dominant motivator in society. Roving bands of looters, turned murderers, will sweep through neighborhoods seeking to obtain these critical elements of survival.
Infanticide and euthanasia of the weak will become common events because there will be decided efforts to reduce the amount of mouths to feed. There will be the stark realization of the ensuing sense of hopelessness which will lead to a dramatic spike in murder-suicides within families.
Humanity’s Darkest Hour
There will come a time when all the available animals will be devoured and then there will be only one place to turn to for food. History shows that cannibalism will set in by the beginning of the third week. Extreme hunger will lead to humans hunting humans as an available food supply. There is a real possibility that this could begin to occur within 15-20 days following the currency collapse.
Historical Examples of Cannibalism In a Failed Economy
Unfortunately, history is replete with examples of cannibalism within a failed economy. Here are three examples:
1. In the winter of 1609, supplies did not reach the original North American settlement known as Jamestown, which was founded in 1607. During that fateful winter, the colonists experienced a massive famine that became known as “The Starving Time”. Hundreds of colonists experienced a horrible death and only 60 people of the original 500 remained alive into 1610. The scientific evidence gathered from Jamestown indicated that some turned to cannibalism.
2. In June of 1941, Nazi Germany attacked the Soviet Union and started Operation Barbarossa in which Hitler double-crossed Stalin and suddenly attacked major cities and the subsequent siege to Leningrad lasted for 872 days. The Germans enacted a policy of starvation and attempted to cut off all supplies to the city, forcing them to live with no utilities, water, energy, or food supplies, and the siege has been called the largest destruction of life to any city in modern history. It has been estimated that around 1.5 million people died as a direct result of the siege. However, of the original 3 to 3.5 million people who lived in Leningrad, only 700,000 survived the war. What is wrong with this math? Where did so many people disappear to?
The comparison of the collapse of the dollar is apparent because in Leningrad, the value of money was negligible and criminal gangs were organized to steal food. People tried to eat a wide variety of products, including paste, leather, fur, lipstick, spices, and even medicine, but the famine worsened as the Nazi siege went on. Eventually, the rules of society fell apart and reports of cannibalism spread.
During the Nazi siege, the problem with cannibalism was so bad, the police were forced to organize a special unit that was used to combat the predators. Despite living in fear of potential bombardment, families were forced to endure the threat of being stalked as prey and having their flesh eaten. Leningrad was a modern city in the 20th century.
3. The Irish Potato Famine, because of a horrific combination of environmental conditions and policies of the British government towards the Irish people, led to massive famines resulting in what some historians label the famine, as genocide. Despite the fact that approximately one million people starved to death and one million emigrated from Ireland during the Great Hunger, the British government failed to help.
During the famine, a large majority of people in Ireland became malnourished, infections spread, and people became perilously ill. Professor Cormac O’Grada of the University College Dublin found that cannibalism was practiced as a result of the Irish famine. Extreme hunger caused people to eat family members. As in Leningrad, Irish currency became worthless. The only currency of value what what one could get their hands on to eat.
I have no doubt that many will be repulsed by what they read here and the cognitive dissonance national anthem of “It cannot happen here” will become a popular theme. This theme will temporarily protect us from the reality of what can happen in the midst of a currency collapse, however, cognitive dissonance will not protect us from the lessons of history. Unfortunately, the three famines presented here, are only a smattering of historical examples which all point to the same predictable set of behaviors under the dire conditions described in this article.
What is particularly disturbing about the Irish Potato Famine is that the major lesson imparted by history is how food vulnerability can hasten the complete disintegration of civilized society. When the famine hit, the Irish people had no margin for error because of their extreme food vulnerability. The reason that the Irish famine, in particular, is so disturbing is because the Irish food vulnerability parallels what we find, today, in the United States. And this is the topic of the next part in this series on food vulnerability inside of the United States and it is a lot worse than most of us know.
Even if 90% of these possibilities never materialize, there are enough bona fide challenges which will serve to threaten the lives of you and your family. Again, are you prepared?
Dave Hodges is the Editor and Host of The Common Sense Show.