Jim Watkins | June 3, 2024
Los Angeles looking East from MacArthur Park District towards downtown, home to 8 million people. (Photo AP)
For over a decade a large number of economists have been telling us the markets will collapse. After the very slow comeback of the real estate crash in 2008, the U.S. deficit increased like a snowball.
Today, it costs a billion dollars a month in interest just to pay on the debt without paying down the principle because government keeps increasing spending on things like endless war and paying off the loans of millions of people.
It is predicted that, by 2030, the U.S. deficit will be surpass $50 trillion dollars. Today, in order to pay off the debt every single U.S. citizen would need to cough up $230,000.
A British economist declared recently before Parliament and before an audience of fellow financial advisors, planners and bank owners in London, “the system is broke, the public just doesn’t know it, yet.”
The only reason people are not panicking now and making a run for their money is because they are under the illusion their money is safe. It is not.
In a single night and from even perhaps a small triggering event, from a misplaced algorithm to a massive Chinese bond buyback, the entire banking system could collapse leaving banks and banking customers with nothing. It would be like a gigantic whirlpool sucking everything down at once. There is simply not enough cash in the system to cover the debt that exists. Eventually the debt will collapse the nation’s economy.
With the advent of fast information, the real-life effects of a sudden crash would send panic to everyone more quickly; banks (with government backing) would be forced to stop all credit transactions.
If, by chance, you heard the news early that the stock market crashed by 30%, by the time you got into your car and drove to the nearest ATM, chances are you would only be able to get $300 dollars out, or the ATM would be out of cash altogether because a thousand other people heard the news before you.
The employer that pays you would have to hold payment until they receive payment from their debtors, and everyone would be in the same boat. Actual dollars would be worthless and credit would be strictly limited. The federal government would have to step in, and the next phase would entail switching to a digital currency system controlled by you know who.
THE SET IS IN
One can argue we are already in a digital currency system because we use our ATM cards, or mostly credit cards instead of cash. In the new system there is no credit or cash anymore. The credit institutions are over-extended, actual wealth is consolidated to a few holding companies, but the U.S. dollar is almost worthless, and the feds cannot simply keep printing more money.
For every new dollar printed another dollars loses its valuation until the dollar itself becomes worth less than a penny. Look to Venezuela to see what this looks like today with the bolivar; just a week ago the Cuban dollar dropped to almost nothing and banks had to close to avoid a run.
The chain reaction from the government default affects pensions, medicare, social security, along with 401k’s and IRA’s tied to stocks. It is not inconceivable the stock exchange could lose 60% its valuation overnight.
But the federal government, whose policies are the primary driver of the financial crash, will appear as “the only solution.”
The New Deal is officially dead. It will have died because the takers outnumbered the producers, and because the growth of government destroyed production through waste and inefficiency. The government produces nothing, but it sucks everything else in as it gets larger and more overreaching.
They say one theory of dinosaur extinction is they grew too large and could no longer feed themselves; their relatively small brains could not solve the complex problem of food preservation. They ate everything until there was nothing else left to eat.
It is a metaphor for today’s government.
What I lose sleep over is the knowledge that civilization as we know it will cease to exist and everything will come apart.
The only possible outcome is a totalitarian State allocating resources so that people don’t starve. But I fear, even that scenario won’t be prevented if history is any indicator. After all, over one-hundred and fifty million people died in the 20th Century from massive starvation caused by totalitarian regimes who told the masses “they alone could save them.”
It would be hard to fathom, but people will have no choice but to comply to whatever the government says to do in order to solve the very problems they created.
But take note! Our leaders will also find ways to place the blame elsewhere, away from their policies; they will say it was because of climate change, or they will say the economy fell apart because of corporate greed, or that it was because of Trump’s crazy policies, or right-wing nationalism, or because of social injustice, and misinformation from people with dangerous ideas spreading hate.
Not until the 2020 pandemic would I have ever believed such a nightmare scenario could suddenly thrust itself into full view.
But with the ongoing and almost delirious denial of the U.S. debt balloon, the total disregard for border integrity, the full-blown embrace of the surveillance state, and the willingness of our leaders (with citizen compliance) to use force in order to get people comply as we saw during most of 2021, I am now more convinced than ever before that such a societal collapse is not only inevitable, but probably likely to occur within the next few years.
If you want to see the future in America, look at Portland, or Oakland, or The Kensington District in Philadelphia, or the slums of downtown Los Angeles, or New York City at night. There you will see the beginnings of what is to become the norm if Americans don’t realize that we are being set up to fail by a power structure that needs the system to fail before the people rise up and regain control of it.
Sadly, half the world is being distracted by their hatred one a man who, like Julian Assange is now fighting for his life against the Deep State that wants him removed. We are purposely being pitted against each other.
Like him or hate, Trump represents the opposition the Left fears most, and if you support the system, you are supporting your own downfall.
Jim Watkins is a writer, father and husband and the host of the national radio program America Today and the Podcast Speaking Out America on Spotify.
Follow him on X @realjimwatkins1 or at jimwatkins1.com
JIM WATKINS 