By: Tom Chatham
Many people today know there is danger on the horizon and want to do something to prepare for it but lack substantial money to buy what they think they will need. They have scanned many good lists online and know what others are stocking up on. There are many good ideas out there but most of them take a conventional stance in preparing. When everything goes wrong with the economy and you can no longer depend on a regular income you must have a plan to maintain a decent standard of living.
If the day ever comes that you suddenly have no job, your savings and retirement are gone and you have no source of income, what will you do? If you can no longer make your monthly rent or mortgage payment, do you think you will be able to continue living there and for how long? This is a serious question that many people have not contemplated and refuse to even think about. When the greater depression picks up speed, your whole world can be turned upside down overnight.
Those that have made the decision to store emergency supplies may not have contemplated losing their dwelling when it hit’s the fan. Even if you have supplies for your family where will you take them if you lose your home? Have you planned for that eventuality? Even if it is remote you need to think about it.
The first three things people need to satisfy are shelter, food and clothing. Regardless of the situation, these are the first things people will try to get before moving on to other needs such as transportation, security and sanitation to name a few.
As a minimum your 72 hour kit should be upgraded to a two week kit with a good four season tent and cold weather sleeping bags for each person. This will provide you with the minimal level of food and shelter that you should be prepared to provide for your family. Adding to this, you should increase your food reserves to the amount you could transport if you had to move. This should be the minimum resources you have to take care of your family if it all falls apart.
In the event you lose your home and have no place to go you should plan on a more permanent type of shelter that you can feasibly pay for on a limited budget. The following are the six items you should try to acquire to care for your family in a worst case scenario. Even if you declare bankruptcy, in many cases the homestead act will allow you to keep up to $5,000 worth of property. The following list will fall far below that threshold with a little shopping around.
Older pickup truck- You should have a vehicle that is fully owned so there is no chance of losing it if all of your financial assets are lost. You want an older vehicle so you can maintain it yourself to a large degree. Newer vehicles since the mid 1980’s have fuel injection, computers and many electronic sensors that make diagnosis and repair difficult for anyone without the proper equipment. You also want a vehicle that can pull a trailer which leads us to the next item.
Camper trailer- Living in a tent is better than nothing but is still miserable in very cold weather. Having a hard shelter is far more comfortable especially if you have children. You can maintain a good deal of normalcy with a camper and you still maintain your mobility. Trailers can be found very cheaply today and the longer you have to look for one the more likely you will find a good deal.
Food supply- With a hard shelter that is mobile you maintain the ability to store several months of food and move it quickly if needed. You should acquire at least a years food supply even before you have a trailer to carry it all. If you plan to set up for long periods of time at a stationary location you would also benefit from having some basic garden tools and a supply of seeds to extend your food supply.
Energy systems- In a long term depression you will still need a certain amount of energy for certain systems. A wood gasifier will allow you to power your vehicle when fuel is hard to find or too expensive to buy. Your vehicle will also provide you with a power source for electrical power. Solar panels will also prove useful for electrical power over the long term crisis. For heating and cooking, wood stoves are good to have since wood is available in most locations and relatively cheap.
Security- Having a means to protect your family will become necessary if the social conditions deteriorate to the point that large numbers of people seek out resources for survival. A good pump shotgun and at least 500 rounds of ammo will give you a basic level of protection in most circumstances. It will also provide you with the means to hunt for food should it become necessary. A shotgun is a good entry level weapon for someone with little or no experience handling weapons. If finances permit a good pistol and a rifle with a good supply of ammo would be a good investment as well.
Silver-Some wealth preserved in the form of precious metals will give you the ability to buy items in the future that are truly needed. Paper money can lose it’s value in a national crisis but gold and silver will maintain their purchasing power over the long term and provide you with options you would not have otherwise. Having at least $20 face value in junk silver coins is a good start but more is better based on some of the economic signs we are now seeing.
These six things are only one type of plan but they provide you with the means to provide the basics no matter how disruptive things get. If you are unable to service your debts in the future you may end up with only those things you fully own and have physical control over. Regardless of your plans you need to analyze your current situation very carefully to insure you will have the means to provide the basics to your family.
It may be thought as premature by some to make such drastic plans at this time but once crisis strikes it will be too late to get the things you will need to ride out the social disruptions. If the government continues to print money we will eventually lose our reserve currency status and the petrodollar will be destroyed. When that happens inflation will run rampant until the dollar that we know disintegrates into nothing. Before that happens you need to ask yourself some important questions and have good answers now.
What will I do if I lose my job and cannot find another?
How will I continue to pay for food, rent, energy, clothing or medications if my income is cut off?
What will I do if inflation destroys my wages, savings and retirement accounts leaving me with nothing?
Will I be able to stay at my current home if I no longer have any money?
Where will I go if I am forced to leave my home?
What assets do I have that are fully owned?
How can I preserve my wealth if the dollar hyper inflates to nothing?
How will I take care of my family if the banks are closed?
What can I do to earn money if we have another great depression?
This is just a sample of some of the things you will need to know if the worst happens and judging from the current economic numbers we are getting very close to a terminal situation that will destroy most of the wealth that exists in paper and digital form. Continued money printing will only make the situation worse but that is the path of least resistance and the one we are likely to take as a nation of economically illiterate stooges.
If you do not have your economic survival strategy operational at this time you are playing with an economic fire that will burn everything you have in short order. You should not complain about your preps if it does not happen next week or next month. The longer it takes to happen gives you that much more time to make the necessary preparations so use this time wisely.
By: Tom Chatham
For those keeping up with the economic game of bumper cars we are playing, it seems likely that money printing will continue to the point of possible hyperinflation at some point. It is not a foregone conclusion but it seems likely. In that event what is the individual to do?
Some that have seen this possibility have come to realize that holding large amounts of debt before hyperinflation hits would allow them to pay off this debt with basically worthless currency and come out way ahead in the wealth game. That works in theory but how about in reality?
The bankers and politicians control the money supply and are even now cashing in their paper wealth for tangibles that are actually worth something. These people want it all and you can be assured of one thing. They will take the people to the cleaners before they are done with their redistribution of wealth.
Some may find themselves in a position to come ahead during any hyperinflation but they will be few and far between. The majority will not be allowed to come ahead at the bankers expense. The bankers after all created all of this easy credit that everyone uses and the sole purpose is to use it to separate the population from the hard assets that exist.
For those with substantial wealth accumulated, the first priority is to steal that paper wealth from the people. With that wealth gone they will not be able to preserve the hard assets they have that are not fully owned yet. Once that paper wealth is gone the bankers will need to inflate the money supply and force the majority into default on their assets. In a hyperinflation paychecks will not be able to keep up with rising prices and people will slowly fall behind until they lose it all.
For those that continue getting paid every week, the inflating pay will eat away at the debts faster and faster. To avoid losing real money, the bankers may index debts in order to prevent losing the leverage they created from nothing. When you index you basically increase the value of the debt at the same rate as inflation.
For those that say this will not work because they have a contract with the bank fixing the payment I can only say, do you really think these people will let you get over on them. These are the people that own the government and change the rules on a daily basis when it suits their needs. All that needs to happen is the government pass a law allowing the banks to index all debts and it will be a done deal.
I am not saying this will happen, but it could happen so you need to think about that and incorporate it into any plans you make to get through a currency collapse. If your plan is simply to pay off debt with devaluing currency and they index, you will not be in any better position than everyone else.
One way some will come out ahead is by having their excess wealth in precious metals. These assets will increase at or above the rate of inflation and allow the holders to maintain their buying power. The U.S. called in the gold in 1933 and could do it again but it is not likely. The main reason is that in 1933 gold was still part of the money supply and was held by the general population in large amounts. Very few people hold gold today and most of the ones that do are the very people that make the laws and they will not shoot themselves in the foot.
They may place a tax on any precious metals that are sold and use that as a way to control the smaller holders of metals but a house to house confiscation is not likely unless they just happen to target you for some other reason and find some in your possession and decide to take it. Ultimately, any paper currency only has the value that those printing it will give you. Metals can be used worldwide and have universal value. That is what makes metals more appealing than paper.
If currencies are destroyed in the future you can be assured that the perpetrators have a plan in place to prevent the majority from profiting from it on any large scale. Those that create the credit only care about owning everything they can get their hands on. Their greed knows no limits. With ownership of all assets comes complete control of the population. That is the end game for many. For those that see danger on the horizon it only makes sense to look ahead and plan for any contingency that may cost you everything you have.
By: Tom Chatham
The U.S. dollar is the world reserve currency, for now. That means everybody that trades in major commodities around the world needs dollars in hand to purchase what they want. In the 1970’s Saudi Arabia agreed to sell oil in dollars only and the petrodollar was born. As a major oil producer this forced everyone else to price their oil in dollars. Everyone needs energy to grow their economy so this created a huge demand for dollars around the world to pay for this oil.
As the economies of the world grew the demand on the dollar grew. The U.S. found itself in a position that allowed it to merely print money to pay for anything it needed around the world. America became wealthy by becoming the greatest manufacturing center in the world but as our manufacturing declined it was replaced with the ability to produce dollars for world consumption. This gave Americans the greatest prosperity the world has ever seen. That is beginning to change with the bilateral agreements now taking place around the world.
Many of the countries around the world have become disenchanted with the dollar over the last decade due to the Feds massive creation of dollars flooding the world. This creation of dollars has devalued the dollars already in circulation and the dollar is no longer seen as a good store of value.
The bilateral agreements being orchestrated now will eventually unseat the dollar as a needed mechanism of world trade and when that happens everyone will dump the dollars they are now holding. Every fiat dollar is a claim on real goods. When these dollars are liquidated from overseas vaults, they will be converted into hard assets. It is estimated that about 80% of all existing dollars are held outside the U.S. When this liquidation takes place all of these dollars will eventually go back to where they came from, meaning the U.S.
All of these dollars were created far in excess of any real goods to back them in the U.S. As these dollars are sent home they will be converted into hard assets from the U.S. This will turn the U.S into a giant garage sale as dollar holders attempt to get whatever assets they can before inflation eats up their purchasing power. The people in the U.S will find themselves bidding against foreigners with about four times as much money and the goods will go to the highest bidder.
When this happens the price of goods will skyrocket putting basic necessities out of reach for most Americans. This is the nightmare hyperinflation that many fear will come in the waning days of the dollar. If this happens America will be stripped of anything of value and many fear the government will simply turn over public lands for these fiat debt instruments created by the private Federal Reserve System.
A day of reckoning is coming for the citizens of the U.S. and it will be pandemonium as everyone tries to grab and hold on to anything they can to preserve their wealth and property. The day the buck finally stops in the U.S. will truly be the end of the line for most Americans.
By: Tom Chatham
The Chinese have made no secret of their discontent with the massive money printing by the U.S. that is threatening to diminish their massive holdings. They are currently on a massive buying spree to get every ounce of gold they can as fast as they can. The U.S. interests are holding down the price of PMs in an effort to fool the average person into believing that everything is just fine. This manipulation is playing right into the hands of China as they continue to buy.
The amount of gold moving from London to the east is creating a drain on vaults in the west and it is only a matter of time before they go empty. When that happens, the price of physical will skyrocket and no amount of paper will be able to stop it. The end of the line for paper gold and silver is getting close. With China buying over 1,000 tons of gold every year for the past few years plus what they mine themselves, their vaults are filling up fast. Once they have a sufficient amount, they will complete the destruction of the Dollar with massive dumping of their U.S. bonds.
China has already signaled the end of the dollar when it recently announced it would start invoicing all of its oil imports in Renminbi. It has also announced it will no longer be adding any more foreign reserves to its holdings. This is an indication that China will begin to build up its own middle class to absorb much of its production just as the U.S. did in the last century. This is a clear signal that the loss of reserve currency status for the U.S. is not far off.
As if to make an even bolder statement, China is working on an agreement with Nicaragua to build a canal that rivals the Panama Canal. China is also talking about operating their own oil futures market that will be priced in Yuan. At least half of the OPEC nations have expressed interest in the endeavor.
As if life were not difficult enough in the U.S. right now, the loss of reserve currency status will hit like a financial tsunami that will push Americans over the edge before they know what hit them. This will cause all of our imports to increase in price until we can no longer afford them. This is a fact that few Americans know or understand. Most like to pretend everything will be fine and keep their head in the sand to stop any negative information from getting through but this crisis is going to run up and bite them in the ass whether they want to know or not. This is why so many will lose everything they have in the coming months. They can ignore reality but they will not be able to ignore the consequences of ignoring reality.
There are going to be rough times ahead and most Americans refuse to admit it and prepare for the worst. There has usually been someone or some thing to step in in the past and cushion the fall for most but this time there will be no one there to stop the pain. The death of the dollar will be one of those times in life that everyone will remember for many years to come.