Dollar Death in May?

Quick snippet of brain food and a prediction from George Ure over at Urban Survival:

The Plan: We Buy Our Own Debt?
Ben BernankeBen Bernanke’s recent comments that the Fed will Deploy all tools‘ to push along the economic revival plan may, or may not, be read as a ‘good’ thing.  Legendary commodities trader Jim Rogers tells Bloomberg that among the ‘all the tools’ might be the Fed buying Treasury securities which, he figures, will delay the inevitable.

Snake Eats Its Own Tail, Or…
All of which might work for a while, just like the shoemaker buying the all the bread the baker can bake, while the baker buys all the shoemaker’s shoes.  The problems arise when, at the end of such a circular reference, the shoemaker or baker wants to sell product to a third party having bid up prices amongst one another.

It’s then that the truth slips out, that the circularly referenced deal was a sham, and prices of shoes and bread collapse in a heap.  Or, if we go down that slippery slow of buying our own debt from ourselves, how that will be viewed by the only folks that are keeping the world together right now: China.

Beware May 2009
dollar-drowns70x112The moment the Chinese wake up and proclaim:  We want something of real value, not just more paper, then the U.S.A. has a serious problem on its hands. 

That’s when our currency collapses, China becomes the world economic superpower and we drop to nth place as a third world country.  But not to worry; the linguistics on this indicate it won’t get underway until [mid] May of this year and the workout will run from late summer out through 2010 and beyond.

Related:
George is not the only one predicting a dollar collapse in May. Consider the Think Tank’s 2009 Predictions.

Advertisements

So What Happens When We All Are Broke?

creature-from-jekyll-island70x107Ponder this reader’s letter from G. Edward Griffin’s web site. (He’s one of my heroes and author of an expose on the Federal Reserve.)

Who is going to bail out the US when we citizens no longer have the money to pay?

If the goal is to reduce the citizens of the US to poor “peasants” like other 3rd World countries, then the time is coming when we peasants won’t have the money to pay the interest OR the principal on loans. Does not the whole fraudulant system then collapse? Where then is their power?

Won’t those in power eventually be shooting themselves in the foot?
Mrs. Cook, 2009 Feb 28

Hello Mrs. Cook.
G Edward GriffinThis concept deserves thoughtful analysis covering many aspects of the drama but, in my view, it all boils down to this: The elitists do not expect the common man to pay for this current debt in terms of money.

In the face of crisis, people now are exchanging their personal freedom for security, or at least promises of security. At the end of that process, money as we have known it disappears and becomes merely digital impulses in accounts assigned to each person. Those digits will be used to acquire the necessities of life.

The quantity people receive will depend on their service to the state and their willingness to cooperate.

Those who obey will be told where to live and what work to do.

Those who dissent will be cut off and will starve or beg.

The elitists’ power will lie in total control over the economic lives of their subjects. Common people will support the government, not with taxes, but with human effort. They will be slaves to the system.

Money is not a significant factor under slavery. Masters do not collect money from their slaves. Instead, they possess the output of their labor.
Ed Griffin