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Money doesn’t exist – as we explain in Splitting Pennies.  Money is an idea, an abstraction – a belief system.  A dogma.  So is a country.  In fact, a country IS a currency.  EU nations have given up their sovereignty to join the Euro (and we see how well that’s working out for them).

Brexit made a lot of money for FX traders, but planted a seed in the masses that change is possible (we’ll see, if the British government actually goes through with Brexit..)  Countries are born, and die.  As far as countries go, the United States of America (USA) is actually one of the world’s oldest countries.  Actually there’s only a small handful of older countries, such as San Marino (1600), Vatican City (1274), and the United Kingdom (1707).  USA changed the global political landscape in many ways, especially during the 20th century – not only directly (through invasive foreign policy) but by example.  USA was one of the first ‘superstates’ – now such superstates are common (the EU being one).  USA was the first country to detach from cultural or ethnic identity, Americans were a mix of Europeans and others.  So, what has USA become – does Television define what USA is?  No, it’s just a powerful control mechanism.  Millions of Americans don’t watch TV.  In fact, for the majority of residents in USA, they are completely oblivious to how the other 99% live.  Not everyone lives in Midtown and works for a prop shop.  Not everyone lives in the burbs.  But if you do – it seems that – this is America!  We define the outside world by what we see inside our own.  Which is a big mistake, but at least we have freedom to do it (so they tell us).

Through the evolution of the global system, USA became a big business, a big corporation.  America, Inc. is the largest employer in the world.  What the US government actually does is a mystery to many analysts in the world, but one thing is for sure – they create employment.  US Citizens who can’t find reasonable jobs, and can’t teach, usually end up working for the government.  According to government data (here’s the need for a governemnt job, compiling data on how many jobs), about 4.1 Million work for the government, down from it’s 1970 peak of 6 Million +.  Jimmy Buffet has a song “Everyone has a cousin in Miami” which is basically true for 99% of Americans – also everyone has a cousin that works for the government.  This business runs very well.  It greases all the right palms.  That’s why it exists.  Not because of voters.  Corporation America is a global octopus of trade.  It’s a form of uber Facism – words can’t describe the system we have now in America because frankly, 90% of it is ‘secret’ and so it hasn’t been studied.  So what can make this machine break?  Several social factors, domestic issues.  But the machine can’t break – it’s too big, it’s too involved in every aspect of global empire management.  But it can change.  

Looking at America as a closed system, inside the walls that have been built by DHS, SEC, CFTC, FBI, CIA, IRS the social fabric of America is polarized.  At the end of the day, all these riots, shootings, what everything comes down to is economics.  People who are employed, don’t take time off work to protest for their rights.  They are happy for their jobs.  Rich people, don’t insinuate riots or shoot people, generally.  Most of the time, your life determines your political views.  If you have a nice life, a good job (about 95 Million Americans) you want the system to continue as it is, you don’t want to lose what you have.  If you have no job, no money, life sucks – you want change.  But at some point, such as we are in now, social factors can become extreme, and a critical mass or ‘tipping point’ is reached, where a sufficient amount of angry people congregate into a mass of really angry people, which can choose to leave and create their own state, their own government- like America did when it was a part of Britain.  Texas, just voted NOT to seced.  These violent elements whether they be racial or other, make all this more extreme.  

The Establishment in America, for at least 30 years, has thrashed the Constituion, violated their own laws they create, and created a real Oligarchy, banana republic style.  It coincides in parallel with other signficant social trends, such as the demise of the Mafia, and the rise of the robots.  To someone like a Clinton, it’s not what you know – but who you know.  Well, that works in College or maybe to get into a Golf Club but it’s no way to run a country.  Like with any Oligarchy, it is the job of the Oligarchs to allow the system to flourish, and not to take too much bribes for themselves, because it becomes like a cancer, and finally the host dies.  The masses who are unemployed have a strong argument to the Establishment – you’re not doing a good job running our economy because there are unemployed people (i.e. ME).  But you have your fancy haircuts and private jets and so on, so let’s get rid of all of you!  That’s the idea of voting for Trump.  True or not, he’s seen as the anti-Establishment candidate.  The Elite have created such a mess this year, whether by purpose or not it’s irrelevant; the only thing that can save Corporation USA is a Trump Presidency.  It’s not as if Trump will save us from anything, and certainly he is self-serving.  But he’s a businessman, and really the only thing that can keep Corporation America ticking is a businessman.  Probably, he doesn’t even know the good he’ll do in the White House until he gets there.  Simple things can go a long way – such as a trade deal with Russia.  Developing Thorium nuclear reactors.  And most importantly, de-polarizing the population to pre-crisis levels, when we are ‘all Americans.’  Trump can do all this and more without even knowing it.  We need a self-serving Hitler like dictator to run America’s facist enterprise.  It’s just good for business.  The stock market can double.  QE will become QEEEEEE.  Because the alternative is disaster (and no businessman wants to file bankruptcy).  When Trump realizes that Corporation America can actually turn a profit, he’ll cut taxes and at the same time double the size of entitlements, all paid for with a massive budgetary surplus, coupled with a strong dollar and finally 10% interest rates.  Whoa!  There’s just so much opportunity out there, when you look from this perspective, economically speaking.  This was one of Bush talents (and, as a national comedian).  Bush made a business out of his office, and although he made a hefty empire for his family, he also made many other people, many Oligarchs, rich beyond their dreams.

If a politician like Clinton is elected, based on Cybernetic systemic analysis, that USA will collapse.  Business will move on, but the political system will collapse.  States like Texas and the South will secede first.  California will follow.  Washington will struggle to maintain control.  If you want to see what a new USA might look like, forget ‘futurists’ and just look the Federal Reserve map, they’ve already carved it out:

But, the Fed drew these according to state lines, so more likely, the lines will shift a little, based on demographic trends, and infrastructure geography.  It will probably look more like this:

Probably, Trump will get in and this will be a non-issue.  But if not, we will be faced with a real ‘clash of civilizations’ in America.  This was best described by Noam Chomsky in his book “Hegemony or Survival:”

Chomsky’s main argument in Hegemony or Survival is that the socio-economic elite who control the United States have pursued an “Imperial Grand Strategy” since the end of World War II in order to maintain global hegemony through military, political and economic means. He argues that in doing so they have repeatedly shown a total disregard for democracy and human rights, in stark contrast to the US government’s professed support for those values. Furthermore, he argues that this continual pursuit of global hegemony now threatens the existence of the human species itself because of the increasing proliferation of weapons of mass destruction.

Chomsky noted that, during times of economic crisis like the post 9/11 world, the Elite (Oligarchs) decided to invest in weapons and security as opposed to social programs and businesses, such as the CCC.  Meaning that, instead of growing a garden, they decided to build a bunker, and protect themselves from hungry people (or rioters) whether they be the black power movement, or just nomadic flash mobs of brainless teens being told what to do via phone app.  Ironically, Rand corporation doesn’t have scenarios gamed out for collapse USA, maybe DOD does and it’s just private.  If you haven’t read Civil War 2 – it’s a bit dated but will be chilling to any current reader, as it explains how the fabric of society will melt down as it has in last weeks and months.  It’s a great read about the strategem of a collapse scenario, written by a military man.

The breakup of USA isn’t a new idea, it’s just easily laughed off as content for science fiction.  It’s not a reality, it can’t happen – not in America!  That’s what Briton’s thought before the Brexit vote.  In fact if you look at any new country, it’s always a surprise.  I’m sure looking back, it was a big surprise to King George when the American ruffians decided to be defiant against their home country – England.  All of a sudden, America was a country.  Remember, during this time, Europe’s colonial powers ruled the world, bit by bit.  Revolution is always a surprise:

Every revolution is a surprise. Still, the latest Russian Revolution must be counted among the greatest of surprises. In the years leading up to 1991, virtually no Western expert, scholar, official, or politician foresaw the impending collapse of the Soviet Union, and with it one-party dictatorship, the state-owned economy, and the Kremlin’s control over its domestic and Eastern European empires. Neither, with one exception, did Soviet dissidents nor, judging by their memoirs, future revolutionaries themselves. When Mikhail Gorbachev became general secretary of the Communist Party in March 1985, none of his contemporaries anticipated a revolutionary crisis. Although there were disagreements over the size and depth of the Soviet system’s problems, no one thought them to be life-threatening, at least not anytime soon. – Foreign Policy

This time though, it really IS different.  With electronic markets, the system is so robust, America could splinter and life would barely change.  So while the idea of USA collapse seems earth-shattering, as a practical matter, things could very much continue as it were.

It’s an exciting idea for Forex traders, the ability to trade regional currencies in North America, I’d immediately go long the New England Dollar and short the Cali-peso (sorry, birthplace).  But most people don’t know, there’s already many US Dollar alternatives that are used right now, today, in America (not just Bitcoin):

  1. Bitcoin. The world’s best-performing currency, according to Kemp-Robertson, Bitcoin’s value is tied to the performance of a computer network. It’s “completely decentralized—that’s the sort of scary thing about this—which is why it’s so popular,” Kemp-Robertson says. “It’s private, it’s anonymous, it’s fast, and it’s cheap.” Bitcoin is a case study in the increasing desire to place trust in technology over traditional institutions like banks.
  2. Litecoins. A virtual currency based on the Bitcoin model, Litecoins have a higher limit: “The number of coins that can be mined is capped at 21 million Bitcoins and 84 million Litecoins,” explained a recent Wall Street Journal post, which also noted that Bitcoins are worth more and currently accepted more widely.
  3. BerkShares. While Bitcoin and Litecoins are worldwide currencies, BerkShares are hyper-local: they’re only accepted in the Berkshires, a region in western Massachusetts. According to the BerkShares website, more than 400 Berkshires businesses accept the currency, and 13 banks serve as exchange stations. “The currency distinguishes the local businesses that accept the currency from those that do not, building stronger relationships and greater affinity between the business community and the citizens,” the site reads.
  4. Equal Dollars. Philadelphia is also trying out a local currency with Equal Dollars. When you sign up to participate, you receive 50 Equal Dollars; to earn more, you can offer your own possessions in an online marketplace, volunteer or refer friends.
  5. Ithaca Hours. Another hyperlocal currency, Ithaca Hours—usable only in Ithaca, New York—also hopes to boost “local economic strength and community self-reliance in ways which will support economic and social justice, ecology, community participation and human aspirations.” (For a full list of local currencies in the US, go here.)
  6. Starbucks Stars. Use of Starbucks’ Stars is limited not to a particular geographic locality, but to the corporate ecosystem that is Starbucks. Once you get a Starbucks Card, you can earn Stars—which buy drinks and food—by paying with the card, using the Starbucks app, or entering Star codes from various grocery store products. According to Kemp-Robertson, 30 percent of transactions at Starbucks are made using Stars.
  7. Amazon Coins. Another company-specific currency, Amazon Coins, can be exchanged for “Kindle Fire apps, games, or in-app items.” You get 500 Amazon Coins, worth $5, by purchasing a Kindle Fire, or can buy more Coins at a slight savings.
  8. Sweat. Kemp-Robertson points to a particularly innovative business-specific currency in Nike’s “bid your sweat” campaign in Mexico. Your movements, energy, and calorie consumption are tracked and can be exchanged for goods, ensuring a “closed environment”—only people who (a) own and (b) use their Nike products are welcome.
  9. Tide detergent. This is a barter system that’s about as far from government-backed as you could get: in 2011, it was discovered that across the US, thieves had been stealing 150-ounce bottles of Tide detergent to trade for $5 cash or $10 worth of weed or crack cocaine. An article in New York Magazine from earlier this year details the fascinating story and what it says about Tide’s super-successful branding.
  10. Linden Dollars. Linden Dollars, usable within the online community Second Life, can be bought with traditional currency or earned by selling goods or offering services to other Second Life residents. Many people earn actual Linden salaries—some to the tune of a million Linden Dollars—says this article from Entrepreneur.com.
  11. BONUS: Brownie Points. Granted by the universe as a reward for good deeds. Not exchangeable for tangible goods, just self-satisfaction, which we think is also important.

To learn more about Forex, checkout Splitting Pennies – Understanding Forex.

(South Carolina, 2016 – undisclosed location)

First published here: http://j.mp/2abxHJw