By: Tom Chatham
It has been a long wait for the silver bugs but the future may indeed see them richly rewarded for all of their patience. Those that have held on are now about to see the end game unfold.
There have been many projections on the highs that silver could hit in the future ranging from a low of $100 to highs of $1,000.
It should be noted that much of the above ground silver has been used in the past few decades for industrial purposes that leave most of that silver not reclaimed due to the small amounts used in individual products. The plans of China to increase solar production will take a great deal of future silver production to power their energy grid.
The current production has silver at about a 10 to 1 ratio of gold. On the surface this means that silver should be valued at least at the 10/1 ratio. The current disproportionate ratio of 78/1 will insure silver rises at a higher percentage than gold during the current bull market.
If current projections of $10,000 gold are anywhere near correct that would put silver in the $1,000 range. Regardless of the ultimate price, gold and silver will rise substantially as chaos enters the markets. It is this chaos that will also require people to store the necessary resources to care for their families until the chaos subsides. Gold and silver holdings do not insure access to resources during chaos but will be valuable afterward to take advantage of good deals due to revaluations in the economy.
In times like this when most people are at risk of losing much of their wealth, the current low price of silver can help the average person not only preserve what little wealth they have but even increase it many fold to offset the failure of incomes to keep up with real inflation over the past few decades.
This is a once in a lifetime opportunity to beat the bankers at their own game. When the economic leverage shifts back from the paper wealth to real money those holding real money will reap the benefits. Even small holdings of silver will help individuals to insure their wealth will remain in tact after this economic cycle comes to an end.
Gold and silver are a form of escape hatch in the banker controlled economic system we are forced to play in. When they pull the plug on the current paper wealth, those that know no better will cling to those worthless paper assets to the very end never dreaming they will someday be totally worthless. The very few that understand what is taking place will use that escape hatch to save what they have so they can continue to prosper in the future.
The bankers know of this escape hatch but they have few ways to close it without alerting the people so they use their position and trust to convince the population this doorway is dangerous. They call it a barbarous relic that has no place in a modern society. They do this because they know the truth. If they can convince the people long enough, by the time people know the truth it will be too late to exit this door.
Those that have already taken this door out of the system are now looking in at the fire that is about to burn the house down. When the rush to the exits happen, many will not make it out. There is still time to get out ahead of the crowd but time is now very short. Any more procrastination on your part will likely be lethal to your economic health. On this Independence day free yourself from the banker controlled system by purchasing some real money and renew your declaration of freedom.
By: Tom Chatham
With the economic conditions becoming ever worse around the world every day it is becoming harder for the average person to build or buy large homes that make their owners feel successful. In recent decades it has become the norm to keep up with the neighbors in consumer spending. Nobody wants to be the neighbor that has the smaller home, the older car or an older phone. Competition has gone to extreme limits and now those limits are becoming unsustainable as people find themselves working lower wage jobs part time.
A home used to be a shelter for your family and nothing more but now they are seen as a savings vessel and a trophy to hold up to society as a whole. This mantra is coming to a catastrophic end very soon as those that still have a good job will soon find they can no longer keep up with the payments as society becomes mired in massive inflation and later deflation destroying everything not fully owned that can be protected from theft by politicians and bandits alike.
The more you have and the bigger it is the harder it will be to protect it in the future. You cannot simply pick up your 2,000sq.ft. home and move it when necessary in a turbulent environment. That elephant becomes a ball and chain. That’s even if you own it outright which most people do not. All of the years of payments you put into it could easily be lost through no fault of your own even though you did everything right.
When everything goes wrong in the economy you will still need a place to call home to provide shelter for your family. Being comfortable does not mean being big. A small home can provide everything a family needs to get by whether times are good or bad. It will be less costly to build, to maintain and cost less in taxes every year.
Most people can not fathom having to live in the small homes that many of our grandparents called home. That mentality will have to change and will be for the better as it will allow people to relearn the difference between needs and wants.
A small cottage or cabin can provide everything a family needs to have a good life. When times are good and they have extra money they will be able to save it rather than pour it into an asset that can go down faster than it goes up. Having actual savings is very important especially if credit is difficult to obtain.
A small home of only a few hundred square feet can be used as a vacation spot, a primary residence or an opportunity to rent it out for additional income. It can also provide a struggling millennial with a low wage job the ability to actually own a home now. This last fact will become more important as time goes on. Not only that but the ability for you to own a home free and clear will alleviate the anxiety if you come on hard times and risk losing your primary home. Knowing you still have a place to go that you can afford to maintain will be worth a great deal to you and your family.
Most people do not realize how cheap a small home can be built for. A great deal of the expense of a home comes from the size, the zoning regulations and the cost of labor to build it. Not to mention the cost of land in certain markets. A small home that can be built by you from kit form is a poor persons dream. It only requires a person to think in terms of function rather than size and looks.
A small home is a way for people that are marginally getting by to survive until they can improve their situation. Small cabin kits can be found for as little as $7,000 that two people can assemble in a few days. Imagine being able to buy a small piece of rural land, put in a well and septic system and build a livable home on it all for less than the cost of a modern luxury car. It’s possible in many areas.
Here is just one place where you can find prefab cabin kits for very little. Getaway Prefab Wooden Cabin Kit bzbcabinsandoutdoors.net
Even if you decide to build from scratch yourself these kits can give you some good ideas to start from.
In the coming months having a fully owned shelter you can depend on will become harder as the economy gets worse and people lose much of the money they think they have. It only takes a second for all of those digits in your banks computer to disappear forever.
Even if you have a good shelter now a cabin can provide you with an income producing opportunity that should not be overlooked. Also for those that have collage aged kids that are probably having a hard time in today’s economy, you can help them get a good start by helping to provide them with a small paid for home like a cabin that they can call their own. Having a paid for home starting out in life can open up many opportunities for a young adult. The money they can save even over a few years can be very helpful.
A small home provides a stepping stone to better things in the future but if things go terribly wrong in the economy you will have a place to go no matter what. Starting out small and working up is the way people have lived for centuries. It is only recently that people have been exposed to easy credit that has allowed them to live beyond their means and the future collapse of this credit will force people to return to a saner, more reality based existence. Start small, live within your means and follow your dreams and you may someday have the mansion on the hill to show for all of your effort.
By: Tom Chatham
The forces are mounting that will eventually overwhelm most Americans and send their standard of living to unknown depths. Americans that have only known the post WWII prosperity are ill equipped and educated to deal with depression level living. Easy credit and instant gratification have created a nation of whining, self absorbed, entitlement minded people with no moral or mental toughness.
Doug Casey believes we are headed for what he calls a super depression created by the ending of a debt super cycle. The bigger the debt cycle the bigger the depression that follows. That’s how reality works and most people are not prepared for reality.
When this depression, which has already started, gets momentum, it will overwhelm the plans of a society that is expecting to get things like social security, pensions and payouts from retirement plans they have paid into for many years. All of those things will disappear almost overnight and leave society gasping and stupefied over what to do. Their reactions will be to yell and scream and try to identify who to blame but the only person they should blame is the one in the mirror.
Many very smart people have raised the alarm and done their best to warn the sleeping public, but those slumbering masses have ignored the warnings and hit the snooze button one more time. The masses do not understand economics, do not want to understand economics and they will pay dearly for that ignorance in the coming days.
When the real unemployment rate becomes common knowledge as it increases substantially, people will be left to survive on what resources they have saved up outside the banking system that cannot be stolen by the politicians and bankers. That is a key point here. The assets you have outside the system that cannot be stolen from you with a few key strokes on some computer.
Those hoping for some miraculous event that will send the U.S. back to the days of manufacturing might and jobs for all will never see it happen. Those days are gone. The west line theory tells us our economy will slow down and become more modest as the shipping center of the world moves west to the next powerhouse region which is Asia. This is what history teaches us.
When people suddenly wake up one morning and they have no job, their retirement is gone and they need to care for their family, what will they do? When government services have collapsed and they suddenly realize they are now living in a third world country with few government services, what will they do? When the banks are closed and only a select few connected people have any type of money or access to goods, what will they do?
This is the reality that many people will face in the future and they have no idea how bad it can get. They refuse to contemplate the harsh reality they will be living in and take steps to mitigate the effects. To do so would be to acknowledge it could happen and they are taking personal responsibility. Personal responsibility is a dirty phrase in today’s entitlement society. To see some of the effects one only has to look at the collapse of society in Venezuela today to see what awaits.
When it happens it will all fall back to you to take responsibility for your family and take care of them for the duration. To do that you need to plan now for that eventuality and build up the resources you will need to provide food, shelter, clothing and security when the system fails to do it for you. You need to be Noah on his ark not the people watching as he floated away.
Having resources stored up is a must but it may not get you all the way through if the situation lasts for many years. That is why you need some type of plan to replace those resources as time goes by and have some way to generate some type of income or at least items to trade. Usable goods are for the short term and things like gold ,silver and production equipment are for the long term to help you get through the crisis with the least amount of pain.
Even with proper planning the days ahead will not be easy as the standard of living of society will fall substantially to levels only seen in failed third world countries or old pictures. The assets actually owned by people today is very small compared to how they live. They will default on their home loan, their car loan, and their credit card debt leaving them with very few real possessions and few ways to move what they have left even if they have some place to go. Ultimately these people will become the new serfs to the wealthy class that will take possession of anything of value. Feudalism will once again rule.
The lack of planning by society will make this a reality if it is allowed. What will you do when everything you have worked a lifetime for is suddenly taken away? Do you have a plan to keep what you have? Do you have a plan to make money when you cannot find a job? Do you have a way to take care of your family until things stabilize? Do you have a home you will not lose if the whole system breaks down? What will you do if electricity or fuel is too expensive to buy or not available to the general population? These are the questions you should be asking yourself now and you better have a good answer because your family will be asking them when the greater depression sets in.
By: Tom Chatham
The purchasing power of Americans has been unequalled for the past several decades. This has been made possible by the high paying jobs created by our manufacturing sector. These jobs insured a wealthy middle class that could buy anything they wanted.
These high paying jobs meant that some of the wealth created by making things went to the workers. Before long, corporations began working on ways to keep more of that wealth. Enter the free trade agreement. By drafting and passing a number of free trade agreements, the corporations created a way to make their goods cheaper with overseas labor and keep more of the profit for themselves and their Wall Street owners. The deep pockets of the middle class began to dry up.
A thinking person might eventually come to the conclusion that destroying middle class jobs and the purchasing power of the middle class would be shooting themselves in the foot. With less income and purchasing power, the corporations would create a shrinking American market for themselves eventually. That is what we are seeing now.
So, what do you do when your cash cow begins to dry up? You turn it into hamburger. Just like all of the other third world countries that provided raw materials for these corporations to prosper, America will now become a supplier of raw materials for the next rising power to use. That rising power will likely be China with its large untapped populace. They have the gold and the manufacturing capability now. All they need is a good supply of raw materials and they can develop their own middle class and the corporations will be in the clover once again.
America is in debt up to its eyeballs but we still have large amounts of natural resources. Multinational corporations are chomping at the bit to get their hands on these resources so they can renew their ponzi economic model with another rising economy.
Between here and there they must break the American consumer and take everything they have and then get them out of the way so the strip mining can begin in earnest. When you look at the larger picture that is taking shape, that is where we are headed. Chinese corporations are gobbling up everything they can get their hands on right now all over the world including in America.
Those who say the U.S. will be invaded are a little late. The invasion has already started and the invaders have taken the form of corporations. If anything gets in the way of this resource extraction, that is when you will see the troops arrive under some pretence to help the people. Actually their main goal will be to secure the resources.
When troops start arriving that is when Americans will start fighting back by any means at their disposal. For all intents and purposes it will be an all out war on American soil. Regardless of what people perceive the reasons for this war to be it will ultimately be for resources.
You may ask why they do not just keep America prosperous and continue the gravy train. The main reason is that entitlement programs have gotten out of control. They are now spending too much money supporting people who do not work or produce any value in society. To simply take this money away would cause the same chaos that will erupt by destroying the economy but economic destruction will enable them to secure the resources with few people realizing what is really happening. Its all about controlling the amount of blowback from the people and the best way to redirect and contain it.
In the end America will become a third world economy or something worse. The people have the means to retain control of the nation and someday rebuild some of our infrastructure but that depends on the people and how much they want to remain free and in control of their future. As long as half of the population can get paid to sit at home and do nothing we will not change the course we are on. Change will only come when it is forced on the people and they decide to set a new course. Unfortunately, many may elect to do as they are told by the government and hope the free stuff will once again start to flow. Those people will be very disappointed, at least as long as they remain alive.
By: Tom Chatham
When a national currency collapses, the government goes into survival mode and does what is necessary to insure its continued existence. The state power becomes all important and citizens become expendable. The state exists for it’s own fulfillment.
When the monetary system collapses along with the banks, the government will still need a way to pay government employees to insure they continue enforcing the governments will. If all government employees suddenly decided to stay home the few officials that remained at their desk would be ordering 300 million people around with no way to enforce their orders. To maintain control of the population it is necessary for government minions to continue doing their job of enforcement.
This means the government would need the means to continue fulfilling the needs of government employees to insure their compliance and obedience. As long as people get the things they need to survive day to day they will continue to do as ordered to continue that supply.
The government would need to insure that a payment system and banking system would remain functioning after a collapse. The banking system may not look like the current one but something would have to take it’s place. Once the currency has failed it would be necessary for the government to issue a new currency. It may not be accepted by the majority but it is only necessary for it to be accepted by the government minions. This would allow the government to remain in control.
If the government employees know they will still be able to get food, clothing, gas and other items they need when normal citizens cannot, they will be inclined to stay on the job and do the governments bidding in order to maintain their standard of living. This would be a necessary control mechanism in the event of a collapse.
Once the banks collapse along with the currency, the FED could take over any bank branches necessary under the control of the Fed and issue the new currency through them. There may be some form of physical currency or it could be digital. Either way the government would have control over who gets any in the beginning.
The government would likely confiscate any resources it needed to fill “government stores” for the purpose of supplying government employees. The rest of the population would be left to get by on their own. In this event EO 13603 becomes more clear as the mechanism to take whatever the government needs to fill these stores and keep their people supplied. In a collapse physical goods become the only thing that matters.
Those that have the things government needs will likely be sent to camps and their property taken for government use. Those with special skills that are needed to continue the supply functions would fall under the control of government agencies and be subject to internment if they fail to do their jobs. Once government has control of critical infrastructure they can let the remainder of the country fight among themselves and do the governments job for them. The few who remain after a few weeks will be easy prey for the government.
I do not claim this will happen, only that it is one possibility in the event of a total banking collapse. Those in power will do whatever they must to stay in power. That much is born out in history. This is not meant to scare you but to make you think about the possibility of this event and plan accordingly should the worst happen. Should the government confiscate resources following a collapse, you will need to be two steps ahead of them and the general population in order to get through the events in one piece.
Many feel a collapse of any kind is impossible in the mighty USA but times change and anyone that fails to heed the warnings will pay dearly when events unfold and they find it is to late to get the supplies they need. People buy many types of insurance just in case. They save for retirement just to make sure. Then they ignore economic warnings that make all those things useless. The government helps people when it is convenient for them. The government has also shown its willingness and ability to take from people when it suits them. Any government big enough to give you anything you want is also big enough to take everything you have. And, they will eventually.
By: Tom Chatham
With more and more people raising the alarm about a coming recession, and possible depression to end all depressions, it is only natural for people to think about where they should put the wealth they have been able to hold onto. If you still have any wealth to speak of after the past several years, congratulations. If any of that wealth is in paper assets that can disappear overnight, you really need to think about a safer place to store it in the coming months and years.
As they say, if you can’t hold it, you don’t own it. If the banking system shuts down due to hackers, enemy attack or government edict, any money you think you have could disappear quickly never to be seen again. At that point all you have to prove it ever existed is a piece of paper that no longer means anything.
We are heading into a rapidly changing future where nothing can be taken for granted. When the current social and monetary system ceases to function, you will need wealth in the form of physical items to get by from day to day. Wealth is the excess production you have to save for the future. It does not matter what form that wealth takes as long as it preserves value for future use.
In a serious crisis, wealth in the form of physical goods can mean the difference between suffering and getting by. In a crisis, physical goods are as good as cash when the time comes to trade for items you need. In today’s crumbling system there are some notable goods that not only hold their value but can increase in value when times get tough and people scramble for limited resources.
These not only provide security and can put food on the table but they hold their value over time better than many items. They can be worth many times their original cost when they can no longer be bought due to the lack of a functional financial system or decaying social condition.
Like guns, ammo can be stored for many years and current social conditions seem likely to make ammo costs stay relatively high for many years to come. Like food, when you need it you will be willing to pay many multiples of it’s original cost to get it making suppliers very important people.
Any disruption of the food distribution system for prolonged periods will force people to return to home canning to insure a food supply for their family. Most people no longer have canning supplies at home and when the time comes that they realize they need them, the cost will be very high if you can even find them. Anyone stocking extra canning supplies beyond their own needs will find them a good trade item when the time comes. Canning supplies like everything else will continue to rise in price in the coming years.
Gold and silver-
As the ultimate time tested wealth storage mediums, gold and silver will allow those that store them the ability to make good deals in the future when paper assets have lost all value. It does not matter if the price goes up or down, they always maintain their value through good times and bad. Today, price manipulation has made these metals available to the public at a major discount to their actual value but that will only last as long as there is confidence in paper. Those stocking up now will reap the rewards for their forward thinking .
Alternate energy systems-
When the grid goes down or energy prices spike at a time when many people no longer have meaningful employment, the ability to maintain energy in your home will mean a great deal to impoverished families. Generators are great but during a long term crisis, the ability to maintain power with a generator is limited. Even if you have a large supply of fuel your generator will likely fail at some point due to extended use. Solar and wind power systems offer the advantage of a one time expense and after that offer years of low or no maintenance to maintain power for critical systems such as lights and refrigeration. They are also much quieter than generators to avoid undue attention from the community.
Tools can come in many types and forms. Tools allow you to fix or build items you need. They also provide you with the means to provide services you can charge for giving you a business to fall back on if it is ever necessary. Good quality tools can last a lifetime and maintain their value over time.
Knowledge is power. When you have the proper knowledge you can write your own destiny. Knowing what to do and how to do it when everyone else is running in circles gives you a major advantage in life. Knowledge also provides you with the ability to use that knowledge for trade or business purposes that can earn you income for items you need. It is difficult to put a price on a good library.
In a crisis food is the ultimate currency. Regardless of what the social conditions are, people will need food. Since most of the population lives in urban environments today, they are dependent on food deliveries to stay fed. When that system fails those with excess food supplies or an ability to produce more will have a form of wealth they can use. Your money will actually be growing on trees.
There are many resources that you can store depending on your abilities and needs but these offer some of the best returns for the investment over time. The need to store wealth is for future consumption when you may not be able to earn the money due to age or economic conditions. The ability to invest some of your wealth now in items that will reduce consumption and supply your future needs is a winning proposition for most people. Only you can know what you expect from the future so you must plan accordingly now to avoid the worries later.
By: Tom Chatham
When most people think of self sufficiency they think of seeds, garden tools and canning jars but there is a lot more to consider. Being self sufficient also means you must build and fix things yourself to a large degree. It is easy today to take your problems to someone else and have them fix them for a fee but the day may come when you either cannot find someone to do the work or you cannot afford to pay them for the work. True self sufficiency means you must become a jack of all trades to get by with the least expense.
A few weeks ago I had a flat tire on one of the trucks. When I went to inflate it I discovered the problem was a broken valve stem. Under normal circumstances this would require a trip to the local garage. In my case, I simply removed the wheel from the truck, put it on my manual tire changer and broke the bead. Then I looked through my cabinet of small repair parts and pulled out a new valve stem. I removed the broken stem, inserted the new stem with my valve stem puller and re-inflated the tire and put it back on the truck. This all took about half an hour. A major problem was reduced to a minor inconvenience. Just this week I rebuilt the carburetor on another truck.
When something you need is broken you can either replace it or fix it. Fixing it will require knowledge and parts provided by you or someone else. If someone else does it that is going to cost you. Have you ever noticed that someone else’s time is always more expensive than your time? To pay for this repair you will have to earn money to pay for it. Money is usually harder to come by these days than time so fixing it yourself is usually the preferred method if you have the skills and tools.
Over the years I have had various jobs that allowed me to build up a variety of tools. I have a good mechanics tool box with many specialty tools. I have carpentry tools and basic garden tools. I even have a hydraulic press to make hydraulic hoses. I have soldering guns, a mig welder and even a tube tester to fix old radios and TV’s. I don’t mention these to brag but to make a point. Not only do I have tools and knowledge to aid in becoming self sufficient but I also have resources to use for trade with others should it become necessary.
If you are self sufficient or on the way to it you will likely have a number of tools and machines to aid you in daily activities. If one or more of these machines becomes inoperable, can you fix it? If you are cut off from normal repair facilities you will either have to fix it somehow or do without. Nobody can do everything but the more you can do the more self sufficient you will actually be.
Being self sufficient means having knowledge, tools and repair parts. Knowledge can be procured or from your library of technical and repair manuals. Tools will likely be limited to your capabilities but looking ahead and buying specialty tools for future use is always encouraged. Repair parts are one area that few people think about until it is too late. Fixing a leaky faucet is simple unless you do not have a new washer to put in. In a national or worldwide crisis, you may not have the ability to run down to the local hardware store and buy the parts you need so you need to think ahead and store some of those small inexpensive parts now while they are cheap and plentiful.
I had to order the carb rebuild kit I needed but in a crisis I might not be able to do that so I may stock an extra one for future use now that I’m thinking about it. Even if I don’t use it I may be able to sell or trade it to someone in the future that is desperate for one.
When you think of self sufficiency you need to think about all of the little things that can cause things to come to a sudden halt for want of a few small parts. Simply having some selected parts in stock as well as things such as tape, glue, solder, JB Weld, grease or oil can make future problems much smaller.
Look at all of the things you depend on and study them one at a time to determine what might break on them and make a list of parts you might want to keep on hand. One thing I find handy are the little boxes of parts such as cotter pins, fuses, roll pins and springs that I bought from Harbor Freight. I may only open those boxes once a year but when I need a small part that broke, it saves me much time and money being able to fix it on the spot. That carb I fixed needed a new return spring and I had one in one of those boxes. A screw also broke off in that carb and I had to drill it out fill the hole and retap it. I did that without having to leave the house and that carb works great now.
The more you work around the house the easier it is to acquire these skills and tools. Someone who depends on others to do these jobs now will find it difficult to plan ahead for the day when they must do it themselves. The best time to start learning is today while you still have time to get the knowledge, tools and parts while they are still available. For those of us who can only afford old worn out equipment, it is second nature to learn how to fix it yourself. Being rich has it’s advantages but being poor also has some advantages that you may not think of until all of your resources are cut off for some reason. The ability to do it yourself in the good times will likely save you in the bad times when self sufficiency is forced on you and not just an idea you think about on your long commute home.
By: Tom Chatham
The road to recovery from any type of societal collapse is largely dependent on the mechanism that caused the collapse. For this reason we need to determine what the likely cause of the collapse will be and have the appropriate equipment to fix the malfunction after it happens. This requires society to take a realistic look at the situation as it is and not how we want it to be.
Most people do not even realize that we are heading for an economic collapse of epic proportions so talking about recovery may seem like we are getting too far ahead of ourselves. What you need to understand is that what we do now, before the collapse will determine how well we are able to recover from it and how fast. When you leave on a trip you pack the appropriate clothing and make sure the car is running well and you have emergency equipment like a spare tire with you just in case. When the economy collapses if we do not have the proper emergency equipment on hand to fix the problems, we will find ourselves stranded and unable to move anywhere.
From a societal standpoint, being unable to move means we will not be able to resolve any of our problems quickly and will out of necessity begin to prey on one another to fulfill our needs. This is what will cause loss of life on a monumental scale as the crisis is drawn out over time. Having the proper emergency equipment and a plan to use it will greatly reduce the suffering that is endured by society. This does not mean there will be no pain, only that we can keep it manageable.
A nations wealth is derived from having a product to sell. A service economy is dependent on having a wealthy society that has sufficient disposable income to support service jobs that consumers pay for rather than doing the jobs themselves. A society cannot get wealthy by washing each others clothes. There must be some type of real production to generate true wealth.
For this reason, the type of collapse many western nations now face will require them to have the ability to actually produce real goods following any collapse to begin the generation of wealth that is required to lift society out of any depression. This means society will need those with insight to have the necessary emergency equipment standing by after the collapse to begin the production of real goods and provide people with real jobs. The lack of jobs and resources following any collapse will mean poverty and predatory actions by society when things finally bottom out.
Most of the manufacturing ability of America has been shipped overseas. This means when a collapse occurs here we will once again need the ability to produce those things we need because we will lack the ability to buy them from others. The lack of a functional manufacturing sector means we will suffer in the future if we do not set aside the necessary emergency equipment we will need in the future to restart our manufacturing ability. As with many things we will need equipment to produce other equipment to build up that ability. The lack of this basic equipment to rebuild that manufacturing ability will doom this nation to poverty and third world status for decades to come.
This does not necessarily mean we will need to build large factories with thousands of employees. We will likely need to focus on smaller mini manufacturing sites employing a few dozen people in each. This is a first step to building larger more productive factories in the future. .
China has embarked on a building spree over the past decade and the result is the existence of many ghost cities and new infrastructure all over China. They possess all of the manufacturing technology of the west and the factories to produce the goods. They have also sought to secure raw materials all over the world for future use. They have built up a huge stockpile of gold. All of this means that China has positioned itself to have the necessary infrastructure to recover from any collapse that the world may face in the future. They have the equipment to build their own wealthy middleclass to fuel their rise in the future. They will do what the U.S. did in the 20th century and build up a wealthy middleclass and become a world leader economically, militarily and politically.
Americans need to realize that China now owns vital ports and businesses in the U.S. Following an economic collapse China will be in the position to increase its manufacturing ability in the U.S. and smother any American attempt to rebuild its own manufacturing ability making it independent of foreign influence. This is the threat to America recovering any future collapse if we do not have a large number of independent operators that can rebuild manufacturing ability at the local level quickly following any serious event.
If America wishes to remain free, we need people with vision to prepare for this eventuality and be able to respond with a new program of production to counter the many dangers we will face in the future. There are two areas that should be concentrated on as far as production is concerned. The first is the extraction or harvesting of resources and raw materials. The second is the conversion of those raw materials into finished goods.
Once you lose the ability to work and earn a living you become a government serf that is forced to bend to their will as you ask for handouts to survive. In an economic collapse the medium of exchange is destroyed along with the savings of the masses. When this happens people can no longer buy the goods they need to survive. Two of the things that survive collapse are individual labor and raw materials. When you can combine these with a third item, production equipment, you have the means to provide the basics of survival for the people and a means to produce their way through the difficulties they are facing. Absent a medium of exchange people will still be able to work for the things they need. This is the key to overcoming a serious crisis that can fracture the population and destroy societies.
Small localized production can make all of the difference when goods are needed to sustain families at the most basic level. The basis of any society is the ability to produce agricultural products. Food is a basic necessity and is the basis of any prosperous society. It is the first level in any production scheme to provide basic goods. Food provides the means to support industrial production. Industrial workers earn pay so they can buy food for their families. Food becomes the primary trade item to support other types of production that eventually provides a higher standard of living for society.
In a collapse, a food producer with a small industrial facility can trade food for the labor to produce factory goods that provide value added goods for society he can trade for other items. With this type of production, a community can overcome economic obstacles even in the absence of a medium of exchange. The industrial equipment could be as simple as a portable saw mill, a grain mill, fiber processing machines such as a spinning wheel and floor loom or a shop filled with wood working or metal working machines. The size and scope of production will be dependent on the abilities of these forward looking individuals to procure these machines prior to any crisis.
This may seem like pie in the sky dreaming to some but the fact remains. The future will only be as difficult as we make it. If we fail to prepare then we are preparing to fail and that will cause suffering on an unimaginable scale yet to be seen. Even a small amount of preparing can yield huge dividends when the time comes so anything you can do to prepare for the changes to come will be worthwhile. I am a big believer in infrastructure and the benefits it brings with it. A farm with specialized equipment can produce more products and create more wealth than one with typical farm equipment. Someone raising livestock that sets up their own small processing facility can process their meat for increased worth and has the means to hire persons to do the work for payment in food products. A dairy that has the ability to produce cheese can increase their product line and produce a product that will keep longer.
When crisis strikes in the future the amount of infrastructure available at the local level will determine what hardships we will face. The production of real goods is the only way we will get through a future crisis and keep society in tact for the duration. The wealth of local communities will depend on what products they have to offer in the future. A lack of local production will end with poverty and societal breakdown that may not be recoverable for many years to come.