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

By: Tom Chatham

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

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

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

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

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

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

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

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

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

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

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

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

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

Bank Failures Coming To A Branch Near You

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.

The Road To Collapse and Tyranny

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.

Currency Wars

Capital Controls and Nationalization of Retirement Accounts

Trade War

High Inflation

Price Controls

Military Aggression


Sovereign Default

Chaos and Social Breakdown

Martial Law

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.

Why Hold Gold and Silver?

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.

Only Hard Assets Will Save You

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?


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