I wanted to revisit the Bernie Madoff Ponzi Scheme because I feel that there was a very important lesson in there. The day after Bernie Madoff was exposed, hundreds of very wealthy and connected investors faced a new paradigm. Everything that they knew and relied upon turned out to be a lie. Americans, for the most part, passed it off as, “poor billionaires have to live like us now.” I want you to get past that initial reaction and see how they reacted to this new paradigm.
Retired British Army Maj. Bill Foxton was known for his sharp wit and red hair. When he found out that his entire life’s savings were wiped out in the Madoff Ponzi Scheme, he calmly sat down on a park bench near his house and blew his brains out.
An HSBC banker, Christen Schnor hung himself in a 5-star hotel room in West London. He was staying at the Jumeirah Carlton Tower hotel while his apartment was renovated. A hotel worker found Schnor naked and hanging by a belt in the closet. Christen managed $1 billion in funds that were wiped away by the Bernie Madoff Ponzi Scheme.
Magon de la Villehuchet, 65, was found dead at his desk in New York on Tuesday, both of his wrists slashed and a bottle of pills nearby. Rene-Thierry Magon de la Villehuchet saw his fortune and his loved ones’ money disappear along with his clients’ when he lost $1.4 billion he had invested with Bernard Madoff. The Magon de la Villehuchet family traces the origins of its wealth to the 17th century. The family was so rich and prominent that it loaned money to Louis XIV.
These three were very sharp, educated, and well connected men. They could have very easily have still have lead a very comfortable life with their knowledge and connections. I believe, in the end, the shock of a new paradigm far out weighed their financial losses. The fact that they were suckered and that they were complicit in the bankruptcy of their friends and family, was too much for them to bear.
“The whole government is a Ponzi Scheme.” -Bernie Madoff
Every single person in the world is going to go through what these three men went through, when the global, generational, fiat Ponzi Scheme collapses the world’s currencies. If these guys bit the bullet and still had resources at their hands, how do you feel the average America is going to handle a shock of a new paradigm? There is little doubt in my mind that there will be massive upheaval in our physical life. I fear the mental aspect, of being so wrong, for so long, will be too much for most to bear.
How will you react when your whole world changes overnight? How are you going to look in the eyes of your children and say that you were so wrong? Maybe you still think that is it is not going to happen? If I am wrong, then you will be fine. What if I am right and you did nothing?
During the Rape of Russia by the Rothschilds in the early 90?s, the unemployment rate surged and there was a 42 percent increase in the mortality rate for working-age men between 1991 and 1994. Russia still had the Deutschmark and the Dollar to use as currency during the collapse and that may have saved millions. The problem is that when the dollar dies, I believe all fiat currencies and paper assets will die also.
This means no food, no fuel, no money, no jobs and no hope. Even with the first shock wave of this paradigm change we have already surpassed the suicide rate recorded in the Great Depression. I had one father write me about his 14 year old son committing suicide recently. I was with another mother this weekend that told me of her daughters 16 year old friend committed suicide. And then a week later, the daughter attempted her own suicide. I read an article about Kipp Rusty Walker, 19, committed suicide by stabbing himself on stage while an audience cheered. All of this is with a functioning social support net still working. What do you think it will be this time around when things get real bad? 2x, 5x, 10x as bad? I believe that it will be catastrophically worse.
It seems everyone of these school shooting or mothers killing their children, are from people on some psychotropic Selective Serotonin Reuptake Inhibitors (SSRI) or more commonly known as anti-depressants. These drugs are extremely powerful and can cause psychotic breaks that lead to violence. Go to http://ssristories.com/ to see the list of nearly 4,300 cases of crime related to these drugs. These stories include everything from the Virginia Tech shooting to the mom that drowned her 5 kids in the bathtub. I would say that these drugs are much more dangerous than guns, because they cause the people to break from reality.
I don’t have time to go into the mass medication of America and the real reason why Marijuana is illegal, but I do want to warn everyone of one thing. Nearly 10% of the country or 27 million Americans are on these drugs. Please understand that there is only a one month supply in the system. The kind of psychotic breaks that will happen if people come off these drugs too fast, en masse, could be catastrophic. When the dollar collapses, we not only have to worry about the 7 to 10 day supply of food and fuel in the system, we really need to worry about the 1 in 10 Americans who are not going to be medicated while their world paradigm collapses. I can see it now, humanitarian airlifts dropping Zoloft and Lexapro from the sky…