The Inevitable Economic Default
Most people think that the story of the ultimate economic collapse has already been told.
The Great Depression…
The dot-com bust…
The housing and credit crisis of 2008…
But the greatest economic collapse is a story that’s still being written.
It started when Presidents Bush and Obama spent over $1 trillion in stimulus aid – and lowered interest rates to near 0% levels – to fix the economic crisis.
By doing so, they essentially solved the problem with the same exact measures that created the problem in the first place.
They created another bubble.
Only this time, it’s within our Federal Reserve. And when it pops, like every bubble does, it will take us all down with it.
The Stakes Have Never Been Higher
All it will take for this next bubble to burst is a debt default.
And when it happens, we won’t be able to solve our problems with the same old methods.
We can’t lower interest – it’s already at rock-bottom lows.
We can’t further stimulate, as that would require larger stimulus packages and deepen our burden even more.
Ultimately, our foreign creditors will do one of two things:
They’ll either stop lending us money, or they’ll devalue the newly printed dollars we’re using to pay off our debt.
Either way, once our creditors expose the true value of the dollar – game over.
Countries will look to exchange with a currency of greater value, and the United States will be forced to say goodbye to the Federal Reserve.
This isn’t something that might happen, either. It’s inevitable.
So inevitable, in fact, that the Fed can no longer hide it.
The federal government recently issued a call to action to all 50 states – and five of our nation’s largest banks – to prepare for the coming collapse.
And states aren’t taking any chances…
An Awakening of the State
Some states saw the writing on the wall long before any official warning came from the Fed.
Take Texas and Wyoming, for example. They took the first proactive measures toward what is now becoming a nationwide, state-by-state internal assessment.
They formulated “Doomsday Preparation Bills” that, once passed, would establish crisis committees. The Bills:
- Texas – HB 568 “Self Sufficiency Act”
- Wyoming – HB 85 “State Run Government Continuity Task Force”
They seek to establish measures that protect the state and its citizens in the event of federal default. Furthermore, the bills initiate the necessary steps to becoming a sovereign state.
The states have decided to:
- Analyze how dependent they are on federal funding.
- Begin stashing “emergency funds” for surviving without federal aid.
- Prepare a state-run army to defend against the imminent resource scarcity and threats that will arise from federal default. This includes stockpiling military technologies.
- Arrange the issuance of alternative currency.
And they aren’t the only ones working on alternative solutions…
Virginia, Utah, North Carolina and South Carolina have already legislated the use of gold and silver as currency for intra-state transactions.
Utah was the first to introduce the currency bill that allows residents to use U.S.-minted gold and silver coins. They’re currently developing a system where citizens could use debit cards linked to their gold and silver holdings.
South Carolina took it one step further by allowing any form of gold and silver coin, including other currencies like the Philippine peso.
And Paul Broun, Jr. of Georgia reintroduced Ron Paul’s “Competition in Currency Act” at the beginning of this year. CICA2013 intends to repeal the illegal use of foreign gold and silver coins nationwide.
As the Fed continues to devalue the dollar, it’s the logical step to take when considering using another form of legal tender.
Something to Consider…
It seems absurd to think the United States – the world’s most powerful nation – could be facing economic collapse.
It’s a concept that seems radical to most people, especially when the United States has a AAA rating and the markets are at all-time highs.
But think about it. The 2008 crisis brought the world economy to its knees.
We witnessed the destruction of big businesses – Lehman Brothers, Behr Sterns, AIG, Fannie and Freddie.
And we’ve seen prosperous nations falter – Iceland, Greece, Italy, Spain and Portugal.
Our government has taken on a suicidal amount of burden and injected worthless money into a broke system – all in an effort to delay the inevitable.
Remember, people once laughed at the thought of the housing and credit market failing. Things appeared to be going too well for any such talk.
But with major players in the government and private sector making preparations, it’s pretty clear that our worst fears are quickly coming to fruition.
In Pursuit of the Truth,