By: Tom Chatham
One of the problems with the credit industry that we have is the fact that you often pay twice or even three times for the object you want to get. Many people do not take the time to calculate the true cost of the things they buy on credit or simply do not care. They want it now and are content to overpay for it as a result.
Another symptom of the society we now have is the demand for cheap products that only last a few years and seem to self destruct. Repairable metal has given way to disposable plastic and solid wood has given way to pressboard. The era of planned obsolescence has taken its toll on our society and we are poorer as a society as a result.
If you go around in life paying twice as much for everything you get and end up with inferior products that do not last, how can you expect anything but to be poorer. This is a fact that seems lost on the new disposable, must have the latest edition generation. Over the years the forgotten frugal ways of the past offer those in this collapsing financial situation we find ourselves in a way out if they choose.
When you are young you want to have the newest and most fashionable items available because things have become status symbols to our society. To have something old or out of date is repulsive to some. This is the mindset we have been programmed with by those who profit from our impulsive buying habits. We as a people must reprogram ourselves to regain the upper hand and free ourselves from this economic system we have created. We must reprogram ourselves to look upon objects that we use in a functional way rather than a fashionable way.
As I sit here and write this article I do so on my Dell laptop circa 2004 that still serves me well. I purchased an old rocking chair recently made of thick solid wood that cost me all of $25, a chair that would sell for over $100 if bought new today. My want of a good lamp led me to the purchase of an old Aladdin Lincoln Drape lamp for $50 which would have cost me over $150 if bought new. To get the most from the money you work so hard for, you must leverage it in a way that increases your net worth and supplies you with the items that provide the needed function. By doing this you will come ahead faster and with less money and that is crucial in tough economic times.
When you need a lamp, find a used one that you like that will last a lifetime or at least can be repaired if it breaks. Good quality used furniture can be found in many places today that provide the function you need at a cheaper price and much of it is built to last a lifetime. When you prepare to buy a large durable item you should look at it and determine if it is something that you could use and then hand down to the next generation.
Sometimes it is necessary to purchase new but you should always analyze the item for price and durability before making your decision. If it is not possible to buy a new item that you want due to price that is when you should search for good used items that are affordable and durable. By taking this approach you will increase your net worth by paying less and getting better items that will last. If you only have to buy furniture for your home one time in your life, that will save you a lot of money in the long run. If you only buy a car every ten or twenty years and get a used one at that, it will save you thousands that you may not have or can use for other things that you need. This is how you can come ahead in life much faster and with fewer worries and headaches that will keep you awake at night.
We are now in a situation that many younger people should take advantage of to insure a good quality of life in the years to come. Many of those from the older generations are retiring and down sizing their homes. Many of these people bought quality American products to furnish their homes when they were starting their families in the 40’s, 50’s and 60’s. These items are now starting to flow into the used market and those that want quality for a fraction of the price now have a golden opportunity.
One of the greatest stumbling blocks is the programming of the newer generation. Those in the know about what I am saying need to make an effort to educate the next generation before it is too late. If you have children in college and want to help them get a good start in life then why not buy them some good used furniture to give them a helping hand. If things continue to deteriorate that used durable furniture may be all they have to use for many years to come and they will eventually come to appreciate it.
I’ve said before that if you were to go back in time and find yourself living in the 1950’s you might not have all of the technology we have today but you would have a good quality of life even with that old technology and the products they had then. These older products should be a foundation you build on to insure a good quality of life while you work to improve your position. Some of these products are also a good way to store excess wealth until later.
With the decaying economic system we are faced with, it is up to each of us to make the best of what we have, and what we have will likely decrease with the years. By getting the most from our spending dollars we will be in a better position to weather the storm. While you may be able to buy more cheap stuff short term, if it does not last, you will be right back where you started from except without the funds you wasted. It is not always possible to buy the best quality but it should be a top priority when possible and buying used can help you with this. Quality is not expensive, it’s priceless.
By: Tom Chatham
The people that have an understanding of the current financial situation have already begun their plans to stay solvent and provide for their families. They have stored food and seeds, bought some silver or gold coins and looked into alternative sources of power and energy for their homes. These are the logical starting points, but is it enough?
With the downturn in the economy many are doing the best they can to prepare but smaller paychecks, higher taxes and rising prices are making it difficult to stay ahead of the growing problems in the world. Even though you may have a limited amount of money, you need a long range plan to get through the potential troubles ahead.
The best way to navigate economic troubles is to be as free from the economic system as possible. This means you must be able to provide as many of your own goods and infrastructure as possible to limit the needed financial resources you have available. The act of building a self sufficient homestead is a large and often expensive task. It is beyond the ability of most to do it in a short period of time.
For those that see the need for self sufficiency but lack the financial resources, a long range plan must be devised to get you there. In devising a plan you must decide what resources are critical and which are the most readily attainable with the financial resources you have.
A raw piece of land that you can grow food on and build a structure from locally available materials is a critical piece of the plan but you may lack the financial resources at this time to buy what you need. You must look at your financial ability to buy this piece of land and determine how long it will take you to save up to get it. You want to buy it in full with no debt obligations which will make it more difficult.
After determining how long this will take, you must decide if the length of time will leave you vulnerable to economic shocks while saving this money and what the best use of your money short term would be. If it will take you several years to save up the needed money for purchase, some of your funds may be better spent short term on infrastructure to equip your homestead when you finally get it.
The purchase of gardening tools, grain mills, canning supplies, alternate energy systems, carpentry tools and production equipment may offer you more for your money now if prices are rising fast. The stocking of materials you will need later is one way to beat inflation. This must be done as part of a well thought out plan though to insure your goal of purchasing property is not undermined.
Many of these items are useful even if you do not have your own property yet so you will be able to get some use from them and even save some money as a result to put towards your land. If you grind wheat you buy in bulk and can as much as you can from a kitchen garden, it can do a great deal for your cash flow. A wood stove that you can use now and relocate later to your new property can be a good investment. Something as simple as collecting tree limbs from around your yard during the year and from your neighbors providing free fuel may allow you to use much less fuel or electricity during the winter allowing you to put that savings toward your property.
The purchase of production equipment will detract from your land fund but the ability to use that equipment now may allow you to save as much or even more to put into that fund. This will provide a compounding effect if planned well that can see you to your goals even sooner.
You may decide getting some livestock is advantageous. A few pullets and a rooster are easy enough to care for and once moved to your new property you have the capability to hatch more chicks and expand your flock with little expense. The same can be said for pigs. Buying a pair of piglets cheaply several months before you move will provide you with the ability to expand your hog numbers shortly after arriving at your new homestead providing a good source of extra cash. A livestock operation can be expanded very economically once the breeding animals are obtained.
This is the value of having a well thought out plan. It will help you determine what you can purchase now and what financial savings and impact it will have. A good plan is the key to economic security and your future happiness. While you accumulate your tools, you may want to study the economic situation and determine the best method to preserve your savings until you buy your property. If it will take you several years to save enough, during that time high inflation may rob you of a lot of your purchasing power.
You may decide it is best to store this money in gold or silver until it is needed for the purchase. As long as the government continues to print money it is a safe bet that paper assets will take a big hit over time. This may allow you the opportunity to leverage the value of your savings up allowing you to purchase sooner.
What should come first, the land or the tools? This is a question that you will need to answer. If you have the means to buy property now outright it might be the best idea to get it and work on the tools next. If you have property, you have the means to grow food and provide a minimal structure for shelter. In a worse case scenario, this might be the best insurance policy to have especially if you may lose your current home due to job loss or other economic shock. This is what your plan will help you to decide.
Nobody knows better than you what your needs are and what your capabilities are. A sound plan will help you through the difficult times we are facing. No two plans work equally well for everyone so your plan needs to be tailored for you and your circumstances to be most effective. It costs you very little to run some numbers and do some research now but the payoff can be well worth it. .
If you don’t know where to begin, start with this. Make a spreadsheet with all of your monthly purchases and bills. Do this for the whole year and include everything you know you will have to pay during the year such as mortgage, insurance and even clothing. Once you have this list you will see the payments that are somewhat set every month and those that vary. It is the variable items where you will save the money you need for your plan. You must look at these variable items and decide what is more important, entertainment and expensive foods now or financial peace of mind later. You must develop a plan to save as much of your disposable income as possible while still providing those things in a cheaper way such as growing and canning your own food or repairing your clothing instead of just buying something new.
The paradigm we all have built our lives on is coming to an end and those that refuse to plan for the inevitable changes will be devastated. The flexibility you have in future years will determine how well you will adjust and how much pain you will have to endure. Those that have no plan will suffer the most and will find it difficult to lead a normal life. If you have no plan it is not too late but time is very short. You must act now or live with the consequences.
By: Tom Chatham
Recently when the G20 met they discussed plans to deal with the devaluing currencies around the world. The same bankers that created this problem are going to fix it by creating another problem. When the system breaks down they intend to fix it by making the problem bigger.
The idea is to make the IMF the new Global FED and use SDR’s as the new world currency. Once the bankers do this they can start their Ponzi scheme all over again but on a larger scale. What the bankers don’t own when the system fails this time, they figure they will own by the time it fails again. Creating a world currency that is still under their control will allow them to decide who the winners and losers are in the world. They will be able to redistribute the wealth and resources of the world anywhere they want.
The bankers are counting on this to continue their looting of the world and are counting on a gullible public to go along with it. If the public stands by and allows this after the currency fails all I can say is, the people deserve to lose everything they have, which they will. When the currency fails it will mean that everyone that has produced excess over the years, and stored that excess production in the form of fiat currency for future use, will lose it and have to start producing and saving all over again. That will mean that all of your excess production ended up in someone else’s pocket. This is what fiat currencies are designed to do.
For anyone that has been keeping up with the machinations of this group of international swindlers, it is obvious that some sort of self preservation is in order. Before they can destroy the system as we know it, it would be beneficial for local communities to devise a medium of exchange they can use and have it in the wings ready to go when the system breaks. Gold and silver are preferable but most people will not get on board until it is too late so something else may be needed.
If most Americans held just $25 face value in pre ‘65 silver coinage, that would be enough to circulate and establish local commerce. That does not sound like a lot of money but keep in mind, this amount in the 1940’s was a weeks pay ($1,299 annually) to most people and prices reflected that fact. The minimum wage was 40 cents per hour and a quart of milk cost 15 cents. A recalibration of prices to 1940 values would be a starting point to get things moving again. These two small steps by the population could avert disaster and provide a foundation to return to a stable monetary system. Unfortunately, very few Americans will make the small sacrifice now to insure a transition can take place without a great deal of chaos.
Even if there is not enough pre ‘65 coinage available to do this, the purchase of 20 oz of silver bullion by individuals would have the same effect. Getting silver into the hands of as many individuals as possible is the only long term solution to this fiat madness. The use of gold coins in this situation would act as the medium for larger purchases.
The use of local barter currency is an alternative that would work well but would be limited to the locality where issued while silver would be universally accepted. Barter script could be used universally but it would take a great deal of coordination to make it accepted. This would take time and the chaos experienced would make it difficult initially.
When the current fiat currencies fail we must not allow a new fiat currency to take its place. This will be nothing short of knowingly selling ourselves into debt slavery for life. Any attempt to subvert this fiat transition will likely be met with force projected by the surrogates of the ruling class. When this happens you will have to decide how you will deal with these people. The future of this nation will be determined by the actions we take during this crisis.
By: Tom Chatham
Winter is a time of decay and destruction to make way for the coming renewal of spring. Those who fail to prepare for the winter can have a difficult time getting through it. Each season has its’ differences but winter is by far the harshest. Every season has a role to play in the cycle of life.
Strauss and Howe explain the four seasons of human cycles in The Fourth Turning. As it is said, history does not repeat, but it does rhyme. The reason for this are the four cycles we continuously go through. History bears this fact out all too plainly for anyone who cares to look.
We are now in the winter season of the current cycle. This cannot be changed. The generation, born between 1964 and 1984, are the Nomads, the ones with the survival and leadership skills to lead the way in the winter season. This is how it always is.
If they play their roles well, it will usher in a new golden age, like the High we experienced after WW II but if they fail to step forward and do their part, we could begin an era of darkness. The future is not written, but will play out based on human actions that are somewhat consistent. We must not ignore the cycles and prepare for the trying times ahead.
Strauss and Howe explain how human cycles always culminate in the winter season and move us through the gateway into the next cycle. The winter season is a time of hardship and danger. It is a time of crisis. The American Revolution, the Civil War and The Great Depression/WW II were all winter seasons. Each winter season culminates with a great war and this one should be no different. During each of these wars, the newest and most destructive weapons in existence were used to achieve total victory.
With the weapons we now posses, this could make this cycle the most deadly to date. Something noticeable about these three wars is that each was worse than the last. The culminating wars are not the only thing we have to fear in the winter season. The social, political and financial currents that flow through society will be in upheaval as well. As Strauss and Howe have said, you should prepare for the winter season as if it were a winter blizzard that will last seven years. There is still time to prepare for the coming winter cycle but time is short.
Using the Great Depression/WW II as a guide but assuming it will be worse this time will give you an idea of how to prepare yourself and your family. In The American Dream Lost and Rebuilding The Republic I discuss some ways to shield yourself and your family from situations like we are about to face. Those that go into the future with their eyes open and armed with the knowledge of history will be in a position to mold their futures and that of their children. This Fourth Turning is expected to end around 2025 so you should plan accordingly. The bulk of the crisis should be seen between now and 2020.
Another aspect of the two previous winter seasons is the fact that personal liberties and freedom were substantially decreased each time. This winter season could see the final slide into dictatorship or the rebirth of freedom, depending on the will of the people. How the people react to the coming crisis will be the determining factor.
The plans you make now will determine your future and that of your children so due diligence should be taken. As with a winter storm, you should plan for all aspects of this season. You want to insure food, shelter, clothing, energy and medical resources are available to weather the storm. These are not the only things to concern yourself with.
With the passing of winter you need to insure you have the resources to begin the new spring. The seeds to begin anew may be actual seeds, property, gold or silver or equipment to produce the needs of people. The spring should be a time of prosperity and new beginnings so insure you are prepared to take advantage of it. This is something that each and every person must do for themselves. Armed with the knowledge of history, our future will be what we make of it.
Those that understand The West Line and the cycles of history will have a better understanding of the world around them and will have some idea of the changes to come and the actions they must take.
By: Tom Chatham
The number of Americans now receiving government food assistance is over 47 million. If this economic plunge continues as is likely, even more people will go on the government dole. It is a foregone conclusion that the government wants more people dependant on the federal government for their everyday needs. With the current money printing going on it is also a foregone conclusion that our fiat money system will collapse at some point.
As the dollar is devalued watch for the government to increasingly turn to electronic money as a way to keep up with the increased needs for commerce. They will explain how it is much cheaper for the nation than printing all of that paper and minting all of those expensive coins. Also watch for the EBT card, or a new government card to become a multi use card where all government payments and benefits are deposited for use. This will give the government the ability to instantly impose a new electronic currency when the old one breaks down. Those that are not on the government dole will have to sign up for a card or find themselves locked out of most commerce. With the use of mobile devices the advent of a cashless society is much easier and plausible than ever before.
Electronic currencies are a way for those in charge to control everything the public does. With all transactions taking place electronically, the government will know immediately what you are buying and can even control what your electronic currency can buy. The EBT cards now used cannot be used to buy vitamins. That poses the question, why would the government allow the purchase of junk food with these cards but not something that can keep you healthy? That would imply they want a lot of sick, overweight people in this country. That would be beneficial to the pharmaceutical companies and insurance companies which had a hand in writing the Obamacare legislation.
With an EBT card they can control exactly what you are allowed to eat and if the system is expanded to all transactions, it can include what you wear, read, drive, where you live and how much you can save. If they control what you can buy and your card has a use it or loose it financial cap on it, you will be inclined to spend and buy what they want you to buy, eliminating the ability to save for your future.
With an electronic system it will be easier to identify those that are stocking up on certain things which might be considered anti government. With a cashless society the purchase of guns and ammo would be easy to eliminate. With the current war on gardens around the country it would be easy to prevent the purchase of seeds and canning supplies to produce and preserve your own food. With the current state of electronic devices it would be easy for someone’s every move to be tracked continuously. This could be the governments “solution” to the problem they created by printing too much money.
Many people would dismiss these things out of hand but they have some sinister implications. With the current move of the government to the extreme left, these things become more probable every day. Private property and privacy are not something true socialists care about or even understand. It is the cause of the social, economic and environmental destruction we now see around the world.
What should a person who cares about liberty and privacy do? Many are already taking the steps to limit the extent of damage that the coming catastrophe will incur on their lives. The acquisition of gold, silver, diamonds and other hard assets to act as a store of wealth for future use, the storing of food and household goods and the purchase of land and equipment to produce the things they need are all things those paying attention are doing to insure they can care for their families in the future. The acquisition of knowledge once considered common knowledge to our grandparents is being resurrected. The advent of barter groups and currencies to operate outside of the governments control are slowly increasing in numbers and the increasing use of alternate energy systems to insure access to electricity and fuels for vehicles is spreading.
The world is changing and not for the better. The crisis we now find ourselves in will get much worse before it improves. Those that have complete faith in the government and the money printers will never see it coming. Those that bask in the warm glow of government control eventually find themselves consumed in its uncontrolled fires.
By: Tom Chatham – Author of Rebuilding The Republic
Every liberal I see on TV keeps yelling tax the rich more. I don’t think they really understand how that will work so lets look at it. Most rich people get a majority of their income through capital gains so raising the income tax rate will do little. For someone that is mega rich , they don’t need to make any money during the year. They already have enough to live on the rest of their lives, several times over. That being the case, they have no need to make any money from capital gains either.
The rich are currently selling off their paper assets and putting this money into hard assets to preserve it for later. If you have a vault full of gold, you won’t pay any taxes on the gains until you sell it so it can go up in price multiple times without the owner having to pay any annual taxes on it. They can sell off small amounts as they need it and pay only minor taxes every year.
George Lucas recently sold the Star Wars franchise to Disney for mega millions. He sold it now so he could save many millions of dollars in taxes that will take effect next year. Sotheby’s has been selling record amounts of art, jewelry and other tangibles as the owners take advantage of this last opportunity to save on higher taxes. The buyers are buying to lock in their asset values for future use. This is exactly what I mentioned in The American Dream Lost. Between the new taxes and monetary devaluation, the rich will increasingly convert their wealth into hard assets to preserve it. Those that stay in paper assets will have it taxed and devalued away until nothing remains.
This wealth preservation is lost on those who think taxing more will get the money from the rich. When the tax revenues fall, as they always do when something like this is done, the government will have to do something else to appease their base. The only way to get money from someone that has plenty and pays no taxes is to create a new tax. The only tax that accomplishes this is a wealth tax. If you tax someone on their net worth, it makes no difference when or how they got it. This is a tax that would seriously hurt the super rich and is why I think they would not allow it. All of those good liberal millionaires and billionaires that talk of not being taxed enough would change their tune very fast if this type of tax were proposed.
If the rich do not pay then someone must. Even if they did pay, it would not be enough to keep up with government spending. The advent of new taxes such as the VAT or Carbon tax would hit everyone at every level and those in power would see this as preferable to giving up their wealth for redistribution. Keep in mind that half of the elected officials in D.C. are millionaires or multi millionaires.
These taxes are only the beginning. You can also expect them to come after your savings and retirement plans as well. As the government coffers empty they will need more fixes to keep the mill running. The current government will begin to resemble something like the Ottoman Empire where such things as each tree was taxed so most were cut down by the owners to avoid the tax. This type of environment is what causes the massive wealth destruction that impoverishes nations as people destroy assets and capital to avoid the horrendous taxes they cannot afford.
In the end the government will own everything that has not been destroyed. This is the creation of the socialist state where the people rely on government for everyday needs. This is a process that can take years or even decades to complete. It can be done so slowly that most cannot identify the reasons they are becoming impoverished. The ones who fail to see the reasons are the same ones who ignore the warnings of others who see clearly and avoid the losses.
Many now see the writing on the wall and some have even petitioned the White House for session. Many liberals have launched counter petitions to have the secessionists stripped of their citizenship and be deported. I find humor in this train of thought. If you secede you revoke your citizenship and self deport, and you do so while taking the land with you.
The coming years will be difficult and nothing like anyone could ever imagine. As the government becomes more desperate it will take measures that seem illogical and unproductive but it will do so as a means of self preservation. If the people sit idly by and allow the destruction of their economy and private property and do nothing, they deserve what they end up with. That may be nothing more than a hole in the ground, which they will be taxed on.
By: Tom Chatham – Author of Rebuilding The Republic
On this Thanksgiving holiday there are many things for Americans to reflect on. We are seeing the beginnings of a major war in the Middle East, the destruction of our currency, a high unemployment rate that will increase, and hurricane disaster victims that continue to struggle. There are deep divisions in our society at all levels, distrust of the government, talk of secession, the specter of increasing taxes and inflation, the creeping loss of freedom and government scandals that are piling up.
This is the time of the year when we come together and celebrate the family and renew old bonds. We celebrate and give thanks for the many things that we have no matter how little that may be. The laundry list of troubles that we face become insignificant on this day of the year. It is the ties that bind that are important and the happiness of belonging that we share. At least that used to be what Thanksgiving was all about.
The new holiday tradition is all about stuff. People actually camp out in front of stores for days just to be the first one in on black Friday to get the limited sale items. The advent of the consumer rush began long ago as people rushed to buy presents for Christmas. This sacred holiday became all about shopping and buying the best gifts. The act of buying became more important than the holiday a some point. Peace on earth and good will towards men got trampled in the rush to celebrate buying stuff.
With the Christmas holiday successfully debauched by sales it was time to move on to the next victim. Thanksgiving was only a month from Christmas. If people could be convinced to start their holiday cheer a little earlier, it would be a boon for retailers. A whole month of shopping insanity to increase profits, Gee, what a country that would make. A whole month to rack up credit card debt that they could take the next year paying off just to do it again.
The shopping season used to start the day after Thanksgiving but it has at last started creeping into Thanksgiving Day itself. Not content with opening at midnight Thursday, the stores are now opening earlier Thursday night as every retailer tries to get the shoppers money first. It’s all about the money and how much you can get before all of the consumers credit is maxed out. Some stores were putting out Christmas decorations before Halloween this year.
I suppose before long the madness will start on the 4th of July and provide shoppers with six months of shopping glee to spend the increasingly worthless money they will be loaned to put them further into bondage. I think everyone harkens back to the good old days not so much because they were more prosperous but because people were too poor to act this stupid. When a society begins to place a higher priority on the tangible things, like money, than the intangible things like faith and friendship, the society is soon to suffer the indignation of economic failure and societal collapse. Humility is a dish usually served cold and unannounced to the populace. You might try to reflect on that this Thanksgiving Day as you eat your turkey and stuffing. I will as I contemplate the limited shopping I’ll do next month.
By: Tom Chatham – Author of Rebuilding The Republic
Half of the people in America now depend on government money in some form or another to get by from day to day. These payments are a major part of our economy now and the elimination of these payments will be catastrophic to the standard of living that is already falling at a rapid pace. The unsustainable nature of this government money guarantees that it will be cut off at some point in the future.
With the encroachment of government into free markets, we now find ourselves in a spiral of decay that will end with unnecessary poverty for the masses. The word poverty means something different to Americans than it does to everyone else in the world.
Tocqueville once wrote that, “The word poor is used here in a relative, not an absolute sense. Poor men in America would often appear rich in comparison with the poor of Europe.” This is an important distinction that Americans need to realize.
Norman Podhoretz once related a story told to him by a Soviet dissident providing a good illustration of this. ‘It seems the Soviet authorities used to encourage the repeated screening of The Grapes of Wrath, a movie about the Great Depression-era migration of starving farmers from the Dust Bowl to California in their broken-down pickups. But contrary to expectation, what Soviet audiences got from this film was not an impression of how wretched was the plight of the poor in America. Instead they came away marveling that in America, “even the peasants own trucks.”’
Even the “poor” in America have a good standard of living compared to most of the rest of the world, but for many of these people that is not acceptable. Many of the poor in America can boast of having a refrigerator, a TV, a DVD player, a closet full of clothing and some even a car. Until recently poor was a relative term in America but that will change soon. If the free market economy we have is allowed to die, these people will find out what actual poverty is when the government payments they depend on suddenly cease and they are thrown back on their own resources, which are few and far between.
The ultra-liberals in this country always focus on the small number of things that are wrong with the country, while the ultra-conservatives focus on everything that is right with it. The liberals want to destroy all of the things that are right in order to fix the few things that are wrong. This is what will cause the absolute poverty that most Americans will find themselves dealing with and will have no way out of because the free market system that would allow them the freedom to work and be successful will be gone.
This is why Americans have very little time to wake up and develop an economic survival strategy to ride out this storm. Once the gale winds begin to blow it will be too late to amass the resources you need to maintain a reasonable standard of living and care for your family. Once real poverty is a part of the American landscape, it will be decades if ever, before it will improve significantly. Those that rely solely on the government for everyday needs will have a great fall when the support system breaks. Having resources to draw on may not keep you from falling but you will end up on top of the pile instead of on the bottom. Many things in life are out of a persons control but this is one thing that everyone has control over and it is your responsibility.
By: Tom Chatham – Author of The American Dream Lost
Any good farmer knows that a milk cow can be a very profitable addition to a farm. The milk cow, over the course of years, can produce many times its present value in milk products. It is therefore to the farmers advantage to care for the cow to get the most benefit from its production. A good farmer knows that if a milk cow is not pushed for maximum production, it can produce good yields for as many as 10 years and provide good annual income for the farmer with only a few cows. Many farmers who maintain large herds find it is most profitable when they press their cattle for maximum production. This burns out the cows production abilities in a few years but the farmer gains from this increased production and decreased feeding expenses.
This should be a good lesson in economics for Americans. The American taxpayer milk cow has been maintained since 1913 as a good source of income for the government. Each generation of taxpayer has increased the size of the herd making more profits for the corporation. The government helped insure the cows had good pasture and plenty of water to feed on which limited the governments income but made for happy complacent cows. Now that the herd is larger and the governments appetite for large, quick profits is increasing, they need to push for maximum production, or tax money, from the herd. The needs of the government has now surpassed the need for happy, complacent cows and production must be increased to extract the needed funds.
Pastures of clover are now giving way to feedlots full of cheap grain. The taxpayer is being pressed for maximum production and a few wealthy cows are keeping up production for the rest of the herd which is slowly decreasing production. If these wealthy cows were to suddenly leave the feedlot, never to return, for the pastures of clover they want, production would fall and these milk cows would suddenly become more profitable as beef cows to be sold for slaughter.
The wealthy in America, whether you like them or not, pay most of the taxes in this country. When the conditions become such that they refuse to participate in it anymore, they will leave for greener pastures taking their money with them. This will leave a struggling middle class to make up the difference which they cannot possibly do. At some point the government will decide its more profitable to strip them of everything they have left and send them to the poorhouse for the last bit of income they can get. We may be seeing the beginnings of this type of liquidation now. The cost of feed is going up and the income produced is going down so cheaper living quarters may be in the cards for this herd before the final liquidation of all assets.
The taxpayer is important to the government only to the extent that they can provide money for the government largesse. When this is no longer possible the government has no more use for the taxpayer and will stop trying to milk them and just turn them into hamburger. For those that cannot grasp this fact, a study of farming techniques and practices may help to enlighten you to the reality of how the world really works.
By: Tom Chatham
Many people realize that the financial situation in the U.S. is deteriorating, yet these same people continue on with their daily lives assuming things will get better or will not affect them. Those that still have a stream of income are in much better shape than many but they have not thought about the reality of losing that income and what will follow. Those that have lost their income but still have sufficient savings to live on have not thought about the day when that money runs out and what will follow.
When things don’t go as planned, many people refuse to think about the inevitable circumstances that will ultimately follow when they run out of money. This is just so far outside of their comfort zone they refuse to think about it and hope it goes away. You can ignore reality, but you cannot ignore the consequences of ignoring reality. If your financial situation continues to deteriorate, what will you do?
The problem a lot of Americans have is misplaced hope. They hope things will improve before they hit the financial wall. It is good to have hope for the future but it is also important to be realistic and honest with yourself. Those that take an honest look at their financial situation need to determine what financial resources they still have and how long those resources will last. They need to determine what expenses they should eliminate and which ones they cannot do without. They need to look at their current standard of living and determine if it should be reduced to make their resources last longer.
At what point will you cease to have a roof over your head? At what point will you no longer have food to eat? At what point will you no longer be able to afford your car? These are things a person with a diminishing pool of money needs to think about while they still have those resources.
Most people will not want to think about these things because it makes them unhappy. They will continue to live life as normal until the day the money runs out and only then will they begin to think about a plan to deal with their position. By then it is too late to do anything meaningful to improve your situation.
It is important for people in this type of situation to break through these psychological barriers and plan for their future making the best use of their dwindling resources. It is never easy to leave the life you have built and depend on and feel secure with but at some point you will have to cut your losses and move on.
You may have to sell the car you have and pay off the loan and use the remaining funds to buy an older car that you fully own. You may have to dump the home you love and worked hard for and get a smaller place to live that costs much less. You may have to stop buying the frozen foods you like and start cooking more from scratch to save some money.
Before you have to do these things you need to think through the situation and determine what resources you have, what they are worth and at what point you will need to make the decision to downsize and start living leaner. You need to determine what the breaking point will be and prepare yourself mentally for the change. You must do this before all of your resources are gone leaving you little or no ability to continue taking care of yourself. You must have a plan standing by even if it is nothing more than buying a camper trailer and tow vehicle and a supply of food to support you for several months. This becomes even more important if you have a family that depends on you for their everyday needs.
Many Americans like to stretch things out as long as they can hoping things get better. If things never get better, you still need to take care of yourself and your family and to have no plan for this is to fail to take responsibility for your position. As the financial situation in the U.S. becomes worse, it will be ever more important to know exactly where you stand financially and how you will use your resources for the maximum benefit of your family.
You also need to keep in mind that the only resources you can definitely count on in the future are those that you actually have in your own possession. You must also decide what form these financial resources will take. Will it be cash, precious metals, diamonds, food storage or some combination of these things? If you lose your job and rely on savings to take care of everyday needs, what would happen if there was a sudden banking holiday and you had no access to your funds for weeks or months. It could even be a cyber attack that takes the system down. What happens if they lose your banking records or the institution goes bankrupt like MF Global taking your funds with it? FDIC insurance may pay you back but it could take months or years to get your money. What will you do in the mean time?
You need to have a plan to deal with your worst case scenario and know what the breaking point is when you will put your plan into effect. You need to decide when it’s time to go from normal mode to survival mode while you still have the financial resources to make a difference and preserve your quality of life. Too many people waited too long to react to the changing financial situation and many of those people are now homeless or living in tent cities. Don’t let this happen to you.