It has been said a generation that does not know history has no future.
By Jim Lynn – Copyrighted 2012
On my radio show, Reclaiming Your Legacy, I recently (May 2012) interviewed my well informed ministry friend, Jim Lynn, about what the collapse of the dollar means to you. Please listen to that interview on KFIA.com. Access it in the Podcast-Local Program section. Find our program title. Click on the archive and select the May 8, 2012 show. Below is an introductory report to introduce you to what is ahead very soon. More than any single influence we have known in our lifetime, this unraveling of events will change the way everyone in today’s generation lives
Warning: Be careful not to allow “Cognitive Dissonance” to keep you from taking action on this information. The warning of a coming invader could not be more real in causing you to “grow up” very fast in taking charge of your future. In coming days I will be giving you links to other important resources of high value to share with your loved ones. Please be sure you have requested to be on my opt-in list at www.ReclaimingYourLegacy.com
Proverbs 27:12 “A prudent man sees evil and hides himself. The naïve proceed and pay the penalty.” (see Isaiah 26:20)
Most Americans know by now something has fundamentally changed the
U.S. banking system and our economy. That something is a black hole of
government spending and debt that can have but one outcome. While we
may not know the details, large numbers of people know the end result and
aren’t waiting around to see what happens or for help to arrive. People are
actively now preparing for the inevitable bankruptcy of the United States
government and collapse of the U.S. dollar.
The purpose of this report is to explain and give you information that can
literally make the difference between life and death. You already know we
are going to go through hard times…You already know you must be wise in
how you spend your money…And you already know you are going to have
to make plans on how you make your income both before and after the
collapse…The question is…Will you and how will you?
I did not write this report as some “Doomsday Prepper,” locked and loaded
for whatever comes our way. Rather I wrote it as a Christian concerned for
God’s children, one who has studied the subject and sees heartache ahead.
My admonition is that after reading this report, you discuss it with your
family and Church and pray for guidance.
Few Understand How Big and Bad it really is
Few people in the U.S. understand how our monetary system works (Thank
the government run school system for that). And the few people in political
power who do understand it are keeping quiet: Not because of the trillions of
dollars our country owes, but because of what is going to happen BECAUSE
of it. They are scared to death.
The greatest life-changing event of our lifetime, a total collapse of our
monetary system, will happen sometime this decade. Words like “hardship,”
“struggle,” and “calamity” do not come close to describing what we as a
nation of individuals and families will experience.
It matters not which political party is in power. I sincerely hope you
understand this. The matter is out of their hands to prevent. The U.S.
Congress may slow the progress of the inevitable default and bankruptcy of
the federal government, but no one can stop it from happening.
America is in deep, deep trouble. The federal government is over $16
TRILLION dollars in debt. This debt is so huge; it is almost equal to the
debt of all other nations on Earth…Combined! Here’s the thing: The debt is
more than can ever be repaid without destroying our standard of living.
Whatever savings and underlying net worth millions of people may claim
will be systematically destroyed in the process. No one is telling us this.
How is this possible?
What we call money today is an abomination unto God. The monetary
system we use now (fiat currency) was conceived in iniquity and born in sin
(Proverbs 20:10). Time was when our paper dollars were redeemable in real
money (silver and gold), but no more. What we call a dollar today is no
more than a deception, a broken promise.
Compare the paper dollars below. The paper dollar on the left is a Silver
Certificate; the paper dollar on the right is a Federal Reserve Note. Our U.S.
monetary system was once on a gold and silver standard. Our paper dollars
were Certificates that could be redeemed for actual silver or gold coins in
any U.S. bank. The assurance people had that their paper dollars could be
redeemed in silver or gold was stated on the face of each Certificate. For
example the $1 Silver Certificate below reads: “This Certifies That There Is
On Deposit In The Treasury of The United States of America One Dollar In
Silver Payable To The Bearer On Demand”
As long as people could redeem their silver and gold certificates for actual
silver and gold, they knew their paper dollars were safe and sound. That is
no longer the case today. The U.S. monetary system works now like a Ponzi
Scheme. Today instead of Silver Certificates we carry around I.O.U’s.
Take a U.S. dollar out from your wallet and look at it. See where it says
“Federal Reserve Note?” That word, “Note,” means a debt exists against the
dollar bill you are holding, and every other dollar in existence. In other
words, U.S. dollars are nothing more than monetized Debt Notes…Empty
The government abandoned our silver and gold standard required by the
U.S. Constitution. Our monetary system is now based on debt, not silver or
gold. This means the government must continually borrow and therefore
print and circulate ever more Federal Reserve Notes in order to function, or
else the entire system will collapse. Each new dollar Note printed has one
dollar of debt plus interest of more Debt Notes accrued against it. We are
borrowing Debt Notes into existence (from a private corporation called The
Federal Reserve Bank), and paying for them with more Debt Notes that do
not exist yet. There is nothing of substance or value backing these notes.
We have to print and borrow ever more Debt Notes (paper currency) in
order to pay off (roll-over) the interest on existing debt. This means even if
the government confiscated every Debt Note dollar ever printed or created
by a keystroke, there still would not be enough dollars in existence to pay off all debt.
Our national debt is now so huge; the government is no longer paying down
the principal owed. Even with low interest rates it’s all the government can
do just to pay the interest owed to keep America afloat. When interest rates
once again rise, as they will, making future interest payments on the debt
will eventually become impossible. There will not be enough dollars to both
pay the debt and run the government.
Debt based monetary systems work until eventually there is so much paper
currency in circulation the paper is rendered worthless. As the sheer quantity
of these dollars find their way into the economy, they lose purchasing power
causing everything we buy to go up in price (product inflation).
This explains why, for instance, a box of Kellogg’s Corn
Flakes that cost .99 cents back in 1980 costs $3.99 today.
Same product, there simply are more dollars (debt notes)
competing for the same box of cereal which increases its
price. Inflation is insidious in that it robs us of our ability to
maintain our standard of living.
The U.S. Treasury must now borrow $4.1 BILLION dollars every DAY just
to pay the interest on our $16 trillion dollar debt. It does this by selling
Bonds to investors. Of course creating and borrowing more Debt Notes just
adds to the debt. It also explains why our government must always raise our
taxes to keep functioning. This CANNOT continue for much longer.
As the national debt grows, paying the interest due will soon become
impossible, as the payment will become greater than the entire national
budget. Either that or investors will stop buying Bonds long before the
interest rate earned from those Bonds no longer keeps up with inflation.
Eventually, the rate of inflation will increase so rapidly, no one will want
U.S. dollars: Not investors, business people, consumers…No one!
Coupled with the economic depression we are already in, America cannot
last, as we know it for much longer. Consider where we are:
•An average of 23 manufacturing facilities a day closed down in the
United States during 2010. Overall more than 56,000 manufacturing
facilities have shut down since 2001.
•As the economy unwinds, more and more job prospects disappear.
Right now for every job opening in America, there are 5.5
•67 million Americans (that’s 1 of every 5) receive some kind of
financial aid directly from the federal government to the tune of 2.6
trillion dollars annually (that’s more money than the federal
government takes in from taxes for the entire year).
•Over 46 million people are receiving food stamps (23% more than
just 3 years ago). 1 of every 4 homeowners is under water with their
mortgage, due to home values falling.
We are no longer the land of the free…We’re the land of the afraid!
And for good reason…
Things are going to get much worse for the economy as a whole, and for life
in America as we know it. The debt crisis will get far nastier than we can
imagine, and go on far longer than we can imagine before there’s any hope
of a real recovery.
Continue reading The American Debt Crisis – What it Means to You