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Letter Re: Hyperinflation Appears Certain for the US Dollar

During many years of “hiding, prepping and watching” I’ve tried to determine what series of events may lead to TEOTWAWKI [1]. There are many, but not obvious to most.

Hurricane Katrina and Haiti are examples of either predictable events or unpredictable instantaneous events as would be a single nuclear event such as a “suitcase bomb” . Each of these has a number of things in common, but the most significant is the limited geography associated with each. The biggest difference between Hurricane Katrina and the Haitian earthquake is the lack of adjacent unaffected land. In the case of Hurricane Katrina there was a place to bug out to, on foot or by vehicle, without walking into hostility, and the time to do it. In Haiti, there is no warning and no place to go unless you are a long distance swimmer, but it will be remedied and controlled. There will simply be more deaths and casualties along the way. There will be survivors and they will by and large return to the way things were before the quakes.

By and large, events such as these are attended to with aid being provided from outside the immediate area. How well the aid is administered and how soon it arrives is a subject for another time. Needless to say, it always arrives later rather than sooner; get used to it. Survival during these types of events is always in the relatively “short term”, unless you are in the middle of it; I’m sure it then seems very long term. If not crushed by falling debris, me and mine will get through these types of events. We are prepared to do so.

I’ve quit thinking about those types of events, as I’m either prepared for them or I’m not, but they are not TEOTWAWKI events. I’ve focused on the type of events that creep up on you, but that cause long term and lasting changes to society as a whole. These are on a much larger scale with little or no aid or organization from anyone. The “aid providers” will be worried about providing for themselves, as will everyone else. This concerns me much more than a short term catastrophe. What events could cause this and what kinds of subtle warnings should one be looking for?

Our society is so intertwined that any number of small subtle events can build up to and then spark these events. As with Hurricane Katrina, those signs are out there. You are being warned, and just have to identify what they are and be on the outlook for them. I would compare Haiti to a localized small nuke; no warning, nothing to see coming, it just happens.

People will kill for a number of reasons. Lack of Food, Water and Shelter, and all that it takes to get them, will be the most common reason . Other immediate threats or perceived threats to their loved ones is on the same level or next on the list. All other reasons are subsets of those. We are now seeing, if we are aware and watching, the beginnings of many of those reasons.

It could be a stock market crash, droughts, government failure to renew its short term debt, political upheaval, increased taxes or something as obvious as hyperinflation caused by continued Fed intervention into the economy. It is likely that all of these things and many others, in their own small way, will collectively be the straw that breaks the camel’s back. There is no way to tell which one or ones and when it is likely to happen. History tells us that it will happen. I’ve decided to carefully monitor world events through all media sources and try to weed out the wheat from the chaff.

Some Observations:

I could ramble on forever about all of these things, but consider that hyperinflation is absolutely in our future. It’s caused by the Federal Reserve Bank and our government. The only way to decrease the value of what we owe is to print more money, or go to war. Printing more money simply dilutes the value of the dollar in this country. We buy oil with those dollars, and the less they are worth, the more dollars it takes to buy it. All things in our world are directly related to oil. The more it costs, the more everything else costs. Most of our goods are imported from foreign countries. The less the dollar is worth, the more dollars it costs to buy them. As the dollar decreases in value and it takes more dollars to buy the same old necessities, your paycheck never increases proportionately, and if the company you work for fails to make a profit, you’ll be unemployed. That $2 gallon of milk may soon cost $5 or even $10 dollars. As in Zimbabwe, $1,000 or more dollars. Sometimes it can’t be had at any price. Our money today has decreased dramatically in value and purchasing power since the Federal Reserve began in 1913. If you are my age, you’ll remember 15 cent per gallon gasoline. At that time minimum wage was $1.25 per hour. I could buy 8.3 gallons of gas for every hour worked. Today, using the same comparison, I could almost buy only 3 gallons for one hour worked at today’s minimum wage. This applies to all commodities. It’s only going to get worse, much worse.

Schumer [2] rolls down hill. The prevailing attitude is: “When I can’t buy it but have to have it, I’ll steal it. If my kids are starving, I’ll kill for it.” Get the picture? It doesn’t take a single event to cause this, although a single event could get us to the same place.

Suppose that nationwide draughts caused decreased crop harvests. It’s already been happening for years. Food reserves are the lowest they have ever been. Supply and demand dictates price. Less supply equals higher prices. Watch the crop forecasts. The price of oil also dramatically affects the price of fertilizer, cost of food preparation and transportation. Just stop in a convenience store and buy a candy bar. How much does it cost now, compared to a year ago; compared to two years ago? On a very small scale that candy bar represents everything else in your life. Inflation, like many other things (such as loss of freedoms) sneaks up on you.

The government is giving away more money than we provide to it. It’s generating unbelievable debt. Taxes have to be increased. This will decrease how much money you have to buy the more expensive goods and services. Watch the M2 and M3 money funds. They are the gauge of how much money the government is borrowing. Watch the roll-over or default of the short term debt at the end of this year. Where will the money come from to pay the $2 trillion in short term debt? Why would China or anyone else loan us this money when even they can se that they will not get repaid in anything other than devalued dollars.

You will never see the truth about any of these topics reported in the mainstream media, and there is a dearth of connecting the dots, even on the Internet. As you read about these things, ask yourself, “what does it really mean” and how does it link the the other current happenings. I can’t list all of the inter-related subjects that have an effect on this, but can only advise you to pay attention. If you don’t, it will sneak up on you and you won’t be ready. – Tom H.