Wall, Meet Face - The Collapse of the United States

The financial pillaging restarts again in earnest -

Stocks tumbled sharply in heavy volume Monday after Moody's said they are maintaining the U.S.'s AAA status, but the rating depends on how the budget deficit is handled in the future.

This comes after rival S&P downgraded Fannie Mae, Freddie Mac and Federal Home Loan Bank in addition to cutting U.S.'s credit rating from triple-A for the first time in history last week.

The Real Effect
A somewhat obvious statement is that 'Things will continue until they don't'. On it's face, it seems silly, as though such notions should be blindingly obvious to even the most dense of observers, however it sometimes is necessary to use such Idiocratic concepts to demonstrate that which in retrospect should have been completely obvious all along. Let's review our prediction from May 16, 2011 (I have highlighted the sheer brilliance in bold)-

What do I think will happen? Simple. I believe this is a test run designed to frighten people. They will seize "limited" funds claiming they have the legal right to do so. (Whether they do or do not.) They will drag out the 11 week Congressional process to "avoid default" all the while pretending that we are in trouble that we are not actually in. (If we do not pay our bills, then we will default. However, we could balance the budget now and not default. Borrowing more money from a Chinese populace that isn't willing to lend more just exacerbates the situation and kicks the can down the road. Throwing more logs on the fire will succeed, in burning more logs.)

Next, they will institute temporary measures and will scream of a "Crisis being averted!" and all will hail the leaders as being courageous and great political statesmen. This will avoid further issues for another time period (6 months?), but once again will only kick the can down the road. Meanwhile, this will create the public perception that if the government is allowed to seize private property, they can Fix the problem! (This technique will then be seized upon and copied ad infinitum around the country on lower levels.)

But, quietly in the background, investment firms will begin to downgrade the US debt, resulting in a climbing interest rate and depreciating dollar. That will be where the real pain lies. The result will be a panic flight out of the dollar and into other asset classes.

Whoooooa boy, DEAD ON ladies and gentlemen.  Not only did we call the situation correctly, we called the Republicans and the Democrats moves before they even thought of them!!!

You see, this stuff is scripted. Not in the fashion of absolute control over all parties involved, but in a far more practical typecast sort of way. For instance, notice that the day after our country implodes financially, the Uber-Patriotic Seal Team 6 was gunned down in a vile and dastardly attack? (Or were they?) Kind of makes you want to go out and wrap yourself in a flag doesn't it? (As thoroughly evidenced by all the Facebook statuses over the weekend). Wait, weren't we talking about something important? Like money or debts or something?

You see how easy that is? Like a magician's assistant, the alluring veneer of patriotism is waved at you to help you forget your troubles. It's quite alright, just put your trust in the magic box with the statesmen on and you will soon be calm. They've got this all figured out.

So, where do we go from here? Act II ladies and gentlemen! This is where your hard earned money, disappears!

Look for political infighting to distract the masses from the solution. Just whose fault was it anyways? This will become the political fuel as the politicians set fire to everything. Financially, the moneymakers are stuck now, if they pull support for the economy, in the form of free stuff, the economy collapses. If they don't the dollar collapses and then the economy...collapses. Of course the politicians love this latter idea, because 'It's not their fault! It's those dirty dirty !' (China, Iran and Russia, we're looking at you.)

Of course, if you expect to keep your property during these times of trial, you will be branded as unreasonable, unpatriotic, and eventually a terrorist. This is where Section 802 of the Patriot Act comes in quite handy. Oh you foolish, foolish Republicans, you thought that was for Muslims didn't you? SURPRISE.

Now, if it seems like we've danced to this tune before, it's because we have. Roughly around the mid-1930s. Except this time, we're Germany and the U.N., they get to lead.