Top 10 Triggers of a US Financial Collapse and the New Government Ponzi Scheme

Poor Man Survival

Self Reliance tools for independent minded people…

http://PoorManSurvivor.net

 

ISSN 2161-5543

 

Faith is one of the forces by which men live, and the total absence of it means collapse.

>>William James

 

A discussion of this topic was started on one of our social networks and I promised to write a condensed version of what I have touched on throughout the past couple of years.  If you recall how our economy fell apart after 911 and how Bush pushed for Americans to get out and buy stuff, this was a hint of what a calamity can cause.  Let us know what you think- leave your comments…

 

The dollar has lost 96% of its value since 1913…

 

 

 

 

 

Top 10 Potential Triggers of our Collapse

 

Over the years I’ve posed many examples of how our government treats citizens like crap.  Roughly 87% of Americans no longer like the federal government and with good reason:  Policies which have decimated middle class jobs, unfair tax system, a healthcare system which is proving to be a disaster, the trampling of our privacy and rights, an overregulated nation which is destroying job-creating entrepreneurism and so on.

 

The dollar became the world's reserve currency when President Nixon abandoned the gold standard in the 1970s. The dollar is used for 43% of all cross-border transactions. The dollar's value is strong as measured by central bank reserves -- 61% of these foreign currency reserves are in dollars.

 

China and Russia want an alternative to the US dollar and it could happen but it would take a tremendous amount work and resolve…

 

Altogether, foreign countries own more than $5 trillion in U.S. debt. If China, Japan or other major holders started dumping these holdings of Treasury notes on the secondary market, this could cause a panic leading to collapse. China owns more than $1 trillion in U.S. Treasuries. That's because China pegs its currency, the yuan, to the dollar. This keeps the prices of its exports to the U.S. relatively cheap.

 

Zha Xiaogang, a researcher at the Shanghai Institutes for International Studies, recently said:
 

The shortcomings of the current international monetary system pose a big threat to China's economy."

That's why China is now actively taking steps to phase out the U.S. dollar because of its frustration with the U.S. government's mismanagement of our currency. And how does our government respond? We have the audacity to label China a "currency manipulator!"

 

A few weeks ago I wrote a series of articles (including a free handbook) about how the government cannot even give us the truth about inflation.  Its number do not take into account health care costs, food prices or the cost of energy…all of which are crushing the finances of Middle Class Americans.

 

 

1.        The faith of citizens in the dollar, and our government finally evaporates.  We may be closer to that then what most think (but don’t worry, the government is spending full tilt to prepare for massive citizen uprisings.  This is one of the reasons DHS is militarizing local police forces).

2.       The faith in the US dollar by our debt holders and international investors fails.  To a degree, this is already taking place, especially in China, Russia and many other countries.

3.       The faith of our allies in Europe erodes due to the lack of leadership shown by Pres. Obama.  This too is already taking place with many in Europe looking to Germany for leadership.

4.       A national economic default or re-issue of a new currency.  This too is in the planning stage as is a federal takeover of all retirement accounts (mandating all retirement accounts be held in US investments).

5.       If our so-called leaders default on Social Security there will be hell to pay and civil strife like this country hasn’t seen since the Civil War.

6.       If the government pulls another FDR stunt whereby all citizens must turn their gold over to government authorities.

7.       Debt is a form of slavery.  International bankers run our money supply and citizens are in debt beyond anything reasonable.  It is virtually impossible for the nation to get out of debt short of default and that applies to many citizens as well.  As jobs pay less and offer zero benefits, many will no longer be able to afford to live here.  We’ve already lost 10% of the middle class and more people are leaving the US to live in cheaper countries.  More than 50% of citizens get some kind of government assistance usually in the form of food stamps, Section 8 housing, etc.  If those benefits are eliminated, chaos will reign.

8.       Public sector workers in many communities were over-compensated and promised gold-plated retirement benefits which taxes can no longer support.  Detroit is an example of 50 years of Democratic rule which bankrupted the city, killed public services and fostered a massive population exodus.  Many other cities will go the same route creating a lot of unhappy retirees (most public sector employees only had to work 20 years to get a full pension and benefits & politicians get EVEN better benefits from feeding at the public trough).

9.       Roughly 30% Americans have no emergency fund nor know how to budget or as the old adage states “most Americans are only a paycheck away from being homeless.”  If Washington whittles away or eliminates the various lifelines, civil rest will ensue.

10.   As the government continues to bankrupt the nation and trounce our Bill of Rights, enough folks will get angry and they won’t take it.  This is what has happened throughout history.

 

 

Someone once said that every form of government has one characteristic peculiar to it and if that characteristic is lost, the government will fall. In a monarchy, it is affection and respect for the royal family. If that is lost the monarch is lost. In a dictatorship, it is fear. If the people stop fearing the dictator he'll lose power. In a representative government such as ours, it is virtue. If virtue goes, the government fails. Are we choosing paths that are politically expedient and morally questionable? Are we in truth losing our virtue? . . . If so, we may be nearer the dustbin of history than we realize.

 

 

In many respects, America is at the end of its empire and a dollar collapse is possible, but not probable.

 

We’ve squandered our resources engaging in wars that enrich corporate America.  We have created a bizarre, unfair tax system which rewards the rich and works against small business owners and job creation.  Our legal system works well for the rich but no so well for the poor (we have more people in prison than any other nation).  We have more laws, rules and regulations (created primarily by unelected bureaucrats) than any other nation and it is choking the vitality out of our country.

 

If you read through this list, you probably discovered a common thread – FAITH in the system and how it is being eroded by dysfunctional politicians and bureaucrats at every level of government.

 

What’s truly sad is the fact there are so many spineless citizens who do not have a clue as to what is happening, to how our country is being destroyed from within.

 

This is actually the NUMBER ONE CAUSE OF OUR DESTRUCTION – citizens who do not care.

 

A dollar collapse is when the value of the dollar falls so fast that all those who hold dollars panic, and sell them at any cost. In this scenario, sellers would include: foreign governments who hold U.S. Treasuries, traders in exchange rate futures who trade the dollar versus other currencies, and individual investors who demand assets denominated in anything other than dollars.

 

What Would Cause This to Happen?

Several conditions must be in place before the dollar could collapse. First, there must be an underlying weakness. Second, there must be a viable currency alternative for everyone to stampede into. Third, a triggering event would need to occur.

The first condition does exist. The dollar declined 54.7% against the euro between 2002 and 2012. Why? The U.S. debt nearly tripled during that time period, from $5.9 trillion to $15 trillion. This increases the chance the U.S. will let the dollar's value slide, allowing it to repay the debt with cheaper money.

The economies of Japan and China are dependent on U.S. consumers. They know that if they sell their dollars, their products will cost more in the U.S., and their economies will suffer. Right now, it's still in their best interest to hold onto their dollar reserves.

China and Japan are selling more to other Asian countries, who are gradually becoming wealthier. However, the U.S. is still the best market in the world.

 

SIDEBAR:

Naomi Wolf’s 10 key steps to close down an open society: a dictator's blueprint:

1.       Invoke an internal and external threat 2. Secret prisons where torture takes place 3. Develop a paramilitary force 4. Surveil ordinary citizens 5. Infiltrate citizens' groups 6. Detain and release ordinary citizens 7. Target key individuals  8. Restrict the press 9. Recast criticism as espionage and dissent as treason 10. Subvert the rule of law…

 

 

The signs of collapse are everywhere…

 

However, there are many who believe we cannot, as a nation, default on our obligations…

The economies of Japan and China are dependent on U.S. consumers. They know that if they sell their dollars, their products will cost more in the U.S., and their economies will suffer. Right now, it's still in their best interest to hold onto their dollar reserves.

China and Japan are selling more to other Asian countries, who are gradually becoming wealthier. However, the U.S. is still the best market in the world so why ruin your best customer?

A sudden dollar collapse would create global economic turmoil as investors rush to other currencies, such as the euro, or other assets, such as gold and silver.

 

“There is never a risk of default for a sovereign nation that issues its own free-floating currency and where its debts are denominated in that currency.” Mike Norman, Chief Economist for John Thomas Financial

 

Technically, this is true but in reality, the US would simply reissue a new currency and perhaps force Americans to turn in their gold or mandate all retirement accounts be switched over to government securities.  There is already a plan in place.

 

Judging by the past few Presidential administrations, freedom and Democracy are on shaky grounds in the US…Anti-citizen laws such as the un-Patriot Act have destroyed privacy, restricted our right to travel, militarized our local police and worse. Americans should prepare for a just-in-case scenario – hold physical supplies of gold and silver and other hard assets such as mortgage-free land.

 

What would happen if the US did default?

http://www.depositaccounts.com/blog/what-happens-if-the-us-defaults-on-its-debt.html

 

Traits Common to Declining Cultures...

Obsession with beauty

Decline of the middle class

Increase of violence (primarily among young)

Decline of the family

Decline of morals

Increase of immorality and ethics among leaders

An insolvent government

Failure of its people to see the decline

A decline in literacy and education

Decline of a belief in a Supreme Being

 

Documentaries For Americans

As an independent thinker, I find it important to open your eyes and see the world for what it is. There are many disturbing things going on in this country, and when we try to discuss it, it becomes a ‘Us vs. Them’  kind of battle.

http://www.imdb.com/list/EMJJibS25wE/?ref_=ttqu_rls_3

 

 

 

 

A New Social Security Ponzi Scheme?

 

"Let's do more to help Americans save for retirement. Today, most workers don't have a pension. A Social Security check often isn't enough on its own. And while the stock market has doubled over the last five years, that doesn't help folks who don't have 401ks. That's why tomorrow I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It's a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everybody in this chamber can."

What are the differences between MyRA and Social Security? One difference is that MyRA will be voluntary — at least for now.

Another is that your MyRA account will have your name on it... although it is not too different from Social Security in that respect. Social Security does tell you how much you can expect to receive when you retire.

But there are also striking similarities between the proposed MyRA and Social Security. The main similarity is that the Treasury will take your money and spend all surplus funds.

For many decades, the government has spent the surplus money from Social Security. The government would collect Social Security taxes in excess of what it had to pay out in Social Security benefits, and the rest would be dumped into the general fund and spent.

There is no Social Security lockbox. There is a Social Security trust fund filled up with a bunch of IOUs from the government. Social Security holds more government debt than China.

This is how Bill Clinton was able to claim budget surpluses in the late 1990s. The government was still running a deficit, but the surplus funds from Social Security were enough to cover it. It has all been an accounting gimmick.

But with the major recession that began in 2008 came smaller than expected tax collections. In addition, we have seen the start of baby boomers hitting retirement age.

So in the last few years, we have seen an end to Social Security surpluses. And as Social Security goes further into deficit, the government is desperate for new funds...

What better way than to start a whole new Social Security-like Ponzi scheme?

Now the government can get more money for the Treasury to spend and write more IOUs. This time, the IOUs will be held by individual investors in their MyRA accounts instead of the Social Security trust fund.

As most of us have learned, government cannot be trusted to be good stewards of public monies and resources…

 

Until the next revolution,

Bruce ‘the Poor Man’

 

The Poor Man has been educating Americans about the systematic plundering of their resources and way of life and what they can do about it since 1999. Our Mission: To protect and promote your freedom, civil rights, financial well being and overall self reliance in these turbulent times.     

Encourage your fellow Americans to wake up and smell the country. Share our resources!

www.PoorManSurvival.com

 

 

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We are trapped-Is there a way out?

We are trapped. There is no way out.

Read through this short critical briefing to download your free Family Survival reports…

You may not think things are THAT BAD in the U.S. economy, or that our government spending is not "that bad," and I don't want to overwhelm you with numbers, but consider just one simple fact...

 

Every single hour, of every single day, the U.S. government spends about $200 million that it doesn't have.

For a point of reference, consider that in just two months, the government borrows more money than the combined annual profits of the 100 biggest publicly traded companies in America.

 

Although to most Americans everything seems calm... and that we are enjoying an economic recovery, I can promise you this:

Unique to our country the only thing which has kept us ‘solvent’ is our ability to just print more money…

 

The dollar forms the basis of the world's financial system. It is what banks around the world hold in reserve against their loans.



As things stand now, the U.S. government can't go broke in any ordinary sense of the word because it can simply print dollars to pay for its bad debts. (It's been doing so since March of 2009.)  Stay tuned for our next newsletter about the Top 10 Things Which Could Mean the Downfall of the US Dollar.

 

Protect your future with these free reports offered by the Poor Man Survival crew. Build your skills and reserves now.  These reports are free of charge.  Find more free resources at PoorManSurvival.com

 

Build Your Financial Safety Net, Surviving the Collapse, Work Less-Earn More

http://sdrv.ms/1dUnh9O

Homemade Hooch, Grandma's Cough Syrup, Insects as Food, Freebies

Poor Man Survival

Self Reliance tools for independent minded people…

http://PoorManSurvivor.net

 

ISSN 2161-5543

 

When you take charge of your life, there is no longer a need to ask permission of other people or society at large. When you ask permission, you give someone veto power over your life.
- Geoffrey F. Abert

 

  I’m bidding for a real still at an online auction.  This is what prompted this article and the fact hooch of any kind makes for a good barter commodity. Federal law (what a fricking surprise) limits how much beer or wine you legally make for home consumption.  You check the law in your state too, before you go crazy cooking up large batches…of course, one could always say they’re making fuel for autos!

 

DIY Bourbon and Stills-A Tasty Skill to Develop

 

Making Tennessee Whiskey and Kentucky Bourbon is not much different, it’s just a slightly different recipe and you miss out one of the steps that you would use when making the Tennessee Whiskey.

A lot of my friends drink Jack Daniel's Tennessee Whiskey and I already have built a still, the instructable is here for how I built it, you will need one like this which is a Pot Still. The point is I was looking for a project to keep me busy and even though I don't drink JD my self I thought I would have a stab at making it my self just for the challenge.

there is a lot of information from peoples how  to recipes for bourbon or Tennessee Whiskey but I wanted JD so I spent over a  month most of my evenings looking in to how to make it and trying to find as much information about JD's actual method and I found various articles and video snippets with fragments of information from people who work at the JD Distillery.

Thanks to that information I have gathered I have come up with a way to produce this my self at home as close to how they make it as is practically possible for my self.

Just a bit of a heads up because I wanted to document this so well I have taken tons of pictures, so there is a lot of images but I am hoping that wont be a bad thing as they are all good quality. well except the video on charcoal which went weird at the beginning because of youtubes codecs for some reason.

This instructable is the result of a few months of research, over 2 months of experimenting, a botched attempt or 2 and a fair sum of money just to get it right...... and i don't even drink the stuff!

You don't have to spend a lot of money yourself to make it, the ingredients and the process does not cost a lot if you have the equipment already, but I had to do a few runs and I spent a fair bit extra to put it in nice bottles and present it well which can be great for gifts.

I would also like to thank the help of the guys over at www.homedistiller.com forums who pointed me in the right direction now and then when I got stuck.

For those who want further reading on home distilling, you cant go wrong with The Home Distillers Workbook, you can get it here http://www.amazon.com/dp/1469989395 they often pop stuff up on their facebook page here https://www.facebook.com/TheHomeDistiller

 

Plus, here’s how to make a still from a keg…

http://www.instructables.com/id/Building-a-Keg-Still-Pot-still-design/

 

NOTE:  Government stupidity during Prohibition created a lot of crooks and millionaires.  Our draconian drug laws have created wealth for the cartels while undermining the Bill of Rights for Americans.  With several states finally defying the fed in terms of marijuana legalization, expect more states to okay its sale and use.  Just about any revenue source that beefs up state coffers is a ‘good’ thing…remember when gambling was illegal until states figured out a way to profit from the practice?!

 

Expect voters in Alaska, Oregon, Arizona, Montana, Massachusetts, Main and Montana to legalize it by 2016.

 

Another batch of homemade, free goodies for you…

(Note:  Be a good neighbor & share these with others)!

 

How to store potatoes to increase shelf life
read more here

 

Grandma's Homemade Cough Syrup

Also great for allergies…

 

Get the recipe plus these free reports:

 

25 Disturbing Facts about Medicine

25 Weird Facts about Food

Secret Sources for Healing Foods & Medicines

 

http://www.poormansurvival.com/Pages/Homemade.aspx

 

Insects for Food-Prep. 101

Appetizer or main course-you decide!

http://www.instructables.com/id/Insects-for-Food-Prep-101/

 

 

Could you make some money by being green? Yes, if you learn to 'upcycle'
read more here

 

When a Bill Collector Calls About a Debt You Don’t Owe

Tell the caller you can’t discuss the debt until you see something in writing.  The collector is required to send written notice of the debt within five days of initially contacting you.  Insist they use snail mail.  Upon receipt you have 30 days to dispute the debt.  Send a certified letter stating you’re unsure you owe this debt asking the collector to verify it.  This buys you time to investigate if a mistake has been made or if you screwed up.  If the collector threatens you it is either a scam or it should be reported to the FTC.

 

The Poor Man has been educating Americans about the systematic plundering of their resources and way of life and what they can do about it since 1999. Our Mission: To protect and promote your freedom, civil rights, financial well being and overall self reliance in these turbulent times.     

Encourage your fellow Americans to wake up and smell the country. Share our resources!

www.PoorManSurvival.com

 

 

   

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You’ll find more than 100 useful items – Updated weekly

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