Where Will You Go When the Sovereign Debt Volcano Blows?
"People never believe in volcanoes until the lava actually overtakes them." – George Santayana
Last fall, while on an investment cruise, I had the opportunity to visit a "dormant" volcano in Chile. There was even a ski area with lift, restaurants etc. near the top on the lava and cinders. I thought at the time how I would ski the volcano but never risk my funds on a real estate investment there for obvious reasons.
Today we find the United States and most of Europe in a similar situation. We risk an eruption and collapse of the mountain of unsustainable sovereign debt built up over the last two decades. Frankly, the US dollar and national debt situation is so dire and our means to contain a sovereign debt crisis so limited by multiple wars, Washington's debt and political incompetence at home, that anything could happen – almost overnight. Even a minor foreign policy or economic event like a Greek default or Middle East crisis could reap havoc with the precarious interlocking sovereign debt pyramid in the West.
Of course, no nation wants a collapse – especially China – because a western debt collapse and write down is certainly uncharted financial waters and the contagion risks are global. Still, America and most European governments and the central banking elites, which created the criminal sovereign debt fiasco, are only trying to buy more time and delay the inevitable. This inaction means the threat of an immediate US debt and dollar collapse cannot be ruled out. Therefore, readers who have not protected themselves certainly have cause to worry because now could be too late.
It Is Exit Time For Your Gold, Wealth & Family
Although you may have some time, nothing else has to happen before a big collapse could take place, even within days. Consequently, after 30 years of watching, writing and creating protective retirement planning and financial strategies, today I'm finally going to yell "FIRE" inside the closed 'financial iron curtain" which is America.
If you have failed to store your precious metals outside the US, diversify out of the dollar or reduce or terminate your private retirement plan, there is now a clear danger of a Washington dollar and sovereign debt crisis which could sweep away most of your remaining wealth and financial security.
I do not have a crystal ball or inside political information on a specific imminent threat, only the observation that the sovereign debt crisis from Europe, a debt ceiling misstep from the clowns in Washington or a Middle East event could suddenly trigger the collapse. Actually any major political or economic shock could bring the Madoff style Ponzi scheme, which Greenspan and Bernanke have created, down almost overnight on top of us.
This will likely happen over a weekend and the following Monday morning you could wake up to Presidential Executive Orders "means testing" you out of Social Security benefits if you still have substantial retirement benefits or personal savings. You'll likely discover an end to your home interest deductions, new confiscatory taxes and restrictions on US gold and silver, controls on moving private wealth and funds to safety offshore and dramatic hikes in taxes and cuts in government programs. In addition, spiking inflation rates, violence and massive protests will immediately follow these confiscatory actions and cutbacks. You can also expect severe banking and stock market liquidity restrictions, or closures, and this will only be the beginning. In short your wealth will be trapped in dollars and locked up for the duration of the emergency inside the American jurisdiction.
Therefore if you haven't already prepared for this type of crisis contingency ahead of time, I'm telling you there will be little you can do after the fact. Washington will simply take and throw your wealth and promised benefits at the problem thus buying them more time with your wealth.
The Central Banks, City of London & Wall Street Have Looted America and the World
Back in 2007, did the Federal Reserve or your politicians or financial experts predict a collapse in housing prices of 30 to 50 percent? Remember, Bernanke, Greorge W. Ben Bush and Barack Obama all promised this was a temporary blip in the long-term upward trend in housing values. All advised you to "stay the course."
Today, Tim Geithner claims we have a "strong dollar policy" but have you observed the 35% plus appreciation in the currencies of Brazil and Switzerland to the dollar in the last year? The EU establishment has repeatedly claimed over the last few months that the Greek problems are solved but these fake solutions usually only last a few days at best.
Back here in the US, there is talk about deficit reduction, cutting programs and tax increases but nothing really happens because solving the problem is political suicide. The American and European elites are buying time knowing that only a crash or war will give them the opportunity to act as they did in the 2008 meltdown. They only wait for a cataclysmic event to provide the fear, excuse and public support for government action needed to grab our private wealth and to delay their problems.
The mainstream American press doesn't cover it, however the rest of the world knows that Wall Street banks and their central banking buddies in London and New York created the sovereign debt crisis. They then sold their profitable template, or imposed it on the end of a gun, for debt democracy to politicians around the world as a means to buy votes and maintain political control. The scam is now over and no one has a solution to the tens of trillions in debt already spent.
While many millions of poor people overseas are going hungry because of our exported inflation on food costs, now the foreign middle classes are being impoverished just to pay interest on the sovereign debts to our banking elites. Although, much of the world correctly blames their thieving politicians who've been bought off by our banking elites as the problem, our nation is also a target for their outrage.
Foreign politicians will attempt to shift the blame to America and this will speed the end of our American free ride from the fiat dollar and our reserve currency status. The world is just waiting for the spark to start the run out of the dollar and our Treasury debt. No nation will really help us when the collapse comes.
What If You Have More Time?
Maybe we have months instead of weeks – or at most a couple of years before the event takes place. Allow our politicians "buying time" to work for your benefit instead of theirs:
1. Educate Yourself With Free Subscriptions: First, to protect yourself, you must assume the balance of establishment news coverage and opinion is all disinformation designed to delay panic and create actions which will benefit the establishment probably to the detriment of your best interests. Therefore I suggest you subscribe to the following free e-mail publications:
• Follow what the elites are planning ahead of time with The Daily Bell – Subscribe.
• Keep up with the real freedom news and philosophy by subscribing to LewRockwell.com – Subscribe.
• Get an Austrian economics view on the markets and gold with Mountain Vision – Subscribe.
2. Maintain Liquidity & Reduce Political Risk: Legally and following all reporting requirements, move your private wealth outside the US into safe secure investments which will remain liquid and trading should US markets close as they did following 9/11.
3. Create A Domestic Safe-Haven Location: The potential for violence, theft and property destruction in the US dwarfs what could happen in Greece. If you can afford a safe-haven second home away from major cities and high crime locations, then do so. Consider taking advantage of the real estate collapse and buying something you can enjoy in good times and have as insurance for bad times.
4. You Will Likely Be Safer Outside the US: In a serious crisis, most of the criminals out to steal your property and do harm to you will come with official government sanction and not from traditional criminal elements. Consider a more secure safe-haven jurisdiction where the rule of law might still prevail with a condo, second citizenship or residency in a nation outside the United States for the duration of the domestic disorder and economic collapse. Remember, currency and government debt collapse is common throughout the world and history shows the difficulties don't last forever. My fear is we haven't seen a world reserve currency collapse before and the aftermath is uncharted waters. I would expect a scenario several magnitudes worse than the 1991 Russian collapse.
5. Secure Your Gold: Finally move most of your gold or silver offshore where it will remain secure rather than become a tempting target for confiscation from parasitical groups and individuals. Washington will need your gold as I doubt there has been substantial gold at Fort Knox since Nixon closed the gold window. The eventual outcome of the crisis may well be some fake gold backing for the dollar. Why else would anyone use a collapsed currency?
6. Don't Trust Washington With Your Retirement Benefits: Consider closing and taking a withdrawal from your retirement plans to avoid new taxes and penalties at withdrawal, the means testing and loss of your Social Security benefits or the forced investment into collapsing Treasury obligations.
You can read all about the gold and retirement threats in my Lew Rockwell archive. Pay specific attention to the following essays:
The Greek Tragedy
There's Gold In Fort Knox?
Retire In Poverty- Retirement Plan Nationalization
The Obama Retirement Trap
The debt crisis is here and I promise you only that you will not hear the truth on cable financial news or from your establishment investment firm or professional. To avoid a panic, neither the government, the Federal Reserve or Wall Street will be honest with you about the risks we face, just like they all lied and covered-up before the market meltdown in 2008.
If you are an American, the last place you should keep most of your wealth now is in the dollar or your home country. You might personally get out but your wealth will be trapped for the duration and probably lost during the disruption.
Final note: In my bio below, you can read more about my efforts and others who are fighting for our/your liberty. Addiotionally, Take some time to peruse the biographies and glossary setions of the Daily Bell ThinkTank to familiarize yourself with current and past powerful elites and the means they utilize to control and destroy our/your life, liberty and property.
Posted by s1lver on 08/27/11 09:46 AM
Outside the US? Really? What kind of ivory tower do you live in? How many have the wherewithal to keep a place in two places? That means travel between the two. Travel in times like you are describing will be iffy at best. If you do have it like THAT, you must be an enterprising businessman with ties and obligations to whatever it is that made your life here comfortable. You must be willing to leave it all behind, of course, for a future that is ... ... .. how much more certain... ... .. in, what country were you talking about? Of course, anything more than $10,000 you are taking with you would be smuggling and subject to seizure. You are speaking like a child with dreams of owning a desert island or something, along with all the encumbrances/accoutrements that go along with that, including ties to the mainstream and its tax system that wants to know your whereabouts at all times and the country that you are going to, which also wants to know who this person is and how much they can get out of you. Your advice is basically useless. I am glad to know that there are people like you, though. Free as a bird, unbound by heaven, hell, or earth. Good luck with it, but people do not live in a vacuum... ... .or separate little vacuums without border guards. I know you mean well, though, and thank you for struggling like the rest of us.
Posted by Bischoff on 08/13/11 12:26 PM
I suggest that you google the name James Turk. I believe the DB has interviewed him. He has the answers to your concerns. There is no need to have sleepless nights.
As long as the government cannot shut down the internet, you can be in full control of your gold assets, wherever you decide to store them.
Posted by Bischoff on 08/13/11 05:25 AM
Again, I agree with almost all of Ron Holland's point of view. He sees things as I see them.
The only thing I urge, is for people to form for themselves a coherent, logical picture of the economy and our monetary system to serves as the basis against which to check the pronouncements from government officials and talking heads in the media. One should always depend on ones own understanding of things and events, instead of those of others. The opinion of others are useful to check ones understanding and the logic ones view of the world, but they should not take the place of ones own understanding.
There will be a collapse. As Ron Holland suggests, it could come at any moment. The tensions have mounted to such an extent that anything at all could trigger a downfall of the irredeemable currency system.
To keep any USD/FRN denominated investment at this time in hope of gaining a return, is utterly foolish. The only safe bet is to convert those USD/FRN holdings into gold. The price of gold does not matter. Remember, gold really has no price. It is a standard of value.
Gold, while sitting in a vault, will not earn a return. However, after the economic and financial collapse, there has to be a solution to the debacle. The solution is in the establishment of redeemable currency. It could be done now, but politicians will not be smart enough nor brave enough to effect it.
For a redeemable currency system, gold is required. The USD/FRN investment turned into gold now, will allow you an opportunity after the collapse to participate in the banking system. As a matter of fact, it is vital then that gold be available and come out of hiding to participate in the reestablishment of a redeemable currency system based on Real Bills and Gold.
Only gold used for clearing and savings will return us to a vital economy and a high living standard.
Posted by Ctwalter on 08/06/11 11:31 PM
No matter how much time is left before the rust behind the shiny ponzi scheme crumbles, every one should take personal action for their own security. I am glad smarter men and women than I are warning of the coming financial problems and possible remedies, but there are also many other skills we can learn. Net work with family and friends you can TRUST. Self educate your selves or learn from those who know about filed medicine, growing food, making tools and so on, all the skills that a man or woman had to know before our highly specialized society trapped us. Even if the knowledge is only book knowldge for now, if the time ever does come to have to use that knowledge, hunger is a wonderufl teacher. And having people that can depend on each other will make the difference between taking care of our selves and being forced to follow the lemmings..... just a thought
Posted by Ctwalter on 08/06/11 11:22 PM
HI Dotty, what country is that you live in? It sounds like a great place with only a few poeple; and it is easy to live very comfortably on 30k if one isn't buyint the Madison Ave, Hollywood image of a good life. :)
Posted by brewersgold on 08/04/11 09:16 PM
You are right.
Posted by Zenbillionaire on 07/10/11 12:51 AM
@ Ron Holland
"move most of your gold or silver offshore where it will remain secure rather than become a tempting target for confiscation from parasitical groups and individuals."
Points 4 and 5 seem to be in conflict. Say a person has a domestic safe have but has moved gold and silver offshore. How does that person get access to this offshore store of wealth? Without arguing the likelihood of a gross breakdown in social order, it's still easy to see the security apparatus of the PE not allowing international travel under those conditions. Those TSA folks don't look all that friendly to me.
What good does gold in Israel do for a Jew in Poland? I'm not trying to be a butthead here, this question keeps me awake at night.
Posted by speedygonzales on 07/06/11 04:32 PM
Basically: I do not pay too much attention to gold/silver backed currencies. Mostly I try to develop arms that people can control their economical lives. Decentralization, tax reform, straight democracy- mandatory referendum, straight presidential, mayoral, governorial elections As soon as farmer can vote in referendum we do not need academic agenda of left, right, dems, reps, elephnants, monkeys, snakes. Here we have some pics of 'em:
Click to view link
Scroll down to C pics.
Posted by speedygonzales on 07/06/11 04:24 PM
'Knowledge will forever govern ignorance,and a people who mean to be their own Governors,must arm themselves with the power knowledge gives.'
James Madison, 1822
'Believe none of what you hear and half of what you see.'
'We are all born ignorant, but one must work hard to remain stupid.'
Yes we do. We do cover US since 1999, so people out of USA knows more about USA as americans do. Unfortunatelly.
The CFR is The Sovereign in North America's commerce, investment and governmental activity and endeavors.The CFR, through its agents, primarily Sanford Weill, Bill Clinton and Robert Rubin repealed the Glass Steagall Act.
The repeal was the foundation, that is the keystone, that provided for non transparent financial manipulation and use of leverage to revolutionize the activities of investment beginning in 1999, to amass huge fortunes for the investment bankers who designed, marketed and oversaw the use of leveraged investments, and to generate awesomely speculative endeavors at hedge funds, which have gone unregulated by government oversight.
The repeal has produced an oligarchy of power and elite, in intertwined media, retail banking, investment banking, home mortgage sectors, via interwoven board of director memberships of the Federal Reserve, corporations and government administration, extending into the the White House, via secretary of the Treasury Paulson, former executive of Goldman Sachs.
And the repeal enabled leverage, to be conceived, deployed and expand, not only in the residential mortgage sector, but a host of other sectors as well, such as, municipal bonds, and derivatives such as credit default swaps.
Click to view link
Posted by Tyson on 07/05/11 08:11 AM
Regarding the suggestion of moving your gold/silver offshore: Pray tell, how do you plan to access it once it is off-shore? What gaurentees do you have once the country is locked down the party securing it will ever give it back? Please give advise for those that have modest physical holdings of gold and silver. In the collapse of the dollar/economy my silver and gold are better in my hands for barter trade and wealth than worrying over whether less than one percent of americans will have their gold/silver taken by nice government men in shiny shoes.
You forget that the vast majority of those that have physical holdings of gold and silver also have brass covered lead precious metals as well, so very unlikely that it will be taken easily.
People, don't move your gold and silver off-shore----stupid idea with no merits!
Posted by mirthpro on 07/02/11 12:39 PM
Moving gold offshore is a great idea, but what is the best way to do it? Would you trust a shipping agent? Bring in gold coins on your person through airport security and hope they don't confiscate it where you land? I've heard that the metal detectors do not detect gold bullion coins...true? Or, better to empty into the X-Ray tray?
Posted by Seadragonconquerer on 06/30/11 10:59 PM
Actually, when converting from SLV to bullion awhile back, I allowed it to be put in a JPM vault. Since JPM and friends are currently at the top of the Universal Ponzi, I don't figure that the gub'mint is going to be stealing anything from them. And in general, I don't care for this libertarian "just run away" advice. We run away, the globalists win: the issue is going to be decided right here in America, not in pussified, disarmed Europe.
Posted by free on 06/30/11 09:43 PM
Always good to here from Mr Holland, he says it the way it is, this gentleman should have your ear.
Posted by dotti on 06/30/11 03:20 PM
It may seem strange to call Mr. Holland's article "refreshing", but that's how I see it.
Here's why: so many articles make a vague reference to the collapse of the dollar, or maybe even the global economy. Mr. Holland fleshed it out with a plethera of possibles. Martial law, restricted payments of SS benefits, means checks, confiscation of gold/silver, restricted access to bank accounts and safe deposit boxes.
Thanks to Mr. Holland for yelling FIRE in a clear and distinct voice!
Posted by dotti on 06/30/11 03:13 PM
"The dollar is backed by gold (but you can't have any)".
I know it's a tragic situation, but your phasing made me smile!!!
50,000 in my entire county. A "good job" here pays $30k.
But everybody has a gun.
Posted by rossbcan on 06/30/11 01:49 PM
The grim reaper of "Mathematics of Rule" (Reality) is on the ball, since the intelligent / morally aware are not, rebalancing accounts to endorce the truisms that, in the long run, "Crime does not pay". "what goes around, comes, around", "chickens always come home to roost" or, in general "actions ALWAYS have predictable consequences", independent of whether you like it, or, NOT:
Click to view link
Posted by David_Robertson on 06/30/11 01:10 PM
Excellent advice. I have sent this article to my mailing list of friends and family.
Posted by amanfromMars on 06/30/11 12:21 PM
Whenever elitists do not reply to events are mails driven by others for their controlling share in commanding commendable pleasures. Is this message, a mail, revealing events to be written?
And the answer to that should be a resounding yes. :-)
[blockquote]Sublime IntelAIgent Server Work
Posted Thursday 30th June 2011 14:13 GMT
"the state government might want to create an "international training center for search vultures."" ...
Click to view link,1518,770994,00.html
Sounds like a special academy for agents with certain gifts.
A little something for Offices of Cyber Security to Support with MIServices .... for the Bounty that IT Delivers with Additional Assured Benefits.
It is only a small matter to write them into the script presenting a future scenario which replaces a depleted, barren landscape devoid of animal passion, with that which it needs and feeds to lead and seed.
Then is the Past rendered a Memory and the Future AIMagic Helter Skelter Ride.
I Kid U Not. :-) The Program is Launched and Fully Functional Live Operational.
Click to view link [/blockquote]
Which sort of puts the President in the White House in a position which he needs to know, if he is in critical and strategic need to know power controlled groups.
Oh, and I thought the mail read with the order of the paragraphs reversed, delivered it programs more clearly.
Sorry, DB, for being so cryptic, but just for now is it probably necessary whilst a few foundations are safely toppled.
Posted by John Danforth on 06/30/11 07:55 AM
I have no place to run and likely wouldn't make it out of here. So it is here I will make my last stand if need be.
"Fake gold backing". I believe this is the back-up plan. "The dollar is backed by gold (but you can't have any)".
Posted by Hognutz on 06/30/11 04:12 AM
Great words of wisdom Mr. Holland! But I ain't leaving. I am already in my place of retreat. I have beans bullets and band-aids, and it will have to do.
You are correct too ,that the collapse could come at any moment......the elite could already have a fase flag in the works. martial law anyone?