 Economic Meltdown, Secessionist Crackup?
Nelson Hultberg
nelshultberg@aol.com
December 15, 2003
It is High Noon for the
cause of freedom and sound money.
I had not thought about our
perilous future for some time. But a question from a reader started
me contemplating again the terrible dangers lurking up ahead
because our government has spent the 20th century wallpapering
the world with flim-flam dollars. He asked, "What likelihood
was there that the U.S. and other foreign governments would sell
off significant portions of their gold reserves in order to reduce
their debt, should the price of gold become tempting enough to
do so?"
This would never happen, of
course. America's current national debt is $6.9 trillion and
its upcoming liabilities are approximately $44 trillion. So the
$140 billion worth of gold in the U.S. Treasury's vault would
be but a drop in the bucket in comparison. Even if gold would
skyrocket to $3000 per ounce (which it could well do), it still
would give us only $1 trillion to dispense toward $50 trillion
in government debt. So selling off gold at higher prices would
never be a workable solution to our catastrophic problems.
But the governments of the
West are definitely selling off portions of their gold -- just
not to pay their debts. They are doing so to try and "manage"
the price of gold for as long as they can. The Fed and the U.S.
Treasury know that they have no chance of keeping gold under
$400 per ounce while they devalue the dollar down into the 60's
on the USDX charts. But they hope that through their secret machinations
with the mega-bank cartel in New York, they can keep a slowly
rising lid on the price of gold and prevent a price explosion
that would set off a panic amidst the world's investors. This
is of crucial importance, for such an unbridled explosion would
send the bond vigilantes into overdrive. U.S. Treasuries would
be cast over the rail like so much flotsam at sea. Interest rates
would scream. The Dow would crash. Asians would head for the
lifeboats. Arabs would demand Euros for their oil. America would
cease to be a superpower. The economic meltdown would flatten
the world's economies like flower gardens in a hurricane.
Such a move would doom America
to second rate status among nations for decades to come. As much
as our Fed tries to denigrate gold to the public, it realizes
full well the profound importance gold plays in history and in
investment psychology. Exactly how much credence the Fed gives
to the Keynesian hogwash about gold being a "barbarous relic"
is hard to say. But it surely knows that without gold in its
vault, the world would have even less faith in the dollar than
is now developing. Without faith in the dollar, America's standard
of living would plummet.
How then will the Fed's "price
capping" tactics affect the price of gold in the long run?
Mike Bolser of Le Metropole Cafe made a most astute observation
the other day in explaining that since the Fed is running out
of metal, we can be sure that they will be frantic to try and
conserve their rapidly diminishing supply so as to control the
price of gold for as long as they can. This will prohibit them
from any kind of heavy suppression that crashes the price.
In other words, they can no longer reverse the price escalation
with their manipulative sales. They can only try to bring about
an orderly price rise in an attempt to slow down the price volcano
threatening to erupt and take down their rotted system. This
is what cornered rats do when they have no successful way out.
They choose what they perceive to be the least injurious path.
Remember the brilliant 1987 movie No Way Out with Kevin
Costner and Gene Hackman. Hackman played the American Secretary
of State who was advised by his slimy assistant (Will Patton
in a masterful performance of criminal bureaucratism) to attempt
a cover-up of Hackman's indiscretions and crimes. But in end,
there was NO WAY OUT for this cornered rat. Well, today's bureaucratic
rats at the Fed have no way out from their past criminality either.
Ninety years of egregious counterfeiting and Keynesian fallacies
have brought them to such an ugly predicament. Greenspan's own
treason in '96 when he bought into the "new economy"
nonsense and gunned the money supply is now coming back to haunt
him. Such are the penalties for hubris and power lust. Such is
the fate of those who abandon right principle.
So, our government will hang
on to the bulk of its gold and try to pay off its overwhelming
debt by inflating its way out and paying with the cheaper dollars
of tomorrow. They will try to buy time with a vast array of market
manipulations and financial gimmickry. They will grasp at straws.
They will jawbone and delude themselves. They will stonewall
and dump all insurmountable problems into the next administration's
lap. And, of course, they will continue to relentlessly inject
massive "liquidity" into the system in hopes of not
having to incur a crash on their watch. This kind of short-range,
pass-the-buck inflationary strategy will be pursued until eventually
the major trading nations (Europe, Japan, China) no longer wish
to hold dollars, or dollar related assets, in reserve. When this
happens, there will be a mass dumping of dollars on the Forex
markets and a mass exodus of dollars out of the U.S. This will
bring the most ungodly chaos to the U.S. with a stock market
crash, a dollar crash, a bond market crash, and a blow off top
in the gold and silver markets with gold screaming past $1000/oz
to who knows where.
At present the rest of the
world's nations are fooling themselves into believing that the
dollar still has worth and will somehow hold its worth into the
future. But the rest of the world is beginning to get very nervous.
Another year or two of the Greenspan-Bernanke inflationary policies
(combined with the Demopublican spendaholics in Congress and
our imperious pursuit of world hegemony) and serious repercussions
will begin to shatter the veneer of normalcy now prevailing.
No way to know precisely when,
or in what manner, the monster crisis will unfold. But it will
indeed unfold. The structure is too rotted from within. Our policies
and perspectives are too warped, our excesses too huge. Too much
damage has been done to monetary integrity, ethical propriety,
social congruity. Too many political humbugs and parasites, too
many barnacles have accumulated on the ship's hull of our life's
energy. The Rubicon was crossed in 1971. When Nixon closed the
gold window to the world, he opened the lid to Pandora's Box.
He tore down the last prevailing bulwark of economic sanity.
Most probably the monster crisis
will be precipitated by the rest of the world's nations reluctantly
withdrawing their support from the dollar in a last ditch effort
of self-defense. They will con themselves into believing that
somehow their dumping of dollars will be absorbed by the world
market without terribly drastic consequences. Europe, China,
and Japan will be like the holders of tech stocks in the Nasdaq
in early 2000; there will come a time when it dawns on them that
America is not going to be able to stop inflating and that therefore
their dollar denominated reserves are ridiculously overbought
pieces of paper headed for a big time plummet in value. They
will then stop trying to slowly leak dollar conversions and U.S.
bond sales into the market and will rush to dump many of their
dollar holdings all at once in an effort to beat the crowd. This
will suck millions of big money private investors into a rush
for the exits also. The crash of the dollar, as it drags our
stock and bond markets into oblivion, will be horrendous.
The Federal Government will
panic and establish dictatorial controls over the major economic
power centers such as banking, international trade, and critical
corporations. Fascism will arrive in its naked form (we have
it in a disguised form at present). Exchange controls will be
enacted. It will be illegal to take money out of the country.
The Patriot Act will be used more and more oppressively. Big
Brother tactics will be heaped upon Americans. If terrorists
capitalize on the turmoil, martial law will be put into effect.
The beginning stages of Orwell's nightmare will descend upon
us. Geographic blocks of nations will gradually form into major
trading and defense zones -- e.g., CanAmerica, EuroRussia, Chinasia,
etc.
The Secessionist Crackup
As bad as it will get, however,
there will still be hopeful paths to take for the survival of
freedom and sanity. One is that in the chaos that descends upon
America, numerous state secessionist movements will rise up with
strong voices advocating withdrawal from the tyrannical control
of Washington. I believe Texas will be one of the leaders, and
will possibly draw the states of the old South along with some
of the western states into a historic split of America. The split
will be between the two philosophies of big government statism
and small government constitutionalism.
If things really get catastrophic,
and if there are enough clear voices enunciating why Washington
is to blame for the disastrous mess we're in, then other states
could join in the Texas revolt also. You might have the great
middle section of America (from Ohio to Idaho and the Carolinas
to Arizona) splitting off from Washington D.C. and its liberal
northeastern client states. You might have California, Oregon,
and the state of Washington forming their own country. You would
then have three America's -- Eastamerica, Texamerica, and Calamerica.
The guiding creed for Texamerica
would be to restore a limited Constitutional government that
outlaws paper money and any form of income taxation. Gold would
be restored as money. Free enterprise would flourish again. Statesmen
like Ron
Paul would rise up to govern as the Founders envisioned.
Sound like a crazy dream? Think
again. As the long Kondratieff winter and its severe economic
crises become more and more entrenched in the upcoming years,
there is a distinct possibility that the nation's intelligentsia
will open up to the truth they are presently rejecting. If enough
of them could be reached over the next decade, there could come
a time when the establishment and its intellectual honchos no
longer command fervent allegiance from the public despite the
guns and tanks they will ultimately use to back up their dictates.
The establishment's talking heads would then be discredited.
Its central banking philosophy of paper money would be scorned.
Its Demopublican political monopoly would be seen for the insidious
despotism that it is. This is the nature of men. Trying times
have a way of opening them up to radical truths that they would
ignore in calmer times.
One thing is for sure; the
next two decades are going to be tumultuous and tragic. The events
that unfold will be far more radical than we dare envision today.
Paradigms in banking, politics, and philosophy will be overturned.
Wrenching lifestyle shifts will be forced upon millions. Something
akin to what happened after the fall of the USSR in 1989-91 will
take place in America. Our ruling regime will collapse and bring
Russian style economic hardship to us all, but the ultimate outcome
here will not be so certain, nor so quick as it was in Russia.
The old guard statist establishment here in America is not as
hated as the Moscow commissars were. The lines of demarcation
between tyranny and justice are more blurred here. The citizens
of America are still gullible and still eager to sanction their
enslavers. The Demopublican statists still command a large legion
of dupes and useful idiots. They will make use of that allegiance
and fight viciously to hold on to the power they have so nefariously
usurped. How things go will depend upon whether the nation's
intelligentsia bring themselves to reject the shams of statism,
or whether the government-media-academy triad is able to continue
bamboozling them. What is somewhat unnerving is that whoever
wins this battle to control the destiny of our country will determine
the fate of freedom on the planet for centuries perhaps. It will
be a monumental clash of ideology, political power, and money.
Why We Are Disintegrating
as a Society
In a recent article, Invasion
of the Mind Snatchers, I outlined the major reason why
America was disintegrating economically, politically, and culturally.
I stated that we are being propelled toward a one-world despotism
because of a powerful "collectivist curvature of the mind"
that took over our intellectuals starting back in the early 20th
century. This curvature of the mind has resulted in a master
conspiracy to move America into a New World Order. The master
conspiracy is comprised of an array of SECRET CONSPIRACIES (such
as the Rhodes Society in England and its front groups such as
the CFR and the Trilateral Commission in America). But what so
many astute observers in the freedom movement fail to grasp is
that the "secret" conspiracies are only the tip of
the iceberg. The real conspiracy goes much deeper.
To genuinely grasp what is
taking place in America today, we need to go further than just
an expose of conspiracy front groups. We need to go to the root
cause of the conspiracies. We need to ask what it is that continually
spawns these secret organizations? Why are all these conspirators
conspiring to move America into a one-world despotism? What is
it that motivates them to want to centralize our government,
debase our money, confiscate our earnings, regiment our economy,
and form a one-world government? What makes them so eager to
trash our Constitution as if it was nothing but yesterday's newspaper?
What makes them hate the free enterprise system that built America?
The answer to these questions lies in ideology, most specifically
the "false" ideology that saturates the curriculums
of our schools from the third grade on. Dwelling behind the curtain
of all the secret front groups is a giant TACIT CONSPIRACY in
the school system that functions as the grand fueling mechanism
of the secret conspiracies. See my article, Invasion
of the Mind Snatchers for a more detailed analysis of
this point.
It is in the realms of philosophy,
economics, political science, and history that a relentless stream
of highly intelligent ideological robots are being formed every
year to go out into the world and work their way into the power
centers of society. The "tacit" ideological conspiracy
feeds the "secret" political conspiracies. The tacit
conspiracy is the cause; the secret conspiracies are the
symptoms. The tacit conspiracy hides in plain sight. It dominates
our public schools and universities. It talks openly about its
goals, but it does so in a code language of utopian rhetoric.
It masterfully makes use of deception, sophistry, euphemism,
and lip service so as to mislead the masses of well-meaning Americans
who do not possess the intellectual training to decipher the
evil premises and long range ramifications that lurk behind the
utopian rhetoric. While it is immensely important to expose the
secret conspiratorial groups operating in America and throughout
the West, it is even more important to get people to understand
and begin to fight the tacit ideological conspiracy that has
taken over our schools. The secret conspiracies are a horde of
little rodents prowling the political back streets of our society.
The tacit conspiracy is a monstrous fire-breathing dragon dominating
our schools. The rodents are effects; the dragon is the cause.
So we must always keep our causes and effects straight. Don't
stop trying to snuff out the rodents, but let's also start throwing
some freedom grenades at the dragon.
Thus, to say there is a political conspiracy among our
elite bankers, politicians, and corporate moguls to destroy our
free way of life does not adequately capture the reality of what
is happening to us. These evil men represent only the surface
effects of the real conspiracy, which is ideological.
Reprehensibly false ideas in philosophy, economics, political
science and history, taught by pre-eminent thinkers of the past
two centuries, have slowly seeped into our culture to reshape
our worldview, our ethical sense, and our economic understanding.
Out of this reshaped worldview has come the elitist army of "New
World Order Apparatchiks" that now dominates our media,
our mega-banks and our Demopublican Congress.
 Making
a Difference
If you would like to learn
more about what has brought the world to this precarious state
of affairs, and what you can do to help save the cause of freedom
in the aftermath of the coming economic meltdown, go to the following
website: http://www.afr.org.
Americans for a Free Republic is an organization formed to enlighten
the public about the TRUE causes of our present crisis and what
must be done to solve the horrific dilemmas we now face as a
country and a people.
Help us spread the word. Do
not let the tyrants and their legions of dupes win by default.
Do not sanction the enemies of freedom through apathy and cynicism.
Do not allow inertia to lull you into thinking the other guy
will warn the people. We all need to become Paul Reveres. We
all need to acquire, to the best of our abilities, the steel
of Patrick Henry, the nobility of Washington, the logic of Jefferson.
We need to take a page from
the story of the old man and the starfish. After a huge storm
had brought a series of mini-tidal waves to his beach community
one night, there were tens of thousands of starfish washed up
on the sandy shore that next morning. Amidst the masses of starfish
the wise old man could be seen patiently picking them up and
tossing them back into the sea. Along came a young lad in his
twenties with green hair, eyebrow rings and a scornful face.
He started laughing and mocked the old man with cynical derision.
"You have to be crazy, old timer. You can't possibly save
these starfish; there's thousands of them. You're wasting your
time you fool. YOU CAN'T MAKE A DIFFERENCE!"
The old man looked up at the
insolent youth and smiled. He then reached down and picked up
one of the struggling starfish and winged it far out into the
water, replying to his tormentor, "Made a difference with
that one, didn't I?"
Everyone of us has to choose
whether we will try to make a difference, or whether we will
give in to indifference. Will we fight to inform our neighbors,
or will we succumb to craven apathy? Will we be an intrepid rebel
or a cynical Tory? Will we opt for principle or popularity? Will
we be strong or weak? All of us have the power within us to become
something other than vegetating blobs while we are on this earth.
That power lies in our minds and in the strength of our personalities.
Those who possess that inner strength will feel compelled to
spread the word in any way they can for as long as they live.
They will feel compelled to wing as many starfish back to life
as they can. Those who are weak-minded will scorn all this as
senseless, just as the green haired youth did. They will choose
to remain a vegetating blob. They will sanction their enslavers.
They will cynically smirk at messages such as this. This is the
nature of humanity's snivelers. They prefer the warm security
of the authoritarian State to the uncertainty of a free economy.
They wish to be taken care of, to avoid the rigors of reality.
They wither in face of turmoil. And when they see others fighting
valiantly against insurmountable odds for the freedom they have
scorned, they are subconsciously humiliated because they are
not deep in the thick of such a fight themselves. They have chosen
to avoid the fight, to ease through life, to sell out their principles,
to collaborate with the weasel-tyrants. Thus they must find a
way to salve their consciences. That way is to mock the Davids
who go up against the Goliaths, to smear the Rolands of Roncesvalles
that history hands down to us as God's exemplars.
You the reader have one paramount
choice to make regarding all this. It is High Noon for the cause of freedom
and sound money. Will you
fight with God's exemplars, or will you hide behind the protective
doors of establishment privileges and lies? If you choose to
fight, then your first and foremost duty is to become aware of
WHAT is happening and WHY it is happening. That awareness can
be found at the AFR website [ http://www.afr.org
]. Your second duty is to emulate Paul Revere and warn all those
in your sphere of influence. You do this by making a diplomatic
nuisance of yourself, by pleasantly pestering your comrades to
wake up to the sham of Demopublicanism. You do it by convincing
them that there are grander values in life than brand new SUVs;
there is something called the American way of life. It is a way
of life that requires personal independence, small government,
gold money, and free enterprise.
Tyranny is stealing into our
lives like crack cocaine filters into a ghetto -- beguiling and
lethal. It is devastating everything in its path, everything
that is noble, honorable, and free. All the stoic traditions
of strength, all the great lessons of logic, all the revered
truths of Nature that have been handed down to us throughout
history are being assailed at this very moment in history --
this brief span of decades that makes up the latter 20th, early
21st centuries. The weasel-tyrants and their unctuous lackeys
have control of the intellectual, political and banking power
centers of our country, but they don't have control of the truth.
They don't have control of our integrity as humans. They don't
dominate our inner psyches. They can't prohibit us from rising
up and rebelling. They can't extend their enslavement UNLESS
WE SANCTION IT! They can only win if we refuse to fight them.
They seek the weak-minded, the payers of lip service, the conformist
dupes who eagerly memorize the cliches of collectivism so as
to find their worth through herd acceptance. What the elites
fear is a populace with the strength of William Wallace, the
daring of Washington's band crossing the Delaware in the dead
of winter, the ingenuity of Sir Francis Drake in his Caribbean
skirmishes. They fear Americans who are willing to fight for
the original America. Up against such heady citizens, the weasel-tyrants
will fade like flies in the winter. Our job is to build an army
of such heady citizens.
You can help by joining the
cause. Start by getting out of debt, and into gold and silver.
Then become informed.
Read the books of freedom and
sound money, and pass them on.
Bring people to the website
where you are reading this essay;
Bring them to AFR's website.
Bring them to a state of urgency.
Bring them to the truth of
our Constitution and to the laws of Nature and Nature's God.
Nothing other than this kind
of effort will suffice. You cannot help truth and freedom by
watching moronic TV shows at night; that is how the elites control
you. They flood the airwaves with mindless entertainment. It's
our version of Brave New World's "soma" for
the masses. Today's TV is for zombies and dullards. The same
applies to our movies. Next time you're in the theater, look
around you at all the somnolent hoi polloi stuffing their
faces with popcorn and their psyches with trashy sexploitation.
Tyrannical regimes allow slaves to have soma and sexual freedom.
But they take away their economic and political freedom. And
the dupes buy into it, believing that if they are allowed to
flaunt society's sexual mores and zap their brains with cocaine,
then the country is still free. Huxley was the first to point
out that modern totalitarian rulers leave the "activities
of sex" alone, but regiment the "activities of production."
This allows those who are servile by nature to con themselves
into voting away their REAL freedom -- their freedom to keep
the fruits of their toil, to price their products as they please,
to pay the wages they please, to associate with whom they please,
to speak and worship as they please. Look around you; there are
far more servile people in this human race than there are independent
people. This is the reason why dictatorships dominate the history
of man; the majority of humans want to be ruled. They want to
relinquish their meaningful freedom; it requires too much self-assurance
and grit.
The cause of America is the
cause of REAL freedom. Such a cause is impossible without gold
money, equal tax rates, limited government, and a self-reliant
people.
These are the stars to which
we must hitch our wagons.
These are the philosophical
bombs that we must hurl into Washington's swamp of political
leeches that is sucking the marrow from our lives.
When the Washington leeches
have so stultified our nation that ghastly ruin prevails throughout,
then is when the state secessions will begin.
All readers should make note.
A meltdown is coming; a crackup will follow.
Nelson
Hultberg
nelshultberg@aol.com
December 15, 2003
 Petition:
Ron Paul for President AFR
 Nelson
Hultberg is a freelance writer in Dallas, Texas. His articles
have appeared in such publications as The Dallas Morning News,
the San Antonio Express-News, Insight, Liberty, The Social
Critic, Ideas On Liberty, and The AIER Report.
He is the author
of Why We Must Abolish The Income Tax And The IRS (laissezfairebooks.com
and amazon.com), and is presently finishing a book on political-economic
philosophy entitled Reality's Golden Mean: The Case for Libertarian
Politics and Conservative Values.
_______________
321gold Inc
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