The New New Deal: take half or lose it all.

In a bit of news that, sadly, was completely expected and predictable, smaller cities are now giving their workers the bad news: give up half your pension voluntarily or lose it all involuntarily.  Go ahead and read it because it is the model for the future.  What cannot be paid will not be paid.  Wimpy promises of all kinds from the government literally aren't worth the toilet paper they are written on.  The people will probably lose it all anyway even if they give up half today because possession is 9/10ths of the law.  The city has the retirement money and the city is claiming ownership of it simply because the city has possession of it (at least in name). This was always expected to start with the marginal players and I have pointed out many times the significance of NJ Governor Chris Christie's statements that city (and state) employees who actually thought they were going to get what they were contractually promised by government are themselves guilty of listening to "fairy tale promises".  When a sitting governor of a state tells people that their government contracts are worthless because there is no money to pay them, well, you just can't intelligently ignore it.

The carnage isn't over, or even nearly over.  Folks, it's just getting started.  The carnage *should* be in full swing by now but Bernanke fired up the printing presses and changed the rules and did everything under the sun to delay (not eliminate) the day of economic reckoning. Trust me, he's running out of gas and the big public debate about the debt ceiling is proof.  All Bernanke has done is to make the carnage worse when it finally does come.  Of that I am 100% sure.  That con man is selling you, me, your children and all the peoples of the world down the river.  Bernanke is guilty of treason by reason of following through with traitor Alan Greenspan's grand scam instead of shutting it down like he should have done.

Every promise made to you by politicians, business, government, banks, insurance companies and other big dogs in the military industrial complex's grand debt Ponzi is suspect.  You have to be in the Kubler-Ross denial stage not to see it.  If everyone could get everything they were promised then nobody would lose anything which would mean that real, sustainable debt based prosperity is actually possible.  I'm here to tell you that it's not possible and that believing that it is possible just because some government con man says so is a fool's errand.  Thus, the majority of the participants have to lose something in order to pay the price.  They will not be asked to pay.  They will be told to pay.  The city workers of Central Falls, RI. are paying with at least half their pensions.  Everyone is going to have to pay something at some point and I'm talking major bucks here.  Remember, the amount you owe is about equal to whatever your pretax annual salary is.

Because of the amount of global debt that is out there which must collapse we will see cities and even states declare bankruptcy before the United States government itself has to bow to insolvency.  This is a given.  The only question is what will happen then.  This is potentially a very big deal that each person should take time to consider because nobody anywhere is free of the scam.  The putrid stench of fiat currency and fractional reserve banking can be smelled in every city, state and country in the world.  Why else would the Swiss - the owners of one of the most trusted fiat currencies in the world (it's like claiming fame for having the least stinky feet...) be discussing a parallel gold based currency.  Why else would the money-savvy LDS people of Utah enact laws reinstating gold and silver coins to be untaxable legal tender?  Do you think these people are all headed toward gold for their health?  Really?  REALLY???

People the world over are losing confidence in the con game at a very rapid pace.  I hate to say it but I don't think there is going to be any way to avoid significant violence, turbulence and disorder.  After all, people tend to get a little upset when someone tells them that everything they have been working for all their lives was a lie spoken to them by liars. 

Nobody knows exactly how the future will play out but things are looking pretty bad.  Smart people will take some precautions.  They will store some dry goods and nonperishable food stuffs.  They will ensure that they have a clean water supply even if the city water supply is disrupted due to strikes, terrorism or lack of money to keep it going.  They will have some honest money in the form of gold and silver coins and they will arm themselves in order to protect their families from those who didn't bother to make any preparations.  Desperate people do desperate things and people in America are so used to having so much that if the bottom drops out (like I think is very possible if not probable) they will say or do anything to get what they think they need.  In other words, buy a gun, learn how to use and store it safely.  Become a proficient marksman and store plenty of ammunition in your home.  I can't say that you will certainly need these things but you can't with certainty tell me you won't.  I'd rather err on the side of caution.

PS: It's still not too late to vote for Ron Paul in 2012.  He is the only politician who calls the government scam exactly what it is: a con game.

PSS: When it comes to money, In gold we trust.  Nothing else is money.