Take the time to study this closely.

read the rest here...

http://www.shadowstats.com/article/hyperinflation-special-report-2011

Very good information. I found that the collapse is moving at such a rate, however, that almost all of their information on gold and inflation I had to adjust in my head to make it completely current. Gold broke 1500$, and silver got up into 40$ since then.

And this was only written a month ago.

I'm picturing the U.S. right now as a domino effect.

Its all collapsing in line.

“Weimarica”

By John Galt
July 24, 2007


In the early 1920’s, the Weimar Republic of Germany created an economic miracle in the eyes of some as it recovered from World War I. The stock markets surged, the economy started to recover late in 1919, and the imposition of the Versailles Treaty was seen as an “inconvenience” to the average citizen compared to the revolutionaries who espoused communism and other radical political ideals roaming the streets at the time.

The average person saw their monies hold some valuation and the consumer goods started to re-appear in the markets to their relief. Sadly for those bleating souls, the reality soon hit home. The penalty imposed on the German people, besides the military and other humiliating penalties was that of a $636 billion reparation bill (in 2005 dollars) in German gold. To give one some pause, that’s about six hundred billion more in gold than we currently are rumored to have in the possession of our government.

The difference between now and then was that they could only print marks against the gold they held in reserve. To solve that problem, they simply changed the ratios to accommodate their political needs. Of course, as history has born out, it did not end all that well. Now, in our current day, the Federal Reserve and our wonderful government print dollars to do, “gasp”, just what the Weimar Republic did; pay off their debts with inflated currency. This of course did not work for Germany as they had to physically ship the gold but thankfully for the Fed, we do not have to do that.


What is amusing is what we have backing our currency; the full faith and credit of a government which lies to it’s own people, much less the rest of the world. The result will be and is, the birth of the United States of Weimarica. The dollar is considered an investment tool by the powers in charge and that scary concept should not escape the average person, but thanks to numerous VISA commercials and the dilution of our education system, it is nothing but a magnetic stripe to purchase a Super Duper Vende Triple Double Caramel Strawberry Mocha Latte at Starbucks (bleh, give me Maxwell House please).

So why is this important? The average American citizen has abandoned his or her responsibility to invest wisely, save carefully and shop for the best price. The mentality of “the government will save me” has taken over, but let’s does some more numbers. Based on the current national debt, we will all have to pay a 90% income tax rate for 70 years to pay off and meet all obligations according to some “experts.” And that is assuming 5% GDP for those 70 years.

Those numbers I’m throwing up are conservative, and I mean safe, compared to what David M. Walker, the U.S. Comptroller of the Currency has been stating. If we averaged just 1.5% GDP growth, it could take 200 years at a 90% tax rate (Give or take a trillion here or there). The disaster of our debt has yet to hit home. Let’s relate this back to Mr. and Mrs. Main Street America so all of us can take the fetal position together.


During the past two weeks, I’ve heard the typical local talk shows where people whined about four dollar a gallon milk. I snickered of course. It was not a laugh at them, but a laugh, a chuckle, a roaring gut ripping snort at history. FOUR DOLLARS? Try TWENTY FOUR DOLLARS and that might just be a valid price for one day! The communist government of Zimbabwe might be pointing to what we have to look forward too, but God help old baldy, Kudlow and his partner in crime, Kwazy Kramer, if they ever get it right on Bubblevision. The disaster is that the statement “it can’t happen here” is used much like it was on 9-10-01, the day before Katrina hit, and of course, October 16, 1987.


Bunk.


It can happen here and is happening as I type this. The Federal Reserve has finally been backed into the worst nightmare of all time. As of the date of this story, the dollar has broken support. No, not just technical support. No, not just a round number. No, it has broken through a historical support level.


This is the kind of stuff history books are going to point to and say “and this is the date the fertilizer hit the fan” (cleaned up for the children, they’ll figure it out before us old folks). This disaster of trying to monetize the debt in order to get out of debt is having a multiplier effect on the commercial paper and will soon obliterate the pension funds of millions of Americans. Come to think of it, it will soon wipe out the retirement of millions of Weimaricans. The promise that the government will save you is so sad, so pathetic, and so easy to dispel. After all, just how many illegals are here and how secure are our borders? Next question please….

With this, I say “Welcome to Weimarica”, the land of baseball, NFL football, apple pie and cheap gas at $19.995 per gallon in the near future. When coupons in your local Sunday paper are eight inches wide to accommodate all the zeroes, don’t email me and cry that you were not warned. This is the real deal folks and those who think the solution will be in higher interest rates obviously do not understand the despair we felt as a nation in 1933. The despair we felt then will be nothing compared to the hyperinflationary period we are about to enter. If your annual performance review is up soon, I would advise negotiating weekly pay increases or praying for government assistance (just too funny!).


If you can not get a weekly pay increase, well, just reflect on the condition of those poor Germans after World War I. And remember what happened in every vivid detail. No, not the Holocaust, although that is related to the big picture in more ways than you could ever imagine.

Remember that we are no better prepared, no more advanced, no more superior than a fifty one year old woman pushing a wheelbarrow full of Weimar currency into a drug store to buy a bottle of aspirin. To live the experience properly, do yourself a favor; take your credit or debit card, drop ten pounds of weights into a wheelbarrow, and push it down to your local drug store. It’s an experience you will never forget. And one that the end of the good times will exemplify. Welcome to Weimarica. A future where everything will be numerically cost more but in reality worth less. And your life and mine, worth considerably less to the banksters and creators of this disaster.

Great article from a reliable source who also publishes information like actual unemployment and GDP numbers (not to be confused with "official" .gov pronouncements).

IMO, we have undeniably entered a global period of stagflation:

Devaluing currency combined with decreased productivity (scarcity of goods).

Going back to 1913, it is vital to recall that the FRN (Federal Reserve Note), which is NOT to be confused with the lawful Dollar or Unit (371.25 grains of silver), was engineered to lose value.

The FRN has lost over 99% of the original dollar value over time.

Based upon the massive void of debt currently circulating as "money," I would argue that the FRN is now actually worth less than zero, but due to the secrecy with which the shadow banking empire operates, I cannot prove this.

Suffice it to say, that our current debt crisis began in November of 2007, at which time the banksters began filling large debt voids with FRNs in order to hide their misdeeds up to that point.

Look no further than the current mortgage foreclosure scandal in order to better understand the manner in which "crap" in the form of bad loans, was magically converted to money.

All you really need to understand about the FRN system is that it is based upon the flow of debt, and will only exist so long as someone continues to borrow.

Talk about faith!

Now that those debt-voids, akin to pot-holes, have been filled with newly created debt, we are experiencing the spillover effect, whereby FRNs are hitting the streets where we live.

Perhaps you have heard the saying:

"You can't borrow your way out of debt."

Yet that is EXACTLY what is happening in real-time, from fed.gov all the way down to the folks who are using credit cards to fill the gas tank of the SUV.

It is insane to believe that anything good will come as a result of all this debt madness.

For those of you who prepped all the way up to now, you are likely going to be OK.

For anyone who decides to begin prepping today, you will suffer some pain.

Anyone who waits another month, will be completely scrod, and I am not exaggerating.

On a very related note, in terms of historically documenting empirical, monetary tyrannies past:

The desperate beast will ALWAYS lash out, and therefore, we should be prepared for false flag events, or even epic disasters conjured specifically to hide the evidence and distract the masses.

Suffice it to say, Dancing with Quadaffi and The Royal Wedding will not be sufficient to gloss over the pig we know as the Federal Reserve System.

Babylon is Fallen!

Are you eternally prepped?

gentlemen
It is even worse than that.
we look at drains like Welfare, unemployment Insurance (Not covered by any insurance Company rather in many states is covered by the State by charging rates to an employer),Medicare, Medicaid, Food stamps. These just touch the tip of the blade.
We forget "Unearned income credit refunds', Disaster assistance, Flood Insurance, Federal and State retirement.
When a tornado strikes an area and the State Governor asks the Federal Government will pay 25% of the damages in grants and low interest loans.
The day is coming soon when all of these drains will be cut back.
They will be cut back because the Elected Felons will see that these unlike the biggies are easier to trim and still stay in office.
We had all better start looking for that second career. There are already street protests scheduled by the Black Panthers, the SEIU, and the Mexican groups. They too see that as soon as the drop in the bucket of Retirement, Medicare, isaster loans and grants to States and people that their slice of the Pie is next.
The only hold up is that pesky 2nd Amendment that keeps them at a disadvantage. When Lil Barry declares Martial Law and gun collection there will be no one to oppose their demands.
Soon after that the banks will close and the eaters will be shopping in your neighborhood.

Then I will be totally, utterly, completely scrod.

I have no preps, I used to, but I lost all of them do to a situation beyond my control.

I also only have one 1911 and one 10/22 Ruger and no Ammo, since I had to sell my FAL and my AR15 to pay for my Mothers Funeral last year.

Like it is said, when it rains it pours and if it wasn't for bad luck I would have no luck at all.

I hope to be able to get another AR15 this Summer but if the SHTF before I am able to get it, well at least I know where I am going when I die.

At this point the best and only thing I can do is pray.

Before it is all said and done...EVERYONE is going to be screwed. The Titanic is standing straight up and all we can do is hang on and ride her down.

Good read ConSigCor.... It should open peoples eyes......we have know this was going to happen one day.