Currency Meltdown Coming

By Greg Hunter’s USAWatchdog.com  (revised)

The situation in Japan is getting worse, not better. There are shortages in food, fuel and warm dry shelter. To make matters exponentially worse, nuclear power plants there continue to burn out of control and emit high levels of radiation. Japan is a stark reminder of how fast a modern technologically advanced society can be brought to its knees by an unforeseen calamity.

On the other side of the Pacific, the devastating pictures from that island nation are taking the attention away from our own, much more predictable, calamity coming from a tsunami of debt. As the U.S. and other world governments continue to print money to keep the banks and system solvent, a ball of debt is growing. It is on course to swamp the system. In his latest report, Martin Armstrong, former Chairman of Princeton Economics and an expert in the study of economic cycles, said events happening in places like Japan or the Middle East are not the main issue the world is facing.  Armstrong was just released from prison after an 11 year stay.  He pled  guilty to a conspiracy in 2000, but spent most of his time in jail for contempt of court.   Armstrong’s tale is a highly unusual criminal and civil case involving a very brilliant econimic scholar.  (Click here to read more on this story from Bloomberg.)  Armstrong has written many articles from prison.  His latest comments were the last from his incarceration.   Armstrong said, “This is coming at a time when governments are broke. We have state and local governments in a debt crisis and that meltdown is very real!!!!!!! Government is collapsing. That is the issue.” Armstrong says because of all the money created to bail out failing banks, gold is gaining in price. “This is not just inflation. We are on the verge of a currency meltdown this time,” said Armstrong. (Click here to read the latest report from Martin Armstrong.)

The latest analysis from economist John Williams of Shadowstats.com agrees with Armstrong. In a special report released yesterday, Williams warns a “great collapse nears.”  Williams said the collapse will take the form of “a hyperinflationary great depression. Such will encompass a complete collapse in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system as we know it. . .”  The hyperinflation will come from bank bailouts and ongoing Quantitative Easing (QE or money printing) used to keep the financial system from collapse. Calamities in places like Japan will likely accelerate QE. The Fed will have to make up for the loss of Japan as a buyer of our debt. Williams said,“. . . the economic and systemic-solvency crises appear to be worsening, not improving, suggesting more, not less, quantitative easing.”  This, in turn, will quicken the loss of buying power for the buck. So, we have a vicious cycle of QE coupled with declining tax revenue that is accelerating the “great collapse” scenario.

The big question is when? Williams says, “Outside timing on the hyperinflation remains 2014, but there is strong risk of the currency catastrophe beginning to unfold in the months ahead. It may be starting to unfold as we go to press. . .” Meaning, the process of hyperinflation may have already started. Recent inflation numbers and spiking gas prices talked about on this site and many others seem to confirm Williams’ analysis.

If the financial system and government are headed for a shutdown, what should the average person do? Here is what John Williams said, “With no viable or politically-practical way of balancing U.S. fiscal conditions and avoiding this financial economic Armageddon, the best that individuals can do at this point is to protect themselves, both as to meeting short-range survival needs as well as to preserving current wealth and assets over the longer term. Efforts there, respectively, would encompass building a store of key consumables, such as food and water, and moving assets into physical precious metals and outside of the U.S. dollar.”

There is no way of telling how this financial crisis will unfold, or what extremes will be reached. It can be anything from an ongoing deep recession to a complete “Mad Max” style breakdown. If Williams and Armstrong are only half right, then we will experience something in between. At the very least, tough times are coming and they are going to be with us for a while.

Comments
  1. droidX-G

    Greg glad I got to read this hot off lesson. A lot of components are made in Japan. That ie goign to.feed inflation

    • Greg

      Thank you Droid, Amman and Oldcoot.
      Greg

  2. Amman

    Congratulations to USAWatchDog! You put up Martin Armstrong!!!!!!!!

    Thank You, Greg.

  3. Oldcoot

    Inflation will kick off when the present durable goods inventories are consumed. The perishables don’t support much of an inventory with exception of canned goods. I would like to see a monthly cost of living index that has only food, water, and electricity as the variables. Each variable must include the final costs after taxes, which are often hidden, but none-the-less, paid by the consumer. I would not include fuels for travel and shipping due to it’s volatility and the ease to determine its inflation by watching the gas pump price. I would call this the cost TO live index. Since figure don’t lie, but liars can figure, the less the number of variables, the harder it is to fudge the numbers.

    • youngbuck

      That is the best idea I’ve heard in a long time.

  4. Sarkis

    Greg,

    Great post. I’d like to add that Martin Armstrong believes gold may hit it’s lows for the year by mid June then it’s off to a race going higher than $5,000 by 2015/16.

    Do you suspect Ben Bernanke may stop at QE2? He had to defend himself from his critics, back in December during the 60 minutes interview, about the disapproval of QE2. Why would he want to introduce QE3 when he knows the whole world may criticize him including leaders from around the world. Unless, he plans to let the market go through heavy corrections until investors beg him for QE3. Just my thought. That’s the only way I can think of Gold going lower all the way to mid June with more corrections to come.
    Would you see this scenario possible?

    Thanks for keeping us informed. I always learn something from you.

    • Greg

      Sarkis,
      I don’t think the QE stops. We will have to shift directly into QE3 of face total collapse. I hope I am wrong.
      Greg

  5. Jeff in Mo

    All very good points Greg.

    How much debt was Japan buying on the US? Somehow that will need to be replaced and printing is the only option left. I don’t see how we can escape rising interest rates much longer, and that will just add more debt.

    With hyperinflation on the horizon, I can see a collapse of the healthcare system. The costs will outpace inflation and that will be tremendous. Even wealthy people will not be able to afford the raw costs much less the insurance premium.

    • Greg

      Thank you Jeff.
      Greg

  6. M SMITH

    Thank you Greg,I am thrilled to see Martin’s work on your site! After folks finish How – When, please read “Tipping Point”, Martin tells on page 3,4&5 “How to Balance the Budget in Four easy Steps”. I only hope many will read his work, it’s beyond brilliant, it’s a gift to all of us. Again thank you,Greg.

    I have been following Martin’s writings for a long time. This is about “ECM” ECONOMIC CONFIDENCE MODEL & has a lot more to it than inflation. His web site is, http://www.armstrongeconomics.com/writings has a wealth of data. I have read each of his writings & he has to be the best at what he does. As a man that has been through pure hell, he has chosen to be a man looking out for others instead of hitting back at those that did him wrong. I only wish those in power would humble them self to save billions from a world of untold suffering & pain. There is so much data in his writings that supports his years of work!

    Greg, I hope your radio show has a wide impact upon the public that it goes vial across the nation, then the net & spread to the billions world wide. Could you ever dream that we might for once come together as one to solve a problem that could change billions of lives for the better instead of the PEs old age answer of world wide war as a way to prosperity?

    • Greg

      M Smith,
      Thank you for adding to this post with your comment and information!!
      Greg

  7. Hoppe

    How about a little more clarity on protecting investments, other than;”and moving assets into physical precious metals and outside of the U.S. dollar.”

    Most working people like me have most of our paper wealth and life savings tied up in employee sponsored plans, like a 401(k). So what can we do to protect those assets that must remain in those plans? Swiss currency, Gold ETF….?

    I have been reading about this doomsday scenario for a couple years now. It is sensational and interesting reading. but as my tax accountant pointed out last week, I have missed most of the stock market returns that put her back to even in her investments.

    Armstrongs report is inscrutable and typical of a chartists advice; Well if it goes here it will do this, BUT if it goes here it will do this ( the opposite), pretty worthless to me.

    Links to Williams pay per view site, makes me think of all those investment emails I used to get, linking me to sites that will tell me the secrets of BIG returns, if I will only give them my credit card number.

    I don’t dispute the possibility exists for anyones favorite scenario. but something does not ring true in all this,.

    If we are facing world wide hyper inflation, then the cost of a bushel of wheat will be offset by a barrel of oil, or a pallet of Heinz ketchup. Wouldn’t the worst result – for Americans be an modestly incremental reduction in purchasing power?

    I don’t see the “great depression’ correlation. As my father explained to me; “things were cheap but no one had money to buy them”.

    So which is it?

    • Greg

      Hoppe,
      I am sorry you do not see the value in this type of reporting. If you are quoting your father then you have never really seen bad times and therefore cannot imagine the systemic breakdown that is approaching. I guess I am not explaining it very well. We are on the precipices of change the world has never seen. The U.S. has $76 trillion in debt and unfunded liabilities. Do you you really think we can carry that debt load for ever? The only reason why we have gotten away with it is the U.S. controls the world’s reserve currency. This is in the process of changing right now. If you do not see the change that is coming, then go long dollars and keep all your money in the stock market. I do not give specific market timing calls but the depression scenario will be a little different than what your father described. Everything will be expensive and your Federal Reserve Notes will be worthless. I hope this helps. By the way, there is no real protection in your 401-k plan unless you cash out, and pay the tax and penalty, and move directly into physical PM’s. I know you won’t do that, but that is the truth.
      Greg

      • Hoppe

        Greg,
        I don’t know how much longer we can carry such a debt load. I am old enough to remember the debt warnings since the 70’s. But if ‘everybody’ has a similar load, then who has the power to call the debt- the few hidden bankers?

        I agree that the debt takes a bigger bite of our earnings. It has been since I started working in the late 60’s- in the form of higher taxes to pay the debt and higher real costs of goods. But farmers will still plant wheat, truckers will still climb in their rigs to deliver it… There is no other choice, except sit and starve.

        The more likely scenario,one that has been playing out for decades is the incremental increase in the prices of goods and corresponding decrease in buying power- along with higher taxes. A European economic scenario for America- if you will. I lived there and can see it clearly.

        As for your comment on the 401(K), I take it you don’t have one, or you would know, the only way to get that money is to quit working. The law prevents permanent withdrawls while still employed. More than the loss of the value of those “notes”, I place a higher value on the total loss of income from being suddenly unemployed.

        Sounds like the smart move here is to take a note from the bankers play book; borrow as much as you can of worthless money to buy hard assets (land) or shares of hard assets and then pay the money back with money that is even more worthless in the future. As the value of the land increases at a rate faster than the devaluation of the ‘notes’ your real wealth increases. The fed/gov ponzi.

        • Morgan Edwards

          You can hold physical precious metals in an IRA.
          You can move your 401K into this.
          The metals have to be held in trust at a storage facility.

          • Nancy

            This is why I don’t rely on the 401k completely for my retirement. Other than the tax benefits and the company matching – if your employor does this – it’s really not a great investment option because you are limited as far as where your investments go. I wouldn’t even bother with a 401k if my employer doesn’t match. Open a Roth IRA, and invest in foreign stocks or precious metals. Or even buy some physical silver and gold to store yourself. You never know what could happen.

    • Reader

      Armstrong is a man that is listened to by economists worldwide. The fact that he has a track record and US publications going back over 25 years anticipating the problems of the US economy today should be enough of a hint, even to the least of us. I would advise you to read his articles carefully which are always written with the best interests of the American people, American business and constitutional American government. Dismissing him as a ‘chartist’ is to my thinking a sick joke and not on him.

  8. czzi

    What value is gold and silver ? Every time I read these stories I have to laugh! So look I have a gold coin worth $5000 USD wooppiee, since that means the economy is dead, so what am I going to do with gold if the currency is dead? No one answers that , they like you and the article from Armstrong, always say see your gold will be worth so much of a currency that you cannot buy anything with, so what are we going to do go to Publix and buy food with a silver dime!?!?! Our economy is not going to die and if it does then the world goes with US! Fools, and BTW the guy Armstrong cannot even spell correctly , just look at the first sentence, “brodens” does he not broadens? Plus all he talked at the end was gold and silver. I for one know you are wrong in your anti American assumptions.

    • chow

      When the currency is dead so will Publix and other businesses. My guess is it’s going to be more of a barter system (Zimbabwe, argentina), trading with your neighbors for your needs. When the country starts to recover (regardless if there’s a civil war) the government will have to come up with a more stable monetary system, most likely they’ll go with the US constitution which is gold or silver standard. When that happens then you’ll realize the golden rule “He who has the gold makes the rule”.

    • Bob Copeland

      You buy PM with today’s dollar. Hold onto it. Then when today’s dollar is replaced with one backed by a basket of currencies including gold, you sell your PM for the new dollar. It’s the opposite of what FDR did to the people in ’33. Remember how he screwed them out of about 35% buy buying it at a set price and then setting a new higher price after they turned in their gold?

    • Chumbawamba

      Wow, the number of fools on this ship is exhausting.

      I’m sorry that all the Johnny-Come-Latelies here aren’t getting it. You would have had to be paying strict attention over the last few years to know the answers to your questions have all been answered already.

      Gold is money. Silver is money. “Dollars”, paper monetary instruments that are issued by the Federal Reserve, are not correctly “money” because they have no intrinsic value. They are merely representations of money or wealth. Dollars are a representation of gold, but never in the reverse. It is not the price of gold in dollars you should concern yourself with, it is the price of dollars in gold. Right now, a dollar is worth 1/1400th of a troy ounce of gold. Does that change your perspective?

      As for your comment that Greg’s “assumptions” are “anti-American”, all I can say is you are a dinosaur and are about to become extinct. Don’t worry, we’ll write about your kind in our history books.

      • James M

        Being a condecending know it all a****** certainly is not going to resolve anything. Let the people believe what they want and live with the consequences of their choices. Your not going to change anyones mind about anything if you if you treat them like a 5 year old, even if they are. Compassion and education of the truth without a superiority complex makes society flow. You never know what history book you might end up in and your certainly not going to be writing it.

      • markm

        Chumbawamba:

        Great post. Next time, don’t restrain yourself (ha-ha)!

        Thanks,
        markm

        • Kevin

          Chumbawamba, this not zero hedge. Take a chill pill. Kevin

          P. S. I love your comments on ZH.

      • Sean

        Great response. Thank you for saving me the trouble!

    • sam

      czzi,
      no, you will not spend your silver dimes at publix, there won’t be a publix. thats the point. your lack of education is because your head is shrouded in a disbelief that an economic collapse cannot happen in the US. What makes us so special that what has happened times over in history cannot happend to us? Once you remove your head from the sand, maybe you will be open to a little more diverse reading. oh, and you look very foolish when you cannot even gramatically point out that someone has mispelled a word. “just look at the first sentence, “brodens” does he not broadens?”

      does he not broadens? … classic. does my, does my silver stink? well, as least you’ll be able to burn your fiat currency to heat your home if the SHTF.
      sam

  9. czzi

    Also since you are a right wing website devoted to laying off, reducing pay, killing collective bargaining, giving the rich tax breaks and demanding sacrifices from the little guys and your support of paleo-conservative, republican governors that destroy teachers etc all for saving the state READ THIS and post it but you will not since it shows the HYPOCRISY of the PEOPLE YOU SUPPORT:

    Ain’t Shared Sacrifice Great?
    By Desperado on March 16, 2011 5:39 AM | 2 Comments
    The Republican governor of Maine, Paul LePage, is asking teachers and other state employees to increase their pension contributions as part of his shared solution to the state’s pension problem. But…

    “…the governor has exempted himself.

    While public employees and teachers face this increase, as well as a raise in the retirement age, a freeze on cost-of-living adjustments for current retirees and a 2 percent cap on future cost of living increases, LePage’s personal contribution rate to the retirement system will remain the same..

    Unlike teachers and state employees, however, the size of the governor’s pension doesn’t depend on how long he pays into the system. As soon as he leaves office, he’ll begin receiving a three-eighths of his salary, which works out to $26,600 annually.

    For comparison, a Maine teacher would have to work for more than 25 years to receive this level of benefits.

    Also, the increased contributions from teachers and public employees aren’t even going into the pension system.

    “Last week, LePage’s commissioner of the Department of Administrative and Financial Services, Sawin Millett, explained that the money raised from these payment increases on teachers and public employees isn’t targeted to shore up the state’s pension system, but will instead pay for other budget priorities, including $203 million in tax cuts.

    Maine’s wealthiest residents will benefit the most from these cuts. One percent of households, those earning more than $360,000, will see their income taxes go down by $2,700. The budget also would double the size of estates that are exempt from the estate tax from $1 million to $2 million, a provision that would benefit only about 550 Maine families and cost the rest of us $30 million.”

    Ain’t “shared sacrifice” great?

    Well there you have it BUT I have yet to see you publish anything about the unfair sacrifices being made, YEA go VOTE to give more money to the rich!

    • James M

      So you want to blame the govenor for ripping off the taxpayers but the teachers and other tax feeders are just A OK? Your an idiot.

    • Morgan Edwards

      Sir, you have no concept of this Country’s taxation system. The US Constitution prohibits direct taxation on a man’s labor. Have you ever heard Justice John Marshall’s statement “The power to tax is the power to destroy”? We saw the greatest progress in this Country when very few paid taxes. How do you think they build those buildings in DC? There was no income tax (at least not as it’s being enforced today) back then. Furthermore, you are complaining about PUBLIC SECTOR workers? THEY ARE PARASITES! THEY EXIST BECAUSE WE PAY OUR PROTECTION MONEY! Guess what – since private sector folks are 1)paid less on average than public sector and 2)private sector jobs and profits are diminishing – the public sector will have to change. THEIR HOST IS DYING. We are in death throws – you better stop fretting about what the filthy rich are doing and get your house in order. BTW, my gross income is below the threshold, so I’m in a low tax bracket – so don’t be worry about my income.

  10. czzi

    Here is a link to Maine! the guy also wants to roll back child labor laws, let’s go to 1777 America! Let’ see if you righties can justify such BS, but I am sure Mr Hunter you will. BTW i do like your website./

    • Dummy

      @czzi You are a hopeless tool whose mind is enslaved to the corporately bought and paid for 2 party system. While you point fingers at the republicans the real crooks continue to loot, steal, and kill in the name of “democracy” all to line the pockets of the greedy banksters. You really think political reality has anything to do with democrats or republicans??? LOL! SHEEP!

      • markm

        Hey Dummy,

        Your tone is right-on. The “haves” of our society are government workers who are represented by crooked union bosses.

        I am a “have-not” who works in the private sector.

        markm

  11. jeff

    The situation is getting worse by the hour over there. The central bank of Japan seems to be reading out of the Fed playbook tossing 700 billion dollars at the money supply…………..I guess this is the new norm for any problem!

    I read where most corporate Toyko hqs are leaving like rats on a sinking ship…………SONY 6,000 corporate staff has 120 remaining. Toyko is like 200 miles south of the power plants…….and these are citizens of Japan! The information coming out of Japan is slow and full of confusion. A French official said it best ” they(the goverment) have visibily lost control “.

    • Greg

      Thank you Jeff, Reader, MarkM and Brian.
      Greg

  12. Reader

    This just in – Martin Armstrong released from Jail on Monday, March 14.

  13. markm

    Hello Greg,

    You wrote: “It can be anything from an ongoing deep recession to a complete “Mad Max” style breakdown.”

    I agree. Semper Paratus.

    markm

  14. Brian

    Greg,

    It’s just sad. I talk to my kids (though i doubt they will remember)about what is going on. I tell them they are living in historic times. Americas twilight, the last few years where we are the big kid on the block. Things will be much more difficult for them.

    Sad…

  15. Samantha in Tucson

    Am I hallucinating that the Fed is going to implement QE3? I’m quite sure I heard that “Helicopter Ben” is strongly considering it.

    A few social observations today:

    I was in Scottsdale yesterday and noticed that the parking lots at at shopping malls were full. Drove downtown to Old Scottsdale and saw the same…people sitting outside in restaurants and going in and out of shops. The restaurants in Old Scottsdale were especially packed.

    My husband sat and talked with another waiting husband (while wives looked through racks of clothing at Nordstrom’s “Rack”) and they both concurred that it seemed odd that we were in a financial slump with so many people shopping and eating out. I’m afraid that we’re in for a very rude awakening.

    Arizona is proposing ANOTHER $65 mil cut to schools & universities. That’ll really help the state with attracting businesses! Our Governor is, for all intents and purposes, anti-education. She LOVES prisons….especially private ones. :)

    She’s cutting Medicaid to thousands and thousands of the indigent in our state as well as child-care assistance for low-income families (that’ll also help welfare folks who can’t get off the dole because they have no one to watch their kids).

    Brewer’s son is in private mental institution and has been for years (according to my sources in Phoenix). I wonder who is paying that bill? The taxpayers?

    Thanks, Greg. Great article as usual.

    • Greg

      Thank you Samantha for your reporting from the West.
      Greg

    • chow

      Samantha in Tucson

      You don’t seem to understand that education is a personal matter and not the responsibility of the tapayer to pay one’s education.

      As for the private pension…you just answered it, it’s private and none of your business, they earned it through hard work.

      Governor Brewers son in private mental institution…again it’s private and who’s paying it? Governor Brewer and his family is paying it with their own money and not the taxpayer, otherwise it would have been a big news.

      So shut your commie socialist trap and spend or invest your own maoney the way you want it. It’s nobody’s business.

      • Samantha in Tucson

        Obviously, Chow, you are well-educated by the content of your posts. I’m sure you don’t need to worry about education.
        Did your family pay for a private education for you? Or…did you go to public schools? You should at least be willing to answer that question. If you went to public schools, who paid for YOUR education? The taxpayers?

        I never mentioned anything about private pensions…perhaps you need to re-read my post again.

        How do you KNOW who is paying for Governor Brewer’s son? Do you have some sort of inside information? If so, please post it here.

        My point is there are people on this planet who cannot afford to pay for the type of care that Brewer’s son is afforded. There are people who cannot care for themselves due to long-term illness or other maladies that have rendered them unable to function. Do we dump them on the streets? How do we handle the situation, Chow? You seem to have answers that I am not privy to.

        I am not a Communist or a Socialist…just a Realist.

      • Samantha in Tucson

        Chow…you should check your facts! Here’s a little something for you to read:

        http://www.azcentral.com/news/election/azelections/articles/2010/09/14/20100914jan-brewer-son-mental-illness.html

        I don’t think a STATE mental hospital is a PRIVATE mental institution and his family is NOT paying for his care…Social Security is paying for his care.

        Learn to research and read.

    • maxwell smart

      @ Samantha > since WHEN is a govenor trying to balance a budget a bad thing ?
      She is cutting spending for the schools ? And you call that “anti-education” ? OH CRY ME A RIVER for the POOR POOR piss and moan school administrators who make SIX figures and retire AT 55 with 100,000 + pensions.
      So get out the violins and play a sad song for the poor poor school systems getting their BLOATED FAT CAT budgets cut.
      Typical statists and their BIG SPENDING pie in the sky clueless logic. It’s all about the MATH honey and DEBT is a mathmatical formula that FAILS economics 101 > DUH !
      Here’s one for ya > cancel all public school systems and start over with a few one room school houses with ONE teacher, NO admnstrtrs and NO taxpayer supported budgets. Guaranteed BETTER education for children to focus ONLY on math, reading, true history and science AND ZERO politically correct indoctrinization of children.

      And GET A CLUE > those of us in private industry have had our fill of supporting this whole bloated entitlement/public employee system and the whole thing is about to be PUSHED OVERBOARD via WE THE PEOPLE via an old fashioned thing many elitists don’t like; it’s called > DEMOCRACY in action. November 2010 was just the preview of coming attractions in every future elections. Debt is sinking a modern day Titantic known as the United States of America.

      • Hairy Larry

        Maxwell Smart – well said. Public education is very wasteful and often many bad teachers and administrators see the taxpayers as “the giant feed trough.”

        http://www.notmytribe.com/wp-content/uploads/2008/10/pig_trough.jpg

        It is very obvious that public education has been a massive failure in this country, both from an academic and a fiscal perspective.

    • iknowbetter

      Samantha,

      I believe full shopping malls, full parking lots, and even unusually busy restaurants are classic signs of ground level inflation.

      It’s a case of economic inevitablity. When the public knows that the dollar is being devalued and prices for everything will be higher in the future, consumers will spend like mad to take advantage of today’s prices vs. what those prices will be a few weeks or months later.

      As more consumers reach the same realization about inflation, more people pile into the purchasing frenzy. Their beahavior is eventually compounded, and hyperinflation may ensue. In this scenario, we the consumers become our own worst enemies. And you can expect the powers-that-be to depict this action as economic growth. They will deny inflation as long as possible.

      After months of hearing talk about monetary inflation, you’ve just identified consumer price/cost inflation. Thank you. I knew someone would “out” our inflation fate in approachable way. You are not to blame, yet you may be a harbinger.

      …ikb

      PS. No comment on Arizona. I can’t touch that one.

    • markm

      Samantha,

      We have what seems to be a thriving recovery because all of the pension funds and assets are being raided by Bernanke/Obama. Those snow-birds in AZ don’t know it yet.

      QE1, QE2, et alla, are devaluing assets. By deflating the dollar, Obama is decreasing the value, or actual worth of our debt. The hardworking American citizen is paying for this policy by ending-up with worthless assets.

      School bureaucrocies are heavily bloated. A 30% reduction in state-level education bureaucrats combined with a devolution of decision making to local school boards will save money, help teachers, and increase educational results.

      However, you are a Kool-Aid drinking drone who will never learn from history. Reality sucks. Enjoy your stuper.

      markm

      • Hairy Larry

        Well Said, Markm. Well said! Interesting what you say about the devaluation of assets. Makes a person stop and think.

      • Samantha in Tucson

        My post was simply an observation…nothing more.

        First of all, Markm, I am NOT a Kool-Aid drinking drone. Enough with the name-calling; it’s childish. I have a pretty good grasp of history. Second of all, I have seen UP CLOSE AND PERSONAL much of what you write about.

        However, there are those who post here (thank you “iknowbetter” for not stooping to name-calling and unproductive dialogue) who feel they have all of the answers.

        By saying that a 30% reduction in state-level education HELPS teachers is a fantasy! The teachers are the ones who get cut, get blamed, and get laid off. I’ve talked with many very good teachers who get the brunt-end of the stick when reductions come along. How many teachers have you talked with lately?

        I do think that school systems have way too many administrators and going back to the one-room school house is not a bad idea. However, until you run for office and put your money where your mouth is, it is not going to happen in a large-scale way.

        Social entitlements are something I do not like either and we DO need to do something about “the system” in a big way. [The only person I’ve listened to and read lately who may have many of the answers to this country’s dilemma is Ron Paul. I actually sent money to his last campaign and will do so again if he runs.]

        For those of you who DO have all of the answers, why are you not running for state offices so you can work on your “mop job” and get things straight with our country? If you are running, let us know who you are so we can send voters your way.

  16. czzi

    As I thought the truth hurts so you took down my earlier posts, they had nothing bad in them in anyway, so why take them down? Other than I made multiple postings (which was unintended). So many thoughts.

    • Greg

      Czzi,
      I put up all your comments and will not take them down. Thank your for your perspective.
      Greg

  17. czzi

    my apology.

  18. Greg

    Czzi,
    Gold and silver is money and has a 5,000 year track record to prove it. You are much better off with that investment than Federal Reserve Notes. Thank you for all your comments.
    Greg

    • markm

      Hey Greg,

      You have proved the rule with your last statement: Lex Parsimoniae.

      markm

  19. Tom H

    Greg, why does everyone keep talking about repaying the debt? The quicker everyone accepts that it is mathematically impossible to pay the debt, the quicker we can reset the system and move on.

    We keep hearing things like “austerity measures” and “future generations will have to pay the debt”. What no one seems to grasp is that there will never, ever be enough money to repay the debt. A dollar is debt and is born as debt with interest. So every dollar ever created is owed to “someone” yet the interest is never, ever created. Ergo, if every dollar in existence were “paid back” all the money, every bit of it, would be gone, and we would still have a huge debt.

    People need to grasp that we have been conned with a debt that is unpayable by design, and it has made all of us debt slaves with no possibility of liberty. I don’t understand why the great mass of men can not grasp this simple concept. We need a new money system. Money is not evil, interest is evil because the bankers know that they can never be repaid what is never created in the first place. IT’S A SCAM! The American people need to get over the other scam we have been handed (the democrat vs. republican thing) and unite as a people demanding honest money. While we are at it, we might want to consider hanging the criminals that stole the wealth of our once great Republic, whether thay have a (D) or a (R) next to their name. In my mind a thoroughly corrupt Democrat is no better than a thoroughly corrupt Republican. Everyday I am more and more amazed at how stupid “we the people” are. We are many and they are few. If we all stopped paying taxes, stopped working, stopped buying gas, stopped flying, etc. for just two weeks, it would bring about the end of the entire system.

    Look at the airports, where are fellow citizens have their 4th ammendment rights violated on a daily basis (government sanctioned molestation). If everyone stopped flying for just two weeks, it would all go away. Americans, bankers and corrupt politicians have stolen your freedom, don’t take their shit anymore!!!!!!!!!!!

    • Greg

      Thank you Tom H.
      Greg

    • Brian

      Thanks for your comments, Tom H. It’s encouraging to know that there are insightful, discerning Americans who will be present to rebuild this republic when the time is right.

    • youngbuck

      Awesome post. My thought exactly (well, my thoughts honed into a well thought out post :)

  20. czzi

    Greg, my point is, I know gold and silver are a stored value I own silver, however, all of these investors talk about how many dollars your G/S will be worth. BUT if that paper $$ is so devalued that all the G/S means nothing, since we have 300 million Americans, how many own G/S? Did you see the video with Mark Dice asking people on the street if they would pay $50 for a 1 oz gold coin, he got NO takers.

    So whom shall you trade G/S for goods with? I still believe our country will survive, can you also tell me who is going to be happy with a USA collapse? It seems that is what some want so they can make profits? I find that sick. Thanks for your openness on different viewpoints.

    • Greg

      Czzi,
      People will change when the currency goes up in smoke. They’ll have to. Peace.
      Greg

      • James M

        I would happily take gold or silver as payment for services rendered right now , never mind in the future.

  21. Otter

    Hi Greg –

    Czzi’s comments seem to equate gold with a dollar amount instead of purchaseing power. If it cost’s me today $2,800 a month to meet my monthly expenditures, that would equate to two 1-oz gold coins at $1,400 per ounce. Ten years from now, inflation may have driven my monthly expenditures to $10,000 per month. Assuming the gold maintains it’s value in relation to inflation, gold would be priced at $5,000 per ounce and it would still cost me two 1-oz gold coins to meet my monthly expenditures. It’s doubtful that any investment over a ten year period of high inflation would maintain this type of purchasing power.

    On a different note, I traveled the I-5 corridor between LA and San Francisco over the week-end and yesterday. I’ve made this trip many time before and dread it because it’s only two lanes and the traffic is always slowed by people doing the speed limit in the fast lane while the slow lane is crowded with trucks. The corridor traffic over the two trips was noticebly less, probably only a third of the traffic. The trucks were still there, just very few private vehicles. I’m guessing this is indicative of the state of the economy much the same as Panama canal tonnage numbers are an indicator of the world economy.

    Keep up the good work.

    Otter

    • Greg

      Thanks Otter and Hoppe.
      Greg

  22. Mike

    Quid pro quo (confessions and perspective of a centralist-radical)

    $ Left Right Polarization Propaganda is masturbation. To those here who feel the need to indulge themselves? You won’t go blind you already are, please do so in private.
    $ Unions are dead, I am a member of a government one, let me tell you they will be going bye bye and have no power. The real ones were destroyed long ago by offshore outsourcing the ones remaining are no longer needed by the current occupational Government to legitimize themselves.
    $ Austerity measures are here to stay because the powers that be want it that way.
    90% of America makes a household income of 60K or under
    $ 1/3 of Americans are on some type of Government stimulus
    $ IMO All the American can do spirit is a bunch of B.S. It doesn’t apply to Americans today because they did not earn it. That reputation was earned by our frontier ancestors because they were self reliant and ingenious. Necessity is the mother of all invention and they had to do a lot out of necessity so they invented a lot.
    $ IMO The school system is a waste of time money and resources. Teachers are unnecessary; your best teacher is yourself. You can choose to become an autodidactic like our ancestors who wrote with a tool from a ducks butt and became geniuses. Or you can go to the current American school system. A system that produces fat, lazy, spoiled slobs addicted to groundless government optimism and stimulus who don’t believe / know history and think inflation is a myth.
    $ IMO The only myth is you can vote your way out of this and live in a Democracy.
    $IMO Solutions? The normalcy bias and cognitive dissidence prevents all but about 1/3 of 1% from realizing there is a problem.
    $IMO You are witnessing the NAZI CREEP, meaning Nazism didn’t not start out all that and in your face like we know it now. Nazism crept up on people and one day they woke up from their optimistic idealistic dreams into a police state nightmare.
    $IMO The government won’t even try and save / help you they will save themselves. See the rats off the ship mentality being demonstrated now by the elite by an irradiated rank and file are just looking for a pair of socks.
    $IMO You live in the occupied territory of a Corporate Feudalistic Oligarchical state and this is not a Doomsday scenario this your freedom and your life . . . and it’s being degrading one day at a time.

    Greg you are doing a great job keep digging up the facts.
    In case you need a little levity for the modern day after that rant. Cheers!
    George Carlin’s take on the current state of things:
    http://www.youtube.com/watch?v=EjmtSkl53h4

    • Greg

      Thanks Mike for the info and levity!
      Greg

  23. Mike

    Enjoyed the article Greg. I have believed our economic system was unstable for about five years now and it certainly feels like the climax to this whirlwind is close.

    Regarding your comment, “By the way, there is no real protection in your 401-k plan unless you cash out, and pay the tax and penalty, and move directly into physical PM’s. I know you won’t do that, but that is the truth.”

    I did this in late 2007. I left an employer I had been with for 11 years. One of my motiviations for quiting was to gain the ability to cash out of my 401K which comprised half of my wealth. I bit the bullet and paid nearly 50% in taxes and then rolled the proceeds in PM’s. People thought I was nuts to pay all that money in taxes. However, my thought was the big 401k balance was just a mirage. Even if the economic system survived another 25 years until I reached 59 1/2, the tax rates would likely be higher. The government is always your silent partner in paper investments.

  24. James

    @czzi –

    I completely understand your sentiments regarding gold and silver. Yes, they will be completely worthless if we go Mad Max and the system comes unhinged. People that talk about bartering with PMs are fools – plain and simple. If we go Mad Max, I won’t trade a can of tuna for a whole wheelbarrow of gold. However, there’s a middle ground scenario. Lets say the system starts to melt and world leaders come together and unveil a new currency. Your old USDs might translate at 100 to 1 ratio (100 USD for 1 new currency). In this case, gold and silver will be superior to USD. So, hold some gold and silver as a hedge. It’s all about being prepared for as many scenarios as possible. Good luck.

  25. jeff -

    The continuing events in Japan keep getting worse by the hour and now it is reported by some sources that fallout could be reaching the West Coast! How does our President get away with spending hours on TV giving NCAA picks and hosting hockey teams at the White House while all this is going on?

    I hate to be off topic but this all seems related to the state we find ourselves in now. The disconnect with our leaders and the public could not be more clear………..our leadership is in denial. Japan is being destroyed and our leaders in goverment continue to talk about budget cuts, unions, and NCAA March Madness!

    How sad!

    • Greg

      Thank you Jeff and Chow.
      Greg

  26. Magnix

    Been reading all of your articles – thank you for your input! I have some questions.

    1.) I have tons of silver/gold coins, will the govt confiscate the gold when it reaches the value of $2000?

    2.) When America crashes, how am I going to pay the mortgage? Excuse my ignorance.

    3.) Is it best to move my PMs out of USA if crap hits the fan in America?

    Thank you very much!

    • Greg

      Magnix,
      Here are my short gut feeling answers: 1.) Probably not but taxes might rise. 2.) Cash in gold. Eventually we will have another currency. There will be bigger troubles than your mortgage payment until there is a new currency. 3.)I wouldn’t park my gold out of the country unless I was going with it.
      Greg

      • Magnix

        2.) Are you referring to SDRs as a “another currency”?

        Thank you very much!

        • Greg

          Magnix,
          SDR, Bancor, Patriot Dollars, Who knows?–but there will be another currency.
          Greg

  27. ANOTHER OLD COOT

    I AGREE WITH OLD COOT 100%
    AT LEAST A YEARS SUPPLY OF FOOD AND EVERYDAY ITEMS
    IT IS UPSETTING TO SEE PEOPLE WITHOUT FOOD AFTER A THREE DAY SNOW
    BUY SALES AND SHOP AROUND
    INSURANCE AGAINST GOING HUNGRY
    PEOPLE NEED TO REALIZE THE DIFFERENCE BETWEEN NEEDS AND WANTS
    AM I PARANOID? (I HOPE SO) 1 AM 84 ,BEEN THERE AND DID THAT.

  28. M SMITH

    Czzi, please read this writing by Martin. I hope you will see what others from around the world have, as they supported him through the near death attempt he was subject to,lack of medical care & a extra 5 years of prison time. The letter speaks for its self! http”//www.scribd.com/doc/50714739/release-3-8-2011. If that fails to the link try, http://www.scribd.com/kzuur58, then scroll down to the Release Letter. We are all on the same side,but the Power Elites try their best to deceive & enslave us. I hope best to all in these very trying times & that we may all come together as one Republic. M.Smith

  29. mountainman

    If you can’t afford gold and silver, You need to stock up on food supplies to help you get through the hard times that are coming and rotate the items out as you buy groceries. This is just as good as silver or gold. Make sure your expiration dates last a few years. Most of all, make sure you’re living right with GOD!!!

  30. BigTom

    To Hoppe – only taxes and death are guaranteed in life. with gold currently correcting at the present it is still up 24% over the last year alone and you are not in that….the stock market is also up over the recent lows, and i take it you are in that. then what equities could your 401(k) possibly be invested in to have, ‘missed most of the stock market returns’….as your tax accountant so said? perhaps you need to freshen your view and peer out a new window. and to Greg – keep up the great work…your site is refreshing!

  31. Ed

    One respondent asked what he could do with a gold piece or if we would be buying our groceries with a “silver” dime. Although said toungue in cheek, they were closer than they realize to what “could” happen. Discussing Silver and Gold in “dollars” provides a frame of reference that most people can understand. Here’s another. In 1964, minimum wage was $1.25 and gasoline was .27-.29 cents a gallon. So for your “hour of work” you could purchase almost 5 gallons of gasoline. Today the minimum wage is $7.75 and gasoline is $3.50 gallon, meaning that your same “hour of work” is now only worth slightly more than two gallons of gas. Despite being better educated and hopefully more efficient, your value is less when it comes to purchasing the same product for dollars.

    Now comes the fun part. In 1964, you could have been paid in quarters that were 90% silver. Given the current “value of silver”, those five quarters today would be worth about $6 each or $30. That would buy you not quite 9 gallons of gas.

    So the value of the “dollar” buys you less 47 years later, while the same value of “silver”, buys you more. I realize this is simplistic, but it is also accurate. I also understand that four years ago the value of the “silver” was a quarter of what it is today, which still makes it worth more than minimum wage was at that time.

    Silver and gold will be worth what you can trade for it. If the dollar’s value goes away, sellers will move to the next best thing that holds it’s value. Traditionally that has been gold and silver and was in fact what the founders of our nation wanted as coinage, not the base metal fiat that we use today. You might be surprised how fast merchants can change gears to accept payment outside of dollars. Some Flea markets and personal transactions already use barter and negotiating is making a comeback. It all boils down to you have something I want and I have something you want and can we make a trade on it.

  32. Bill s.

    Hey Greg….interesting stuff….and I’m a proponent of the Strauss &howe “.4th turning”…hope you’ve read it….none of what you foresee is incompatible with what they propose…..interesting interview elsewhere with g friedman of straffor….suggests we are extremists…that when evaluating the credit worthiness of an individual….or country, you need to look not at only the income/revenue and debts…..but also the asset base….in which case the USA is not in nearly as bad shape as if only debt ratios are examined……maybe…but that plus the fact that we are the reserve currency and have the military that outstrips every other country…probably means the current stresses can go on a hell of a lot longer that you might think….

    • Greg

      Thank you Bill S. Good information.
      Greg

  33. slingshot

    Friends, Romans and countrymen, lend me your ears. I come to bury Caesar, not praise him. The evil that men do, lives after them…
    I do say, Marc Antony had it right in Shakespear’s play and there are plenty of Caesars today, that fit that mold. My kingdom for a horse would be
    attributed to an honest politician or banker. Alas we shall reap what we have sowed and it may be better to light one candle rather than face the darkness.
    The above paragraph may be meaningless to most. Still there is meaning within.
    Whether we want to believe it or not, there is something from a deep recession to Mad Max over the horizon. A point in history where we again will have no one to depend on but ourselves. You have to ask yourself, how much control do I have over these events, current or future, and if your honest you would say, plenty if you chose to. Even with this acknowledgment, you must act and make the changes or preparations to withstand the storm.
    Each one of us have different circumstanses that affect our lives and to procure a solid argument on any point of view is impossible. Those that have the resources to coupe with certain problems would be different for those who do not. Depending on a small income the circumstance may be catastrophic to those facing the problem as the impact would be greater on their lives. Consider housing, food and energy. It is complex in understanding that many in the underdeveloped countries, now have more money for the things they once could not afford, leaving those left behind to pay higher prices on food because of demand for such items. Such is it a part of the middle east turmoil.
    In the good old USA another story unfolds and that is how are we going to pay for it all. Or cut till it hurts. Our birth rate is so low, that it will not sustain our older citizens. The cost of keeping us alive is overwhelming. By George, who wants to work till they are 75 years old to compensate for the cost. Even to have more taxes and co-payment increases on a fixed income. Could our young be faced with, working till they die? Or die young due to stress to support these programs and other entitlements?
    In my world, inflation is the beast that knocks at our door and if not checked will lead to a currency meltdown. We can call it, ” The Great Reset’, whereby a new currency is introduced and you get one new dollar, for ten of the old. I am only speaking of savings and other forms of investment might be in the wind as they are not part of the federal reserve banking institution. We must be aware of the term,’Force Majore” where all bets are off. Retirement plans could be affected. There is no garrentee, even for gold or silver, but when the public sees it has been hoodwinked, I will bet they will become a
    accepted transaction for all goods and services instead of paper.
    To address, share sacrifice, I would agree there are no exceptions for those in elected office.

    • Reader

      Hey there Slingshot, Actually Ceasar was not a bad guy! The US could use a leader like Ceasar now – someone who undertands the debt problems and provides relief for the taxpayers. (Richard the 3rd is another matter! :D)

      If you want to learn more, check out martinArmstrong.org for the pdf article entitled “Anatomy of a Debt crisis – Which seems only Julius Ceasar understood!”

      Cheers

  34. Rarn

    Hi CZZI,

    What will you do with money (gold) when the currency is dead? You will get a lot more bartering that gold coin away than trying to barter away $5000 worth of Federal Reserve Notes. I admit, gold can be difficult as a medium exchange because it is very very valuable by weight, but it’s better than paper and ink, I assure you.

  35. Bill Williams

    If we merely returned to the tax percentages that were in effect when Bush2 took office in 2001, we could erase 60% of the annual budget debt. But, with Republicans in office defending their millionaire constituents to the last drop of our national wealth, that will not occur. Any society that can pay its sports and movie stars untold millions each per year in annual salaries has the means to support itself. Unfortunately, Obama seems to agree with the Republicans. Bail out the banks; don’t tax anyone. Live off of borrowing. It’s what our political system wants. We deserve what is coming. We’ve earned it.

  36. ManAboutDallas

    The argument about gold and silver being “not spendable” is as laughable as it is wrong. Right now, this very moment, there is NO REASON at all a demand deposit account [ read: chequing account ] couldn’t be denominated in grams of gold and / or silver and “spent” via the ubiquitous ATM / Debit card. A U.S. one-cent coin – that’s right, the PENNY – is worth, right now, 0.0000022381 of a gram of gold. Yeah, yeah, I know, it’s 10 decimal places and to our two-decimal-place minds it “looks” funny but you know what ? It’s a ho-hum, no-big-deal number to a computer, any computer. And a piece of penny candy would cost you that much gold DEBITED from your “gold chequing account” when you swiped your card, just as it would have taken $.01 from your dollar-denominated chequing account. The computer doesn’t care; it’s just a number.

    The first bank that offers a “gold” ( or “silver” ) chequing account tied to a debit card will be the new banking pacesetter for the rest of this century. I’m amazed Mr. Turk at GoldMoney or the folks at BullionVault haven’t figured this out yet.

  37. Super M

    Hi Greg,

    Regarding this discussion of 401Ks, I wanted to let you know that my plan allows me to self-direct my account into 6,000 + mutual funds. I picked 2 precious metals funds that have done very well. In addtiton to miners, these funds also hold physical gold. I am aware of the systemic risk but I do believe the thieving pigs in control of our money will paper over any immediate crisis to save their bacon
    thereby allowing my portfolio to skyrocket while turmoil unfolds. I didn’t know if you were aware of self-directed 401Ks. Do you think I am being naive about the systemic risk? If the environment becomes
    really scary, then I would bail out completely. Thoughts?

    • Greg

      Super M,
      I think when it gets bad there will be capital controls. Meaning, you will only be allowed to take out a certain amount every month. You don’t think the Wall Street Casino owners are going to let everybody take their winnings out when things get bad do you? You are being naive about how bad this will get, and it will get very bad. Good luck.
      Greg

  38. nm

    “90% of America makes a household income of 60K or under”

    Is this correct? If it is, then 90% will lose their 401K money when the crash occurs. The 401K’s are the only savings most people have.

  39. William Ripskull

    I’ve been telling people this for over 3 years now. A few people are receptive, but most are completely not and think I’m crazy for even suggesting such a thing. A few years back I was the same way until I started to do some reading and research (trying to figure out how to invest, whether we were facing deflation or inflation). The more I read, the more shocked I became, understanding our money system, the role of the Fed, the history of countless failed money policies of the past, and realizing our current predicament.

    I’m not a doomsday-er. I just tell them to carefully assess the current situation. Read some history on the subject. DO THE MATH! Its an impossible situation that will not be gotten out of without great pain and misery.

    I live in upper-middle-class, pretty well educated suburbia. I would guess that considerably less than 1% of all the people I know own any precious metals. Far fewer have more than a couple of days of food on hand. They think this is just another recession that we’ll get past again, and that good times are right around the corner again. I hope to God they’re right. The Boy Scout in me says otherwise. Be Prepared!

    -WR

  40. Rob

    Hi Greg!
    The Japanese Yen is collapsing as the first of many to bring the one world currency needed to bring a cashless NWO that buys and sells via a RFID chip imbedded under the skin. The scriptures demand it and it will be fully implimented by 2015. The covenant will be made this fall ushering us into the 7 year tribulation and this mark must be in place by the midst. If you would like to know more please visit us at http://www.unleavenedbreadministries.org
    In CHRIST! Rob

    • Skelly

      Too many acronyms

  41. Moti Nissani

    Nice article Greg, and overall, on the mark.

    However, like many financial experts, you do appear out of your element when it comes to human ecology. You said: “Japan is a stark reminder of how fast a modern technologically advanced society can be brought to its knees by an unforeseen calamity.” But such nuclear catastrophes have always been entirely predictable. Decades ago, men like Ralph Nader considered nuclear power a crime against humanity. Let me cite just a few foreseen problems:

    1. Entire plants must be decomissioned and spent nuclear “fuel” must be disposed of for 100,000 years, give or take 50,000. Who is going to guard that diabolical stuff? Who is arrogant enough to believe that such guardianship is possible? How much energy would that by itself consume? Is that the kind of heritage to bequeath future generations?

    2. We go on producing this devilish spent fuel, but we have no idea what to do with it. So, for the time being, we often compound the crime by keeping that witch’s brew near the power plants (a crime in itself), hoping that some day we’ll figure our where to put that brew, or that we will find a victim gullible or weak enough to take it. This, clearly is a recipe for disaster.

    3. We trust inherently corrupt, self-seeking, private corporations to guard that stuff. Given corporate record of irresponsibility (recall the Minamata disaster, for instance), such trust is so misinformed as to lay a fair claim to insanity.

    4. The wastes can be used to make nuclear bombs. They can also be dispersed as they are to blanket a large area with lethal, long-lived, poisons.

    5. If real terrorists one day do come along, they would blow up nuclear power plants, not world trade centers.

    6. Uranium mining is associated with many problems.

    7. Worse of all, there are indications that nuclear power is a scam–it might consume, in the long run, more energy than it generates. An incredible, ignorant claim, you might say to yourself. After all, our controllers are not that vicious, greedy, and crazy. Check it out: for instance, Miller’s standard text, Living in the Environment.

    8. With just a bit of energy conservation, of the type attempted by Jimmy Carter (that’s why he was railroaded out of office after four years–he apparently had a conscience), and advocated by the National Academy of Sciences and Amory Lovins, among others, we could close all nuclear power plants in the world, and most coal plants. We could also save our health, money, and environment. For example: the technology for 120 mpg in all cars exists. It’s not being used because it would hurt the bottom line of bankers and oilmen. And there are 100s such examples of earth-saving, money-saving, schemes. That is the only reason we have this absolutely foreseeable disaster: greed and 100% corruption of our political process. Campaign financing is just another name for bribes. They buy our politicians and judges, who then proceed to serve the short-term interests of their masters, and betray the long term interests of humanity and the biosphere. And if the politicians and judges defy their masters, the controllers railroad them (Carter, Spitzer) or kill them (e.g., Walter Reuther, JFK Sr., RFK, JFK Jr.,).

    Conclusion: Nuclear disasters have been predicted from the very start. More, many more, will take place. Eventually, the survivors (if any) will look on us with more aversion and contempt than the way we look on cannibals, and they would be absolutely right. We operate on a larger, more vicious scale.

    We must urgently inform ourselves of what’s going on, and that means learning something about ecology too. Almost all independent websites advocating freedom think that concerns about the environment, about climate change, about bees, about population growth, are for the birds. You would think they are beholden to Exxon and BP, or that they are victims of tunnel vision. Ron Paul, their great champion, is an environmental reactionary, to put it mildly (see for instance: http://www.opednews.com/articles/opedne_moti_nis_080116_reflections_on_the_p.htm). Next, once enough of us are aware, we must get rid of the bankers and their allies by ANY MEANS NECESSARY. At stake is everything that makes life worth living: survival, freedom, decency, social justice, genuine democracy, equality, spirituality.

    p.s.: Sorry for the passion, but in times like this, when the bodies keep needless piling up, when there are so many lives in the balance, it’s hard to keep calm.

    • Greg

      Thank you Moti for your perspective on this post.
      Greg

  42. Bob

    I’m in the inflation and higher wage camp. If you got a trade that people need you will get paid for it one way are the other. People want and need things and deflation an inflation is just part of life. The trouble we are having is because people had to much debt and they are now out casts and must pay the price. The U.S. has become a country much like we were in the 1950s , Show me the money are you don’t get the house. The easy credit days are gone and that has cause a slow down. You will still have investors and workers. The bankers and investors have the upper hand right now, but labor is waking up and America is not looking to bad when you look around the world for a place to invest in. I bet the Japanese may be looking to do some building over here. Anyway this is the world we got and people got to eat an have a place to sleep. Life goes on just don’t put all them eggs in one basket. PEACE bring the troops home.

  43. Tony

    I very much appreciate your site and the comments from your readers. It’s apparent to me that the people who visit this forum have insight into many of the problems we are facing.
    I have a problem with the talk of a Mad Max scenario. Yes, it is of course a possibility but is it probable?
    We can admit that many things are possible, the Yellowstone volcano could become a super volcano in our lifetime and wipe out most life, but it’s not probable.

    There are many examples like this. I think it would be more constructive to look at end games that have a real chance to materialize. I’m not talking down to anyone here. If we had a Mad Max event we would be looking at over 90% of the population being wiped out. That would be a total breakdown of everything we know!
    That seems a bit far fetched. Even when other countries in the past have failed, the population was not wiped out. Isn’t it more likely that many things will fail, we have a few riots, the grocery stores have delivery problems and then we have a new currency.
    I can’t see most people being killed off.

    Please help me see what I’m missing.

    Tony

    • Greg

      Tony,
      What is happening now has never occurred on this scale in human history. Who knows what will happen but I wouldn’t be holding dollars when the world stops using the U.S. dollar as the reserve currency. Thank you for your comment and question.

  44. phil

    Hi Greg.
    With all that’s going on in Japan, I haven’t heard anything about the Obama administration filing an appeal to the Florida court concerning the Obamacare ruling. Did I miss it or did it fall between the cracks. I can not believe the idiots coming out of the woodwork trying to put a political spin on a situation coming at us like a run away freight train. While our government continues to play smoke and mirrors and the Japan earthquake takes center stage, we loose another day of opportunity to prepare for the inevitable collapse of our economy. Planning is prudent. If everything turns out fine, no loss but come capital, if all goes as we’re predicting then it will really matter what we did today to prepare for tomorrow. Thanks for your patience with the Nay Sayers. Yours is a tough stance, but you’re not alone.
    Phil

    • Greg

      Thank you Phil. I am just trying to call it the way I see it and not sugarcoat anything.
      Greg

  45. Davis

    I don’t know if you or any of your readers are familiar with “Black Swan” theory or not. But the events in Japan sure look like a very dark bird to me. We don’t exactly what will happen at the Fukujima reactor complex but the third largest economy in the world has just essentially gone off line and I think the repercussions will be global. I fear the time grows short to prepare for a currency collapse.

  46. therooster

    We desperately need a higher gold price. Modern payment systems split up the enhanced bullion weight and deliver digitized currency (the actual ownership title denominated in weight)at the speed of light. The irony is that this real-time gold payment system would not have come about without the advent of the free floating USD and the severing of the fixed peg back in 1971. Some evils are necessary, so it seems.

  47. James M

    It is obvious to anyone that the system we are now in is broken and not going to live much longer than the ambulance ride to the ER where it is pronounced DOA. When that day will be is the question, and no one knows. When it does occur it would be far better to have some silver and gold coin as opposed to worthless paper. Even if the implosion is ten years off, then as long as money is printed from nothing by the trillion then you really can not loose with metals I think. When you see silver and gold reported by the MSM on TV or Time as the thing to buy or the best investment ever then sell it off for real estate ASAP.

  48. Albert

    Just a little perspective. Gold and silver are only meant to preserve ones purchasing power. 60 years ago a silver dime bought a gallon of gas (without current taxes) or a loaf to bread. Today a silver dime will still have the value to purchase those items. So I guess the answer to czzi’s question is yes, you can spend your silver dimes on the things you may need. I don’t consider the value of gold and silver in relation to FRN’s, I only consider their intrinsic value, which BTW, is about the same the world over.

  49. Steve

    Japan was a big buyer of US Treasuries. Since that may not be happening now then with Expanded QE2 the Fed will buy is own Treasuries and print more cash in circulation to pay for Government expenditures. Other countries may redeem at an accelerated pace also. Would then a systemic failure of the US Dollar cause American Government to default? Or the worst total default and a reissuance of a new “Liberty Dollar” and new currency? Seems like cutting the budget and shifting jobs to the private sector is more permissable? Besides $5 a gallon gas, $5 loaf of bread, etc… would bring the US into what was anticipated “The Double Dip” recession to a Depression? Food stamps is the modern replacement to Soup Kitchens. Calamities in Japan just may be the final “Trigger”

  50. lynn

    If anything was still made here, the Japanese might have been interested in buying it to help with their re-building efforts.

  51. Jim

    Greg,
    Seems unclear if the Fed will instigate QE3….according to Jim Rickards of Omnis (you can hear his interview on kingworldnews.com).
    He claims the fed has at least 750 billion annually to use from the current rollover of their balance sheet to buy treasuries…which
    might forestall armegeddon for the time being….and fool the market for a few years…..maybe. However, I still believe like many….the ultimate goal is the planned destruction of the dollar followed by a universal currency…..consolidated under the control of our beloved oligarchs…..but maybe their not ready just yet????

  52. Alyce

    This morning, CNBC discussed how Japan exports cars and now that will stop. But not to worry if you need a new dashboard for your Lexus because there are plenty of other places to get it from…next subject!
    Japan’s earthquake has shaken up much more than nuclear reactors, let alone car parts. Not only will Japan stop buying US bonds, but they must sell them in order to pay for reconstruction. Insurance companies will also sell their US bonds in order to pay for claims. We’ll print more money while the middle east revolts and oil prices soar. We are much closer to a “meltdown” now than we were a week ago.

  53. lostinmissouri

    Greg,
    The more famous and widespread you become, the more fruits and nuts, that will be posting here….(me included.) I guess it goes with the territory.

    We live in interesting times.

    • Greg

      Yes, LostinMissouri we do live in interesting times. Thank you for your continued support.
      Greg

  54. Matt Schilling

    A collapse of the dollar will end the era of corrosively cheap imports. Virtually overnight, production for American consumption will shift back to American soil.

    The level of consumption will necessarily drop, of course, especially of trinkets. But food, clothing, and energy are not superficial wants and, for most of our history, America was a great producer of all three and can be again.

    I hope/believe the coming economic crisis will get Americans to push aside the unholy alliance of bed wetting Liberals and enviro-Luddites that has done so much damage to our industrial base. For instance, we are about to remember we are quite capable of being an energy producing super power.

    I believe we will build dozens of hi-tech, safe, thorium-based nuclear reactors to free up all our coal consumption to produce pristine clean diesel and jet fuel. We will quickly move from selling mostly gasoline powered vehicles to diesel. And, we will export diesel to Japan and Europe.

    Further, we are going to quickly convert residential heating now done with foreign oil to use cheap domestic natural gas. (We currently use as much oil to heat homes in America as is needed to power 10,000,000 cars).

    For the last few decades, America has been able to somehow afford the criminally insane elite who have denuded our industrial capacity and have reduced us to something like a modern colony to the rest of the world – the world’s dumping ground for excess production and populace.

    I really think we are about to start acting like a rational, sovereign nation again. In twenty years I predict we will change our national bird – we will replace the bald eagle with the phoenix.

    • Greg

      Bravo Matt, I hope you are right!!!
      Greg

    • Samantha in Tucson

      My sources in L.A. (decades in apparel industry) tell me they anticipate on-shore apparel production to pick up 30%+ in 4 years.

      This is the best news I’ve heard in a long time.

  55. Mark

    Hi Greg!

    Love you work! Keep all this great articles coming! What do you think of platinum and palladium? I have gold and silver already.

    • Greg

      Mark,
      They have never been money, but I am sure they will go up in price. I like gold and silver best, because they have a track record of being money for about 5,000 years. Peace.
      Greg

  56. justin

    Thanks Greg for keeping us informed. I keep repeating myself when I tell people to stock up on food and other items. The last couple of months while working off duty at a grocery store once or twice a month the food stamp machines go off line. The people loose their minds when this happens and the situation gets tense, as an officer you start getting nervious considering your outnumbered atleast 150 to one. PLEASE get your affairs in order for you and your families, 2 months till we get out of the city.

    • Greg

      Thank you Justin for the reporting from the front lines of real life!
      Greg

  57. Rod

    Greg, Phew I’m exhausted after all that but I think there are a lot of good points out there. There are no perfect answers to all the problems out there except one: Jesus said many years ago when all these things come to pass Look Up for your redemption draweth nigh! Thats where I’m puttin my money. True Peace is available.

  58. D.B.

    A “U.S. Dollar”, according to the Constitution and the Coinage Act of 1792, is “of the value of 371 and 4/16 grains of fine silver”, a value that was FIXED pursuant to Congress’s Article I, Section 8, Clause 5 power to “Coin Money, Regulate the Value thereof, and of foreign coin, and Fix the Standard of Weights and Measures.”

    Having FIXED the “value of a dollar”, then BARRING CONSTITUTIONAL AMENDMENT, that IS what the value of a “U.S. Dollar” IS — the weight of silver in a silver dollar, i.e. ~.7734 troy ounces.

    Federal Reserve “Notes” which are not notes (since Series 1963) and purport to be “dollars” (but most definitely are not), should not be confused with U.S. Dollars — they in NO way actually represent U.S. Dollars. In fact, except for the Federal government’s first experiment with counterfeit during the Civil War, from 1792 until 1968 it was *always* possible (albeit perhaps inconvenient) to receive this quantity of silver in exchange for U.S. Dollar-denominated notes.

    For more, read “What Is A Dollar?”, by Dr. Edwin Vieira:

    http://www.fame.org/HTM/Vieira_Edwin_What_is_a_Dollar_EV-002.HTM

    • Greg

      Thank you D.B., Mitch, and Blob.
      Greg

  59. mitchbupp

    We are all in trouble but not like the Japanese and their reactors. I spent 18 months working at Peach Bottom Atomic Power plant in Delta, PA. I know it is a very dire situtation for the local area!

    however, it appears that the Japanese government is about as credible as the FED and their policies when it comes to the facts about this nuke tragedy!

    I’m getting my Japanese news at

    http://english.kyodonews.jp/news/japan_nuclear_crisis/

  60. blob

    It appears China is poised to collect on the debt:http://www.stevequayle.com/News.alert/11_Global/110317.alert.Hawk.reds.rads.html

    Think things aren’t so bad? I hope you’ve made your peace.

  61. Marcel

    The after effects of the International Communities’ drive to carve up Israel (under a false peace scheme) to the hate filled,intolerant and bloodthirsty enemies of God has brought a curse upon the economies of all these Countries.
    Britan,France,Portugal,Italy,Iceland,Greece,U.S.,Japan are just a few of them suffering under this ancient divine promise.The curse, It will spread and deepen.
    Genesis 12:3
    I will bless those who bless you,
    And I will curse him who curses you;
    And in you all the families of the earth shall be blessed.”

    • D.B.

      Marcel–

      How about — remember the U.S.S. Liberty?

      Or perhaps:

      Revelation 3:9 (KJV) — Behold, I will make them of the synagogue of Satan, which say they are Jews, and are not, but do lie; behold, I will make them to come and worship before thy feet, and to know that I have loved thee.

      When all is made clear, and the actual patrilineal Sons of Jacob are given what they were promised, the liars and usurpers will see what Hashem has in store for them.

  62. Meatdawg

    I always “enjoy” your informative articles. I put enjoy in quotes because there is a lot of bad news out there, but I can’t blame the messenger. We need to be informed. What if the states, counties, cities, and their agencies aren’t broke. What if they have tax funds hidden in their Comprehensive Annual Financial Reports. Funds that are continually churned over in various investment vehicles hidden from most of the public.

    I beseech you to investigate this phenomenon, please. Here are two websites that ecplain these CAFRs.

    http://www.cafrman.com http://www.cafr1.com

    By the way Walter Burien is a prince of a guy. He is very knowledgeable about this topic and would make a great interview.

    • Greg

      Thank you Meatdawg.
      Greg

  63. mitchbupp

    HI Greg, as a former nuke plant worker I am watching this very closely because I know and understand the danger the Japanese are facing. I have been looking at news at
    http://english.kyodonews.jp/news/japan_nuclear_crisis/

    This will end up eclipsing Chernobyl as the worlds worst nuclear accident. I do not expect that we will see much radioactive contaminaton here. However it is catastrophic event in Japan.

    • Greg

      Mitchbupp,
      Good information man. Thank you for sharing it here.
      Greg

    • tisktisk

      mitchbupp,how can we here in the US keep appraised of the risks and be prepared – real data, information. not government, false data

  64. MikeD

    Greg

    Thanks for the post — was interesting to read.

    I want to add that right now we have so many external threats going on, including unrest in the Middle East and north Africa and the earthquake in Japan. On the ensuing ‘flight to safety’ the dollar index hasn’t even blinked. l think it is indicative that the US$ will continue to move lower as it cannot move upwards in such uncertain times.

    For the unbelievers — watch the price of gold (silver not as much so because it is more volatile). “The market doesn’t lie, just our interpretation of it” Martin Armstrong.

    Martin Armstrong believes gold will hit lows in mid-June. When will QE2 end again?! He started mentioning mid-June as a key turning point before QE2 was even started. QE2 ending will likely give fiat currencies a boost and drive people out of gold. That’s when l’ll be buying my first lovely kilo!

    Also – Martin Armstrong views that gold will peak in 2015, so still plenty of time to ride the bull!

    • Greg

      MikeD,
      Thank you for adding to this post!
      Greg

  65. Dave

    Great site, Greg!, but I’ve been hearing of “currency meltdowns” being imminent for 5 years now.
    Sure, it will happen eventually, but our sun will collapse into a white dwarf some day too.

    • Greg

      Dave,
      The currency will collapse long before the sun my friend.
      Greg

  66. Richard

    Greg –

    I’ve been an avid reader of your blog for over a year and I too have a blog. I am so happy to report that it has grown to over ~250k unique visitors a month in the past year. BTW – it is on personal finance. Since I don’t want you to think that I am trying to capture some of your visitors, I am not listing my website.

    At the start of reading your blog, I have to admit that I didn’t agree with anything you said until I started to read your sources and understand what is really going on and now I very much agree with you.

    I hope you will take a minute to answer my below questions, but it does appear that as of this year – you appear to be answering questions less and less or leaving thanks for the comment more and more, but here goes:

    1-) Last year you wrote about how the economy was basically going to collapse this spring/early summer of 2011 and now in this post – it appears that the time frame has been extended to 2014. Now please understand that I am not judging you, but how can such a large discrepancy exist? As 2014 can than be stretched out to 2019 based on ‘New’ findings…get my point? When does it end? Which leads into #2

    2-) Do you not agree that no matter how the current economic situation is unprecedented – it is still a situation that you, your sources or anyone outside of the elite really grasps. Here is what I mean; those that control the game and make the rules will do so to their benefit. Do you really believe that the elite want to lose everything? They need to keep the ponzi scheme going and will do so by creating new ways…wars, etc to do so.

    Sincerely,
    Richard

    • Greg

      Richard,
      1) I quote John Williams from Shadowstats.com for the 2014 “outside” date for hyperinflation. Williams has been saying 2014 was the drop dead date for hyperinflation for about a year and a half now, maybe a little longer. That said, Williams has been moving the probable beginning of hyperinflation up in his last 2 “hyperinflation reports.” In his latest report, he says it could be starting now. Hyperinflation is usually a process, but in the case of the U.S, $7 trillion dollars are held outside the country. That means hyperinflation could happen in a short time frame if the U.S. dollar is sold off in a panic.

      2) I do not pretend to know what exactly will happen and when it will happen but I have said repeatedly that the one thing you can count on is some pretty high inflation. I think I’ve been right. I have also said we could have inflation and deflation at the same time. We have had deflation in housing and inflation everywhere else. I have been correct there as well. I don’t think the elite want to lose everything but what makes you think they will? Don’t you think these people have some significant gold and silver positions? I do. George Soros’ biggest holding in his hedge fund is what else?–gold. I also don’t think the elites want to lose everything, but either did the Soviets or Romans when their systems collapsed. We just had a one month deficit of $223 billion (Feb). The entire deficit of 2007 was less than $170 billion. The math says this ends sooner than later, and it will end in a full blown currency crisis.
      Congrats on your site.
      Greg

  67. maddog808

    So, should I

    1) Not pay my credit card debt
    2) Buy enough food, water, fuel for a generator to last a few months
    3) Take all money out of IRA, pay fees & taxes, and transfer to Gold & Silver
    4) Continue to get up every day & go to work

    • Greg

      Maddog808,
      These are all questions you must answer for yourself, because only you know your true financial position.
      Greg

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