#TinFoilTuesday – Why You Should Be Looking Forward to the Coming Monetary Collapse

“Crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.” -MIT economist Rudiger Dornbusch

While our detractors will paint us as paranoid survivalists wearing tinfoil hats so the government can’t listen in on our thoughts (a slur that we’re clearly happy to appropriate in the spirit of tongue-in-cheek sarcasm), it doesn’t take an over-developed sense of suspicion to believe with some level of certainty that the global economy and monetary system are on the verge of catastrophic collapse, just an understanding of some basic, uncontroversial, textbook principles of economics– and the ability to do some basic math.

There’s a monetary collapse coming for sure. That America’s fiat currency system is broken should be uncontroversial by now. The increase in circulating currency since 2007 (source) has been so steep, so sudden, so exponential– that hyperinflation is very nearly a mathematical inevitability. With food, metals, energy, and other global commodity prices soaring, heavy inflation has already hit the overseas vassals of the Washington regime’s military-monetary empire, and will strike the empire’s own citizens on their continent soon enough. All of the few prescient analysts that predicted the 2007-08 financial and housing crisis over a cacophony of objections and ridicule are agreed that the monetary system itself will be next and that the collapse of the U.S. dollar will happen soon. Peter Schiff has even pegged the date down to 2013 or 2014 at the latest. This is going to happen.

And when it does happen, it will be the single most significant historical event in any of our lifetimes and one of the most significant events with some of the widest-ranging consequences in all of recorded human history. At no other time in history has the global economy been so integrated and interdependent. This is a good thing, but it also means that the collapse of the world’s reserve currency at a time of unprecedented global economic slavery to fiat money will be catastrophic and devastating. People will suffer. Times will be hard for millions of people who never thought something like this could happen to them. It’s not going to be fun. I won’t enjoy seeing working class people who worked hard, saved, and lived within their means suffering for the hubris and greed of the establishment. So why should you be looking forward to the monetary collapse?

Remember, as advocates for sound money, that we don’t like the current economic and monetary system. It’s critically flawed, which is why it’s going to collapse. Being rid of it, while temporarily painful, is going to be the best thing that’s ever happened to us economically. The ability to print money endlessly as our banking and political overlords do is an oppressive and destructive power that has transferred untold amounts of wealth by increments from the productive, the hard-working, the saving, the investing, the innovative, the risk-taking, the entrepreneurial, the best and brightest of humanity– to the destructive, the hard-lobbying, the recklessly spending, the mindlessly consuming, the stagnant, the entrenched, the reactionary, the worst and most loathsome of humanity. They have been using this monetary system as a weapon to steal from and hurt the rest of us. When it finally collapses, their weapon will finally be gone. A machine of deception, plunder, and murder will break.

From a less moralistic, more technical and economic perspective, remember that advocates of sound money believe that the global fiat monetary system is horribly inefficient because it corrupts reality’s built-in set of incentives for productive human behavior. It has created a maddening, Alice-in-Wonderland world in which destructive behaviors like wars of aggression and irresponsible financial speculation by “too-big-to-fail” banks are rewarded with created dollars and productive behavior is punished by the resulting confiscatory dollar devaluation. Is it any wonder that after so many years and decades of this, the global economy suffers from such a malaise? That unemployment is so high, that standards of living are decreasing, that businesses are running out of cash and shutting down?

There’s only one cure for this massive economic hangover, and it’s not to nurse it with more of the same liquor that made us sick in the first place… it’s to just stop drinking. When the collapse hits, it will be painful, but it will be temporary– a natural adjustment that will set incentives straight again and reward productive behavior instead of destructive behavior. Because we have failed on a political level to rectify the inefficiencies that pervade our global economy, reality is going to do it for us. The monetary collapse will be Adam Smith’s invisible hand slapping down the establishment and leading the rest of us into a brighter, more productive future.

Remember that when the Soviet system collapsed in the late 20th century, it was a good thing for the many millions of the world’s people who lived under its repression and control. There was some temporary instability and uncertainty, but the collapse happened relatively bloodlessly and painlessly even. Almost overnight, the lack of central control over so many different human actions freed up the individual to respond to reality’s proper incentives and enjoy the fruits of peaceful, productive behavior. Former Soviet states began to produce more than they ever had under the oppressive Soviet system and a new crop of wealthy Russians came out of nowhere as they took advantage of the plentiful economic opportunities to bridge the myriad inefficiencies left in the wake of communist central planning.

I predict that’s how it will go down in the United States when the dollar finally collapses. There will be initial confusion, uncertainty, and pain, but these will subside quickly as the apparatus of a centrally controlled fiat money will no longer exist to interfere with people as they produce, trade, and do whatever they have to in order to survive and provide for themselves and their families. After we work through the growing pains of this massive correction, the economy could very well boom like it never has in our entire lifetimes.

In a recent interview I conducted with libertarian finance expert, Jeff Berwick, he explains just what libertarians and sound money advocates can do to prepare for the economic collapse and to be well-capitalized for the opportunities that happen after.  You can read it here on the Silver Underground. Understanding that an economic and monetary collapse are imminent does not make you a tinfoil hatter; it makes you perceptive and aware. Looking forward to it and preparing for it rather than vaguely dreading it makes you even more perceptive and aware. It also makes you responsible and could make you very economically successful. Do not fear. Instead calmly and methodically observe, orient, and take decisive action to prepare yourself. The economic collapse isn’t how we lose, it’s how they lose. It isn’t the end of our libertarian dream, it’s the end of their socialist one. Freedom wins. Tyranny loses. The people prosper. This is what awaits us on the other side of the collapse.

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