Wealth Trumps Income

By: Tom Chatham

Richard Russell made an interesting statement recently. He believes wealth trumps income and after thing about it, I have to agree. Many people today do not understand the difference between wealth and income. They think one equates to the other.

When people look at someone else today they immediately try to determine how much they make as a way to determine how wealthy they are. While it is true that the more you make, the easier it is to accumulate wealth, that is not a guaranteed outcome. What you do with your money is more important than how much you make in most cases.

The psychological aspect of income is all most people immediately respond to. A recent study indicates that most women will not even consider dating a man that does not have a steady job. While there are exceptions, this indicates that most women see income as the most important element when it comes to finding a mate. While having a job is one indicator of potential wealth, it is not the only defining one. There are many people today making over $100k per year and find it difficult to survive because they spend more than they make.

On the flip side, how many wealthy old men do you see with beautiful young wives? If you see a well dressed man throwing around hundred dollar bills and getting into a limo, few people ask if he has a job. They only see a wealthy person and respond to that perception. This is getting off the track a bit but is something to think about.

Wealth is a matter of what manages to “stick” to an individual over the course of time. I actually know someone that inherited around 50 million dollars some years ago. Within 10 years it was all gone and he had nothing to show for it. As unbelievable as that sounds, it is a true story.

Someone that makes $10k a year and is careful with their funds can actually have more wealth within a few years than someone making $50k a year and spending freely trying to live like their neighbors. As I have said before, wealth is not the paper assets you have but the physical things you buy with it. This includes knowledge. As Benjamin Franklin once said, “when a man pours his wallet into his head, no one can take it from him”. Knowledge is a form of wealth that you can spend over and over again and never run out.

Getting back to the wealth trumps income statement, it is obvious over time that the amount of money that sticks to you is independent of income and ultimately determines your wealth. This is why wealth is ultimately more important than income on many levels. Your income can be cut off at any time and leave you with nothing but bills you cannot pay but wealth is already in your hands and being used every day in the form of physical goods to maintain your current standard of living.

You don’t need income when you have sufficient real wealth. Real wealth is what allows you to sleep at night no matter how good or bad the economy is. That is something someone with a safe full of gold or a self sufficient homestead knows. Granted, some income is necessary these days if for nothing more than to pay taxes but the need for income is greatly reduced when you have real wealth that provides the things you need to survive from day to day in a nominal state of comfort.

For those that contemplate the future with dread as the economy sinks ever lower, it is important to realize what has the most impact on your economic future. Making sure that much of the income you get will stick will make a larger impact on your standard of living than anything else. You can try to wing it through life as most people do or you can sit down and decide how to leverage the funds you get and amass true wealth to insure you can take care of your family no matter what the economy does in the future. How much you make is not as important as what you do with it.

How Much Are You Worth?

By: Tom Chatham

On the surface that question may make some examine how much wealth they have but in the context of this article it means, how much are you worth in the job market. It is a foregone conclusion that the more a person knows, the more they are worth when it comes to getting a particular job done.

If you wanted to be a high paid athlete, movie star or brain surgeon you must first prove your skills and worth. You cannot expect to start out at the top in most cases. There are a few exceptions from time to time but for most people you need to prove your worth before the big payday comes. This requires knowledge and training.

Government shills keep telling the people that if only they had more education they would be able to find a good job. This is the sick joke that insiders already know and laugh about. Upon closer examination of the current job market you will find that those businesses willing to hire are with few exceptions, looking for cheap labor not necessarily the most educated. Hence the immigration problems we now have. Why move a factory to another country when you can just bring the slave laborers here.

The job situation in the U.S. will not get any better in the years to come and will likely get even worse. Those with the least value in society will have a hard time getting by. By value I mean abilities. This is what people need to focus on if they want to maintain some semblance of a decent standard of living in the future.

Your value in society in the future will depend on the skills and knowledge you have that society will need to get by. Your ability to convert those skills into real goods and services will determine your worth. You need to forget about working for some large company that sees you as expendable and take your value directly to the end user in society. That is where we are headed and the sooner you acclimate your thinking to this type of economy the better off you will be.

It is easy to teach someone to put rod A into slot B on an assembly line but those that can think and be creative in an ever changing environment will be the most sought after by people that need things. Those that can grow healthy food, build furniture and buildings, make cloth and clothing, work metal, butcher meat, heal wounds, make alternate power systems, fix vehicles and a hundred other jobs that are necessary in local communities, will be the people with true worth to society in the future.

When the economy finally gives its last sigh and rolls over in complete dysfunction, those with actual skills will stand alone among the rubble with the knowledge to function. That is where our economy is headed and the more knowledge and skills you have the more likely you will be to continue earning a living. The current economy built on crony capitalism and fiat money has almost come to its inevitable conclusion. When it ends the people will once again look for real things that they need and those that can provide them will be king.

When that day arrives you will be judged by what you can do and sadly many people will have no real value in society. Many of those people will likely meet with a bad end as a result. You have more control over your future than you may think but only if you take the necessary actions and give yourself some value. You determine how valuable you will be in the future and any failure to instill that value will be entirely on you. So, how much are you worth now?

Will They Index Debts?

By: Tom Chatham

For those keeping up with the economic game of bumper cars we are playing, it seems likely that money printing will continue to the point of possible hyperinflation at some point. It is not a foregone conclusion but it seems likely. In that event what is the individual to do?

Some that have seen this possibility have come to realize that holding large amounts of debt before hyperinflation hits would allow them to pay off this debt with basically worthless currency and come out way ahead in the wealth game. That works in theory but how about in reality?

The bankers and politicians control the money supply and are even now cashing in their paper wealth for tangibles that are actually worth something. These people want it all and you can be assured of one thing. They will take the people to the cleaners before they are done with their redistribution of wealth.

Some may find themselves in a position to come ahead during any hyperinflation but they will be few and far between. The majority will not be allowed to come ahead at the bankers expense. The bankers after all created all of this easy credit that everyone uses and the sole purpose is to use it to separate the population from the hard assets that exist.

For those with substantial wealth accumulated, the first priority is to steal that paper wealth from the people. With that wealth gone they will not be able to preserve the hard assets they have that are not fully owned yet. Once that paper wealth is gone the bankers will need to inflate the money supply and force the majority into default on their assets. In a hyperinflation paychecks will not be able to keep up with rising prices and people will slowly fall behind until they lose it all.

For those that continue getting paid every week, the inflating pay will eat away at the debts faster and faster. To avoid losing real money, the bankers may index debts in order to prevent losing the leverage they created from nothing. When you index you basically increase the value of the debt at the same rate as inflation.

For those that say this will not work because they have a contract with the bank fixing the payment I can only say, do you really think these people will let you get over on them. These are the people that own the government and change the rules on a daily basis when it suits their needs. All that needs to happen is the government pass a law allowing the banks to index all debts and it will be a done deal.

I am not saying this will happen, but it could happen so you need to think about that and incorporate it into any plans you make to get through a currency collapse. If your plan is simply to pay off debt with devaluing currency and they index, you will not be in any better position than everyone else.

One way some will come out ahead is by having their excess wealth in precious metals. These assets will increase at or above the rate of inflation and allow the holders to maintain their buying power. The U.S. called in the gold in 1933 and could do it again but it is not likely. The main reason is that in 1933 gold was still part of the money supply and was held by the general population in large amounts. Very few people hold gold today and most of the ones that do are the very people that make the laws and they will not shoot themselves in the foot.

They may place a tax on any precious metals that are sold and use that as a way to control the smaller holders of metals but a house to house confiscation is not likely unless they just happen to target you for some other reason and find some in your possession and decide to take it. Ultimately, any paper currency only has the value that those printing it will give you. Metals can be used worldwide and have universal value. That is what makes metals more appealing than paper.

If currencies are destroyed in the future you can be assured that the perpetrators have a plan in place to prevent the majority from profiting from it on any large scale. Those that create the credit only care about owning everything they can get their hands on. Their greed knows no limits. With ownership of all assets comes complete control of the population. That is the end game for many. For those that see danger on the horizon it only makes sense to look ahead and plan for any contingency that may cost you everything you have.

The Patriot Fighter Support Package

By: Tom Chatham

Something very bad will soon come to pass in this country. When the system collapses and support systems necessary for normal living no longer function adequately, we will devolve into a society with few codes of conduct and an every man for himself attitude. A breakdown of the social system will almost assuredly cause the government to react in a violent fashion toward the civil population in an effort to maintain control and simply survive itself.

When the government engages in open warfare against the population it will likely trigger the activation of patriots across the nation waging unrestricted war on the government and its control apparatus nationwide. This will be a conflagration that consumes men and resources at a vicious pace. Those that are preparing for that fateful day will be limited by their financial resources to prepare for combat with an entity that has vastly superior resources at its disposal. The average person cannot hope to stock all of the supplies necessary for a prolonged fight, so some sort of resupply system needs to be in place before resources are constrained or cut off completely.

In any warfare, the fighters depend on a supply network to keep them in the fight. This network requires many individuals for every trigger puller in the field. When the individual fighters resources are exhausted they will depend on these supplies coming from some other source sympathetic to the cause. The lack of this support will mean that individual fighters will be occupied with finding resources rather than conducting combat operations.

There will likely be many in the area of conflict that wish for patriot victory but lack the ability to fight along side them. These people ,can participate in the cause by becoming a supply source for those on the front lines. This would entail storing extra supplies relevant to the fighters needs in addition to storing supplies for their own use. For a few hundred dollars in extra supplies, the supporters could insure continued fighting ability for many weeks or months. Several supporters for every fighter would mean several years of resupply for the cause.

There are many types of support that individuals can provide for future operations but here are a few logistics you might want to consider.

Food-

Wheat 1bu.
Beans 1bu.
Corn 1bu.
Oats 1 bu.
Rice 36 lbs.
Coconut oil 32 oz.
Milk powder 30 qt.
Brown sugar 4 lbs.
Instant coffee 8 oz.
Hard candy 200pcs.
Teabags 100
Seasalt 2 lbs.
Pepper 4 oz.
Ground cinnamon 4oz.
Multi-vitamins 360 ea.

Medical-

Aspirin 24ea.
Ibuprophen 24 ea.
Triple antibiotic ointment
Bourbon 16 oz.

Armaments-

Ammo 500 rds.
Cleaning eq. ( oil, solvent, pipe cleaners, Q tips, rags, bore snake)
Repair parts

Hygeine-

Soap 12 bars
Toothpaste 6 oz. tube
Toilet paper 4 rolls
Disposable razors 12 ea.
Foot powder 4 oz.

Clothing-

Wool long underwear
Thermal socks 2pr.
Wool gloves
Wool cap
Wool Blanket
Boots
Camo pants/shirt

Disposables-

AA batteries 8ea.
D batteries 8 ea.
Chem lites 24 ea.
550 cord 100’
Duct tape 1 roll
Disposable lighter
Laundry powder 2 lbs.

Anyone storing supplies will need to analyze the needs specific to your area of the country. Variables such as location, food production capability, weapons type and environmental conditions will determine to a large degree what will be stored by locals.

While it may not be possible to store everything that an individual will need, having the basics available to build on will make local foraging for supplies, to flesh out needs, much easier. The storing of bulk grains will solve much of the problems with food supplies and storage. A bushel of grain will go a long way when processed for consumption.

Even if you are not sure at this time if these supplies will be needed it will provide you with extra for your own use or for trade in the event others you wish to help are in desperate need. Everything on the list above is basic and will find use in most locations in any event.

The thought of something requiring this type of preparation is inconceivable to many but the fact remains we now find ourselves in a situation that may require just such forethought to insure a chance of events unfolding in favor of those that support the republic we now inhabit. Chance favors the prepared mind. When the time comes that you may need these things, it may already be too late to get them. Plan ahead now.

If It’s Not A Hard Asset, It’s No Asset

By: Tom Chatham

There are many people that give you a list of things you should have if something bad suddenly happens. There is nothing wrong with that but many people never give much thought as to why those things are valuable during or after a crisis.

How many times has someone told you to hold physical stock certificates or treasuries in case the banks are shut down or keep your credit card paid up just in case you need to make emergency purchases? I’m guessing not very often. Why is that? In normal times it might be a smart thing to do but in a serious crisis that has the capacity to change society, those things become worthless.

Everyone has read the many stories about what would happen if the power grid were to go down. Basically everything that depends on electricity would stop working and become useless. Well, if the banking system were to shut down because of economic collapse, cyber attack or a grid down scenario, everything connected to the banking system would stop working as well.

If you were holding a credit card, what good would it do when it is issued by a bank and depends on credit created by the bank to work? No bank, no credit, no working card. Having a physical stock certificate in hand might seem smart but once the banking system is shut down, what will you do with that piece of paper? Even if you could find someone to buy it, how will you get paid? If the monetary system has collapsed, what medium will you take payment in? Even if you find a person to buy it, and they give you cash, is that medium of exchange going to be worth anything?

That certificate shows you have ownership in a company but with the monetary system shut down, how much will that company be worth as time goes on? If you have money in retirement accounts, savings accounts or checking accounts and the banks shut down, all you have to prove you have money is a monthly statement. You have nothing. Paper assets only have potential value if normalcy returns to the system following a crisis.

In normal times, little pieces of paper or plastic make everyday life possible but when normal times end you need something in hand you can actually use. Keep in mind that any wealth you have invested or in the bank or retirement account is potential wealth. It only becomes actual wealth when you trade it in for something you actually need or want. It only becomes wealth when you trade it for hard assets.

There is a reason people give lists of physical goods to deal with a crisis. You cannot use potential wealth to provide everyday needs, it takes physical goods. Many people like to say you cannot eat gold, well a paper certificate does not make a very good meal either. The primary difference is that gold has a store of value because it takes work to produce it just like copper, nickel or any other metal, it just happens to be worth more because it is harder to produce than others due to lower quantities in the ground.

When potential wealth no longer exists or is unavailable for extraction from the system, if you do not have physical goods on hand to provide for your needs you will suffer. It is that simple. That is the whole idea behind buying physical goods for later use. When you buy and store it you have actual wealth at hand and no counter party risk.

What kinds of hard assets should you hold? That answer will be different for different people. For someone with limited skills it may be necessary to hold things such as precious metals so you will be able to trade for the things you cannot produce yourself. You may also want to hold books that provide you with the knowledge you lack. For someone with skills, some of those hard assets may be held in the form of tools that they can use to perform their skill or service.

There are some hard assets that are universal such as food, water filtration, weapons, energy production equipment, medical supplies or clothing. Some hard assets are durable, they can be reused, such as weapons and water filters and some are expendable, you only use once, such as medical supplies or food. You need to distinguish between the different types of hard assets and hold them in the appropriate quantities as you deem necessary.

One of the primary things people need is shelter. A home could be considered a hard asset but if that home burns down or you do not own it in full it is no longer an asset. As far as that goes, the land under that home is a good hard asset to own in full. All hard assets are not created equal so you need to give each of them the value they deserve.

When fiat currencies fail, one of the only things of value left standing will be hard assets that are needed by individuals for everyday needs. The paper promises will dissolve along with the public confidence in the banking system. One of the other things left will be the knowledge and skills people posses that can be turned into hard assets. In a sense, a knowledgeable person is a hard asset that can be utilized to secure needs and services so don’t overlook that.

A hard asset is something that will maintain its usefulness through good times and bad, especially when normal times turn into chaos. If you have not done so already, now is a good time to determine what hard assets you have that you can depend on when the system fails. Everything works until it doesn’t. This is especially true for ponzi schemes and fiat currencies. Don’t be the last one holding paper when chaos strikes. You may live to regret it.

Jefferson’s Solution to Fix a Broken Republic

By: Tom Chatham

Recently, Casey Research carried an article on some obscure ideas Thomas Jefferson wrote to colleagues about. When the new constitution was finished he knew they had failed to create a perfect document. By 1810 he felt sure that there would be problems stemming from the constitution they had written and set about to provide ideas to fix the inherent problems with it. It has been called Jefferson’s Hundreds.

The regulatory structure we now have has morphed from the small government one that was created into a behemoth that is all encompassing and intrusive into individuals lives. This has come about due to the large voting blocks that have risen to power that now control the national direction. In Virginia, Fairfax County is a good example. This one county has the power to determine the outcome of state elections regardless of the people in the majority of the rest of the state.

The people in flyover country know this problem well. The politics in this nation have led to a small number of cities and states having a disproportionate amount of control over the rest of society. One of the things that keeps this reasonably in check during national elections is the electoral collage. This helps to keep a handfull of states from controlling all the rest but even that system is under attack.

Many now want to eliminate the electoral collage and go to a simple majority vote. If that happens it is easy to look at population densities and determine that only a handful of coastal states would be sufficient to override the will of the rest of the nation. This is close to becoming reality. It is no secret why the Democrats pour so much money into states like California, New York and Illinois. These states have large populations that are beholden to government handouts and they vote appropriately.

To buttress this type of corruption Jefferson suggested dividing the nation into smaller units than even counties. He suggested breaking it down into units of one hundred people each. This hundred person ward would in effect be its own sovereign entity or republic. It would only give the powers to state and federal governments that IT decided to cede to them. This ward would have its own leadership, school, justice of the peace, constable, captain of the militia and infrastructure that it needed to take care of itself.

While I like the idea, I think a unit of 200-300 would be more functional today but the idea is the same. Small groups that retain their full sovereignty would be difficult to corrupt like they are today. Units that small have the advantage of knowing and living near the leadership and can deal with corrupt officials face to face on a daily basis when necessary. One corrupt ward would have little effect on other wards due to their separate governing bodies.

You could still have counties, states and national governing bodies to deal with larger issues but the power would be retained in the individual units. It would also eliminate the redistribution of wealth from producing units to non-producing units which is a major cause of the corruption in society. Every ward would be responsible for its own well being. I also feel giving these individual wards one electoral vote each would go a long way toward more equitable elections at the state and federal level for offices such as President, U.S. Senator, Governor and state attorney general. State senators and representatives and U.S. Representatives could still be elected by majority votes.

If this nation enters another civil war in the future, I believe this type of governing structure will come about out of necessity as communities struggle to survive the destruction and protect themselves from the inevitable lawlessness that would follow. Small communities creating their own laws and institutions to protect their property and way of life is the only way forward if freedom and private property rights are to survive the current course we are now on.

Crony capitalism and rigged elections have led to the reigns of power being concentrated in a small number of hands. This is not only dangerous to society in terms of freedom but also in financial terms as wealth and hard work are siphoned off for the benefit of the few at the cost of the many. The decentralization of power is the only way to remove the sociopaths that now control our destinies. This was evident to Jefferson in his day.

Thomas Jefferson
Letter to William B. Giles, 1825:
I see with the deepest affliction, the rapid strides with which the federal branch of our government is advancing towards the usurpation of all the rights reserved to the States, and the consolidation in itself of all powers, foreign and domestic; and that too, by constructions which, if legitimate, leave no limits to their power.

Today when any county or state attempts to stand up to the corrupt policies dictated to us from national podiums, they are confronted with the only things that can be used against them. They are first threatened with the termination of federal funds and if that does not work the threat of physical force is used. Usually, the simple threat of loss of funds is sufficient to end the revolt as local governments are addicted to federal money like a heroin addict to drugs.

Until local governments free themselves from the financial chains of government subsidies and grants, and they develop their own economies and armed forces, will they be free from the tyranny that seeks to totally subdue them. Only when local communities have the ability to say NO will they regain their birthright.

How Do You Defeat Superior Technology?

By: Tom Chatham

A recent article by Dave Hodges shines a light on a little thought of situation that many people may find themselves in during some future war or civil disturbance. That situation is you coming up against superior technology that you have no defense against. So, how do you deal with this threat?

Lets get right to the chase. Every weapons system is designed to operate in a certain environment and do a certain task within that environment. Because of that, every weapons system has weak points that it cannot hide from once you change that environment.

In WWII Sherman tanks were outmatched by German Tiger tanks. They were able to overcome this disadvantage by superior numbers and by putting the Tigers in situations that gave the Sherman the advantage. The Shermans were smaller and more maneuverable so they would try to engage tigers in dense areas where they could not maneuver and turn their guns because of obstacles. This allowed the Shermans to get behind the tigers and shoot them in their only weak point, their ass. The Tiger might get three Shermans but there was usually a fourth one that managed to get the Tiger.

When radar began to be used in WWII the RAF soon came up against German flak batteries that had radar. To get past this threat they came up with a simple solution. They deployed strips of aluminum foil, code named windows, that confused the radars and allowed the planes to get through. The Germans soon figured out how to deal with this but for a time it made their systems almost useless.

When you are faced with superior weapons you need to do two things.

Determine what its limitations are.

Determine how to attack it in that weak spot.

Those two things are the basis of counter weapons development for centuries. Not long after we got the tank we then developed anti-tank weapons. It’s the same with any new weapons system. Sometimes you need to develop your own superior technology to use against it and sometimes you need to resort to caveman technology.

Killer robots may come after us one day and be able to outrun us but how well do they rappel down a mountain or swim? They may be impervious to rifle bullets but what happens when they are hit by a 6 lb. steel ball from a cannon? A solid object traveling at high speed can do a lot of damage when it hits something. Just look at the DUC rounds the M1 Abrams fires or when a large meteor hits Earth. How do robots handle the bumper of a large truck traveling at high speeds? I have two words for the backyard inventors out there, rail gun.

New optical systems may be able to scan our retinas a mile away and tell who we are but how well do those optical systems work in fog, smoke or covered with mud or paint?

Those new MRAPs may be hard but how well do they operate in woods that have no roads? How well can they drive when all of the windows are covered with paint or other materials that blind them? How fast can they go when they are laying on their side or sitting in three feet of mud? The people in that vehicle must get in at some point and get out at some time. That is a weak point. That vehicle must be refueled at some time. That is a weak point. Are you getting the picture?

How well does any weapons system work when it is hosed down with fuel and ignited? How well does it work without fuel? How well does it work without ammo? How well does it work without repair parts or human operators? How well does it work when it cannot “see”? How well can it operate when it has no traction? How well can it operate in bad weather? What does it take to disable its electronics? What does it take to put a hole in it? What happens to an attack helicopter when a steel cable is suddenly propelled up into its rotors? How well can the operators function when they have no air to breathe?

Every system has a certain environment it works well in. Your job is to get it into a situation that is outside of its operating box so you have the advantage. That is the advantage that humans have over technology. We have the ability to adapt to new situations and learn new tricks. Most weapons systems cannot do that. Even if they can adapt they do not have our imagination. How many weapons systems would think of giving a group of enemy fighters diarrhea to reduce their combat effectiveness?

Our ability to think outside of the box is our greatest advantage. That is what we need to depend on in the days to come. Having weapon systems to fight back with will be important but the most destructive thing we have is our mind. Remember, it was a human that made that new weapon and it will be a human that designs the countermeasure to it.

The Destruction of the Middle Class is Nearing the Final Stages

By: Tom Chatham

The events of the past few months seem astounding when taken in all at once. The plan to destroy the U.S. dollar and the American middle class is moving at an ever increasing speed.

At the recent G20 meeting the nations agreed that bank deposits would no longer be considered money. These bank deposits become the property of the banking institution and as such can be used any way the bank wants. This means that any money you deposit in a bank now is no longer yours but makes you an investor in the bank and subject to lose that money if a banking crisis takes down the bank.

The spending bill just passed by congress makes the American taxpayer responsible for any derivatives loses that banks may suffer. These derivative holders now have first priority when any funds are paid out and depositors are relegated to last place. FDIC insurance will have to pay out these funds but it has no where near enough money to pay the more than 300 trillion in losses that will be suffered in a banking crisis. That means any depositor has little hope of getting anything back. In order for depositors to get anything back massive money printing would have to take place making any payout amount to only pennies on the dollar.

And if you don’t think there is any danger of a banking crisis in America you may want to keep in mind that the Treasury Dept. has recently ordered $200k worth of 72 hr emergency kits for dispersion to every major bank in America. These are known by many as bug-out-bags and are used to support individuals when disaster strikes and they have to care for themselves for the first few days of crisis.

New legislation now gives pension plans the ability to cut benefits to pensioners in the future making the future welfare of these people uncertain. They say it is necessary to prevent these funds from going bankrupt. It will “apply to multi-employer pensions, where a group of businesses in the same industry join forces with unions to provide pension coverage for employees. The plans cover some 10 million U.S. workers,” You may be happy to know this will not affect congressional pensions, as long as they are funded by the taxpayers.

The sanctions being placed on Russia are beginning to destabilize the world in many ways. The sudden drop in oil prices will send ripples through many foreign nations and cause an already tense situation to become highly flammable. It seems this is what is wanted to provoke a new world war and hide the complicity of bankers and politicians in the coming destruction of the economy.

For the past few years those elite with knowledge of the coming monetary destruction have been putting their fiat dollars into any hard assets they can find. The recent record prices paid at auction for collectables is just one more indication that those in the know are moving into hard assets as fast as they can to preserve their wealth.

This diversification includes precious metals and land as well. I believe when there are no more metals or suitable properties available for purchase, these entities in control of this game will pull the plug and let everything collapse. Those holding fiat paper, electrons or other paper promises will be devastated as those assets evaporate into thin air.

You may feel some security knowing you have a good job but among the deposits that disappear will be billions in commercial accounts that belong to businesses. When these businesses lose this money, many will likely close destroying many jobs in the process. This will send ripples through the transportation, production and distribution system when it happens. In an economy made up of 70% consumer spending, this will be fast and devastating to those with few resources to fall back on when it happens.

There are three lessons that many people will learn in the coming months. If you do not have it already you may not be able to get it. If you do not have it physically in your hands you do not own it. If you cannot protect it you will not have it for long.

The War of Northern Aggression Revisited

By: Tom Chatham

 

In the opening scenes of Gone With The Wind, Rhett Butler stated that the only things the south had plenty of was slaves and cotton. As inflammatory as that may sound, he was only stating an unspoken truth. The north had massive steel mills, factories, rail roads and raw materials to wage an effective fight. The south was lacking in all of these areas. To anyone contemplating a civil war, these lessons should not be lost to history.

As I’ve written about before, you need more than just soldiers to fight a war. You need a good logistics base to support those fighters. For every trigger puller on the front line you have ten to fifteen support troops behind the lines supplying those troops. Behind those support troops you have many civilians that produce the goods that are used by the troops.

I keep hearing people ask why these so called patriots are not out protesting the government and trying to change things in this country. I think the answer may be that these patriots know history and do not want to repeat past failures. They know this will probably end in all out war with the government before it is over. That means these people are using this lull before the storm to actively prepare their logistics base and coordinate future needs while they can. They cannot do that if they put a target on their back by being out in public saying what they really think.

When the south finally capitulated, they were short of war materials and literally starving to death. That fact needs to sink in real good with those that don’t know history and expect some sort of conflict in this nation in the future. This is why prepping is so important today. Simply having some food and ammo may not be enough if you are one of the many that will become the front line in the future.

If another civil war breaks out in America, the front line fighters may not have the luxury of large support elements. They may be forced to be their own support and as such need to store and develop the necessary logistics base they can draw on when the time comes. This includes the ability to produce basic and critical supplies from scratch at their location.

This is one reason I believe the government is trying very hard to prevent self sufficiency in this nation at this time. They want to take the guns, stop the storing of food and medical supplies and stop people from growing their own food. These are the logistics that will be needed in a national conflagration.

It is also important for those future fighters to realize that these are the things that the government fighters will also need. A large mechanized force requires food, fuel and ammo on a continuous basis. If that logistics train is disrupted or stopped, that force becomes an ineffective rabble with limited ability. If you don’t understand that just ask any German that fought at Stalingrad. Once they lost their ability to resupply their troops the men were finished.

The south did not lose the war because they were not dedicated enough or brave enough, they lost because they were overwhelmed by the enemy’s superior logistics. This is how a future aggressor will attempt to take control of this country. They will attempt to wear us down and bleed us dry until we no longer have the ability to fight. The only way to prevent that type of scenario is for Americans to have their own logistics base in place to maintain a fighting ability for an indefinite period of time. That will take planning and investment of time and resources. So, to all of you who are not busy protesting on the latest outrage from Washington, I understand. Just keep building and stacking.

In Want of A Nail

By: Tom Chatham

So, you’ve got all of your supplies ready for anything that happens in the future. You have plans and backup plans and you feel ready for anything. You have an ample supply of food and the means to produce more. You have weapons, land, communication systems, backup power systems and alternative energy supplies. You have a good library, precious metals and ample medical resources. So, you think you have everything covered within reason, right?

What will you do when your generator stops? Do you have spare parts to fix it? Do you have plugs and oil and supplies to do routine maintenance on it for years to come to keep it operating?

You have a good rifle and a pile of ammo and you can hit targets out to 500 yards with ease. What will you do if your firing pin or a spring breaks? Do you have critical repair parts to insure that weapon will continue to be useful when you need it most?

Something as simple as wheel bearing grease can cause a catastrophic failure if you don’t have any to keep your equipment lubricated. Sure you have fuel and alternative fuel systems to power your equipment but do you have the repair parts to keep those machines running or rebuild the engine if necessary?

Some years ago you could not drive down the road without getting a windshield full of bugs but because of all of the pesticides in use today the bug population has been almost eliminated. When everything stops and those pesticides are no longer available on large scale those bug populations will suddenly increase to previous levels. Do you have the materials to protect your garden from this threat?

Many people now have the bug guy spray around their home every year to prevent roaches and termites from getting a foothold and causing serious damage. What will you do when you can no longer get those services?

You did a lot of planning and you know your water will still flow no matter what happens in the world but did you stop planning there? What will you do when your faucet or your pipe starts leaking? Do you have washers, extra pipe or connectors to fix that problem?

When a storm blows through in the future and breaks a window or makes a hole in the roof, can you fix that? You have a woodstove and a good supply of wood and everything to cut that wood but what happens when your ax handle breaks? Can you fix that?

In the future, if you are using your woodstove every day, will you be able to keep your chimney clean? A chimney fire is unusual but can be devastating if it happens and you have no fire dept. to call.

It is impossible for the average person to plan for everything but there are certain things that you need to think about in depth and be aware of in the event you cannot get replacement parts or services in the future.

Simply having some woodworking tools and some hardware items can go a long way to maintaining your tools and home. Having a few key repair parts for your machines can be a lifesaver in a drawn out situation where you cannot find the parts you need. The fact that many parts are now made overseas will make any transportation or supply disruptions even worse. A loss of currency reserve status for the U.S. would make any imports much more expensive even if you could still get them.

There are so many weak links in our current supply system that it should make the average American very uneasy. No one knows for sure what the future holds in store for us but the trends are developing and the picture they are forming is not good.

Some economists have predicted a period of deflation prior to a hyperinflation developing in America. The current drop in commodity prices should be taken with a grain of salt and people should use this drop to bulk up their supplies just in case the current “prosperity” does not last.

When disaster strikes, many realize there was something else they should have had to get through it. Even a prepared person never has everything they would like to have during difficult times but that list can be minimized by careful reflection on their future needs in the dysfunctional world they may one day find themselves in.

Follow

Get every new post delivered to your Inbox.

Join 106 other followers