By: Tom Chatham
Gold and silver are good assets to hold to insure the preservation of EXCESS wealth but there are other assets that are even more valuable longterm. Those things that can be used to produce a product are the elements that can be used to leverage your time, resources and talents to produce wealth. The ability to produce excess is the basis of the need for wealth preservation.
Physical goods in the form of equipment that can be used to create or produce goods needed by society are the basis of prosperity and wealth in the world. Gold and silver only become necessary when society begins to produce more products than the producer can use. This excess production is then traded for those things that can preserve the value of this excess production until it is needed by individuals.
Machines to build or repair such as saws and hammers, sewing machines, metal fabricating machines such as lathes and mills and machines to convert raw materials to value added products such as steel to I beams or pots and pans, wheat to flour or pasta, lumber to finished furniture and cotton to cloth are the assets that define how prosperous you are as a nation. A nation derives its wealth from having a product to sell. That will never change. It is true for nations as well as for individuals.
Individuals need to have the ability to produce something in excess of their needs to advance to the need to store that excess. This requires tools and equipment in most cases. You do not necessarily need to process your own resources to generate this excess. A miller can provide the equipment to grind grain for the community taking part of the production for his time and effort. This gives rise to the service economy where individual specialization is traded for other services and resources rendered. In most cases this service will require specialized equipment not possessed by the general population. This specialized equipment is an asset more valuable than gold and silver in many cases.
The goods need to exist before gold and silver can be traded for them and gold and silver need to exist to preserve this excess production for future use. Storing some of your excess production today in equipment that you can use to start a cottage industry will insure gold and silver will have useful value in the future. You cannot have one without the other.
When a person uses their wealth in such a way that allows them to employ several others, it will not only increase their wealth but insure prosperity for others. The ability to earn payment in return for their time and energy allows these employees to utilize these funds to provide income for the butcher, baker and woodsman. This is the basis for the economy small or large. The economy is what ultimately determines the value of any asset.
The ability of individuals to insure a functioning economy will determine the wealth and standard of living of everyone. A safe asset is one that contributes something to the ability of the economy to function properly. Without that, wealth is determined by what each individual can produce themselves for themselves insuring wealth will be limited for many and unequal as ability will determine what that wealth will be. Restricted access to resources and goods eventually leads to war. In war, no asset is completely safe.
When it comes to the next generation, the options are going to be very limited. If parents expect to pass on any of their hard earned wealth it must be done in a way that prevents government from devaluing or stealing it outright. The use of gold, silver, diamonds and some types of land will likely be the best options. If the government cannot find it or get their hands on it, it will make keeping it that much easier. Given the current situation even guns, ammo and reloading equipment might be seen as a good asset to hold for future use. Along these lines, tools and specialized equipment that can be used to produce some type of income will also be an advantage for youngsters that would otherwise have difficulty finding employment in the future. The greatest thing you could do for your children is to develop some type of business that can be handed down to them to give them the chance to make it in the future where government intervention has destroyed the economy and future job prospects.
One of my favorite scenarios is the development of a small diversified family farm where most or all of your needs can be met from within while selling excess on the local market for needed income. Add to this a few small cottages that can be rented out for a modest price and maybe even a small industrial plant to process fibers such as cotton, wool or flax. Mini mills are now available that makes this a possibility today. A small store on site that can sell locally produced items such as soap, candles, food, clothing or medicinal herbs will all add to income opportunities to insure a decent standard of living. The number of products that can be locally made and sold are numerous and allows for many such farms in an area without fear of duplication.
To get by in the future people are going to have to learn to be creative once again in order to take care of themselves and their families. The west line has moved meaning Americans will be forced to live in a smaller economy with a lower standard of living than in the past. If you do not adjust to that now you will be forced to later under much more difficult circumstances. The assets you preserve during the coming years will determine how well you will live and how well your children will live. Nothing is guaranteed at this point so the future is entirely on you.
By: Tom Chatham
There is no shortage of dangers in the world today. It seems every day something else appears from out of the blue and adds to the pile of potential problems we have to deal with. Some of these problems are covered over or ignored all together. They are hidden in the shadows to prevent people from protecting themselves from the dangers.
The whole premise of hiding these dangers is that when someone loses in the future, someone else will profit from it. In our case, when many people lose, a few will profit massively. That is how the system has been set up. The people have been set up and the time is near when the plug will be pulled and chaos will be the order of the day. When that day comes many of the seemingly unconnected problems we face will coalesce into a massive problem few will understand or be equipped to deal with, and that is the hope of some. Here are some of the problems that will come together in the future and spell disaster for many.
Drought conditions in the western U.S are going into their fourth year with no change expected in the near future. This is causing a water shortage that could leave many western cities with little or no water in the near future, forcing mass relocations if it continues for another year.
Drought conditions in California are destroying a large percentage of the produce this nation relies on for food and jobs.
The federal government continues to lie about the economic numbers in hopes they will change soon for the better or at the very least nobody will notice they are unemployed and broke.
Current estimates are that over 101 million working age people are unemployed in the U.S today. The U.S. is a consumer driven economy and the destruction of the middle class means things will not get better until more people have jobs and money to spend. People will not have more jobs until the economy gets better. We are now in a catch 22 situation.
The FED cannot raise rates without exploding trillions in derivatives and keeping them low will result in a loss of confidence at some point in the near future. The only thing they can do is print more money and hope things get better, somehow.
Factory farming has seen the decimation of poultry by avian flu this year, pigs succumbing to porcine disease last year and cattle herds dropping to 1950 levels due to drought. This is likely only the beginning of stress on the food system that will increase as society and environmental conditions continue to deteriorate over time. That will mean more expensive food over time.
The government has embarked on a program to decimate the armed forces in America making us less safe while simultaneously building a civilian government army just as powerful and just as well armed as the military. They are building detainment centers around the country and have bought over 2 billion rounds of ammo. They continue to pass draconian laws that insure less freedom in the future. These laws and executive orders now give the government the authority, in their eyes, to take everything you have and use you as slave labor.
The government continues to leave the southern border open allowing mass illegal immigration into the U.S. Large numbers of refugees resulting from American intervention in foreign nations are being allowed into the U.S without proper screening. Some of these refugees are militants determined to destroy America. They will not assimilate our culture and seek to replace western law with Sharia law in the U.S. Over 30 Islamic training camps are now active in the U.S and the government refuses to do anything about them.
The U.S. government has been infiltrated at the highest levels by the Muslim Brotherhood. These people are now making national policy and hate everything that is American. The POTUS has said he would side with Muslims if he had to make the choice and he has demonstrated his distaste for everything American.
The government continues to press for gun control and the abolition of guns and ammo in the hands of citizens. Every shooting is utilized as an excuse to push the agenda further along. Every opportunity is used to restrict the current access to guns and ammo and it is increasing daily until gun control is complete.
The ability to produce your own food in America is slowly being revoked by government agencies that will ultimately allow the government to use food as a weapon against uncooperative Americans. The corruption of seed stocks with GMO’s is a strategic operation that will lead to food scarcity.
The government considers anyone who stores more than 2 weeks worth of food a terrorist and enemy of the state. They consider anyone who owns guns an enemy of the state. They consider anyone who home schools an enemy of the state. They consider anyone who is a veteran, especially those serving in Iraq and Afghanistan, as an enemy of the state. They consider anyone who is a Christian an enemy of the state.
The government has armed local police forces with military grade weapons and are now seeking to federalize these same forces. The goal can be nothing other than the establishment of a total police state. This combined with the information gathering devices deployed by government is all encompassing and for the express purpose of depriving people of their freedom.
New laws such as the TPP will relinquish national sovereignty to multi national corporations that will be controlled by a hand full of oligarchs beholden to nobody. The corporate model has led to the destruction of local jobs and wealth in the hands of workers.
Large investors and funds have begun to dump stocks and accumulate gold and other hard assets as the economic numbers become more distorted and defy logic. China, Russia and some large institutions are accumulating gold as fast as they can in the prelude to paper asset destruction.
Central banks led by the BIS have brought us to the ultimate destruction of paper currencies. When all paper assets are destroyed, the people will have little choice but to succumb to the demands of bankers and corporations. The only other choice will be revolution but by then, most of the people will have no ability to fight or resist and most do not have the will to fight to begin with.
When you take all of these things into consideration, the future seems to be a veritable minefield of obstacles. It is hard enough to navigate the world when everything is supposedly working well but when everything is suddenly working against you, you need to have a plan to deal with it.
In the face of adversity, the real you will come out. It is surprising how some people rise to the occasion and just as amazing how some people will withdraw into the corner and assume the fetal position. There is a storm coming unlike anything people have seen before. Are you prepared to deal with it?
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
The U.S. banking system has been in defacto default since 2008. But since everyone needs U.S. dollars to continue commerce around the world it has been put on delay. Everyone has been playing lets pretend. That will not last much longer. The events in Cyprus tell volumes about what is coming to other nations around the world.
As the banks tumble in domino fashion around the world everyone will head for the U.S. as the last safe place to store money. That may be by design. Once in the U.S those assets may have no safe place else to go so they will be essentially trapped. It will be a tempting target for the bankers and politicians to loot. A collapse then could force everyone into a one world currency. But not everyone wants to play with that marked deck.
The BRICS nations just held a meeting in South Africa and one of the things they discussed was the formation of a BRICS equivalent of the IMF and World Bank. They want to establish their own bank to aid emerging economies and they have agreed in principle to collectively finance it with a 100 billion contingency reserve arrangement for starters. These nations have a lot of gold and are increasing supplies as fast as possible. It is likely this new bank will be financed with gold backed currencies at some point. That will give the IMF crooks a lot of heartburn. It may also be the spark that ignites another world war.
The western bankers cannot afford to have a competing currency to anything they create so some type of action will be forthcoming. If people were able to shield their money from the corrupt bankers by moving it to another currency or bank out of the western bankers control it would prevent their plans to force through a one world currency which they would control. It always comes back to they money doesn’t it.
What would stop someone from moving large amounts of money from the U.S. to a BRICS bank? How about the imposing of capitol controls after all of that money is here. That seems likely. And if you are thinking of pulling that money out of the bank and hiding it under your mattress consider this. If a bank holiday is declared in the U.S. they can close the banks on say Friday night and reopen on Monday morning after having locked you out of your accounts all weekend while taking a “fair” percentage for the national good. But it might not stop there.
Suppose after you regain access to your accounts you find they have also devalued the dollar by 20 or 30 percent. They may just forgo the actual theft of money and devalue alone. In any case, they will have succeeded in stealing a large percentage of your money even if it were not in the bank.
I can’t tell you what to do but I don’t keep any more than a weeks worth of operating funds in my account and only about 30 to 60 days worth of cash on hand. Everything else I have is in highly liquid forms like silver. If they pull this I would take my cash on hand and go shopping that weekend before they have a chance to devalue. That would limit my losses and put me ahead of the general population. But that’s just me.
What would you buy in a crunch like this? Anything you can use to take care of yourself. It might be impossible to buy anything on line or through wire transfers but with cash you might visit coin shops, pawn shops, local merchants or look on craigslist for things worth something to you or for later trade. If you need to “store” money why not do so in gold and silver coins, a good used wood stove, a generator or possibly in extra fuel storage. All of these things will become much more expensive after a devaluation.
And always remember, if it isn’t in your direct possession you don’t own it. This will become brutally obvious to those with safety deposit boxes in the future. When they finally pull the plug on U.S. banks you should consider anything you have inside the bank as lost. If you get anything at all back consider yourself lucky. If you keep these things in mind it might not be as painful when it happens. Good fortune favors the prepared mind.
By: Tom Chatham – Author of The American Dream Lost
The western world as we know it will not last much longer in its’ present form. The architects of this collapse will extract as much of the wealth as they can before they finally pull the plug and watch as the nations tear themselves apart from within. Make no mistake, this is a designed collapse and has been planned for decades. Keep in mind that real wealth is made up of hard assets like precious metals, land, production equipment, mineral resources and businesses that produce a physical product. These are the assets that the engineers will take possession of just prior to the total collapse of the affected nations. These are the things that will have value after the collapse and those that have possession of them will make the rules for whatever type of society we find ourselves in.
There are certain sign posts on the road to collapse that act as warnings to those receptive to the signs. These signs can help those attempting to navigate the times to prepare for the final stages when they will be in the greatest danger. Countries go through some stages faster than others or even skip some stages so the signs must be observed to estimate where you are in the countdown to chaos. The signs to watch are the following.
Capital Controls and Nationalization of Retirement Accounts
Chaos and Social Breakdown
When a country’s economy begins to falter, the government will attempt to deflect blame and divert attention with other things. As the government appropriates the last of the nations’ wealth and the final destruction of the currency is in sight, many times they will go to war to hide these facts. When inflation begins to enrage in the population the government will invoke price controls to appease the mob, but this will ultimately cause shortages and set the stage for the chaos that follows. Those that believed in the government will be caught unprepared and will be easy to manipulate by those in charge and will be used in many ways.
Gun control is not present on this list due to the fact that most countries already have gun control in effect at this time. While gun control can be activated at any time by the government of collapsing countries, it will almost certainly happen prior to chaos due to the governments need to control the chaos with force.
The U.S. may be a special case though due to the fact that gun ownership is tightly woven into the very fabric of the nation. This will no doubt give the engineers a harder time of planning a reaction to the planned chaos. The U.S. government has several scenarios on paper to deal with the chaos as it plays out. They may provide a false flag attack according to one DHS insider, in a major city such as D.C. which will be blamed on patriots, constitutionalists and Christians in order to garner government support from the population to go after these types of individuals. This is designed to create a civil war that will give the government cover to commit crimes against citizens and eliminate their enemies. This is only one scenario but seems likely given the current climate in this country. The engineers will try to eliminate weapons for fear they will become targets by those who know what is happening but in all likelihood this will fail.
The engineers expect the crisis to end in their favor in some form of tyranny that they control but even the best laid plans never survive the first battle intact. This means they will have contingency plans to deal with the changing tides of chaos as citizens react to government operations. Those that see the signs and prepare for troubling times should have their own contingency plans to deal with changing situations on the ground where they live. The next ten years will be very fluid and you need to be adaptable to survive with your family and resources in tact.
The fate of the nation will lie in many things such as who controls the farmland and water resources in the country. These things are mainly found in the rural areas where government resistance will be the greatest. These are things that must be controlled by the government to insure control of the country and its’ population. Those who control the food, water and energy will have a great deal of power.
As stated in a previous article, we may be facing not one war but three to fight inside this country, a revolution against the government, a civil war against government supporters and a war against foreign troops at some point. It is not out of the realm of possibility that the government will bring in mercenaries from abroad if they seem to be loosing ground to the citizens. More information on the governments’ plans can be found in a recent article at Northeast Intelligence Network concerning a DHS insider. Those that plan on some type of armed resistance should insure they ration their resources to enable them to get to the end of the crisis. The fate of nations often times rests on the shoulders of a chosen few willing to do the hard things to insure a future worthy of those who have died to keep the torch lit.
By: Tom Chatham
As the world economy gets more chaotic every day, people begin to wonder how to protect themselves from the disruptions and uncertainty. It is always good to have some basic supplies at home to weather any crisis but you can only store so much. Your supplies may last for years but for any excess wealth you need a place to store it safely as well.
Stuffing dollars under your mattress may seem like a good idea but what exactly are you saving? Those pieces of paper are only worth what someone will trade you for them and the more that are printed, the less they will buy. Paper money can be printed to infinity and can eventually return to its intrinsic value which is zero.
Many people buy precious metals to convert their money into something more tangible. They do so for different reasons but the premise is always the same. They want to hold something that cannot be printed to oblivion. Tangible items will always have some value while paper can become virtually worthless.
Many people use precious metals as an investment to get a decent return on their money but gold and silver are not designed as an investment any more than a can of soup is. In certain circumstances, gold and silver can return profits when there is volatility in the markets but this requires you to sell these metals to access this profit. When you sell these metals you end up with more paper assets that can be destroyed by inflation.
Precious metals are real money and as such hold their value over time. Money is the agreed upon unit that represents proof of your production. Metals must be mined and refined which exemplify production value that is recognized by people. When you buy gold and silver you lock in the value of your production for future use. This stored value is what makes gold and silver a good monetary unit.
When you store your wealth in paper assets you allow those that control the printing of the monetary units to devalue the stored production value you had for the future and they are able to spend it now with little notice from you. The reason to store wealth is for the future use of it when you are no longer able to work. If this wealth is stolen from you it is as though you never earned it and your future can be bleak due to lack of these resources.
Gold and silver lock in the value of your savings and allow you to access this savings in the future to provide for your well being making it difficult for money printers to access this stored wealth against your will or without notice by you. Precious metals can be an investment in some circumstances but it is mainly a wealth preservation tool to hold until you decide to exchange it for other hard assets that you need in the future. Only hard assets are real wealth and that is what you need to remember. As the world economy becomes more unstable through the printing of paper assets, the possession of hard assets in the form of gold and silver will enable you to weather the financial storm and position you to prosper in the aftermath. Hard assets can take many forms but any excess wealth you have can be stored in precious metals to insure the survival of value until it is needed.
By: Tom Chatham – Author of The American dream Lost
Those that place their faith in the government or in the paper assets they own will probably not survive financially over the next several years. Historical events are about to overtake the human race and few are prepared to handle it. Those that ignore the warning signs and pretend everything will work out as always will be left destitute and broken with no way to care for their family or themselves. For many this will be a death sentence they failed to take seriously.
When everything around you is falling apart, it is imperative that you have 5 items to get you through. Water, food, shelter, clothing and security are the only things that matter on a daily basis when civilization is failing and society is going mad. The only thing you need to worry about when civilization crumbles is how do you get to the other side where things get better?
Only those that have hard assets and know how to use them will weather the storm. Fully owned assets, most of which are portable, will give you the ability to protect your family from the devastation as it rolls across the countryside destroying everything that took decades to build. When the destruction is over, only those that were prepared will have the ability to move forward and start the rebuilding process. This will require knowledge and equipment that will reestablish production and commerce and begin the wealth creation anew.
Only hard assets are real wealth. Anything held in paper or electronic form are nothing but illusions that will soon disappear taking the hopes and dreams of civilization with them. When this happens it will be too late to redirect your resources to more productive means.
The purchase of tools and equipment are only one aspect of your hard assets. The storage and maintenance of food products and livestock are an integral part of your ability to ride out the storm. The drought conditions that are now taking hold may be just the beginning of a longer trend that will devastate the planet and cause untold suffering. It is normal to have a major crop loss from time to time but what if the trend we now see forming causes multiyear crop losses? The food supplies of the planet are not sufficient to feed everyone for very long without the replacement of annual crops.
With the global commerce we now enjoy, products go to the highest bidder. With massive food losses only those with wealth in the form of hard assets will find themselves in a position to successfully bid for food products. Those with gold and silver will be in a good position but those with the capability to produce a commodity that is in demand will be in an even better position.
The production of water, food and clothing will always be in demand and those that have those items will have the ability to make some very good deals in the future and increase their wealth substantially. The production of tools and machinery will also be valuable after a recovery begins. For those in an urban environment, the aquisition of equipment and livestock may not be feasible so the diversification into precious metals may be the best avenue for excess wealth after food and clothing supplies are satisfied.
When the final bubble bursts, all of the checks from the feds to the entitlement class will stop, creating riots nationwide as the takers seek out the dwindling resources. The nation will be plunged into a depression unlike anything imaginable. Until all of the bad debt has been washed out of the system, no real recovery will be able to commence. The problem then is the fact that we no longer have the production capability to restart a recovery. This is the problem that could see this nation mired in a third world economy for decades to come. There are no easy answers and no quick solutions to get us out of this. Only years of hard work will fix this problem. The question remains, will the people of this nation be willing to do the hard work necessary to rebuild the nation and its economy?