1) Central Banking and banking elites lobbying engine tied into politicians (Phil Graham and Chris Dodd come to mind)and deregulation of the financial industry. Regulations are safeguards, many put into place during or after the Great Depression.
2) Massive new 'credit' issued to population whom acts on basic human impulse to 'have today, pay tomorrow'
3) While credit is being gobbled up by the public, the public is mislead by Government/Banking collusion (this will be the 4th one in U.S. history and this one is the worst, 1870's depression seemed like a similar era)
4) Government politicians and elite bankers in the know accelerate insiduous theft to more direct and open theft while the currency still retains value. Public begins catching on but the 'wrappers' and controlled media continue to mislead on the specific truth of the thefts/looting of Treasury.
5) The inept politicians napping alongside the public wake up quickly to realize they are also culpable. The conspirators of the global swindle state that massive new bailouts must occur for politically connected groups. Since there is now a legitimate massive crisis in the financial system this gets whizzed through Congress. More theft through hedge funds controlled by the same group of global elite bankers. Inflation will be rampant as we print, but focused on commodities that still must be purchased by the citizenship such as energy and food. This creates a bull market for these commodities and the hedge funds greatly magnify the effect.
Make no mistake, this process of a perverted monetary model (Central Banking/Fractional Reserve lending has the exact same outcome of huge boom and busts in every nation dating back four hundred years. We certainly learned nothing from WWI or WWII about outsourcing money supply. These global bankers are much like parasites. Before the host dies, the money is transferred to other nations where productivity is highest. In our era, we are the dying host and China is the beneficiary. They will receive the international monetary peg prize. Should we hate the Chinese people? No, they have Central Banking. They will unlikely be very poor new stewards as America was for about 50 years. That is because there society does not practice human rights. But looking beyond this next few very dangerous years, it is the monetary model of Central Banking that must change to a bottom-up system of monetary governance including money supply. Each nation should always retain it's own sovereignty and control over it's money supply until mankind has serious understanding of genetic engineering and fixing our genetic code that creates messed up, impulsive human behavior.
The middle men now enslaving the globe know they are on there last legs and will vehemently defend there useless, impulse driven model until global war in the nuclear age drives it into the ground. And it would not surprise me one bit as the world rebuilds from such a tragedy, that some of these people will come out of the woodwork again and attempt this evil model one last time.
ping
It’s important to look at the situation from a few different angles.
To start with is the international, national government, and corporate angle. Despite their incredible craftiness and willingness to promise everything to everyone, they face an insurmountable problem: just because they declare (literally) hundreds of trillions of dollars to exist, doesn’t mean they are worth anything. No gimmick can overcome this.
This means that market forces will force them back into a state of order, and all anyone can do is watch. So no real worries, here. They can be as swinish or treacherous as they want and it will change nothing.
However, from the personal point of view, America is well off. We have lots of housing, food, and police and military security. With these three things we may not be happy, but we are not collapsing either.
This gives us a big buffer to reorganize and get our economy working again.
The big obstacle is if we try to keep our enormous debt, or the bad promises of largesse that the government made to the people, that it had no authority to make in the first place. We have to accept that those are both over and done.
This means renouncing the national debt, and canceling Social Security, Medicare and Medicaid. Done cleanly, the individual States can pick up the pieces, and protect the utterly impoverished and helpless. But there has to be a recognition that the federal government should never have tried to do that, and can never do that again.
That is interesting. There's one piece you left out in your analysis which is that the U.S. is too big to fail. There will be inflation as we print and monetize debt, but enough of that inflation will be exported overseas that we won't fall into serious inflation. How will that work? The simplest scenario is that if we owe person X in country Y some money, we can just have country Y print up some of their currency and give it to person X. It's one of the privileges of being too big to fail.