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Sunday, October 27, 2013

Bankrupt Governments Likely To Confiscate Wealth And Independence

Excellent article from Gold Silver Worlds on what appears to be a probability as the US Government not only increase the national debt limit but did not put a cap on the limit on how much the government can borrow. I am not posting this article by Claudio Grass to suggest you run out and buy Gold. Although I believe in having Gold and Silver on hand, it is only one aspect of total preparedness.  I am posting this for overall situational awareness.  

I am also posting this article as it supports the the 100% probability of an economic collapse unless things change drastically and soon.  Whether you call it a financial or monetary collapse or a super depression really doesn't matter.  What matters is the likelihood of the government confiscating not only precious metals but other forms of wealth in order to perpetuate their control.  They (the Government) will have no choice if they want to retain control and power.   
 


The first Liberty Forum will take place between December 4th and 8th. The conference has a focus on asset protection, wealth preservation and the preservation of liberty. Some off-the-chart successful investors, metals and resource experts, offshore service providers, and international legal and accounting professionals will be on hand to help with personal preservation strategies.

Keynote speakers are Peter Schiff, Doug Casey and Mark Skousen. One of the many lectures will be held by Claudio Grass, a passionate advocate of free-market thinking and libertarian philosophy. Mr. Grass is convinced that sound money, i.e. gold and silver, and human freedom are inextricably linked to each other. In his function as Managing Director at Global Gold in Switzerland he offers investors a safe, convenient and competitive Swiss solution for buying, selling, storing and delivering a variety of physically allocated bullion coins and bars, completely outside of the banking system and protected under Swiss law.

Claudio Grass has written several white papers, research notes and articles. In them, he has clearly explained that the most likely outcome of the current global debt situation is that governments will try to inflate their debts away. That is what has always happened throughout history. The current evolution of events has not changed his view. The latest actions by Bernanke, in particular his decision not to stop QE, underlines the validity of Claudio Grass’ view. “Taking Yellen’s history into account, I am certain she will follow in the footsteps of her predecessor. Therefore, nothing has changed from my point of view.”

The Liberty Forum conference brings up some fundamental statistics about the debt situation

•  The U.S. currently owes 885% of its GDP, more than any other industrialized country.
•  America hasn’t passed a budget since April of 2009.
•  As a country, the U.S. has had a budget deficit in 42 out of the last 47 years.
•  U.S. expenses are 56% higher than its revenues.
•  America expects to double its debt within the next 10 years (the interest on that debt alone will equal $1 trillion a year).
•  Its annual income is $2 trillion, while its total debt obligations are $121 trillion (that’s a debt ratio of 60/1 – typically anything over 1/1 is a HUGE red flag to any investor, indicating that a country is not likely to be able to pay its debts in 12 months’ time).

The true US financial situation remains remarkably underexposed as the mainstream media is mainly concentrating on Europe and increasingly the emerging markets. We asked Claudio Grass about his opinion on that.

German economist Wilhelm Röpke once said: “The theories men construct, and the words in which they are framed, often influence their mind more strongly than the facts presented by reality”.

This sentence nicely describes today’s mindset amongst most people in the western word. It is no wonder because we were raised in a government controlled education system, in which we are indoctrinated from childhood that the path of success is based on memorizing and repeating! We are not taught to question [authority], the reason for this is that it is much harder to manipulate logical or independent thinkers.

This is why I am such a fan of history; our world is the result of thoughts and actions from the past. You see the cause and effect? The problem is that the actual system we live in focuses only on the effects but never discloses the underlying causes, let alone trying to connect the dots. This research needs to be done by the individual. However, research requires a healthy portion of curiosity and bravery as well as independence and self-confidence to stand up for one’s own opinion, which will be in contrast to the story we are told by governments and the mainstream media. The emperor has no clothes; however, it always takes time until the child that reveals it will be heard.

The world reserve currency is still the U.S. Dollar (USD) and more than 60% of all the reserves with central banks are still based on the USD, and only approximately 25% are in Euros. Therefore, many more governments and pressure groups are dependent on the USD and have an interest in not disclosing the truth about the actual state of the dollar. Also, in terms of global trade the USD is still the prevailing currency, especially as long as the USD keeps its hegemony over the Middle East and its oil reserves. In addition, specifically related to the USD, there is a single institution that has decisive power. It is therefore much more reactive than the Euro system with different central banks and different nations, each with their own national political agendas. Therefore, the power of the Euro is much more limited, which makes it also more fragile and vulnerable.

Bankrupt governments likely to confiscate wealth and independence

Claudio Grass goes on to point to a concerning trend: as governments run out of money, people’s sovereign rights to wealth and independence get increasingly trampled. What the world is experiencing for the last 100 years is an ongoing centralization especially in terms of credit – the so called monetary system – and political power in the hands of a few. This is only financeable if existing wealth is redistributed from the bottom to the top, through inflation and taxation. Since 2007 the average U.S. family wealth plunged 40%. Back in 1913 the average government quota was less than 10%. Today, depending on the country, (or the state) government quotas are between 50-70%. The trend is obvious! This system can go on until the remaining 50-30% is nationalized. The result is simple: Slavery!

That’s why it is my conviction that we are going to see “tools of financial repression” kicking in much harder within the next 5 years, which will impoverish most of middle class, but also affluent people. I see some parallels with the Weimar Republic before World War II. Back then, the US government in cooperation with Wall Street, flooded especially Germany with cheap credit by implementing the Dawes and Young Plan during 1924 and 1932. Afterwards it happened what always comes after an artificial boom: destruction and bust. This created a toxic environment for persons such as Hitler, Stalin, Franco and Roosevelt, to name just a few who came to power at about the same time, and more important, promoted more centralized political power and war. People were exhausted and the future was not really bright – and we are facing the same symptoms again today. We have 50 Million Americans living off food vouchers and this figure is still climbing. I believe history does not repeat itself but it rhymes, and therefore people need to understand that within the actual system property-rights do not really exist. People need to realize they are dependent on the whims of government and banks.

The first signs of these trends are already visible. Politicians and mainstream media say that things are improving which does not reflect the above mentioned trends. Most economic reports even expect economic growth. How can expectations be so different while everyone is looking at the same data? Claudio Grass answers that question with a quote of Edward Bernays, Father of Propaganda.

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in a democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. [...] We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. [...] In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons … who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.”

Include a monetary crash in your risk assessment

Claudio Grass looks at the mess the world is in today and suggests to include a possible crash of the actual system as part of one’s risk assessments. Therefore, an investment into a tangible asset, without having any counterparty- risk, makes absolutely sense.

It is impossible to foresee when the system will crash. Inevitable does not necessarily mean imminent. However, “I am convinced that this world will look very different in the coming years and what can be said, too, is that it is not developing in the right direction.”

Anthony C. Sutton (British and American economist, historian and notable author, answered this question once by stating: “It will not stop until we act upon one simple axiom: that the power system continues only as long as individuals want it to continue, and it will continue only so long as individuals try to get something for nothing. The day when a majority of individuals declares or acts as if it wants nothing from government, declares it will look after its won welfare and interest, then on that day power elites are doomed.”

I started buying physical Gold and Silver in 2004 and so far it has been a very good investment. At the same time I explored the fascinating history of money; it reads like a criminal novel or even like a horror story in some cases. I personally support a system that is based on free market money where people can freely decide what they want to use as currency – sound money for a sound society. Money stands in the center of how human beings live together. It must be consequently a property title and not a debt promise. Gold and Silver are money in its pure form! They allow people to exchange goods, based on mutual respect and honesty….. With sound money we used to have production and trade and therefore prosperity. With fake money these periods have been dominated logically by corruption and wars; or in the words of Lord Acton, “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.”

UrbanMan's comment: I agree with everything in this article except the very last sentence" "Great men are almost always bad men.” This is simply not true.  Great men are most often common men to rise to meet a challenge. 

Wednesday, October 23, 2013

Dragon Day: A Movie That Will Forecast the Collapse

Dragon Day (the Movie) being billed as "Red Dawn for Intellectuals" just may be predicting how the coming collapse begins. This is an article by James Simpson on American Thinker on Dragon Day which opens 1 November in Theatres and just may serve to take people step by step through this possible? probable? catalyst for the coming collapse.

China, by far the largest single owner of U.S. Treasury debt, has been abandoning Treasury bonds to invest directly in U.S. land, building and businesses. Recently, China entered an agreement with the European Union to swap currencies, forgoing purchases of U.S. dollars -- the world's reserve currency -- to finance transactions. Both of these activities are a consequence of the risk associated with astronomical U.S. debt, almost doubled since President Obama took office. On October 11, China called for the world to be "de-Americanized," its leaders ridiculing Washington over the shutdown impasse.

It is against this backdrop of real events that Dragon Day, a tense thriller set to release November 1st, depicts a Chinese takeover of the U.S. after our government defaults on its debt. Dragon Day Director Jeffrey Travis says, "When I would pitch the film to people, I could rarely finish the logline before the reaction was "Oh my God, that's really going to happen". Our joke was we had to finish the film before it became a documentary.

Given where we are today, that may not be so funny.

The story begins with Ex-NSA engineer Duke Evans, who has lost his job due to the continuing financial crisis. Forced to foreclose on his home, he resettles his family (wife, daughter and sister) in a mountain cabin inherited from his recently deceased grandfather. They have barely gotten in the door when things start happening. Lights go out, the TV goes blank and a huge airliner swoops by at treetop level, erupting in a fireball on the next mountain.

The Chinese have launched a cyber attack. A secret computer virus embedded in Chinese manufactured computer chips has allowed the Chinese military to turn them off remotely. America's entire computer-based infrastructure comes screeching to a halt: power goes off, lights go out, autos and trucks stall, trains go off the rails and planes fall out of the sky.

Evans quickly understands what has happened. He was the NSA engineer who designed a secret government cyber warfare program he now realizes was compromised. He thought he was doing this for his country, but it turns out that many in government have been secretly working for the other side all along. TV service is temporarily restored, and the President announces what has happened, followed by an eerie red screen with the enemy flag symbol and announcement:

THE PEOPLES REPUBLIC WELCOMES YOUR ALLEGIANCE

Evans destroys cell phones and anything else that can lead the enemy to his hideaway. The country quickly reverts to pre-industrial conditions, and the movie offers a fairly realistic window into what would actually happen in such a situation. Stores are ransacked. People begin to starve and die of thirst. Roving bands of thugs begin robbing and murdering.

Anarchy rules. But you are offered escape. If you willingly attach a "Citizen's Freedom Band", presumably you will be spared further anguish. Urgently needed food and water are just around the corner, so you think. But instead it proves to be a high tech dog collar which will kill you if you move out of your assigned zone. Surprisingly, the local sheriff's office has a large supply of these, obviously obtained before the attack occurred.

Unlike Red Dawn and similar fare, there are no absurd heroics, or unrealistic depictions of the town forming a militia to fight off the Chinese hoards. This feels much more authentic. It depicts the kind of anarchy that reigns following major natural disasters, like Hurricane Katrina. Individuals and small groups might band together for good or ill, but organized resistance is nil.

There is no ability to communicate or travel, and food and water are almost nonexistent. Many people do what average citizens would do facing starvation and uncertainty, they put on the bracelets. It becomes obvious that many within government at all levels have conspired with the enemy, but it also becomes obvious that for most, their treason will not pay off.

While some might take comfort in the fact that this is "just a movie," according to Defense Tech, an American-designed, Chinese-made microchip used in defense applications was recently discovered to have a virus hardwired into it. The article states:

Basically, Chinese cyber spies can use the chip's built-in malware to decipher military passcodes and gain remote access to the chip and reprogram it to do their bidding; 'permitting a new and disturbing possibility of a large-scale Stuxnet-type attack via a network or the Internet on the silicon itself,'...

This discovery has led experts to worry that all Chinese manufactured chips may have similar vulnerabilities.

Furthermore, the events depicted in the movie are almost indistinguishable from what would happen following an Electro-Magnetic Pulse (EMP) attack. EMP is the result of either an unusually large solar storm or high altitude detonation of an atomic bomb. It roasts electrical circuitry. As in the movie, aircraft would fall from the sky, transportation would cease, and energy, food and water supplies would vanish. Iran has conducted missile tests believed to be test runs for EMP attacks.

Evans' neighbor Albert, a good friend of his deceased grandfather, has the only vehicle that still works, an old 1976 Ford truck, built before computer chips were used in autos, but this is quickly commandeered by the local police. Like most good characters in a movie however, the truck makes a reappearance later on.

There are some gimmicks the tech-savvy will enjoy. Albert brings over an old short wave radio, but the battery is dead. If Evans can just reach his old NSA boss, he knows he can get help. He rigs up a potato battery to run the radio. Don't laugh; they work! The only thing that bothered me was where the heck did he get all those potatoes?

It also bothered me that they didn't appear to be using the apparently plentiful potatoes as a source of food or water when these ran short. They could have, and did give a few potatoes to two kids who came to the door begging.

But this was a small detail. The movie was fast moving and kept me on the edge of my seat. I appreciated the realism. While watching Communist thugs getting blown away by vengeful high school kids in Red Dawn was gratifying, it was also unrealistic.

A genuine takeover would not go well for such resistors. Dragon Day depicted more of the things that would really happen: friends, neighbors and authorities turning against you -- even the U.S. military, I am afraid to say, as would likely happen in such a situation. At least it would now that Obama has purged patriotic leaders from the military. This movie showed a family doing its best to innovate and survive in a chaotic situation -- much more believable.

I don't want to spoil the rest of it for you so I'll just leave it there. If you are into this kind of survivalist, end-of-the-world-as-we-know-it type film, Dragon Day will not disappoint. The acting is convincing and the entire storyline, right down to the way different people might react in such a situation, really rings true. With all the stuff going on around us in the real world, this movie is all the more frightening. No sugarcoats here. See it in theaters November 1st.


Saturday, October 19, 2013

Is the Possibility of Martial Law Now Higher?

I was forwarded another article for comment with a reader asking, "Is the possibility of Martial Law now higher since these and other allegations have came out?"

The article he sent me is an article written by Nancy Smith (see bio at end of this post) who interviewed a writer concerning allegations of the military is being re-configured to conduct operations inside the U.S., and Generals who were being forced to retire if they could not pass a litmus test on readiness to kill Americans, presumably during martial law.

This may be too far out of touch with reality for some people to accept, me included, however I am now being more open minded as recent things such as the potential shut down of our economy (and government) and calls by some legislators such as buffoon turned Congresswomen turned buffoon Shirley Jackson Lee calling for the President to implement martial law. Her idea was to get the military to attack the anti-obama demonstrations, like the veterans demonstration at the World War II memorial after the shameful shutdown of this open air monument. And there is the precedent of the Executive Office using the IRS to go after political enemies.......Plus another thread is new reports on the US Army teaching classes on the radical extremist and political hate groups which included Christian and Family oriented groups.

So I'll post Ms Smith's article and let everyone decide for themselves.

If the government does default the national debt, which would be a perception not a numbers based standard accounting practices reality, what would happen if the Stock Market tanked? What is welfare cards could not charged with federal money and 46 million people could not buy groceries?......

Nancy Smith's article, titled: "Nobel Peace Prize Nominee Jim Garrow: Our Generations’ Paul Revere?"

It’s not like Jim Garrow was looking for the job. But that didn’t stop a retired U.S General from calling him at 5 in the morning a few weeks ago with some ominous news that the General wanted to get out the public, but who also knew he would literally risk his life if he went public with a startling allegation.

The allegation: The president of the United States is asking active-duty officers to pass a “litmus test” to continue their service to our country.

The test: Will you open fire on American citizens if so ordered?

We’ve all seen the headlines lately regarding gun control legislation, shooting rampages and now drone strikes on American citizens. To say it can all become a bit disconcerting would surely be an understatement.

However this news takes the danger to a whole new level. As a long-time friend of the General, Jim Garrow agreed to spread the word, as well as promised to keep the General’s name secret. Since he first posted the info on his Facebook page on January 20, 2013, the story went viral and was picked more than 100 news agencies including: FOX News 19 in Cincinnati-Ben Swann, Operation Freedom Show-Dr. Dave Janda, Next New Network-Gary Franchi, The Examiner, World Net Daily, Alex Jones, and Before It’s News, just to name a few.

One of those news outlets is now Politichicks, because I recently had the honor of interviewing Dr. Garrow via telephone from his home in Canada.

So just who is Jim Garrow?

James Garrow, PhD. is an educator, businessman and author. He has been a college president, a principal of a teachers college, has an earned doctorate degree as well as been given an honorary doctorate from North Carolina College of Theology. He is also the founder of the Bethune Institute, which operates hundreds of schools throughout China. The children of many of China’s top elite in the military and politics attend his schools.

As if that weren’t enough, three years ago Dr. Garrow was nominated for the Nobel Peace Prize for his work through a group called Pink Pagoda Girls. PPG combats female gendercide by rescuing baby girls that are slated for infanticide or abandoned due to the Chinese government’s one child policy. According to his website, Garrow and his group have personally helped to save the lives of nearly 50,000 baby girls!

It Started With A Magazine. What led Dr. Garrow to make such an ominous statement began a number a years ago when Dr. Garrow sat on the board of Crisis Magazine, a Catholic magazine based out of Washington DC. While there he became friends with some of the other board members including Bill Bennet, Secretary of Education under Reagan, Alexander Haig, Sec. of State under Reagan, Bill Simon, Sec. of the Treasury under Nixon and Ford, and others. It was through them that he became acquainted with a particular high ranking military officer and over time the two became good friends.

That is why when Dr. Garrow received a phone call from him saying that he had an important message that needed to get out to the American people in a safe way, Dr. Garrow took it to heart. This now-retired military general went on to say that he had been recently contacted by a close friend, who happened to be another high-ranking military officer who was currently still serving. He called the retired general to tell him that although it was unexpected, he, too, was now retiring and leaving the service. He went on to say that this was not his choice but that he was basically being “shown the door” because he was being asked a question, and depending on how he answered seemed to be the deciding factor as to whether he was to stay or leave.

“Here is the question we are being asked: ‘If in a scenario the military were called upon to go and confront people who were armed, American citizens, who would not relinquish their arms, in spite of the Second Amendment right to keep and bear arms, would you follow the command to fire on American citizens?’”

The general told Dr. Garrow that this officer was completely flummoxed at the question and answered ‘No, I would not fire on American citizens.’ He was then forced to resign his commission immediately.

“It has nothing to do with right or wrong, Constitutional or unconstitutional any longer… They are looking for blind allegiance,” Garrow said. He said to watch the headlines for more like himself being replaced in “untimely exits”. He also said that some might choose to remain silent and try to stay in to see what they can do from the inside.

China’s Influence Grows in U.S. To Dangerous Level. Dr. Garrow and his source talked about several other topics over the next hour. These included how China desperately wants America disarmed. He said, “It’s no secret that we owe an enormous debt to China that will be almost impossible to repay.”

“With China in great need of energy resources and the USA rich in coal, natural gas, oil and farmland, we are being parceled off and promised to the Chinese as a form of debt repayment. This is why you are seeing the systematic closing of our mines, refineries, and family farms, etc. through govt. regulation. Once they are closed the Chinese will have permission to come in and run them since no one else will be using these facilities. But the Chinese are very much afraid retaliation by an armed American citizenry. As a result the Chinese fear they will not see their debt repaid. They have offered to help with whatever means necessary to disarm the public.”

Media Hopelessly In the Tank for Obama. Another topic the two discussed was how baffled he and others in the military are by the sycophantic support of the unofficial fourth branch of government, the media. What used to be the vetting watchdogs of corrupt politics have now become the Obama “cheerleaders.” This is why Dr. Garrow was sought out as a trusted messenger to alternate media sources and anyone who will listen. The request to not have this generals’ identity divulged is being taken very seriously. He cited a number of other high-ranking military officials that have shown up dead from bizarre accidents or mysterious suicides when they decided to go public with anti-American government information…

Launches Contest to Give Away 1,000 FMK Handguns. So for now Dr. Garrow will continue to get this message out as best he can. He feels it is important for all citizens to be armed and prepared at this time, and he’s doing more than just talking about it. He is putting his money where his mouth is by joining forces with Next News Network, Gun Owners of America and FMK Firearms to give away 1,000 9calibre FMK Generation 2 handguns through his Pink Pagoda Girls program. Contestants just need to be over 18 and register with his site: http://www.pinkpagodagirls.com/ FMK Firearms is an American owned company and engraves every gun with the Second Amendment.

Our modern day Paul Reveres are sounding the alarm Americans. To be forewarned is to be forearmed.

Ohio PolitiChick Nancy Smith has been very active raising her family of six children and only in the past few years has she become active in politics beyond just the basics. Nancy realized several years ago that our country was headed in the wrong direction on just about every measurement available, and that sense of drift was brought into focus with the 2008 election of President Obama.

Since her options were somewhat limited due to her family's needs, Nancy poured herself into "working from the kitchen table" and built a worldwide base of 5,000 friends on facebook from a wide-variety of backgrounds. That exposure led to a role as a regular contributor on the Conservative Commando Radio Show, and most recently, to a role as a national contributor on Politichicks.tv.

Nancy is a graduate of Northern Arizona University. She and her husband Ron and their family reside in northeast Ohio. You can find Nancy on http://facebook.com/nancysjustright and on twitter @nancysjustright.

Then we have this warning on coming Martial Law

Ex-US Navy SEAL Ben Smith joins Fox News and drops a bombshell on the US government by revealing that the government itself is creating the conditions necessary to impose martial law here in America. This is a must watch video for those who feel martial law is merely believed by conspiracy theorists. Veterans and US Navy SEALS see the same thing!





Wednesday, October 16, 2013

what would Gold be Worth in the Collapse?

Phil wrote to Urban Survival Skills to ask: "Urbanman I have emailed you in the past on various subjects and I have a question, how will gold and silver be valued in a collapse? For example, todays price is $1300 USd for gold and $21.94 for silver. How will value be assigned? If a decline inflation (of commodities) or deflation (value of the fiat currency) occurs, then it will be assessed against the current dollar value. Years ago on a UN Mission to the Golan Heights the scheckle (did I spell that correctly?) was 124 to the US dollar the day I arrived and was over 400 six months later and climbing. I understand inflation, I suppose a more accurate statement would be what intrinsic value do these metals have and will the yard stick they will be measured against be the failed dollar? Your comments will be appreciated TTFN an old Sojer."

Stephen Lendman, in an article entitled, "Public Banking Avoids Today's Debacle" made some key points which effect the value of the fiat dollar and rise in prices of commodities which effect the value of previous metals, albeit this is before a real collapse. Right now we are seeing:

• rising consumer debt;
• record budget and trade deficits;
• an out-of-control national debt;
• record numbers of personal and business bankruptcies;
• millions of home foreclosures;
• depression level unemployment, poverty, homelessness and hunger; • an unprecedented wealth gap between rich elites and ordinary Americans; and
• a hugely unstable economy lurching from one crisis to another.

At one time, dollar value was defined as 1/20th of an ounce of gold or about an ounce of silver. Spot gold today sells for over $1,300 an ounce. Spot silver is about $21.50. Analysts expect much higher prices. And that is your question,....how much higher will Gold go?

Well, first let's look at the bullet comments above. Are these facts new? Were the figures worse a year ago? Two years ago? I submit that these key indicators are worse or at the very least some are the same as where they were a year ago and two years ago when Gold was selling at a much higher number.

The only thing that has changed is the perception of the people that things are getting better,...but you can only fool the creditors and your accountants for so long.....and you'll never fool the Chinese!

I believe that the value of Gold (and Silver) came down as the "perception" of the strength of the US dollar and the US Economy rose. Just wait until the curtain is pulled back!

Gold is certain to rise. The worse the economy, the higher the Gold value. If the US government does what I expect them to do, and that is to try and confiscate private Gold (and silver) bullion, then Gold will certainly be traded on the black market as prices much higher than the official Government line.

And by confiscate I mean mandate a trade-in for fiat currency, and outlaw private ownership of all but a small amount of bullion, or maybe allow collectors coins with silver content. In any event, we may not see a revolution in this country, but the vast majority of people will hide their Gold and Silver.

I also predict that a national Gold prohibition would come before a comprehensive gun ban - it, the gold ban, would affect less people and would be justified to the masses under a combination of socialist gobbleygook or what rural folk call plain old bullshit.

I think in an economic collapse Gold will easily hit $2000 an ounce and continue to climb, however in a major collapse with communications extinct, regional Gold values or the agreed upon value per barter transaction will vary widely depending on the need for the item being bartered for with Gold. What would you pay (in Gold) for anti-biotics for your wife if she had a major infection? How much per ounce would Gold be if your child needed insulin?

I'm sorry Phil that I can't answer your question more precisely, but their are too many variables. Suffice it to say that while Gold may drop and rise and drop again,...it will certainly rise when the collapse hits. However you still can't eat Gold nor can you protect yourself with it unless you hit someone over the head with a large bar of it. I consider Gold and Silver as necessary components of my survival stocks, sometimes more important than handtools, stored fuel, non-hybrid seeds, and sometimes not as important, depending upon the depth of the collapse and what my current needs would be.

stay safe, cheers

Saturday, October 12, 2013

Surviving Home Replicates Likely Collapse


While I finished the book "Surviving Home" over a month ago I didn't get motivated to write about it until I received notice that the third book "Escaping Home" in this excellent series by A. American was available for pre-order. The first book, "Going Home", was a story about a man who found himself several hundred miles away from his family when EMP shut everything down and chronicled his journey trying to get back to his family and community.

Morgan Carter, the main character in this series, is a prepper, married and has a couple children. He was prepared with his Bug Out or Get Home bag, so he was prepared to walk and survive the 250 miles back to his prepared home.

I found the first book pretty realistic on how I envision the collapse environment with the story of Morgan encountering people who "go ugly early" in their attempts to better themselves and their situation through robbery, depredations and control. I had previously wrote a short review on A. American's first book.

The second book, Surviving Home, took up with the main character, Morgan Carter, back in the community and facing several realistic situations:

An unprepared community. One of the many faults with the suburban or community Bug In plan is that many, if not most, of your neighbors will be unprepared for the collapse. Many of these will be burdens on the few that are prepared. Many will resist any leaders stepping up; Many will turn on you because you have prepared and they have not.

Entitiliest community members. Many neighbors, in both A. American's excellent book and what I believe reality would be, will think that they are owed a share of another's foresight to prep. Surviving Home has some realistic scenarios, and dialog between characters, reverting to immoral behavior when faced with starvation. With that fear to imminent starvation and you have a volcanic situation.

Lack of organization. While many communities will not have an existing or "live in" organized law enforcement entity which could generate a basis for organized security, Surviving Home's story line did, although this character was a weak link for organizing a community security plan which of course would normally include procedures, training, and defensive measures. Not only is a sound security plan a requirement but organizing the community for the long haul which include food, fuel, and material procurement,..... water procurement, filtering, sterilization and storage and even short and long range procurement, reconnaissance and security patrols. A solid leader would have utilized all existing community member skills to the upmost. But then again, I say that "Surviving Home" was realistic and it was.

A. Americans novels also have a twist where the main character's is aided by some ex-soldiers now working for the Military to keep Homeland Security from running amok and turning this country into a facist state.  Good story all will enjoy - look for the lessons. 

We, preppers in general, read Survivalist novels such as the "Going Home, Surviving Home and Escaping Home" as well as the well known series of books written by James Wesley, Rawles for several reasons,......they are entertaining,....we pickup situations and tips that we didn't plan for or even think about. So it helps if they are realistic, as well as entertaining. A. American's series is my favorite survivalist series and this includes the ones by Rawles, Joe Nobody and Crawford.


Saturday, October 5, 2013

Five Stages of Collapse

I have been hearing the term "Five Stages of Collapse" from a couple different sources, so I decided to look it up and see what people were referring to.  I found references to the 5 stages of collapse from this article from the Market Oracle in the United Kingdom.  Yep, the same United Kingdom who faces many of the same problems we in the U.S. face,......devalued fiat currency, growing radical muslim population, growing poverty population, encroachment of governmental powers. But the U.K. has worse issues than us with their restrictive gun control laws and the physical footprint of living on an island greatly reduces mobility and Bug Out planning.

We are witnessing the beginning stages of political collapse. The government and its leaders are being discredited on a daily basis. The mismanagement of fiscal policy, foreign policy and domestic policy, along with the revelations of the NSA conducting mass surveillance against all Americans has led critical thinking Americans to question the legitimacy of the politicians running the show on behalf of the bankers, corporations and arms dealers. The Gestapo like tactics used by the government in Boston was an early warning sign of what is to come. Government entitlement promises will vaporize, as they did in Detroit, with pension promises worth only ten cents on the dollar.

Total social and cultural collapse could resemble the chaotic civil war scenarios playing out in Libya and Syria. The best case scenario would be for a collapse similar to the Soviet Union’s relatively peaceful disintegration into impotent republics. I don’t believe we’ll be this fortunate. The most powerful military empire in world history will not fade away. It will go out in a blaze of glory with a currency collapse, hyper-inflation, and war on a grand scale.

The day of reckoning for a century of putting our faith in the wrong people with wrong ideas and evil intentions is upon us. Dmitry Orlov provides a blueprint for the collapse in his book – The Five Stages of Collapse – Survivors’ Toolkit:

Stage 1: Financial Collapse. Faith in “business as usual” is lost. The future is no longer assumed to resemble the past in any way that allows risk to be assessed and financial assets to be guaranteed. Financial institutions become insolvent; savings wiped out and access to capital is lost.

Stage 2: Commercial Collapse. Faith that “the market shall provide” is lost. Money is devalued and/or becomes scarce, commodities are hoarded, import and retail chains break down and widespread shortages of survival necessities become the norm.

Stage 3: Political Collapse. Faith that “the government will take care of you” is lost. As official attempts to mitigate widespread loss of access to commercial sources of survival necessities fail to make a difference, the political establishment loses legitimacy and relevance.

Stage 4: Social Collapse. Faith that “your people will take care of you” is lost, as social institutions, be they charities or other groups that rush to fill the power vacuum, run out of resources or fail through internal conflict.

Stage 5: Cultural Collapse. Faith in the goodness of humanity is lost. People lose their capacity for “kindness, generosity, consideration, affection, honesty, hospitality, compassion, charity.” Families disband and compete as individuals for scarce resources. The new motto becomes “May you die today so that I can die tomorrow.”

The collapse is occurring in fits and starts. The stages of collapse do not necessarily have to occur in order. You can recognize various elements of the first three stages in the United States today. Stage 1 commenced in September 2008 when this Crisis period was catalyzed by the disintegration of the worldwide financial system caused by Wall Street intentionally creating the largest control fraud in world history, with easy money provided by Greenspan/Bernanke, fraudulent mortgage products, fake appraisals, bribing rating agencies to provide AAA ratings to derivatives filled with feces, and having their puppets in the media and political arena provide the propaganda to herd the sheep into the slaughterhouse.

The American people neglected their civic duty to elect leaders who would tell them the truth and represent current and future generations equally. They have neglected the increasing lawlessness of Wall Street, K Street and the corporate suite. The American people have lived in denial about their responsibility for their own financial well-being, willingly delegating it to a government of math challenged politicians who promised trillions more than they could ever deliver. The American people have delayed tackling the dire issues confronting our nation, including: $200 trillion of unfunded liabilities, the military industrial complex creating wars across the globe, militarization of our local police forces, domestic spying on every citizen, allowing mega-corporations and the financial elite to turn our nation from savings based production to debt based consumption, and allowing corporations, the military industrial complex, Wall Street, and shadowy billionaires to pick and control our elected officials. The civic fabric of the country is being torn at the points of extreme vulnerability.

“At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability – problem areas where, during the Unraveling, America will have neglected, denied, or delayed needed action. Anger at “mistakes we made” will translate into calls for action, regardless of the heightened public risk. It is unlikely that the catalyst will worsen into a full-fledged catastrophe, since the nation will probably find a way to avert the initial danger and stabilize the situation for a while. Yet even if dire consequences are temporarily averted, America will have entered the Fourth Turning.” - The Fourth Turning – Strauss & Howe – 1997

Our Brave New World controllers (bankers, politicians, corporate titans, media moguls, shadowy billionaires) were able to avert a full-fledged catastrophe in the fall of 2008 and spring of 2009 which would have put an end to their reign of destruction. To accept the rightful consequences of their foul actions was intolerable to these obscenely wealthy, despicable men. Their loathsome and vile solutions to a crisis they created have done nothing to relieve the pain and suffering of the average person, while further enriching them, as they continue to gorge on the dying carcass of a once thriving nation. Despite overwhelming public outrage, Congress did as they were instructed by their Wall Street masters and handed over $700 billion of taxpayer funds into Wall Street vaults, under the false threat of systematic collapse. The $800 billion of pork stimulus was injected directly into the veins of corporate campaign contributors. The $3 billion Cash for Clunkers scheme resulted in pumping taxpayer dollars into the government owned union car companies, while driving up the prices of used cars and hurting lower income folks.

Ben Bernanke has peddled the false paradigm of quantitative easing (code for printing money and airlifting it to Wall Street) as benefitting Main Street. Nothing could be further from the truth. He bought $1.3 trillion of toxic mortgage backed securities from his Wall Street owners. He has pumped a total of $2.8 trillion into the hands of Wall Street since September 2008, and is singlehandedly generating $5 billion of risk free profits for these deadbeats by paying them .25% on their reserves. Drug dealer Ben continues to pump $2.8 billion per day into the veins of Wall Street addicts and any hint of tapering the heroin causes the addicts to flail about. Ben should be so proud. He should hang a Mission Accomplished banner whenever he gives a speech. Bank profits reached an all-time record in the 2nd quarter, at $42.2 billion, with 80% of those profits going to the 2% Too Big To Trust Wall Street Mega-Goliath Banks. It’s enough to make a soon to retire, and take a Wall Street job, central banker smile.

“The money rate can, indeed, be kept artificially low only by continuous new injections of currency or bank credit in place of real savings. This can create the illusion of more capital just as the addition of water can create the illusion of more milk. But it is a policy of continuous inflation. It is obviously a process involving cumulative danger. The money rate will rise and a crisis will develop if the inflation is reversed, or merely brought to a halt, or even continued at a diminished rate. Cheap money policies, in short, eventually bring about far more violent oscillations in business than those they are designed to remedy or prevent.” – Henry Hazlitt – 1946

Any serious minded person knew Wall Street had too much power, too much control, and too much influence in 2008 when they crashed our economic system. When something is too big to fail because it will create systematic collapse, you make it smaller. Instead we have allowed our sociopathic rulers to allow these parasitic institutions to get even larger. Just 12 mega-banks control 70% of all the banking assets in the country, with 90% controlled by the top 86 banks. There are approximately 8,000 financial institutions in this country. Wall Street will be congratulating themselves with record compensation of $127 billion and record bonuses of $23 billion for a job well done. It is dangerous work making journal entries relieving loan loss reserves, committing foreclosure fraud, marking your assets to unicorn, making deposits at the Fed, and counting on the Bernanke Put to keep stocks rising. During a supposed recovery from 2009 to 2011, average real income per household grew pitifully by 1.7%, but all the gains accrued to Bernanke’s minions. Top 1% incomes grew by 11.2% while bottom 99% incomes shrunk by 0.4%. Therefore, the top 1% captured 121% of the income gains in the first two years of the recovery. This warped trend has only accelerated since 2011.

When the financial collapse reaches its crescendo, the just in time supply chain, that keeps cheese doodles and cheese whiz on your grocery store shelves, Chinese produced iGadgets in your local Wal-Mart Supercenter, and gasoline flowing out of gas station hoses into your leased Cadillac Escalade, will break down rapidly. The strain of $110 oil is already evident. The fireworks will really get going when ATM machines run dry and the EBT cards stop functioning. Within a week riots and panic will engulf the country.

“At some point we are bound to hear, from across two oceans, the shocking words “Your money is no good here.” Fast forward to a week later: banks are closed, ATMs are out of cash, supermarket shelves are bare and gas stations are starting to run out of fuel. And then something happens: the government announces they have formed a crisis task force, and will nationalize, recapitalize and reopen banks, restoring confidence. The banks reopen, under heavy guard, and thousands of people get arrested for attempting to withdraw their savings. Banks close, riots begin. Next, the government decides that, to jump-start commerce, it will honor deposit guarantees and simply hand out cash. They print and arrange for the cash to be handed out. Now everyone has plenty of cash, but there is still no food in the supermarkets or gasoline at the gas stations because by now the international supply chains have broken down and the delivery pipelines are empty.” – Dmitry Orlov – The Five Stages of Collapse