Is The U.S./West About To Collapse?

Well, in truth, we had a de facto collapse in 2008 which was addressed with $4 trillion in QE and, ultimately, a few trillion in Taxpayer subsidies. The proverbial can was kicked down the road in order to enable the insider elitists to continue looting as much wealth as possible from the system. A fractional reserve banking system will always eventually collapse. The fraction of reserves is allowed to become smaller over time and the amount of unpayable debt balloons to the point of explosion.

I would suggest that the massive debt implosion about to happen in the energy sector will be the trigger point for a collapse that can’t be prevented this time.

With that in mind, Zerohedge reposted a Reuters article which is reporting that the Italian banking system is collapsing – LINK.   What’s that got to do with the U.S. financial system, you might ask?  Derivatives.  Every single big bank in the world is interconnected through the insidiously toxic international web of OTC derivatives.

Someone will lose big on Italian credit default swaps and not be able to pay their counterparty.  The counterparty may have offloaded some of that risk and  fail to stand as a counterparty on the risk it laid off.  And so on down the line.  The banks themselves do not know the extent of true counterparty risk exposure.  Internally employees lie to risk managers.  Risk managers knowingly and unknowingly lie to the board.  The CEO then knowingly and unknowingly lies to the Fed and other Central Banks about that bank’s specific derivatives exposure.   I witnessed this first-hand in the 1990s’ when derivatives were just beginning to blossom as a wealth-extracting device for Wall Street.

I bring all this up because one of Bill Murphy’s readers sent him a letter that should, at the very least, raise the hair on the back of your neck.  I emailed Bill, with whom I communicate several times per day every day and asked him about the credibility of the person who submitted this letter:  “Well written, little drama, just input. I couldn’t make up a story like that. This is just a regular guy ho believes our story and follows you too. No reason for him to send this except to point it out. If I thought a bit bogus, I would never have run it. No reason for the girl to make that up and, of all people, one of the Koch brothers.”

So with that, here’s the letter published by LeMetropole Cafe/Bill Murphy’s Midas report:

This email from a fellow Café member will catch your attention. It is edited to keep the identity of the sender private, but the essence of what was presented is striking…

Bill,
I have been working in a chemical plant and have been there for 39 years. We have about 400 people working at the site. I can’t talk to anyone about what is going on with the financial system because nobody wants to hear any of this, they either don’t believe it or their eyes glaze over and they change the subject. I gave up trying to tell people what is coming years ago.

There is one man at the plant that knows what is going on with the worldwide financial system. He is the production superintendent for the plant, reports to only the plant manager, I have two supervisors between him and myself. Last night he called me about 8pm, which was very unusual because we normally stay in touch through email or sometimes, very seldom though, he comes to the unit I work in and we discuss what is going on at that time. His daughter works for Koch Industries in Wichita in marketing. She called him yesterday and told him they had a meeting with one of the Koch brothers giving the meeting. He came out and told his employees that we were about to go into unprecedented times. He said that their company was cash rich and they would be able to ride out the coming storm. One of her coworkers asked if we were going to have a recession or a depression. Mr. Koch answered that no we were going to have an economic collapse with a 40% devaluation of the dollar. I know you know who these Koch brothers are, with the money and inside connections they have wouldn’t you presume they have inside information.

My superintendent’s daughter told her father that Mr. Koch sounded just like him with the speech he gave, because her father has been telling his 2 daughters for years to get ready for the collapse and they have. My job allows me to read probably 11 hours a night when I work days and on weekend days. I started researching our financial system in 2008 because of what went down back then. It is totally amazing to me now that we have a system that is totally manipulated by TPTB constantly and people don’t have a clue about what is really going on. We really do live in the Matrix.
R

Time will tell if this information proves to be prophetic.  Someone asked me today if I thought a collapse was right around the corner.  I answered that, with the enormous effort being exerted by the Fed and other western Central Banks to keep the system from collapsing, there’s no way to know with any reasonable degree of accuracy.  But I said that I would be surprised if the system makes through 2016 intact.

14 thoughts on “Is The U.S./West About To Collapse?

  1. The Collapse has a theme song, aka “Get Ready” by Rare Earth
    https://www.youtube.com/watch?v=IyAwY2Q96Ps

    Stealing the world can be fun
    It doesn’t require a gun
    Just hire some guy
    To print to the sky
    Then buy all the assets and run!
    ~ @TheLimerickKing

    “The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title.”- Anonymous

    The issue which has swept down the centuries…and which will have to be fought sooner or later…is the people vs. the banks. – Lord Acton, Historian…1834 – 1902

    Cheers,
    S. Rex

  2. I am sorry to be naive, but if what he (Koch Bros) says is true, I cannot see any sense in it.
    If I expected the currency to devalue, then the last thing I would want to be is “cash rich”. I would expect that, like the Chinese, I would sock it away in overseas assets.
    The death of the Petrodollar and Bretton Woods, (thank you China, Russia, Iran) would automatically result in the devaluation of the dollar, whether gradually by the market drying up, or suddenly by USA printing money and/or going into negative interest, it is the logical consequence.
    But why is this from an economic point of view, a bad thing? USA whines and shouts when China devalues, and has been complaining for years that the dollar is overpriced compared to the Yuan. They “gloat” that the Russian ruble has lost it’s value and then find that it has allowed Russia to weather the storm of sanctions.
    What America needs is a huge bout of Protectionism to permit the American manufacturing and workforce to become competitive with the rest of the world. A 40% – 50% devaluation would provide the stimulus.
    If the Koch spokesman had said Deflation, I could understand the concern, but again, if deflation is in the future, the last thing I would want is to be “cash rich”.
    The only scenario that will create havoc for USA and the world (which you alluded to and which I foresee as a certainty, [I am psychic that way]) is the total default of debt, starting in USA and then spreading worldwide. Then it makes sense to be “cash rich” but in that event, there is so much that will go wrong, that any forecast of “we’re all right Jack” is just wishful thinking.
    Maybe someone can give a scenario where “cash rich” and “devaluation” makes sense.

    1. If you’re in the commodity space, cash doesn’t seem like a bad thing to have now. Without it Koch would be getting run over too, and maybe not make it through whatever the next stage is.
      I keep wondering if the USD will see strength until emerging markets (maybe Europe too) collapse, and then those markets swear off the USD altogether, (like Russia seems to be trying to do) causing the dollar to collapse. I guess that’s the Jim Willie scenario.
      Without cash though, Koch doesn’t make it to the other side. At least that’s my $0.02. Although, its probably better to take that $0.02 and bet on me being wrong.

  3. I just read this and called my F.C.M. and told them to wire all funds
    to my checking account. My next call will be to my P.M. dealer and
    I ‘m backing up the truck. No more fucking around.
    Thanks for posting this letter. It seems very legit.

  4. Devalue 40 per cent against what? The Kenyan pound? The Moldavian ‘testiclar’?

    At the moment, everyone else is devaluing against the US dollar, cos they are in much worse shape. And they ain’t getting better any time soon.

    That said, it’s somewhat reassuring that someone close to the centres of power knows what’s going on. They aren’t as clueless about what’s coming as their actions would indicate. Why they don’t use their knowledge to take remedial action is another question altogether.

  5. ” ….we were going to have an economic collapse with a 40% devaluation of the dollar.”

    I do a lot of reading but if we have a devaluation of the dollar I have no idea how that would be done, if done purposefully by the Fed + Government. Any ideas how that would be accomplished??

    1. This statement is curious:

      “He said that their company was cash rich and they would be able to ride out the coming storm.”

      If he knew there was an upcoming dollar devaluation, wouldn’t they have converted a significant % of that cash to gold??

    2. QE for the masses or ‘helicopter money’; more dollars chasing the same goods and services. Stop suppressing the price of gold, all other commodities will follow it up. The cost of basic materials and food will rise dramatically but your salary will not. Interest rates will go back to early 1980s levels (if not much higher) so debt will be much harder to service, let alone retire. Then we’ll find out how much gold China really has, and how little is really at Ft. Knox.

      Not glad about it but sooner is better in the long run.

  6. This is great. A comment is posted on a blog from a worker on a factory floor who is two supervisors removed from a guy who’s daughter heard from someone in marketing who just got out of a meeting with someone at Koch Industries who said the US dollar is going to be devalued by 40%, now this blog posts that comment here and commentors are “backing up the truck” based on that comment. Hilarious!

      1. Haha! Tempting … if my goal was to obliterate 20 years of savings and investing in 3-6months, that is awesome advice. Naaa … I’m quite happy on the sidelines in cash and gold, waiting patently for the historic super sale to begin, e.g., forced liquidations and distress sales.

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