What To Expect When the Economy Collapses

Times are tough. The U.S. dollar is losing ground as an acceptable currency for International trade. But then, so are most national currencies, with the single exception of the Chinese yuan, which is being touted in the U.N. as a replacement for the dollar as the reserve currency (the "reserve currency" is that currency which is used for International trade.).

Why is the dollar being devalued? Among the many reasons, two reasons immediately jump out at even the mentally insufficient in Washington D.C. (who choose to ignore it).
1. Our national debt is moving ever-upward on the express elevator.
2. Our government believes our economic salvation must take the form of:
a. borrowing more money from China (which will immediately be consumed by U.S. "foreign aid") - thereby deepening our own debt
b. printing more dollars - thereby reducing the buying power of the few dollars we may have because there is insufficient negotiable natural resource (gold, silver, diamonds, oil, etc) behind them.

As of today, our national debt tops 15 trillion dollars. That means that every man, woman and child in the USA "owes" over $48,000 to the government. From a per taxpayer standpoint, the amount skyrockets to more than $134,000 per taxpayer. The per taxpayer figure is the only realistic one, since the government gets its money solely from the taxpayers. With an average annual income of $26,364, each U.S. taxpayer would have to forfeit 100% of his/her wages for 5.08 years to eliminate their personal portion of the national debt... if the deficit were to freeze at todays level! Unfortunately, the government will continue to spend like they really have money, and in 5.08 years the national debt will - in all likelihood - have increased! This is a serious "doom-and-gloom" scenario for American workers, with no relief in sight for not just several, but many generations.

What can we expect in terms of practical effects from this doom-and-gloom scenario? As jobs become even more scarce and the unemployment rate continues its upward climb, times will become even more desperate. There is an axiom (of indeterminate age) that states, "Desperate times call for desperate measures", and it is generally accepted as a truism. As civilized as we might like to think of ourselves, human beings still have a survival instinct, and when it moves into the forefront we will then (to paraphrase an old Chinese saying) certainly "live (or die) in interesting times".

We can expect to witness the following behaviors - in no particular order:
Extreme pressure will be brought to bear upon the elected officials of the federal government to resolve our financial calamity. This pressure will experienced by respective governments world-wide, since the financial crisis is currently projected to be global in scale.
As unemployment grows, and food becomes scarce, outrageously expensive, or both, and people become unable to provide for their families, we can expect severe civil unrest, rioting, and a tremendous increase in criminal behaviors. Looting, assaults, burglaries, armed robberies and other forms of theft, will become so commonplace that law enforcement agencies will be overwhelmed. The "law of the land" will be "the survival of the fittest". Everyone - outside of the protected elite (government officials, corporate executives, the very wealthy, etc) - will become potential victims, and we will probably be further victimized by the imposition of martial law in an attempt to preserve whatever semblance of "peace" there may be.
The exchange system will probably shift to the barter system, since the dollar will have little or no value. Food (and any means by which to acquire food) will be the primary commodities. Farmers will be forced to guard their fields, and ranchers will have to protect their herds and flocks. Food distribution centers and detention centers may be established by FEMA with the use of U.S. Army "Internment/Resettlement Specialists" (31E). The 31Echo specialists "are primarily responsible for day-to-day operations in a military confinement/correctional facility or detention/internment facility. I/R Specialists provide rehabilitative, health, welfare, and security to U.S. military prisoners within a confinement or correctional facility; conduct inspections; prepare written reports; and coordinate activities of prisoners/internees and staff personnel." The I/R specialty also includes "Provide command and control, staff planning, administration/logistical services, and custody/control for the operation of an Enemy Prisoner of War/Civilian Internee (EPW/CI) camp" and "command and control, staff planning, administration/logistical services, and custody/control for the operation of detention facility or the operation of a displaced civilian (DC) resettlement facility". (the red was added by me for emphasis - for details see: http://www.goarmy.com/JobDetail.do?id=292 .

The potential for a very ugly future does exist. Whether or not it becomes a reality depends upon so many variables that I can't even begin to list them. Although doom-and-gloom is not my favorite subject, reality is. This is simply the sharing of my reality as I see the world condition today. Another part of my reality is that it is better to be aware of potential dangers than to be surprised by their unexpected occurrence.

I truly hope and pray that none of the preceding scenario ever happens... but I won't be taken by surprise if it does.

Government Control Is Not Needed Where Obama Wants It!!

Your government wants to stick it's bureaucratic nose into everything that affects average, working-class people. Everything except those areas it should be investigating and regulating more strictly! For example...

"NEW YORK (CNNMoney.com) -- Exxon Mobil Corp. reported quarterly earnings Thursday that easily beat analysts' expectations on higher crude prices.

The world's largest public energy company reported net income of $7.56 billion, or $1.60 a share, in the second quarter, up 91% from $3.95 billion, or 81 cents a share, in the same period in 2009.

Earnings for the first half of 2010, excluding special items, were $13.9 billion, up 60% over the first half of 2009." (Emphases added)

Yes, my friends, that is Billion with a capital "B". The concept of a million of anything is difficult for most of us to envision, and the term billion just boggles the mind. Maybe this will help get it into perspective - a billion minutes ago, Christ was alive. Here's a picture showing the relationship between one thousand, one million and one billion -

There is a 6" difference between the million point and the billion point on this line. (A trillion [a figure our government loves to throw at us] would be marked 500 feet to the right of the billion mark.) Now, think of that number in terms of dollars - the dollars you spend at the gas pump, the dollars you spend for groceries, the dollars you spend for clothing... and your tax dollars!

Diesel fuel, the least refined and least expensive to produce, currently hovers at around $4 per gallon. More than premium gasoline! Do you still wonder why the cost of "goods and services" is skyrocketing upward? Understand that goods do not magically appear in Wal-Mart at the beginning of each business day, nor do groceries breed on the shelves of your local Kroger or Safeway grocery stores when the lights go out. These items are transported to every retail store in our country by diesel-fueled delivery vehicles, whether they be 18-wheelers, railroad trains, or a combination. The oil companies have taken our nation hostage! And your government has not done - or even said - a thing about it. It's areas like this that we need government mandated price caps! The workers of this nation need gasoline to get to and from their place of employment in order to earn a living so they can afford to buy those goods and services. Gasoline now costs between $3.25 and $3.65 per gallon and the price is increasing almost daily! The excuses used by big oil are "There's unrest in Saudi Arabia", "The middle east crisis is driving our costs up", and "It's the Yemeni problem". What's wrong with this picture? The problem is Big Oil's corporate GREED! Individually, or even collectively, We The People can do next to nothing about it directly. Government intervention mandating price caps is the only solution.

How do we get that done? Write, email, or telephone your elected Congressional Representatives - including Senators - and tell them that We The People need relief from the price gouging oil corporations economy-crushing GREED!

(Because our national economy is "in the dumper", China is campaigning at the U.N. to have the U.S. dollar replaced by the Chinese yuan as the "reserve currency". For those of you who may not know exactly what the "reserve currency" is, it is the global currency of international trade. If China is successful in their bid, it will further diminish the U.S. in the eyes of "the global community".)

I'm Gil, and I approved this blog!

"May You Live In Interesting Times" - ancient Chinese curse

Interesting times, indeed! Any point in time is "interesting" for somebody... whether they are struggling for their life, or fly fishing in a quiet stream. Interesting is a relative term - relative to humdrum or boring. Our present time is one I find quite interesting.

Among those things of interest to me are the troubles in the middle East, the world-wide recession, the election of a socialist as the President of the United States and his appointment of various incompetents to Cabinet posts, "swine flu"/H1N1 virus, what is essentially the nationalization of two-thirds of the US automotive industry and many of our financial institutions, and the preference a 2" long fish is given over the jobs of 80,000 farm workers - causing an immediate and critical shortage of American grown vegetables from California. Let's look at them one-by-one.

The middle East of which I write consists primarily of Afghanistan, Iran, Iraq, Israel, Pakistan and all the other, relatively calm, "flyover" countries in between.

Afghanistan has its own unique set of problems. For decades (perhaps centuries) Afghanistan's main cash crop has been heroin, and the leadership had been primarily Islamic fundamentalists. The paradox is that, even in a major narcotic producing country such as Afghanistan, drug abuse is illegal. And punishments for breaking their drug laws are much more Draconian than our own. Death is about as severe as a penalty can... get short of perhaps death by torture. Add to that problem a heavy influx of Western military personnel, bringing with them a perception (real or not) of invasion, and a reactive, militant Taliban, and you have a fine recipe for chaos! The intelligent thing for the Taliban to do? Sit quietly and do nothing. Sooner than later, the Western forces will depart, and then Aghanistan can go back to business as usual. Turn that blind eye toward the heroin poppy crops and drug "smuggling" (nudge-nudge, wink-wink), reinstate Sharia law, subjugate females again ... all the fun things of Islam.

Iraq gets the same recommendation: cool your heels until the West leaves, then complete your struggle for control against the democratically elected government. They will quickly fold, and you win! Why fight against a multinational force with superior technology, weaponry, and training. You have something they don't... the desire to be there! Leave them alone and they will get bored and go back to wherever they came from. They are not there to take over your country. Besides... who but you would want it? I see it as nothing more than a gigantic litter box!

Pakistan... what can I say about Pakistan? They're having some internal strife, caused by the Taliban in the Swat valley. They also seem to have the motivation, and the forces and necessary logistics ability, to deal with that strife. The West should just sit back and watch from afar, as the situation there develops. Let the Pakistanis decide their own destiny. If the government asks for assistance perhaps provide logistical support, but no "boots on the ground".

The real problem in the middle East is Iran. Perhaps not the people of Iran, but the mentally deranged leadership of Iran. Their "elected" president, Mahmoud Ahmadinejad, and their religous leader - who is the actual power in Iran - Ayatollah Ali Khamenei, are two nuts from the same tree. First of all, they believe that Israel should be "wiped from the face of the Earth", which is a position that sounds pretty much non-negotiable right now. It's almost as if "Kill the Jews, and Death to The Great Satan (that's the USA)" has become their national motto. Add to that attitude, the fact that today, May 20th 2009, Iran announced the successful launch of a Sajjil-2 missile with approximately a 1,200-1,550 mile (2000-2500km) range, which can easily reach into Israel. Now, throw in Iran's unmonitored, super-secret nuclear program, and Israel has a genuine reason for concern. In the past, the surrounding Arab nations have discovered that Israel does not like surprises from outside their country. In fact, when it comes time for somebody to jump up and yell, "SURPRISE!!", it's the Israelis who prefer that role. It is not outside the realm of belief that, for some time, Israel has been busying themselves developing strategies to deal with just that type of situation before it becomes a problem for them. Can you say preemptive strike? History has shown that the Israelis don't start trouble where there is none - they specialize in ending those troubles!

And, speaking of surprises... did the world-wide recession come as a surprise to you? It caught me off-guard, for sure. Luckily, I have no personal investments, or at least no direct personal investments to watch evaporate. I'm sure my credit union has some going with my money, but I still feel that it's relatively safe, even though my money may be inflated more than the Goodyear blimp. For decades, The USA has been the world's largest consumer of those things we call "consumables". We have done our part! Our consuming of consumables made consumption by lesser consumers look miserly. So what happened? Unfortunately, I do not have even a tenuous grasp of international economics, so I can't make an educated guess. What I can do is provide this quote attributed to Abraham Lincoln:

1. You cannot bring about prosperity by discouraging thrift.

2. You cannot strengthen the weak by weakening the strong.

3. You cannot help small men up by tearing big men down.

4. You cannot help the poor by destroying the rich.
5. You cannot lift the wage earner up by pulling the wage payer down.
6. You cannot keep out of trouble by spending more than your income.

7. You cannot further the brotherhood of man by inciting class hatred.
8. You cannot establish sound social security on borrowed money.

9. You cannot build character and courage by taking away a man's initiative and independence.
10. You cannot help men permanently by doing for them, what they could and should do for themselves.

Abraham Lincoln

Since the 1940s these “Ten Points” attributed to Lincoln have been widely reprinted. They have appeared in such places as magazines, Christmas cards, and the Congressional Record. However, the Library of Congress and Lincoln scholars believe that any connection made between Lincoln and the “Ten Points” is spurious. On the other hand, they are "good ol' homespun, common sense" statements - the type for which Lincoln was known.

As for the President and his Cabinet appointments - what is, is! Sadly, the American people must now live (hopefully) with it. I find Obama's apparent lack of birth certification interesting...

"Swine flu"... SCARY! Well worth being aware of, but not worth putting oneself into panic-overdrive. It's interesting that there have been relatively few fatalities from the H1N1.

Nationalizing private industry and financial institutions is socialism at its finest! Next will be the unsuccessful attempts at firearms confiscation, control of food supplies by banning home gardens, rationing of fuels, national health care, etc. It will be interesting to see just how all that plays out.

Eliminating the critical irrigation system to the largest single produce-growing area of our country - California - to save a 2" long freshwater smelt! However, smelt are not naturally freshwater fish, but were introduced into the freshwater ecosystem by man! Isn't that interesting? Somebody needs to start a "SAVE THE HUMANS" campaign!

There is always a chance I could be wrong about this, but we certainly do live in "interesting times".