Taking America Back One Bit At A Time _ Part 5, Looking Beyond December 2012

Earlier posts in this series can be found here: Part 1, Part 2, Part 3, ans Part 4.

Looking Beyond December 2012

In Part 4, The Taking of America continued, we arrived at the current point in time, December 2012. The movement to convert America into a socialist state has, after 100 years, nearly completed their mission. Barack Obama was elected in 2008 after the financial crisis. In four years his adminstration added $5 trillion to our national debt, which now stands at over $16 trillion and growing. In 2009, President Obama asked for and got an $800 billion stimulus package. Because of the 1974 Budget Control Act, that $800 billion became part of the baseline budget and in each subsequent fiscal year it has increased by 6%. In fiscal 2013, that original $800 billion will be about $1 trillion. Sp, after all that stimulating, we can see no benefits to speak of. In the first two years of Obama’s administration when he had a super majority in congress, the ObamaCare bill was passed and as each day went by we learned just how costly and damaging this program that no one was asking for, will be. In spite of a very weak economy and high unemployment and no sign of plans to improve the situation, the American electorate gave Barack Obama a second term. From our point of view, the future looks very bleak. It behooves us to try to speculate what that future is most likely to look like so that we can we can plan and prepare for it as best we can. So, let’s break the future into three parts: 1.) from December 2012 until the debt time bomb goes off, 2.) the period of chaos after the debt bomb goes off, and 3.) after the chaos. I will speculate about what I think the future might look like and hopefully you will chime-in with your ideas in the comments section.

December 2012 Until the Debt Bomb Goes Off

Not everybody believes the debt bomb will go off. Certainly this administration shows no signs of worry. Even Mitt Romney and Paul Ryan’s plan during the recent election campaign was assuming there was many years available to balance the budget before even thinking about paying down an even bigger debt than we have now. But,I believe it is a mathematical certainty that in the not too distant future, there will be no more sources of money to lend us. Many people much smarter than I agree with me.

So, what do I see as happening between now and then. On the domestic front we have a lame duck congress and a reelected Barack Obama playing politics with a daunting fiscal cliff. Whatever the result is of these negotiations, it will likely be very bad for our already weak economy. Taxes will go up on alt least some Americans and probably on most Americans. In the news the other day it was reported that hidden in ObamaCare is 3.8% surtax on capital gains. And, Obama is asking for more. The dent ceiling will go uup and we will likely see America’s credit rating down graded again. Our economy will probaly go into recession if it is not already there and we just don’t know it yet. In short, the second term of Obama will only cause more harm to the American economy. I and many others believe America is beyond the tipping point. That means that no matter what party wins in the next election cycles, our economy will continue to decline and so will our influence in the world.

Americas foreign policy over the last several years has been confusing to say the least and no more so than in the Middle East. After a whole history of trying to maintain some level of stability in the Middle East, it seems we have reversed course 180  degrees. Is the US planning for war or is the US planning to abandon the Middle East in favor of Central Africa, where there is supposedly much oil and mineral resources? These are two possibilities that strategic thinkers are suggesting. Whatever the US government has in mind, it is going to be costly and our economy can not support it.

The Period of Chaos

What will our world look like after the debt bomb finally goes off? More importantly, what will live be like in America? The so-called experts say that all the developed countries will enter a period of hyperinflation. But, this humble observer wonders could it be even worse than that. When people talk about hyperinflation they often call to mind what it was like in Russia after the fall of the Soviet Union, or what it was like in Brazil or Argentina, which have suffered through hyperinflation several times in their histories. But, in all of those cases there was still some part of their economies that continued to work; their exports. Their exports did still bring into their countries some hard currencies. Also, there was always the World Bank or the IMF there to lend money if certain policy changes were made, and there too were government overthrows that changed policies. Okay, but what we are going to see is much different, isn’t it? There will be no recognized hard currencies in the world. How will trade between nations be able to take place? There will be no IMF with dollars to lend.  What is coming is truly uncharted territory. Something like this had never happened in history. This fiat monetary system with the US dollar as the international reserve currency has the whole world interdependent on the major economies. Chaos is an apt description of what we will be experiencing. Everyone will be in survival mode. How will our federal government be able to function? How will they be able to maintain the safety nets for the millions that depend on it? How will they be able to pay all the bureaucrats?? How will they be able to maintain our military? Depending how long the period of chaos last, some crazy things might happen. If the federal government is too weak, it is not out of the real of possibilities that some or many states might secede and try to go it alone or in small confederations of states. I am not suggesting that will happen. I am only suggestion that it is not impossible that it wouldn’t happen.

After The Chaos

This Is where I lose a lot of people. Some commentors on this series of post have said essentially that I am whistling past the graveyard. America, they say, will become a third-world nation and that is that. But, I do believe order will emerge from the chaos.  For one thing, this is not the age of the fall of the Roman Empire. It is a much different world today and there are brilliant and creative people out there who will find ways to bring back order one way or another. I have a different theory, however. Let me explain.

In Parts 3 and 4, we talked about how the owners of the world;s biggest banks have manipulated the world to their benefit by controlling the central banks of the most economically important countries for centuries. These powerful forces are still at work. They have been joined by other mega-rich people, but their motivation remains the same; control the world. It is my belief that these same powerful forces that gave us the Federal Reserve in 1913 and gave us the fiat monetary system that uses the dollar as the world’s reserve currency in 1971, have known long before the rest of us that the addiction to debt would some day bring an end to this scheme. That day is not far off. I suspect that these same powerful forces already have a plan for what comes next after the chaos. What might this new order look like?  Many people say it will be a One World governmnt with a One World Bank and a One World cureency. Maybe they are right. My own opinion is that these power people do not see that the world is ready for a One World order. And so, I think it will be something else. What, I do not know. At the very least it would have to envolve a new world reserve currency. Would that new reserve currency be backed by something or would it be a new and improved fiat currency I do not have a clue. All I can say is that I believe some kind of order will be effectively imposed on us and the world.

So, that is my speculation about the future. That is all it is. So, does this old man still believe there is a way to Take America Back One Bit  At A Time when his view of the future is so dark? Yes he does. It’s a long-term view. Maybe two generations or more in the future, but I do believe if there is enough of us who want to make it happen, there are things we can be doing that will help pave the way. Finally then, in Part 6 on monday we will probe ideas on how to take America back.

Well, now you know what I’m thinking. What are your thoughts?