Category Archives: Economics
By: Tom Chatham
The bulk of the money and credit we use today is created by bankers and politicians. Fiat money is a way for those in control to siphon wealth away from the working class in ways that most people cannot understand. Through taxes, inflation and predatory lending practices the population is systematically impoverished.
It has become difficult if not impossible for the average person to survive without access to money on a daily basis. Everything we do costs money and your access to it is your lifeline. Few people today pay with cash. This makes it easier for those controlling the technology we use to control the amount of access we have to our money. Electronic money also makes it easier to create money and credit out of thin air. The governments monetary policy can make life easy or hard depending on their actions.
Venezuela is a good example today. Most of the population is going hungry because their money is near worthless and they have little of it to buy necessities. Capital controls enacted by the government to keep prices down have done what they always do, created shortages. This is only true for the average person though. The wealthy and well connected can still get anything they want on a daily basis. Those with the money or control do not have to contend with the problems of the masses that rely solely on fiat money.
Those that control the money supply can devalue the currency, reduce access to it or destroy it completely at will. This is the ever present threat that a controlled money supply has on the population. It is for this reason that society needs to realize how much peril they are in and take proactive measures to protect themselves from the actions that will surely come in the future as the economic system collapses from abuse of the monetary system as it is.
Gold and silver have been used as money for 5,000 years and are not controlled by any one person or country. They are the true world currencies that are stable by their very nature and people should once again embrace as the method to free themselves from the control of others. Most people today do not understand gold and silver because they have been slowly removed from the monetary system for the simple reason that people who hold this kind of wealth cannot be completely controlled by those in power.
This kind of wealth cannot be tracked, created out of thin air, or otherwise subverted by individuals because of its universal acceptance and ease of storage and portability. It can be traded between individuals privately, hidden for years just about anywhere and cannot be devalued by overproduction.
There was a man where I grew up that owned a store on the river. He acquired a small pile of gold coins over the years through normal business dealings. When the government called in all the gold in 1933 he kept his gold coins and hid them. In the 1970’s he sold these coins at a greatly inflated price. He was able to do this because the government did not know what he had. That is the beauty of gold and silver and why governments hate them so.
If you can feed yourself, protect yourself and carry wealth in a form that is free of government interference then you are largely beyond the control of the government in many ways and this is what they fear most.
To control the population the government only has to control the money and people will be forced to bow to their will. If people cannot get the things they need they will become desperate and desperate people are ripe for manipulation. This is the danger society faces if they have no alternative currency system in times of unrest. Holding gold and silver give individuals the power to resist government intrusion and manipulation and maintain their freedom.
If every household in America held three ounces of gold and a few dollars in silver currency, the nation would have sufficient real money to function in the absence of fiat monies. This idea may take some time to wrap your brain around but it is really that easy. The difficulty many have is trying to imagine todays prices in fiat money compared to the fiat price of gold and silver.
Many people today, especially government workers, make 50, 100 even 150 thousand dollars a year and the price of goods in the economy reflect those wages. One hundred years ago an average person only made about 600 dollars a year but that money was gold and silver money and the price of goods in the economy reflected those wages. This is what the average person needs to understand.
The people can be controlled by the government by manipulation of the fiat currency and this control will continue and increase in the future. The only way to break free of this manipulation is to hold real money that government cannot control or track. In the future the ability to engage in free market commerce will depend on your ability to hold and use real money that is not controlled by government but by free market principles. Your ability to survive a situation like the one in Venezuela may depend on your ability to pay for goods in gold and silver. That is something that is entirely under your control.
By: Tom Chatham
Many people that want to be prepared for disasters hesitate because of the potential cost of many items. This is because many people look at the ideal amount of materials to have on hand instead of starting with the basics and building on that over time. How many people have you seen following the recent hurricanes that do not have even the most basic things to stay alive?
Every time we have a weather event approaching we see people rush out to spend inordinate amounts of money on things like generators and bottled water when thy could provide these items for much less money if they only took time to plan ahead. When we have a weather event coming I fill a few one gallon jugs with water and set them in the corner in case I need them. Boom, water supply, done, for free. I have several different inverters to use if I need power during an outage. Even a simple plan ahead of time can have a large impact following an event. Here is a small list of things I came up with that a family could store for a small amount of money that would allow them to get through a crisis for 30 days.
2 LED bulbs
300watt power inverter
50’ extension cord
20watt solar panel
4 – 42oz. Oatmeal
10lb. Pancake mix
30 cans vegetables
2 – 30gal. Trash cans
2 – 30gal. food grade plastic liners
2 – 20lb. Propane cylinders filled
Gas grill or propane camp stove
5gal. Sanitation bucket with lid
15 – 5gal. plastic waste bags
4 – rolls toilet paper
The cost of these items will vary depending on how and where you shop. I can purchase all of these items for about $282 dollars. What does this give you?
You can use your car as a generator and battery supply to power a few lights and a TV or radio for a few hours a day. The solar panel allows you to use minimal power without having to run the car thus saving gas which may be hard to get at that point. The use of a larger inverter will allow you to power items such as freezers for a few hours a day to keep items frozen but may require the running of your car a few hours a day to maintain maximum battery charge.
This basic food supply can provide 4 people with two basic meals a day for a month.
The two trash cans can store 60 gallons of water providing ½ gallon a day per person for 4 people for a month. These can be filled from a faucet in the home costing you much less than bottled water from the store which may be in short supply.
The propane and stove allows for cooking of meals for the month. It can also provide a heat source for short periods of time.
The sanitation bucket and liners allows for waste disposal for 4 people for a month when conventional systems may not be functioning.
This is all very basic and does not seem too much for the average person to acquire yet very few people have even these basic items. If everyone stored just these few things there would be much less desperation immediately following a disaster. This list may differ from family to family but it gives you an idea of what things you need to provide for and a basic way to go about it.
Your preparations will vary depending on your particular circumstances. If you live in an apartment and connecting to your car is not an option you may want to buy a deep cycle battery and trickle charger to keep it fully charged. Then when you need it you can hook a 100watt solar panel and inverter to it for a stand alone power supply. Your options are only limited by your finances and imagination.
I can understand people being desperate for food and water if their home was washed away or burned to the ground but many of the desperate people we see still have a home to some extent but had no supplies to get them through the aftermath. It also bothers me to see people standing in line for hours just to buy overpriced bottled water when it is so easy to fill a few containers beforehand. I understand city water is not that good but a simple water filter can take care of that.
From an economic standpoint things are not going to get much better than they are now so you should take this opportunity to prepare at least at a basic level. Your wellbeing and that of your family will almost certainly depend on it in the future at some point.
A wise man learns from his mistakes. A genius learns from the mistakes of others.
By: Tom Chatham
Most people say they want to be free but will also say we must do as we are told. They see government controls as safety from the world surrounding them. You cannot be free and be under someone’s total control at the same time. They force compliance by threatening to take away the things you need.
The more independent from the system you are the less control they have on you. The less stuff you need the less money you will need. The less money you need the less dependant you will be on the source of that money and the financial system in general.
I have said before that in order to solve some of our problems, we need 20% of the people going back to live on small family farms. Living on a small farm reduces the amount of things you are dependant on from others.
A farm provides you with shelter, food, energy, clothing and employment just to name a few. Providing these things for yourself should not be underestimated when it comes to having more freedom. The more power you have over your life the more freedom you have.
You can build a home to live in of any shape and size without many of the rules and regulations that hamper city living. Governments like everything to conform to their visions and they could care less what you want. Many areas force you to build homes of a certain size and type to insure you will be paying sufficient property taxes every year.
On a farm you can grow the types of food you want without all of the pesticides and chemicals now used. You can produce your own electricity with solar and wind or fuels like biodiesel and ethanol from your own crops. You can choose to home school your kids and teach them a vocation at the same time. You can make some of your own clothes from the leather, wool or cotton you produce. You can free yourself from the bondage of working for a company where you could be fired at any time for any reason.
Being more independent does not mean you need a 200 acre farm. A small 5 or 10 acre farm will provide most of the things you need to get by and even excess to sell for income. By taking control of your life you inevitably achieve more freedom as time goes on.
As the government gets deeper into debt they will ultimately become more repressive as they try to strip assets away from individuals in order to stay afloat. The more dependant you are on the system, the easier it will be for them to do this. Those with no other recourse will have to grin and bear it. It does not have to be this way for you if you depend less on the system.
Being independent will allow you to stand your ground as others falter in the face of shortages and chaos. Being independent gives you options that the dependant will not have. You will have strength instead of fear.
When you have freedom you have the ability to follow your conscience instead of doing as you are told. Desperate people will often resort to desperate actions that lead to totalitarian practices. The only weapon that can defeat this is independence from the oppressive system some wish to impose on you.
The amount of freedom you possess is directly correlated to the amount of independence you have from controlled systems that are designed to keep you compliant. In the coming months this will become more evident to many that thought they had freedom just to find it was just an illusion. As governments at all levels become desperate to maintain their control and income, they will devolve into more despotic rule of the masses as they try to strip away the few remaining assets they can get their hands on. Those that do not have the means to resist will lose everything including their lives.
By: Tom Chatham
Rural America is dying a slow and miserable death but only the local inhabitants seem to notice. It was happening slowly but now it is happening faster. The crown jewels of the rural areas, the graduating children, are leaving and taking their potential with them. As rural businesses shut down and opportunities dwindle, younger people are leaving to seek out greener pastures. That is a travesty for small towns and the traditions they have maintained for generations.
There are two main reasons why the youth of America are leaving small towns. One is the economy and the other is the social environment. There are no good jobs and there is nothing to do outside of work. Growing youth need to be kept busy with something and lacking that they will seek out excitement. When the community they grow up in fails to provide them with the opportunities they need they eventually leave and never come back. This is leading to ever smaller towns that are beginning to disappear as the older generation dies off.
If rural communities want to reverse this trend they will have to solve those two problems. They will need to promote locally owned businesses to provide the jobs needed to keep people from moving to cities and they will need to provide a certain amount of entertainment to keep the youth happy.
Multinational companies have stripped the economic base out of small towns as the profits from these businesses get sent to wall street instead of being held locally providing capital for growth and innovation. Smaller local operations employing 5 to 10 people can capitalize on local resources to provide good paying jobs to entice the youth so they can stay local and start a family there. Replacing a few multinational companies with dozens of local operations will make the local area more resilient during economic downturns and insure local access to products produced there.
This type of return to a local economy will happen eventually anyway if economic conditions deteriorate to the point of cutting off goods and services to rural areas. Out of necessity these areas will reconstitute an economic base to provide necessities to the population unless government gets in the way. Multinational companies will pull out and go to where the money is in the world leaving the impoverished towns in their wake after having stripped them economically.
At that point the only question is whether the town is still big enough to rebuild a local economy or if the aging population will simply see the end of the community. With no youth to help rebuild the economy it will likely signal the end.
It has been said that the most important thing a farmer raises are a set of children with a good work ethic and a set of moral values. These two things are something that the current youth is desperately missing in America. As more people migrate to larger cities to find the life they seek, their urban children are left to their own devices as both of their parents work full time to provide a home where children no longer need to have a job and are entertained by the moral codes prevalent in the urban areas. This is creating a generation of entitlement minded youths that provide little value to their communities.
With fewer of these youths growing up in rural areas, the values that helped build this country are becoming obsolete. A new paradigm is building that will ultimately tear this country apart as the old world with its traditions and the new world with its entitlements fight for control. As the song says, you’ve got to stand for something or you’ll fall for anything, is a lesson today’s youth will have to learn through bitter experience.
As rural areas go, so goes the nation. The destruction of our rural heritage will signal the coming of a new paradigm that is not sustainable and will provide no hope for future generations. Unfortunately, that is what certain groups are hoping for. The destruction of the nuclear family will provide a future of chaos and confusion and allow a select few to maintain power over the many. Unless there is a shift back to rural communities and local production soon, the future of this country will be very different from the past, and not for the better.
By: Tom Chatham
The black market is merely the free market operating in the shadows when government rules and regulations become so oppressive that everything begins to seize up and all commerce and production stop. People can be very creative when there are needs to be filled but government has a way of destroying that potential as they try to maintain control as they slowly lose power.
As the government destroys the economy, people will only play along for so long before they seek out the things they need from any source, legal or not. This is where the free market rises up in the shadows to fulfill those needs. Rules and regulations are no substitute for actual goods and services but this is a notion that is lost on politicians.
When goods begin to disappear from the marketplace, people will try to cope until things get better. But as goods get harder to find, not easier, people will seek them out from those that have them to offer. Those with the resources to provide these goods will soon appear in back alleys and the back of vehicles to sell their goods to anyone with the means to buy them.
Prices will often be higher than before due to supply and demand principles. If you have excess resources at this time you will be in a position to operate an underground business that can likely provide you with a good living. For those that desire those resources, a means to pay for them will be required. In most cases the paper currency normally used may be worthless at some point. Those that do not possess an alternative form of money will likely be left in want. This is the cold hard reality we must live with.
For those that do no see potential supply disruptions soon enough and lay in a supply of goods or alternative payment means, they will suffer from lack of goods they need for their very existence. Unfortunately this will be the fate of a majority of the population that expects things to always be as normal or the government to care for them. You do not want to be one of these people.
Setting aside extra supplies is a reasonable thing to do in these uncertain times. Having excess in a few items will allow you to trade for items later that you had not planned on or for services that cannot be stored for later use.
When systems collapse and black markets arise a good means of exchange can be found in gold and silver. These metals are universal stores of value and can be used to get many types of goods and services in desperate times. Those storing even a few silver coins will be in a better position to deal in the black market for items than someone with household items to trade. In desperate times some things are just worth more than others.
By understanding the dynamics that take place in a functioning black market you can position yourself to function with it and insure access to the things you need. Those selling on the black market are providing goods that are difficult to obtain in the legal marketplace. For this reason you will pay a premium for what you want
The prices may not seem fair to you but this is how the free market works and that is what you need to be prepared for if you want to get what you need. That is why you need to store some gold and silver for trade if you ever have to deal on the black market.
Why gold and silver? Because they are already recognized as a universal medium of exchange. Gold and silver are the best all around mediums of trade because they are compact wealth that can be stored for as long as you need.
There are other goods you can store that will be valuable depending on the specific circumstances. Things like storable food, medicine, booze, fuel, tobacco products and chocolate have proven to be good trading mediums in some cases. It all depends on the prevailing circumstances you find yourself in and how long the troubles persist.
When the current bubble economy collapses there will be a transition period between the time the bubbles burst and the time that prices stabilize with the introduction of a new currency. It is in this period that you need to have the means to acquire the goods you need. You must have a physical medium of exchange that exists outside of government and banking control. The current war on cash is a way to stifle any black market activity following a currency crisis keeping people dependent on banking services under government control.
Gold and silver provide a means to operate within a black market but outside of government controls. Those holding gold and silver will also find some very good deals that could set them up for success following stabilization if they have the means to take advantage of these deals during the turmoil. When the normal market collapses for whatever reason, you need to be in a position to function in the world that follows.
By: Tom Chatham
One thing many homesteaders and farmers need is extra income, especially if they are new to the area. It can be difficult getting a market established if you have to compete with others that are veterans to the local market. Producing a product is usually easier than finding enough return customers to make the farm sustainable. In this situation you need to think of unconventional services and products you can provide to fill the financial gap.
Rent RV storage space- There are many people that have RV’s or camper trailers for traveling or even bug out use if the need arises. These people may not have the room to store these items where they live or an economical place to store them. By providing a few parking spaces in an out of the way area on your land you can give them a cheap alternative.
Rent storage lockers- It seems everywhere you go these days you see storage units. One way to separate yourself from the pack is to offer these services to urban and suburban preppers that may not have a place to bug out if things get bad in the cities and need a place for their extra stuff. A 20’ cargo container makes a great storage locker and a potential temporary shelter.
Sell bulk grains to individuals- If you only grow a few acres of grains you want to get the maximum price for them so why not sell directly to people who want to store bulk grains. These people are usually willing to pay prices that are premium for the farmer but still lower than people can get from retailers. If you can process these grains as well into flour, cornmeal or rolled oats, you can get even better prices from potential customers.
Make your farm a vacation destination- If you have sufficient area to park a few RV’s or camping sites, your farm could become a seasonal vacation site for some people. If you can also offer things like a small store, horseback riding, swimming pool, fishing or hiking then you have something to draw people in. You could even offer the “farm experience” where they help slop the pigs, collect eggs or milk the cow.
Bug out site for urban dwellers- You could go one step further with the RV parking space and allow extra footage so a person could park their RV, have a storage unit and have room to plant a garden. This might be very appealing to many preppers that see the need to get out of the cities at some point but have no place to go long term.
Just over an acre of land can provide 12 50’x75’ blocks for rent. A road down the center of the area with blocks on either side and a gravel pad down one side of each block to place the storage container and park the RV is all that is needed. At $75 per month per block, a farmer could potentially make $10,800 per year if all blocks are rented. For the price of a monthly cable bill you could provide someone with storage space and a place to camp anytime they wanted.
When you have to compete with others in a small market, it may be necessary to find that niche that others do not see that you can fill. With the large number of preppers scattered around the country, this segment of society may be a good demographic to target for services they cannot find elsewhere.
We see offers for food storage and survival land for sale but seldom do you see anything in between that people with limited funds can afford. A bugout camping site on a farm may look very appealing to many on a limited budget that see the need. If the need ever arose the farmer would have likeminded people on site that would be of great benefit to him. If the world suddenly turns into a lemon, it would be good to have people around to help make lemonade.
By: Tom Chatham
Many Americans have been in dire straits for the past 8 years since the last economic implosion. Many still do not have full time jobs and some do not even have part time jobs. These people have been left behind while Washington plows ahead as if everything is just fine. To those with government jobs life is just fine. When times are bad it helps to have a guaranteed paycheck regardless if you produce any meaningful work in society.
For those that need employment all they are greeted with is a chorus of go get a job from elitists. That is easier said than done in many cases. When you are confronted with a need to earn money, you need a plan to make it happen. When jobs are hard to find then you need to think outside of the box and create a job for yourself. Having good luck is great but for the rest of us brainstorming is a must to find a niche to fill.
To brainstorm, all you need to do is take a sheet of paper and pencil and begin writing out a list of things you know how to do, things you have the tools to do it with and things you think are an unserved need in your area. Once you have a good long list start looking over it and assess the potential of each item.
Typical ways to make extra money are to offer a service that people in your area may need such as lawn maintenance, tree trimming, small engine repair, auto repair, welding or handy man services. These are some tried and true jobs that work just about anywhere. This is a way to cash in on some of your hobbies or special talents such as wood working, sewing, riding lessons or teaching a musical instrument.
For the last two decades, the internet has provided people with ways to earn extra money through web design, web sites and e commerce sites to name a few. New technology is always welcome when making extra money requires new ideas.
One problem many people will run into these days is the fact that many ways of earning extra income are service related jobs that depend on a good economy and people that have money to spare. When the economy gets bad the types of jobs will shift to things that people must have or will save them money by having you do it.
In a bad economy certain things happen like cars and homes get repossessed. The people who end up with these items may need someone to clean them up for resale, repair items or maintain the location until it is sold. You can sometimes find these kinds of jobs by talking to your local banker. Many people may find these types of jobs distasteful but if you need the money you’ll have to make a decision.
The first things people will seek to satisfy are food, shelter and clothing. These are the primary needs of humans. So in a bad economy something that fills one of these needs is a good choice if you can provide an economical price in your location. Growing some food to sell, converting your garage into a small apartment to rent out or mending clothes are good examples. If you are good with cars you might be able to buy cheap cars to fix up and resell for a small profit. In a bad economy many people will be looking to get a cheap car because they need transportation but cannot afford a newer one.
What services or products do you look for when your money is tight and you need to stretch it out? Is there something there that you can provide for others? We all hope things get better but if history is any indicator, things will likely get much worse before they improve substantially. The west line has shifted from North America to Asia. The west line indicates where the shipping center of the world is at any given time. Once it shifts away from a country that location will suffer the types of economic degradation we are now witnessing in the U.S. We can try to get some of our jobs back but that ship has sailed so we must learn to work with a smaller, slower economy if we are to survive as a nation.
Many people will not want to hear that but the truth hurts. Those that understand the dynamics of this phenomenon will be better able to cope with the new reality and plan their future to deal with it. This means understanding what products and services people will need and having a plan to provide them as the economy continues to be unstable for years to come until some type of equilibrium is achieved.
Many people have dreamed of being their own boss and running their own business. The economy we see unfolding will make it imperative for you to have more control of your income opportunities. Taking some time now to evaluate your current finances and developing a plan to insure your family has the things they will need will determine your standard of living in the coming years. Failure to plan now will likely end in a lower standard of living for you and force you to navigate the many difficulties ahead with far fewer resources.
By: Tom Chatham
We are heading into a new depression. It is not coming. It is already here but we are only in the beginning so it may not be easy for many people to see just yet. Once it is easy to see it will be too late for any meaningful actions to mitigate the effects. Just as you must prepare for a tornado ahead of time, you must prepare for economic conditions early.
We have 20 trillion in debt, over 200 trillion in unfunded liabilities and over a quadrillion in derivatives held by the banks. Our GDP is only about 17 trillion a year and world GDP is only about 60 trillion. It does not take a math wiz to realize that even if we are not paying any interest at all on this massive debt, there is no way to ever pay it all back short of some type of default.
That is what depressions do. They wipe out all of the misallocation of resources and bad debt and provide a reset for the economy. These resets can be relatively easy or they can be very destructive depending on the amount of misallocation that is present in the system. The amount of debt, brought on by decades of unrestricted credit creation, is the largest in history. That means we are in for a very bad ride in the near future.
Much of the money that people think they have is really only made up of digits in some computer somewhere. The banking industry has already taken this money for its own use. To eliminate the need to ever give it back to the rightful owners they must destroy these digits. That is what the new bail-ins are all about. They can at some point just wipe all of those digits out of existence and say tough luck suckers.
The depression of the 1930’s was a deflationary one in nature. People lost their jobs, prices fell and cash was king. People holding bonds did very well. In an inflationary depression, prices rise, people will get paid in increasingly worthless paper and bonds will collapse. Banks will enact bail-ins to stay solvent and people will go broke while holding piles of cash.
In the end the inflationary depression will end with the currency collapsing and people losing everything they have that is not fully owned. Eventually we will see deflation as prices fall due to the destruction of the monetary system. At this point most people will be financially devastated. Those that make it to this point with their wealth in tact will be the new wealthy class.
So how can a person survive something like this? You simply need to focus on the needs of your family over this period of time. If you can provide the needs of your family regardless of the prices at the time, you will make it through the worst of times, This means you need a plan to provide these items to your family whether prices are rising or falling. If you have a years supply of food, it does not matter what the current price is, you will have the means to feed them.
If your home is paid for, your car is paid for and you have a supply of energy or a way to produce it yourself, it will not matter to you how fast prices are changing or how much money you bring home every week. You will be able to live outside of the rapidly changing economy. The rapid changes that will destroy others will only provide you a glancing blow.
Those that survive on credit will be devastated as their access to credit is cut off and they become unable to continue making payments on their possessions. They will be devastated even if they still have a paying job. For those that expect to survive on their savings and pensions, they will find those accounts empty following any bail-ins.
Where you live will also play a major role in how well you survive the depression. What do you think will happen when those dependent multi generational families lose their welfare and food stamps following the breakdown of the credit system and prices rise faster than benefits? The ability to produce some items yourself will also depend on your location and the ability to stay safe.
The whole of the production and distribution system depends on 30 day credit. When the credit system ceases to function, goods will stop being produced and transported. This will lead to high prices and few goods to buy. So even if you have a bag full of money you may not be able to buy what you want at some point.
Just like a tornado that tears through a community, a depression can leave the people without the resources they need unless they have them hidden away safely for future use following the event. This is why having resources, real physical goods, put away now will allow you to thrive when the system fails. When the system resets, you will not get a second chance to do it right. You only have one shot and that requires you to finalize your preparations now while you still can make a difference.
The whole point of preparing for this type of upheaval is to maintain a standard of living that you find acceptable. Lack of preparation in this type of event will likely find you living much poorer than you would like. If you are successful in maintaining your standard of living and preserving your wealth throughout this event you will have won the battle and set yourself up for a better future when things stabilize.
By: Tom Chatham
The people that are preparing for some sort of chaos in their future are only doing the prudent thing considering the environment we are now living in. Those with growing piles of supplies for disasters, war or some type of collapse have made the mental leap that is required to prepare themselves for unknown eventualities that can be life altering. These people have made a plan to survive the difficult times that come and live to tell of it.
What many of these people have not contemplated is the day when the chaos is over and life begins to return to some new type of normalcy. Most people simply plan for chaos and never think about coming out of the other side at some point. While chaos can leave you in an unknown place you should have some idea what you will do when normalcy begins to return to society.
If you planned ahead you probably have a plan to provide necessities such as food and water for the duration of the chaos. Ultimately you will have a plan to provide these things in a sustainable way since you do not know how long the crisis will last. Once society begins to reestablish some sort of order you need to have some type of idea what your next move will be.
If you already have the means to produce food and water sustainably you may then want to move into excess production to trade to others as a way to get other things you need. If the local market is saturated with others like yourself there may not be a big demand for food so you need some other product to trade. These are the things you need to think about for after the chaos.
When society begins to stabilize and rebuild itself people will want many of the things they have been deprived of for the duration of the crisis. As society begins to build up there will be a need for people to produce these things either on a small scale or a large scale depending on the item. This is what your post crisis plan needs to take into account.
The ability to produce these items will require infrastructure of some type. Depending on the type of crisis you went through, many of the resources you may need to produce things will likely have been destroyed. In a worst case scenario you need to have either production equipment that survives the chaos or the ability to make new equipment yourself. This is how a production base will be reestablished in a post crisis era. Those that have this production capability will be very important persons in the community.
This production capability does not have to be a large scale proposition. It can be as simple as a floor loom and spinning wheel to make clothing, a grinder to make flour and meal, wood working tools to make furniture, metal working equipment to make tools or equipment to produce some type of fuel such as alcohol. This production capability also extends to services that people need such as medical services or transportation.
Having some type of production capability is not only good for surviving the crisis but also to have the means to improve living conditions after the worst is over. At some point you will want to once again ply a trade to generate income for your family.
Two hundred years ago many small communities were largely self sufficient. You had farmers producing food, blacksmiths working metal, individuals making cloth, coopers making barrels and wheels and mills grinding wheat and cutting lumber. The whole community worked as a self sufficient unit.
There are those today calling for people to create small groups or communities to ride out any chaos that may come in the future. The primary reason is for collective security in the event society becomes violent and uncontrollable. This same small group can provide the basis for a self sufficient community following an event.
An individual can become self sufficient to some degree but there are only so many hours in a day and many types of basic production requires many hours of work to produce a product. This means that an individual is very limited in the amount of goods he can produce in a given amount of time and thus is limited to the amount of excess production he can produce. With a community of producers, every person can work in the field they are most productive in and increase the overall supply of goods. It is for this reason that small groups will be valuable after an event as well as during.
If each of the members of this group can provide different capabilities to the group as well as production equipment, it will enhance the overall standard of living of the entire group. Maintaining a production capability during the crisis that can be ramped up once conditions have stabilized will benefit those in and around the community and greatly improve conditions in the months following.
While conditions can be violent during a crisis, the lack of resources following the crisis can extend it longer than necessary as people fight for the limited supplies. When people have the things they need they are easier to live with and infighting is greatly reduced. It is for this reason that the ability to produce following a crisis is just as important as during . Having a plan to insure production capability for necessary goods following an event can help to stabilize the situation and eventually normalization to the local area. The Marshal Plan that helped to rebuild Europe following WWII did just that.
For those that believe we are headed for difficult times, they need to think up their own type of local Marshal Plan to help rebuild following an event that could fracture the country and leave behind a third world country in its wake.
By: Tom Chatham
Many people today know there is danger on the horizon and want to do something to prepare for it but lack substantial money to buy what they think they will need. They have scanned many good lists online and know what others are stocking up on. There are many good ideas out there but most of them take a conventional stance in preparing. When everything goes wrong with the economy and you can no longer depend on a regular income you must have a plan to maintain a decent standard of living.
If the day ever comes that you suddenly have no job, your savings and retirement are gone and you have no source of income, what will you do? If you can no longer make your monthly rent or mortgage payment, do you think you will be able to continue living there and for how long? This is a serious question that many people have not contemplated and refuse to even think about. When the greater depression picks up speed, your whole world can be turned upside down overnight.
Those that have made the decision to store emergency supplies may not have contemplated losing their dwelling when it hit’s the fan. Even if you have supplies for your family where will you take them if you lose your home? Have you planned for that eventuality? Even if it is remote you need to think about it.
The first three things people need to satisfy are shelter, food and clothing. Regardless of the situation, these are the first things people will try to get before moving on to other needs such as transportation, security and sanitation to name a few.
As a minimum your 72 hour kit should be upgraded to a two week kit with a good four season tent and cold weather sleeping bags for each person. This will provide you with the minimal level of food and shelter that you should be prepared to provide for your family. Adding to this, you should increase your food reserves to the amount you could transport if you had to move. This should be the minimum resources you have to take care of your family if it all falls apart.
In the event you lose your home and have no place to go you should plan on a more permanent type of shelter that you can feasibly pay for on a limited budget. The following are the six items you should try to acquire to care for your family in a worst case scenario. Even if you declare bankruptcy, in many cases the homestead act will allow you to keep up to $5,000 worth of property. The following list will fall far below that threshold with a little shopping around.
Older pickup truck- You should have a vehicle that is fully owned so there is no chance of losing it if all of your financial assets are lost. You want an older vehicle so you can maintain it yourself to a large degree. Newer vehicles since the mid 1980’s have fuel injection, computers and many electronic sensors that make diagnosis and repair difficult for anyone without the proper equipment. You also want a vehicle that can pull a trailer which leads us to the next item.
Camper trailer- Living in a tent is better than nothing but is still miserable in very cold weather. Having a hard shelter is far more comfortable especially if you have children. You can maintain a good deal of normalcy with a camper and you still maintain your mobility. Trailers can be found very cheaply today and the longer you have to look for one the more likely you will find a good deal.
Food supply- With a hard shelter that is mobile you maintain the ability to store several months of food and move it quickly if needed. You should acquire at least a years food supply even before you have a trailer to carry it all. If you plan to set up for long periods of time at a stationary location you would also benefit from having some basic garden tools and a supply of seeds to extend your food supply.
Energy systems- In a long term depression you will still need a certain amount of energy for certain systems. A wood gasifier will allow you to power your vehicle when fuel is hard to find or too expensive to buy. Your vehicle will also provide you with a power source for electrical power. Solar panels will also prove useful for electrical power over the long term crisis. For heating and cooking, wood stoves are good to have since wood is available in most locations and relatively cheap.
Security- Having a means to protect your family will become necessary if the social conditions deteriorate to the point that large numbers of people seek out resources for survival. A good pump shotgun and at least 500 rounds of ammo will give you a basic level of protection in most circumstances. It will also provide you with the means to hunt for food should it become necessary. A shotgun is a good entry level weapon for someone with little or no experience handling weapons. If finances permit a good pistol and a rifle with a good supply of ammo would be a good investment as well.
Silver-Some wealth preserved in the form of precious metals will give you the ability to buy items in the future that are truly needed. Paper money can lose it’s value in a national crisis but gold and silver will maintain their purchasing power over the long term and provide you with options you would not have otherwise. Having at least $20 face value in junk silver coins is a good start but more is better based on some of the economic signs we are now seeing.
These six things are only one type of plan but they provide you with the means to provide the basics no matter how disruptive things get. If you are unable to service your debts in the future you may end up with only those things you fully own and have physical control over. Regardless of your plans you need to analyze your current situation very carefully to insure you will have the means to provide the basics to your family.
It may be thought as premature by some to make such drastic plans at this time but once crisis strikes it will be too late to get the things you will need to ride out the social disruptions. If the government continues to print money we will eventually lose our reserve currency status and the petrodollar will be destroyed. When that happens inflation will run rampant until the dollar that we know disintegrates into nothing. Before that happens you need to ask yourself some important questions and have good answers now.
What will I do if I lose my job and cannot find another?
How will I continue to pay for food, rent, energy, clothing or medications if my income is cut off?
What will I do if inflation destroys my wages, savings and retirement accounts leaving me with nothing?
Will I be able to stay at my current home if I no longer have any money?
Where will I go if I am forced to leave my home?
What assets do I have that are fully owned?
How can I preserve my wealth if the dollar hyper inflates to nothing?
How will I take care of my family if the banks are closed?
What can I do to earn money if we have another great depression?
This is just a sample of some of the things you will need to know if the worst happens and judging from the current economic numbers we are getting very close to a terminal situation that will destroy most of the wealth that exists in paper and digital form. Continued money printing will only make the situation worse but that is the path of least resistance and the one we are likely to take as a nation of economically illiterate stooges.
If you do not have your economic survival strategy operational at this time you are playing with an economic fire that will burn everything you have in short order. You should not complain about your preps if it does not happen next week or next month. The longer it takes to happen gives you that much more time to make the necessary preparations so use this time wisely.