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US Dollar Final Decent - Dangers 2008-2009 Part2

Currencies / US Dollar Jul 17, 2008 - 05:47 PM GMT

By: Christopher_Laird

Currencies

Best Financial Markets Analysis ArticlePart 2 talks about the world post the USD centric world economy. It looks out 1 to 3 years ahead. Part 1 talked about the immediate dangers to the world from a Middle East war, food and energy shortages, and inflation. It looked into late 08 and 09.This part talks about what would happen should the USD begin a final decent to far lower values.

We are now a full year into the credit implosion that started with the collapse of two Bear Stearns hedge funds in Summer of 07. So many dimensions of the world economy have changed dramatically for the worse since that pivotal event…


We can outline many aspects of a disintegrating world economy since Summer 07. But one huge dimension seems to stand out, the dim prospects for the USD going into 09. As we know, the USD has become the key currency to the world economy since WW2. There are several reasons, but one was that the USD was used to stabilize the European currencies during WW2. Following that war, the US became the center of a burgeoning world consumer economy. What happens when the USD is no longer the center to the world economy? That means the end of roughly a century of US economic and currency dominance. That is our discussion.

Since the end of WW2, what was once a boon to the world economy, the USD, is now in a catch 22.  The vast interlinked world economy based on a consumer bubble that we are all used to, that generated unprecedented wealth, is going through a radical transformation as the USD falters. The demise of a consumer bubble based on credit since WW2 is faltering, and the USD is suffering from abuses in the credit system and in the US fiscal situation. The pillar of world commerce since WW2 is faltering. All those James Bond movies you saw celebrated the post WW2 world that grew out of the world USD prosperity bubble (the lifestyle u saw in those movies).

In part one of Dangers, Danger period 2008 and 2009, we discussed some ominous dangers that emerged in 2007 and 2008, and will continue to get worse in 2009. These included the US/Israel- Iran nuclear showdown, the threat of a world financial sell off initiated from a collapsing world credit system, rising world inflation, and rising food and energy prices.

This second part of this ‘Danger' piece discusses the other main danger, that the USD is faltering, and into 09 has a risk of a major breakdown, if not outright collapse. We have all heard this before, but the difference with now vs the past years is that the US is faced with unprecedented financial disasters that could be putting the final straws on the USD camel's back.
The implications of a serious USD breakdown to the world economy and financial system are staggering, particularly if you consider that this entire world financial system we are immersed in, from East to West, grew from/with the USD economy in a 50 year world consumer and finance bubble that has built since WW2.

Deconstructing that 50 year economic bubble/system will cause massive economic disruption in the world. The problems the central banks and the world economies are facing, as we speak, to deal with the problems the USD is having now are all related to the shaking of what I call the ‘world USD economic system'. The onset of the world credit crisis in Summer of 07 was the beginning of this latest phase.

Shadow banking system down

The new credit securities markets referred to as the shadow banking system have imploded.  This was the practice of creating credit of all types and then selling it as securities to big investors. This new USD centered way of financing worldwide housing and other credit grew to be 50% of all new credit from 2000 roughly. The collapse of these diverse credit securities led to a severe tightening of credit worldwide, as lenders had to pull back drastically to raise capital they lost in the last year. This credit collapse is affecting all the Western nations, from the US all the way to the emerging Eastern EU economies, and will also affect all the major Asian economies by 09 as well.

At the same time, inflation has exploded in only one year, not only in the Western economies but in Asia, and the commodity economies such as the Mid East to Australia. Inflation is 10% and higher in most of the big world economic zones. That level is not tolerable without a severe reduction in living standards for everyone.

USD at risk this time

The last time the entire world economy had this kind of economic paralysis was in the 1930s during the Great Depression. At that time, the USD was not on the verge of a collapse. This time the USD is on the verge of a collapse, or at least a major devaluation. That means that the US has far less latitude to do fiscal stimulus and bailouts to combat the present economic emergency spreading over the world. The US can only go so far this time with economic stimulus.
Rising inflation is putting pressure on the US trade partner economies which forces them to raise interest rates, and that causes competition to the USD, while the US has to keep rates low to fend off a total financial and economic meltdown. This is boxing in not only the US economy, but our trade partner's economies and central banks as well. It is very clear that the gigantic financial losses in the US since Summer 07 have spread all over the world as they have become sort of tied at the hip with the US economy, the USD being the world's main trade currency for the last 50 years.

There are a lot of aspects to presently emerging world stagflation. But, compared to previous Western recessions, there is now a combined Western Bank crisis and, this time, the prospect of a very shaky USD.

In the last great world depression in the 1930s, the big difference from today was that the USD was strong, and even gold backed…and destined to become the world trade currency of the 20th century (20th century was the 1900s). The 21st century is the century of – what, the first global government?

That is not the case today. The USD is not strong. That is going to be a real problem for the world going into 2009. Thus, we have a second major difficulty the world has to overcome, what to do about the USD, to avoid a total financial disaster into 09. The world's economic weakness right now is only a foretaste of what is to come from a weak USD. A weak and possible collapsing USD means a weak/collapsing world economy.

What this USD situation means today is that the US, with all of Bernanke's willingness to use inflationary methods to combat debt deflation, is constrained by the problems that heavy inflationary methods will create for the USD going into 2009. Because the US economy is so central to the rest of the world, what limits the US limits the rest of the central banks and their economies. If the USD were not the world reserve currency, most of these problems would be confined to the US economy.

The USD is probably at a limit of stress at this moment, with interest rates at 2% and the ever present need for our trade partners to send about $700 billion a year to us to buy US bonds of all sorts. Bernanke will cut the ground from the USD if he tries any further rate cuts. Our trade partners who are basically subsidizing the USD for their own reasons will balk. Not only that, but inflation in the US in some areas in already more than 10%, such as in food and energy. Any further rate cuts to combat the present financial disaster in the US will only allow an inflation explosion.(Yes, the USD is indeed the world reserve currency, but now that seems funny. It wasn't funny during and in the 50 years after WW2.)

If the US persists in trying to ‘bail out' ‘everything' the USD will collapse. Our treasury officials and the Fed are well aware of this fact. The USD is at an extremity, right now. We are at the limits of unlimited USD expansion since WW2. The US is at a crossroads with the USD system. If the US Treasury and Fed try to bail everything out, the 50 year world prosperity Jig since WW2 is up. I already heard talk by Bernanke that the Fannie Freddie mess might be nationalized.
The bailouts are not just the US. Now, every major economy is talking about massive bailouts. Their currencies will all suffer, and this post WW2 world prosperity boom is just about done for. They are going to bail out their banks, stock markets, bond markets, and economies by debasing all their currencies because they don't have the political guts to endure a serious world recession. China too….the final result will be horrific.

What would be the outcomes if the USD world financial / economic system fell apart?

Supposing the USD devalued by over 50 to 70% in a year's time, after endless attempts to save a collapsing world consumer credit economy, we may see:

  • First of all, the savings of the US would drop drastically in value. That means everything from savings accounts to pensions would lose much purchasing power, and prices of every necessity would skyrocket.
  • Second, our major trade partner's economies would have to do massive readjustments. They are not in a good position to do that. We can take the present rapidly spreading economic weakness of the EU zone as an example. Asia will not escape either. They will desperately try to keep their currencies from strengthening too much at first as the USD falls. This is why the USD seems to have 9 lives. These attempts to debase along with the USD allow the USD to stay higher than it would.
  • World inflation will spiral out of control, lowering standards of living. Other major currencies such as the Euro and Yen will be heavily pressured as well. Until the world figures out how to actually delink from an imploding US economy, they will suffer along with the US's fate. So far, the delink theory has been shown to be completely wrong. Why? Because the world economy is tied at the hip to the USD (The delink theory is that other strong economies of Asia or the EU will be able to carry the world economy even if the US economy falls apart. So far, that has been completely discredited in this latest world economic slowdown).
  • Big geopolitical turmoil as regimes combat out of control food and fuel prices.
  • A war in the Middle East over oil. The Iran / Israel situation might also be called a proxy war/struggle over Mid East influence for China, the US, Russia, the EU, and Asia because energy is so expensive.
  • A very possible period of insurrection, riots, shortages, and chaos in large US cities. I also believe that the EU and China and India are at risk for this too.
  • A 10 year world economic depression, that China in particular cannot tolerate, as the world economy readjusts out of necessity into a totally new form, one that is less global and probably more warlike.
  • Debt deflation where a rapidly dropping USD effectively wipes out outstanding debts, while the population struggles merely to exist.
  • Vast bank failures in the US and major Western economies, and likely China as well.
  • Efforts of world central banks to ‘bail out' ‘everything' resulting in their currencies falling drastically in value while inflation skyrockets, until either they learn better, or have hyperinflation and their own currency collapses after the USD falls apart. In effect they will have to either ‘let go' of the USD or suffer the same fate.
  • Stock markets at 10% of where they are now in 3 or 4 years if the USD actually lets go by 50% or more in 09 (nominal stock prices might actually stay higher but the devaluation of the currencies would effectively cut the purchasing power in half anyway.)
  • Prices of most essentials effectively 4 times higher, worldwide.
  • Big increases in energy and food prices causes many other sectors of world economies to fall apart, as all ‘money' is used merely to survive.
  • Gold at $3000to $5000 plus and oil at $300 plus putting a further huge crimp on world economic growth. Obviously if the USD did a real collapse, say to 10% of its purchasing power now over several years, gold is over $10,000 and in some areas you will buy a decent house for one ounce of gold. Oil will be traded/priced in other currencies, and probably rationed in the US at a cost of $20 or more a gallon. In this case, the present world economy that depends on cheap transportation totally devolves.  Globalization becomes de-Globalization, and China either figures out how to migrate to its own domestic demand or faces a huge collapse of their export economy.
  • Severe world currency restrictions and foreign exchange controls. You won't be able to move your money out of your country. Likely restrictions of withdrawals to monthly limits from bank accounts as governments attempt to deal with currency chaos.
  • Rationing of necessities as the world economy enters paralysis and governments have no choice.
  • One bright spot for all, the return of employment to local instead of outsourcing. Production and consumption returns to local economies, as it should have been all along. That is a long 20 year process and involves a severe deep economic depression until the world economies/economy is rebuilt from scratch compared to what it is now. Debt repudiation on a massive scale as the world emerges from the ashes (hopefully not real ashes…)
  • Many new governments worldwide after revolutions during economic collapses and or wars. Democracies falter worldwide, and more authoritarian governments appear to deal with the chaos as the democracies enter paralysis.

In case you think these outcomes are exaggerated, these are the things that happened after the French Revolution, the fall of the Roman Empire, The fall of the Spanish Empire, the Fall of Byzantium, the fall of the British Empire… etc. The fall of the US economic system, the world USD system, and the US as a superpower won't be any different. Also, a lot of these outcomes happened during and after the Great Depression of the 1930's. That all happened commensurate with the decline and fall of the British Empire and Pound that dominated world economies for 200 years, and eventually led to the USD system taking prominence after WW2 and the USD was used to stabilize the European currencies during the war.

How we reached a USD tipping point

After WW2, the US emerged as the dominant world economy and manufacturing power. Because the USD ended up being used to stabilize European currencies during the war, after the war was won the US had a lot of economic clout. Eventually, after running a bunch of fiscal deficits with the Vietnam and Korean and cold wars, the USD started to have pressure to let go of its gold standard. Once the gold standard was abandoned, the recipe was created for the US to use and inflate the USD for any and everything. The US congress happily obliged. This resulted in a world consumer and economic bubble that leads us to our present times. This lead to a simulative USD world economic bubble. The result is our present indebted world economy and its imminent bankruptcy.

The rest of the world economies will try to devalue along with the USD. At some point they will be forced to let go, or they face the fate of the USD losing 50% to 90% of its value.
What will any saver in the world do?

  • First of all, your currencies, retirements, bonds and annuities will be severely devalued. Your savings will be severely downgraded in purchasing power. The world governments clearly will not act until they are forced to, as they are weakened. They are going to debase your money to try to delay the inevitable economic retrenchment in a post USD centered world.
  • Your primary objective might be to save any wealth you have. You will have to try to keep enough liquid wealth, cash, various currencies to be able to pay bills. You will have to reduce your financial expenses.
  • You will have to try to keep wealth in paid off assets, such as non bubble real estate (yes that still exists in most parts of the world) and also maybe in gold or other precious metals. You will have to plan on currency restrictions if things get bad, and limited monthly withdrawals on your accounts, regardless of how much they have in them. You are going to experience your financial accounts being restricted and or frozen in some institutions.
  • You are going to have to plan on some place you can live in if you lose your income, or that income is drastically reduced in purchasing power… preferably some modest property that is paid off.
  • People will have to deal with fuel and food shortages and high costs.
  • People are going to have to give up the idea of getting investment returns since risk is out of sight, and merely keeping what money/wealth they have is most important.
  • You must toughen yourselves, regardless of your age or position in life.

If you do these things, you may survive without terrible hardship. But you will find some kind of hardship regardless, because that is what these kinds of times cause for anyone on the planet. You are going to have to tell your loved ones to do the same too. Families will most likely have to live together to survive. You are going to have to tell loved ones ‘no' at some point if they insist on remaining in the same level that USED to be. This is all happening as we speak.
Then, hopefully, the world regains its economic footing. This all happened worldwide in the 1930's depression, and it lasted 10 long years.

By Christopher Laird
PrudentSquirrel.com

Copyright © 2008 Christopher Laird

Chris Laird has been an Oracle systems engineer, database administrator, and math teacher. He has a BS in mathematics from UCLA and is a certified Oracle database administrator. He has been an avid follower of financial news since childhood. His father is Jere Laird, former business editor of KNX news AM 1070, Los Angeles (ret). He has grown up immersed in financial news. His Grandmother was Alice Widener, publisher of USA magazine in the 60's to 80's, a newsletter that covered many of the topics you find today at the preeminent gold sites. Chris is the publisher of the Prudent Squirrel newsletter, an economic and gold commentary.

Christopher Laird Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Deacon Elurby
20 Jul 08, 17:14
P.S. Christopher Laird; Re: Global Warming and 'End Times'

P.S.

Re: Global Warming

[MY RECENT LETTER TO ENVIRONMENTALIST, WHO WISHES TO TAX THE WORLD FOR PREVENTING THE END-TIMES EFFECTS OF GLOBAL WARMING]: The idea "End Times," which every generation warns about, has to do with Earth and solar system cycles that effect mass extinctions, in which, say, a high-culture civilization is brought to its knees, forced to revert to savagery, in order to survive, and living in caves and other primitive shelters. //

That's what the Mayan calender date 2012 may be about--about another turning, or solar-system cycle, such as PRECESSION OF THE EQUINOXES and/or our SOLAR SYSTEM PASSING THROUGH THE GALACTIC PLANE. [[ Note: It's extremely rare that both events occur simultaneously, as is happening right now. ]] In other words, there may be a deeply embedded genetic alarm-system, which keeps Mankind ever-wedded to the idea "End Times"--out of sheer terror of what always comes around, over and over and over again. //

Read these three books: "Forbidden Knowledge," by Cremo and Thompson, "Not by Fire but by Ice," by Robert Felix, and "Fingerprints of the Gods," by Graham Hancock. // The first book provides archeological evidence that many civilization have met their End Time by either PRECESSION or OUR SOLAR SYSTEM PASSING THROUGH THE GALACTIC PLANE. //

The other two books provide near-irrefutable proof that Mankind is not responsible for GLOBAL WARMING, but that astronomical cycles are!, which fact makes spending ourselves do death on environmentalism a huge, APOCALYPSE-TYPE MISTAKE in itself.

#######


joe smith
20 Aug 08, 20:35
Your getting warmer, but read this

What is going on right now does not bode very well for America at all. What would you do if I told you that there is a plan in action right now to strip you of your freedoms, inter you in a detention camp indefinitely, and take control of every aspect of our country?

This plan goes back decades, but I would like to keep it recent. We’ll say, the past 2 years. It all starts with H.R. 5122 (John Warner National Defense Authorization Act for Fiscal Year 2007)[text of bill] which was passed in congress on September 30, 2006 and signed by President George W. Bush on October 17, 2006. This bill effectively (and officially) paved the way for the complete control of our country by one man - The President himself.

The bill revises the Insurrection Act of 1807, an act allowing the president to personally use military force to quell rebellion, lawlessness, and subversion. The new revisions expand those abilities to allow Bush to “…employ the armed forces, including the National Guard in Federal service, to…restore public order and enforce the laws of the United States when, as a result of a natural disaster, epidemic, or other serious public health emergency, terrorist attack or incident, or other condition in any State or possession of the United States…, where the President determines that,…domestic violence has occurred to such an extent that the constituted authorities of the State or possession are incapable of maintaining public order; suppress, in a State, any insurrection, domestic violence, unlawful combination, or conspiracy…”. The Insurrection Act of 1807 was repealed in 1878 with the passing of the Posse Comitatus Act which reinforced the idea that the military was meant to govern our borders rather than police our streets.

Signed into law on the same day, we have the Military Commissions Act of 2006 [text of bill] which allows the President to deem any citizen an “enemy combatant”. It also did away with habeas corpus, the right to bring your case before a public court, and instead moves all legal dealings to confidential military tribunals.

These 2 changes in our system of Constitutional law are particularly disturbing due to the legislation passed in the past:

Executive Order Number 12148 created the Federal

Emergency Management Agency to interface with the Department of Defense

for civil defense planning and funding. An “emergency czar” was

appointed. FEMA has only spent about 6 percent of its budget on

national emergencies. The bulk of their funding has been used for the

construction of secret underground facilities to assure continuity of

government in case of a major emergency, foreign or domestic.

Executive Order Number 12656 appointed the National Security Council as

the principal body that should consider emergency powers. This allows

the government to increase domestic intelligence and surveillance of

U.S. citizens and would restrict the freedom of movement within the

United States and grant the government the right to isolate large

groups of civilians. The National Guard could be federalized to seal

all borders and take control of U.S. air space and all ports of entry.

Executive Order 10990 allows the government to take over all modes of

transportation and control of highways and seaports.

Executive Order 10995 allows Seizure of all communications media in the

United States.

Executive Order 10997 allows Seizure of a all electric power fuels and

minerals, public and private.

Executive Order 10998 allows the government to take over all food

resources and farms.

Executive Order 10999 allows Seizure of all means of transportation,

including personal cars, trucks or vehicles of any kind and total

control of highways, seaports and waterways.

Executive Order 11000 allows Seizure of all American people for work

forces under federal supervision including the splitting of families if

the government finds it necessary.

Executive Order 11001 allows seizure of all health, education and

welfare facilities, public and private.

Executive Order 11002 empowered the postmaster general to register all

men, women and children in the U.S.

Executive Order 11003 allows seizure of all airports and aircraft.

Executive Order 11004 allows seizure of all housing and finance

authorities to establish Forced Relocation Designated areas to be

abandoned as “unsafe.”

Executive Order 11005 allows seizure of all railroads, inland waterways

and storage facilities, public and private.

Executive Order 11051 specifies the responsibility of the Office of

Emergency Planning and gives authorization to put all Executive Orders

into effect in times of increased international tensions and economic

or financial crisis.

Executive Order 11921 allows the Federal Emergency Preparedness Agency

to develop plans to establish control over the mechanisms of production

and distribution, of energy sources, wages, salaries, credit and the

flow of money in U.S. financial institution in any undefined national

emergency. It also provides that when a state of emergency is declared

by the President, Congress cannot review the action for six months.

Executive Order 12919 otherwise known as National Defense Industrial

Resources Preparedness, was signed by William Jefferson Clinton on June

4, 1994, and released on June 6, 1994. EO 12919 making the President a

virtual dictator in war or peace.

For actual texts of the Executive orders, simply use your favorite

search engine and search or http://www.archives.gov/federal-register/

This is all just preparing for the future. Toward a time when the president can declare a “state of emergency” and then take control of any function in our nation, with military force and no intervention by the then-crippled satellite government.

And then we have this year:

Executive Directive 51 which defines a “national emergency” as “any incident, regardless of location, that results in extraordinary levels of mass casualties, damage, or disruption severely affecting the U.S. population, infrastructure, environment, economy, or government functions.”. It also allows for the President to personally declare when this state is reached without any congressional oversight. This directly goes against the separation of powers in our constitution and also the National Emergencies Act which makes sure that Congress oversees the declaration of a state of emergency. This directive states that in this case an “Enduring Constitutional Government,” comprising “a cooperative effort among the executive, legislative, and judicial branches of the Federal Government,” will replace the current form of government and will solely be coordinated by the President himself. This effectively changes Bush into a dictator and gives him the ability to disassemble our current government and implement a new Enduring Constitutional Government - under his totalitarian rule.

What’s even more disturbing than that is the fact that all this that we know - is only the declassified information. The National Security and Homeland Security Presidential Directive contains an entire portion that is completely classified. In fact, its so secret that Congress is not even allowed to see it.

A large part of this plan for domination rests on FEMA, the Federal Emergency Management Agency, whose purpose is to “coordinate the response to a disaster which has occurred in the United States and which overwhelms the resources of local and state authorities.” As shown in the above list of executive orders, FEMA gains control of a large portion of our rights and liberties if any sort of emergency would be declared - including any emergency the President chose to declare within his wide scope of options (”a natural disaster, epidemic, or other serious public health emergency, terrorist attack or incident, or other condition in any State or possession of the United States”, and economic crises, etc). Another help in widening the power of FEMA was the National Security Act of 1947 and the 1950 Defence Production Act.

FEMA’s powers were consolidated by President Jimmy Carter to incorporate: The National Security Act of 1947, which allows for the strategic relocation of industries, services, government and other essential economic activities, and to rationalize the requirements for manpower, resources and production facilities; The 1950 Defense Production Act, which gives the President sweeping powers over all aspects of the economy; The Act of August 29, 1916, which authorizes the Secretary of the Army, in time of war, to take possession of any transportation system for transporting troops, material, or any other purpose related to the emergency; and The International Emergency Economic Powers Act, which enables the President to seize the property of a foreign country or national. These powers were transferred to FEMA in a sweeping consolidation in 1979.

As part of their contingency plan for keeping peace is the use of hundreds of “detention facilities” dotted all around the USA. [locate a camp near you!] These are camps that were built by Halliburton and have been being built and renovated since the 80s. These camps were used as part of Rex 84, a military readiness exercise to test their ability to detain large amounts of American citizens during a time of national emergency or civil unrest. FEMA, along with 34 other federal civil departments and agencies, conducted this exercise which “anticipated civil disturbances, major demonstrations and strikes that would affect continuity of government and/or resource mobilization. To fight subversive activities, there was authorization for the military to implement government ordered movements of civilian populations at state and regional levels, the arrest of certain unidentified segments of the population, and the imposition of martial rule.” [source]

Because of these laws giving power to FEMA (and because of other laws to modify those ones, the President), they have ability to detain any US citizen without trial or reason for an unlimited amount of time, and use torture and execution methods if deemed necessary. This also gives them the ability to take control of every function of society in one fell swoop.

And now we reach today. In the past few weeks, a certain scary set of events has begun to unfold that point to a possible use of martial law in the not-to-distant-future. The first is the apparent collapse in the US economy. That subject alone would need its own article, but needless to say the American economy is going down the tubes, and nothing that the FTC or the Federal Reserve has done so far is helping.

The second (and far more disturbing, in my eyes) is the flight and subsequent disappearance of active nuclear warheads on US soil.

The situation is so:

On Thursday, August 30, 2007 a B-52H Stratofortress flew from Minot AFB in North Dakota to Barksdale AFB in Louisiana while carrying twelve AGM-129 cruise missiles. 6 of these missiles were armed with W-80 nuclear warheads. The story of the B-52 flight was first reported by Army Times, owned by Gannett, on Wednesday September 5. Gannett relied on information provided by “anonymous officers”. The story was picked up by Yahoo! News Wednesday morning, published by USA Today and The Washington Post, and then quickly spread. According to the Air Force, the missiles were being decommissioned and active nuclear warheads were loaded onto the planes by accident.

According to Hans Kristensen, a nuclear weapons expert at the Federation of American Scientists, “the error could not have come from confusing the Advanced Cruise Missile with a conventional weapons since no conventional form exists. So the munitions Airmen should have been easily able to spot the mistake. Other routine procedures were violated which suggests a rather obvious explanation for the error. The military munitions personnel were acting under direct orders, though not through the regular chain of military command.” However, if this is the case and the missiles were being transported for decommissioning, then they would have been flown to Kirtland Air Force Base in New Mexico.

According to Kristensen, this is “where the warheads are separated from the rest of the weapon and shipped to the Energy Department’s Pantex dismantlement facility near Amarillo, Texas”

Rep. Ike Skelton, chairman of the House Armed Services Committee, called the mishandling of the weapons “deeply disturbing” and said the committee would press the military for details. Rep. Edward J. Markey, a senior member of the Homeland Security committee, said it was “absolutely inexcusable.” “Nothing like this has ever been reported before and we have been assured for decades that it was impossible,” said Markey, D-Mass., co-chair of the House task force on nonproliferation.

Nuclear warheads are very difficult to “accidently” load onto a combat-ready plane. The rigorous safety measures in place have done their job well for decades.

A sophisticated computerized tracking system is used for nuclear weapons. Multiple sign-offs are required to remove the weapons from their storage bunkers.

The AGM-129 Advanced Cruise Missile was designed to carry nuclear weapons. No non-nuclear warhead is available for this missile. So the only possible error could have been loading nuclear warheads on the missiles instead of practice dummies.

The practice warheads have standard blue and yellow signs declaring “Inert, non-nuclear”. The nuclear warheads have at least three distinctive red warning signs. This error is therefore highly improbable, absent tampering with signage.

Nuclear weapons are transported from the storage bunker to the aircraft in a caravan that routinely includes vehicles with machine guns front and rear and guards with M-16s. All steps in the process are done under the watchful eyes of armed military police.

Rules require that at least two people jointly control every step of the process. If one person loses sight of the other, both are forced to the ground face-down and temporarily “placed under arrest” by observant security forces. All progress stops until inspections are made to assure the weapons weren’t tampered with.

All nuclear weapons are connected to sophisticated alarm systems to prevent removal or tampering. They could only be removed from the storage bunker by turning the alarm off. And the squad commander clearly would not have authority to turn off the alarm.

[source]

The real kicker is a possible missing nuke. Minot AFB is missing 6 nukes. After sitting unsupervised for 10 hours at Barksdale (which, incidentally, is the staging base for Middle-East operations by the Air Force), there are 5 warheads reported on the plane.

So, we have:

1) A B-52 flown cross-country to the wrong Air Force base with 6 active nuclear warheads in battle-ready positions affixed to the wings. This is all against numerous safety measures, and apparently “under direct orders, though not through the regular chain of military command”, and in direct opposition of numerous treaties and international agreements to under no peacetime circumstances allow military SOPs to transport nuclear weapons mounted in cruise missiles mounted in combat positions on combat planes.

2) A possible missing, active, nuclear warhead amidst talks of a false-flag attack and possible terrorism threats on the United States.

3) A complete stand-down by Air Combat Command of 100,000 active-duty airmen and a majority of operations on September 14th, 2007.

What does this all mean? What it means is that the President of the United States of America currently has the ability (due to recently-passed legislation, along with established laws) to completely take control of every function of government (local, federal, or otherwise) and society, to imprison American civilians without cause or trial, indefinitely and with possible torture and death in privately contracted and constructed detention facilities controlled by FEMA, and dissolve the current form of government at any time that he sees necessary (or otherwise) without any oversight or possible intervention from the other branches of government. This includes being able to disarm the populace, shut down the borders, and control every aspect of your life. These powers are unjust, unconstitutional, and very real. This all comes at a time when his administration has jumped ship, the economy is failing, and the threat of terrorist action or false-flag attack is very real.

This is a very possible situation that occurs every day in other countries and is long overdue in our nation. This is a very real threat, and the current administration has no qualms about using these powers to control US citizens. For recent proof, see the Hurricane Katrina crises. This also takes place during a time that nuclear warheads are being flown against international treaties, and there might be one missing.

What can you do about it? Knowledge is the best antidote for danger such as this. Spread the word - through phone, email, word-of-mouth, pamphlet, whatever medium you can use to inform as many people as you can. Know your constitutional rights. Keep your eyes open. Be sure people are aware of the situation and your opinion on it. Get people mobilized to take control of their own government. This democratic society needs to be democratic and show the nation’s leaders what we think about their unfair actions and policies. Contact your congressperson through phone or other method and let them know what is going on and what you think about it. Send them this article.

Do your own research and question everything!

P.S. - Coincidentally, while writing this article, Vladimir Putin dissolved Russia’s government. See how possible it is?

Further Reading

InformationLiberation - News

Signs of the Times - News

Newsvine.com - News

Further Watching

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Posted by erissiva

Filed in Non-Fiction, Political

4 Responses to “Martial Law 2008”

joe smith said:

May 15, 2008 at 1:22 am

People need to wake up. There are close to 600 FEMA “immigration detention” camps in this country built by Haliburton subsidiary KBR. Google it people! These are said to be used in an “immigration emergency”. What exactly is an immigration emergency. Dont people understand that presidential directive 51 basically makes our president a dictator. Thats right folks, its signed and sealed…google it. It gives him the power to move large groups of civilians “for their own good”, he will controll all federal, state, county and local governments, he can seize any property or material for the use of the military or government, he can use private companies at his discression for the military or government, gives him full control of all agriculture and so on and so forth. Now, combine that with the wonderfull patriot act which allows the government to search, seize and arrest with no warrant. Detain you INDEFFINITELY. And you have no right to a trial (suspends habius corpus). Lets not forget finally that the president signed a bill that reverses pose comitatus…which said that the military cannot police its own citizens or take part in arresting procedures…well, thats over with. Put all these together and the constitution along with the bill of rights are not even worth the paper they are printed on any more. We are one disaster, one “terrorist attack”, one major anything in this country from the president declaring martial law, for our safety of course! But in order for it to happen peacefully, their going to need your guns please. Now, remember…you no longer have the right to bear arms because the patriot act allows search and seziure without warrant and the military can come in your home because of the reversal of pose comitatus….FEELING VIOLATED YET PEOPLE. Now that leaves us with you…..! You will probably be in an “unsafe area” due to whatever disaster has taken place so you will need to go with the nice soldiers to wherever, remeber presidential directive 51 alows the government or in this case the president to move large groups of u.s. citizens if necessay. Now where will everyone be placed. How convenient…there are six hundred empty “immigration detention camps” in this country from an “immigration emergency” that never happened. And finally lets not forget that there is no clear clause that says when the president must step down once he invokes these new powers. READ THEM FOR YOURSELF FOLKS. I called FEMA and they said they know nothing of the facilities, they said call ICE (immigration, customs enforcement) When I called them they said they were unaware of them as well(what??You dont have a computer?)Though the agent I spoke with said he would love the information I have. From what I can see about the FEMA “detention camps”…they have no bathroom facilites (that I can see) no bunking or bedding…(that I could clearly make out) and a large majority of them are old train stations or factory facilities that have been boarded up and retrofitted with barebed wire fencing. Feels homie right? Anyway, I’m not even going to say what all this resembles but hopefully you will all wake up. And by the way, everyone should look into the total number of U.N. troops that are already here for “training” on our military bases, I haven’t been able to get a solid number but the point is presidential directive 51 gives the president the right to use U.N. forces if necessary to help in a massive civil unrest situation if needed. That is so convenient, I’m sure glad their here……! Well the rabbit hole goes much deeper than this but I’m sure all you silver surfers will look into the rest without me having to hold your hand. The government sure thinks they need to.

joe smith said:

August 9, 2008 at 2:49 am

Well here we go! Russia invades one of its former provinces, Georgia on the opening day of the olympics. This is simply slight of hand on a global level. Everyone is looking over here when what really needs attention is happening over here. I wasnt sure what the event would be that would set all these needed government preparations into motion, but now after some thought, what a better way to start some sort of massive global conflict than this. Georgia was being welcomed into the U.N. backed by the U.S. and we have bases and troops in that country. This could easily be spun into a “Russia has attacked U.S. interests in Georgia” problem. And this could open the door to a very big problem. Not to mention that another “terrorist attack” could take place on top of an escalated event with Russia. And lets also not forget that there is also a possible event with Iran because of there “Nuclear Program”. There is now a web of possible excuses that could plunge this country into political nightmare. Oddley enough I have noticed blogs on the internet about Russian troops in America and through some of my own research I have discovered that there are thousands of Russian troops on decomissioned Army bases here that were turned over to the U.N. for “U.N. peacekeeping training facilities”. I have seen U.N. vehicles on flatbed trucks on a highway near my home heading northbound with my own eyes. Ft. Dix is north of me and oddley enough it is also one of the bases turned over to the U.N. as a training facility. Now what makes this very disturbing is the fact that if you google…U.S. Military Civil Disturbance Plan/Operation Garden Plot, (one of the most disturbing documents you will ever read) you will see that this plan allows the president to call in none other than the UNITED NATIONS to help as a “peace keeping force!The pieces of this puzzle are very disturbingly fitting together very well. There are many more disturbing things that I found in relation to this but they are speculative and I cannot confirm them and I would like to stick to the facts. I have seen the vehicles here, I know that the bases are being used and I have been told by U.S. troops that they have trained side by side with U.N. troops here in America on several different bases(one of these is a family member) I’m not sure what is about to happen but I think we are past the point of no return.

joe smith said:

August 9, 2008 at 3:13 am

P.S. If this is what is happening, be prepared for everything you can think of to keep your attention off of an escalating situation through little or no press. You will be told of political scandals, breaking news in the “anthrax case”, the war in Iraq, the olympics, anything that will keep your attention off of what is happening in Georgia to allow the situation to escalate past the point of no return with no public outcry until it is too late. The end times clock has possibly started ticking.


Jamie
15 Apr 09, 05:29
Mayan Calendar

Deacon Elurby, the Mayan Calendar does end 2012, but it doesn't say that world ends that year. 2012 was just the end of the calendar cycle and after 2012 starts a new one. So the information you've received is nothing than propaganda and the earth isn't going to burn or endure some type of major change because of pole shifts, ect... God is the creator of all and created the world for the people. Don't you think our creator would have thought of this beforehand? Wake up people. Don't become like the rest of the sheeple of the world.


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