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A Depression Era Economics Lesson

By: Tom Chatham

When the great depression hit in the 1930’s, many people had a difficult time surviving. When the system they depended on ceased to function properly, they no longer had the ability to earn a living wage and care for their families. Even at a time when you could get a meal for a nickel, many people struggled to feed themselves.

In many rural areas, farmers faced the difficulty of being able to even grow enough to feed themselves. The drought that accompanied the depression left many no choice but to move to more hospitable locations where jobs could be found.

Some people were in a much better position to weather the national problems than others. They were not rich in monetary terms but they had a stable living condition that enabled them to get by as always.

In the rural community that my family had called home for over 100 years, my family got by better than most. The fact that many of the people were watermen, that made their living on the Chesapeake Bay catching various types of seafood throughout the year, made the depression different for them. As my father related to me, they really didn’t know there was a depression going on most of the time.

The men went to work every morning catching what they could. Anything they couldn’t sell was taken home for dinner. Everyone had a garden and maybe some chickens and a hog out back providing meat for the winter. The area was also surrounded by many small farms producing many things they could trade for. Nobody had much money but the area teemed with the things that were needed to get by and barter was the norm.

Electricity was not seen in the community until the late 1940’s and few people had a car. These people really did live off the grid. That was the norm for them and they got by very well even with the national economy in a state of hard times. They could not buy many of the things they needed so those things had to be made out of whatever materials they had.

There are many stories like this that have been told and they are worth listening to once again. These stories provide the foundation people will need when the economy fails again in spectacular fashion leaving many in dire straits. When everything fails you have to go back to what works. That is a lesson that our ancestors have left for us to follow if we have the sense to learn from their hardships.

The current generation has known nothing but excess and prosperity. When the system turns down again they will be lost without all of the creature comforts and gadgets they are used to getting with great ease. They have been raised with the notion that everything is easy and when that paradigm fails they will not know how to cope with reality. This is the problem we face and must deal with in the months to come.

There are two lessons that can be taken from this story. When hard times come your location and creativity can make up for many shortfalls in life. Those things can make the difference between suffering and having a decent standard of living. Living in an area rich with resources allows you to produce many of the things you need locally with little money and can even provide you with a stream of income. The lack of resources in your area can make things very difficult over the long term.

The current generation has lost the ability to trouble shoot the problems they are faced with and come up with simple solutions. Creativity is something many people no longer possess and that is one of the things that will make life hard on them. The greatest generation knew how to devise creative solutions to their problems that allowed them to get by and even prosper. That is a lesson we need to take away from the last depression.

It is good for people to plan for hard times by stocking up, learning to produce food and storing real money for times of need but that will not be enough when the time comes. Your location and the ability to be creative and solve the many problems you will face will be necessary ingredients to surviving the coming hard times. Keeping your plans simple and learning the ways of our grandparents will help in ways we cannot even contemplate at this time but their wisdom will be as critical as your other supplies. One of the many slogans that came from that time is worth remembering.

Make do, do without, use it up, wear it out.

Is Silver Indicating The End Game Is Near?

By: Tom Chatham

Gold and silver have suffered a beating this past week. Silver has broken below support levels and at this time the bottom is uncertain. One thing that is certain is that the manipulation taking place behind the scenes is providing a prime buying opportunity. While investors are having another bad day, stackers are enjoying every minute.

It is common belief that the destruction of the currency by unfettered printing should cause a rise in PM’s but the manipulation taking place has made pricing PM’s a guessing game for the past ten years. Only the final destruction of the fiat empire will usher in the unrelenting rise of gold and silver to their natural free market levels. This takedown may be the final gasp of the currency manipulators before the printers lose control and gravity takes over.

John Embry recently stated that silver is one of the few lifeboats that will be available to people when this Ponzi scheme comes apart. He also stated that from the Austrian perspective there remains only two possible outcomes and the most likely one is that they will print as much money as necessary and that will lead to hyperinflation at some point.

Last year the DHS insider told Doug Hagmann that a prelude to the end game would be a massive takedown in the price of metals. With the price of silver breaking below the $18 resistance level, it is possible we are seeing that move now.

Jim Rickards, who has been providing financial threat and asymmetric warfare advice to the nations intelligence services, is now expecting a great depression that will last 25 years. He expects the losses of the next market collapse to be in excess of 100 trillion dollars. He also believes it will begin within the next six months. He has also stated that the government has already implemented what they call the day after plan for this collapse which involves evacuation of government leaders to areas called site A, site B and site R.

John Williams of Shadow Government Statistics is still calling for hyperinflation in the U.S. and he believes it will begin by the end of 2014 or early 2015.

Jonathan Cahn, author of The Harbinger, believes that based on biblical text and dates that another devastating market crash may happen by September 2015, with a high likelihood around Sept. 13, 2015.

In any event, people will have to judge the current world events and warnings of others and make their own decisions as to what will come and prepare accordingly.

The current cost of silver in fiat dollars is well below production cost and cannot last for any significant amount of time because physical shortages will develop at some point. That makes it a very good vehicle to store any excess funds you have for the future.

When you think about how to save for the future you must consider the actual value of assets and commodities and how they will be affected by a major disturbance in the normal state of commerce.

The value of something is relative. It depends on the one who has the item and the one who wants it. To complete a transaction, the two must come to some mutually agreed upon terms. These terms define the current value of the item.

Even if the world wakes up on the wrong side of the bed one morning and money as we know it no longer has any value due to the circumstances, at some point you will still need some way to save for the future.

One of the reasons we need a medium of exchange that will hold its value over time is so that you can save your excess production now so that it can be used later if you cannot produce enough later in life to live day to day. That is the whole point of saving for retirement. To pay for things you need when you can no longer physically produce enough.

There are many that will say it is a waste of time to save or plan for commerce in the future if everything collapses but it is a necessary action of humanity and will be necessary no matter how bad a collapse is. Those that do plan for some type of commerce in the future may decide that skills will be their savings to draw on in the future rather than physical assets such as precious metals. The reasoning behind saving at least some PM’s is the fact that they have a 5,000 year track record that transcends the past mistakes made by humans.

In the future if you are fortunate enough to still be productive after some world changing event and someone needs something you have, you will either have to give it to them for free or take something in exchange for it. If you take something in exchange for it, what would you prefer that something to be?

The Great Unwinding and The Aftermath

By: Tom Chatham

As global currencies wage a race to the bottom, citizens of the world are kept distracted by insignificant things to keep them calm right up to the end. The end will be the destruction of many world currencies and the savings of those invested in them. When that happens those who have lost everything will panic, and for good reason. The conspiracy theorists and sound money people will be proven to be prophets but none of that will matter by then.

All of the savings that people think they have was long ago looted by the bankers and now they must destroy those ledger entries that people think they have. Much like the phantom gold that no longer exists in vaults but only on paper, those ledger entries must be destroyed before the banks are required to give that money back to its rightful owners. It is not only the savings but the promised payments from government entities that must be eliminated. The government has made promises it cannot keep and now it must find a way out while maintaining “plausible deniability”.

That is the crux of the unwinding we will see in the near future. The people have been robbed of their wealth and their futures and now it is time to perpetrate the cover up so the guilty parties can sail off into the sunset with their ill gotten loot. It almost sounds like a movie plot but unfortunately the people will have to stick around after this show and deal with the aftermath. That is something most people do not see coming and are ill prepared to deal with emotionally, physically or financially.

There are many things that people will disagree on when it comes to the future but there are some things those following events will agree on.

There will likely be a catastrophic event in conjunction with a monetary crisis.

Most people will be completely unprepared for the events.

Only those that hold hard assets and the means to protect them will come through this with any wealth in tact.

The government will increase their control of the population.

Basic resources like food, water and energy will be expensive or difficult to get. This is especially true for imported goods.

People will lose the homes they cannot afford and their retirement savings.

Government payments will be cut off or severely cut back.

There will be armed resistance against the government as they reduce freedoms that people are accustomed to.

Roving gangs will likely be a problem at least in the short term following the crisis.

The country will look much different in ten years than it does now, and likely not for the better.

People will need a different strategy for retirement than they now hold.

Healthcare will become more expensive and less available to the average citizen.

The U.S. will likely become a third world nation as far as living standards are concerned.

These items point out the direction we are headed as a nation. Those that ignore the reality we now live in will suffer greatly and will be immobilized with fear and uncertainty as to what to do. The government they looked to in the past for guidance and safety will be at odds with their very existence in the future. Those things they took as a given will no longer exist.

This list defines what you as an individual must be prepared to deal with in the uncertain future ahead. Only by addressing these issues will you have any peace of mind in the coming days as events play out on a global scale. It has been said many times before but must be repeated because many still do not hear the message.

You must be prepared to provide basic necessities to your family for a prolonged period of time. This includes clean drinking water, nutritious food, shelter, sanitation, security, clothing, health care and any excess funds should be used to buy precious metals or some other wealth preservation tool. Any transportation and communication assets you have will greatly enhance your survival position.

Beyond these basic items you will also need to think about some way to produce income in the years ahead. Having special knowledge or capitol equipment to produce needed goods will insure you can continue to care for your family long term. The ability to produce food, water, clothing or energy and provide medical help or capitol goods will insure you have a product to sell that will be in demand.

In a dysfunctional world the business opportunities are many. Basic supplies that were once taken for granted will be sought after by everyone. Herbal remedies, meat production, paper goods, cleaning agents, tools, building supplies and such mundane things as blocks of ice and footwear will have to come from somewhere. Something as simple as an absorption freezer powered by a homemade power source like bio-gas can provide frozen meat and ice to sell the year round.

You must also be cognizant of many possible dangers that an uncertain world can present. These include natural disasters, the threat of war, disease, nuclear dangers such as fallout and contamination and chemical threats from malfunctioning plants and storage sites.

The ability to plan for the future is more imperative now than ever. It is a sad thing that people spend more time planning a summer vacation than they do for their future. That lack of planning will insure a difficult future for them and their children as the world unwinds at an ever faster pace taking their standard of living to ever lower levels until reaching the bottom of this unknown new world. You need to prepare now like your life depends on it, because it does.

Prepare For Longterm Instability and Hardship

By: Tom Chatham

Unlike the normal business cycle that allows for a recession every few years to clear out the mal-investments and keep the system functioning properly, the current cycle has been artificially induced with money that has unseated the foundation of good financial practices and caused a series of bubbles that must pop at some point. When this happens the business cycle will be heavily damaged and will take many years to reestablish some type of normalcy.

If you think of a cycle as a pendulum swinging back and forth, you must realize that the further it swings to one side, the further it will swing to the other to balance itself. That is what we must realize with the current bubble boom in the financial sectors. The further out of balance they get, the further they will need to swing back to preserve equilibrium. When these bubbles finally pop, the offsetting swing will be monumental. A normal recession of a few years will be exaggerated to a multi-year disaster.

These are the type of conditions that usher in depressions of long duration. This bubble induced mania is far beyond anything experienced in human history and will result in an equally disastrous financial contraction destroying paper assets and making hard assets desirable and difficult to acquire in the aftermath.

In this type of situation, hard assets and a wide knowledge base are as good as it gets. The ownership of capital equipment that produces necessary consumer goods and the ability to finance yourself internally combined with sufficient knowledge to use these resources will provide a safe harbor to get through the difficulties that arise. Becoming your own bank requires the ability to store financial assets such as precious metals and diamonds that have universal value. This is one of the few ways to store wealth that can survive such market destruction.

Usually when market destruction such as we are about to see occurs, the government goes to war in a vain attempt to preserve itself. This causes even more destruction of hard assets and economic freedom that are required to repair the economy. The government often sees this as creative destruction where production is destroyed and must be replaced causing more work and resources to be expended. Destroying labor and hard commodities may spur the economy in the short term but you cannot get wealthy by destroying your limited assets. Unfortunately for the government the economic chaos that will follow the next economic crisis will insure the war economy will be insufficient to spur the economy and return the population to prosperity. The financial system will likely tear itself apart making any sudden recovery impossible.

The result of government and wall street actions will likely result in a multi decade era of depression and hardship that many will be lucky to survive. The government knows this and has increased its internal policing ability to control the population during this turbulent time. In many cases the government will pose more of a threat to the people than the economic conditions.

The only way to see this crisis through to the other side is to have the ability to care for yourself and your family with a minimum of outside help. The more self sufficient you are the better your standard of living will be during this time. The ability to store some wealth in hard assets that you can use such as equipment or weapons and ammo or in precious metals will enable you to get through the difficult times. It is important that you understand that this crisis will not end in a few years but will continue for a substantial amount of time and you must be prepared to act longterm.

This means having the resources to maintain your lifestyle longterm and having sufficient supplies such as food or food production capabilities, medical supplies and sufficient ammo to protect life and limb as the situation dictates. In regard to these things the average person is likely to underestimate the amount of resources they will need to get through a long crisis. When it comes to things such as ammo the average person does not realize how much ammo they can use if they are suddenly forced to defend themselves on a daily basis from hostile forces. A protracted gunfight can consume several hundred rounds of ammo in a single day.

It is with these things in mind that the average person needs to determine what their resources are and insure they are rationed to get through the crisis. This is especially important of non-replaceable resources. Planning for disruptions for two or three decades is not overkill at this point. Those that are best prepared for the future difficulties are most likely to get through it in tact and in the best physical and financial shape.

The Transformation of America Into A Failed State

By: Tom Chatham

When you look at the chaos and destruction going on in the Mid-East today you are looking at the future of America. This is not by mistake or incompetence but by design.

After WWI the British and French created new countries out of the area in the Mid-East and in doing so created future states that would be unstable and ultimately fail to have national cohesion. The unnatural boundaries of these states thrust together people of different beliefs and set the stage for generations of turmoil.

When you look at the things going on in America today it is easy to see the similarities with this plan. To the south, our borders are open and a mass of humanity is flooding in and changing the demographics of the southwest. Further to the north our northern states are being flooded with Muslim refugees and changing the demographics there. At the same time, patriotic Americans are being demonized by the government and along with Christians and veterans are being pushed toward civil war by Government actions.

When you consider the Mid-East and look at the U.S it becomes easy to see the plan unfolding to create chaos here and prevent Americans from uniting against the forces that want to prepare us for subjugation.

Why would anyone want to create a failed state? It became the conclusion of the British elite many years ago that a a failed state was the easiest to control. With the internal population always warring against one another, outside forces could do as they please in the country with little hindrance from a disunited population.

With the U.S. overrun with people from other countries that do not share the same values as Americans and instead practice their own beliefs and continue to speak their own language, it is only a matter of time before America becomes chaotic and infighting begins. This will give cover to others to subjugate and control America that would not be possible by any other means.

Unchecked immigration is the only way to dilute the American demographics enough to cause fighting among diverse groups and make subjugation easier. There has always been animosity among some groups in America but not enough to start a war as most Americans could see that would destroy the good life they were leading. Many Americans know the government is trying to instigate civil war in this country but cannot understand why. Now you see the reasons in a different light and may understand a little better what is happening now.

A united America is the only thing holding back the subjugation of this nation and it is being undermined with many types of subversion that will tear the fabric of this nation and send it on its way to chaos. Everywhere you look, various groups are being pitted against one another, whites against blacks, blacks against Hispanics, liberals against conservatives, Christians against Muslims, homosexuals against heterosexuals, gun owners against gun controllers and cops against citizens just to name a few. It is all orchestrated to bring about one thing, a dysfunctional country that is easy to handle. Its hard to unite and fight the government and bankers when you are busy fighting your neighbors every day.

Many understand the global ponzi scheme of fiat currencies will collapse soon thrusting most people back onto their own resources. During this collapse, global interests cannot risk the potential of citizens to come together under nationalism and work for their own best interests. Citizens must be divided and fighting one another to insure the globalists can sweep in and take total control of populations and resources. A united America with lots of weapons will make this plan impossible. Hence the need for gun control and division.

This is the plan now unfolding in America and the more people that realize it the more control we will retain as things become chaotic. If these groups would understand how they are being used it would be easier to prevent open hostilities that would benefit a select group in the future and ultimately destroy the nation we now know. With the masses under the influence of mainstream media, it is a good bet that many will fall into this globalist trap. The only thing we can do now is prepare for the worst.

America Must Be Destroyed In Order To Save It

By: Tom Chatham

It hurts to think it. It hurts to say it. But there it is. We have passed the point of no return as a nation and only something drastic and destructive will change things. The nation continues to be bled to death by a social class that not only consumes more than they produce but also more than others produce as well. The massive misallocation of wealth by these people is like a parasite sucking its host dry.

This class of people is incapable and unwilling to be educated on the destruction they are causing. They are blind to the fact that the free ride must end sometime. Their only understanding of economics is the amount of the check they receive every month.

The entitlement class does not care that they are killing the goose that lays the golden eggs. And just to be clear, the entitlement class exists at both ends of the spectrum. The very poor and the very rich are equally guilty. The financial pressure felt by our economy, and the middle class producers, is causing it to shrink. As business owners get squeezed they lay off employees to cope with tighter budgets. These actions reduce the tax base that provides the core of entitlement spending. As these people demand more, they are reducing the profits of the business class and reducing spendable income among the working class. At some point this will end as the economy seizes up and stalls.

Only after this happens will the purge of the entitlement class begin. Those that have nothing to offer the economy will wither and die as the resources they need are cut off. It will be loud. It will be messy. It will be bloody. But it must happen at some point in order to purge the system of all of the fat that has built up over the years and caused the lifeblood of the nation to stop flowing.

It is not only an economic war these people wage on this nation but a moral one as well. The excesses these people feel a right to is a result of a deeper rooted problem. They lack the moral underpinnings that have been the foundation of this nation for four hundred years. The intolerance and obscene lifestyle they live has resulted in the destruction of a nation that was created from scratch by godly people to become the world leader and most prosperous in history.

The moral values embedded in this nation were the bedrock that maintained a stable family life and provided the seeds of greatness. These seeds have been slowly poisoned over the years and now the bitter fruits of entitlement are all we are left with. If this nation is to survive and prosper once again it first must be cleansed of the essence of evil that has invaded it at every level.

There are those that reflect on bible prophecy and note the apparent absence of America in the last days according to prophecy. This may be by design and it may be for our benefit when the world is turned upside down. In any WWIII scenario where America is still a major power, it is unlikely we would not be involved in the fighting and not be spared total destruction from nuclear weapons in an all out war. The lingering effects of radioactive contamination would be devastating for years to come. It would make survival and rebuilding difficult if not impossible for the few survivors. If America were embroiled in an internal struggle when WWIII gets under way, it would likely preclude any serious involvement by America and save America from any serious long term destruction from nuclear weapons. We would be a mere backwater and sideshow to the larger conflagration going on in the world.

The festering scabs that entail modern society must be removed before the healing can begin. According to a prophecy by George Washington, America will be invaded and destroyed in what he termed the third great peril. There would be a great struggle against superior forces and eventually victory and peace would return to America after the intervention of heaven. No town, village or city will remain standing in the wake of this conflict. This will be the great cleansing of America in the future if prophecy is correct.

According to the fourth turning, things will get continuously worse until they peak around 2020. As such, Americans should plan for a lengthy period of destruction and deprivation lasting from about 2014 until about 2025. This is the time horizon for short term survival.

It is bound to happen at some point and we should be asking not if it should happen but what we can each do to stay out of the way and insure we are in a position after it happens to help rebuild a rational and sustainable nation again. Things such as our moral underpinnings and work ethic need to be reevaluated. The way we educate our children and conduct business needs to revert to proven systems that in the past helped build a strong nation. The ability to hold a stable medium of exchange that cannot be compromised by a chosen few must be restored. The rational use of our natural resources that provides a sustainable future needs to be explored.

The west line has moved to China and that means the epic growth America once experienced is gone and will never return to previous levels. We must now learn to live with a smaller more sane business model. Just as the nations before us lost the advantage as the west line passed them by, we too must now learn a new social dynamic to survive and prosper in the future. The only alternative is to be permanently impoverished and suffer from our shortcomings as a nation. This would insure the domination and manipulation by outside forces that would treat us as another third world nation to be mined of all resources.

Many times when a building is demolished, the best parts are salvaged to be used again in the new structure. The best parts of America need to be salvaged and used to rebuild a nation the people can once again be proud of. The removal of the sick, lame, lazy and corrupt is at hand and it will not be pretty. It is the normal course of nature to destroy and rebuild over time and our time has come. How we end up after this coming world disaster will depend entirely on us. It cannot be stopped, only dealt with at this point. Are you prepared for that?

Are You Ready?

By: Tom Chatham

With the world situation getting more chaotic and dangerous by the day, it is normal for an alert person to consider the potential dangers ahead and plan to deal with them. When everything goes wrong, what will you need to get by? It is imperative for you to think about that now while you have the ability to think clearly and determine what you may need and how you will get it before something happens.

The recent tensions in the Ukraine are a harbinger of things to come. It is no surprise that China has sided with Russia in the recent actions. Russia needs the port facilities at Sevastopol and China has leased millions of acres of farmland in Ukraine that they do not want to lose use of. No matter what the west decides to do Russia and China may use this opportunity to dump their U.S. treasuries and collapse the dollar. This is even more likely if you believe Obama is working with Putin at this time. The recent economic data shows the economy is much worse than everyone is promoting. Another banking collapse could be in the near future. The ability to blame the demise of the dollar on Russia and China while deflecting blame away from the real culprits, the bankers and politicians, would allow the government to act as a savior to the people when everything collapses and maintain absolute control. If this comes to pass, it will mean dire hardship for those ill prepared to live through it.

It is easy to make a list of potential items but you must have a list of items that is tailored to your specific situation and needs. Only you can know what will be most important to you when all resources are cut off or destroyed in some type of disaster or hostile action. This is the time to think in the extreme. You must analyze your current situation and decide what is most important and necessary to you. You should make a list and seek to stock those items as soon as possible. What are the top ten items you would need or want if you were cut off from stores in an emergency for an extended time? What would be in your top thirty items?

Here is a sample of what someone in a rural area might list as important.

1) Food supply ( canned goods for 180 days)
2) Wood stove
3) Seasoned wood pile
4) Wood cutting tools
5) Hand pump for well
6) Weapon and ammo for self defense and hunting
7) Fuel supply for truck ( homemade fuel production unit for long term)
8) Open pollinated seeds
9) Canning supplies
10) Absorption freezer with 90 day fuel supply

This list is not absolute and may be very different from one family to another but it gives you an idea what to think about. An urban family will stock differently than a suburban family who will stock differently from a rural family. There are some items that may be the same such as food items but they will differ in many ways. A rural family with access to a good heat supply such as a wood stove will be able to cook many types of foods that a city apartment dweller cannot due to lack of fuel. All of these things must be taken into account.

When thinking about specific tasks you must visualize yourself doing the task and identify the items you will need to complete it. How will you get water to mix with the dry foods you have? How will you heat it? How long will your fuel supply last to cook the things you have? What sanitation supplies will you need? How much water will that task require? Will your toilet still flush? What alternate method will you have if the sewer system backs up? The answers to these things will differ depending on where you are and the resources you have.

The world is changing at an ever faster rate and soon the unprepared may find themselves in desperate want of simple everyday items they could have easily stocked if only they had thought about the future. No one knows what the future will actually be like but paying attention to current events can provide a good indication of what is to come. When resources stop flowing and society begins to fail, you must be prepared to take care of yourself. In a national breakdown the cavalry will not be coming any time soon. The size of the population guarantees that. When all else fails, it is up to you. Will you be ready?

Dead Currency Walking

By: Tom Chatham

The Chinese have made no secret of their discontent with the massive money printing by the U.S. that is threatening to diminish their massive holdings. They are currently on a massive buying spree to get every ounce of gold they can as fast as they can. The U.S. interests are holding down the price of PMs in an effort to fool the average person into believing that everything is just fine. This manipulation is playing right into the hands of China as they continue to buy.

The amount of gold moving from London to the east is creating a drain on vaults in the west and it is only a matter of time before they go empty. When that happens, the price of physical will skyrocket and no amount of paper will be able to stop it. The end of the line for paper gold and silver is getting close. With China buying over 1,000 tons of gold every year for the past few years plus what they mine themselves, their vaults are filling up fast. Once they have a sufficient amount, they will complete the destruction of the Dollar with massive dumping of their U.S. bonds.

China has already signaled the end of the dollar when it recently announced it would start invoicing all of its oil imports in Renminbi. It has also announced it will no longer be adding any more foreign reserves to its holdings. This is an indication that China will begin to build up its own middle class to absorb much of its production just as the U.S. did in the last century. This is a clear signal that the loss of reserve currency status for the U.S. is not far off.

As if to make an even bolder statement, China is working on an agreement with Nicaragua to build a canal that rivals the Panama Canal. China is also talking about operating their own oil futures market that will be priced in Yuan. At least half of the OPEC nations have expressed interest in the endeavor.

As if life were not difficult enough in the U.S. right now, the loss of reserve currency status will hit like a financial tsunami that will push Americans over the edge before they know what hit them. This will cause all of our imports to increase in price until we can no longer afford them. This is a fact that few Americans know or understand. Most like to pretend everything will be fine and keep their head in the sand to stop any negative information from getting through but this crisis is going to run up and bite them in the ass whether they want to know or not. This is why so many will lose everything they have in the coming months. They can ignore reality but they will not be able to ignore the consequences of ignoring reality.

There are going to be rough times ahead and most Americans refuse to admit it and prepare for the worst. There has usually been someone or some thing to step in in the past and cushion the fall for most but this time there will be no one there to stop the pain. The death of the dollar will be one of those times in life that everyone will remember for many years to come.

Never Let a Good Crisis Go to Waste

By: Tom Chatham

The government shutdown may be a good time for states to reestablish the authority they have slowly lost over the years. With the federal government in a dysfunctional stupor, the states have the opportunity to step up and take a leadership role that can undermine the federal authority in a number of areas where states should have complete authority. Not only can they regain their constitutional power but it may be a good time to take it one step further.

With all of the misinformation and shenanigans coming out of D.C. this may be the ideal time for states to look seriously at secession. When the federal government finally runs out of money, it will act like a dieing animal and strike out at anything that it can in a desperate act to keep alive. It will become despotic toward the people and the state
governments in an effort to stay in control.

When the federals cease to send out the checks that everyone depends on, the state and local governments will have to deal with the fallout of all of the unsustainable policies embraced at the federal level. For that reason it would benefit the state governments to ready a plan now for taking charge after the federals collapse.

– Establish a state bank in each state

– Convert all state money to gold and silver coinage

- Prepare to assume control of all federal property in the state

- Prepare to assume control of all federal programs the state wants to keep

- Prepare to declare all federal laws null and void

- Coordinate gold and silver valuations with other states

- Prepare national guard units for any federal pushback

- Insure critical infrastructure will continue to operate

The act of storing coinage now will give the state the ability to continue payments to individuals keeping commerce flowing. By stockpiling gold and silver now and doing a revaluation of goods to 1940 levels after a federal failure, the state should have sufficient funds for operations. That means that all prices will need to be revalued to 1940 levels including gold and silver. Someone making $1,000 a year will be making a living wage and gold and silver will be traded at their constitutionally set values. The undervalued PM prices at this time will enable state governments to leverage their funds and actually have more money in a revaluation allowing them to operate until the new economy stabilizes and tax revenues are reestablished at reasonable levels.

The best tax scheme at this juncture would be a sales tax to provide all revenues for the state. A large percentage would go to the county where collected and a smaller portion would go to the state for operations. The county would be responsible for all of its operating costs and government programs and would be limited to its tax receipts. All other taxes would be repealed. This is the most equitable way to finance government.

With state governments in control, the federal government could eventually be reestablished under state supervision and would only have authority over federal military units and ICE agents to insure a protected border and the authority to mint national coinage for circulation. The federal authority would only have funding through tariffs and customs duties as a source of operating revenue.

This idea is a long shot but is possible if sold to the American people in the proper manner. A great deal of education would have to occur to properly inform the populace but nothing is impossible. If the state governments preempt the federals before they declare an emergency, the states would be in a controlling position. It’s nice to dream but we should not let this crisis go to waste. Any power that can be wrestled from the federals at this time is worth the effort.

Government Is a Virus

By: Tom Chatham

Virus – 1) venom, as of a snake. 2) Any of a group of ultramicroscopic infective agents that cause various diseases, as smallpox; specif., a filterable virus. 3) An evil or harmful influence.

There are many things that a government can be called but a virus is the most accurate. It invades a host. It multiplies uncontrollably and degrades the host as it does so. It weakens the host until eventually the host dies. Then it finds a new host to infect. In the end only one can survive.

If people learn only one thing this year, that should be it. When a virus invades your body you must fight it with everything you have or else succumb to the inevitable. The human race is now in an epic battle with the most destructive virus ever created. A mutation that has occurred and is destructive to the whole. A harmful influence that wants to assume complete control. A destructive force that seeks nothing more than to multiply and destroy. That is the essence of government today.

There is a choice. We have a choice. We can lay down and die a horrible death or destroy the virus that seeks to destroy us. Every virus has a cure. An element that it can not overcome. All we need to do is to identify what that elusive cure is and take a good storng dose and we will be on the road to recovery.

Many have become lethargic and succumbed to the idea that the virus is now a permanent part of their lives. They embrace it and try to adapt to its many mutations and uncomfortable symptoms. They fear the powerful medicine that will destroy it. Some have become so consumed with the virus that they fear destroying it will destroy them as well.

There is some truth to that. Once a virus has surpassed a certain point, there can be no recovery for some people even with the proper medicine. These are the ones that resist the need of the society to apply the medicine and save what can be saved. The infected are content to take the rest of society down with them. As the infection sucks the life out of the host, it becomes less able to defend itself from its’ ultimate demise.

The epidemic we now face is at a tipping point. It will either destroy everyone or some will be strong enough to apply the needed element and destroy the infection. The window for using a cure is rapidly closing. As time goes on, the chance of fewer survivors increases.

Many realize they have been invaded by an invasive and destructive species and seek to correct the problem but are unsure what to do. They want relief from this monster that seeks to destroy them and are willing to take a chance on strong medicine without knowing what effect it will have on them. They are becoming sicker and more desperate as time goes on. The virus is becoming stronger and more destructive.

As of lately, I know of only three things that have any effect on this infection. A good prayer, silver and lead, all applied in appropriate doses at the appropriate times. The only thing people must be careful of is that they do not over medicate and make the situation worse. But at this point, that does not seem possible.

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