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The Forgotten Canary

April 19, 2011
by

It’s no wonder that most Americans have forgotten the major problems that we will all face in the future.  With Japan’s catastrophe still ongoing, the bombing of Libya to oust another evil dictator, and protests going on in many other Middle East countries, America is distracted.  The past events in Wisconsin is a drop in the bucket compared to the issues we will face in the not so distant future.  The canary in the great dollar mine has already died, but has quickly become forgotten.  This occurred not long ago in Prichard, Alabama.  When the retirement well ran dry, the city stopped sending retirement checks.  Past police and fire chiefs as well as all city workers who worked all their lives to live peaceably in retirement, suddenly found themselves broke.  Some filed for bankruptcy, some accepted help from family and friends, some were forced back to the workforce, all to make ends meet.  One refused help, died in his home that had no power or running water.  It’s just a matter of time before the rest of America catches up to Prichard, Alabama.

It’s estimated that States and Municipalities have as much as 5 trillion dollars of unfunded retirement plans for their employees.  Believe what you want, but they have no plan to fix this problem or make payment on their promises.  The Federal Reserve and the Obama Administration have set the stage for the largest default in world history.  This won’t just affect the U.S. government, it will hit the state and local  governments harder.  The U.S. government can print money, the others can’t.  Combined, the debt bubble that is about to burst, could be the worst catastrophe the United States have ever seen.  I hope that those that we have elected will make the tough decisions to avert this impending problem, but it seems highly unlikely. 

What can we likely see in the coming months that will point to this debt bubble bursting is already underway.  Gold and silver prices are shooting up while the dollar has dipped below the 75 mark on the dollar value chart, to 74.80.  This is a critical number, as many analysts have stated that if the dollar goes below 75, it could free fall at any time.  Why is this important?  As the dollar loses value, inflation rises.  The cost of food and gas will rise and rise.  Gas is already near $4 a gallon and will continue to rise.  Food prices are starting to sting the poor, and the middle class, what’s left of them, are feeling the pinch as well.  While government talking heads and the main stream media claim inflation is low, our bank accounts are telling a different story.

With the number of government retirement plans unlikely to pay off, the baby boomer generation could be in serious trouble.  As the dollar drops in value, governments will need to raise taxes, that will likely come in many forms.  There has been talk of nationalizing 401Ks and IRAs, forcing the American people to invest in government bonds and T-bills, which are all headed towards a cliff.  The government will do everything it can to save itself, they don’t care about you and I, if you think they do, you are a fool.  In their quest for power, they will strip the people of their wealth, through taxes, nationalizing retirement accounts and possibly gold and silver seizures. 

As the Federal Reserve continues to print money, buy U.S. debt, lend it to Wall Street at almost no interest, all in the name of helping the economy, they may be doing more to harm it than help it.  All this extra money is artificially propping up the stock market.  Many analysts say it’s way overvalued and is do for a major correction.  Some claim as much as a 40% drop.  Hopefully, when it does correct itself, it will come in increments, rather than a one or two day crash.  As the dollar devalues, it will be interesting to see how the market reacts.  If the Feds QE2 ends this summer, the question of whether QE3 will move forward or not is important as well.  How will Wall Street and the government react to a lack of cheap money from the Fed?

One potential trigger to serious problems could be JP Morgan.  JP Morgan has been selling silver shorts (pieces of paper) at a staggering rate.  The problem is that they don’t have the actual silver to deliver.  They may be on the hook for as much as 3 billion ounces of silver they don’t have.  As silver prices continue to go up, this is becoming a big problem for them.  If their actions force them into bankruptcy, the domino effect may be far reaching.  I have read, that if silver hits $47, that could be the end of JP Morgan. 

While the future is untold, and predictions vary widely with economists, it is safe to say that we are headed for troubling times.  How bad will it get?  Time will tell.  There’s no shame in preparing for bad times ahead, by stocking up on food and other needful things if prices skyrocket.  Watch for food and gas theft to increase as time goes on.  At some point, the poorest in the inner cities may take to the streets, hungry and pissed off.  As you watch this on your nice flat screen, think about gas hitting $10 a gallon, and how that may effect every aspect of our nation.  Will trucking slow or stop, not delivering food to stores?  Will deliveries continue, only to pass the cost to the consumers?  If you haven’t noticed, the canary in the great dollar mine has died, and far too many have forgotten.

Live Free!

G!

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8 Comments leave one →
  1. Greg Fessler permalink
    April 19, 2011 2:05 pm

    the whole mess is staggering to think about, and they ” WILL” keep doing what they do, i wont be surprized to see a revolution

  2. Cyndi P permalink
    April 19, 2011 2:56 pm

    “Hopefully, when it does correct itself, it will come in increments, rather than a one or two day crash.” I disagree. A one of two day crash is just what the sheople need to get their attention. this slow decline is what allows the crime to continue.

    As for JP Morgan, do you really think their lackies in government will alolow them to be destroyed?

    • gmanfortruth permalink*
      April 19, 2011 3:06 pm

      They can’t bail out JP with something they don’t have, 3 billion ounces of silver. Note: The CPO just ordered 350K “National Detainee Handbooks”, They posted the order then pulled it a few hours later.

      • Cyndi P permalink
        April 19, 2011 3:11 pm

        I’m pretty sure rules/laws will be changed to save them. Its been done before with the big banks……

        Can you send me the info on those handbooks, pls?

        Cheers

  3. Whitehorn permalink
    April 19, 2011 3:57 pm

    Cyndi heres that informationhttp://www.ice.gov/doclib/dro/detention-standards/pdf/detainee_handbook.pdf

  4. April 20, 2011 4:13 pm

    I see no solution. I mean, I SEE several, but they will never be done.

    No party or government organization is willing to do ANYTHING except in a few cases, talk.

    Nothing will be done because no one is willing to commit political suicide bt cutting out the freebies. And that is partially the publics fault because they too, are unwilling to cut their own freebies to fix things.

    I fear for our Country and our way of life. When political considerations and correctness come before doing what OBVIOUSLY MUST be done, we are DOOMED.

    OK. Enough doom and gloom from the Nation, how’s tricks G?

    • gmanfortruth permalink*
      April 20, 2011 8:18 pm

      I’m good Esom. Trying to get all this wood cut, split and stacked. I’m happy to be in the country and away from the city!

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