LF: This Is Why They Are Militarizing: ‘The World Will Become Baltimore When People Realize They Cannot Acquire Basic Resources’

Title: This Is Why They Are Militarizing: ‘The World Will Become Baltimore When People Realize They Cannot Acquire Basic Resources’
Source: SHTF Plan
URL Source: http://www.shtfplan.com/headline-ne ... quire-basic-resources_05052015
Published: May 5, 2015
Author: Mac Slavo
Post Date: 2015-05-06 08:24:04 by Deckard
Keywords: None
Views: 2884
Comments: 20

world-will-be-baltimore

No matter the negative economic news or weak corporate earnings, stock markets continue to reach news highs and mainstream media pundits toe the party line.

But how is this possible, given that tens of millions are out of the workforce, on food stamps and completely broke?

The answer, according to Gregory Mannarino, is quite simple. The world’s central banks and governments have been left with no other option. They are throwing absolutely everything they can at the problem in an effort to keep the system propped up for as long as possible.

But as Mannarino notes in his recent interview with Greg Hunter’s USA Watchdog, it’s nothing more than a setup that will leave most of the world’s population, especially the middle class in first-world countries, totally wiped out and impoverished.

The end result will be nothing short of widespread civil unrest, violence and bloodshed as people begin to realize they have nothing left and have no ability to acquire even the most basic of essential resources.

This is where we are now… something has to give… we continue to see more bad economic news being spewed even out of the mainstream but the stock market keeps going up… housing keeps going up.
This is a setup for a massive downside move with asset prices which have been distorted and continue to be by world central banks.
…
The Federal Reserve is trying desperately to remain credible to this market… to make it seem they are in control… they are absolutely not in control… the world central banks are so desperate now to keep the system propped up they have literally turned the financial system upside down… You have central banks that have gone negative [with interest rates]. This is not the way the system was designed to work.
Their alternative is that they have no alternative. If they stop doing this… if they were to start tightening monetary policy the entire system will come down… the whole thing is teetering on an edge… all we need is one event to push this over.
…
They are going to throw everything they can at it to keep it going… because the alternative is too horrible to contemplate.
The world will become Baltimore when the debt bubble bursts… Every street and every nation around the world is going to become Baltimore as people realize that they cannot acquire these basic assets and everyone is struggling for these resources.
They understand this… This goes back to why the police are militarizing every state in the Union… why we are one nation under surveillance.. they understand where this is going.
… We are clearly moving towards a two-tier society… the middle class, when this is over, will not exist.

When the trigger is finally pulled the majority of people will be left confused, panicked and angry. While we can’t predict the exact nature of the coming crises, we can look to history for direction. Currencies will likely crash, debt-based assets like home prices will collapse, and critical resources like food and energy will sky rocket in value to such an extent that they will become unattainable for most.

It is for this very reason that the US government and military have been simulating economic collapse scenarios, the fall out, and how to respond. And if recent riots in Ferguson and Baltimore are any guide, the situation will quickly devolve into looting and violence.

Tess Pennington, author of The Prepper’s Blueprint explains how such a scenario might play out in real-time:

Some of these citizens are prepared and ready for what may come and may feel the need to stay to defend what is rightfully theirs but the majority of the population will not be ready for what they are about to endure. Those that are in this unprepared majority who choose to ride out the disaster do so because they are either unaware of how to fully prepare for disasters, have become complacent or numb to the heeds of warning from the local government and news media, or are overly confident.
This is the point in this cycle where herds of people go to the grocery stores frantically grabbing supplies. Most grocery stores will not be able to meet the demand of the people’s need for supplies, and many could go home empty handed.
Bracing for the disaster, the prepared and unprepared will be hoping for the best outcome. What many do not realize is the hardest part of this event is soon to be upon them. Within days, the descent into the breakdown will begin.
Full Article: The Anatomy of a Breakdown

In response to the panic, the government will, as we’ve seen in Baltimore, initially react with curfews and a heavy police presence. When this is not enough, they’ll declare martial law and enforce it with the military.

Those who fail to prepare by stockpiling those critical resources like long-term food stores and other emergency supplies, will be left to fend for themselves on the streets of America.

For those living in Detroit, Chicago, Baltimore, etc, when the stores run out of Newport, Malt Liquor, and KFC, all hell will break loose.

Actually, there are plenty of alternatives. They mostly involve cancelling debt.

When the financial system collapses, due in part to the dollar being worthless, NO ONE will have any debt, collectable in dollars.

Sure. But the financial system doesn't have to collapse leaving nobody with anything collectable in dollars. Because then lots of people will starve and die.

Instead of having people starve and die, we should consciously decide to excise the cancer of debt. This means that some people who have historically been winners will lose big. That happens in every generation. Usually, those folks are the winners and a larger portion of the population are the ones who get screwed. But we've experienced a lot of history, and can direct the blow to fall differently.

The Russian, Chinese and Mexican Revolutions worked out very badly, but the French, English and American Revolutions worked out ok. So we should aim for Paris, not Peking.

Probably the key difference is that the French, English and Americans were Christians, and therefore were able to temper their revolutionary zeal with a natural limit. The Mexican, Russian and Chinese Revolutionaries were godless Communists, and when you fear and respect nothing beyond force, there's no very good reason not to KILL your adversaries, instead of merely beggaring them of power and property.

When the financial system collapses, due in part to the dollar being worthless, NO ONE will have any debt, collectable in dollars.

â€œPolitical correctness is a doctrine, fostered by a delusional, illogical minority, and rapidly promoted by mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.â€

By having the government take bankrupt banks into receivership instead of giving them interest free loans. Then, when in receivership, by canceling the debt.

This unburdens the population (though results in a tax obligation that partially offsets the forgiveness).

As people are unleveled, they are freed of debt…and about 25% of the released debt is paid to the IRS by the persons forgiven, increasing tax revenues which allows for the retirement of national debt.

This will strengthen the balance sheet of millions of Americans and the government. It will wipe out the investors in companies that would fail but for the government intervention. So, the failing institutions are allowed to fail, and then taken into federal receivership - the investors lose the money they risked (and get to take tax losses for that - those losses are subsidized), while the consumers who are freed of debt end up paying a portion of that forgiven debt as taxes.

The key is to remove the government support for failing institutions, to let them fail, and then take them into receivership and operate them for the overall benefit of the economy - which is found in deleveraging.

In the latest crisis, the government stood with the bankers and bailed them out. What should happen in the next one is that the bankers lose their companies to failure, but the government receivers use the opportunity to deleverage the country and increase tax revenues to further delever the country.

That's how. Somebody has to lose. Last time, the bankers blew it up but were bailed out by the citizenry. The citizens lost and the nation as a whole lost, but the bankers were made whole.

Next time, we should fully privatize the losses, and use the debt forgiveness as a way to stabilize the citizenry and increase tax revenues.

BTW, you forgot to include "Ripple". I am reminded of when Fred Sanford said he mixed Ripple and some cheap champagne and called it "Champipple", LOL.

Let's see,-- our paper backed dollar is rapidly becoming worthless in the estimation of the rest of the world because we owe too much to too many; -- so the solution is to have the govt declare the debt forgiven? And this would somehow restore faith in the dollar to the rest of the world?

Nice "starter kit" of cheap hood wines. MD 20/20 may have been THE cheapest wine of all time.

In the burbs, the starter kit was Boone's Farm and the classy Mateus (ODS's favorite ;-)

I've proposed an alternative to this, which you've ridiculed, so let me just lay out what IS happening, and what will CONTINUE to happen. I do NOT favor the current approach, but this IS what've got, and what we're going to get. What I proposed was the alternative to what we actually HAVE, which is this:

In 2008 the mortgage crisis precipitated a general financial crisis. All of the major banks were in fact bankrupt, the financial system was failing worldwide. So the federal government stepped in with a series of measures.

One was to open up the Fed discount window to new customers and old, at a 0.25% interest rate. That's still largely in place, with a few basis points added.

The second was TARP program - by which massive amounts of private assets in default were covered by the government. TALF bonds were issued, by which the Fed guaranteed debt and provided 300-400% percent leverage, at practically zero interest. Participation was limited to only the big financial players.

The third was general "Quantitative Easing" and direct Fed purchases of private bonds.

Meanwhile, however, the bankruptcy laws were severely tightened to make sure that individual citizens could not extricate themselves from debt.

So, the biggest institutions were given free money to fill back up their balance sheets, the markets were propped up by massive Fed buying, and by Fed providing leverage for big purchasers of securities. And the little citizen was screwed and repossessed.

And to face the unleashing of human misery on an unprecedented scale and prevent social disorder and starvation, the government massively increased welfare, food stamps, Medicaid and other forms of aid, and ballooned the national debt.

That is what happened. And that's what is STILL happening. And that is what will continue to happen.

In a nutshell, what we are doing and will continue to do is operate the debt economy as before, and then print money to cover the interest and the deficit. This also "forgives" debt, by creating money to pay it.

That's what we are doing, and is what we will continue to do: inflate our way to solvency. As long as the dollar is the world's reserve currency, we are able to keep it up.

Europe is now doing its own quantitative easing, following the US model. So, this applecart shall continue along as is.

Long term, the dollar will turn into the Lira, but so what? The super-rich who run the system will own land and other real assets, whose value inflates with inflation. The rest of the country will continue to be beggared.

What I proposed fixes the national debt problem and massively reduces the need for social welfare, by setting individuals free of debt. But it drains the accumulated wealth of the upper class - the ones to whom the government gave the massive boons in the last round.

Somebody loses either way. My plan targets the losses on the people who most deserve it. Forgiving PRIVATE debt doesn't harm the PUBLIC dollar. It stimulates the economy, and provides revenue to the Treasury to RETIRE (not cancel) public debt, which STRENGTHENS the dollar (thereby making the private debt more valuable...and thereby getting progressively more bang for the buck with private debt cancellation.

It's the better answer. Instead, we're just going to print money to cover all debt and expand social welfare. And the dollar will keep on turning into the Lira.

You're dreaming that the rest of the world is going to accept your 'fix'… Face it, -- the dollar will soon be worthless, - and as a result, everyone will be debt free of dollar obligations.

No, the printing will not stop when the paper becomes worthless, because the paper never becomes worthless.

The paper never becomes worthless because it is backed by a huge military arsenal, that supports the interests of an economic elite.

What happens, instead, is the systematic nationalization of wealth, and the regimentation of society along lines of rationing, backed by force when necessary. Those who have physical assets profit - and the crony capitalists will be in the catbird seat because they will have converted their liquid wealth into physical assets and political control.

There won't be a lot of freedom as we've known it in this system. it'll be brutal, but it will function. The Soviet Ruble was not worth zero in the USSR. The North Korean whatever-they-use isn't worthless within Korea either.

To set the nation free, you really have to set it free. Not going to happen, so instead the chains of slavery will get worse and worse, but the government won't collapse and the dollar won't cease to be worth something.

You're dreaming that the rest of the world is going to accept your 'fix'… Face it, -- the dollar will soon be worthless, - and as a result, everyone will be debt free of dollar obligations.

Total finacial collapse in thé USA will fractionalise our military, and thé élite will die.

I'd say that thé coming finacial collapse will allow us to re-establish à free system.

You mentioned two financial disasters: the Confederate collapse and German hyperinflation.

The Confederate dollar collapsed because the Confederacy was physically destroyed, causing it to end. The worthlessness of the Confederate currency was due to military fact, not currency crisis.

As to the Reichsmark, yes, it experienced massive currency inflation, because it was printed in superabundance to pay the German World War I debt, rapidly, in depreciating currency. By 1923, the value of the Reichsmark was about 1 trillion to 1 pre-war Reichsmarken - a Zimbabwean level of currency inflation.

So, what happened? A total financial collapse? You are right that the USSR and North Korea did not suffer a total collapse. But you yourself gave the example of the Reichsmark and German hyperinflation. Did THAT system totally collapse?

No, it didn't. Not even close. Nor did it result in Hitler. German hyperinflation ended in 1923. Hitler didn't come to power for a decade after that. In fact, the German government continue to operate, and there was no massive famine and death.

What happened was straightforward: the Chancellor put the country on the gold standard and had a new currency printed - yes, printed, for Germany had no gold. The new currency was pegged to gold, and it was not redeemable, and the German government pledged to only print enough to keep up the peg. And that was that. No revolution,. No famine. No mass death. No collapse of civilization. No apocalypse.

The people were all suffering, and rather than themselves engage in an orgy of suicide over the loss of the old money, they accepted the new money as a lifeline. And they used it. And it did not hyperinflate.

Some people were enraged. Hitler was among them. He tried to stage a revolution starting in a beer hall in Bavaria…and got himself arrested and thrown into jail.

The financial collapse of Germany was solved by a quick expedient, which itself only lasted a year. The currency was re-established, creditors took their lumps, and within a year the country was printing marks again that weren't backed by gold anymore (which Germany didn't have anyway).

There was no revolution. The government didn't fall. There was no mass death, pandaemonium, descent into Road Warrior apocalypse. The new money replaced the old, just like that, and financial fortunes based on the old were wiped out on paper, just like that, and then the society moved forward from there, still operating, under the same government, just like that.

Like so many American conservatives, you overvalue the power of money. The German hyperinflation is famous. And the result of it was? A stable mark re-established within 6 months, without a government change or collapse into anarchy and mass death.

There's the regular market track, which we experienced in 2007/2008-2010, which we could experience again. And which we'll solve again largely the same way.

There's the gradually expanding cost of Social Security, which we'll solve by either deficit spending, printing money or new taxes, along with some means testing.

It's easier to print money when you're the reserve currency of the world, and with China rising and Russia restive, there's some risk that we will lose that status. Which will simply put inflationary pressures upon us, and cause a worldwide swoon in finance.

But if we lose the bubble and have hyperinflation, then we can always solve it the way the Germans did: without an apocalypse: reprice the dollar in gold, and simultaneously (of course) stop things like home repossessions through the courts during the crisis.

The creditor class loses when you do what was done in Germany to get out of hyperinflation, because they have huge piles of the old, now worthless money. They come out with a bare fraction of what they had before. Of course, so does everybody else. The key is that the food still grows, the transport still works, and people still eat. Because as long as you keep that going (backed by the national guard and the army), then the system will rapidly settle out, and most will go along with it in order to not suddenly be starving.

It's effectively what we already did here with QE and TARP and TALF during the crisis. And you may well note that some people squawked loudly about it, but MOST people shrugged their shoulders and said "What else are we going to do? Let everything collapse?" So we intervened, and shored everything up, and we're still operating.

Same thing happened in the 1930s. It was called "The New Deal", and it was effective at keeping America from sliding into either anarchy or starvation.

America's still here. Russia's still there. Germany's still there, for that matter. The South's still there too. The Confederacy is gone. The USSR is gone. Germany went through some changes and chose badly when it came to launching war. But they're all still there. And bye-the-bye, they're all freer and better places than they were under the old order before the collapse.

If we have a real hyperinflation bout in America, what will come of it is the destruction of the crony capitalist class: their money will be worthless too, and they have more of it. And the government, backed by the armed forces and police, will not LET the "owners" of the land, machines and food supply simply starve everybody to extort wealth back out of it. They'll do exactly what they did in Germany (and what we did during Reconstruction and, in a soft form, during the New Deal: use a form of undeclared martial law (to wit: the court system), to stop foreclosures, stop seizures of property by private creditors, and compel distribution. To stop runs on the banks in 1933, FDR closed them for a time. If they need to be nationalized in a crisis, they will be.

The federal and state governments have more at their disposal than simple currency measures. They have the courts - to give legitimacy to whatever they do, they have the armed forces - to compel the results they command, and they have the desire of most of the people to not starve, not be homeless, not be cold and dark in winter - to provide them the legitimacy to do whatever-the-hell.

We've seen with Obama that when an executive is DETERMINED to advance an agenda he thinks is right, he can. The system is not really strong enough to stand up to him. We've had past Presidents who were determined to advance a crony capitalist agenda, or who were too stubborn to make any changes to a system they and their supporters liked in the midst of a crisis.

In a sense, that's how we got to Civil War in the first place. And it's part of the reason why the Confederacy lost too.

The United States isn't going anywhere. We will eventually have a currency crisis, because there is no will to fix it. The fixes are all painful, and nobody is willing to bear the pain. However, unlike the Confederacy, there is no army breathing down our necks. We'll have the currency crisis and inflation, maybe even hyperinflation, and the government will step in with emergency measures, backed by armed force, that will re-establish order and perhaps reissue a new currency - just exactly like the Germans solved their hyperinflation problem in 1923.

Of course, doing so will evoke some hostility. In Germany, it invoked the inveterate hostility of people like Hitler, who had different ideals, and angry munchkins like him. They gained some power through elections, and then used the iron fist to consolidate power. And they stared wars and then brought the dreaded breath of enemy armies down upon them.

So, that's the REAL lesson of German hyperinflation: you solve it quickly by fiat, but the angry elements of your own population, in their venting, mustn't be permitted to go off on a "blame foreigners and march to war" meme, because if they do, then the buck really can be stopped, if you pick on foreigners stronger than you.

With the USA, there isn't anybody stronger, so we have a lot of rope to run with in a crisis, as far as externalizing our problems by military aggression, until the world unites against us.

You've called my solution a pipe dream. In that, you're right. My solution was a Judaeo-Christian one: sabbatical, debt forgiveness. America is a Molechite nation, slaughtering 2 million babies per year on the altar of sexual convenience. Of course a nation so drenched in evil is not going to choose the RIGHT answers.

But we are likely to choose expedient answers which have been shown to work. You print money for as long as you can, and then if you touch off hyperinflation, you re-set the currency and soldier on. That EFFECTIVELY gets you the Jubilee without formally proclaiming it.

I'd say that thé coming financial collapse will allow us to re-establish à free system.

This isnt germany, 1923.. Wé have à very urbanised, 'just in time' délivery type society. When thé food or booze isnt there, people riot..