The current worldwide consequences are natural and probable according to monetary science.  Issac Newton understood monetary science and in 1696 when England faced a similar credit contraction he developed the gold standard and was knighted for his work as Master of the Mint. 

The consequences currently exerting themselves are but minor effects the cause of which is the abandonment of the gold standard starting in 1913, 1933 and culminating in 1971.  The result of that cause is a deflationary credit contraction, or Kondratieff Winter, that continues with its snowfall.

California Treasurer Bill Lockyer has issued an urgent plea for capital leave safe and liquid forms to move up the pyramid, in other words trying to get Wile E. Coyote back on the ledge with Roadrunner. 

He pled “For 10 days, state and local governments have been closed out of credit markets – long-term and short-term – in spite of the fact that they represent no default risk and provide a good tax-free return to investors. ...That means the State’s cash reserves would be exhausted near the end of October.  Payments for teachers’ salaries, nursing homes, law enforcement and every other State-funded service would stop or be significantly delayed. 

And California’s 5,000 cities, counties, school districts and special districts would face the same fate.”

Who in their right mind would lend their capital from T-Bills or gold to California?  There is never ‘no default risk’ as Mr. Lockyer asserts.  Governments lie and refuse to honor their promises all the time.  In about a month or two just ask all the teachers , nurses and law enforcement who were promised a paycheck that Mr. Lockyer is now saying may not come.

The betting odds highly favor economically motivated riots breaking out in New York and Paris.  In my opinion, Los Angeles is the most probable metropolis.  I wonder what will happen during the riots if law enforcement unpaid?  I am sure they put their lives on the line in front of tens of thousands of hungry people just for fun or purely altruistic motives.

I have a friend who works at a law firm in San Diego and one of the attorneys left early on October 2nd to pick up some extra food and polish his gun collection.  Those in California should prepare as they deem appropriate.

The financial atom, the Federal Reserve Note Dollar, of the modern financial world is predictably evaporating.  The cure to this worldwide ailment is the repeal of the Federal Reserve Act and a return to a Constitutional monetary system under Article 1 Section 8 Clause 5 and Article 1 Section 10 Clause 1.  Any other solution most likely attempts to violate economic law and the principles of monetary science.  Economic law and monetary science will assert themselves.  Like Wile E. Coyote there is no returning to the ledge.

As I have said before, the window of opportunity is rapidly closing for protecting yourself.  One easy way to increase your safety and liquidity is to withdraw any capital in banks and take physical possession of the Federal Reserve Notes.  Another is to pick up a few gold and silver coins.  Having some extra food on hand may be wise.  Remember the first rule of panic:  Do it first.  Meep Meep!!