Is a Soviet Union style collapse imminent?

A paradigm shift is occurring, and America’s wealth has gravitated East, and China’s once renowned poverty is also moving West. Being America’s 51st state has always been beneficial to Britain, but could this cosy relationship also become a curse?

A brighter road ahead with a quality solar installer.

A brighter road ahead with a quality solar installer.

America defaulting on its debts is just around the corner. America defaulting on its obligations will change life for every person in every state including the 51st.

The ball has again been kicked down the road until January by the successive administrations, with their debt ceiling debates, but the day of reckoning is coming.

What is happening here, is the American government is telling the rest of the world including China, “keep lending us more money, or we will default on our debts, and this is a road you don’t want to go down!”

An American default will put the world into an economic disaster that would make the last 2008 crisis look like a financial hiccup. The worlds biggest and smallest economies are built upon the foundations of the US dollar so that a default scenario would influence on all international economies!

The American kingpin economy is unfolding before our very eyes with hyperinflation a real threat to our way of lives, but we won’t hear any mainstream media talking about this? We are inundated daily with information, but the actual situation is being suppressed to prevent panic.

If you want to envisage a preview in small-scale, then look no further than the modern city of Detroit. A once diamond in the American economy, now more recently looking more like the aftermath of Hurricane Katrina today. And if you don’t think hyperinflation can occur in the modern world, then look at Argentina, Bulgaria, Brazil in the 1990s, and the Soviet Union after collapsing.

As someone who grew up within the cold-war era, it is very ironic that America’s future now lies in the hands of communists with China beating capitalism at its own game.

As this new Chinese wealth begins to buy-up natural resources, property and businesses around the world, there will have to come to a point when the world economies based on the yuan currency.

The equal and opposite reaction will mean the dollar will crash. This will see the 51 states of America dive into the unknown economic territory at worse or the Soviet Union sized crash at best. Some of the most influential countries are preparing for a post-dollar based world. Are you?

There comes a time in every best buddy relationship when that relationship eventually turns sour.

Faith in fools gold

Gold has been an obsession with humanity from ancient times and right through to modern times. Governments obsess with gold and individuals amass gold as insurance, but are they barking up the wrong tree?

The day after a real Soviet Union-style crash, you will never be able to contact your broker. Gold assurance is a fool insurance policy because food, clean water, alternative energy and medicine will be the only way you can survive the aftermath of monetary implosion.

If a crash does occur, your gold will become instantly worthless. Nobody is going to swop your shiny trinkets in exchange for life-giving nourishment, thirst-quenching liquid or life-saving medicines.

The same with diamonds. The appeal of these sparkling stones as a result of a marketing campaign by an early De Beers company which were a conglomerate of mine owners who needed to add value to their newly discovered mines in the 1940s. The “A diamond is forever” campaign was such a success story that even today, we have forgotten that this was initially a marketing campaign to sell worthless pieces of sparkling rock. Diamonds maybe forever, but their value indeed isn’t, and that is why De beers ruthlessly restrict their mines output.

These shinney geological stones in a survival situation will be rendered useless and will leave you will wish you had invested in alternative energy technologies such as solar panels to keep your world going.

Looking at today’s Detroit, the diamond city in the American economy, it may be hard to believe that the old days are behind it. However, this once economic success story is gone, and its inhabitants are struggling just like the Soviet Union crash in the late 1980s.

The inevitable economic downfall of the American dollar will first begin via hyperinflation, and no amount of gold bullion under your bed will help when the supermarkets become empty.

In contrast, the people of the developing world intrinsically understand the value of being alive. Even in natural disaster areas, if a camera comes around to film the devastation, they will always smile into the lens. Now compare this to western attitudes where people complain for hours if their transatlantic flight delayed for an hour.

Western culture has not lived in the real world for a long time.

Have we had it too good? Probably.

Is it going to last? Almost certainly not, so a dose of reality may be just around the corner.

"Light is life."

Stuart Lovatt 2013-11-06
Founder of Power My Home.