[aside: I highly recommend the Crash Course – the information wasn’t new to me but I had never seen anyone bring all the pieces together in one place – if you are interested in understanding the challenges we face (economics, energy, demographics) you should watch this video series – lots of cool charts too]
“This certain end date is roughly when the parabolic curve goes vertical …”
George Ure (www. urbansurvival.com) maintains that 83.5 years is when the vertical portion of the curve is reached – some dates when we might start this 83.5 year timeframe:
– 1913 inception of the Federal Reserve
– 1933 confiscation of gold
– 1971 closure of the gold window
using these three dates we get a failure of the US dollar system in 1996, 2016 or 2054
one of the ways we can measure the ongoing death of a fiat currency is by counting how many dollars of new debt it takes to create one dollar of new GDP – in an ideal world the ratio would be 1:1 – in our current world it takes over 6 dollars of new debt to create one dollar of new GDP (how sustainable is that?)
the key point to take away is that the end point of a fiat currency IS mathematically predictable
“The risks are too high just to guess what will happen if we pull lever X instead of lever Y when the end comes. So you pick a country a lot like America. Productive, hardworking, modern, agricultural, having a corrupt, spendthrift political class and an uninvolved, unassuming, spendthrift-but-hardworking middle class—a country the most like America. And you run a little experiment. … A nation like, oh, Argentina.”
for those of you wondering why anyone would do this to a productive country?
“Once all the assets in the country had been discounted a minimum of 73%, the insiders then repatriated their money and bought their neighbor’s fortunes for pennies on the dollar, finding cheap, hungry, competitive labor, ready to compete with even 3rd world wages. The prudent, hard-working, and savers (the wrong people) were wiped out, and the money was transferred to the speculators and insiders (the right people). ”
what might the Argentina scenario accomplish in America?
“In a single stroke you:
a) lose the burden of external debt
b) by devaluation lose your internal debt
c) make the nation competitive as a manufacturing power.
d) scare the people back into compliance, even exultation with their low wages.
e) with the renewal of manufacturing, re-cast the power that your military rests on
f) during a time of Peak Oil, radically reduce unnecessary consumption while insuring strategic (military) supply.
g) by doing that, suck in the oil powers of Russia, Iran, and Venezuela enough to knock them off-base, first with high prices, then low prices.
h) club China into submission to the G-8 money powers again
and best of all:
i) enrich insiders beyond their wildest dreams, insuring their dominance for a generation to come. ”
