Obviously vulnerable Third World nations need to make preparations for this.
Clearly the obvious solution is not about merely buying more gold for their central banks, which helps gold exporting nations, and the international gold bourse's of London and New York.
The first logical step is to detach as much as possible the Third World country's finances from the economic fallout/financial melt down in advanced counties and especially the USA.
Another great step would be to artificially boost the economy to maintain for a few years, whilst Western countries adjust to the financial crisis, and pick up the slack from the loss of exports to Western markets.
Certainly a "master strategy" should be developed to counter ANY Financial crisis, and the subsequent dollar collapse later this year by developing nations. Foreign aid will be cut, trade will dip, availability of international currency and capital will also reduce.
In this respect careful study of the Soviet planned economy must be made between 1928--1941, which despite the Great Depression of 1929 onwards, still managed real GDP growth rates of 20% year in year out for more than a decade, and successfully incubated itself from the financial crisis in the USA which so challenged the rest of the world. Of course Gulags and the tactics of the NKVDU will not be necessary in addition, or forced collectivization, or forced relocation of labor.
Judicial strategic economic planning, with artificial boosts to the economy through welfare programs, public works programs, efficient taxation of the rich, investment in infrastructure, health and education....sectors of the economy that are traditionally labor intensive.
FAILURE to do this will result in public disturbance, riots, and political instability which could lead to deaths, and partial destruction of the country, AND the toppling of the regime.
Failure of the economic system in the USA, and any financial crisis in that country should not automatically lead to hardships for Third World nations provided the correct strategies are implemented by the government.
I will update this soon.
Mac Slavo at SHTFplan.com and infowars.com
In a harbinger of what may be coming our way in the Fall of 2012, billionaire financier George Soros has sold all of his equity positions in major financial stocks according to a 13-F report filed with the SEC for the quarter ending June 30, 2012.
Soros, who manages funds through various accounts in the US and the Cayman Islands, has reportedly unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million.
What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiring some 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.
When a major global player with direct ties to the White House, Wall Street, and the banking system starts off-loading stocks and starts stacking gold, it suggests a very serious market move is set to happen.
While often lambasted for his calls to centralize global banking, increase government intervention in the economy and his support of what he has called an “emergence of the new world order,” if there’s anyone with an inside track of where things are headed next it’s Soros.
Soros, who has written extensively of a coming global paradigm shift in his book The Crash of 2008 and What It Means, calling the current economic and political model ”an end of an era,” has recently suggested that the financial and economic situation across the world is so serious that Europe could soon descend into chaos and conflict. He also notes that the world is entering “one of the most dangerous periods in modern history”, and foresees violent riots in America and a brutal clamp-down by the government that will dramatically curtail civil liberties.
This is an individual who not only predicted the collapse of 2008 and took action to insulate himself, he also proposed the various fixes that governments in Europe and the US would eventually implement in order to stave off a deflationary depression. In his aforementioned book he suggested that central banks infuse the system with massive amounts of monetary expansion, but also warned that not injecting enough money would simply extend the onset of deflation and printing too much could lead to hyperinflationary currency collapse.
Based on recent activity in Soros’ US held accounts, it seems that governments and central banks have failed at those efforts to stabilize the system. As such, Soros is getting out of those companies which are most at risk should the financial system buckle like it did in 2008 and he’s shifting his assets into what may be the only asset class left standing when it’s all said and done.