Financial Resource

converted these ill-gotten gains to hard assets that will always have value in any economic system. This is how they assure themselves the right to continue controlling things. They do know the Federal Reserve System has been milked dry and will fall apart. They do want to keep it running as long as they can. The Internet was their undoing. This is something they did not understand until it was too late. Now they are trying to pass laws to be able to shut the Internet off when they want to. There is encryption available on the Internet for voice, chat and email that they cannot break. This bothers them greatly.

What Happens If the States Quit the USA – This is brewing. The term is secession. The states are realizing that the federal government is going to take over if left unchecked. This is a threat to those in state government because they become irrelevant to the federal government. The states will be left to run the highways, sewers, bridges etc with no power, say or authority. They do not like this. They are all of a sudden sending warning signals to the federal government in the form of state bills affirming states rights and saying if the federal government over steps the powers granted to it in the constitution they will consider the federal government irrelevant, illegal and ignore them seceding from the union and forming a nation unto itself. This of course would mean voiding the Federal Reserve debt for their inhabitants.

The federal government is completely over stepping its rights and violating the rights of the states now and has been for years. The fear the states have is the federal government going to martial law and just basically telling the state governments they have become irrelevant, go home while they run everything. Obama is the right guy to have in the white house for this sort of movement. He is scared, confused, overwhelmed and bewildered; basically afraid to do anything except print money and play the I hope game. I hope I can keep it together long enough to get of this mess. Never happen, just a question of when it falls apart.

The problem is the other countries are not going to keep using the USD as a reserve currency forever. When they switch to something asset based then the US will have to buy those currency units with their low grade USD which is not asset based and the debt is ten times the USA assets. The USD will not buy many of these asset based units. This will result in hyperinflation. The USA will probably go to a more extreme police state since the standard of living will plummet to that of a third world nation fast. Think people not be able to afford hot water, air conditioning, cable TV, internet, cars, anything resembling adequate health care, beef, sea food, and even guns. Foreigners will move in to buy the cheap housing in the luxury areas that is still there. The women in the USA will be working as maids, men as gardeners, drivers, handymen, etc. Factories will popup and wages will be low, very low. People will learn to live on 0 a week. 0 a week will become low middle class and 00 a month will be way up there. I am saying the today equivalent of the money value.

Remember housing prices are still in free fall so rents will be low. Some that have their home free and clear will keep it if they can pay the property taxes. When the cars fall apart they will not be able to afford new ones. When the currency goes to hyperinflation what is left of savings will be evaporated. Equity in houses will be greatly diminished if not completely gone. Stock market values will drop greatly. The USA labor force will be available for extremely cheap wages. USA laborers are a lot more educated and skilled that the workers found in most third world countries. That is the probable future for the USA if it does not break up into several nations. The people working for the government and on government support will not want the breakup because the handout is over for them if this happens. In this way Obama is smart in creating public sector jobs but this is only a tactic to delay the inevitable. If foreign countries will continue to treat the USD as a real currency and use it for their reserve currency in spite of how many times Obama increases the money supply, then the game works. And the chances of this are slim and none. You can only fool some of the people some of the time.

The Immigration Problem – The USA opened up the country to immigration during the 1960’s. They picked up 100,000,000 people legally and perhaps another 20,000,000 who are there illegally. These people came to the USA for a variety of reasons. Many of them came to exploit the USA. They paid as little in taxes as they could preferring to work off the books. They did a poor job of fitting in to mainstream America instead living in enclaves with each other from their respective countries. They did not grow up in America. Their children became dual nationals and spoke two or more languages and were multi-cultural. Their children were not really American; they were learning to exploit the system. Their children never went into the military and fought for the country. They were there to take and not give. Some of these people had it better in the USA but they viewed the USA as a sucker country to be exploited. The USA offered them free education, medical, welfare, disability, retirement and freedoms.

America used to be free a few decades ago. When people came to the USA in the late 1800’s and early 1900’s they came to work hard and have a better life. There were no handouts, no social programs. They were there to sweat and toil to have a free and better life. This was not the case with the immigrants coming in the last few decades. Sure some did believe in hard work and elevating themselves up the right way but the majority were there to exploit the system. These people eventually got the right to vote. What do they want from their politicians – a handout? Benefits, public sector jobs, the ability to use their mother tongue in the USA system etc. Eventually this too took its toll.

These new voters had little idea of what being an American was. This was not their land, their culture, their language, their race and often their religions were very foreign to the USA. They did not fit in and integrate. This further fed the desire to exploit the system. They asked what they could get out of the system as easily as possibly and had no interest in growing the country. They favored higher taxes for more handouts. They had little regard for the business community having not even a superficial appreciation for how a free economy functions. If there were no politicians offering these handouts for votes none of these people would ever be in the USA. There is no end in sight to this policy. They are talking about legitimatize the illegal aliens and getting them to be tax-paying voters. More handouts for votes. Problem is this has already gotten so far out of hand there is not more core businesses left to support these handouts. So what do they do? They keep printing money and make public sector jobs and these jobs pay taxes and this money goes to handouts. Does not work. They hit the brick wall. You can get into a recession by over spending but cannot spend your way out of one. End game has arrived.

What Should You Do – The first answer is to diversify your assets and do that outside of any police state. Hold several different currencies, gold, and real estate outside the USA. This only works if you do not get locked inside the USA. Judging by the way things are moving this will probably happen sooner than later. Leave now while you can. You can always come back later if it gets better.

State Secession – Pay attention to states secession. Many of you will want to run to any of the states that drop out of the union. Freedoms beyond your wildest dreams, constitutional governments, fair and honest courts, one language government, law and order, honest government, real money supply, minimal government, very low taxes, no red tape in government, no government handout programs, no handouts to foreign governments that are awful dictators, schools teaching the truth so this never happens again, etc. Such a government will cause businesses to thrive and prosper beyond your wildest dreams and fast too.

These states are going to restrict immigration. Montana will have no obligation to accept people from Texas or New York if they become their own nation. Smart people will be going now to the states getting ready to secede and get driver licenses, residencies now. Set up a few in the states most likely to drop out. Keep your money offshore and then when the states that have dropped out set up their money supply and banks then you can repatriate the money.

The USA as it was forty years ago will never ever return. The best hope is the states seceding from the union. There you can have a chance for a real free and prosperous life with some hard work. The people will remember the mess the USA became and take great pains to stop it from happening again. The people working in the public sector with jobs paying ,000 a year in some cases that are just paper pushers will never want to leave what they have. For them it works. Well it won’t for long but they will never want to believe it will ever come to an end and they do not know enough to understand what is going on. These are bureaucrats that contribute nothing to anything. Those benefiting from the government handouts will not want anything to change.

The bottom line is the states leaving the union will not have these drains on their economy. What happens to these people is a good question. I expect the majority of them over time will realize it is time to get to work in a productive way or starve. I think some one who sat

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