The Cyprus situation has provided us an interesting glimpse into the new Leftist strategy, and how it may threaten all of us in the future. First, what happened in Cyprus?
Accounts indicate that Cypriot Banks experienced a flood of new bank accounts, mostly opened by Russians, some legit, some not so much. With these new accounts, a lot of cash suddenly rushed into bank coffers. Rather than sit on the cash, the banks invested it, seeking to grow it, as all banks will do. They bought a lot of Greek bonds, and other bad assets, thinking they were safe, stable investments. I had never thought about this, but now wonder how deeply US bank investments are invested in US government debt, and other bad assets which will plunge in value during the collapse.
My working (and admittedly highly ignorant) assumption, had been that when the US ran out of money, the government would be forcibly shrunk, or collapse outright, but the rest of the system would go on. This will almost certainly not be so, and it may be because of a Leftist play that appears new.
The old Leftist game plan was to lobby for taxes, get the money, and spend it on their welfarites and social programs. It involved class warfare, and pitting elements of takers in the population against the producers in the population, but at least it involved the consent of a majority of the governed, until Leftism gradually grew strong enough to seize power outright.
Back in the eighties, Conservatives in America decided rather than fight this, they would focus on a strategy they called Starving the Beast. They would fight to minimize taxes as much as possible, and this would stifle the growth of government. They allowed the use of debt to grow government, but apparently felt this would self-limit. At the point the debt became unsustainable, it would stop the growth of government.
The problem is, banks are now in the same boat as the government, because when you deposited your money into the bank, the bank took your money, turned around, and gave a portion to the government, in return for a “guaranteed” share of tax receipts later. Still other portions of your money were invested in other assets which will devalue in an environment of uncertainty, as will accompany a collapse. On paper, this all woks out well, except if the government gets in a position where it is going to be insolvent. If the government’s boat capsizes, the banks are right there with it, and so is anyone who gave their money to the banks.
Taken together, whether it arose through careful Leftist planning, or rank stupidity, this has produced the new Leftist game plan we see in action today. Leftists had someone else (ie. government or banks) borrow a huge amount of money, which the Leftists then gave away to the takers and welfarites. Normally, the recipients of such money would have to pay it back, but in this case, they never will. This created a debt, which has been passed around, and which will ultimately arrive at the doorstep of anyone who has saved, or been responsible, if they don’t actively take measures to protect against getting stuck with it.
Sadly, the individuals currently passing this hot debt potato around are all very smart experts in the financial field. This means that the individuals most likely to find themselves holding that debt when the music stops, will be your average Joe’s, just trying to work and contribute from day to day, and save enough in their bank accounts for the American Dream.
This is what is really different. In the old game plan, Leftists at least sought the consent of a majority of the governed, before committing their stupidity. Today, Leftists spend the money, create the bill for their freebies, and pass it around, until it lands where those who are holding it don’t know they are holding it, and thus fail to get rid of it. Those people are average Joes who entrusted their money to a bank, and have no idea that it has been used to buy such bad assets.
When the debt comes due, like financial suicide bombers, Liberals and Leftists will tell everyone that they can either surrender a large portion of their wealth to government, or lose it all to the civilization collapse the Leftists created.
At some point, as our governments go under, banks will find that their depositor’s money, which was given to government with the promise of greater value coming back someday, is not coming back. Suddenly banks will sit at the precipice, and we will all be told that we will either pay a portion of the bill the Leftist’s created, or the whole artifice will come crumbling down. Government guarantees these accounts, of course, up to $250,000. But if the government is insolvent to the point that bonds are worthless, deposit insurance either isn’t going to be operational, or the freshly printed currency it offers will be effectively worthless.
Of course, it is worth noting, the only way to truly fix this is to put the government on austerity. As the collapse occurs, the welfarites and takers will be continuing to drain the system as fast as they can, and Liberals will be only too happy to help them. As long as they are still being given copious freebies, nothing is being fixed. Taxing “wealth” will only be a temporary measure, intended to temporarily forestall collapse, while Leftists continue to spend what remains of your money on the welfarites and takers. During such the respite created by such taxes, the Liberals are just creating a bigger bill they will stick you with again, later on. This pattern will continue until your entire savings are gone, and the whole system collapses. It is how Leftists operate.
Cypriots have just reached the first tipping point, but everyone will probably get there at some point or other, since these things seem to progress in that direction inexorably, without fail, everywhere. Liberals will continue to rack up debts giving their freebies away, and those debts will continue to float around, looking for someone with value to pay them, until there is no more money and things collapse. These days, nobody’s amygdala seems to register the pain which is in the offing. Until the pain is actually inflicted, it will be dismissed as impossible. Leftists are enjoying that advantage for now.
How best to avoid this would be a tough question, but it begins with a recognition of the game. The banks have given much of their depositor’s money to governments and other entities, who themselves have spent it at the behest of Liberals on the welfarites and the takers. It is assumed that as the collapse begins, people will try to flood to safety.
Since the collapse will likely start in Europe, it is believed Europeans will flood to the dollar and US bonds for safety (relative to their currencies and bonds), propping dollars and US bonds up. That is probably the time to get your wealth out of the banks, and seek physical custody of precious metals, as well as survival tools such as arable land and other post-apocalyptic functional abilities, given that the US will almost certainly follow in collapse.
Some well connected insiders have even gone into millions of Nickels, on pallets, housed in large heavily armed facilities in Texas. This indicates that they think this may end with the ability to smelt US currency for its constituent metals legally, in Texas (implying that a dissolution of the US government, or a secession of Texas is believed to be a possible, if not likely, outcome).
Those of you with IRAs, who want to prepare, but don’t want to be hit with a penalty, might find the following site very interesting. As always, consult your own tax professional.
The US Federal Government will not go quietly. However, if we can find a way to protect our stored wealth as the government and financial systems enter the wild flailing of their death throes, we might end up in a surprisingly good place. We might all be able to sit back and watch, as grassroots Liberals are stripped of all of their wealth, while the government they so dearly love collapses, and falls all around them.
One interesting aspect of this new strategy is that it has allowed Leftist wealth seizure to progress faster than the nation’s psychology and disarmament. Normally, this level of wealth seizure would need to be preceded by decades of desensitization, terror conditioning, governmental culling of K-psychologies, and most importantly, gun confiscation. Here, because the spending was done so quickly and painlessly with credit, it has built up an impressively sized redistributive wallop of pain, which is guaranteed to piss off a lot of people in a society which is still mostly K-selected in nature, heavily armed, and historically, prone to violence. Add in the destruction of healthcare, the collapse of the stock market and economy, the sudden end of things like Social Security and Medicare, the violent emergence of the welfarites and takers from the shadows and the violent chaos they will produce, and the sudden reduction of quality of living which will accompany the collapse, and these are the things which wars are made of – if people are made fully aware of how they have been screwed, and exactly whose fault it is.
We need to be sure everybody knows who is at fault in the coming maelstrom – Leftist Liberals.
Pray for the collapse to be swift. In chaos the r types will receive the just deserts they so long for.
It is unavoidable, and it is coming.