We’ve woken up the last couple of days to protesting and rioting in both Greece and Spain. But who cares? It’s on the other side of the ocean, doesn’t affect us, so like I said…who cares? First off, they are protesting for a reason, the reason being “austerity” and everything that goes along with it. The future holds higher taxes, less free lunches and lower services such as the police responding to your calls.
Greeks, Spaniards and recently Italians have responded by pulling balances from their banks and moved them to banks in other nations and I am sure some into precious metals. These actions alone have put further pressure on the respective sovereign governments because a failing banking system not only is harmful to the economy but lowers the demand for government bonds which these Ponzi ites live off of.
When I asked “who cares?,” …you should. You should care because this very same phenomenon will make its way here to American shores. Whether it be because some bank fails in rural Spain and spreads or because our banks have the same, only bigger, problems, it does not matter. Yes I know… but, but what about QE#374? “They’ll never let it happen here” is the refrain and you’re correct… they will try to avoid it. But, I believe that the derivatives markets are so big and so overwhelming that (not to mention intertwined and complicated) that the ultimate collapse will arrive here unannounced and uninvited.
The U.S. is not immune from the “austerity measures” that are being introduced now in parts of Europe, it is only delayed because we have the reserve currency. Math is math and the math does not and cannot add up here or anywhere for that matter. Pensions, benefits and even “account balances” will be cut and the protests will be on. I can only advise that you foresee this coming and don’t become part of the crowds that will gather in anger because their bacon was taken. Know that it’s coming and prepare for it.
Plan for as many aspects of your life as you can. As an example (because I believe my own bull as they say), I arranged today to store 1 year’s worth of hay for my horse. He has to eat and I will have transportation albeit a little slower than usual when gas doesn’t flow. Please understand that at the core of all of this no matter what you are told is that the money is fake. Banks and the credit that they provide will stop dead in it’s tracks. Distribution of all sorts will be disrupted. THE WORST thing that you can possibly do will be to join in with the angry mobs and protest. It will do no good and only put yourself in harms way. Prepare now, go into hiding later and hopefully we will experience a reset where the “wealth” that you stored in barbarous relics and the their producers will serve you later. I say “hopefully” because in a world that is without “law”, you can have mighty wealth but never get the chance to enjoy the fruits of your labor and intelligence.
Call me nuts or negative if you like. I am calling it as I see it and I see it as everything is “hollowed out” and will not function. Yes, the PPT can support the equity markets and the central banks can “fund” treasury auctions, this does change the fact that the global financial foundation is cracked and crumbling. “What a riot” will soon have a new meaning… even to Americans.