Wednesday, September 14, 2011

What is Going to Happen? - Excerpt from The Last Domino

Throughout this book, I am going to make reference to stores being closed, gas stations empty and panicking people. I’ve been asked to clarify these statements so that people can understand just how serious this situation is. Here is my humble and hopefully incorrect assessment.

We face two major problems on our horizon, the first being hyper-inflation due to a decreased valuation of our dollar. The second is the total collapse of the dollar which will be the result of the first along with several other factors. Many of the books on this subject go into exact detail on the ‘why’ of the collapse and they are very good. But there is no practical ‘now what’ for people like you and me, who don’t have the extra resources to invest in silver and gold futures.

When hyper-inflation hits, each dollar you spend will be worth less than it was when you got it. You could in reality see a $12.00 loaf of bread and $18 per gallon milk. Hyper inflation means that each dollar we pay back to China is worth less than the amount we borrowed from them. Let’s put it this way. You borrowed $1000 from your neighbor, Mr. Chinaman.

Each dollar you pay him back in interest decreases in value, partly because you are using a Xerox machine to print the money needed to pay him back, so when you finally repay your neighbor the original $1000 you borrowed, it is now worth $10. Your neighbor won’t be happy.

Each year China has been buying bonds that fund our government’s spending sprees. Last year, China and Russia decided to stop trading in the US Dollar. Just last week, China started investing in funds that increase when the dollar tanks. Our biggest debtor is betting against us. The hyper-inflation will make it near impossible to purchase food, gas, or pay bills. Sadly, wages do not keep up with hyper-inflation. So as you are making the same amount, your wages are unable to buy half of what they bought last year.

When the strain is too much, and now that Brazil, India and South Africa have joined Russia, China and now Mexico and Thailand in refusing to deal with the US Dollar, it will finally collapse in worthlessness. It’s happened in other countries, like Germany after World War I where workers had to go to the store at lunchtime before the prices rose in the evening.

This hyper-inflation will result in food shortages as it will be next to impossible for stores to afford the inflated prices on shipping and labor in addition to the prices on the actual food. Hyper inflation will lead to the final collapse, but may hang around for a while before the actual collapse. Wages will not increase as a result of hyper inflation, so you will have multitudes of people who simply cannot afford food.

So, after the dollar collapses, it would be as if every employer approached every employee and informed them that their pay would now be in Monopoly money. For those of you liberals, you cannot spend Monopoly money. Ask yourself this, how many workers would continue to show up to work? How many cashiers, assistants, or managers would be on hand at the grocery stores so that they could earn a whopping paycheck worth zero dollars.

Sure, there will be some business owners desperately trying to protect their merchandise. There will be the highly dedicated doctors, policemen and others who will still stay on duty, I hope. Most people will panic. Most people will not be prepared for the chaos that will ensue. In desperation to feed their families, or anger because all the work they’ve done is reduced to being worthless, they will steal food. They will riot. It will be Hurricane Katrina a thousand fold.

This outcome is the one sought by Frances Fox Piven, George Soros and the SEIU leader Stephen Lerner. They have said as much and they are not shy about it. They need the chaos, they need to collapse the economy and sadly, for the first time in history, we have a President who agrees with their philosophy. Together they are intentionally trying to collapse the American economy so that they can put in a Socialist Utopia that has never worked anywhere else.

I hope it doesn’t happen. But I don’t see any avoiding it. I am just hoping to have this second book released before the collapse occurs. That is what is going to happen, and that is what you have to be prepared for.

I am truly glad I had the time to get this book completed. And I still hope I am wrong.

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