The RentenDollar: A conspiracy theory OR Please tell me where I’m wrong.

Late last night I came up with my very own conspiracy theory. It seemed a little odd at the time, but as I’ve continued to think it over, I’ve not yet been able to poke any significant holes in it.  Of course, it is the kind of thing that an accountant turned science fiction author would come up with.

Basically, I’m starting to think that certain factions within our government actively want hyperinflation to occur as a surefire method of instituting de-facto communism in America…

Crazy, right? I know, you’re thinking that surely Correia has gone off the deep end and spouting off all sorts of doomsday nonsense, but hear me out first.

As many of you know, I’m a history geek.  Last year I wrote my first alternative history novel set in 1932.  Because I’m a stickler for authenticity, I did an absurd amount of research.  I read every book I could get my hands on about what is normally called the interwar period.  I mostly concentrated on American history/culture but I also learned a bit about the Weimar Republic.

The interesting factoids about the Weimar Republic that most of us remember is that it was the home of hyperinflation (remember the wheelbarrow full of money to buy a loaf of bread) and eventually it also gave us one of history’s greatest scumbags, Hitler. Other than that, most Americans don’t really know much about the Weimar Republic.

Okay, but where did the hyperinflation come from?  I’m going to greatly simplify this because A. I’m a writer and accountant, not a historian, go to Wikipedia and B. This is only for a background to draw a comparison to what we’re doing right now.

The Weimar Republic (If I recall correctly, they actually called themselves the Deutsch Reich) came about after WWI.  The German Empire had fallen apart, leadership fled, and for the next couple of years there were several battles fought between different factions of communists, socialists, and conservatives. (and when I say conservative it isn’t what it means here and now. I mean conservative back toward the empire, royalty, and all that entails).  These were not polite political discussions. These were a series of violent mini-revolts where various cities would go off and declare themselves independent, like the Soviet State of Munich.  Then a bunch of communists and the “Freikorps” would clash in the streets, then repeat a week later in a different city. It was bad.

Eventually the Weimar Republic was formed from the different groups, and immediately it had a whole new set of problems.  The Germans signed the treaty of Versailles, they gave up a bunch of territory, and even worse, then took on a massive war debt and an agreement to basically pay the allies for the biggest war in history. 

So what does a government, which is already sitting on a very damaged economy, do in order to pay this debt?  They printed more money.  Sounding familiar yet?

It got worse. As the Weimar printed more money, their government got more bloated, and ate up even more of their resources. (at one point a chancellor laid off several hundred thousand government employees to try and make ends meet).  As their money inflated and became more useless, France got tired of not getting paid, and being jerks, invaded and took over the Ruhr, which was one of the most productive regions in Germany.  This caused a drop in production, and then everybody else went on strike.

Meanwhile, the money kept inflating to levels that people couldn’t even understand.  Back during the war, the Mark was something like 4 to 1 against the dollar.  By the time they hit hyperinflation, they’d gone to millions to 1, and by the end, it was literally trillions to a single dollar.  They would print new bills, and a few days later all they were good for was note paper. This is where the stories about the wheelbarrow full of money for bread comes from.  To put this in perspective, this would be like you filling the trunk of your car with twenty dollar bills and then using all those trash bags full of money to buy some shoelaces and a tube of toothpaste.

So basically Germany was totally screwed. 

So how did they get out of it?  Contrary to what most Americans think, it wasn’t Hitler that came along and fixed Germany’s economic problems and turned them into an industrial powerhouse war machine through the sheer power of him being a complete ass.  There was actually a time period in the thirties that the Weimer knew as the Golden Years, because they’d finally gotten much of their economy back under control. 

They rebooted their currency.  If I recall correctly, their new currency was called the Rentenmark. They introduced the Rentenmark, and you could trade in your trillions of crappy marks for one of them.  It went back to 4-1 with the dollar. Now here’s the thing. You can’t just change the name and have new currency. Your currency has to actually be based on something.  (kind of like how the dollar is based on good feelings and rainbows).

They based it on land.  It was the one asset that the government could go  and take over to use as a base asset, and land is always valuable because they aren’t making any more of it. Congratulations land owners, all your dirt belongs to us, but people were so desperate (and tired of carrying buckets of silly money around) that it didn’t matter. They were desperate, and desperate times called for desperate (and sometimes stupid) measures.  Using the new asset-backed Rentenmarks, Germany was able to start paying their debts again and get on with a semblance of normalcy, well at least until they elected a bunch of lunatics in snazzy uniforms.

So why this long story?  Because it is to compare with what we’re doing ourselves.  Right now the United States is on the path to hyperinflation.  CBO is predicting that by 2020, our debt will be 90% of our GDP.  (EDIT:  As was pointed out in the comments, my information there was wrong.  We’ll hit 90% way way earlier than that, so it is even worse)  Think about that for a second. That would be like if you had a $50,000 a year job, but you owed vicious thumb-breaking loan sharks $45,000 that was still collecting interest.  Our entitlements are bankrupting us. Even before Health Control (because if you believe the government is going to spend a trillion bucks and cut the deficit, you must sleep in a helmet) we’re only a few years from all our tax dollars only being able to pay for Medicare, Social Security, and interest on our debt.  That’s it.

Now, what happens when you as an individual can’t pay your debts or pay your bills on time?  Your credit rating goes down.  And when your credit rating goes down, you can no longer get that low interest Visa-Black-Platinum-Playboy card (with Sky Miles!) you can now only get the Soup-Kitchen-Discover card at 280% interest.   Many people don’t realize it, but governments have credit ratings too.  Right now we’ve got a great one, based on ‘because we’re so awesome’.  But we’re getting really close to losing our good credit rating, (because awesome will only get you so far before you actually have to pay the bills) when that happens, all of those already really bad estimates about our future debt are going to get far worse.  How much worse?  Have you ever played Fallout 3 on the Xbox?  Kind of like that.

So while we’re on our way to Thunder Dome, the government is printing dollars like crazy, faster than ever before, with no signs of letting up.  Inflation is coming.  When the credit rating tanks and the entitlements get worse (or the oil currency switches to something else) hello, Master Blaster!  We’re in deep trouble.   We’re looking at hyperinflation.  Dollars worth nothing, burning them to keep warm would be more efficient, kind of thing.

Yet the government, that surely has some smart people in it, continues to increase our spending, increase our debt load, and do things that are the exact opposite of fiscally responsible.  It is almost as if they want the system to collapse…

Then I remember the Weimar Republic.  They had hyperinflation. How did they get out of it?  By rebooting the currency.  What was the new currency based on?  Land.  Land is an asset.

The government is gobbling up land out west like crazy.  Every time we discover a deposit of oil or coal out here, the government immediately discovers a snail or a flower on it that might be endangered and grabs a couple hundred thousand more acres.  The government is trying to kick 18,000 people out of their homes in Colorado to put in a new “tank range”. 

But that wouldn’t be enough.   Think beyond land. Think assets.

Fanny May and Freddy Mac now hold something like 50% of the mortgages in the US.  The government has recently either directly taken over, or regulated the living crap out of our auto industry, insurance industry, banking and finance industry, and now health care…

The people of the Weimar were so desperate, that they would do anything to get out of their economic crisis.

Let’s imagine a hypothetical situation here.  Let’s say that in a decade or so, our currency has collapsed.  We owe far more than we produce.  Companies are failing.  Because all of our tax dollars are used just to pay for our debt, taxes have to be raised, which causes even more unemployment and decreased production.  Entitlements can’t be met.  The current economic crisis looks awesome in comparison, but there is no possible way out, because our money is now worthless.

So… Reboot the currency.  Make a new RentenDollar. 

The media can even point out what a fantastic idea this is because historically, it has worked before!  The politicians will tell us that this is the only way and we must act quickly!  People are desperate and will be told that “the private system has failed! Only government intervention can save us now!”  (gee, why does that sound soooo familiar?)

Sure, they caused the problem, but that isn’t what most people will think, but as they’ve shown, they don’t really care what we think anyway.  They will not let a good crisis go to waste.  There is only one teensy downside to this reboot though…

See, the RentenDollar can’t be based on good feelings like the old dollar, it must be based on ASSETS.  And since the capitalist system has failed, and the government has already got its fingers in all these various companies, instead of just regulating these companies, why shouldn’t the government just own them? 

All those mortgages? They now belong to the government.  Banks? Belong to the government. Industrial production? Government. Medical. Government.   They’re assets, and they’re necessary to back our new currency.

You don’t like it?  People are starving. There are riots in the streets. Cities are burning.  We have to act now! Won’t somebody think of the children!  There’s no time to read this 9,000 page bill! HURRY!

…And just like that, America has become a communist country.  State control and ownership of everything.

So, let’s poke some holes in my late night theory.  Please, somebody tell me how this is impossible.  Maybe we’re not heading for an economic collapse.  Maybe we’re not going to have hyperinflation. If anybody has any evidence of that, I’d love to hear it, because this is kind of depressing.

Or, the other way that this idea could be silly and implausible is if there was no possible way that elements within our government would want to exercise total control over our lives… Yeah… that’s just absurd. 

Ask yourself this one question. Do you believe that our current federal government, if presented with the opportunity, would take over and control everything?  Yes or No. 

Help me out here, guys. I’m not getting any warm feelings from this.

70 Responses

  1. The answer to your question is self-evident.

    This is why the MHI Training Manual needs to be published soon. Obviously, them Congresscritters aren’t human.

  2. It’s a morning of conspiracy theories, Jay G had something about gun laws.

    My comment over there will be repeated here word for word:

    “I think I’ve said this before, but I’ll say it again here. I didn’t used to put much into conspiracy theories: you know, the “THEY”RE ALL OUT TO GET US!” things. I thought that it was more everyone blundering in the wrong direction, little by little.

    The longer I follow the news, the more suspicious I become.”

  3. They’ve already openly discussed “converting” 401(k)s into fixed annuities (translation: seize your funds and give you fed IOUs). There is even a request for comment from the feds as to the best option for “removing” market risk from retirement funds. So, seizing assets is already on the table.

    Is it really a conspiracy if they are open and obvious about their ambitions?

  4. Larry I think you give them too much credit to be perfectly honest. I think their intentions stem from a belief that it will work…this time. I don’t think any of the Marxists/socialists/communists/fascists that managed to get themselves elected could manage to put together something that would take as much planning as the plan you lay out in your post. Will their belief that it will work this time land us in the same place as if they planned to ruin the economy in the manner you describe? You bet it will but the main difference is that the intelligence level necessary to concoct the scheme as described would be beyond the scope of these true believers we have running the show. The end result isn’t any different but I think attributing intelligence to them does a disservice in that it could lead people to try and actually reason with them and that would be a waste of time. The current crop of powers that be are driving us into economic failure because they are true believers and a true believer cannot be reasoned with.

    Ok I am rambling a bit at this point but I think my point boils down to a single item: It doesn’t matter one way or the other if they planned this or are just so stupid they can’t see it happening. They are true believers and unless we rise up, vote them out of office, and vote in people who will repeal this insane crap we will eventually have to rise up in other ways. This can still be fixed but it’s getting closed and closer and to a point where we won’t be able to do so. Conspiracy or not something must be done in November.

    Ok maybe I didn’t have a point after all…

  5. Your scaring me Larry, but if you wrote this into a novel, it would be a bestseller. I personally would use a credit card to buy it.

  6. Is this plan (under your conspiracy theory) derailable by defaulting on entitlements? Our debts to the Chinese are debts. Entitlements aren’t “debts”, per se, as far as I’m aware, since they’re basically backed by the good will of Congress.

    So, not that I expect it to happen, but it’s possible we could fix this by electing a congress willing to kick the entitlement recipients in the teeth, que no?

    —-

    So, I can’t tell you it’s impossible, but I’m not sure I believe that the government is competent enough to manage something like this on purpose. Which isn’t to say it won’t happen on accident.

    I think a large portion of the country will insist that the feds sell of some of the what, 25% of the country they own, first, before nationalising people’s houses. I’m a lot more attached to [address redacted] than I am to the Grand Canyon, gnomesane?

  7. The only solace I can offer is that anything government does it’s going to do badly and that includes conspiring to impose communism.

  8. They’re not out to get us. The way out is easy, turn your life over to the Obamsia and his policies. Just have your pay check direct deposited into the federal treasury and they will decide how much you need to live and provide it for you.

    Quit thinking so much. You’re beginning to sound like one of those anti government freaks that think the government is out to get them. The government isn’t out to GET you, they’re out to SAVE you. The sooner you realize that the better you will be comrade.

  9. The United States GDP is $14.45 trillion.

    The National Debt is currently $12.69 trillion, or 87.8% of GDP. When President Obama took office January 20, 2009, the debt was $10.62 trillion, meaning that Obama’s administration has borrowed $2.06 trillion in 14 months.

    At that rate, the National Debt will be 90% of GDP by the end of July 2010. By March 2011, the Debt will be 100% of GDP.

  10. Larry, I’ve been talking about that theory for a while now, so you’re far from the first to consider it.

    The Dems aren’t stupid. They are frighteningly intelligent. They know what they want and how to achieve it.

    We call them stupid because snubbing our enemies is the Way It’s Always Been Done. But it simply isn’t so.

    “but I’m not sure I believe that the government is competent enough to manage something like this on purpose”

    When the people in charge get behind a horrible idea, it happens. The government is largely incompetent, but if the leaders want something to happen bad enough, they get it.

  11. Whenever I get down thinking about how the government either through malice or incompetence is trying to put the screws to me I go to my happy place and sing a little ditty.

    My apologies to Lesley Gore… actually she should probably apologize to the world for having written this song.

    “My life is sunshine, lollipops and rainbows,
    That’s how this refrain goes, so come on, join in everybody!

    Sunshine, lollipops and rainbows,
    Everything that’s governmental is sure to come your way
    ‘Cause we love Marx, Carl Marx,
    And Marxism is here to stay!
    Comrades!”

  12. It makes sense, and I must confess that, as you do, I have hard time poking any significant holes in it.

    But as Sid points out, attributing this to intelligence isn’t really correct I think. This is the work of true believers.

    Seriously, maybe you should write a novel along these lines. Something like Unintended Consequences but… a) with a very unhappy ending; and b) NOT softcore pornographic.

    People would read it. More importantly, I think people would listen to it.

  13. Sorry Larry but this can’t be considered a Conspiracy Theory. For something to be considered a Conspiracy Theory it has to have at least an element of unbelievability. This seems frighteningly far too realistic to me.

  14. Much as I wish I could help you, I think you’re an optimist on this one.

  15. I agree with you Larry.
    If you look at the national energy policy; lock everything up, develop nothing, impose increasing tax to save he environment.
    Russia and china can drill in the Gulf of Mexico, we can’t.
    That is just the tip of their spear in the heart pf America.

  16. Re: “Right now the United States is on the path to hyperinflation.

    How low could the stated value of “Federal” Reserve notes become, with respect to copper and nickel, before the 1946-2010 nickels, composed of 75% copper and 25% nickel, completely disappear from circulation?

    According to the “United States Circulating Coinage Intrinsic Value Table” available at Coinflation.com, the March 29th metal value of these nickels is “$0.0588943″ or 117.78% of face value.

    • Yeah, but it is currently illegal to melt down nickels or pennies (esp. the pre-’82 pennies that have copper worth over $0.02 each).

      Imagine that, your own property and you can’t even melt it down. You could be on a cruise ship in the middle of the ocean and thrown a penny overboard – that’s legal – but you can’t melt it down. That’d cost you $10,000.

      • Why would anyone want to melt nickels or pennies? People can be reasonably confident of the metal content of unmelted pennies and unmelted nickels. There is not the same level of confidence of the metal content of a blob of metal from a stranger.

        Many unmelted coins made mainly, or purely, of copper, silver, or nickel have a higher market value than the intrinsic value of the metal contained in the coin.

        Any laws against melting or exporting nickels or pennies is not going to stop some people from storing and holding relatively large amounts of nickels or pennies.

  17. The formula that Larry explains has been applied recently in Venezuela. New Currency government takeover (and sometimes by force) of private industries, expanded Nationalized Health Care, Nationalized food production has created such hyperinflation, poverty, unemployment (35% or more) and crime that the the people are escaping the country and moving to Zimbabwe.
    And of course, with the new hyper elevated crime rates (95% of all murders go unresolved, 60% don’t bother report crimes of any nature other than murders), the solution has been new Gun Laws and less basic rights. By the way, you cannot criticize the Anointed Hugo or any other public official, you go to jail for that.

  18. Conspiracy? Of course it’s a conspiracy. Not an Illuminati-rules-all-from-a-secret-base-under-the-sea-in-Atlantis type conspiracy, but just a regular old conspiracy. That’s how democracies (we may be a Republic, but that’s just a delegated form of democracy) work. By conspiracy. Since one man literally can’t take the initiative without running into roadblocks, the only way things get done is to have as many people as possible (in our case, as many people as possible that are within the government/bureaucracy) collaborate to get it done. And to get as many people as you can on board, you have to hold out the carrot, give them an incentive. This is the seed that grows into the thorny, poisonous tree of communism/socialism/Leftism/whateverism. This phenomenon is synonymous with conspiracy. But it doesn’t mean that there’s some secret evil dictator that controls everything behind the scenes, of course. No, this monster is directed only by the banal instinct of the collective incentives of its members, who are more than likely not actually evil. Perhaps not even misguided!

    The United States isn’t turning into the Soviet Union. The United States has BEEN the Soviet Union at least since the Roosevelt (II) administration, just a significantly more bearable form of the same animal. .01 molar HCl versus .5 molar HCl, but still HCl.

  19. Wow, scary stuff. 5 years ago I’d have never thought that something like this would have been possible… but now? It doesn’t sound like as much of an impossibility any more.

  20. Watch the Video:

    http://apathetic-usa.com/

  21. I did NOT need to read this after consulting Sitemeter and discovering that, ever since I posted a list of the demoncrats who voted for health Care Deform, labeling them villains, I have been getting a steady stream of hits from http://www.houseofrepresentatives.gov...

  22. Sadly, I reached a similar conclusion about a month ago, but said it much less articulately.

    If it makes you feel any better, the countries that hold trillions of dollars in our dollar-denominated debt will invade us long before the hyperinflation sets in…

  23. whether through hyper inflation as you suggest or violence as I suggest. It’s a takeover and power grab. I think the ladie who told me to stop listening to people who wear tinfoil hats will be singing a different tune in about ……18mos. Give or take a few months.

  24. My reading of history, especally the history of the late 19th & early 20th centrury is this:

    Convoluted government conspiracies never attain the inteded results.

    The last thing the Wiemer Republic wanted was the Third Reich and WW2.

    Or, when the old German Empire sent Lenin back to Russia.

    Or when Bismark played his cute little political tricks in forming the German Empire

    Or so on and so forth. If Obama and Co are trying to fundamentaly change the nature of the USA by tearing it down, they are not going to get anything close to the desired result. But they’re dumb enough (in that special way only the truly brilliant are dumb) to try it anyway.

  25. I tend to agree with Nathaniel above. We have been living in a de-facto communist society since the second Roosevelt., just one without most of the more overt trappings and odious behaviors.

    The best explanation I’ve found of what we are likely experiencing comes from the book:

    The Sovereign Individual: Mastering the Transition to the Information Age

    Wherein it talks about how governments will attempt to take an ever increasing role in our lives even as they are weakening. (And I get nothing at all for suggesting this book, I just found it mostly compelling, if a bit early on it’s timeline)

  26. I don’t think they are that well organized Larry.

    These people consider government to be the solution for all ills … so government control and mismanagement is the route they will go down.

    Marxist countries ( that have been at it for a whiler, like the old Soviet Union, Cuba and China ) do this as well … they debase the currency the proles use until it’s monopoly money, and set up a second stable currency so that the party elite can buy luxuries and weapons from abroad.

    There is nothing new about this. this is exactly what marxists do once they grab the wheel.

  27. I can’t say I disagree…It sounds plausible.

    One thing though: If inflation hits that high, we won’t have to worry about turning the dollar land-based….Inflation hits that level, we’re going to implode…..Literally.

  28. Larry,

    While I can see the coasts drinking Marxist absynthe, I seriously doubt much of the interior would allow itself to be led by the nose into a full-on Socialist state, complete with total state control over property, a planned economy, etc. I think before we ever get to that point, the interior will simply put out its hand and say, enough. Some brave governors — backed of course by brave National Guard Generals, who place those governors before the President, in terms of chain-of-command — will stand up and tell the would-be politburo in D.C. to go f*** themselves. To paraphrase the Spartans: you want our assets? Come and get them!

    I picture a few intrepid secessionists thieving the original copies of the Declaration of Independence and the Constitution from Foggy Bottom, then high-tailing it for fly-over country. With the actual founding documents securely in hand, the secession is under way. And unlike last time, I don’t see the “union” doing a whole heck of a lot to stop it. Everyone wishing to remain in the “union” would be the very same people totally and absolutely averse to armed conflict. They’re also the same people who want to rid guns from private ownership.

    A clawless, toothless, fat, bloated bear can’t do much more than growl and look scary, before sitting its overgrown butt down in the mud and sighing with resignation.

    The Union of Lincoln’s era could only re-forge the breach with the Confederacy through force of arms. Back then, Union was seen as an absolute moral cause, coupled with abolition. What absolute moral cause would there be for the coasts and the Great Lakes regions to “take back” the interior? Especially since most people in the “union” at that point would be of the weak-wristed secular type anyway? People with absolutely no stomach for a fight, even if the politburo in D.C. is demanding it.

    Yes, the interior would struggle without access to blue water ports. But there is always Texas and the South. And whatever avenues open up through Mexico and Canada. And it’s always possible that one or more of the coastal states retains its sanity, and then we’ve got blue water capacity on several fronts.

    Naw. The coasts and the would-be politburo couldn’t do much more than make a big noise, followed by the bulk of their military force openly siding with the “rebellion.” Whoops!

  29. Just a thought, for those that think there can’t be groups within the government with these kind of machinations in the works. Remember the Patriot Act was written well in advance to 9/11 and the attack was just used as an excuse to justify the consideration.

    Somewhere someone has written this kind of garbage waiting for the right time to suggest it to the motivated politic to promote it.

  30. So, here I sit enjoying a WONDERFUL local micro-brewed double black lager, and I says to myself, “Self, why don’t we hop over to Correias blog and see what he’s up to.”

    Uh, thanks, my beer now tastes like shit, AND I’m no longer smiling.

  31. Mr. Correia, you are under arrest for conspiracy against the government.

    Sir, don’t get shocked if this happens to you.

    I love your book, btw.

  32. Ben – not sure who you are brother, but I assume your probably from Utah. In which case thats your first problem, your drinking a micro brew FROM UTAH! ;)

  33. I read a not-so-short story called “The Day The Dollar Died” from a fellow called John Galt FLA. It read a lot like what you are describing.

  34. It’s interesting. It does explain a lot of the reasons why these monetary policies are being pushed. Also thanks for some logical reasons and hard facts, it adds a lot of credibility.

    As far as solutions, somehow people need to be educated about the realities of life, not the ideals that get marketed to people, by, well marketers and ad-men.

    More Politicians need to have the guts to spread this word around, but with facts and reasoning, not soundbytes and hyperbole. It’s how I felt about your concealed permit class, very factual and well reasoned.

    I think I’ll link this to facebook.

  35. Laryy,what we have is a corporatocracy,one party,two marketing departments.The Government actually is 90% of the mortgage market,not 50%.If anyone here is interested in some good analysis of the current crisis I recommend 3 sites,Calculated Risk,Naked Capitalism and Maxed out Mama.Yves Smith’s book “Econned” is probably the best current overview of how we got here.And as far as Obama,I dislike the man and his policies intensely,but many of them are simply continuations of Bush2;s policies,”Military Commissions Act” or “Patriot Act”anyone? Governments are always the enemy of freedom.

  36. It’s spelled Fannie Mae & Freddie Mac.

  37. Nathaniel is correct….we’re already ruled by Marx. Taxes are taken at gunpoint from productive members of society and given to politically favored classes by the Party Members (repubs and dems).

    My friends from China remark “the only difference between China and here is the Chinese communists use violence.” The violence will inevitably arrive here because it is a useful tool for communists to mold society, through contrived food shortages and social unrest caused by the slow motion bailout of the bankrupt states.

    Watch and see what happens in California when a few million welfare checks bounce for a month or two. Obama will use that as the pretext to eliminate the states via centralized Federal fiat and that’s when the music will stop.

  38. Absolutely, the Radical Marxists in D.C. KNOW how to do this, and everything they do and say that will “help” us, I look (and usually find) a dark scheme.

    They are NOT our friends. I am glad I am old. America WILL go through decades of very dark times, and in addition, we are fighting the FIFTH CRUSADE – against the Islamic Radicals. This Crusade is occuring in every Westernized Country, and is coming to America (operatives are already HERE).

  39. Yes, it is on purpose, and it’s worse than you present.

    When you add the social insurance liabilities (before Obamacare), the government would have to collect over $400,000 per worker per year just to keep from getting further in the hole.

    I’ve documented the situation and the sources at http://www.thejohnzone.com

    If you check out the Lindsey Williams tab and view the January videos, you’ll discover what the agenda is.

    It’s not a pretty picture. Combine this with the situation with Iran and North Korea. Read the executive report at http://www.empcommission.org

    I encourage you to start preparing now.

  40. I have thought for a very long time (well over thirty years) that the socialists within America have intended to change our country into a socialist state, however, the American people have resisted and refused to change something that isn’t broken. Go figure. So the socialists have set their twisted minds to ‘breaking’ all that is good in America so that the economy will fail. When America’s currency and economy finally do come tumbling down, they will claim, as they have already done, that capitalism was tried and has failed, so it’s now time to try something new (read socialism/communism/Progressive-ism).

    In the early 1950s, the American Socialist Party was disbanded by it’s leader, claiming that the American people would never elect an out right socialist, however, the Democratic Party had adopted all the socialist tenants and would carry on the revolution as progressives rather than socialists. Hmmm … didn’t Obama say numerous times that he was proud to be a ‘progressive’?

    Finances are the lifeblood of freedom and independence, believe it or not. The more financially sound a person is, the less they are willing to allow anyone else tell them how to think or vote or how to live their lives. That’s true of an individual and a country. America has been independent all these many years because she was financially independent of other countries. Personal freedom is directly related to one’s financial position in life. So what are ‘despots in waiting’ to do with such intransigent financially independent people? Simply put, destroy financial independence by whatever means necessary.

    That is precisely what I have seen happening throughout my life by the morally bankrupt political leaders of the country. We are in the ‘end-game’ now, and it’s not going to be pretty, either to stop it or ride it out to it’s conclusion. Indeed, nasty business.

    Like Lenin said (words to the effect); “We will use the democratic vote to gain power, but when we control the guns we will reconsider our methods.” Being translated into the present; now that Obama and the Democrat power brokers that put him into power have total control over the US military, CIA, FBI and all the rest, they will no longer be the anti-violence crowd. That was merely a ‘means to an end’. Interestingly, Lenin was variously credited with the saying; “America will fall as a ripe fruit into the hands of world socialism.” Kind of eerie huh?

    “Obama learned his lesson well. I am proud to see that my father’s model for organizing is being applied successfully beyond local community organizing to affect the Democratic campaign in 2008. It is a fine tribute to Saul Alinsky as we approach his 100th birthday.” –Letter from L. DAVID ALINSKY, son of Neo-Marxist Saul Alinsky. http://www.crossroad.to/Quotes/communism/alinsky.htm

    As Barack Obama’s beloved Saul Alinsky said over and over again; ‘The issue is not the issue. The issue is the revolution.’ Environment? Woman’s rights? Abortion? Black’s rights? Homosexuality? Global Warming? Save mother earth? Health Care? Etc. etc. etc. Wake up suckers! It’s the revolution stupid! You’ve been used … and now you are going to be abused. We all are.

    If you want to know anything about Uncle Saul Alinsky and his dubious but effective methods of Community Organizing, just ask Hillary Clinton who did her senior thesis at Wellesley College on Alinsky’s book, Rule for Radicals, and his life’s work. Great group of folks we have in government at present … don’t you think? By the way. Alinsky paid homage to Lucifer in his book Rules for Radicals as being the first radical. Charming … Any question about the source of the evil at work?

    In summary, I agree with the article’s thrust and I refuse to underestimate the evil that is at work in all it’s forms as some seemingly want to do at their own peril. All it takes is for one intelligent person with evil intent to write a plan (book) that other less intelligent people can pick up and destroy a once great nation. Does Karl Marx ring a bell? How about Saul Alinsky? Does the current generation of Americans have what it takes to repel the ‘corruption within the country’? Only time and future history will tell …

  41. The one question on the latest census that puzzled me was the (paraphrasing here) “Do you own your home outright, have a mortgage, or rent” question. Why on earth would they want to know if I have a mortgage or not? Well, now I think I have an inkling of why.

    If you were a rich, American gov’t power-that-be, and you wanted to make sure that you took over the land assets of the country, while still retaining *your* assets (remember: nothing applies to them–they are exempt), you write a take-over law that reads something like, “Any outstanding mortgages, secured by real property, in effect after such-and-such a date, are hereby under Gov’t control”. And then the PTB goons just raid the piggy bank, pay off their own mortgages before said date, and Voila! Riot-free takeover of (best-ass guess) 96% of American land. (Because, seriously, what average Joe out there has $100K+ sitting around to pay off their mortgage with?) The gov’t gets what’s yours and keeps what’s theirs. And best of all, once that happens, if you speak out against the gov’t, they just call in your mortgage, and you end up on the street. Brilliant.

    Dang good thing I own my little piece of paradise free and clear.

    • You think you own your piece of paradise? You rent it. Don’t believe me? Try not paying your rent (property taxes), and big brother will take it from you and sell it to someone else who pays the rent. Enjoy!

  42. [...] Four readers sent me this blog piece: The RentenDollar: A conspiracy theory OR Please tell me where I’m wrong [...]

  43. Very interesting, especially in light of the fact that Obama is suddenly all for drilling off the coasts…

    http://apnews.myway.com/article/20100331/D9EPI2PG0.html

  44. On one hand I like to agree with several previous comments that you’re giving the govt too much credit. How can they appear (and actually be) so inept on the surface but be so ingenious underneath to plot this? Elected officials couldn’t be behind it because their terms of office limit the chances that they’d be the ones to benefit. So who is pulling the strings if you’re right?

    But this is kind of a “head in the sand” defense and I know it. I can’t just say something so terrible can’t exist so it doesn’t.

    So on the other hand, I don’t have a basement full of ammo and food because I worry about a tsunami forming on the farmer’s pond next door.

    We’re living in the decline of our civilization. the 20th century was ours, the 19th was england’s, the 18th france’s and so on. As “global” as civilization is today, America won’t ever cease to exist but our time as top dog is now borrowed time. If there is another “beacon on a hill” somewhere else in the world, I suggest you move your family there for the benefit of your own future generations. But frankly, we may be coming up on a time period where there is no fair government on the earth.

    I have no idea what form of government the USA is turning into. I don’t think anyone can accurately predict that. But I can predict that it won’t be as good as what we used to have. Maybe we’ll get lucky and a few states will secede and some of us can get to those areas before the borders are shut down.

  45. It doesn’t matter if you believe that it is a conspiracy or that these people really believe what they are doing is right. Is there any way to stop them?

  46. I took a “History of the Holocaust” course last semester and it is scary how quickly our country is changing. The difference is that this is a liberal-communist take over of our country.

    I believe that this has been a long plan. Public schools have been used for decades to slowly indoctrinate most of our children to the liberal agenda. Kids struggle in math and science, but they can sure tell you about global warming. As a brief aside, I had to chuckle when in church last week there were a few members in a small group who did not want to rock the boat concerning a civil awareness ministry. I knew then how bad our efforts to be PC had become.

    What is missing for America right now is one voice. Republicans are not that voice. When a true leader stands up and is able to unite and harness the seething mass of frustrated Americans, then we will regain America.

  47. I concur with your theory. It’s Not a conspiracy when the current events and facts are now in play to ensure a US dollar hyperinflation and as a result, we will result in losing our AAA credit standing. We cannot and will NOT be able to make our country debt payments without “printing” more Rentenmarks to pay our debtors with.
    They (the debtors), will demand payment in hard assets, just as you predict.

    Wake UP AMERICA!
    We’re selling and bartering off the land that our Forefather’s fought with their LIVES for us to have our Liberty and Freedom.

  48. I couldn’t say that there is such a specific conspiracy as you describe. But I think Obama’s actions are purposefull.

    He (and the other statist crooks) want to spend as much money as possible, some because thats how they buy votes, others, such as Obama, because they want to “redistribute” the wealth from those who create it to those who don’t, and perhaps some because they have a goal such as yours in mind.

    Then, at least for the first 2 types, the cry will be “raise taxes” to “balance the budget” (while they ignore that the budget wouldn’t be out of balance except for the wastefull spending) in order to bring about a permanent European style welfare state.

    Unfortunately, the first 2 types are usefull idiots for the 3rd, who is (whether he has your specific consipiracy in mind) determined to destroy America one way or the other.

    So far it looks like they are all winning.

  49. I don’t think that this is a question of “If” anymore. I feel like this is a question of “When”. The lines are becoming more and more defined. A year ago I never would have even considered that America is not a constant. That is my mistake. When you’re young you think you’re invincible. I felt like America was invincible.

  50. When thieves and thugs are in charge, they are liable to steal anything that they think that they can get away with.

    Land and most other assets, especially if it is still in the land, makes a poor quality money and therefore a poor base for money. See an article on the assignat, which was a land-based currency, at http://tcallenco.blogspot.com/2009/09/assignat-nearly-perfect-money.html

  51. The answer to your question is yes the government would and further thay have been actively pursuing that goal. NAFTA, GATT, and CAFTA exported our manufacturing jobs so we make nothing here. What is coming is something never seen in history. First there will be deflation in the form of a devaluing currency followed by a great inflation in the form of the cost of food, gas, and consumer goods. These twin catastrophes will eventually result in spot shortages that will cause people to demand relief from a government that created the mess. We will not get a new currency , but rather a national money card / ID card. You will have no money, you will not be able to work, and you will be unable to survive in society without this card. This may also be short lived as I believe the real intent is to get everyone chipped. It is in the just passed Health Care Law. Look it up.

  52. Google the following items then tell me if your conspiracy is far off? kyoto agreement,agenda 21 look at chapter 40. We are well on our way.

  53. I have to agree with what some other posters said…if we have hyperinflation, it’s going to be a result of self-delusion and incompetence, not a deliberate conspiracy. That pretty much describes the Weimar Republic too. Not sure if you’ve read this, but it is a great history of hyperinflation in 1920s Germany…

    http://mises.org/resources/4016

    The Germans basically convinced themselves that there simply wasn’t enough money to go around, so they needed to print more in order for people could effectively carry out commerce. They never made the connection than printing more money simply debased its value, requiring ever larger sums of printed dollars.

    Moreover, the German government essentially collapsed as a result of the hyperinflation. The same thing would happen to happen to our government. If our government caused hyperinflation, the current government would collapse, i.e. the people in power would lose that power.

    I think that’s the biggest hole in your “conspiracy” theory: hyperinflation would not cause the government to gain control over our lives but rather lose control. They have the power of the printing press right now. If the product of that printing press — the US dollar — becomes literally worth the paper its printed on, then they would lose most of their power along with it.

  54. It sounds like Pharaoh in Egypt after Joseph saves up the food for seven years. By the time the famine ends Pharaoh has traded all possessions and land for basic sustenance. Obama is looking like he might get to be Pharaoh yet, but who gets to be the Hebrews? Who will be our Moses?

  55. Wow wow wow.
    This is what infowars.com and alex jones has been saying for 15 years!!! Finally!!! It’s so obvious, I look around like you can’t be serious. I’m very young, I know that our current system cannot survive another 10 or 20 years. The new dollar idea will ensure smooth transiton. I feel like the gov’t has this trick up their sleeves. Not too much chaos but just enough. Good article, great article!!! Tin foil hats unite!

  56. I need to respond to something I read alot.
    Our “leaders” being too stupid to pull this off… Our leaders congress president etc are run by an outside group. Look at the cfr and world bank and other orgs. They are the true power brokers. If you think the congress is too dumb to pull this off, you will never vote them out. But how will you ever know? It’s obvious that Obama himsel didn’t write healthcare or plan the bailouts much like George bush didn’t plan to invade Iraq. It was a bunch of very educated and dedicated people behind the scenes while bush and repubs were like priase god let’s kill these terrorists. It’s a sideshow.

  57. I got two words and one nut for you: Glenn Beck. He’s been saying this for the past year and I’m afraid he’s getting more and more right as time progresses.

    Run for the hills! The end is nigh!

  58. Classic application of the Cloward Piven strategy.

    http://en.wikipedia.org/wiki/Cloward%E2%80%93Piven_strategy

  59. As far as poking a hole in this theory is concerned, you might consider the minor point that the government isn’t actually printing money. The recent government excesses have been funded by borrowing money.

    Oh, there’s also a slight factual problem with your analysis of the level of debt– it’s really no big deal for an individual (or a government) to carry debt far in excess of annual income. Every mortgage loan works this way.

    The thing is, y’see, as long as a person (or a country) can generate an operating profit– that is, produce more than it consumes– it can use the profits to repay loans.

    The US economy, when it’s operating well, is fantastically profitable. The government can tax away a cut of these profits to establish budget surpluses, and use the surpluses to repay previous debts.

    This process is the real foundation of economic stability, and the basis of our government’s borrowing power– not land, and not personal corporate assets.

    If you want to know when something is going wrong, look to the nation’s overall productivity and corporate profitability. Sustained declines in GDP and profitability (that is, a “depression”) would mean that our economic foundation is getting shaky. If the economy weakens enough, it would become impractical for the government to borrow money from foreign investors.

    At that point, the government may potentially start to think about artificially inflating the money supply, but we’re nowhere near that point. Getting there would take a true economic catastrophe, something much worse than the mortgage meltdown, more like the effect of World War I on the German economy. Short of that, such a radical change in policy is years away. There’s no way it could happen quietly, anyway, so it’ll never qualify as a “conspiracy.”

    I hope it’s clear now that macroeconomics have nothing to do with accountancy.

  60. @Peter:

    Except when the government borrows money, the amount that it borrows adds to the M3 money supply. This increases the amount of money in circulation, thus creating money out of thin air. The problem is that since government borrowing has gotten out of hand, they no longer report the M3 numbers. M2 is the best you can do, which interestingly enough doesn’t include large government bonds. M3 supply is just an estimate.

    It is a big deal for a government to carry a debt as large as the one we have. Our debt is currently more than the sum total of all the M2 money supply. The M2 supply is about $8.5 trillion. No country has EVER rebounded after the debt hit more than 100% of GDP.

    The reason that you can borrow more than your annual income when you buy a home is that you are securing that loan with something that has tangible value- the home itself. In the case of the FedGov, it is secured by nothing but the “full faith and credit” of the FedGov.

    Once that “faith and credit” is shaken, it will get more and more difficult to get loans, meaning interest on the debt will rise. Eventually, the system collapses. We are paying the Visa using the Mastercard. The FedGov already borrows nearly as much each year as it takes in in taxes. (We took in $2.1 trillion last fiscal year, and borrowed $1.8 trillion. This year, we are taking in less, and spending more)

    This means that to get a handle on the debt, we will have to cut spending by 50% just to balance the budget. If we disband the entire military, and cut out all other discretionary spending, we have only cut the budget by $1.2 trillion. The Social security, medicaid, medicare, and other mandatory spending is still $2.3 trillion. Since cutting out the ENTIRE military is impossible, that means tax cuts and spending cuts to medicare, et al are coming. Except no politician who wants to keep his job can even mention cutting old folk’s funding.

    This is so very not fixable. To balance the budget, either spending needs to be cut on ALL spending (including so called entitlements) by 45%, or taxes must rise by 167%. No way that will happen. This economy and government WILL collapse, it is a mathematical certainty.

    The GDP (in 2005 dollars) was $12.987 Trillion in 2009
    2008, it was $13.31 t
    2007, it was $13.26 t
    2006, it was 12.97 t
    So our GDP is already at the 2006 level.

    Source: Bea.gov

  61. I highly recommend reading Adam Ferguson’s book, “When Money Dies; The nightmare of the Weimar collapse”.

    The history of the Weimar Republic is considerably more complex and, in light of current events, this book scares me more than Larry’s books. :-)

  62. …. We’re screwed, time to start laying in bricks of ammo… and land, earth movers, and all steel shipping containers….

  63. Larry,

    Please read this post and then click the “Learn About The Operation SERF Trilogy”:

    http://gardenserf.wordpress.com/2011/03/27/the-years-of-crisis-and-real-blood-in-the-streets/

    Feel free to email me. Thanks.

  64. This is a flawed argument because it requires the people who are marxist/socialist/liberal/democrat/whatever to acknowledge that their way of thinking does not work, as well as openly acknowledging at least to themselves that they are some sort of Bondian super-villain intent on world domination.

    They want their policies because they think their policies will work. Just because they want something horrific doesn’t mean they are either unintelligent or evil. They are just wrong. It can be hard to understand that people can look at the same set of facts and come to different conclusions.

    Imagine there is a string of violent home invasions in the neighborhood. You might think “Cops are useless at protecting me, I need a big dog and more gun training.” Your neighbor might think “We need to give more money to the cops so they can protect us!”

    If you saw his refusal to prepare himself, would you conclude that he is a part of the home invasion gang trying to persuade you all to be easy targets?

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