This is the question posed in a recent Time magazine article:
What is the most likely cause today of civil unrest? Immigration. Gay Marriage. Abortion. The Results of Election Day. The Mosque at Ground Zero. Nope.
Try the Federal Reserve. November 3rd is when the Federal Reserve’s next policy committee meeting ends, and if you thought this was just another boring money meeting you would be wrong. It could be the most important meeting in Fed history, maybe. The US central bank is expected to announce its next move to boost the faltering economic recovery. To say there has been considerable debate and anxiety among Fed watchers about what the central bank should do would be an understatement. Chairman Ben Bernanke has indicated in recent speeches that the central bank plans to try to drive down already low-interest rates by buying up long-term bonds. A number of people both inside the Fed and out believe this is the wrong move. But one website seems to believe that Ben’s plan might actually lead to armed conflict. Last week, the blog, Zerohedge wrote, paraphrasing a top economic forecaster David Rosenberg, that it believed the Fed’s plan is not only moronic, but “positions US society one step closer to civil war if not worse.”
I’ve written a few pieces for Zero Hedge myself, so its nice to see that the mainstream media is has a keen eye turned to this financial blog. While the Time article goes on to say a civil war is highly unlikely, I don’t think a “civil war” is what we should be worrying about.
A civil war requires a huge difference of belief structure between two or more militaristic groups of people. This time around it’s a handful of bankers and bureaucrats raping the entire public. I don’t think a civil war is so much a concern as a direct overthrow of Washington DC by the general public.
Once the dollar goes boom, there will be mass rioting and chaos as people will not be able to afford food any longer. The entire public stands to loose in this game with the bankers and bureaucrats. I still don’t think the editors at Time magazine get it. They don’t understand what is about to happen. Of course, Time is not alone in its deluded thinking, that the government can go on forever printing money without consequences.
Eventually the market itself will put an end to the looting. And when the market decides the looting should stop, it is never a pretty picture. It is much better if the public itself stops the looting. This allows for an orderly restructuring of the debt and money supply. If the market has to do it, it means a hyper-inflationary event that completely wipes out the currency and government.