reply to post by tovenar
Cash flow ends for everyone because people stop getting paid.
If you are worried about the future and what you may do to prepare your friends, family, and country for what may lie ahead, I suggest you pick up a
copy of "Reinventing Collapse", and learn from Orlov's experience. He gives us a clear vision of what to expect, including which strategies worked
best for individuals, and what items proved most valuable to stock up for barter use when cash has no value because the economy crashed. What you
learn from the past can help you to navigate a course through the future. I can recommend the book wholeheartedly, even as I respectfully disagree
with some of his conclusions.
Dmitry Orlov calls the Five Stages of Collapse.
Stage 1: Financial Collapse
Stage 2: Commercial Collapse
Stage 3: Political Collapse
Stage 4: Social Collapse
Stage 5: Cultural Collapse
When the Soviet Union collapsed, many of its state run systems continued to function. For example, most Soviets lived in public housing, fueled by
public utilities, and they got around using public transportation. When their economic system went down, even though few people had much or any usable
cash, their homes were still heated and not boarded up, the lights stayed on, and they could still get around using buses and trains. Here in America,
the free market and privatization makes ours a very different story. When we stop paying our bills, the lights go out and the banks take our homes. If
you don't have money for gas, or happen to live where trains and buses don't go where you need to go, your only recourse is to walk or hitch hike.
When cash stops flowing, paychecks halt immediately and services screech to a halt.
The public has no clue just how weak and vulnerable the U.S. banking system has become. At one time, the United States had a fractional reserve
banking system backed by physical gold money. Today, its financial system is entirely based on a fiat monetary regime with practically no fractional
reserve ratio whatsoever. I remember watching Peter Schiff on CNBC and Fox Business between the years of 2005-2007 debating about the upcoming
collapse of the mortgage and housing markets. On several occasions, Schiff was the laughing stock on the set as anchors and other guests thought he
was simply crazy in his forecasts. By 2008, the laughs had stopped while the country watched as the U.S. housing values began their rapid decline that
would eventually surpass the disastrous records set during the 1930’s Great Depression.
When will the manipulation end? I my view it will end when the U.S. enters into STAGE 2 or the Commercial Collapse which Dmitry Orlov talks about. At
that point all faith that “the market shall provide” is lost. Money is devalued and/or becomes scarce, commodities are hoarded, import and retail
chains break down, and widespread shortages of survival necessities become the norm. According to Orlov, a country does not have to systematically go
through all five stages of collapse. But when the financial collapse occurs, the commercial collapse is sure to follow. With all things considered,
Orlov believes the overall conditions are far worse in the United States today than they were for the U.S.S.R in 1989.
While, the U.S. Govt. and Wall Street may be able to postpone the inevitable for a while longer by printing more dollar digits, issuing more paper
treasuries and manufacturing more derivatives, these are temporary solutions. When SHTF I can't predict which will play out in various circumstances,
but we should be aware that the U.S. has millions of military veterans and millions of weapons. The USSR had the vets but not the weapons in private
hands. People will eventually choose to support an alternative to criminal/mob rule, unless the criminal gang is the only alternative to something
worse. As the most heavily armed society in the developed world, the U.S. can easily go the way of well-armed criminal gangs controlling urban zones
or well-armed militia sprouting up to take out the criminals. There is historical precedents for either scenario. My point is simply that a heavily
armed culture with tens of millions of firearm-trained vets is not going to follow the route of the former USSR and any case wandering around as a
homeless migrant is not a good survival strategy.