POSSIBLE BANKING COLLAPSE COMING

SoCal Martial Law Alerts (SCMLA) has been in existence for almost 2 years now and this is our 2nd MARTIAL LAW ALERT.

As with our first MARTIAL LAW ALERT, we have held back our assessment of the financial collapse currently underway until we could gather enough information. Since our focus is martial law, we always look at current events with an eye toward assessing the conditions that would be necessary for the President and/or the military to implement martial law. And, since we try to stay at least one step ahead of the game in order to warn people, such assessments must, of necessity, be speculative in nature. Nothing stated herein is guaranteed to happen. The purpose of these alerts is to get people thinking outside the mainstream-media box so that they might be better prepared to meet any eventuality (and this includes being prepared: mentally, emotionally, spiritually and physically -- and being prepared physically includes being prepared financially).

THE SITUATION:

As the price of gold reaches new heights (over $1300 per ounce) and silver climbs to over $23 per ounce, the financial situation in America is dire, to say the least. Continuously rising rates of unemployment, increased government spending and the collapse of the real estate markets are all converging into one perfectly-directed/perfectly-designed collapse of, not only our economy, but the greater global economy as well. While major financial players such as Goldman Sachs and JP Morgan continue to have record profits, the middle class has disappeared from the American financial landscape. Major financial leaders such as Federal Reserve Chairman, Ben Bernanke, have openly admitted that our country's financial system is in deep trouble and even Europe is having more banker bailouts. Meanwhile, the American media constantly hypes a possible terror attack in America and other countries in Europe.

If another major terror attack such as 9/11 occurs, trends forecaster Gerald Celente has stated that the event would bring the banking system to a complete halt, which would then result in a "bank holiday." And Celente is not alone. For over a year, many others have warned of an upcoming bank holiday. With our economy already in free fall, it would not take much of a national and/or worldwide terror event to completely crash our (fiat) dollar-based system in a very short period of time. Upon the crash of the dollar, more bank holidays could be declared and oppressive emergency banking powers could go into effect (see: Emergency Banking Act of 1933). These include severely limiting consumer withdrawals and a recall of physical gold holdings. Taking Presidential Defense Directive #51 into account (PDD-51), even a major stock-market crash could trigger this scenario. And once PDD-51 is invoked, then martial law could be fully implemented.

Another way the collapse of the banking system could lead to martial law is through cyber attacks.

This possibility has been particularly troubling to us, since, earlier this year, CNN aired a staged (i.e. fake) "cyber terror" attack complete with fake news reports being fielded by Michael Chertoff and other Washington insiders. Their premise was that the American power grid had been taken down by hacker/terrorists via cyber attack. Since the airing of that fake news program, alternative news agencies such as Infowars and others have made the point that such an attack is impossible for the average hacker, because the power grid is on a completely separate network from the Internet. In the meantime, threats against our power grid have been highlighted in other (suspect) ways, such as the Russians who were recently found trying to break into a Georgia power plant.

While the media continues to hype the threat of cyber terror against our power grid, others have looked into the perhaps more frightening prospect of a cyber attack on our banking system, which relies heavily upon computer networks as well as the Internet. Such an attack has already occurred both in America (over the July 4th holiday in 2009), as well as abroad (in South Korea, Estonia

, India

, and Canada

). In fact, in February 2010, the American financial services industry actually participated in a cyber attack exercise to test the readiness of the financial system, so there's no way they can deny that they've actually considered the possibility of such an attack. If such an attack did occur, whole sections of the banking system would most likely go offline (as many believe happened to Bank of America earlier this year), or, worse, massive amounts of account data could be compromised, or lost altogether.

The possible result?

Imagine being unable to access your checking account, your 401K, or, even worse, having your bank balance go to zero and, in the resulting chaos, being left with no way to prove the amount that should be in your account. After all, these days, all your sensitive banking data is stored in computer databases and, in the midst of a "cyber crisis," many (or all) recent transactions could be lost (or the banks could claim such). In such a scenario, the only real proof of funds would be whatever cash a consumer happened to have on hand.

Many analysts such as Gerald Celente and Max Kaiser have been warning people about keeping their money in banks. As America's financial situation continues to deteriorate, a false-flag cyber attack would be a clever way to disguise the inevitable and blame the collapse on something (or someone) else. Also, with the nation's financial data compromised and/or missing altogether, it would conveniently force a "reset" of the banking system back to zero. Amidst the chaos of people trying to function with little-to-no cash while at the same time clamoring for a solution, the government could easily roll out a ration-card system much like the one Venezuela currently has, and/or a combination identification/debit card like Malaysia's. In addition, possible food and/or water riots could also create the perfect pretense for martial law.

In conclusion: A cyber attack that took out either the banking, or the power grid system would undoubtedly cause much turmoil. A cyber attack that took out both would be devastating. Either one would pave the road to martial law.

OUR RECOMMENDATION:

If you have money in a bank, consider getting it out. (Digital dollars are not durable, nor dependable!) Keeping enough cash as needed for survival is always wise, but consider putting all other assets into precious metals and/or necessary goods in order make the transition into the next new currency (whatever that might be). If you do not already have storable food, water and defensive weaponry, now would be a good time to acquire these items. Consider liquidating all paper assets including retirement accounts, stocks, bonds and mutual funds, since, at this point, it wouldn't take much to send the value of all these items to zero. Begin, if you have not already, to be more self-sustaining, whether through gardening, or bartering with other like-minded individuals, etc. Now is the time to introduce yourself to your neighbors before the power (and possibly other services) go out. Know who you can trust and who you can't.