I don't think there is any way around the collapse. An economy based on debt can only go on for so long, and it is obvious they are about to the end of their rope. Weaker European governments are already failing (and their gold being stolen from them) and the rest of the West is seeing what will befall it as well.
America is even in deeper trouble, only it has two things that is propping it up. One is that its currency is used for oil trade - the petrodollar. The world is moving away from the dollar, however, and that is going to cause us a LOT of pain. The other thing is that it is still a superpower, but that is now only because it still has a lot of cool toys and the bomb. Again, the world is moving away from viewing the U.S. as a superpower it should consult for anything other than handouts that are to be put on its soon-to-be-worthless credit card.
That brings us to the last point. NAFTA gave the avenue of exit for all the mega-corporations, and exit, they did. The wealth is gone, the ability to create national wealth has been strangled yet TRILLIONS of dollars are on the national credit card and more is being piled on top. Why is such insanity being committed? Why would such an unpayable debt be made? They know this party is about to come to an end, anyway, and, heck, they are going to simply step off the continent and let the "people" take responsibility, anyway.
Sad thing is, we will never be able to find the real culprits and put their heads on pikes.
Here's an article by Ron Paul. Smart guy. Would have been a very good president:
How Long Will the Dollar Remain the World's Reserve Currency?
We frequently hear the financial press refer to the U.S. dollar as the "world's reserve currency," implying that our dollar will always retain its value in an ever shifting world economy. But this is a dangerous and mistaken assumption.
Since August 15, 1971, when President Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold, the U.S. dollar has operated as a pure fiat currency. This means the dollar became an article of faith in the continued stability and might of the U.S. government.
In essence, we declared our insolvency in 1971. Everyone recognized some other monetary system had to be devised in order to bring stability to the markets.
Amazingly, a new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency with no restraints placed on it-- not even a pretense of gold convertibility! Realizing the world was embarking on something new and mind-boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC in the 1970s to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence backed the dollar with oil.
In return, the U.S. promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup. This arrangement helped ignite radical Islamic movements among those who resented our influence in the region. The arrangement also gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as the dollar flourished.
In 2003, however, Iran began pricing its oil exports in Euro for Asian and European buyers. The Iranian government also opened an oil bourse in 2008 on the island of Kish in the Persian Gulf for the express purpose of trading oil in Euro and other currencies. In 2009 Iran completely ceased any oil transactions in U.S. dollars. These actions by the second largest OPEC oil producer pose a direct threat to the continued status of our dollar as the world's reserve currency, a threat which partially explains our ongoing hostility toward Tehran.
While the erosion of our petrodollar agreement with OPEC certainly threatens the dollar's status in the Middle East, an even larger threat resides in the Far East. Our greatest benefactors for the last twenty years-- Asian central banks-- have lost their appetite for holding U.S. dollars. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever. Foreign central banks understand that American leaders do not have the discipline to maintain a stable currency.
If we act now to replace the fiat system with a stable dollar backed by precious metals or commodities, the dollar can regain its status as the safest store of value among all government currencies. If not, the rest of the world will abandon the dollar as the global reserve currency.
Both Congress and American consumers will then find borrowing a dramatically more expensive proposition. Remember, our entire consumption economy is based on the willingness of foreigners to hold U.S. debt. We face a reordering of the entire world economy if the federal government cannot print, borrow, and spend money at a rate that satisfies its endless appetite for deficit spending.
I know zilch about economics. How would a collapse affect us? Would we find the price of everything (including food) has suddenly gone through the roof?
Will there be shortages of everything?
Will banks be locked down by the govt to prevent us getting at our money?
The up side of a currency problem, especially if it is global, is that it will be resolved in a matter of weeks. Those who have purchased silver and gold with the old currency before it spiraled out of control will have protected their wealth, as they will be able to trade it for the new currency, if they want to.
Denton, you are right about Ron Paul. I voted for him in the primaries. Now it is about defeating Obama Care so we can hold our breath for another 4 years. Dr Paul is retiring but his ideas are still going. Maybe enough people will wake up that we can have some one like Rand Paul in 2016.
In all likelyhood, we are going to see the economy go completely down sometime next year. The draught, was never figured into the already crumbling economy, and will add fuel to the fire, much like pouring gas on it. Even if Romny does get elected, I don't think it will be in time to do much that will matter. Getting rid of bummercare will be a good start. Opening up the coal mining and powerplants will help, and restarting offshore drilling, keystone pipeline, and Anwhar will all contribute to turning it around, but alas , I really think o;bummer has already done to much damage to us. He hates this country and it shows. If he loses the election, I see him as a little kid, stomping his feet and breaking things. In his case, anything he hasn't already broken, will be his target.
Romney has no intention of saving the country, either. It isn't his job, as assigned by those who pull the political strings. He was a liberal before he began sounding like a conservative. Socially as well as economically, and with as little concern for the constitution, he is Obama, but without the racist agenda.
At this juncture, we'll need a constitutional president, a constitutional congress, and a fully prepared population to pull out of the nosedive. I don't see any of that happening.
I think , like he promised, he will start to turn the enonomy, but don't think he will get to far. But I really think he will try. Hopefully, he will fool everyone and do more then we think. I think about all his grand-kids, and don't think he really wants to quash their future. I live in a mostly Morman area, and know some of them quite well. For the kids, grandkids, I honestly believe he will do all he can. Keep your fingers crossed
I completely agree with Denton on this one. Even though i will vote for Romney, I do not believe that, in the grand scheme of things, it will work out. Now I am only 23 years old, but from the little I have seen of politics, and the biassed histories I have been taught through the public school system, it seems more unlikely that there isn't someone behind the scenes pulling strings.
Spot on guys, Ron Paul is who we needed, but the sheeple don't know that yet, so we are stuck with a socialist or a communist. I'm with Masq on this one, I'll hold my nose and vote for Romney. If we don't chose between dumb and dumber, someone else will.
Enjoy yourselves. I'm done voting for the lesser of two evils. either way is evil, and the notion of being "lesser" is only an appearance, so that we will not wake up and realize that the constitutional republic was destroyed and replaced with a democracy, a system that always degrades into a tyranny, a system used to manipulate the people into placing the chains on their own legs so that the puppeteers can always say to us, "Hey! You wanted this; you always took place in our creation by voting. Every single time you voted, you validated our process!"
I will never, ever again vote for those who are evil. I'll vote only for those who are clearly IAW the constitution, clearly against the Federal Reserve and clearly against the United Nations. Any other vote is for the same one, the puppeteer.