A low grade civil war is afoot in America’s streets. While the stock market has reached historical peaks, homelessness, especially among young adults, has never been higher. With a spate of new ‘anti-poverty’ laws by various municipalities, the homeless are virtually now criminals by definition.
Foreclosures in Washington State continue to rise. Unemployment, instead of yielding to reduction, is falling off the radar as benefits are cut/eliminated and the long term unemployed (no longer counted) finally give up hope altogether. Food stamps are being cut and pensions stolen either outright through chapter 11 filings or by the fiat of converting defined benefits to the vagaries of the marketplace. Those who have worked their entire lives to secure some degree of certainty in their old age are witnessing the wholesale decimation of their nest eggs. Geezers don’t riot. Incredibly, the pensions of retired veterans are on the block. Some U.S. legislators propose to dishonor its promises to those who risked their lives to defend it.
Even conservative economists now assert the unprecedented gulf in resources available to the nation’s swells and the poor is crippling recovery. Is this a temporary stumbling block or an ominous failure of the foundation sustaining America as we know it? Will those who anticipated such a calamity simply be dispossessed as were Japanese Americans during WWII and many modern day erstwhile allies (dictators in the service of U.S. interests)? Any number of U.S. citizens have tales to tell of their homes/assets being seized with virtually no due process through kangaroo courts if provided even that fig leaf of legitimacy.
And that’s what’s going down during the ‘good’ times. Yet, America has a deplorable historical record during bad times or when its back is against the wall–especially for a nation which habitually manages by crisis. To paraphrase Lincoln, can a house divided against itself long stand? Will America succumb to temporarily gratify a false sense of entitlement held by the few? Will the man who steals a goose from the commons continue to face jail while those who steal the entire commons are rewarded?
Paper Wealth on the Rocks
by N. Morgan
If an economic collapse occurs, many things in this country and in the world will change and change drastically. There are some primary events, that could determine exactly how these things will happen. They would include major collapses in the bond and stock markets and possible sudden deflation (primarily of assets), followed by dramatic inflation, if not hyperinflation (primarily of commodities), followed by a crash of several major currencies, particularly the euro and the US dollar.
However, secondary events are less certain, but likely to occur, are: increased unemployment, currency controls, protective tariffs, severe depression, etc.
The other factors are how the govt. would handle such events. If they panic, we could be on total lock-down. If they feel they need to put the hammer down, as it were, we could be living in a total police state, prison society. [Some argue this slide is well underway.]
Here’s a list of possible scenarios that I found:
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Travel Restrictions. This will begin with restrictions on foreign travel, including suspension/removal of passports. (This has begun in a small way in both the EU and US.) Later, travel restrictions will be extended within the boundaries of countries (highway checkpoints, etc.)
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Confiscation of wealth. The EU has instituted the confiscation of bank accounts, which can be expected to become an international form of governmental theft. This does not automatically mean that other assets, such as precious metals and real estate will also be confiscated, but it does mean that the barrier for confiscation has been eliminated. There is therefore no reason to assume that any asset is safe from any government that approves theft through bail-ins.
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Food Shortages. The food industry operates on very small profit margins and survives only as a result of quick payment of invoices. With dramatic inflation, marginal businesses (suppliers, wholesalers, and retailers) will fall by the wayside. The percentage of failing businesses will be dependent upon the duration and severity of the inflationary trend.
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Squatters Rebellions. A dramatic increase in the number of home and business foreclosures will result in homelessness for anyone whose debt exceeds his ability to pay—even those who presently appear to be well-off. As numbers rise significantly, a new homeless class will be created amongst the former middle class. As they become more numerous, large scale ownership of property may give way to large scale “possession” of property.
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Riots. These will likely happen spontaneously due to the above conditions, but if not, governments will create them to justify their desire for greater control of the masses.
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Martial Law. The US has already prepared for this, with the passing of the 2012 National Defense Authorization Act (NDAA), which many interpret as declaring the US to be a “battlefield.” The NDAA allows the suspension of habeas corpus, indefinite detention, and the assumption that any resident may be considered an enemy combatant. Similar legislation may be expected in other countries that perceive martial law as a solution to civil unrest.
