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.
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.
Seasalt 2 lbs.
Pepper 4 oz.
Ground cinnamon 4oz.
Multi-vitamins 360 ea.
Ibuprophen 24 ea.
Triple antibiotic ointment
Bourbon 16 oz.
Ammo 500 rds.
Cleaning eq. ( oil, solvent, pipe cleaners, Q tips, rags, bore snake)
Soap 12 bars
Toothpaste 6 oz. tube
Toilet paper 4 rolls
Disposable razors 12 ea.
Foot powder 4 oz.
Wool long underwear
Thermal socks 2pr.
AA batteries 8ea.
D batteries 8 ea.
Chem lites 24 ea.
550 cord 100’
Duct tape 1 roll
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.
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.
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.
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.
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.
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.
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.
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.
By: Tom Chatham
What do you do when you don’t know what to do? This question may seen simple but many people have a hard time answering it when critical decisions are needed. We make critical decisions every day and most of them are in the normal course of daily life so we don’t think much about the process we utilized to make those decisions.
Every decision you make boils down to two things. Where you are and where you want to go. This may be defined and enacted in a physical, mental or emotional state. What store to shop at, what clothes to buy, what show to watch or how to respond to something that has happened.
Basically, you are here and you need to get over there. The problem many people face during times of stress is they suddenly find themselves lost and don’t know where they are now and where they need to go. This is the factor that can cause people to freeze up or run in the wrong direction.
When faced with the decision of what to do in a stressful situation the first thing you need to do is take a deep breath and calm down. When you are stressed your mind operates like a person in a flock of chickens trying to grab one. You find yourself going in all directions at once to no avail.
To make a rational decision you need to be calm and determine exactly where you are so to speak. Once you have identified your position you need to determine where you need or want to go from there. Your final destination is what you are trying to determine at this point. Everything in between is about how to get there. This is much like planning a trip across the country. You identify your destination and plan your route to get there with the fewest problems.
If you are in bed and suddenly hear someone breaking into your home the process begins to work. You identify where you are, in this case in a vulnerable position. You determine where you want to end up, in this case standing with the intruder lying on the floor with a gun pointed at him, either dead or alive does not matter. The rest of your thoughts are about how to get from here to there with the fewest problems.
If you decide to prep for some type of disaster, you will need to identify where you stand right now then decide what your ideal position would be going into the crisis. Having determined those two points, you develop a plan to get from here to there or at least as close as possible.
In many dangerous situations this process is a matter of seconds from start to finish. In some cases you will have plenty of time to think things through to determine the best course to take.
If you are in bed and you hear someone breaking into your home and realize it is a large number of DHS agents with the intent to harm you, you may decide your destination is anywhere but here and seek an immediate exit. In this case, hopefully you already have an escape plan.
In the military, soldiers do battle drills to practice their response to dangerous situations they may find themselves in to speed up their response time to insure a positive end result. You can do this too with many of the situations you may find yourself in. Having a plan to deal with situations you may find yourself in will help prevent a delay that may cost you your life.
By doing these battle drills you provide yourself with a lot of maps to get from here to there depending on the situation and can immediately pull up one of these maps and follow it without having to analyze too much at the time.
When you are worried about some type of disaster or crisis that may take place and you don’t know what to do first, just take a deep breath and draw yourself a map. Determine where you are starting from, where you want to go and how to get there. You can then decide what you need to take with you. Even if you are not physically going anywhere, you can still plan it just like a trip. Your final destination will be an image of what you want things to look like or function like once you get there.
Indecision can kill in a crisis and you don’t want to ever be left wondering what to do once in that situation so now is the time to think about these things while you have the time. When confronted with something new and unknown, use the same process to think things through to find a quick solution to your situation. When everything else fails, you need to rely on your brain so exercise it accordingly.
By: Tom Chatham
In these days of declining paychecks and rising prices, people are hard pressed to get the most for their money. With every new dollar that is printed the value of your hard earned savings decreases and much buying power is lost. The conventional way to offset this decrease is to invest your money where it can earn interest and increase your holdings in real terms or at least keep up with inflation.
If you put your savings in the bank you might get .25% these days if you are lucky. This is at a time when real inflation is running close to 9% annually. In order to earn a better return on your funds you must put them in increasingly risky investments that have counter party risk that many may not fully appreciate until something happens. Just ask those fleeced by the MF Global bankruptcy.
There are few things one can place their money in these days that will maintain value or even grow. The normal safe haven in times like this are usually precious metals or investment grade collectables but those things must be sold in the marketplace in order to utilize the value of those items. What the average person needs is a safe haven they can hold and use at will and still reap the full value of those items.
When you earn interest on investments, your Uncle Sam will be standing there with his hand out when you liquidate that item so he can get his share. This just adds insult to injury when you loose buying power through inflation. There must be a better way to store wealth on a small scale that average people need and can use. That way is through commodities that you use every day.
When you buy a can of soup for .50 cents and put it on the shelf for several months and finally use it after the price has increased to .65 cents, you have effectively earned 30% interest on that can of soup. Where can you earn 30% interest these days with no counter party risk?
What makes this even better is that you pay no tax on that 30% interest. Can it get any better than that? This type of investment plan will work for anyone because everyone buys food on a regular basis. Not only that but the other things you use at home such as hygiene supplies, paper products, cleaning products, and hardware supplies will likely go up in price as time goes on and offer you the opportunity to save on your future needs. This also applies to things such as ammo, clothing, auto parts and energy supplies.
Some may say this is a waste of time because many of these things will have to be used within some time limit, but you will need to buy these things anyway at some point so why not increase your buying power by making purchases in a different manner than you normally do.
If you store a years supply of food at home and the real inflation rate is 8% annually, when you replace those goods that you use you may pay more but you will essentially be eating at last years prices. If inflation gets even worse in the future you will have more available purchasing power than others because you will not have to buy necessities every week like everyone else. You can wait for specials, deals on bulk purchases or seasonal fluctuations.
In a serious situation you would be able to stop purchases for up to a year and use that money for other things such as equipment to grow and can your own food. In the event of unemployment, it is also one less expense you will need to worry about. While food is a natural for this type of savings plan other household products may work even better due to longer shelf life.
Just imagine if you had everything you would need for the next ten years stored in your basement. How much would you save in inflated prices over that time period? With a real inflation rate of 8% prices would almost double every ten years. It is unlikely that your paycheck would increase at a similar rate. This type of savings plan is better than putting money in the bank because a bank can go out of business or outright steal your funds because of new laws that are now in place. The amount of money you spend on everyday necessities over several years can run into the thousands of dollars and that is sufficient to preserve a lot of money.
It is important for each person to analyze their financial position at regular intervals and you must be aware of the real inflation rate in order to devise a plan to get the most from every dollar you spend. This will become ever more important as the economy becomes more unstable as time goes on. In the end it is up to you to protect your hard earned money from loss due to economic conditions that are controlled by those that wish to destroy it.