The existing dollar-centric system is not in the favor of most of the new powers of the world…and they are rapidly moving to reduce their dependence on the dollar.
If $12+ trillion is no longer needed as reserves for international settlement – where does that money go?  Well, a relatively small reduction in dollar trade replaced by Yuan, Ruble, Real, etc. (say 5%-10% over 2014) would free up $600 B to $1.2 T to move where dollars are still readily accepted…the US of A.    Typically, these dollars would be levered up (say conservatively 5x’s)…and voila, $3 trillion to $6 trillion of purchasing power is introduced to America in 2014.  Things like stocks, bonds, and Real Estate would be very positively pushed higher and higher (rents, insurance, etc. would also be unwelcomingly pushed higher as wages remain flat due to structural unemployment issues.
But let’s say in 2015 the pace of BRICS non-dollar trade continues expanding and international settlement in non-dollars grows by 10% to 20%…and 10% to 20% of dollars are no longer needed as reserves to buy oil, wheat, finance trade, etc.   This is about $1.2 trillion to $2.4 trillion formerly held reserves cleared to go looking for their home…the US$1.2 trillion to $2.4 trillion levered again very conservatively @ 5x’s is $6 trillion to $12 trillion in “hot” money looking for assets.  With just a fraction of all the inflation the US exported over the ’71-present period coming home…this creates what amounts to a hyperinflationary-monetary dollar overdose in America.
Once these things start, they create a momentum of their own and eventually a likely counter by the administration to freeze out these dollars and the likely panic this ensues both domestically and internationally.



 

Submitted by Chris Hamilton: 

By any objective measure Reserve Currencies — particularly the US dollar — are dying. The question most analysts get when discussing the reality of the US and world economic/financial situations is, if things are so dire (***see dire links below ), why doesn’t it feel like it?  If all the facts stated about $6 trillion annual (GAAP basis) US budget deficits or US government total debt and obligations in excess of $90 trillion are true, why does the system still “function”???  Social Security recipients receive checks, the military is still paid, the garbage gets picked up, and stores still have stocked shelves.  Life seems hectic but generally “normal”.  So, is there a problem at all and if so, when and how will it go from theoretical to reality?

***http://charlesbiderman.com/2014/08/04/us-is-bankrupt-89-5-trillion-in-us-liabilities-vs-82-trillion-in-household-net-worth-the-gap-is-growing-we-now-await-the-nature-of-the-cramdown/

or
***http://charlesbiderman.com/2014/07/08/america-has-adopted-the-sclerotic-european-japanese-model/

or
***http://charlesbiderman.com/2014/06/10/the-story-of-americas-economic-illiteracy-truth-hidden-in-plain-sightyet-we-choose-to-be-blind/

Commit to about 5 to 10 minutes of reading and maybe we can have a very plausible answer.

A LITTLE BACKGROUND

Following WWII, a new monetary system for international commerce and finance was implemented.  This agreement known as Bretton Woods (the location in New Jersey where the conference was held) gave the expected Allied victors the spoils and represented the World as of 1945.

CHIEF FEATURES OF THE BRETTON WOODS SYSTEM:

•    An obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to the U.S. dollar
•    The ability of the IMF (created by the Bretton Woods agreement along with many other current day acronyms) to bridge temporary imbalances of payments (IMF would loan money to nations in trouble with strings attached to ideally resolve these imbalances and keep the system functioning).

•    Address the lack of cooperation among other countries and to prevent competitive devaluation of the currencies as well (avoid countries printing money to cheapen their exports and gain advantage in trading)

•    To ensure the US did not abuse it’s privilege as the world’s de-facto currency, the US dollar would be freely convertible into gold (if the US printed an excess quantity of $’s, nations accumulating too many dollars from US trade/budget deficits could convert and retire these dollar’s into gold (gold representing a relatively fixed quantity and storage of value).

WHAT ACTUALLY TOOK PLACE:

•    1946-1959 – Growth surged while debt was flat.

•    Total US government obligations grew minimally from $269 billion to $285 billion. As a result the Debt to GDP ratio fell from 113% to 54%. In other words, the US essentially ran a balanced budget adding approximately $1 billion per year to national debt over 13 years, (about a third of a % annually…all while conducting the Marshall plan, the Korean War, and huge US infrastructure projects).  The US was the model of global economic stability and fiscal restraint.

•    1960-1975 – Debt Doubled While GDP Grew by More Than Three Times.

•    US government debt almost doubled from $285 billion to $533 billion while GDP more then tripled, from $525 billion to $1.7 trillion. In 1975 the US hit a Debt/GDP post Great Depression low of 31%.  But great forces were already set in motion that would lead us to today’s trouble…including the initiation of the Great Society in ‘65 and LBJ’s four years later theft of these surplus’ meant to cover future tax shortfalls for these programs…all to hide the true cost of the Vietnam war…all under the “Unified Budget”.  The US had put in motion the betrayal of Bretton Woods for national political purposes and the unfunded liability monster was borne.

•    1975-2014 – Debt Spiked 168 times, 16 times GDP Growth, 11 times Household Net Worth.

•    Total US government obligations grew from $533 billion to $89.5 trillion while GDP grew 10x’s $1.7 trillion to 17 trillion and Household net worth grew 15x’s $5.4 trillion to $82 trillion.  Median household income grew 3x’s from an estimated $17k to $51k annually while Real median household income barely grew 1.13x’s, from $45k to $51k annually.  Bad policy decisions of 4 decades earlier went parabolic.

Below is a chart of GDP, Household Net Worth, and Federal Treasury Debt all indexed to 1973 to visualize the growth and relationship in each over the last four decades.
http://research.stlouisfed.org/fred2/graph/?g=HJw


RAMIFICATIONS

•    The US had roughly 19,000 tons of gold as of the end of WWII and peaked in excess of 20,000 tons by 1958…but by 1971, the redemptions by nations concerned over US deficit spending and printing had reduced the US gold holdings to just over 8,000 tons and a run on the remaining gold (the convertibility of the dollar to gold being the dollars foundation of the dollar) looked likely.

•    1971 President Nixon closed the US dollars convertibility into gold…but to avoid the dollars demise, Nixon struck an agreement with Saudi Arabia (and soon after all of OPEC) that all future purchases of oil will need be conducted in US dollars (regardless the buyer or destination).  In exchange, the US promised weapons and protection to these close “allies” of the US.  Unfortunately, this policy rewarded some very un-democratic and very despotic leaders in the middle-East whom reaped the rewards with a tiny minority of their cohorts.  These trade policies typically left the populace poor and seething with anger at the US for supporting kings and dictators who ruled in complete contradiction to US founding principles and the best interests of the citizens of these nations.

•    Ultimately, this petro-dollar agreement allowed the US to run very large trade and budget deficits and export the excess dollars worldwide (through our trade/budget deficits) that would have otherwise created significant inflation within the United States.

•    This Petro-dollar agreement compelled by force of necessity a gigantic supply of dollars to be accumulated by foreign nations worldwide.

•    In fact, the estimate is that there are more than 4x’s the supply of all money in the US ($2.8 trillion, M1**) held abroad ($12+ trillion).  This includes nearly $6 trillion in foreign held US Treasury’s, $6+ trillion in formal Reserves, and the Federal Reserve estimated that 55% to 70% (and potentially in excess of 100% of M1) of all US currency was held abroad and increasing as of 2012*.  As an aside, 80% of all US currency is in $100 bills and the vast majority of these reside overseas, but foreigners also hold lesser amounts in $50’s and $20’s.  These formal and informal dollar and US Treasury bond reserves held by foreign nations allow trade in oil and other de-facto dollar denominated commodities (legal and illicit).
*http://www.federalreserve.gov/pubs/ifdp/2012/1058/ifdp1058.pdf
**M1 = the supply of money measured by all physical money, checking accounts, and liquid cash like money within the US economy

BRETTON WOODS, THE DOLLAR, & THE “BRICS”

But global power has shifted a bit since 1945 and the US has balked on its Bretton Woods pledges, the Middle-East teams with “radicals” and “revolutionaries”, and now the BRICS (Brazil, Russia, India, China, South Africa) are on a path to de-emphasize dollar usage in favor of localized, decentralized currencies in trade.  The US leans on the privilege of the dollar (established @ Bretton Woods) to maintain its lifestyle via massive $6 trillion annual (GAAP basis) deficit spending…but the dollars global dominance wanes more every day while America increasingly leans on this rickety crutch.

Today, the BRICS account for about 25 per cent of global GDP, 35 per cent of total international reserves (with China at over $4 trillion), 25 per cent of total land area and around 42 per cent of the world’s population…and BRICS affiliated nations increase these numbers significantly more.

However, despite their economic weight, the BRICS’ representation, voting power, participation in management and staff in the Bretton Woods institutions (International Monetary Fund, World Bank, World Trade Organization, and International Finance Corporation) and others like the Bank of International Settlement, displays a major deficit of ‘voice’ and influence.

As of July, the BRICS nations formally agreed on a BRICS bank funded w/ $100 billion to rival the influence and power of the IMF.  This money is to be lent to nations in need, as an alternative to the IMF (typically with US directed strings attached).  China, Brazil, Russia, and so many more are moving away from clearing their trade in dollars and instead utilizing the Yuan, the Real, the Ruble, etc.  Please note that Russia and Saudi Arabia are now the largest exporters of oil – and at least Russia is moving rapidly to settle in anything but the dollar…and the troubles in Saudi Arabia, Iran, Iraq, Libya, Syria, Ukraine, etc. are all symptomatic of this conflict for which currency(s) will be used to settle trade.

China is organizing itself and its trade partners in at least 24 separate agreements to transact in the Yuan rather than the dollar.  As of 2009, less than 1% of China’s global trade was settled in Yuan but by mid-2013, 17% of Chinese trade was being cleared in Yuan…almost entirely at the expense of the dollar.  And the trend and structure to allow far more has only accelerated throughout the BRICS.

ENOUGH – WHAT’S THE ANSWER ALREADY?

It should be very clear where this trend is going and the implications to the United States – the perennially optimistic Congressional Budget Office and like prognosticators have acknowledged the US will soon need to run even larger budget deficits in excess of $1 trillion (and that’s assuming all goes well) due to large debt loads, growing social programs, and large unfunded liabilities.  Of course the situation will only get worse because:

•    We consistently spend more cash than we take in as revenue but due to Cash-Based accounting the true nature of the deficit spending is concealed.

•    We continue adding new participants to existing entitlement programs increasing present and future unfunded liabilities…while the tax payers per social program recipient is expected to fall from 4 to 2 per recipient within a decade.

•    We add new entitlement programs (i.e. the Prescription Drug Act in 2003 and the Affordable Care Act in 2010) absent funding therefore increasing our future liabilities.

•    We incur interest expense each year on our Federal Obligation; real interest on our debt held by the public (included in item (a) above), virtual interest on our intra-governmental borrowings, and virtual interest on the present value of our unfunded liabilities).
All this will necessitate the world accept and utilize ever more dollars.  HOWEVER, the existing dollar-centric system is not in the favor of most of the new powers of the world…and they are rapidly moving to reduce their dependence on the dollar…just as the US will need foreigners to embrace it more than ever.  Rock meet hard place.

If $12+ trillion (plus the continuing growth in available dollars) is no longer needed as reserves for international settlement – where does that money go?  Well, a relatively small reduction in dollar trade replaced by Yuan, Ruble, Real, etc. (say 5%-10% over a period, say 2014) would free up $600 billion to $1.2 trillion to move where dollars are still readily accepted…the US of A.  Typically, these dollars would be levered up (say conservatively 5x’s)…and voila, $3 trillion to $6 trillion of purchasing power is introduced to America in 2014.  Things like stocks, bonds, and Real Estate would be very positively pushed higher and higher (rents, insurance, etc. would also be unwelcomingly pushed higher as wages remain flat due to structural unemployment issues…in other words, asset owners are rewarded, wage earners are punished).  The Federal Reserve’s Z1 Household Survey for 2014 would be similar to 2013’s 11+% increase in US assets by $9.5 trillion ($84.5 trillion (’12) to $94 trillion (’13))…all while household liabilities (mortgages, all loans, etc.) barely increased ($140 billion) and wages remained flat.

But let’s say in 2015 the pace of BRICS non-dollar trade continues expanding and international settlement in non-dollars grows by 10% to 20%…and 10% to 20% of dollars are no longer needed as reserves to buy oil, wheat, finance trade, etc. etc.  This is about $1.2 trillion to $2.4 trillion formerly held reserves cleared to go looking for their home…the US.  $1.2 trillion to $2.4 trillion levered again very conservatively @ 5x’s (or 20% cash down) is $6 trillion to $12 trillion in “hot” money looking for assets.  With just a fraction of all the inflation the US exported over the ’71-present period coming home…this creates what amounts to a hyper-monetary dollar overdose in America.

Foreign holders of US money chasing assets in America where dollars are readily accepted.  And of course, once these things start, they create a momentum of their own and eventually a likely counter by the administration to freeze out these dollars and the likely panic this ensues both domestically and internationally.

IMPLICATIONS

The minority of Americans with assets see their value rise but the majority will get much poorer…those dependent on wages and social programs (generally younger, with families, retirees living on SS, etc.) absent assets are made dramatically poorer (wages stagnant while costs rise…rent, food, insurance, school, fuel, etc.).  The economy suffers as consumers lose ground and inequality runs rampant.  How it plays out from there is impossible to know as supply and demand implications are met with 2nd derivative government reactions and on and on and on.  Beyond that, it’s all just plain guesses with little historical precedence to guide us.

Of course there are many steps and actions that could be taken to acknowledge our challenges and collectively address them through shared sacrifice and a long term restructuring of our economy.  But the 4+ decade trend of fraudulent accounting, financialization, and, well, like a hundred other trends that need be reversed seem unlikely to be voluntarily addressed.  Prepare for the solution to be involuntarily applied in a time and manner not of our choosing.

570x400_Hawksbill Turtle

  1. What a joke? there is no mega amount of money floating around to be invested by the average American. The last big market crash and all the way back to 2001 was only to make the US government richer an the American people poorer. All the new bail out money went to mega banks laundard  there times a factor of 10. Then it was loaned to the US gov at ultra low interest rates. And the rest of the story the money is used to fund the NWO. There is not very much inflation because the banks hardly ever lent the money to the American people. We are talking close to 20 trillion dollars. And with this actually being loaned out for real. We would surpass china 15% 20% growth per year. The only way the stock market is so high right now is that the gov probably the fed reserve is investing there own money in it. But my opinion here. As soon as the people get wise they will be taking there money out of it at a very fast rate. And this will cause inflation at some point. An the government will then sell there investment money. An the market has a major sell off.

  2. This comes as a surprise…?   The people deserve the government they get.  This was true in the days of Thomas Jefferson and even more true today.  The only way to fix this mess is a revolution; ridding ourselves of the Fed, the Wall Street organized crime ring, the fascist elite and government they have bought and paid for.  Then restore our constitution, and allow the people to elect supreme court justices with 4yr term limits.  What we now have are these justices legislating from the bench. It certainly defeats the purpose of their existence in the first place!
     
    Government has completely gotten out of control at ALL levels; from local, state, and federal levels.  Law enforcement is beginning to look more and more like the Nazi SS AND acting in the same manner.

    Either we We the People knock off this apathy OR, soon enough, you WILL become the property of someone else.  Your call!

  3. T$UNAMI … but not until the Tide goes out right to the shelf (Deflation).
     
    The story that gets lost in all the Deflation/Inflation talk however is the CAPITAL DESTRUCTION (Kaboom!) of all Middle Class savings in retirement funds, and mom-and-pop investments etc… All of the money printing has only just filled statistical holes that already appeared in 2008, but all those in the Middle Class who lost out already are still in the gutter.  The true story is a massive wealth transfer from the Middle Class (Consumer Masses) to a very small clique of off-shore bankers and of course the Govt. If the consumers don’t have the $$$ then this is when the base economy goes into implosion, and it has been happening quicker and quicker since 2008.
     
    As the off-shore $$$ wash back on shore they will send the stock market parabolic if in fact it hasn’t collapsed by the time the Tsunami hits. And if you’re not putting your $$ into Stocks then what are you buying? Overpriced housing for renters that don’t exist because most young people are living with their parents/grand-parents because wages have not increased and moderately well paying jobs have evaporated? Growth has stalled in most areas and gone backwards in most … heck the Govt is even tightening its belt so you know times must be super tough, even dire …. am I wrong? LOL.
     
    So I guess people buy T-Bonds as a last resort, even though they are yielding next to nothing and the rates cannot rise above what they are before the whole economy implodes even quicker … so where do you put your $$?
     
    I say if you don’t already have your Gold and Silver and long store food etc… they you are screwed. Better hurry up and get with the prep or it will be too late. There are going to be a heck of a lot of pissed off zombies prowling around when the cool aid stops flowing, and prices go to-da-mooooooooon!!! … except precious metals prices of course which will always be undervalued as long as people are asking Big Brother for the Price. Bob Barker says “The Price is Wrong!”

  4. @WillNotBeASlave   accurate, painfully accurate
    A government that is ‘rich’ enough to make everyone feel wealthy, is strong enough to impoverish everyone.
    The wealthiest man is this new age Babylon is the one who can stand back, out of the rich/poor  dialectical moshpit of government largess, satisfied they’ve dont the right thing to protect themselves and their family.

    • @proverbs1616:
      Proverbs is a lost soul. Supporting the same country that is leading him down the road of ruin is akin to the Stockholm Syndrome. Russia and China are the last 2 entities fighting the new world order. Sympathy and support for Ukraine is misplaced. Are you not aware of Operation Gladio ? 9-11 et all ? Your USA IS the world’s most dangerous parasite and murderer. Forcing all countries to use US dollars by methods of intimidation. How many governments were taken out because they simply wanted to choose their own destiny, but big brother wouldn’t allow it. How about Western educated Mosidec in Iran back in 1954. He was murdered so the US could install the Shah of
      Iran so the US could get control of its’ oil. Same thing happened in Russia when the wall came down. British Petroleum and Exxon got control of oil fieds. And guess what ? The people got no benefit from it. The people were robbed … just like what the IMF did in Ukraine. They doubled the price for water, halved the pensions for the elderly and started killing unarmed civilians. Not to mention the gold they stole in excahnge for IMF dollars that went to no one but their paid cronies. They are known NAZI’s and you support that? Russia tried to send a convoy  of humanitarian aid with the support of the Red Cross and Ukraine blocked that move ? You are a fool proverbs, are you aware of Victoria Nuland’s taped conversation? Or that bitch Tymoshenko who called for the Nuclear anihilation of Russia? These aren’t games you fool, the price to be paid will be paid by all humans everywhere. Do you support Obama who props up terrorist organizations in Syria who go out and murder Christians ? How about support for Al Quaeda ? who were formerly the Mujuhadeen in AFghanistan? What do you support Proverbs ? A country who now stigmatizes anyone with old fashion values ? Are you even aware that in the last several years, Russia has had over 4000 Christian churches start up? Or now Russia is looking to criminalize GMO food a a way to protect its’ people from poison? Or how about that law intended to protect children from undue influence regarding homosexuality and so on? You ever notice how Eastern people are smarter than most Canadians and AmeriKans ? No fluoride in the water. Yes that’s right, Russia is protecting its’ citizens and I can assure you, the US gov, the banks, the military industrial complex, big pharma the fortune 500 companies are not working for your benefit. They are working for their own benefit. I suggest you look at the facts from a panacea perspective, stand back and then come to some conclusion, because at this time you sound like a sheep being led to the slaughter.

    • …and we see the EXACT SAME THING, (on an official level, no less!!!) Going on here in the USA, under the guise of the NEA in our schools. The bastardized relationship between this so called “teachers union” and the RE-Tards (regressive lib-tards) who are NOW IN CHARGE OF THE White House, the Senate, and all of the cabinet positions, plus the NSA, and of course KLUMMAC has a very active army of internet Trolls, it is obvious to anyone who looks at the many “conservative bbs & message boards” that are out there. Anyone who denies this, or belies their existence by OMISSION is likely one of them. 
       
      Don’t disappoint me, Pro old friend. You know I am right, and I know your statement above is too. Both sides of the same coin. 
      All govt’s do it, but that does not make it right for some and wrong for others! 

    • @Proverbs1616
      You are my favorite Parrot on any blog anywhere.
      You never cease to make me laugh, so at least you have some value.
       
      If you ever take off your blinkers and soak in the rest of the points of view in the world I believe the reality check would send you into a severe shock, it might even be fatal … like a Paradigm Greenhouse being shattered by an airstrike.

  5. Prior to my retirement, I attempted to explain the general premise of this article to several of my fellow workers during lunch and coffee breaks with no avail.  On occasion one are two of them would even become irritated that I would suggest any investments other than the rigged markets.  Due to a continuous drum beat of “401K, IRA and Treasuries” the implant has been successfully completed as most people cannot believe that suddenly without warning all their years of savings could and sadly will be wiped out.  Constitutional monies have been effectively erased from the American mental process by the banking elite and only after waking up one morning and realizing they cannot pull $20 out of a ATM will reality hit home.  At this point it will be to late as their future will be fixed!  For the stackers the challenge will be to survive the Zombie hoards who will be hungry, diseased and desperate to the point of survival at any cost.  All the Rambo trash talk is just that as one can look at Ferguson today as a template of the future. 

    • @Minutia
      Wait until they lose all their investment$ in the next crash, they will hate you even more. Nothing makes losers feel a little better than when they shoot the messenger.
      What ever you do don’t say ‘I told you so’ to them, they will rat you out to the Feds as one of those ‘metal holding hoarders’ that they would have been recently indoctrinated to scape goat the crash on… it’ll be all your fault… the hoarders did it!

  6. @minutia    I’ll use ‘militia’ as your name for a moment.
    the collapse could come in very short order. The people you talk about are sunk so deeply into the Normalcy and Confirmation Bias they will die.  There is virtually no chance they will survive.  Only those in that group who are like minded but hold their tongues for fear that they will be ridiculed by their associated have a chance of surviving.
    I don’t think that we will have a Mad Max scenario.  Complex systems like the US fail in complex manners. But we have vulnerabilities that could overwhelm us in a nano second with an EMP or cyber attack that shuts down everything, in minute or at most a day, from the comforts of the 21st century into the 17th Century.  If you prepare, prepare for entry into the era of Whale Oil, horse and buggy and mud up to your ankles.  And that’s the cities.  The countryside will be a bit more bucolic but dangerous nontheless.
    Imagine Ferguson Mo multiplied 20 times, with the militarized police and national guards pointing in on the protestors, rifles firing.  Ferguson is not over by a long shot
    Imagine the Bundys and Bunkerville, staring down the barrels of hundreds or more uparmored state police with tanks and automatic weapons, backed by the Military Industrial Complex that needs war, profits and high body counts.
    Imagine the fifth column of MS 13 gangbangers being given full rein to take turf and stake their claims to any town or city they want to conquer, aided and abetted by a passive-aggressive federal government complicit in the  final overthrown of the Republic.
    Imagine the illegal aliens and others who’ve come to this country, bringing their unlimited wants and needs to the government, demanding their piece of the good life—-or else.
    Imagine a muslim fifth column, in an unholy alliance with the federal government, activating their cells.
    What sort of weapons will they carry to their jihad?
    The sad part of this whole paradigm is that the black people in Ferguson and the millions of others who live in poverty in towns and  cities where they have no stake in the community whatsoever, are being used by the power brokers and puppet masters to manipulate them to riot and burn, thinking that actually does something positive for their cause because of the images shown throughout the world. All it does is given critical intelligence to the overlords as to how to deal with them, assisting their war planners with the tactics and strategies to overwhelm them in the next riot.  
    Marching, protesting, throwing bottles and rocks, cursing and yelling at the clouds of tear gas, the flash bang grenades and volleys of rubber bullets will accomplish little except give the militarized Gestapo goon squads the means to smash them the next time they take to the streets. Note the ebb and flow of how the police and national guard are working the crowds to see what sort of tactics are the most effective.  When you watcg those battles think like Sun Tsu.  
    Something that most people do not take into account is that America is a geographically huge country.  Unlike small countries in eastern Europe, central America, the Middle and Far east, is that this country can absorb huge damage.  It’s already been damaged by the explicit actions of the federal and state governments, in league with the banksters and corrupt politicians to tear down what was once a great country. It will take a mighty strong war in this country to fully take it down. Our natural allies are the people in the streets. But they must fight back or they will fail.  Gandhi won’t cut it here.  The Federales have bared their teeth.
    These Marxists, communists, Musloid fascists and Progressive know only one thing
    Consummate and complete destruction of anything good, decent, righteous and liberty filled.
    They are professional haters and destroyers, nihists and devil loving proto humans.
    they’ve spent decades and centuries destroying everything in their path.  Their designs are intergenerational
    We, the people, the stalwarts and militia must RIDE OUT.  We cannot sit back passive,  huddling behind our doors, watching a town or city or ranch or land owner be destroyed by the elites and oligarchs,hoping they won’t hit us next. That is playing defense.  
    Mark my word.  We cannot play defense.  We are losing that battle.  We cannot play bob and weave, waiting for a chance to  sucker punch and take down the enemy.  
    Nothing is ever won by playing defense because offensive takes the day and the high ground
    Rest assured that we will be required to go out, take up arms, and not just defend our homes against the domestic invaders.  We will be forced to take the battle to the enemy or the enemy will win
    Apolgies for being so gloomy.  I just don’t see this ending well.
     

    • Even in a football game, when your team is on DEFENSE, the goal is to go on OFFENSE. 
      Grabbing the ball IMMEDIATELY makes a defensive player a running back on OFFENSE. 
       
      Great analogy AGX! We CANNOT stay on Defense. They will destroy all the “sit & wait” folks. 
      BALLOTS, NOT BULLETS, but I’m loading up just in case!  :D

    • @AGXIIK
      If you had decided to be a Novel writer in the 80′s or 90′s you would have made a killing … now you just simply scare the cr*p out of everyone because it no longer seems like fiction.
      No wonder Harry Potter is so popular in the 21st Century … Harry has a wand that can alter reality, and I guess that is comforting for most, but AGXIIK’s spiels still scare the cr*p out of people … there’s no wand … no sugar coating … like an Arctic cold bucket of ice water in the face :P … personally I still prefer the cold water in the face to a wand up my anus, so keep up the good work :)
       
      I’m with DanDaley … Hoka hey, Hoka hey

    • @undeRGRönd
       
      Thank you, sir!  :-)
       
      This is what happens to fence-sitters quite often, as well as those who try to stay in the middle of the road.  Things just seem to come their way from all sides.  Might be better to find a good out of the way position, fortify the heck out of it, and then hang tough.
       

    • @Ed_B >>>Might be better to find a good out of the way position, fortify the heck out of it, and then hang tough.
      I was thinking the same, but when I realized the only safe place might be the Moon, and rockets are kind of expensive I decided that dreaming was really quite dangerous. So I have decided that the mobile fortress is the way to go. Anyone know of any ex military submarine for sale? I will pay in borrowed dollars … LOL … creditors can catch me if they can!!! I also am taking applications for an engine room guy, we won’t need a navigator because we are not going anywhere in particular except nowhere LOL.

    • @WillNotBeASlave
       
      “I was thinking the same, but when I realized the only safe place might be the Moon… “
       
      It might be… but, then again, meteors DO hit the moon from time to time and it has no atmosphere to burn them up before impact.  Just as in life, there are no guarantees in any of this.  As an old fellow once said, “You wanna guarantee?  Buy a toaster”… because that’s about the only way to get one.  ;-)
       
      “So I have decided that the mobile fortress is the way to go.”
       
      That could work as long as the fuel holds out.
       
      A submarine!  LOL!  That might be just the thing… cruising the depths silently on battery power, harvesting plentiful seafood from the shallow seas, and otherwise just minding your own business while keeping out of others’ business.  Then again, putting a torpedo into some banksters yachts and they watching when the sharks arrive could provide some excellent entertainment.  Making videos of all that should be real popular on You Tubs.  That idea has some real appeal!  :-D
       
      “… we won’t need a navigator because we are not going anywhere in particular except nowhere LOL.”
       
      Nope, you gotta have a navigator.  It’s really embarrassing when you pull up to a dock somewhere and have to ask the locals where you are!  ;-)
       

  7. a submarine to nowhere   I feel a limerick coming on
     
    A blogger WillNotBeASlave
    We all knew him as Dave
    His greatest Dream
    A surplus submarine
    His first mate a WAC or a WAVE
     
    He needed an engine room guy
    And a loan so that he could buy
    This submersible craft
    With a fore and an aft
    That looked just the same to my eye
     
    I think we will it The Venus
    An inside joke just between us
    This limerick’s not bawdy
    It’s clean and not naughty
    Don’t call it the 300 ft *****
     
    WillNot’s quest for the moon
    Won’t happen any time soon
    It’s water mechanics
    Aren’t aerodynamics
    And NASA’s booked until June
     
     
     

    • A polymath you are indeed. From paint can stoves to limericks, the A-Z will come in handy I am sure when SHTF, and of course humor will be all the more desirable when all of the zombies realize that the cool aid has run out. Sometimes I think that we preppers will be the only ones left with a partial sense of humor: I never liked the overly materialist world to start with, but the zombies will be utterly devastated when the truth hits them smack in the face, whilst we all accepted the truth years ago.

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