In 1933, the average German citizen piled his money into a wheel barrel just to buy one loaf of bread. Desperation, crime, and corruption ruled the day. Six years later, Adolf Hitler invaded Poland.
What does the burgeoning world debt mean to our future? What about the yearly multi-trillion dollar U.S. deficits? What signals are hinting that economies around the globe may be growing unstable? Are we being led to the trough of complacency by a systematic program of propaganda? Or are our leaders so blinded by the shadow of Gigantor that they cannot see the monster, therefore they refuse to admit that he is right there, standing over them, about to devour them... and us as well?
These questions are not new. They were asked during the Reagan and Bush administrations when deficits were a mere three billion dollars per year. Today, as we approach the second year of the Obama administration, deficits are predicted to reach 2.5 trillion, and there is no end in sight. Even the most insightful among us cannot imagine a trillion dollars, making the thought of 2.5 trillion the stuff of fiction. In fact, it seems the thought that trillion-dollar-deficits could cause, or even contributing to, economic collapse is analogous to the sun going dark -- not in the realm of human conceivability.
What will it take to rally a call to action? The following postulation describing what could happen if the industrialized nations, including the United States, begin defaulting on their debt, may lend a sense of urgency to the looming crisis. The events described, although based in fact, are hypothetical, but all of history was, at one time, hypothetical...until it happened.
The economies of the European Union(EU), while still reeling from their recent bailout of Greece, begin a tailspin when Spain declares it will default on its upcoming debt repayment to the (EU). Following the Spanish announcement, and despite the recent loan to Greece of just over 100 billion Euros, Greek Finance Minister George Papaconstantinou makes a surprise announcement that he will resign amidst accusations that he grossly understated Greece's projected deficits for the year. In an attempt to stabilize markets, the President of the United States declares that the US, along with the IMF (International Monetary Fund) and the EU, will come to the aid of Spain and Greece to prevent any declarations of default.
Within days, Moody's reduces Portugal's bond rating and downgrades eight Portuguese banks. These developments prompt an opportune albiet unbalanced reaction among the Middle East Oil Producing nations which includes Venezuela. Their concerns are voiced by Hugo Chavez, the president of Venezuela. The Saudis reluctantly call an emergency meeting of OPEC. The result is a shocking curtailment of oil shipments to a selected list of European and Asian countries, including Japan and South Korea. The move is harshly criticized by the US, its allies and the international media. Nevertheless, the effected governments scramble to put a positive spin on OPEC's opportunistic political bombshell.
The ball falls further when two of America's largest banks, within a day of each other, announce cash reserve imbalances as a result of the European and Asian debt crisis. Not a week goes by before a leak to the press discloses that another major US bank will not have the cash reserves to cover withdrawals. At the next day's opening of securities and commodities markets, rapid selling begins. Although not characterized by the media as panic selling, financial news analysts sound worried, which causes the ever distrustful and recession weary people, in towns across the United States, to make a mad dash to withdraw their money from their accounts. Financial institutions, large and small, begin to close their doors and, in some cases, chain and barricade them. Several instances of bank employees being shot and killed hit the news. Panic races through the populations of the world with venomous speed. The US President reiterates the Central Government's intention to fulfill the obligations of the Federal Deposit Insurance Corporation (FDIC). All individual losses incurred from failed banks will be backed by up to two hundred thousand dollars. This alleviates the panic for a day or so, but the devastation done by falling stock markets and the failure of some banks to reopen their branches leads to growing uncertainty and waning confidence in the monetary systems. The trading of currency is halted and the bottom begins to fall out of most of the major world markets.
China, faced with a growing concern that US debt repayments will, in all likelihood, be reduced or stopped altogether, launches its military into Taiwan as a diversion to its invasion of the Russian frontier, where it intends to secure the Sevastyanovo oil fields in eastern Siberia. The newly discovered fields hold reserves of over 150 million metric tons of oil. The United States and NATO condemn the blatant and dangerous act of aggression. The US, however, has no choice but to declare its treaty with Taiwan indefensible. The world is in shock as the most powerful country in history reneges on its defense treaty with Taiwan. Meanwhile, the US dispatches additional military personnel and equipment to the Middle East to insure the uninterrupted flow of oil for the US and its allies. Many of the Gulf of Mexico oil rigs have still not gone back on-line after the BP (British Petroleum) oil spill of 2010. As a result of that spill, the US governments cancelled off shore drilling leases and slowed production of crude oil from existing platforms until safety and environmental issues were investigated.
Europe, including England and the Scandinavian countries, are experiencing rioting. The United States goes to full military alert. The President's next announcement is that, under the current circumstances and in the interest of national security, the national defense oil reserves cannot and will not be used for civilian purposes. Oil prices skyrocket. Within five days, 30% of trucking comes to a halt. Many rigs are hi-jacked, looted, and burned. Grocery store shelves grow emptier by the day. Not a gun can be found for purchase, and even if one could be purchased, ammunition at Wal-Mart, the largest retailer of guns and ammunition has been sold out for weeks. Smaller stores are also without inventory.
Brazil attacks Mexico as pro-military president, Lula Da Silva, takes the Mexican military by surprise and overruns the country in less than a week. Lula Da Silva makes a brief statement after the invasion stating that Brazil was acting on behalf of the Conselho Sul-Americano de Defesa (CSD - South American Defense Council). The Brazilian military secures Mexico's oil facilities while amassing heavy artillery, air defenses, and troops along the US, Mexican border. Argentina, in turn, announces its alliance with Brazil and the existence of a jointly developed nuclear submarine.
The border between Canada and the US becomes blurred as Canada seeks to distance itself from international affairs, but soon it secures its borders to stop the massive influx of Americans fleeing the deteriorating urban areas.
With hundreds of banks closed, ATM's, automatic payments of welfare benefits, pension benefits, Social Security, and public and private payroll deposits literally dry up. The President has no choice but to declare Marshal Law. The National Guard, already out in force (in most states), is joined by the army in an effort to maintain order in the cities and outlying areas. Washington DC erupts with rioting. Within weeks, people across the country and in most regions of the world begin to run out of supplies. Electrical and gas companies, and other basic city services, begin to shut down in urban areas. Over the next few weeks, rural electrical grids also begin to fail. There are major outages of cellular phone service. Airports are jammed with people trying to flee the cities. Highways are gridlocked. Local governments try to maintain order by filling the needs of its citizens, but soon the onrush of chaos fueled by basic human needs and self-preservation takes over.
Russia fails to stave off the Chinese invasion and threatens nuclear attack. China ignores the warning. The US again tries to take the lead by organizing a meeting of the G8 to be held in the Azores. The meeting is a failure and no consensus of what should be done to bring about stability can be reached. The delegations leave the island after less than twenty four hours. There are no negotiations with China.
The US Congress is moved out of Washington DC to undisclosed safe locations around the country, and emergency defense systems and communications go into place. Air Force One does not land but remains air-born while the Speaker of the House and the Vice President's whereabouts are kept top-secret.
The US President declares that the United States will defend its sovereignty and world interests to the fullest extent. In the same speech, he makes a desperate appeal for all nations to work toward finding a solution to the cascading world disaster. Three days later, the United States shuts down public use of the Global Positioning System (GPS) and subsequently orders Cisco Corporation to prepare to enact server codes that will curtail civilian and foreign internet communications. Microsoft and Apple Corporations are similarly ordered to be ready to implement highly top secret national security codes if and when the President decides to selectively shut down computer operating systems around the world. The financial markets, having been in free fall for weeks, implode.
Russia launches a long-range ballistic missile tipped with a nuclear warhead into the Peoples Republic of China, destroying the Three Gorges Dam, in Hubei Province, subsequently releasing 22 billion cubic meters of flood water into the Yangtze River. Hundreds of thousands die.
The US military moves into tactical positions and prepares for war. Anarchy sweeps the country.
Egypt and Syria meet in Tehran, the Iranian capital. The meeting is successful. Iran will not launch its nuclear weapons at Israel. Instead Syria and Egypt will coordinate a conventional attack to remove the country of Israel from the Middle East permanently.
It is naive to suppose such events cannot happen. We pray they don't, but hopes and prayers will not be enough in this case. Immediate action is required to cut spending and reduce taxes. Please, write to your Senator. Write to your congressman. Write to the President of the United States. Get involved.
Thank you for reading.