by Dave Eriqat

June 23, 2009

from ErstwhileUrbanWanderer Website


For a long time I’ve recognized that the death of the U.S. dollar is inevitable. It is so thoroughly debauched that it should be worthless right now, but it’s also such a vital instrument that nobody can afford to let it die, at least not yet.


Moreover, as I’ve learned over the years, while it’s easy to predict what is going to happen – that’s usually just a matter of logical deduction – it’s nearly impossible to predict when it’s going to happen. I have to admit that I’ve been awed by the acumen of the powers-that-be to keep levitated the corrupt system we have today.


I guess when you own the world’s reserve currency, the world’s most powerful military and have a media empire in your back pocket you can do pretty amazing things, for a while anyway.

Nevertheless, the other day I ran across an article titled, Bank Holiday Coming? Prepare?, that contained a quotation that left me sort of shaken.


The quotation, attributed to Bob Chapman over at The International Forecaster, read,

Some US embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of US cash to purchase currencies from those govts, quietly. But not £’s (british pounds).


Inside the State Dept there is a sense of sadness & foreboding that ‘something’ is about to happen, unknown re a date—just that within 180 days, but could be 120-150 days.


JMP 5 June 2009 Bob Chapman

Note: last 15 mins or so is just static noise, no audio




As I said, for a long time I’ve accepted as inevitable the death of the U.S. dollar, and I have also anticipated an eventual nationwide “bank holiday,” so stories along those lines don’t work me up into a lather anymore.


The above quotation, however, is something completely new.


The only reason U.S. embassies would be instructed to purchase massive amounts of other countries’ currencies is if someone was anticipating that the U.S.’s own currency was going to become worthless, and as indicated in the above quotation, soon. I contacted Mr. Chapman, for whom I have great respect and trust, and he confirmed that the quotation cited above is his own and that he stands behind it, even a month after writing it.

I read hundreds of articles a week, particularly about international financial matters, and I’ve been developing a growing gut feeling (not just a growing gut) that Fall, 2009 is shaping up to be a momentous period. Fall, 2007 was a turning point, when the housing bubble audibly popped. Fall, 2008 was when the banking crises became manifest and the U.S. stock markets peaked.


It’s increasingly looking as though Fall, 2009 may yield the biggest blow up of all, the acknowledged bankruptcy of the U.S. Government itself and the destruction of its currency.

Among the myriad tiny clues pointing to Fall, 2009, a few specific, intriguing ones are noteworthy.


The first is from a guy named Benjamin Fulford, who, while not exactly inspiring trust and confidence, claims to be in contact with some of the elites running the world, and much of what he says sounds credible.


In one of his recent posts he wrote,

The US financial system may not collapse until September 30th of this year, according to our latest intelligence. A new, precious-metals backed system is in place but a split at the highest levels of the US secret government in preventing its implementation.

Note the date he cites: September 30.


Bob Chapman’s quote – I don’t believe Bob and Benjamin travel in the same circles, making their statements independent – was from his May 20 newsletter.


One-hundred-twenty days from Bob’s May 20 newsletter is roughly September 20.


At the outside, one-hundred-eighty days from May 20 is roughly November 20. In addition, I have long speculated that a gold-backed currency might be introduced to replace the U.S. dollar, so Benjamin’s inclusion of that tidbit concurs with my own speculation, giving it more credibility in my opinion.


Then there is a group named LEAP/E2020, independent from both Bob Chapman and Benjamin Fulford, which cites September/October, 2009 as the date of inception of “major upheaval”:

On the contrary, because the origins of the crisis remain unaddressed, we estimate that the summer 2009 will be marked by the converging of three very destructive « rogue waves » (2), illustrating the aggravation of the crisis and entailing major upheaval by September/October 2009.

Specifically, they anticipate debt defaults by the U.S. and U.K. governments and a “Wave of terminal crisis for the US Dollar, US T-Bond and GBP.” (Recall from Bob’s quote above that the U.S. embassies are not to buy British pounds.)


Since the U.S. Government must borrow one half of its annual budget today, amounting to $1.8 trillion of borrowing in a single year, what will happen if it is unable to raise that sum? The U.S. Government currently spends approximately half a trillion dollars annually on debt service. If it cannot borrow the money to service that debt, then a default will occur. If it resorts to printing money to service the debt, then that’s simply a disguised form of default which would hasten the U.S. dollar’s demise.


The formerly inconceivable notion of a U.S. Government debt default is no longer inconceivable. Then there is this article, titled The Hammer Drops (below insert), by Douglas McIntosh, who also cites Fall, 2009 as an ominous date.


Referring to a coming wave of state and local government fiscal crises beginning after July 1, 2009, he writes,

The Feds will follow them starting on October 1st, the beginning of the new Federal fiscal year 2010.


The Hammer Drops
by Douglas McIntosh

 June 17, 2009

from SteveQualey Website

If I had to describe myself in this moment of economic chaos, I would say I am the grizzled sergeant, war weary, caught in the zone of instinctive awareness that combat veterans have.


In order to survive you become a detached, cynical professional. In the sense of college degrees I am a rank amateur. However, over the last decade I have called the economic sphere pretty well. Perhaps the timing has been off, but I have nailed the trends perfectly. It takes a while for a two inch garden hose to fill a swimming pool, but it will fill it.


Likewise, the endless debt, credit and bubbles of the last 25 years are finally reaching critical mass. It is no longer a matter of whether we have an economic collapse. No it is a matter of the scope, the intensity and the social chaos that economic collapse causes. My moniker over at Tree of Liberty is Doomer Doug, so I know what I am talking about. In a phrase, it is not coming: it is here.

Way back when Hurricane Andrew hit Florida, nobody took it seriously until Television stations starting showing the satellite pictures of a storm that stretched from North Carolina to the Bahamas. Only then did the so called Sheeple start to prepare. That is just the way things are in modern America. Since Shillovision is telling us fantasies about green shoots, economic recovery etc. etc. etc. the Sheeple, as evidenced by the rising consumer confidence numbers, are buying into the delusional euphoria stage. We are seeing green shoots all right, but they are the first plant tendrils from "Little Shop of Horrors."

Here is what I see coming in the economic sphere over the next few weeks and months. The first thing to understand that this debt soaked edifice, this leaning tower of endless debt is finished. One of the things I have hammered home repeatedly in my writings is the capacity to issue debt, by government at all levels; the capacity to borrow debt, by consumers, corporations et al, is kaput.


We are on a cash and carry basis now. Have been for at least a year now. For an economy that is based upon endless credit and debt, regardless of the capacity to service that debt, or pay it back in plainer terms, this is fatal. It is not a shotgun blast to head, a quick, bloody death; instead, it is a shotgun blast to the stomach, a slow, painful bleeding out.


The difference between slashing your Carotid artery in your neck and slashing your wrists. The result is the same, although the time frame is not. Bluntly put, we are now at that point in time when the fundamental economic reality, the fundamental government, corporate and consumer model no longer works.

Recent headlines tell us that credit card problems are on the rise. Recent headlines tell us that one in nine Americans are now on food stamps. Recent headlines tell us that record numbers are on unemployment insurance. Recent headlines tell us that government, at all levels, are being bled dry by declining tax revenues. Revenues that many states, counties and cities are trying to replace with a massive wave of tax increases.


Up here in Oregon the legislature just passed a $1 Billion dollar tax increase, including a massive tax increase on hospitals to pay for low income health care. Well, all I can say is beating a dying horse only makes it die quicker. The taxpayer turnip is bled dry. There is no more money to be extorted from the long suffering American taxpayer. All that lies in the future on that front is a rapid governmental spending collapse.

California, it is said, leads the nation. In that case, the economic collapse I have long predicted is imminent. The Austrian weight trainer Arnold, married into the Kennedy/Shriver clan so he could presumably run for President someday, has now opened the lid on the economic version of Pandora's Box.


I'm afraid once it is opened it will not be closed. Arnold may be playing a game of chicken with our other foreigner, Obama the Great, in order to get Federal bailout money to spray perfume on the rotting corpse called the California economy. Or Arnold may have decided to get tough with the liberal extremists masquerading as Democrats in California's legislature.


At this point it really doesn't matter who intends what, or why they intend it, or even how they intend it. The simple economic reality is the money isn't there. While this seems clear to average people, this simple fact seems to bounce off politicians like tennis balls off an aircraft carrier.

What is going to happen, rapidly, very rapidly after July 1st, the beginning of fiscal year 2010, is the government is going to implode at state, city and county level. Not reduce. Not cut back. Not make "tough decisions." Not "tighten the belt." No, what is going to happen is the social net is going to look like a piece of paper after it has gone through a shredder.


And when that happens, as it must, the level of social chaos will skyrocket. Does anyone think people will tolerate spending $106 Billion to keep the wars in Iraq and Afghanistan going when California ends welfare? Is anyone that naive? Is anyone that detached from the daily struggle of the urban mob to pay rent, utilities, buy food and the like. Because if they are, then they are going to be seriously surprised when East Los Angeles starts to resemble Beirut or Baghdad.

It is clear to me as the local government implodes the pressure on the Federal government to do something will be overwhelming. Absolutely overwhelming. Which will mean the Federales will seize even more control than they have already. The current headlines about wanting to give the Federal Reserve, that corrupt, venal banking oligarchy, even more powers come to mind.


Give more powers to the very banks that have looted and pillaged with impunity the American Republic. This is not giving the fox control of the hen house, it is giving a pedophile control of an orphanage. At any rate, as the Feds attempt to stall the local collapse they will only hasten their own. Much as a drowning person pulls under their rescuer. Despite the unlimited use of the printing press by Braying Bernie, the foreigners smell a rat.


The most significant economic story of the last month, in my opinion, was the fact Chinese students laughed, openly laughed, when Turbo Timmy told them the dollar was sound.

We are over the edge now. It matters not whether you believe me or not. The California treasurer says they will run out of money in 50 days, around July 30th or so. One month into the new fiscal year of 2010 California is going to crash and burn like a gasoline tanker on the freeway. The resulting fire will melt the asphalt, burn the median grass and raise a smoke plume high into the sky.


Where California leads, other states, counties and cities will follow. After that, the desperate and increasingly befuddled Obama administration will also follow. And so, just as a group of mountain climbers, tied together for their ascent fall into a crevice, all levels of government will implode by years end. There is no other way to put it.


The states, cities and counties are going down starting July 1st. The Feds will follow them starting on October 1st, the beginning of the new Federal fiscal year 2010. The one in which Obama will need to borrow another 2 TRILLION.


Borrow it from foreigners who laughed at Turbo Timmy. Borrow it from Russians, Chinese and Arabs who know we are a debtaholic. Russians and Chinese who are even now meeting in Russia to replace the US fiat dollar as the global reserve currency.

The USA will end not with a bang, or even a whimper, it will end with a computer click, when the foreigners dump our fiat dollar, dump our worthless treasuries, but buy our hard assets; our farms, our bridges, our roads, our sea ports, our airports and our infrastructure.


After all, they have bought off our politicians and elite classes for decades now.


So why not spend their worthless, toxic paper on the real America?



Then there is the mystery of the Japanese couriers carrying $134.5 billion in “U.S. bonds,” which certainly seems consistent with an imminent demise of the U.S. dollar.


I mean, if you were an “insider” and knew that the dollar was about to expire, wouldn’t you take steps to protect yourself by quietly getting rid of your dollars?


Additionally, the article that referenced Bob Chapman’s newsletter cited above included this interesting sentence, also relating to Japan,

Bob quotes another source that “Panasonic has told their people to be back in Japan by Sept 09.”

In my reading, I have run across many diverse clues from independent sources, most of them tiny, but collectively creating an ominous pattern that appears ready to visibly emerge in the fall of 2009, between the end of September and the end of November.


To tell the truth, I honestly hope I’m wrong and that things just keep going the way they are going, for even I have no idea how to cope with a currency that suddenly becomes worthless.

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