When I was a child, I had a vision of my then distant future when 99.5% of the world’s population died almost overnight. That distant future is close to present reality. It does not have to be a war that kills 7 billion plus people. The Carrington event was a solar superstorm named after the amateur astronomer Richard Carrington who saw two enormous patches of intensely bright white light erupt from surface of the sun. That solar flare released the energy of 10 billion atomic bombs. In 1859 the largest magnetic storm in 500 years merely destroyed telegraphic communications. Today it would certainly take down the American power grid for 6 months which would kill 90% of the US population. The US Congress has been asked to appropriate a couple billions dollars to harden its power grid against solar storms. But that bill languishes in committee because American politicians are exceedingly dense.
1816 was a ‘Year Without Summer.’ It was thought to be cause by the Tambora volcano in the Dutch East Indies (Indonesia) which began erupting on April 15, 1815. The energy released was equivalent to 6 million atomic bombs. It sent 1.7 million tons of dust (particulates) into the air which blocked sunlight over North America in 1816. Tambora was the greatest volcanic eruption in the past 500 years. We currently have more than 2 dozen active volcanoes on the surface of the earth. We could easily have another ‘Year Without A Summer’. It would starve a few billion people to death if we had a series of volcanoes release an equal amount of ash over the space of a few months.
Methane hydrates are frozen crystalline deposits of methane gas and water found in large amounts on the ocean floor and in the arctic circle. A volcano could release enough heat to suddenly melt the methane hydrate in a large area of the arctic. In the past large methane releases have caused ‘die offs’ of mammal and human life in vast areas.
The four New Madrid fault earthquakes of 1811-1812, if repeated today, would unleash enough power to take down half a dozen or more nuclear power plants making earth’s northern hemisphere uninhabitable. The problem of nuclear meltdowns could be avoided if we forced the the US government to release its hidden Tesla technology. That would also make it impossible for a Carrington event to blow up out transformers because electricity would be generated locally.
Or we could wake up one morning to discover that Benyamin Netanyahu had decided to blow up that Iranian nuclear power plant. The Iranians have been given the Antey 2500 version of the S-300 anti-missile system that is in between the older S-300 system which the Iranians began building themselves a year ago and the S-400 which they are scheduled to receive soon enough. The Australian Air Force says that NATO aircraft like the F-18 were not deigned to penetrate space guarded by the Antey 2500.
The Iranians have rocket artillery with 1,300 pound warheads and a range of 130 miles. Rocket artillery could devastate the US Persian Gulf fleet within minutes. Iran, Syria and Hezbollah have more than 150,000 missiles which they would fire at Israel and at US Central Command forces in Afghanistan, Iraq, Turkey, Saudi Arabia, Kuwait and Bahrain. Israel would lose its power grid, its petrochemical industry, the cities of Haifa and Tel Aviv and maybe half of their military bases near Lebanon. The dollar would become worthless overnight and 120 million Americans would have no means of buying food.
Hint: Keynes devised his system of economics to work in periods of time when men suffered from monetary illusion. He could increase the money supply by 10% but prices would increase by a mere 2 to 5%. We could pay for present deficits by robbing the middle and working classes of their pensions and savings. Once that monetary illusion is pierced, people spend money as soon as it is in their hands or sooner in the era of credit cards. If consumers turn their money over 20% faster, then the same given amount of money will produce a 20% increase in retail prices. But, if the government increased the money supply 10% to help 120 million hungry Americans, then prices will rise 30% (20% plus 10%) or more. And that would guarantee Nationwide Food Riots defeating the government’s aim.
We do not have to have an insane Israeli attack on Iran to launch World War III or even a Carrington event to wipe out the power grid to get us killed. We could just let the Federal Reserve, The Bank of England and the European Central Bank continue doing what they are doing. Debt Based money and fractional reserve banking are sufficient to produce disasters.
World trade is grinding to a halt. There are no economies in recovery that can pull us out of our current economic malaise. The Baltic Dry Index measures large scale shipping activity. It is at an all time low. Inventories are up. Retail sales are down. Auto sales are crashing despite the growth in really bad auto loans. The Chinese stock market is down despite the creation of something called Securitized Margin Debt. These are bonds that someone has guaranteed. 90% of these bonds have a AAA rating. This proves two things. China is in worse shape than we imagined. And Chinese people are not as smart as we thought.
Peter Schiff had the best insight into the devaluation of the Chinese yuan. He said that the euro is down 30 cents against the dollar and that the Yen is also down. When NAFTA was passed the Chinese pegged their currency against the dollar. This shut down 57,000 manufacturing plants in the US which was very bad for 99% of all Americans but very good for Wall Street and China. What the Chinese did last week was to allow the market to correct a few percent the value of their currency. But they also removed their link to the dollar so that in the future they will no longer have to buy dollars and US Treasury bonds to maintain a subsidy to American politicians and consumers. And that is very bad news for Washington politicians and the people who vote for them.
It means that in the future the only one left standing to finance American deficits will be the Federal Reserve’s printing press. That means Hyperinflation as soon as foreigners start dumping dollars. Hyperinflation will mean that the food on our store shelves will be too expensive for the bottom half of society to buy. Wall Street is hoping that 315 million Americans will use 350 million guns to kill each other at the grocery stores.
The Dollar is doomed because we have a Debt Based money. We cannot have money unless we first go into debt. Fractional reserve banking dictates that the assets backing our loans are a lot less than what we need to undo Bubbles in real estate, stocks, bonds, currencies and commodities. It was fractional reserve banking that led to the creation of too many retail stores, escalating tuition costs, and building the wrong kind of housing.
As Professor Steve Keen said, we are entering the worst financial disaster in 500 years because we have more Unpayable Debts to cancel than anytime in the past 5 centuries. Keen also said that Britain has even more bad debt than the US to cancel so their coming Depression will be worse than America’s. The professor advocates Debt Cancellation as the only solution. I have quoted this economist many times but still nothing has been done to cancel our Unpayable Debts. As I said before, a Depression is a period in time when Unpayable Debts are cancelled en masse. The only painless way out of a Depression is through worldwide Debt Cancellation. This economic policy was first discovered 4,500 years ago in Sumer (Babylon or modern Iraq).
The only people who can stop this slow motion train wreck are the US military junior grade officers through a coup. The senior officers are as useless as the Republican and Democratic leaders in the House and the Senate. None of the major party candidates for President favors Debt Cancellation and the end to wars for Israel. If there is no US military coup, then we can pick our favorite ‘End Times’ scenario, sit back and watch Nationwide Food Riots followed by Race Wars take down America.