The collapse of the present economic system is inevitable and cannot be prevented despite all the efforts of the individuals that run and benefit from the system. A system based on lies and deceptions cannot last. It cannot be sustained. As I mentioned in one of my earlier posts,the US economic system and power is based on three pillars: paper, the dollar, the bond and stock markets; all three are based on debt denominated in US dollars.
Many people in the know think that the weakest pillar of the three is the dollar, but that ain’t necessarily so. Remember, the dollar is essentially the official currency of the world. Most financial transactions are done in dollars. Most of the world’s debt is held in dollars. Also,most of the drug trade,prostitution and pornography are transacted in dollars. In other words,most economic human activity is carried out in dollars. In addition, countries that have trade surpluses hold their reserves in dollars. De-dollarization is taking place all over the world, but the process has been slow. It may accelerate in the future, but the future has not yet arrived. The dollar is good for at least two, if not, five years. Five years in economic terms is a long time. Still, many people and countries are moving towards the exits…
US Treasuries are connected with the dollar policy. Treasury bonds are debt issued by the US Government for its operation. The claim is made that it is as good and safe as gold. Each individual should decide for herself or himself. Foreign governments are parking their dollar reserves in US treasuries. Narco money is also parking its money in US Treasuries. Many important counties are divesting themselves of Treasuries and investing in the ultimate money, which is GOLD. The process is slow but it will accelerate in the future, but the future has not arrived.
The third pillar of paper is the stock market. The US Stock Market is Casino Royale and can close and collapse any moment. The future of the world will be decided on Wall Street. If Wall Street collapses suddenly it would be an earth shaking event, the kind that happens only once or twice in a millennium. It may also be slow process of decay. Which ever process takes hold or if a mixture of the two, it will ultimately be catastrophic. The US Government and the Federal Reserve will try their best but will fail, because the energy entering the economic system is decreasing and will go to its equilibrium level whose depth is unknown. It will be known in due time. The Economic System which is blindly venerated will no longer be viable. It will collapse from septic financial shock and die. Chaos and long transition will follow. Countries will fragment into smaller units. The US may face fragmentation.People living on the land will do reasonably well. The Amish will be admired. Only time will tell.