Sharoma The Cheery Decade Ahead

The Cheery Decade Ahead

The key event will be the loss of reserve currency status for the US dollar, and the timeline could be half what I suggest. As of late 2010 the US government, even if it taxed its citizens and corporations at 100% of their income, would still not reduce its budget deficit to a manageable level. Only two options are left: Monetize the debt, or raise interest rates.

Inflation increases, caused, amongst other things, by printing money. This is euphemistcally known as "quantitive easing". US dollar devalued, confidence in the US economy is lost, and their dollar is replaced as the world reserve currency. Inflation and unemployment both remain high: stagflation. Run on US dollar "threatened" by majority holders of US treasury bonds (namely, China and Japan), similar to US threats against Britain during the Suez Crisis. Situation stabilised by Chinese/Japanese/European/IMF bailout, increase in interest rates and another new round of buying US treasury bonds.
Fuel prices begin exorable rise to levels the middle and working classes can no longer afford. High interest rates, amongst other things, significantly increases mortgage repayments. Transport begins to shut down. US military, currently guarding Middle Eastern oil assets, mostly redeployed back home, at insistence of China and other growing regional powers. US borrowing continues unchecked, once again threatening the value of the dollar. More money is printed to keep the economy afloat, despite vociferous protests from other nations with a vested interest in maintaining the value of their dollar holdings.
Run on US dollar; hyperinflation begins. Foreign investors see no future in the currency, and quickly convert their reserves to other currencies. China sells their US dollar holdings and treasury bonds. Consumer prices skyrocket. Imports no longer possible. Government attempts to sell bonds to population via ad campaigns. Military used at home to keep order and manage food distribution. Benefit pay-outs and most government spending ceases for good.
The only easy imports of oil are now Canadian, although it remains to be seen if the Canadian dollar will fall with the US one, or even if the Canadians would dare price their oil in another currency. Seeing as American corporations control Canada's economy, it is likely they will remain attached 'at the hip'. The high oil prices on the world market could boost the Canadian dollar significantly (it is already a "petrocurrency", and reached parity with the US dollar in 2008 and late 2010). Merger of North American currencies suggested, and voiding of all previous US debts would follow (further enraging any remaining US creditors).
A general feeling of despair and anxiety permeates North American culture, especially as the Asian economies continue growing despite the tumultuous currency wars of the previous five years. Population of Canada, US and Mexico warned that without an immediate merger of their currencies, the economic system will "collapse for good" in the North Americas. Mints begin distribution of 'Ameros' and all public sector workers are forced to accept them as payment. Trade-in value of old dollars is 1/10, or "pennies on the dollar".
Major "terrorist" event to symbolise downfall and convince people to accept loss of US dollar and/or US sovereignty. Patriot Act 2 is passed unanimously.
Authorities seize control of infrastructure, major industry and food production. Canadian oil assets are a key target. For "its own safety", centralising of population begins. Critics begin disappearing.
Dependance on authorities for all basic needs. Mass media/TV praises new currency and offers false reports of immediate economic recovery.
Implanting of populations with RFID chips begins. At first voluntary, it is then made mandatory due to lack of volunteers.
Martial law openly declared in all major cities across North America. Dissidents rounded up.