American Jubilee Coming?
Aug 22, 2009
"Considering the current US debt and its rate of increase, the US borrow and spend solution reminds an insolvent person who keeps on borrowing money, as long as there is anybody "silly" enough prepared to lend him. He knows that at the end of this process he will not pay anything back but simply declare bankruptcy, write off the entire debt and start its financial life anew."
I think this is precisely what will happen. The sheer size of the debt will force it, much like an individual is forced to declare bankruptcy when the debts become too high and it is hopeless to try to pay them off.
I suspect that the administration knows this, but they have not wanted to declare bankruptcy (Jubilee) until there is no one willing to loan them more money. That is the point where bankruptcy is inevitable.
It appears that we are now at the place where no country has shown up to purchase our bonds. Only the Fed is now purchasing them in any kind of quantity, but they are hiding this fact by setting up "fronts" in foreign nations to do the purchasing on their behalf. Such activity cannot last forever, and I suspect the Fed sees that once other countries stop enabling our debt addiction, then the great ponzi scheme collapses of its own weight. That is when there is no point in trying to keep up the charade. Time for bankruptcy.
I suspect that this bankruptcy will be thinly veiled by a change in currency from the dollar to the amero. Dollars will be convertible for a short time, and afterward will be worthless. This will flush out those trumks of dollars in the possession of the drug dealers in Columbia, of course, but most of their money is already in various banks that cooperate with them and get their "cut." It may be, however, that the Fed will only allow certain "friendly" countries to convert their currency to ameros, leaving the rest of them holding an empty bag.
However it works out, we will enter the time of unintended consequences. A lot of creditor nations will be angry with America, especially since the creditor nations will lose a lot of assets, while America will wipe out most of its own liabilities. Yet what can the world do, since America has such a large arsenal of nuclear weapons? The world will lack the ability to collect, and so while America will be strengthened by its clean slate, the rest of the world will be weakened--until they too repudiate all debt and start over.
An American Jubilee will force all other nations to do the same in order to remain competitive.
The world has never seen such an event in all of its history. The only way to be protected from the Jubilee is to refrain from holding assets that represent the debts of other people. In other words, don't be a creditor when approaching a Year of Jubilee.
It is probably not coincidental that these reports of an American financial crisis and even bankruptcy are circulating right now, with reports of a possible bank holiday in the next two months, along with a switch to the amero. Those who report these things generally recommend exchanging their dollars for gold or silver (and even food and other necessities) beforehand, since rising prices will probably be a major result. Rising prices means a decline in the value of the dollar.
With 2010 being an unexpected "Jubilee Year," it makes me very watchful of these things. I think we should raise the prophetic alert level to Orange.
Dr. Stephen Jones