DEBT JUBILEE
Ah, good old hyperinflation. You bought FLIR scopes and freeze dried yak
spleen on credit, and with your advanced basket weaving degree that only set
you back a hundred grand in student loans you are now working as one of the
last executives at K-Mart, living in McMansionville in the classy part of town
( a whole Interstate between you and the ghetto ). Things are a little tight after the misses
got liposuction ( her and the pool boy look happier these days ), but with the
way the economy is going the Fed inflating the dollar makes the debt easier to
pay.
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As soon as Saudi Arabia goes full
feral on us and embraces their new Sino Overlords, the day the PetroDollar
Dream dies, why, a good dose of hyperinflation will wipe away most of our debts. With a few good pay raises we can pay off our
mortgage and be sitting pretty. Because
the Federal Reserve Bank loves us and wants to help, sort of an apology for the
last century of taking a nice gold dollar and running it through the
shredder. Then stomping on the
remains. Then taking a crap on top on
them.
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Even if that fantasy came true, which
I have a hard time believing, ask yourself this. How are you going to pay off that inflation
adjusted property tax? We’ll come back
to that. First, a little history of
hyperinflation. They are generally over
with pretty quickly. That is the good
news. The bad news is, you never win. You, the little guy. Those in power always figure out a way to rig
the game in their favor. Do you recall
the Weimar inflation? Most folks
remember the wheelbarrow full of cash being stolen, and the worthless currency
left on the ground.
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Do you remember the part about the
postage stamp used to mail a pension fund being worth more than the check
inside? Do you remember the part about
the unemployment that went along with it?
Sure, workers would take their pay at lunchtime and buy groceries, as
the food prices would double by quitting time, but you still needed a job for
that to be applicable, didn’t you? The
Nazi’s might have been the wrong horse to hitch your wagon to, but they got
everyone employed, eating and having coal in the winter.
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The newly crowned Federals wiped away
their war debts by hyperinflating the Continental. As a bonus, a lot of veterans were hard
pressed and sold their wilderness land grants to speculators. The rich got richer. So, your mortgage gets paid off by inflation,
in theory. You’ll sign it over to some
rich pricks corporation in order to get some food, as soon as you get canned by
another company belonging to that same corporation. The more houses on the market the cheaper
they get. Food will be much dearer. And hard pressed local governments will start
jacking up farmland taxes.
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So forget getting filthy rich selling
potatoes out your garden. Remember the
stories of the zoning Gestapo the day after the hurricane coming through and
writing violations? All those government
employees with a need for a paycheck will be snooping out your backyard with
drones, food production being taxed.
Even if you can afford the county property tax, how about the city food
tax? The one thing you can take to the
bank, and win bets of jelly filled donuts on, is the ingenuity of the taxing (
and enforcing ) authorities. They always
think of something.
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Those pricks in Oregon probably made
water catchment illegal so they could fine you after the water plant went tits
up. Another thing they will change is
the interval between non-payment of taxes and government seizure. That will shrink drastically. As the level of force escalates over
non-vacating former owners. The SWAT
team is equipped and raring to go. We
cannot foresee the depths of depravity our “civil” servants will go to so as to
clutch their iron rice bowls ever closer to their black hearts. But they will. Go back and watch “Michael Collins” for a few
ideas on collaborator elimination.
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This last economic implosion, the
bankers basically stole everyone’s homes, then instead of reselling them, they
got turned into rentals. That is more
profitable, and they didn’t have to worry about them succumbing to the weather
( the property management team that got a cut was in charge of preservation
). As you saw, these Mexican labor
plastic wrapped hunks of crap deteriorated VERY quickly, so file that away in
your salvage plans. But this time
around, with unemployment, who will be left to rent? By that time, will the banks be happy to let
you have the thing?
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Will the counties actually work with
people rather than penalize them for being poor? That didn’t happen during the 1930’s. The poor were still ostracized, belittled if
they resorted to welfare ( what existed back then ), and felt lucky to have a
dangerous job at a factory. But that was
a wealth consolidation period. This next
time, wealth has already severely contracted.
The bankers might just leave you to your own devices. You can have the house. Which soon will not have power or
sewage. Those services cannot be
provided by the broke counties unable to secure more loans as they default on
the old ones.
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So you might just see a two prong
degradation. Those areas with disarmed
sheep will be squeezed and abused, the ones with some wealth left remaining on
the grid-barely-but homeowners violently abused until they go under
financially. There will be your insane
property taxes and SWAT raids. Those
counties still pay their loans to the banks.
Those rural areas full of pissed off armed folks will have most of their
centralized services ( imported energy or power pipelines shut down, semi truck
roads not maintained ) cut but the governments more cooperative.
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This is going to be how the energy
and resources are triaged. Those areas
still paying back the loans get cut off last.
But they WILL get cut off, eventually.
That is what happens during decentralization. The center cannot hold. But be clear on what happens during that
process. The more tyrannical governments
will see the most violent reactions.
Eventually, once the citizens break under the burden. Those areas violently reacting FIRST, at the
onset, will of course lose their beloved imperial swag, the bribes to
pacify. But they will also avoid the
long term destruction.
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A good example might be
Afghanistan. They lost the benefits of a
national government, going back to a pure tribal economy. But they also lost the detrimental effects of
a national government that was always broke and trying to exploit the people
through taxes. Towards the end, none of
the benefits of centralization were delivered but all of the costs were still
extracted. It was cheaper to pay off the
warlord ( who protected you ) in food than it was to sell food ( with prices forced
down to benefit mechanized foreign growers ) and try to pay the taxes that got
you no police protection.
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Tomorrow, I’ll cover more of the
benefits of forced decentralization, inflation strategies, etc.
( .Y. )
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