Fasten Your Seat Belts - Preparingfor a Financial Crash Landing - Part One - February 11, 2008

Lone Star is in the house . . . I bumped you up a couple of stars.

I am apprehensive about all the financial news but not sure how it will all play out. I am already living very close to the bone with few extra luxuries except ones that will keep me healthy and ones that will help me get some new skills.

I do have some extra food, which is a luxury I never used to have, but now seems imperative for so many reasons.

I'll tell you if everyone lived like I do, this economy surely would grind to a halt. I only buy secondhand, or if something is on sale 50% off, pretty much. I watch sales and buy when things are deeply discounted, and then I hope I only buy what I need. Two for one is my price point of choice.

I hope nobody is relying on me to jump start the economy!

Thanks Mercury.

Fat people on SSI or welfare are the big shopping spenders.
That's because all their living expenses are free and the thou per month can be spent on anything.

Ouch. I guess that confirms my decision too. Sell the house for what I owe and watch it all fall...

Dude, do some research. Most people on SSI are not like that. Many may not be as frugal as they should be, but the living expenses are not free. I honestly doubt seniors on SSI who cannot pay for their meds would agree with you.

Thank you Mopar, I'll give you five. It is really a bad situation and I feel that a lot of us members here on GLP seem to be echoing a broken record, if you will. And that is not to sound terse but that a very disturbing trend is very apparent regarding the state of economic affairs in this world, let alone the U.S. From a personal standpoint, I've noticed a large drop in sales/service with my own company in the last few years. My father and I own a plumbing outfit and have seen quite a drop off in our business. My Dad is on verge of retirement, and I am seriously considering other options if things continue going south. But then again, if everything is going south, I don't know what my options would be, let alone everyone else's. Kind of like being on the Titanic where everyone who remained without the option of a life boat, are jockeying for position at the stern of the vessel while the band (media) is still playing. Strangely ironic how that analogy represents our current state of affairs?

The name Gary North rang out WARNING BELLS as I started to read this post and to messages I have recieved in spirit on Janurary the Second 2008, and Y2K, another major plot to undermine the operating systems, or TIME has RUN OUT for everyone = 2013. It means a 'reboot' of the planetary monetary systems with Nesara. Out with the older Draconian version the binds us to the Antichrist.

Gary North & Y2K

In his November and December newsletters, Gary North has quite explicitly abandoned y2k as God’s judgment, and returned to his plans for developing an online publishing house for Christian Reconstruction in the year 2000. The transition will not be as easy for many on his roller coaster ride from cataclysmic judgment to everything-as-usual. Many lives have been dislocated or ruined, partly from their own folly, partly from the machinations of an accomplished scoundrel. Each had their own motive for being misled, from Art Bell and his listeners to Ed Yourdon, from Internet neophytes to the fringe extreme. Many saw aspects of themselves they never knew existed, the barbarous subterranean just beneath the surface of civilized life erupting through groveling insecurity and fear, played as by a consummate artist. Others proudly discovered a new ethic of Christian survivalism. Either way Gary has moved on, ushering to the metronome of his boorish catechization a new remnant of devotees into Gary Christendom, the knave in the image of God, the abyss of raging impotence. [link to www.serve.com]

Thank you "mopar28m" ! ! Your post is AWESOME!!

It's like our leaders think America is the UNSINKABLE Titantic. In a television documentary on the Titantic, one woman at the time exclaimed, "Why, to say that ship is unsinkable flies in the face of God!"

Your post indicates that same hubris, that same arrogant presumption on the part of our leaders:

"In an attempt to be bigger than God the American government has expanded beyond all reasonable limits and people all over the world are suffering for it. Perspective on the megalomania of the American government can be easily seen through a trip down memory lane."

It's sad that the greatest nation in the history of the world, at the zenith of its greatness, would foolishly bankrupt itself, just throw it all away.

There was an interesting article in Sunday's paper, "How to Rebuild Fiscal Strength" by a Kenneth A. Hahn.

Mr. Hahn says:

"I think most Americans are now finally at the threshold of questioning the truth and honesty of politicians. It is time for Americans to take their country back."

"This means forcing Congress to pass laws to balance the budget and eliminate loopholes for spending more revenue than we take in."

These objectives "seem impossible. But they're not if we fool the politicians by doing something they don't expect: working together as Americans for our common welfare."

Mr. Hahn suggests "we put our own personal agendas aside for the next four years and push for a united agenda with whomever is elected."

Now I'm reading about banks thinking about allowing foreclosured owners a new deal: own to rent

In other words, instead of being kicked out of your house should you go into foreclosure, you can rent it back from the bank!

Isn't that nice of banks to consider this option? Hmm, I wonder how much rent they'll charge. Either way, the homeowner is out of his/her investment. Talk about owing your soul to the bank.

Although this type of deal will keep former homeowners off the street (does not apply to million-dollar homes); this subprime fiasco is getting quite insane.

Latest figures are 170,000 homes are foreclosured on each month in the USA. Wow.

op, the link?

New trends are coming along with the crash....

Among them are law suits against consumers by banks to recover some of their lost revenue...

before credit card reform credit cards were reluctant to sue consumers who defaulted on credit cards, fearing they would just file bankrupcy and end any chance of collection.

However because of credit card reform, banks have become more ruthless in their collection efforts, they have begun urging their collectin agenciest to sue consumers after debts have been discharged in bankrupcies, and beyond state imposed statute of limitations.

They no longer are intimidated by bankrupcy, knowing full well that the laws they helped write no longer offer protection for consumers against them.

They realize that consumers, who are suffering under the already raised minimum payments imposed by the new law will probably not have enough capital to hire an attorney, even if they break the law.

States are reluctant to intercede on consumer behalf once judgments are imposed.

So, now as consumers begin to loose everything, collection agencies come in and take the rest of their worldly goods... leaving families without any material possessions at all...

the below says it all:

"We now see potential for another 25% to 30% downside over the next two years," says David A. Rosenberg, North American economist for Merrill Lynch (MER), who until recently had expected a much smaller slide. This decline in home prices will wipe out the equity of millions of families who have bought homes since 2000. "A down market is getting baked into expectations," says Chris Flanagan, head of research in JPMorgan Chase's (JPM) asset-backed securities group. "People say: I'm not buying until prices are lower.'" He predicts prices will fall about 25%, bottoming in 2010. This is the classic profile of deflation and its psychology. Such a drop in home values will blow a hole in the balance sheets of banks and households, slicing more than $5 trillion off household wealth.

======

when this happens, prime ARMs resetting cannot be refinanced due to 0 equity.

banks lose the equity postion in their outstanding loans.

people go bankrupt, banks follow.

endgame

I'm with you in that same boat Mercury...And on those two for $5 sales, I still only can afford to buy the one in order to save the $2.50 that I normally would have spent on the other as well...

Silly me, quit my job to try and sell our house. It's been 6mo. and we've only had one showing...no surprise there as brand new homes in Northern California are selling for more than we owe on ours due to the second we took out on it to fix it up and pay off some bills. Am hoping to hear something back from my former boss soon. Seems they do need people and I was a very good employee so hoping she can fit me back into the company's budget. Thank God for my husband's job to get us through but even that is tight. I do have a home based business, but not much prophet to made with that when you're representing another company's goods...

1929: people were a tad more civilized, many refused handouts, most were self reliant
and we had a low population.

Today-I just dont kow what

Fat people on SSI or welfare are the big shopping spenders.
That's because all their living expenses are free and the thou per month can be spent on anything.
</quote>


Its a fact-many lazy slobs and old folks get fat-by being reduced to eating dog food.

THis is a known reportage

This last statement seems a bit unbelievable...do you have a link for this?

[link to www.msnbc.msn.com]

This article says 1.3 million homes were forclosed on last year (approx 108,300 a month?) I could see the numbers hitting close to 200,000 a month in 2008, though a link to something solid would be great.

There were more than 2.2 million foreclosure filings in 2007, a jump of more than 148 per cent from 2005.

[link to www.cbc.ca]

I'm guessing the difference of the two numbers indicates incomplete forclosures in 2007, otherwise, the MSNBC story appears to be a bit off. (Not surprised)

Most all the problems with this country today were anticipated by the founding Fathers.
Our founding Fathers knew this would happen. Although not recognized by most, the key to the solution to today’s problems was planed for and is imbedded in the Constitution for the united states of America. I am surprised that the brilliant minds of the US government haven’t pulled it out and used it. I believe that it is now time to use it. As this country goes into a failsafe mode it must be used.
We do not have to go into another depression nor recession. We can keep our standing in the world as we have since 1776 ,excluding the past few years.
What has happened in the past few years is not the fault of President George Bush. It all started long before that. One of the problems is, that what has been done since 1860 by thousands of people can not be corrected is just four years nor eight years by any one man. I have seen on the news and other places where President George Bush has eluded to solutions to the problem, such as devaluing the dollar to pay the alleged debts of the US government. At this point I will ask the question. (How much do other countries owe to the US government for saving their countries?)
The only country that I believe that has ever repaid their debt to the US government is Germany. So, do we owe the world or does the world owe us?

Some say that the US democracy is insolvent, broke, that they can not pay there debts.
I believe that those alleged debts are fictions, not real. I believe that those alleged debts were created by those before us and before, the ones who are in office now . I believe that the ones who are in office now are not responsible but feel somewhat responsible. I believe that the ones who are in office now want to correct the problems of the past but face so many obstacles that they feel somewhat helpless. They did not do what has been done. They are not responsible for what has been done. They only have two, four, six and eight years to correct any problems of the past. BUT, they can correct those problems of today by using a key, “Ace in the hole” that was placed in the Constitution by our founding fathers for just the particular problem of today.
That key is as follows and you can study and find it for yourselves.
As for America, for those who say that the democracy is insolvent bankrupt, it doesn’t matter because the Republic is not insolvent, bankrupt. This is what is embedded in the Constitution, and planed for by our founding fathers , a failsafe measure for just this kind of situation. The Republic is not broke. The Republic still holds all its assets, land and property. The Republic is not broke and is still the most wealthy nation on earth.
Now , what the US government needs to do is to figure out how to make use of this provision that was foreseen and imbedded into the Constitution by our founding fathers for just this particular time in history. I believe that they will do it and I will be suppressed if they don’t. President George Bush , it is up to you and congress to save the day, and the nation. With your help, this nation will go on for another two hundred years or more and you will be credited for doing the seemingly impossible.
Notes: US was loaned paper notes and paid it back in Gold and Silver,??.
US was loaned paper notes and it was demanded that they pay back in real property,??.
US fought many wars both for and against other countries. US has not been repaid for lives lost nor monetarily, nor for any kind of collateral damages and losses.

the last i heard abt Gary North was he was wnding down his Y2K freezed dried food store..

Protocols for Economic Collapse in America
Quote
And this is how the U.S. Treasury would handle an economic collapse. It’s called the 6900 series of protocols. It would start with declaring a force majeure, which would immediately be interpreted by the marketplaces as a de facto repudiation of debt. Then the SEC and the various regulatory exchanges would anticipate the market’s decline, hour by hour -- when Japan’s markets opened the next day, what would happen when the European markets, and all the inter-linkages of the global markets. On the second day, US Special Forces would be dropped in by parachute in the cities where the twelve Federal Reserve district banks are located.

The origin of these protocols comes from the Department of Defense. This is contingency planning for a variety of post-collapse scenarios. Those scenarios would include, obviously, military collapse, World War III, in other words, and its aftermath. What we’re talking about now is aftermath -- how the aftermath would be handled.

One does not necessarily know how the events would transpire that would cause the collapse, whether it’s military collapse or economic collapse. In World War III, it would become obvious -- when the mushroom cloud started to appear over cities.

Economic collapse scenarios were always premised on the basis of a US declaration of force majeure on debt service. It’s a very extensive scenario. The scenarios are all together, i.e., military, economic, political and social complete destabilization leading to collapse. Then they break down individual scenarios. In the economic collapse scenario, the starting point would be the United States Treasury declaring a force majeure on debt service, which is de facto repudiation, and that’s how it would be interpreted by the world’s capital marketplaces. Then the scenario goes on from there. The US Treasury would obviously declare a force majeure sometime after the European markets had settled down. In other words, they had gone out on the day, which means 11:38 a.m. EDT, our time. They’d wait until the European markets closed, and the US markets had been open for a couple of hours. That’s when they’d determine how to begin the process of unwinding or controlling the collapse to the best extent possible, mainly because they know that the greatest hedge pressure would be people seeking to use other markets to hedge their long exposure in the United States and that the US would be the biggest seller in all the rest of the world’s markets. Therefore you would want to declare the force majeure when the rest of the world’s markets closed. The declaration of force majeure would be precipitated by the declaration that the United States is no longer able to service its debt. That’s pretty simple. Who makes that decision? The Treasury Department. The President does not make that decision. The Secretary of the Treasury does. He has that authority.
You might ask -- wouldn’t he have his arm twisted not to do that?

The answer is that if there isn’t any money left to service the debt, it doesn’t make any difference what the current regime might want to do.

The day of reckoning is now coming. What has happened in the interim, from 2001 to present, is dynamic, global economic deterioration. The economic deterioration visited upon the United States by Bushonomics is not a localized event. It is, in fact, global. We have a planet now that is sinking into a sea of red ink.

The United States is consuming 80% of the planet’s savings rate to finance its debt. The central banks of Germany, Japan and Saudi Arabia are no longer the powerhouses they used to be. Their reserves have now been substantially depleted. They can, therefore, no longer hide the fact that they own a certain number, likely in the trillions of dollars, of U.S. Treasury debt that isn’t being serviced, because they can’t hide it through bookkeeping tricks anymore because their reserves are so depleted.

Therefore somebody has covertly been putting demands on the Bush-Cheney regime for payment. Why do you think 2900 metric tons of gold is depleted from U.S. inventory since March of `01?

Why do you think that $2 billion in currency seized from Iraq last May is now unaccounted for?

Someone is putting demands on the Bush-Cheney regime. Someone is saying to the Bushonian Cabal that -- You’ve got to start servicing this debt because we, foreign central banks, are in nations - European and Asian - whose reserves are now nearly exhausted.

Who could be putting that kind of pressure on them?

It has to be coming from whoever is organizing this thing at the very top, which I would tend to think has got to be most likely a cabal of people that would involve Henry Kissinger, James Baker, George Schultz, possibly William Simon. It would be somebody at the very top that is familiar with how to do this. It would have to be someone familiar with finances.

So would this be one faction of a cabal blackmailing or forcing another faction? No, it’s not really blackmailing. It’s being done out of desperation. The German, Japanese and Saudi central banks are saying to the Bushonian cabal, You’ve got to start servicing this debt because we don’t have the reserves to cover you anymore. We can no longer make it appear that the debt is being serviced because our own reserves are so substantively depleted. Therefore you must begin to cover this debt. If you don’t, then, at some point, we will have to publicly admit in order to save our own necks -- that we were the end buyers of a lot of stealth debt, a lot of debt that your Treasury issued illegally and has never serviced. That would then expose the whole cabal.

The Kissinger-Baker faction are at the top of how this was done on the economic side of the equation. They were not the original insiders so much, but the managers of the conspiracy from the U.S. Treasury, to wit, the U.S. Treasury and Federal Reserve role-play the part.

Take Henry Kissinger. It may not have occurred to anyone why in the last 3 years Henry Kissinger has been back in Washington more than he has in the last 30 years. And why are all these quiet meetings in Washington with alleged senior Bush-Cheney regime officials, as foreign news services endlessly put it. It’s because Kissinger is the point man. He’s the one that is telling them the disposition of other foreign central banks.

Kissinger would probably also be involved in transfer or hypothecation of any assets from the cabal. In other words, they’re being stolen from the American people by the Bush-Cheney regime and the Bushonian Cabal, and they are being used to hypothecate, transfer, service, or otherwise carry this debt held by certain foreign central banks.

The process of unraveling has already begun because of ever-spiraling Bushonian budget deficits. The Bush-Cheney regime, even in its overt policies (now they’re overt political, economic, social and military policies) is generating $600-billion-plus deficit per year, which is consuming 80% of the planet’s net savings rate.

It doesn’t have the slack. In other words, it can’t refinance stealth debt by issuing more stealth debt anymore. Nor can they bleed money out of the system like they could in the 1980s by hiding it when the overt policies of the Bush-Cheney regime are already producing a budget deficit of 6% of Gross Domestic Product. There is no other mechanism that they could use anymore to hide expansion of debt that could be used to service said stealth debt, and they are, frankly, running out of assets that they can steal from the American people.

So the proverbial day of reckoning is coming. The Bush-Cheney regime (and I give them credit for this) are telling the American people what’s coming, knowing the American people are too stupid to understand. They are telling the American people about the re-institution of the Gold Confiscation Act and the sudden scrapping of the Treasury’s emergency post-collapse gold note scheme to maintain domestic liquidity.

David Walker, US Comptroller General and chief of the GAO has said that should the Bush-Cheney regime be re-ensconced into power and, hence, the scourge of Bushonomics persist, that the United States could no longer service its debt beyond 2009. They’re not hiding it from anybody anymore. They are telling you what’s happening. Now, what does that mean? The key is in what Walker is saying when he says the debt can no longer be serviced. I’ve been asked this on the radio shows. People have noticed what Walker said because he’s out in the news more often than he used to be. It’s unusual for the Comptroller General of the United States, which is a rather arcane position, to be out in the news so much.

It simply means that when he says the United States will no longer be able to sustain Bushonian budget deficits, he means that by 2009, if Bush-Cheney have a second term in office, the United States will be consuming 100% of the planet’s savings rate to finance Bushonian budget deficits.

Therefore, if the planet can no longer generate any more liquidity to lend to the United States, one of three things have to happen: A) There has to be a sudden and dramatic reduction in federal spending. There are only two places that can come from. There would have to be an immediate $100-billion cut in defense spending, which would end any hopes the Republicans had of getting into office for years to come because it would destroy any confidence the NFWCs (Naïve Flag Waving Crowd) had in them. Or you would have to scrap the multi-trillion-dollar Bushonian tax cuts for the Republican rich, something that’s equally unpalatable.

The other option, B, as Paul O’Neill mentioned, is a dramatic increase in the rate of federal income taxation from the current nominal rate of 28% to 65%, which is what the Treasury Department estimated would be required post-2009 to provide the U.S. Treasury with sufficient revenues to continue to service debt.

The third option, or C, becomes the declaration of a force majeure on credit service of U.S. Treasury debt by the United States Treasury, which is tantamount and would be accurately construed as de facto debt repudiation by the United States of America.

There are other signs to look for. They’re not going to happen now, but if Bush-Cheney is re-elected, you’ll begin to see more signs that the end is coming. I know a lot of people may disagree, but you wait and see. If Bush-Cheney has a second term, see if they do not institute some currency expatriation control. See if that doesn’t come in the way Nixon tried it in May-June of 1971.

In the second term, there will be some sort of currency expatriation control in the United States, but there will also be loopholes that will allow the large money to escape. The restrictions will apply to the 10- and 20-thousand-dollar people. It ain’t going to apply to the 10- and 20-million-dollar people. It would be self-defeating to do that.

When that day comes, in other words, when the U.S. Treasury declares a force majeure on debt, it wouldn’t be broad-cast on mainstream media. There’s no sense because the American people don’t even understand what it means. But the announcement would actually be put on the Federal Reserve wire system, which would, of course, immediately be picked up by all media outlets anyway.

The U.S. Treasury would declare a force majeure on debt after the Asian and European markets closed, probably at 12:30 p.m. EDT. The reason why that hour was always selected is because Asian and European markets close. It’s also the lunch hour for the markets. It’s when you’re going to have the fewest people on the floor of the exchanges. That would be the ideal time to make such an announcement.

A few seconds after that announcement was made, all United States markets, both equities debt and commodities i.e., stock, bonds, commodities, that have trading collars or permissible daily limits would all be limit-offered with pools. Limit-offered means that there are more sellers at the limit i.e., limit down, than there are buyers.

So-called ‘pools’ would immediately begin to form, probably a thousand contracts every few minutes. ‘Limit-offered with pools’ - this is trader language. Pools to sell 2,000 lots, 3,000 lots. That means, the number of sellers over and above the available buyers at the limit-offered price. That would begin to build.

By 1:00, the news would begin to sink in because it would take awhile before panic selling would arise from the public. This news is being released at lunch hour.

A lot of the American people initially would not even understand the temerity of the news. You would see professional selling first, and as that professional selling intensified over the afternoon, the SEC, the CFTC, NASDAQ, and various market regulatory authorities would begin to institute certain emergency market protocols. This would be the installation of the so-called ‘declaration of fast market conditions,’ for instance; the declaration of ‘no more stop orders,’ the declaration of ‘fill at any price,’ etc. in a desperate bid to maintain liquidity.

That first day, the Dow Jones Industrial Average and related indices on a percentage basis would lose about 20% of their value by the close of business that day. The real impact would come overnight when the American people found out what this was all about and when it was explained to them.

At 7:30 a.m. EDT, the Tokyo markets would open, and no price would be affixed for probably three or four hours into the session due to the avalanche of selling. Once prices were established, the government of Japan would close all of its financial markets. Europe would not even open. All European governments would close all capital exchanges the next day.

The United States would, in order to accommodate global electronic trading, attempt to open the market on the second day, which they would do, regardless of price, just to maintain some liquidity. At the end of Day Two, the Dow Jones and related indices, would have lost two thirds of their value, and prices would be set accordingly.

On Day Three, the New York Stock Exchange, the SEC and other related agencies would recommend to the United States Treasury and the Federal Reserve that all markets be closed. That would be on the morning of Day Three. Eleven a.m., the Federal Reserve would then order all domestic banks closed. All of the twelve Federal Reserve district banks would (30 minutes later) have special U.S. forces parachuted in and around them to secure whatever gold bullion reserves they had left.

Day Three, 9:00 p.m., the President of the United States would declare a state of martial law. All financial transactions would come to an end. The Treasury would act to formally de-monetize the U.S. dollar and declare it worthless.

This would be totally unprecedented. In the past, collapses have been temporary and have been brought back up. But what we’re talking about now is the end.

These protocols that I’m referring to aren’t even all that secret. They were publicly available all through the Clinton era. These are Treasury protocols that were instituted mostly in the late 1970s when the Treasury and Federal Reserve began to feel that it was important to have an emergency-collapse protocol in place.

What precipitated the timing of this was the inflationary spiral of the late 1970s. The U.S. Treasury and the Federal Reserve were both concerned that this inflationary spiral, which was occurring not only domestically but globally, might lead to a global, uncontrollable hyper-inflation that the Federal Reserve or major central banks could not stop by traditional means, i.e., by raising interest rates and contracting money supply.

There was also the recognition, of course, that global central reserve bank bullion inventories had been so depleted over the previous 30 years that any re-institution of a species currency, even on a temporary basis, and even within a regional or individual nation-state basis, was no longer possible.

This is an analogy. In a military scenario, it’s like the President of the United States pushing the final red button -- the commit button. The Treasury Secretary of the United States has a similar mechanism. It’s called the yellow button, the commit button. The Secretary of Defense has the same system. This is what happens. Computer program starts to institute these protocols. Imagine the complexity of trying the manage all this. I think it’s going to happen all simultaneously. There are hundreds of different agencies involved, both domestically and internationally. In order to maintain liquidity for as long as possible, it has to be extremely well-coordinated, and there must be existing collapse protocols that can be used.

The reason I was familiar with them was because I used to see the U.S. Treasury 6900 Series Collapse Protocol, 6903, 6904 there’ll be A, B, and so on which keyed in to the Department of Defense to be incorporated within the Department of Defense’s own World War III scenario and various types of military/ political/ social instability/ war/ pestilence, chaos, etc. scenarios.

All federal agencies had individual collapse protocols that ultimately got coordinated through the Department of Defense. Obviously, the Department of Defense would be the ultimate coordinator because it would need to have special forces available, on a stand-by basis, ready, that could quickly parachute into areas all over the country, into the cities particularly, to secure federal properties and assets.

And that’s literally how it would begin. By the end of the third day, it would be all over -- a state of martial law. We’re not talking about war, now; this is just economic collapse.

There’s no military implication here, no political, no social implication or policy directive thereunto. This is strictly economic collapse. By the end of Day Three, effectively, all banks in the world will be shut down, all paper currencies will become valueless. Martial law would be declared. There would be no continuing transactions, at least for a period of time, of commodities. All providers of fuels and foods would be shut down automatically.

They have this in great detail too. U.S. Department of Defense Special 117th Assault Unit would parachute in to seize control of the cattle yards in Oklahoma City. This is how well it’s planned. In other words, economic collapse would automatically involve expansive military action and control.

By the end of the third day, when you no longer have a domestic medium of exchange, you have to have secured food and fuel stocks. You’ve got to have troops that have secured distribution points where there is food and fuel stocks, warehouses, tanks, etc. Otherwise people are just going to go get them, and the people have to know that if they try to go break into that store and steal that loaf of bread, they’re going to be shot.

Protocols for environmental disasters are called ‘scaling-circle scenarios.’ ‘Scaling circles’ is a Department of Defense euphemism. It’s also used in FEMA, OEM and other emergency management services. In environmental catastrophes, which are going to become national or global, it’s got to start someplace. It’s going to start in one very small, specific area. Therefore what happens is that the immediate force containment is the greatest in the first circle, to try to contain the spread of the disaster and keep it within that circle.

The environmental problem, to whatever extent it’s possible, before it spreads, will be neutralized or mitigated, in order to keep that catastrophe within that circle, or, if it is likely that it is to escape that circle, to attack whatever it is in such a fashion as to mitigate its strength and its ability to contaminate or otherwise affect other areas.

In the case of earthquakes, for instance, affecting the west coast, beginning at Mt. Rainier and moving southward -- that’s a different type of scenario. That does not include as much Department of Defense involvement. It includes separate protocols, wherein mostly FEMA and OEM act as the senior coordinating agencies between municipal, county and state disaster and containment, which is called Disaster and Containment Units. Federal troops would only be brought in for the purposes of maintaining control.

In a military or economic collapse situation, National Guard units would provide any spare help they could in combating whatever the problem is. Federal troops would be used in order to have the specific authority simply to shoot anyone. There are plans for all sorts of scenarios. The economic-disaster scenario is the one I always found the most intriguing because it is the one that is least understood by the American people.

Military control would be necessary when lines begin to form at the banks, people trying to access their money. But that wasn’t even anticipated as a big problem. Lines would form at the banks, but it was not even envisioned until sometime on Day Three because the American people wouldn’t get it. It would be announced that the stock markets are down 2000 or 3000 points, and since we’ve always been taught they’ll come back, the people would still be buying stocks.

You could count on everybody remaining in ignorance all the way down because the American people have never been taught Economics 101. The American people wouldn’t realize the full extent of it until the markets were closed on the third day, or until the time when they went down to cash a check and the bank was closed with soldiers out in front. Then they would go down and see the gas station’s closed. They see the local supermarket has been shuttered, and there’s federal troops in front of it. Then they might begin to catch on. And remember -- it’s not just federal troops. In emergency-collapse protocols, even before the declaration of a formal state of emergency or a state of martial law, the local military authorities within any given county or jurisdiction have the ability to essentially militarize anyone, that is, any civilian. This would be more than just deputizing civilians. It’s federal. In other words, they would have the ability to militarize and give military authority to a civilian force. This would include not only police and the sheriffs and state police, but all local law enforcement that exists below the state level would be immediately militarized. They wouldn’t take just anybody like they did in Iraq. It would be like the military when they call for volunteers. Then they’d have everybody and their brother-in-law volunteering, waving around the American flag and so on.

You’ve got a lot of pickup-driving guys in this country with the gun racks in the back and the Confederate flag flying. So you start waving the American flag in front of their face and say, Hey, you’re going to get your chance you always wanted -- to fit your potbelly inside an army uniform and carry a gun and shoot people. How appealing would that be?

And besides, if you do this, then you’re going to get to eat.

In other words, this is how it would unfold over three days, but, in fact, very few Americans would know what to do about it or how to take any precautions. They wouldn’t have a clue because they don’t understand enough about economics to know what is happening. So that’s what it is -- Economic Armageddon. If the Bush-Cheney regime is re-installed into power, that is effectively what Comptroller General David Walker is saying.

In conclusion, since there is very little the people of the United States can do to protect themselves. We’re not going to make any suggestions of how to protect yourselves because there’s very little you can do.

We could tell you to go out and buy gold coins and bury them in the coffee can in the back yard and go to your nearest survivalist store, but, frankly, that’s useless. In the last analysis, it’s a lot of hype. There is very little the average US citizen could do.

The only thing that can prevent this, as the Comptroller alluded to when he was asked by Barbara Walters, How do we prevent reaching the problem by 2009? He said simply, "A change of regimes."

So how do you prevent it? Don’t vote for Bush and Cheney -- and hope that Bush does not use his emergency powers to cancel or postpone the election by edict, powers which you, the flag-waving citizens, have given him.

All flag-waving citizens, be warned. If you want to vote for Bush-Cheney again, make sure you got plenty of Spam on hand.

Here’s an interesting and humorous aside. A couple of days ago, Hormel Foods, which makes Spam, announced that in the last six months there have been record sales of Spam in the United States the survivalists’ food of choice. After all, they pride themselves on the fact, as the spokesman for Hormel said, "It is the only food product you can buy with an expiration that’s 50 years."

When everything goes to hell, when all that man has created has turned to dust again, the final legacy is going to be Spam. It will be the last surviving item -- when the anthropologists of 20 thousand years from now are digging sites and they see these enormous mountains of unopened cans of Spam They’ll have monuments to the past out of Spam.

So if Bush-Cheney has a second term in office, there will be some sort of currency restriction, like Nixon did in 1971. On April 13, 2004, Deputy Assistant Treasury Secretary John Boine talked about potential currency restrictions. He used the word that’s going to fuel the flames of the survivalist and gloom-and-doom collapse people.

It’s very, very telling that the U.S. Treasury may institute a restriction on the amount of U.S. dollars that can be converted into gold.

Furthermore, he intimated (and I suspected that this was coming, although this wouldn’t actually become law until Bush-Cheney was in office for second term one way or another) that the Bush-Cheney regime determines that the Gold Confiscation Act gives to Treasury the power for so-called forced disclosure of gold holdings.

I’m not quite sure of the language of the Gold Confiscation Act from 1933. It just says, "compelled", as in citizens are lawfully compelled to redeem gold for script. I don’t think there was any such provision, which he was inferring that there is. That was FDR’s "Raw Deal" of 1934, when people were coerced into giving up their gold. But nowhere in this act does it specifically authorize the Treasury to mandate citizens to report their gold holdings. So if this gets any press at all, particularly within the circles of gold bugs and so on, watch out.

Furthermore, on Washington Journal they were talking about how FEMA has recommended to the Office of Homeland Security to have increased restrictions regarding citizen hoarding of long-term food and fuel supplies. That’s pretty sinister too.

What they’re talking about is the purchase of long-term so-called stores of survival food. FEMA was talking about some sort of restriction preventing people from accumulating food stores; putting it simply, that’s what it means. The second point was to increase restrictions that already exist.

FEMA was recommending even tighter restrictions on citizens building their own private property underground storage tanks for the purposes of long-term storage of fuel. The real intent of this is is threefold: a) to restrict citizens’ ability to hoard food; b) restrict citizens’ ability to hoard long-term storage of fuel; c) the forced identification of citizens to reveal food and fuel stocks they may be hoarding.

And that, in my opinion, is the real essence. The Bush-Cheney regime was scared of having the FEMA angle put into the equation because they knew what it means and how people would interpret it.

They have tried to use environmental legislation to restrict people’s ability to build fuel storage facilities on their own property -- to get around what the true intent of that was.

But the bigger picture is that if you start to limit citizens’ ability to hoard fuel and food and shake them up by potential forced identification of gold holdings or forced redemption.

In other words, what you don’t want is citizens who have the ability to store a lot of food and fuel and to own gold because they would be able to resist state control in the future.

You’ve got to have every citizen on a rationing card to control the civilian population. You can’t have citizens out there hoarding food and fuel because then people can say to government,"I ain’t taking a rationing card, baby, with my national ID card. I don’t have to. You can’t control me through food and fuel and ever-worthless paper currency."

I used to make fun of these people. But now, things have come full circle on this debate. The Bush-Cheney regime is making it increasingly clear through their small changes in policy. Not a lot of people monitor these decisions, but I do. And the pattern is becoming increasingly clear.

In fact, I would believe that those of the survivalist mentality (the food, fuel, the gold coins in the coffee can in the back yard) people who think that way will be ultimately vindicated - if George Bush has a second term in office.

People should quit making fun of them because they would be vindicated - even though they were all burned out, twenty-dollared to death, buying books and tapes, and discredited by mainstream media. It may sound like a hollow victory, but it won’t be a hollow victory for them - them that’s got the Spam...

Asa
User ID: 74026
3/29/2006 12:02 AM
Re: Protocols for Economic Collapse in America
this is a very informative post.

Anonymous Coward
User ID: 12118
3/29/2006 12:23 AM
Re: Protocols for Economic Collapse in America
Interesting. Where does it come from?

And how much Spam should I buy tomorrow?

And is it going to happen in 2009?

mercury
User ID: 922
3/29/2006 1:58 AM
Re: Protocols for Economic Collapse in America
That's Al Martin, I recognize his style, I like him a lot.
www.almartinraw.com
[link to www.almartinraw.com]

He's written things before that I thought were so outrageous that they couldn't be true, for instance about military technology; then a few months later I would read about it in the mainstream newspaper, and it would all turn out to be real.

Makes me pay attention. I wish I could afford to subscribe to his articles, they used to be free, I used to always read them, I still go there and visit and read the snippets he has on the main page.

He's really smart and has a great sense of humor.

This scenario is too creepy to comment on . . . what's going to become of us all?

- - mercury

c.f.
User ID: 73918
3/29/2006 2:01 AM
Re: Protocols for Economic Collapse in America
Something else to add here is the fact that most of our country's outstanding collateral on it's debts, have been leveraged by our government/banking elite to encompass a vast amount of the real estate holdings that normal hard working everyday humans spent their lives creating. These (sometimes multi-generational) holders/owners of property, homes, farms, are being bombarded on an almost constant basis to eleviate thier minor/nuisance debt load (credit cards, student loans, car loans) by taking out mortgage loans or even second mortgage loans etc. with companies that have very recently come into being.

This will change the implications of missing a few payments...instead of having the "annoying types" call you during dinner time every night demanding their credit card payment (and at the very worst a slightly less impressive credit rating), there will be a legal notice sent to you demanding that you either pay your entire balance immediately, or they will evict you from THEIR new property within a certain amount of time. Die-tech, Die-bold, Die-n-corp...these name should tell you something. The lucky ones who don't fall into this trap will most likely be evicted under the new imminent progressive domain laws that we have already seen implimented quite effortlessly in the past few months. I foresee a massive homeless problem coming to the USA unfortunately.

Look at what happened with the powerhouse that used to be also known as the American farmer...he's gone, his equipment, animals, and home were auctioned for pennies, his land that probably fed many of our ancestors saw the same fate. These people were given one set of rules at the time of the initial loan, only to have everything change when the banks decided to rip the bottom out of their lives...most humans just don't have the attorney fees to prove they were lied/swindled/"legally" hood-winked.

When other countries hold your mortgages, and they decide to foreclose on the US dollar because your President is running debts up faster than thought possible, they are going to start checking America for some decent vacation homes (they own them now, so why not)...with the (peace-keeping) UN's backing I would assume. The world is getting sick and tired of our debt load, period. With the almost complete dismantling of our once strong heavy industrial base (as well as farming), there frankly isn't an easy way out.

If the Washington neo-nerds don't roll out the red carpet personally for the Chinese, Japanese, Russian, etc mortgage holders, I will be surprised...they seem to be working around the clock putting a big bow on America for some one...and it sure isn't for us.

One word...


can you say YARD-SALE!

lol Rush



were screwed

Yes, the economy IS going to collapse.

Most people, even on GLP, don't believe it.

Thanks for posting this Mopar.

What you posted goes very well along with what the video on this thread has to say about the upcoming economic collapse:

Thread: Shocking Video: Tom Deckard - The Controversial Prophet Who Predicted 911, AIDS, Indonesian Tsunami And Both Iraq Wars Warns Of The Coming Bird Flu, F

The crash is coming but it is not today

Here is a heads up to anyone who is thinking of mortgage refinancing

Rates are going to drop into the 4% range sometime within the next 6 months.

I don't know when , but it is going to happen.

It is the last hurrah.

If you have good credit...

You want to be a the front of the line so get in as early as you can and be ready to pull the trigger.

226 mortgage companies have gone out of business in the last 14 months.

Most companies that still exist have cut back on their staffs.

The capacity to handle the amount of applications that are going to come is just not there.

In the beginning loans will close quickly, but as more and more application come it is going to take longer and longer.

My insider advice is get ready and don't wait.

All bets are off by the time September rolls in.

Maybe all you 'Lost' fans didn't completely waste your time watching that thoroughly dank series.

bump this post...I have read many of the op-ed articles and many of the opinions are not your run of the mill off handed remarks! It is a fantastic compilation of economic opinions from the best economic analysts you will ever read...check the links, google the names and confirm for yourself what these people are saying- but to place them all in aggregate and show how many minds are thinking alike is alarming and yet provides indication and vindication that a very serious financial crisis is underway

Todays as good a time as ever to review this thread.