Currency Meltdown Coming

By Greg Hunter’s  (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 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.

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  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.

  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


    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

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

  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.

  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, 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!!

  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

      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.

      • Hoppe

        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


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


        • 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

      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.

  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.


  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.

  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.


  14. Brian


    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.


  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.

    • 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:

        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.”

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

    • iknowbetter


      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.


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

    • markm


      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.


      • 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

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

  17. czzi

    my apology.

  18. Greg

    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.

    • markm

      Hey Greg,

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


  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.

    • 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

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

      • 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.


    • Greg

      Thanks Otter and Hoppe.

  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:

    • Greg

      Thanks Mike for the info and levity!

  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.

  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

      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.

      • Magnix

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

        Thank you very much!

        • Greg

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



  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”// If that fails to the link try,, 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