Wednesday, September 14, 2016

Bill Bonner totally gets it.

I just sat through Bill Bonner's latest "wake up call" video and all I can say is that he gets it.  The country's debt, he has recently figured out, is not the issue.  The real issue is that our country runs on a fake money supply which consists mostly of credit/debt.  Since there is essentially no cash in the system, the entire system RELIES on confidence in the system to run.

But what happens if people lose confidence in the system??  Simply put, the credit will dry up overnight because nobody will trust anyone else to pay their debts.  Banks will stop loaning for real estate and so the only house sales that will occur will be those for cash.  When the people realize that nobody can get a loan in order to buy their house, those who have to move will either accept peanuts for their paid off house OR they will just walk away and leave it to the bank.

As Bonner explains, the infrastructure has no cash in it and so if credit is no longer available or accepted, supply lines WILL be disrupted.  Stuff that people expect to "just work" will simply not work and there will be nobody there to complain to.  This is why hoarding gold and silver will not be good enough. Thinking people will also ensure that they have enough food to feed themselves for what could be an extended economic siege as the fake money supply self destructs.

Of course, many have made no preparations.  Many don't even cook for themselves anymore; they now rely on restaurants for most of their meals.  Those poor saps don't have even 2 days of food on hand.  And even those who do their own cooking are unlikely to have more than 2 weeks worth of food on hand.  What if the problems take longer than that to sort?  What if they take 2 weeks?  2 months?  Heck, the collapse of the world's reserve currency could see the US enter a crisis state that lasts years.

I've been writing these things longer than I even heard about Bill Bonner.  I know they will happen someday because our entire economic system is quite simply a fucking debt Ponzi.  No Ponzi looks like it is ever at risk of collapse until almost the very minute that it does collapse.  So don't think to yourself "I don't see anything wrong, no reason to consider his words".  Trust me, I know more than 99.9% of the population about this stuff because I have been studying and watching it for many years now.  No casual observer, regardless of how smart, can replace these years of observing and thinking about this subject.  That most likely includes you.

Nobody knows when a Ponzi will collapse because the herd can be unpredictable.  But we do know that each day thousands of boomers throw in the towel on productive careers and begin to consume without producing.  At some point the government will show its desperation at supporting all these new mouths to feed and that feeling will be felt by the herd.  When the herd loses confidence in the issuing authority of the fake money, the fake money system has very little time remaining.

- Be sure you have 3-6 months of nonperishable food for every family member.
- Have guns and ammo to stop crazed Gerald Celente zombies who have "lost it" and who are panicked.
- Don't store any unnecessary cash in the bank.
- Have gold and silver coins in your physical possession.  At first they will be useless because there will be nothing to spend it on due to supply chain interruptions. But at some point when the supplies do finally arrive, nobody will want your credit card and nobody will want your fake paper money in exchange for them.  That is when gold and silver physical metal will come in very, very handy.

Think about this situation BEFORE it happens; don't wait until it becomes panic city to do anything about it because it will be dangerous out there.

Do yourself a favor and sit through Bonner's entire video.  You can put down facebook and snapchat long enough for that, right?


Augustine said...


Having lived through a freeze of bank accounts and price controls, I've witnessed the shelves in groceries stores in a 12 million people city go empty in a couple of days due to the collapse of credit and supply chains.

Since home cooking is a cherished tradition in my country, most people just lived off their regular food stock for a couple of weeks until credit started flowing again and price controls mostly lifted. However, what was a habit of most people in my country is not in America, where most eat out of a box or take out.

Again, disruptions can happen, from small scale ones due to floods and middle scale ones due to tropical storms to large scale ones due to government graft. Preparedness in the form of an emergency food stock is common sense.

When the aspiring government officials refer to almost half of adults as a bunch of deplorables, do not count that the state's hand is going to be a helping one, but watch for the back of its hand or its fist.

The Captain said...

You should do a guest post on the subject. Your experience is very applicable to the crisis that must eventually befall not only the US but all nations whose currency and economies depend on the dollar and dollar based trade settlement. When the US goes down it won't be the US alone. It will be the world. The US is now the central bank of the world.

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