Financial Tornado 2010 - The Day the Dollar Died

Ordinary citizens worked at their jobs, sent their children to school and worried about their grades, maneuvered for promotions and rejoiced when they got them, and generally expected things to get better than the year before, for it was the American Way. You work hard, pay your taxes, live a good life, stay out of trouble with the law and all is well.

2009 ushered in a new President who rode the wave of 'change'. The people wanted less government and transparency. They wanted the politicians to clean up their porkbellied wild spending from the Bush days and they thought the young Obama was their man. Instead, we got a inexperienced idealist who is failing everywhere: foreign policy, domestic initiatives, and most importantly, in forging connections with the American people. The promises of his campaign were lies, he's a phony, knows nothing about economics, and is historically illiterate and woefully small minded for the size of the task. He has enlisted advisors for every aspect of his administration and lets the unelected run the country. He has no clue to the long term effects of having a majority vote for any bill, ignoring the wisdom of those who oppose him and the wishes of the people, the citizens. He closes his first year with false stimulation, with a huge Healthcare bill under his belt and Global Cap and Trade well on it's way, blameing the previous presidents for the state of the economy.

2010 will be the year of change....these changes will take everyone by surprise.

There will be a Run on the U.S. Dollar ....Soon - Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that's not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Foreign countries own over 44% of our debt. The USA is a net debtor to the world.

We have seen the storm brewing for some time now. There are big banks of clouds building on the horizon. Picture a big funnel dropping down out of the clouds. Swirling round and round is WallStreet,the Fed, Banks, Agriculture, Congress, Imports, Exports, Oil, and the US Dollar.
The funnel is swirling and growing everyday, swirling and making a fine whippet of a tail, just about to hit ground. When the Financial Tornado hits, it will zig-zag through every state, county and town. No person will go unharmed.

The tornado hits soil....The Dollar is Dead.
With the currency goes many of the lifetime plans of average citizens, also the American Way.

Most Citizens are taken by surprise by the financial tornado. Those who didn't plan ahead for any type of disaster, natural or otherwise, are suddenly desperate.

The Banks are closed, credit cards and atms are worthless, as are all paper investments:401K's, pensions, savings, stocks, bonds and insurance policies. Citizens will scramble to get rid of their currency on hand, exchanging it for any hard asset that has a seller willing to accept cash, even at a much inflated price. Food will be the most desirable commodity, water will soon follow.

Survivors of the Great Depression and those who 'think' it will be similar, will be shocked at how events turn out this time around.

"People just didn't understand what was happening. All the economic theory they had been taught didn't provide for the phenomenon. There was a feeling of utter dependence on anonymous powers -- almost as a primitive people believed in magic -- that somebody must be in the know, and that this small group of 'somebodies' must be a conspiracy."

"The cities were still there, the houses not yet bombed and in ruins, but the victims were millions of people. They had lost their fortunes, their savings; they were dazed and inflation-shocked and did not understand how it had happened to them and who the foe was who had defeated them. Yet they had lost their self-assurance, their feeling that they themselves could be the masters of their own lives if only they worked hard enough; and lost, too, were the old values of morals, of ethics, of decency."

No Fema or RedCross to the rescue.
Companies, businesses, factories and all manufacturing will close
until they can figure out a way to pay their employees.
No money=No heat, electricity, phone,cable and other infrastructure.
Moms and Dads will do the unthinkable to keep their children fed.
No SS checks for the elderly or Welfare for the poor.
People who had worked a lifetime found that their valuables would not buy one cup of coffee.
The law-abiding citizens will crumbled into petty thievery. Riots and looting, and drastic elimination of the population will occur for both good people and bad.
Gasoline is siphoned from cars until there is no more.
Hospitals and pharmacies will be emptied of all drugs and medicines, patients as well.
Trucking will end and grocery stores will not be restocked.
Farmers will not be able to plant or harvest.
There will be no laws or anyone to enforce the old ones.

Those families who survive the first month, will have received the education of a full combat veteran. America will be a 3rd world country and surviving will only be possible for those willing to adapt. Those who stay morally just and are willing to work harder than they ever have in their lives will survive.

There will be roaming criminals and gangs of lazy entitled people who think their survival is more important than yours. True survivors will walk softly and carry a big stick. Yes, guns will be the only way to protect the haves from the havenots. And the banding together of good people in small protective groups, who will work to protect and survive all dangers presented, will be the norm.

And what happens with the government and the USA? Those officials who are not assassinated or have commited suicide, will have gone into hiding. There will be no one left in Washington to take charge. The World economy will suffer and other countries will soon follow suit. The foreign investors who feel they need to be paid back for their ustreasury bills and other assets, will come calling to take possession. Other countries may see it as a great opportunity to do the same and they will go to war against each other on our soil.
Our troops are stranded in Iraq and Iran. Our military here at home, as well as citizen volunteers, will be commanded by true Patriots and will fight the good fight. The outcome is anyone's guess. If nuclear warheads are never used and foreign intruders are sent packing, recovery of the homeland will be slow.

Survivors will be as the pioneers were and the economy be built by trading and bartering for labor or the products made. Trade fairs and farmers markets will bring in more buyers and sellers. Gold and junk silver coins will be the mobile currency until small town banking can back notes and loans to bring local commerce back. A Free-Market entrepreneurial economy will pave the way for the New Libertarian - one who opposes government intervention, i.e., a defender of Liberty and Constitution.

It will take years, possibly decades before the people slowly allow any formal government to intrude in their lives. When government and taxes are needed for the expansion, the Constitution will be followed. All tax dollars will be held by the States as the new Treasury. The Government will never spend more than what is collected and any Bill that spends tax dollars that effects future generations, will be voted on by the citizens before going to the President for signing.
America will become American again and alot of tuff Patriots will sacrifice everything to make this happen.

Parting thought, as we head into 2010, go prepared people. Do the simple research of what you need to do to get prepared for the worst, it will be the best insurance you can buy. Invest your dollars while they still have value. Have plenty of food and water on hand and get the skills and knowledge to make the right decisions for optimal self sufficiency. Also, follow the wise advice on many great websites, forums and podcasts. Get Ready!

http://www.preparednesspro.com/blog/
http://americanpreppersnetwork.blogspot.com/
http://www.thesurvivalistblog.net/
www.TodaysSurvival.com/forum
http://vikingpreparedness.blogspot.com/
http://www.prepperpodcast.com/
http://www.grandpappy.info/honehour.htm

What's Gold worth?

Those commercials to invest in Gold flood the radio and TV. They say to secure your portfolios with gold. There's no doubt about it, we're in the middle of a very bad economy and 2010 is going to be a tough year.

If you look up the prices, you think there is 'no way' to get involved buying now.
As preppers, we have read that it is a good idea to have some on hand before SHTF.
So what's your reason or definition of gold & silver?? And what's it worth?

What if things get really bad? What if every "asset" you have disappears and you are on your own? What if the government is gone and there is no order? Gold coins will be your secret weapon to get through the mess. No matter what, they are always worth money. You will be able to use your old coins to barter and get yourself and your family to safety. Of course, it will be the wild west and you will need to fend for yourself and avoid getting taken advantage of (and your gold stolen) but if you're savvy, it's better to have gold on your side than nothing. Of course, in this case, it's unlikely you will be able to get to your safe deposit box and that's why I recommend being smart about hiding some gold and silver coins in your home and on your person.

Gold jewelry is going to be worthless in trade and gold bought from the trading houses and held in reserve 'on paper' is going to be worthless.
Only Coins...will be trusted.Gold coins or old silver, pre-1965 and in any condition, will be far more valuable that bullion chunks because it would be hard to make change from large amounts.
Coins in hand, are portable, readable, measured, authentic and good from any country. These coins will not be backed by any government, they are valued for just what they are...pre-measured valued asset in assayed metal.
Barter will be the fare of the day, but adding a few coins to the deal, will assure you make the trade. Adding a few coins in the post economy of your immediate trade area will also add 'currency' into the hands of those who didn't plan ahead.

If you ask the average person what they think about gold, they picture a pirates treasure chest of chains and goblets, bags of nuggets from a miner or they picture big heavy bricks at the Mint. When they see a coin, all they can come up with for value is just a little above face value for vintage sake. Check out this Youtube...
http://www.youtube.com/watch?

Average people on the street have no clue to the value of gold and silver. They don't realize they will need something of value when the paper dollar is worthless. Clueless is, what clueless does...so they must have looting as their game plan when the dollar hits the skids....

And if gold and silver coins are not in your budget, better be checking with aunt Betsy or Grandpa NOW to see if they have some pre-65's in a fruit jar somewhere that you can trade some work for. Next best thing is to collect high priority barter items and that list is long. Buy junk coins in this recession, and your life could improve! I truly wish you the absolute best of luck and hope these tips help you through some difficult times.

Hyperinflation...Recovery is Temporary

The recovery that we are all witnessing is only temporary.
What will happen when interest rates come back up - if they come back up?

Oh me, oh my! We are going to watch a further erosion of real-estate prices on a massive scale as homeowners are forced to pay even more than they already can’t afford. If and when this happens, then real-estate prices will take a further hit as yet more foreclosured properties get pumped into the already saturated market with even less able-buyers available to pay for these low quality, exhorbinately overpriced, wasteful, energy in-efficient properties. If you thought that subprime was bad, I strongly suggest that you take a look at the Suisse bank chart on the impending re-sets. If interest rates stay low long enough for a few small businesses to get some loans (to expand and make products no one can afford) and more borrowing and more money gets created out of thin air then inflation will kick in sending commodity prices higher - and probably to the moon. The dollar is at 65 cents now....

And, in addition, General McCrystal of the US Army came out saying that the war effort in Afghanistan is probably un-winnable for the coalition forces under current conditions. Obama must already know this and frankly, there is little or nothing this puppet president can do to make a difference in the eventual outcome there either. This means that oil prices will likely rise. When oil prices get high again as they certainly will over time, the picture looks even grimmer. It basically guarantees that there will be more people opting to pay for gas and food instead of their outlandish real-estate prices (or health insurance). This equals lower real-estate prices. When the US is forced to concede in the middle east, then it is game over for America. Obama will be weak, we will lose the dollar.

It is a lose-lose scenario for the over-extended middle class. Starry-eyed and with hope, they’re looking off into the distance and can see a light that seems to be getting brighter and brighter. Don’t they know who they are? Credit junkies and they’re looking for another quick fix. Don’t they know where they are? They’re stranded on a train track. Unbeknownst to them, the light they see as their saviour is only that of an oncomming locomotive that is fast headed their way. It isn’t going to stop either. A lot of people are going to get wiped out by the upcoming collision. The homeowners are going to get wiped out. And the small businesses and banks are going to get wiped out too. There seem to be several options available to the masses, to those who are not faint of heart. The options are, wait it out and face the music and deal with the calamity as it evolves. Or, sell now, pay off debts and convert some cash into silver and gold and rent or buy somebody else’s devalued real-estate, cash down,(spend it while it still has some value) then store as much food as you can or leave the USA altogether.

When our friendly Chinese loaners dump their dollar, demand their money back, that will be the trigger. This is the reason to have part of your assets in gold and silver as today is basically the beginning of the end, the beginning of hyper-inflation and the end of the dollar and the end of ”the American dream”. We have run out of time. Who will pay most dearly? The middle class. They are the ones who are stuck, stuck on the tracks. They are the ones trying to pay down their debts so they can get some gold and silver....too late. Train wreck. They will be the ones who start rebelling and panic will set in as they see that their only way to survive will be to take matters into their own hands. A new nation will be born. And gold and silver will be the the only backing for ANY financial transaction. The US government cannot control this. The US government is theoretically bankrupt and now the FED’s days are numbered as well. The sinking of the FED will signal the end of the 25cent US dollar and the end of the US government and along with it the social system we pride ourselves for believing in. Our founding fathers warned us! The People of America who went into debt with Bush and who were too lazy to challenge Obama’s policies, forgot what a sweet deal our ancestors built for us. They forgot their history and they failed to learn their civics lessons. Wake up people, the barbarians/foreigners are at the gate.

Forget the stock market! This is a different kind of crash. There is a coming collapse based on an unexpected, for most, shocking event yet this year. Get ready for something you have never seen, and when it hits, shock and awe will stun even the strongest in America. It will lead to fear, chaos, collapse, and even a coming famine as the system breaks down. Get ready for what most do not want to think about. The strike is ready, and the clock is ticking.