What is happening in the USA (April 6, 2009)

Violence – People are lashing out against police and civilians with death tolls mounting. This is just the beginning and will get much more common. The police are being shown to be not so omnipotent since they are taking losses. People are wound up tight right now. Money is extremely tight and they explode easily. Rest assured the government is petrified of civil unrest getting out of control. The government response will be to give the police more and better arms and protective devices. The people will hate this more and more. Thus the cycle goes on until something breaks. Do not think the USA will refrain from using whatever levels of force needed to maintain their idea of order.

Unemployed – The media has taken to not talking about rising unemployment, businesses closing etc. The people have become used to such news and it does not sell well anymore. This does not mean it is not increasing. Remember when people run out their unemployment insurance they no longer get carried in the count. When people give up and take part time work they also go off the count of the unemployed. The real count is probably at least double or triple what the government says it is.

Homeless – No one knows how many homeless people there are in the USA. Most who lose their homes move in with friends and relatives. The counts of homeless people run from 800,000 to 3,000,000. Obama is doing zero about this. Homeless people generally are little trouble to a government. The hourly challenges of staying warm, dry, fed, and keeping control of whatever little they have in possessions takes up their days and nights. They rarely do anything threatening to the government.

Foreign Policy – Obama is increasing the war efforts in Afghanistan big time. How many of you know about an oil pipeline in Afghanistan? This is going right back on his campaign promises. He seems to care less about those who voted for him and the reasons they voted for him. His agenda is that of his handlers not the voters. He still has troops in 150 countries. This costs big money and he has no money. Obama is trying to get countries to continue to take his money as if it is real even though he keeps on printing it freely. This will never work; the cat is out of the bag. End game on the way.

The G20 – This is another joke of jokes. The UK who is more broke than the USA and Obama running around trying to make people think their one world order is a reality. Nonsense. They accomplished nothing. Tax havens never caused this mess in the world, they did. They are just trying to find a scapegoat to blame it on in the eyes of the uneducated. If Obama were to tax the greatest scam tax shelter in the world, the Federal Reserve, which pays no taxes, yet is a private company, then he would actually do something constructive. Three hundred bankers would be hurt and 300 million people would benefit. Let me know when you see this on CNN.

China and Russia are not at all pleased with the USA monetary practices, putting mildly. China exempted Hong Kong and Macao and the UK exempted Jersey and Isle of Mann from the OECD blacklist. Thus the level playing field is destroyed and many nations will ignore the OECD due to this blatant inequality. The OECD has no teeth anyway being just a civil organization. China and Russia want a new reserve currency to get away from the USD, which will crash. This new currency will need to be based on assets and liabilities. The USA has many times more liabilities than assets. Remember they grow very few crops, and manufacture little as well.

To China and Russia this is a way to bust out the USA. Another way this plays is the USA needs to convert their dollars into the new currency. Again this will bust out the USA since they will not have the final say as to how much of the new currency their dollars are going to convert into. No one will let the USA have their way with this except the UK. If the USA could take their watered down USD and convert it one for one into the new currency, the new currency would be garbage at onset. Russia and China certainly will not go for it and they are key players so we can forget this new world currency from ever being a reality. It is a game until new currencies can be set up with new wiring systems the USA has no access to.

These new currencies are not going to be set up by the G20 or the IMF. The USA monitors the Swift wires and their own wire system. There is a cold war with China and Russia now. The USA has an unfair advantage over China and Russia in that they can monitor their wires but not the other way around. Watch this change sooner than later. China and Russia need bank secrecy and anonymous corporations to keep their affairs private so expect to see a return of the numbered bank accounts or at least anonymous corporations with almost no record sharing except in criminal matters, real crimes not victimless statutory violations. The G20 is just noise at this point.

Economic Stimulus Package – No country ever spent their way out of a recession. I doubt Obama will be the first. Do not look for this to do much. It is mostly an I hope game on the part of those in control to find an answer before civil unrest destroys the country. Do not believe this is a staged series of events. They are far from competent enough for anything like this. Their real problem is their solution is dependent on the other countries of the world going for it and accepting the USD as a reserve currency while the USA keeps mobilizing for wars, bullying nations around, playing one world policeman and one world order by spending money it does not have. The USA has been doing the printing press game for decades now and knows no other way. China and Russia will not go for it and they are both superpowers. This means the crash of the USD is imminent.

Crime – On the rise across the board and will only get worse. Police state tactics will also increase. Once the police can no longer do the follow up investigations on crimes then the end of law and order is near. This means the crooks just have to make sure they are not caught at the crime scene. The next stage is shootouts with the police where the police win. As the Mexican gangs become more and more entrenched in the USA this will be increasing. Remember the USA will call for gun control as the Mexican gang violence increases, as if any of these gangs would ever pay any attention to gun control laws or use any registered guns in their crimes. We are starting to see this now with police getting killed and wounded at crime scenes, which use to be rare. Wait until you see the police trying to get away from the criminals shooting at them with automatic weapons. Not as rare as you might think. The next phase is the police join the criminals and then it becomes an unbearable place to live in.

Medical Insurance – More and more people are going without. When they lose their jobs eventually after a few months they have no insurance. This is another problem people have to deal with and it can be life threatening. As the medical system grinds to a halt the doctors will start leaving and going to other countries. In the USA a MD could earn $300,000 a year. Now with so many uninsured, insurance payments shrinking and delayed insurance payments this is not the case. The doctors also have to contend with high malpractice insurance premiums and excessive government regulation. After all this comes high taxation with little benefits.

Watch for them to start leaving the USA. They will not make as much as they did in the USA but those days are over. The threat of malpractice lawsuits will be removed, they will be able to practice medicine as they see fit without the government telling them how to prescribe drugs they can and cannot use. They will make less but their cost of living and doing business will be much lower. As the first wave leaves and settles in elsewhere they will be encouraging the others to follow in their footsteps and leave. The business a doctor has is portable. The countries will generally provide reciprocity to one holding a USA medical license. If you think the medical system has problems now, wait until the doctors start leaving in quantity.

Serious Change in USA – I would be quick to say forget any sort of radical change inspired by the discontent of the people like a revolution, states dropping out of the union, or any sort of states rights movement that will interfere with the power of the federal government. This is not something that enough people are going to support for a lot of reasons. There are millions of people in the USA who do not mind the government because they get supported by the governments – local, state and federal employees, social security, disability and welfare. These are many millions of people who are oblivious as long as they get their check.

Then there are millions of people who have no idea what is going on. Then there are those who emigrated from other countries legally or illegally and really have no deep roots in the USA. To them it is a place where one can take advantage of the system and send money home, nothing else. There are many languages spoken in the country – English, Spanish, Mandarin, Cantonese, and others. Different racial groups resent each other. The people are greatly divided against each other. The country is disjointed and far from united on anything. This is not a good environment for any sort of a group affecting any sort of radical change. A country can also not survive when it is so mixed up and diversified with little in common. The radical change will probably come about when hyperinflation sets in because no one wants to use the USD anymore as a reserve currency.

If their USD is not a reserve currency then the USA will have to buy other currency with their USD and the conversion rate will be pathetic in a word. This is how all fiat currencies finish. So we might see the dollar be worth $0.15 against the Euro, or even less. An ounce of Gold for say a hundred years would always buy a weekly wagon load of groceries good for a small family and this is true today with gold at $900 plus an ounce. If gold costs $4800 an ounce because the dollar was adjusted down to a more realistic level, where does that leave America? In the dumps that’s where.

What will the implications of this be is hard to determine. People will be discontent since they will have no purchasing power. Foreigners will flock into the USA and buy things up at fire sale prices. Educated Americans may very well wind up working as maids and drivers for these foreigners who bought up their country at fire sale prices. Imagine that. It is our opinion and that of many people that the USA will break up eventually. The same people that control the federal government control the state governments.

I would say forget the states dropping out theory. The Federal government has military bases with nukes in the various states. They will never let this happen since they would be creating a nuclear power that hates them. The other states would say that they are being left to pay the debt unfairly. It seems that a total collapse of the government will be needed to affect the breakup. The USSR was in a similar position in the 1980’s. If even the government workers are disgusted with their lack of purchasing power then the changes will be coming far faster. Remember that running the printing presses will not work if the USA needs to buy foreign currencies to effect trade.

The more money they print the lower in value their currency becomes. So they cannot go to a federal law enforcement agent making $70,000 a year and say ok we will pay you $375,000 a year. This would require increasing the budget and money supply thus devaluing their USD even further. So their own government workers including military and police will suffer an amazing drop in purchasing power, as will the social security recipients, disability recipients and welfare-supported people. China and Russia know all this and so does Obama. Obama knowing it does not mean he can prevent it. He will try. Name one thing the USA has done right in the last 25 years. This will be no different.

What Should You Do – We keep saying this, leave while you can. Take whatever you can liquidate with you. Get new citizenships starting with residencies if you have to. Before it is over the police state will get much worse. The police will benefit in the short term. They will get cost of living raises to keep them current with inflation for a little while. They will have more special privileges than now, as they police state bears down. When the economy becomes impossible the police will become as they do in many places – corrupt. They will justify it by saying they have families to support and it is the only way they can maintain order and it is better than no police. This is not true.

The people will resent the police much more than ever before. Police brutality will reach unprecedented levels as the corruption rises. Police will begin to form alliances with the organized criminals. Foreigners will begin to see opportunities in the USA and move in. Many of these opportunities will be criminal activity and quasi-criminal activity. They will greatly help the corruption being well versed in how to make it flourish learning this from other countries. The judges will become corrupted as well as the penal system. The various government inspectors will become corrupted too. There will be an underground economy that uses foreign currency, which by now would be considered to be contraband by what is left of the federal government. Police will stop solving crimes and police patrols will be more for the police to keep control over the crime empire they work in conjunction with.

This is the model the USSR followed by the way. In the USSR it was so bad the mafia there took to putting blue lights and sirens in their cars just like the police. Really did happen. What did the world do nothing. Did UN soldiers come in? No. Did anyone try to help? No. Expect the same. Still have doubts look at Mexico today.

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