Saturday, January 8, 2011

A Call to ACTION!

I assure you any factual information contained herein is as accurate and up to date as possible.

The following is a forthcoming reality and the only solution that I can possibly see to save Texas has to start now (in that, I've mentioned several options in prior commentary so I'll refrain from repetition in that respect).

When I talk about The End of America, I don't mean the end of our political union (although I won't rule that out as I am somewhat hopeful our Texas political leadership is and will begin to act in cutting the ties to Federal government, establish our own

currency and treasury, protect and develop our natural resources, establish our own Military and Judicial system capability to secure our borders, protect our citizens as a Constitutional Republic and cease any dependency or need on or for the U.S. government).

I am talking about the end of the U.S. dollar as the world's reserve currency. Most people think that's unlikely to occur. But it's already happening, and a complete collapse of the dollar is now inevitable.

This is the most important financial problem we will ever face and I want you to know exactly how this crisis will unfold, so you can completely protect yourself, tell others. Save this Digest. Print out a copy. Put it somewhere where you'll see it. Keep reminding everyone that this process is underway... and that you and every Texan you know have to prepare NOW.

Why do you need to take steps now?  Why not just wait and see what happens? Two reasons...

First, when you look at the numbers, you can see the problems we face will not be solved by any normal or legitimate means. How do I know this? Just consider this one fact: Even if federal tax revenue were doubled, we would still have an annual deficit.

I've got to be making that up, right? Surely that can't be true, right? It's true. Income tax receipts are roughly $900 billion a year. Corporate taxes are roughly $200 billion annually. That's $1.1 trillion in tax revenue. Our current government expenditure is $3.5 trillion. Even if you doubled tax revenue, we would still be facing a $1.4 trillion deficit.

"Wait a minute," you say. "How can that be? Doesn't the mainstream media report that our deficit is only around $1 trillion per year right now?" Yes, that's what they report. But that's because the government counts all $850 billion of payroll taxes (Medicare and Social Security) as current income. It's not. Those taxes are supposed to be funding the future liabilities of those programs, but we're spending all that money now. If a private corporation did the same thing, its executives would all go to jail.

Second, you have to act now because when the situation finally turns, it will happen suddenly. If our government suddenly finds itself unable to sell bonds at a reasonable price, the rule of law will evaporate overnight.

This will happen at some point. The only question is when. You don't have to believe me. Listen to what congressman Ron Paul said in an interview with our friends at Casey Research:

"They are going to have currency controls and exchange controls and limit the amount of money you can take overseas... the description of a free country is one where you can leave with your money when you please. That is going to get harder and harder."

Yes, Ron Paul is a libertarian but he has also been in Congress (off and on) since the 1970s, and he is now the chairman of the Joint Finance Committee. He knows more than almost anyone else about the true financial condition of the government. He is giving you a clear warning. What are you going to do about it?

Most people will do nothing. They will continue to assume tomorrow is likely to be pretty much the same. Sure, we might have some tough times... but this will pass. Nothing serious is going to happen.

If you feel this way, that's fine but ask yourself these questions:

How high will gold have to get before you think something is seriously wrong?
How high will silver have to get?
How many banks will the FDIC have to close before you consider the dollar to be unsafe?
How many municipalities will have to go under before you think there's a crisis?
How European states will have to leave the euro before you begin to doubt the stability of the world's paper currencies?

How high will agriculture prices have to go before you see that a global food panic is underway?
I suggest you write down the answers to these questions now because almost no matter what you answered, you'll get to that point soon.

So how will it happen? That's what people keep asking me. My answer is: The collapse of the global fiat money system is already under way. Gold has gone up for 10 straight years. Gold is the counterbalance to fiat (paper) money. For 10 years in a row, investors around the world have been favoring gold. This trend is going to continue, and it will not stop until serious actions are taken to put a floor under the value of the world's major paper currencies: the euro, dollar, and yen. That can't happen because the governments backing these three currencies are all bankrupt. The euro will die first. Just look at the numbers...

Greece, Ireland, Spain, Portugal, and Italy have all made the same mistake. They responded to the collapse of real estate prices and debts by guaranteeing the private obligations of their banks with their country's treasury. (America is doing the same, by the way.) The problem is, the debts are vastly larger than the governments can afford to repay... far larger.

So for example, when Anglo Irish Bank failed, it announced it required $35 billion. That's equal to 25% of Ireland's GDP and that's only one of Ireland's failed banks. Ireland will never be able to afford these obligations.

As a result, Germany, France, and the other euro nations have put together a bailout plan. All of the European treasuries will act to save any member state. Let's look at the numbers. Total debts owed to foreign investors in the so-called "PIIGS" countries are $2.6 trillion. The bailout package that's been assembled totals $1 trillion. That sounds pretty good... at first.

But Italy and Spain have pledged $130 billion to the bailout. Where will they get that money? Greece has pledged $12 billion, Ireland, $7 billion, Portugal, $11 billion. Only about half this money will ever be raised and almost all that can be raised will have to come from France and Germany. Sooner or later, the taxpayers in those countries will say "enough" and the whole thing will unravel.

It will happen suddenly and very, very soon. Even if you pretend Europe can raise that size of a bailout fund, that figure simply isn't nearly large enough to bailout either Spain or Italy and both are likely to suffer a default if either Greece or Ireland defaults. That's why interest rates in Ireland and Greece are back to crisis levels, despite the bail out promise. That's why the euro continues to fall and that's why shorting the euro is one of 2011's sure bets.

Ironically, the worsening crisis in Europe will give our own dollar a bit of a reprieve this year. In a crisis, investors will prefer the liquidity of short-term Treasurys to any other asset, including gold and silver. Look at the precious metals markets this week... As of yesterday, January 7th

The euro (FXE) fell almost 2% Wednesday. Silver (SLV) fell 7%. Gold (GLD) fell 4%. What went up? The U.S. dollar (UUP) rose 2%. Don't forget... in 2008, the dollar rallied tremendously. Gold and silver fell sharply. In a short-term panic, investors are still buying dollars, not gold or silver.

The collapse of the euro will cause all kinds of big problems this year and almost surely lead to a huge correction in commodities. Does that mean the U.S. dollar's problems are just a mirage? Nope, sooner or later the U.S. will face a stark choice...

If we let the euro fail, it will result in terrible short-term consequences. So the Fed will crank up the presses yet again. Quantitative easing 3 will be another $1 trillion effort, this time focused on buying European sovereign debt. The Fed must become the lender of last resort not only for the U.S., but for the world. That's the last step before its eventual collapse. After that point, people will no longer flee to Treasurys when a crisis erupts. They will flee to gold.

What should you do about this? It's pretty simple. First, you should use the correction in silver and gold to stock up on physical bullion. Make sure you've got a year's living expenses (at least) in gold and silver bullion. Store a portion of it overseas if possible.

If you can, buy some real estate overseas. Look into getting a resident's permit or, even better, a foreign passport. If leaving isn't an option for you, then use this year to build some safeguards for yourself here. It could be buying a local farm... or maybe just planting a garden... or digging a well... or installing a big propane tank. Store a bit of food. Stockpile medicines. Buy a gun. Get some ammunition. Imagine what it would be like for you if the dollar wouldn't buy anything. Imagine what would happen if the 43 million Americans on food stamps couldn't eat. Plan your affairs accordingly.

I do what I can to pass my thoughts and information to you and that's as far as I can go in that respect as per our my earlier blogs, comments and discussions to date. The writing is on the wall and how it is written changes almost daily as I'm kept aware of any number of situations, circumstances and events both at home and globally.

An example is what you are hopefully aware of in regard to the Bush families acquisition of a rather large area of land in Paraguay. Understanding the motivation behind it should reinforce the fact, they are doing exactly what each of us should be doing if we had their worth (setting up to live outside of the U.S.) This NAFTA situation just further reinforces and supports that agenda and that may well soon be enacted as further evidence of the sad shape our nation is in. The true voice of many, many Patriotic souls known as Americans is not reflective in the Main Stream Media or those in the public eye who live, breath and thrive on political rhetoric and opinion. In Texas, at least currently, we have options many Americans in other States simply don't have but those are sitting on the brink of self destruction if we don't get our act together and quick.

What's most disturbing and complexing is how so many in political positions are far more concerned with party politics over any real truth and common sense or they are merely puppets on strings and really controlled more than they'll ever admit, publicly or otherwise. They are shorter lived than they seem to think too, especially in the hearts, minds and souls of far more Texans and Americans in other States than they seem to recognize. The cold, hard, face of reality is going to come and that's why I say..everyone best get prepared and starting NOW.

Respectfully submitted to make every effort possible to awaken the eyes, ears, minds and actions of our elected representatives leading into the most important and critical legislative session in the history of Texas and to all citizens and their respective State legislators,
Jimmy McIver


  1. Jimmy, this is one of the best and clearest explanations I've read concerning the failing dollar. Many people who don't understand economics/finance would easily understand this article. You are correct in your analysis and advice on how to prepare. Might I also throw in saving seeds. I think seeds, coffee beans, and exotic seasonings will be good bargaining items when (notice I say "when" and not "if") the dollar ultimately collapses.

    I aggressively buy silver coins and modestly buy gold. I've encouraged my family to start stockpiling and to learn the use of a firearm. They no longer call me crazy but "informed." :-)

    Because you shared this with all of us, I'll do the honor of sharing it with the people I follow.

    God bless you, brother

    --Diesel Lady
    (Asia Reeves)

  2. Thanks Asia, I very much appreciate your helping to spread the word and your suggestion in the comment. You are a shine'n light in Patriotism in every sense of the word. God bless you and yours!

  3. I believe what the Feds are doing is having plans made up for a whole new monetary system, because they know that the federal reserve system only worked temporarily just to make rich, those who made up the system for themselves. Those greedy idiots played with the lives of the US American people to establish their own wealth and power.

  4. Anonymous, if all goes as they planned, within the next 2 years, that eventuality will probably be a reality. There's still some struggles within and between the powers that be as to who will be in charge and control of the New World Order in direction, guidance of the U.N. Once that is established between what's currently dividing that issue, I fully believe that's when we'll begin to see the world financial/economic structure under one currency. These powers that be have hastened the pace in a lot we see. Signals, hints in forms and ways of compromise, no real concern for the U.S. dollars demise. Many reasons why some of the actions in our Federal government seem to make no common sense in legislation, agreements, treaties, executive orders and such. A Constitutional Republic is not what they want or need. I wrote this article for just that reason because these evil, corrupt people behind the scenes will never be tried for treason and every Patriotic citizen best prepare however they can. More signals will be coming our way and this year you'll see chaos, confusion stirring the pot of public illusion. Unfortunately, many can't see it for what it is and far too many will feel it's what has to be done as there are no other options except one currency.

  5. excellent post, jimmy. You explain things so clearly. That information about the Bush family is a bit frustrating for sure. But you know, if you want to know what you "should" be doing, you should be looking at those who can....
    Preparedness is so important this day and age. i am with Asia on the things that we should "also" be storing.
    As for this madness called the "Food Modernization and Safety Act"....if people wont start learning TODAY how to grow a backyard will soon be too late.

  6. rightwing thank ya for the read. You are certainly correct in terms of time for people to get prepared in a number of ways I mentioned and certainly a garden is among them. The time is growing near when some or maybe all of these actions will be much more difficult. As for right now in terms of a garden, I hope folks will do what it takes to prepare the soil, learn what, when to plant and be ready when the weather permits. My best to you and yours!