The collapse of the American dollar came suddenly. It was worse than when the mortgage bubble burst back in 2008. Once again, many banks failed and within a few days the whole economy crashed. Millions of people lost jobs, homes and whole businesses just disappeared. Looking back at the warning signs in the economy, nobody seriously thought the problem would be with the money system itself.
Most people thought that the government just printed more money when it was necessary, but this was not the case. The system that brought on the crash was unbelievable. It operated like this. When you buy a Treasury bond, you "create" money. When you cash-in the bond, you cancel out the money but the interest debt remains. Theoretically, if all bonds were cashed-in, all our money would disappear, but the interest debt on the bonds would remain to be paid—and no money would exist to pay it.
All of our money was debt money, and the debt kept going up while the value of our money kept going down. It reached the point where the interest debt alone was increasing faster than they could create enough debt-money to cover the debt. It made your head hurt to try to understand it, and then one day, everything just stopped.
When the price of a gallon of gas and a loaf of bread hit $15.00 there was rioting in the streets. The government called out the military, and it was like Bosnia in the '90's. Things got ugly. Looting and marauding began. Vigilante groups formed to deal justice to politicians and financial services people like bankers and stock brokers. If you didn't have enough family or neighbors working together to defend your property, things would not go well for you. Everybody bartered because the money wasn't worth anything. Supplies ran short, and there were no government services able to help.
When the new world order took over, the hunger games began.
Many of you know I am a Neighborhood Watch coordinator and I keep getting info on how un-prepared people are for extended emergencies. My inspiration for this troubling scenario came from two sources. One was a description of what happens when a society breaks down, such as in the aftermath of hurricane Katrina (http://www.wikihow.com/Survive-a-Breakdown-of-the-Social-Order). The other source was a short video on how money gets created (http://www.peakprosperity.com/crashcourse/chapter-8-fed-money-creation).
The Federal Reserve system began 100 years ago in 1913; our population has grown over 300% since then. We are trying to survive 100 years of expanded population and business with a default-prone, 100-year old, debt-based money system. Note that Presidents Lincoln and Kennedy were moving towards “debt-free” money before they were assassinated. President Lincoln had created and circulated debt-free money called "greenbacks," but these were eventually phased out.
President Obama calls the sequestration threat a manufactured crisis. Congress manufactured the threats of sequestration and also the debt-based money system. They can eliminate both threats, right?