Here is a chart showing the Roman Empire’s decline in honest money and it’s global power. As the Empire needed more money to fund its expansion and maintenance, raising taxes was not always possible. Since they did not have paper money or iPad apps to expand the money supply at will, the Romans debased the silver content of their coins. They would clip the coins, make the coins smaller, mix copper in them and eventually only using a thin coat of silver to give it the semblance of money.
Many will say that this happened over many centuries and that we should party on. I would contend that this has been going on for many decades and that we do not have much time left on the clock. First, even at the end of their power their money still had intrinsic value sure it was copper, but it had real value. How much real value does those electronic digits in you account represent? Or those dirty green notes in your wallet?Since there is no physical anchor to the money, the decline will be even more rapid. This will be exaggerated by the fact that we are so interconnected and that there are rising powers that would benefit tremendously off of the collapse of the dollar.
Secondly, the depreciation of the dollar has been going on for almost a century already. Since the Privately and Foreign Owned Federal Reserve crawled out of Jekyll Island, we have lost 98% of its purchasing power. Just to burn this in your brain think about this, if you saved a $100 Federal Reserve Note or 5 $20 gold pieces from 1913 you would have dramatically different out comes. That $100 FRN now has the equivalent purchasing of $2 back then. You could only buy 1/15 of an ounce of one of those 5 gold coins now. If you had those same 5 $20 gold pieces they would be worth 5x $1,500= $7,500. This chart does not take into account the most recent money printing of the Fed with QE1 or 2. And if we are going to pay the $140 trillion dollars in unfunded liabilities, we are probably going to need a dramatically new chart.
“Of all the contrivances for cheating the laboring classes of mankind,
none has been found more effectual than that which deludes them with paper money.”
– Daniel Webster
Finally, when the government starts bouncing checks or those check become worth nothing, you are going to see mass of insiders start pointing fingers. I wrote an article about “Who Will Be The Most Dangerous Man” and it is about insiders who once profited off of the system finally coming out against the system. This may happen from a crisis of conscience but I believe that once a system is no longer profitable to these insiders, they will seek money and power by selling out their co-conspirators. While I will happily accept their information, I will still have a cold eye towards those “Johnny Come Lately Patriots” that should have done something ahead of time to warn their brothers and sisters to the magnitude of the scam going on here. I believe in the Anger phase of our society’s 5 Stages of Awakening, heads will roll and former co-workers will be signing the death certificates.
I have little doubt that the Freedom Movement would embrace these men, everybody likes when people switch to their side. This could come in the form of insiders who were stifled in their pursuit of justice by higher ups. Or politicians seizing upon the populist uproar against the systematic corruption. Or former con artists seeking to redeem their tarnished reputation. The point is that these men have sold their souls for a buck, when the buck dies, what will they do? They will look for a new buck and a book deal.
Those that did not see this coming, won’t know what to do when it gets here. I believe that we will see a rise of a new breed of leaders in this country when this crisis comes to a head. Now it seems that only narcissistic psychopaths seek power and that all of the good men are gone. History has shown that REAL men will rise when the time is right to be there to turn back the tide. They are ready, we just need to call for them and stand behind them.
“Do you wish to know whether that day is coming? Watch money. Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion—when you see that in order to produce, you need to obtain permission from men who produce nothing—when you see that money is flowing to those who deal, not in goods, but in favors—when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you—when you see corruption being rewarded and honesty becoming a self-sacrifice—you may know that your society is doomed. Money is so noble a medium that it does not compete with guns and it does not make terms with brutality. It will not permit a country to survive as half-property, half-loot.”
“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it becomes, marked: ‘Account overdrawn.'” – Ayn Rand Atlas Shrugged.