Secessionist Movements & Localized-Globalization

[Following post by TDV Head Researcher Justin O'Connell]

The winds of independence are blowing throughout the world, and nothing could be better for our future. This host of seccessionist movements, from Crimea to Venice to the US has major implications for the future of life on earth, and spells decentralization for a heretofore centralized world. But localization does not necessarily mean withdrawal from the world "out there," just withdrawal from those institutions beyond our local communities or without our consent which have a proclivity to dominate. 

One common thread between today's governments is wanton printing of fiat currencies by central banks.  Not all governments are printing to Zimbabwean levels, yet, but many are nearing that point. In any case, all have centralized monetary policies usually involving highbrow yet banal men (or now women, with Janet Yellen)… in either case they have beards and sit beady eyed in secret rooms. Part of the reason why the US crisis seems in a frozen state since the 2008 banking nadir has everything to do with the fact that other central banks are printing just as much or more of their own currencies as the Federal Reserve. What does this mean? It means that these countries’ currencies are growing weaker in relation to assets like stocks, bonds, real estate, precious metals, minerals and other commodities and resources, just like what's happening in the US Dollar.  So those poor people who work for fiat currencies always make less unless they get raises routinely to try to keep up with the increase in the cost of living. 

The US is printing as much money as emerging economies with a currency that has worldwide circulation and can be rejected from more corners of the world than any other. This is something we're seeing and Jeff has covered in stride here at The Dollar Vigilante Blog. So, what has been the US's biggest strength has become its biggest weakness, thus necessitating a sensible global shift to match the quickly evolving times. 

SECESSIONISM

Sales of bumper stickers reading “Secede” – one for $2, or three for $5 – have increased at TexasSecede.com. In East Texas, a Republican official sent out an e-mail newsletter saying it was time for Texas and Vermont to each “go her own way in peace” and sign a free-trade agreement among the states.  A petition calling for secession filed by a Texas man on a White House website has received tens of thousands of signatures. The Obama administration will be tasked with issuing a response. Larry Scott Kilgore plans to run for governor of Texas in 2014, with a main goal to secede.

New Hampshire has its own independence movement. California and Oregon do, also, in the form Jefferson State. Although the goal of Jefferson State is not to secede from the US, the independence-mindedness of the movement is significant. In time it could become secessionist not only from Sacramento and Salem but from Washington, DC.

Venice wants independence from Italy, just as Catalonia has attempted to be independent of Spain. Bavaria has sought similar and has its own local currencies to show for it. Germany, Greece, Italy, Ireland, Spain and Portugal, if they left the European Union, would have to establish their own regional currencies and grow their economies, creating competition for the European Central Bank and other nation-states. Scotland cut ties with England, and a current split of Belgium into Flemish and Walloon entities only fan the flames of independence movements throughout the west, including the US and Canada. 

It would be smart for any region looking for independence to begin hedging the currency crisis that would occur in said society – namely, the lack of a widely accepted currency from the start. That is where, potentially, tangible assets like gold and silver could come into play, and also bitcoin and other cryptocurrencies. To be sure, currency will be different everywhere. In some regions, like the west coast of the United States, perhaps marijuana will be used as a form of exchange, while in Texas local, organic grass fed beef is used or bullets.  

The Crimea example underscores the effects of secession on the precious metals market. The threat of military conflict over the secession led to some of the most bullish precious metals activity in years and so just imagine if a part of Europe or the US decided to break away and then other states followed. It would be a sign of tremendous turmoil not only in our political systems but the economy as well.

New local economies would have to form most likely based upon locally accepted scrip, precious metals like gold and silver, which have been considered money for ages, as well as cryptocurrencies. There would be much uncertainty, but probably not as much as many people believe. Quite quickly if local communities became truly independent and had to take care of themselves massive changes would happen quickly to preclude any violence and new ways of life would emerge soon thereafter. Altogether, localization is a credible solution to the increased political and social unrest the world over. 

Localization makes our communities more agile, more resilient. Smaller nations (and ultimately no nations, as technology has changed the human experience enough to make institutional-hierarchy obsolete) would be the best way for our communities to survive the economic flux of the time. Moreover the localization can be a nuanced one. It simply implies self-rule, starting with the individual and ending somewhere "out there" yet close to home. This does not preclude interaction and interconnectedness with the outside world, other communities. A new precedent for globalization, with a localized twist, means globalization with a focus on our neighborhoods. The tools of localized-globalization are discussed in the TDV Newsletter, helping individuals survive and prosper at The End Of The Monetary System As We Know It (TEOTMSAWKI).

As Jeff Berwick always says, "if at first you don't secede, try, try again."