In fact it doesn’t take much ingenuity to envisage a collapse in the dollar, even though it’s denied in official quarters and most of the MSM. The greatest impact will derive from the loss, or serious diminution of, its role as a reserve currency. For more than fifty years this has enabled American citizens to buy what they wanted, especially oil, at knockdown prices, and to borrow at knockdown interest rates.
But it can't and won't continue. The various deficits, at internal, external, municipality, state and national levels have been largely met up to now simply by running the printing presses at levels inconceivable in earlier times. No reserve currency can survive as such under these conditions. And far from improving, the deficits are widening. Former Treasury Department economist Bruce Bartlett calculated in 2009 that “federal income taxes for every taxpayer would have to rise by roughly 81% to pay all of the benefits promised by these programs under current law over and above the payroll tax.”
Of course it’s not in the interests of the main holders of US bonds to suddenly collapse the dollar. But already many holders are getting out of the currency, and there’s no telling when this could turn into a stampede. A meeting that attracted surprisingly (?) little comment in the MSM took place last year between China, Japan, Russia, France and the Gulf Arabs with the stated intention of moving from sole dependencies on the dollar to a ‘basket of currencies’. The IMF has plans underway for a World Currency, and there are places now where dollars aren’t being accepted - parts of Europe, China and Japan.
To add to the brew, the vital ingredient of public confidence in US markets has steadily eroded as one scandal follows the other and the people involved are never held accountable. So far, not one CEO or CFO of a major investment bank or financial institution has been charged, arrested, prosecuted, or convicted in what amounts to the largest incidence of securities fraud in history. In the much-smaller Savings and Loan investigation, more than 1,000 people were charged and convicted.
What will happen in the event of such a severe decline? Well, mainly a rapid increase in the things that are happening at present.
() Inflation will soar, destroying savings
() Prices of imported goods (America doesn’t manufacture much any more) will soar even more dramatically
() Cities and states will cut back drastically on entitlements and services and/or sell off their assets to gain short-term liquidity.
() Private citizens’ savings, assuming anything survives the Wall Street plunder, will also be continually raided to fund to more short-term liquidity
() For the vast majority of Americans, wages and their standard of living will plummet to unimagined levels.
These trends are already there. Stripping out the tricks used to deflate unemployment figures indicate the real rate to be over 20% John Williams (shadowstats.com)
() Food stamp use has shown an almost uninterrupted growth for the last two years
() Shanty towns are growing up around many cities
() While all but four states run significant budget deficits, the real problem is going to come at the municipality level. Warren Buffet says that this will set off the next depression.
() Drastic, and in some cases illegal, cutbacks have been made in Detroit, Camden, Newark and several other cities, while Hamtramck (near Detroit) has actually run out of services to cut, and expects to spend its last dollar early this year. Needless to say, these are all black “controlled” cities.
Which brings me to the big question: How are whites going to react? Will the sheeple, lobotomised by Hollywood and the rest of the MSM, finally awake and realise that they’ve been sold down the river? That not alone have they been traduced, ridiculed and dispossessed, but the very taxes they pay out have been used to fund various forms of ‘reparations’ to blacks and other ‘vulnerable minorities’. Will they realise that they – and only they - have been systematically disadvantage at every hands turn?
Let’s hope so.
And now look at the other side. Blacks are going to be affected even more drastically. Apart from a small minority, their (legal) income is comprised of welfare and gub’mint employment. But these sources will collapse as the public sector, at all levels, runs out of money. Waiting in the wings we have the Aztlan Movement, and MeChA calling for ‘their lands’ to be returned to them. They have important support; Mexican President Ernesto Zedillo has warned Washington that his country "is ready to fight" if the United States enforces immigration laws and deports illegal Mexicans. "We will not tolerate foreign forces dictating and enacting laws on Mexicans."
Looking at possible non-apocalyptic outcomes, there has to be a massive reaction against illegal immigration. There’s only so much Americans, black and white, will take once the situation gets desperate along the lines I predict. A second casualty surely must be Affirmative Action. I cannot imagine whites in these circumstances continuing to accept being passed over for work in favour of less suitable candidates. But it will take a white uprising of some sort before the elites will concede on these issues. But concede they will, I believe.
What about a more apocalyptic scenario? Is it fanciful to suggest that there could be race riots, food riots, squatter rebellions, tax revolts and job marches? As every schoolboy knows, in fact even a sociology professor knows, blacks riot and burn down their neighbourhoods when their free shit becomes unavailable. Once nothing’s left to burn will they turn their attention to white and other neighbourhoods? It’s happened before. But this time would be worse with a whole generation of blacks reared with a sense of entitlement to all sorts of reparations, and on a non-stop diet of anti-white propaganda.
Remember this is also a generation whose family and social structures (never very strong, admittedly) have been devastated by over-dependence on misdirected and counter-productive welfare. So you may have newly impoverished whites, livid at facing an unprecedented decline in standards, face off against mobs of ‘disadvantaged minorities’ outraged at the termination of their free shit or claiming back their ‘ancestral lands’.
This would be a powder keg that could be set off even by rumour of an opposing tribe’s malfeasance. There’s only so much that the MSM can cover up and I believe that their credibility, already in sharp decline, will plummet after the collapse. Remember that multi-ethnic societies are not the natural order and almost everywhere they have eventually broken down, usually with horrific consequences.
Certainly the crisis will destroy what’s left of Americans’ faith in their government. So what will the elite do? Assuming there’s not a New World Order (NOW) conspiracy to foment the scenario I describe (I can't see there is) there’s always the venerable tradition of conjuring up and going to war with a new external enemy to distract the masses and redirect their anger. I imagine Joe Lieberman and the Neocons are rubbing their hands at the thought and are already drawing up a suitable list
after consulting with Netenyahu . Another 9/11? Don't rule it out.
We are staring into the abyss. But it could be for the long-term good.