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
If anyone wants to see where western civilization is headed they need only to look at Venezuela today. The Bolivar has gone from 6.3 per dollar to 1,000 per dollar in the past few years. Last year farmers were ordered to turn over certain crops to the government for dispersion in government owned stores. About 100 shopping malls are now having their power cut for several hours a day as power shortages become a problem. But, as one citizen said, it doesn’t really matter because there isn’t anything to buy anyway. Last year their economy dropped 10% and this year it is expected to drop another 8%. They just had 36 747 cargo aircraft deliver newly printed cash to keep up with inflation.
This is the price of socialist programs and lack of sound economic practices. With currency inflating at this rate it is impossible for anyone to save from one year to the next. With government taking farm commodities how long will farmers continue to produce crops they will not get paid for or be paid in increasingly worthless currency. With power shortages commerce cannot continue in any serious way.
Gold has begun its move upwards in reaction to failing bank policies and the realization by the public that all is not well. If you do not get resources before they are gone you will not get them or you will pay dearly for them. Empty stores and closed banks make resource acquisition difficult if not impossible and life becomes much more difficult to survive on a daily basis. Nothing can create shortages like socialist policies and global war.
Saudi Arabia, Turkey the UAE and other actors in the Mideast are massing troops to intervene in the Syrian crisis. They must move soon or rebel forces which include Al Qaeda and ISIS troops will be destroyed by Syrian, Russian and Iranian forces that now threaten Aleppo and soon Raqqa which will end the civil war in Syria once and for all. The latest reports indicate about 350,000 troops, 2,000 tanks, 2,400 airplanes and over 400 helicopters are massing in northern Saudi Arabia. If this force invades Syria it is possible Russia may be forced to utilize tactical nukes to stop them. Once that line has been breached there is no telling where it might end.
One thing that is certain is that bankers and politicians will welcome an escalation to distract the people from the fact that they are about to loose everything they have. Major banks around the world are on the verge of bankruptcy which will trigger a massive derivatives meltdown. When that happens you can kiss any paper assets you have goodbye forever.
In times like this it is only prudent to protect yourself from the machinations of those that push the buttons of global commerce and banking. The rise in gold and silver indicate people are becoming aware of the dangers and are taking defensive positions. Those that realize inflation and shortages of consumer goods are on the horizon are taking the necessary steps to get through the times ahead. They are also taking steps to get through any dangers that governments and bankers are orchestrating to cover their illegal actions.
Let the difficulties in Venezuela be a fair warning of what can happen when the system no longer works properly and you are left to your own devices to get by. The ability to care for yourself is critical when large systems fail. When they fail everything you normally depend on stops and no amount of wishful thinking will change things. If you cannot touch it, you will not have it. A smart man learns from his mistakes. A genius learns from other peoples mistakes. Learn now or pay dearly later.
By: Tom Chatham
The next great depression will be worldwide and it will be deeper and more chaotic than anything ever seen before. When the whole world suffers it will blame the U.S. for it and everyone will want a piece of America for retribution.
The Nations of Russia, China and Iran, which will lead the Muslim nations in the Mid East and Africa, will gang up on America which will be even more devastated financially than most nations. The American forces will succumb to a massive attack that takes down most of our electronic equipment and destroys our high tech advantage.
The war that follows will become a mostly conventional affair fought on American soil. A massive invasion by millions of enemy troops will follow who will commit every war crime imaginable on the American people. The invasion will come after internal conflict, caused by financial devastation, has taken a high death toll among Americans fighting among themselves over diminishing resources.
The invading nations will see this as their best opportunity to destroy America permanently and gain valuable natural resources at the same time. This is why it will be mostly conventional after a possible limited nuclear strike to disable our military resources and infrastructure. To make matters worse, these invaders will be aided by elements within the U.S. government who will cooperate with these ground forces.
The battles that follow will be fought mostly by local and state militias reinforced by the few remaining active duty soldiers that escaped annihilation in the opening days of conflict. It will become a guerilla war fought in every corner of every state in CONUS. Alaska and Hawaii will be cut off and allowed to wither until they surrender.
The war will last for years and most large cities and towns will be destroyed to eliminate any resources that partisan fighters can use. The only civilians that will escape detention and death by enemy forces will be those that are hidden in rural areas and dug in deep to prevent detection. Any food will have to be grown in small isolated plots hidden from enemy forces. Every day will be a fight for survival as the number of American forces dwindle.
American forces will survive by becoming very mobile and remaining on the move. Small attacks that chip away at enemy forces will be the primary tactic. Only when an unstoppable outside force arrives to reinforce Americans will the tide of war turn. The enemy will ultimately be driven back and Americas borders secured but the cost of victory will be very high and the population will be greatly reduced.
Is this scenario a possibility? It becomes more likely every day that we proceed on our current path and if history is any indicator it could become a reality. Americans are oblivious to the possibility of any such turn of events but it could very well happen within a decade. The inability of Americans to accept reality and the need to continue living in the comfortable cocoon of illusion they desire will end in tragedy very soon. No amount of hopeful thinking will change events that require positive action. The lack of critical thinking ability will doom the U.S. to new depths of despair before a new nation will arise that appreciates our heritage and the sacrifices of those that came before us. Hopefully this is a lesson we will not have to learn a second time.
By: Tom Chatham
The global financial system is beginning to come apart like a cheap suit. When the normal life you rely on ceases to function properly, what are you going to do? If you do not have a plan you will be left helpless in a rapidly deteriorating situation that will put you and your family in danger. It costs you no money to think through some basic questions and come up with realistic answers. The sooner you address this, the more secure your future will be when things don’t go as planned. Everyone expects the government to be there with a safety net when things go wrong, but the government may not be there in the future when you need them or they may require things of you that you are not willing to do or give up. When times are uncertain, it is your responsibility to care for your family and that is a responsibility you cannot pawn off on someone else. If you have no plan or don’t know where to start, you can begin with some basic questions.
How will I feed my family? – If your income is cut off or your food supplier is shut down, what is your backup plan to provide food for your family and how long will you be able to do so? The acquisition of potable water is also a concern you need to address.
How and where will I shelter my family? – If you lose your job and the ability to pay your bills, will you still be able to live in your current home? If your community becomes dangerous will you stay there and if not where will you go?
How will I provide security for my family? – When the financial system breaks down, many who depend on it will become desperate. They will do things they normally would not do in order to maintain their living standard. Many will become violent as their comfort zone is breached by many unknown variables they are not ready to confront.
How will I preserve my wealth for future use? – If you have wealth in the form of paper assets and they are stored with institutions, you may lose access to them in an emergency. They may also become lost, stolen or greatly devalued depending on the circumstances. If the well being of your family depends on those assets, are you prepared to lose them? If not what are your contingency plans to protect those assets so you have buying power in the future no matter what happens to the system?
What will I use for transportation? – In a depression type of collapse it may be difficult to acquire fuel or get your vehicle repaired. What is your backup plan if you need to evacuate your family to another area? Do you have a storage of fuel supplies, an alternate fuel source or the ability to maintain your own vehicle? Do you have an alternate source of transportation you can use?
How will I provide clothing for my family? – If you have no income or savings, how will you provide clothing for your family? Can you make your own or do you have a plan to trade for what you need? Should you store extra clothing now for future use and how much should it be?
Do I have others I can depend on if I need help? – If the situation deteriorates, do you have others you can rely on? It may be a need for food, clothing, shelter or security but in a prolonged situation you will need help in some form at some point.
What will I do to earn a paycheck? – In a serious downturn that lasts many years, what will you do to earn a paycheck? What skills do you have that can be traded for the things you need? What equipment do you have that can be used to provide a product or service?
How will I provide medical services to my family? – If the situation is desperate and medical help is expensive or unavailable, how prepared are you to care for a sick or injured family member? While broken bones and internal injuries may require a professional, can you care for minor injuries and provide medicine for sick individuals?
Can I provide power and communications if the grid is disabled? – The financial collapse of nations can lead to the shutdown of major service providers or leave you unable to pay for those services. If you can provide your own power and communications during critical times, it can provide you with information and capabilities to keep your family safe. Even a solar panel, 12v battery and small power inverter can give you many capabilities.
Once you have answered these questions in as much detail as possible you will have the outline for a basic plan to follow. As you answer these questions, more questions will arise that will lead to more detailed planning. Planning is a continuous process that develops more capabilities as you progress. In the future, the more capabilities you have, the easier it will be to navigate the disruptions in society that you are likely to encounter.