Thursday, February 10, 2011

The Collapse Of American Fiat Money - Can It Really Happen?

As Ben Bernanke and the Obama administration pump more dollars into circulation and our dollars become worth less (as in losing their buying power), what could happen as a result, is a collapse of our monetary system. Don't think it can't happen.
China and Russia are already making deals to swap products without using American currency. Other countries may follow suit.

When other nations decide to conduct business without the US Dollar - especially buying petroleum - we are done. Game over.

So what would happen if no one wanted our fairy dust backed fiat money anymore?
Check out these two videos and understand why petrodollar status is so important to us.

Meanwhile.. back at the Southwestern ranch.. Americans were subjected to rolling blackouts thanks to a failed American energy policy. US states were dependent on Mexican energy! Unbelievable.

That's the sort of thing that happens when you de-industrialize.

Please - we need swift and substantial policy changes in Washington immediately to stop this insane self-destruction!


Elisheva Hannah Levin said...

Judy, just wanted you to know that I watched these. The truth is so hard to imagine even as we prepare for the coming crisis by moving to our own "southwestern ranch." And yet, I believe that you and many others are right, there is no way out now. We have--as the much villified Glenn Beck says--passed all the exits.

About the blackouts: The problem was not just with electricity, but the inability of gas companies to deliver natural gas because of the crazy system that is used. For example, New Mexico posseses a great amount of US natural gas reserves, and yet many communities were without natural gas--and thus heat--last week because our gas company imports natural gas from Texas, where there was no electricity to maintain gas pressure in the pipelines. I am not sure about all the reasons why we do not use our own natural gas for New Mexico customers, but I do know that regulations for preparing that gas for us, and other complicated regulations with respect to the utilities monopoly played a large role in that.

People here are used to being ignored by the US government--after all, we have a large Native American population that saw their special land-use accounts stolen by the BIA--and there was little unrest. However, they also expected that the crisis would end soon, and now questions are being asked of our new Governor about the utility monopolies. But the anger is real, and if the government checks stop in the cities, if food disappears from the shelves and Indian Reservation Food Stores--I think we would see massive unrest, especially when people realize that no G-man can save them.

Very scary stuff. What are your plans for weathering this storm?

Judy Aron said...

Thanks for clarifying the energy problems/shortages in New Mexico (I was hoping you would!)

As for weathering the coming storm.... I think we are doing pretty much the same as you, minus having a ranch with horses. People I know are applying the four "G"s - Groceries, Gold, Guns and God.