Devolution of the USD 2012? As the first public article for me just before 2010, it seems appropriate for me to comment on one of the biggest stories we will be all facing – that is an end game of events leading to the end of the USD. The implications for the world are no less than Armageddon – like. I mean it. Before we get into some details, I have been working on forecasts for 2010, and my study of the USD situation and how much time it has left. I first came to the conclusion that it was roughly (and I am getting close here on timing, I’m sure of this) two years from 2010. Actually, the calculation is two more years of relative USD functionality before the world realizes in about a shocking week’s time that the USD is just about to really go belly up. It’s not 5 years out anymore in my calculations, we have roughly two more years left.

What would happen in a USD collapse?

* The US and Western economies will all face insolvency simultaneously, with the US first in line.

* The entire Western industrial/consumer/credit economy will fall apart so fast it will make your head spin. The supply chain will stop and stores will empty in less than 3 days.

* The USD will fall over 50% in one week’s time, till it temporarily stabilizes before its final last gasp. Remember the Lehman panic over those several weeks? You have seen nothing yet.

* Worldwide currency panic will set in paralyzing what’s left of the world economy, that means the ‘emerging markets’ stop dead too.

* China has a revolution, or goes into military mode, which is worse.

* A one world currency will be demanded and implemented, and it better be fast too since the cities only have 3 days food on average…(by the way I know for a fact that a one world currency can be implemented electronically and turned on in one hour, if they wanted!)

And so on. How will Asia fare? Horribly. Look, if you based your entire economic plan on Western consumerism, and that goes away, so does your plan. It’s dead. If Western consumerism goes away, then the entire foundation of the Asia macro economy instantly crashes and stops cold. Do you remember what happened that fateful last quarter of 2008, after the Lehman debacle, and the world banking system almost collapsed en masse? Exports from China and Japan for example collapsed over 30%!

Don’t think economic demand cannot stop on a dime, because we already had one very scary case of this last year. So, all the pundits aside, Asia gets killed too economically. The big question is, can they successfully adapt to a new economic paradigm before they have their own revolutions? I do not think so.

It will be a dark time worldwide. There is a lot more to say here. Needless to say that will be in our future newsletters for paid subscribers. If you noticed, we have not been publishing as many public articles, and one reason is that our paid people get a great deal more of this analysis than the public articles offer. Obviously. And we have quite a batch of recent newsletters out, that will most definitely intrigue you. They are my best stuff to date.

We are also raising our prices substantially. Basically, I realized that we are often way ahead of the curve, and are followed by other writers. The present PrudentSquirrel is worth every penny. We are not cheap and just another newsletter out there, anymore anyway. Our present prices are $144 a year for 44 newsletters and mid week email alerts. That will go to $360 a year. However, if you want to subscribe now, since we have not yet raised prices, you may still do it for $144. We offered existing subscribers re-subscription specials before this coming price increase and had a huge response. So, evidently our subscribers agree that the newsletter is worth it.

Lastly, I would like to point out that we have made some astounding predictions over the last two years about the USD and gold and other currencies. If you stop by our site, we’ll have a page showing you them (up hopefully today). We do not make many predictions like that, maybe 2 or 3 a year. But our last batch was quite on the money… you’ll see when you take a look.