The State of Today

I wanted to titled this "Urban's Man Rant", but a rant insinuates an emotional aspect to one's opinion. And I am stone, cold sober and rational looking that these issues.......not angry,...but a lot concenred, maybe somewhat scared.

It started the other night as my wife and I were watching "Revolution the television show". My wife commented to the effect that it seems like everyone is preaching armagedon and collapse, or, capitalizing on the general belief that things are going downhill and collectively we expect bad things to occur.

I told her she was right and that while you can fool some of the pople some of the time, you can't fool all of the people all of the time. And that people's intuition is stronger than their analytical skills.

Back to the television,.........I don't think I'll be sitting through another episode of "Revolution". The first few minutes showing years after a EMP event where the main characters have built a agricultural enclave on a suburban street (totally realistic and necessary) but then a militia group on horseback enters the community unannounced, no early warning systems, no barriers or obstacles, no weapons nor trained response left me wondering if the entertainment value would supercede the non-enjoyment of seeing un-realistic bad examples.

While my wife understands and supports our preparation aspects and the development of several families in our "survival group", she like many Americans usually decides to ignore analysis of the possible bad things,...she basically leaves it to me to plan and prepare.

I placed the television on mute to explain (again) what Electro Magnetic Pulse was and the possible sources or causes of an EMP event. While many of you believe that EMP is vastly over rated for it's effects it would have on the U.S. infrastructure, I assure you that it is not over estimated.

In a previous life I have done threat and vulnerability assessments on utilities facilities and some of the management was pretty open about how easy it is to bring down major power and telecommunications facilities,...but more importantly in the apsects of an EMP,....very difficult to re-build.

If the threat of EMP isn't enough, we have a good 1/3 of the world pissed off at the U.S.  Doesn't matter if the complaint is legit or not,. there are currently large scale anti-American demonstrations in Libya, Algeria, Tunisia, Egypt, Niger, Mali, Lebanon, United Arab Emirates, Indonesia, Pakistan, Afghanistan and even Austrailia. Political corruption is not only wide spread,.....but the perpetrators aren't even trying to hide it now. Openly disregarding the constitution in many cases. Reminds historians of the last great act of the Roman empire, and that was to loot the treasury.

This country is a year, maybe months away from more people being on welfare than not. Think about that once the treasury is empty.

The only way we are going to be able to survive as individuals and as a culture is to develop some type of team. Let me back up a bit. Meaning by beliefs not segregated by race or ethnic groups. This is a culture that aspires individual rights, a moral code and compassion for those who cannot help themselves. I have talked at length before on the necessity of developing a survival group. This does not mean that you have to live in a commune now,.....it can,...but it is unrealistic for 90% of Americans. Your survival team can be just a network of alike minded individuals and families.

It's important to vet your people as to their ability to live together and get along. I would much rather have straphangers, with skills and without supplies or equipment, integrating into my team, than to accept some exceptional trained and prepared person who cannot act with the team foremost on his mind.

STHF Prep: The Race for Physical Gold and Silver

From the article: The Global Physical Gold & Silver Reserves Race is the New Nuclear Arms Race. If the ownership of physical Gold and Silver is not important, then why are people, institutions and countries racing toward stockpiling it? Again, the complete Survival Plan must have some Gold and/or Silver. This is the same as having as Bug Out Bag,...having extra magazines for your rifle,....essentially the same as any contingency. Most preppers did not stock 6 months of food overnight, not did they accumulate a SHTF - Prepare for the Collapse Survival firearms battery overnight. This is a continuous process. I would rather have 6 ounces of silver than none; I would rather than 100 ounces when the collapse commenced than just 50 ounces. The purchase of Gold and/or Silver scares people sometimes because it's value can go down,...what about the value of food that you have bought and has spoiled? Or the AR-10 rifle you bought and will (hopefully) never have to use for the purpose you bought it for?

Add JS Kim and the above website to your financial indicators research and tracking list to be prepared for when SHTF otherwise known as the Collapse or Financial Armageddon.

The old Cold War USA-USSR nuclear arms race has been replaced by the East-West Central Bank battle to accumulate physical gold and physical silver reserves. While Western Central Banks and their puppet bullion banks have distracted and goaded private citizens with the invention of fraudulent bogus paper gold and paper silver derivative products, including ETFs more recently, and paper futures contracts for a much longer period of time, they themselves have been making sure to avoid the very fraudulent paper products they have invented and have been diving headfirst into real physical precious metals.

As Central Banks continue to significantly devalue all major global currencies through excessive creation of new supply out of thin air in a digital world where “new money” is never even printed into paper/cotton form but only is created as digital bytes that are sent across international borders, the private families that are the majority shareholders in the world’s most powerful Central Banks have engaged in heavy buying of physical gold in particular, and to a lesser degree, physical silver. In 2010, Central Banks as a group, became net buyers of physical gold after two decades as net sellers. EU Central Bankers became net buyers of physical gold for the first time during the 1st Quarter 2011 since their introduction of the heavily flawed Euro into circulation in January of 2002.

As of April 2011, China was, according to “officially reported” statistics, the sixth-largest official holder of gold, with 1,054.1 tonness, according to World Gold Council estimates. The U.S. was still reported to possess the largest gold reserves at 8,133.5 tonnes. However, all of you know by now that I believe all “officially reported” statistics, whether the statistic is GDP, unemployment, inflation, or gold reserves, to be a charade and mockery of the truth. To this day I am highly skeptical of the US reported reserves of 8,133.5 tonnes, especially since these reserves have neither been independently audited nor independently tested to ensure that they meet good-for-delivery bar status since Dwight D. Eisenhower was the US President in the 1950s. As for China ’s “officially reported” holdings of only 1,054.1 tons, anyone that takes these reported stats at face value as the truth is a fool for any number of logical reasons. One , China reported that its “official” gold holdings were a constant 600 tons from 2003 to 2009 and then reported that it had increased its holdings to more than 1,000 tons overnight in 2009. Since China lied about its gold reserve holdings for more than 6 years, one cannot and should not assume that their “officially” announced 1,054.1 ton level was truthful. Since China made that announcement in 2009, their “official” gold reserve level has not increased at all.

Anyone that believes that China has not accumulated more gold, and lots of it, since that time, does not understand the Chinese government and Chinese bankers. Chinese bankers have been studying the best ways to invest in gold and silver for many years now in preparation for this global monetary war and they realize that one of the best ways to invest in PMs is to own the real thing. Furthermore, there are multiple mechanisms by which China could be secretly increasing their gold reserves out of the scrutiny of the public eye. In 2008, China replaced South Africa as the largest gold producer in the world, but nobody really knows exactly how much gold China produces or how many proven/ probable reserves or how much measured/indicated resources they own. Thus, China could be increasing gold reserves significantly on in-house production alone. Certainly we know that China is increasing its silver reserves through a policy of decreasing its domestic silver exports and increasing its foreign silver imports.

For example, last month, China ’s General Administration of Customs reported that its net imports of silver nearly quadrupled year-over-year in 2010 to more than 3,500 metric tons. Also of important note is the fact that in 2010, China exported 1,575 metric tons of silver, 58% less than in 2009, and imported 5,159 metric tons of the metal, 15% more than in 2009. This is a huge change if one realizes that from 2005 to 2010 China transitioned from a net exporter of 2,900 metric tonnes of silver to a net importer of 3,500 metric tonnes.

From 2005 to 2010, China increased its gold holdings in its State Administration of Foreign Exchange (SAFE) more than tenfold from a very small starting point of USD $4.2 billion to USD $48.1 billion. However, China could be increasing gold (and silver) reserves significantly through purchases in its Sovereign Wealth Fund – purchases that are not made available for public inspection or consumption. For China to publicly announce their buildup of gold and silver reserves that would drive up the price of the very commodity they wished to accumulate more of would be akin to then-Chancellor of the Exchequer Gordon Brown’s foolish decision to pre-announce in 1999 that the UK would be selling half of its gold reserves.

Also of important note are the following facts. China only recently deregulated gold in 2003 to allow gold prices in China to mirror international prices. The Shanghai Gold Exchange only opened in October of 2002. In late 2009, the Chinese started making gold and silver bullion easily accessible to its citizens through introducing physical sales of multiple size bars at its banks and China finally legalized ownership of 99.999% pure silver bullion. The Chinese typically have a tendency to buy PHYSICAL gold and PHYSICAL silver, not the fraudulent paper gold and paper silver derivatives invented by bankers to suppress the price of gold and silver. For the first time ever, Chinese citizens will be able to buy silver futures in Hong Kong this week and later in Shanghai ; however, since the Chinese are fond of owning Physical metals, perhaps even the majority of Chinese may settle these futures contracts with physical delivery. Furthermore, even when the option to buy gold and silver ETFs in China becomes a reality, the average Chinese citizen may shy away from these products due to his or her propensity for owning real gold and real silver.

For Asians in general, gold and silver have always been money. In Thailand , the word for money “ngen” is also the word for silver. In China , the word for bank combines the characters for “silver” and “movement”. In China not only is private demand strong AND relatively young, but even in India , private ownership of gold bullion bars was not legalized until 1990. Thus, the war between East and West over gold and silver will intensify in coming months and coming years. The objective of the East will be to release the gold and silver price from the clutches of Western price suppression schemes while the objective of the West will be to hoard gold in an attempt to prevent citizens of Western nations from owning the asset that will protect them the most from their currency devaluation schemes.

The current talk in the mainstream financial media about gold being a bubble at $1,600 an ounce and of silver having already reached its top of its long-term peak at $50 an ounce is simply rubbish. A bubble is never defined by high prices, the perception of high prices or even a decade long rise in prices. What defines a bubble is a meteoric rise in price that is not supported by fundamental reasons. For example, the US NASDAQ dot.com stock market was a bubble because dot.com stocks that had zero earnings were trading at impossible valuations and sometimes double and triple digit dollar values per share. However, the fundamental reasons that have driven gold from $250 to $1,600 and silver from $4 to its current $39 – $40 range are even stronger today than they were at the beginning of this precious metals bull. Therefore, it is impossible for a bubble in gold and silver to exist at their current prices and at this current time.
And for this reason, this is precisely why the global nuclear arms race has been replaced by a global physical gold race. Welcome to the new global war in precious metals.

J.S. Kim
SmartKnowledgeU

JS Kim is the Managing Director and Founder of SmartKnowledgeU, a fiercely independent investment consulting and research firm that devises investment strategies to protect Main Street from the fraud of Wall Street.

Urban Survival Planning - Collapse Threats Expotentially Greater

UrbanSurvivalSkills.com thinks that the conflagrations going on in Africa, the Middle East and Southwest Asia have risen the potential threat level here in the United States exponentially.

Apparently Glenn Beck has something to say about this also, go here to see it, glennbeck.com

I just finished reading a book entitled “What We Once Proudly Hailed” written by John Doe, on a scenario where North Korea sailed a diesel submarine, outfitted with short range nuclear missiles, into the Gulf of Mexico and fired missiles into major cities. Following that, another missile strike from an unidentified source, which the book leads you to believe was radical Islamists, hit the U.S. further creating chaos and anarchy and sending the collapse into free fall. The book ends with internal and external based Muslim groups influencing or controlling corrupt politicians and large sections on the East Coast. Good book and a recommended read. But more important, here’s why that isn’t necessarily a fantasy scenario.

In NORTH AFRICA, see graphic above, Tunisia ( # 1 ) is under revolt based on an heavy handed government and lack of food. Algeria ( # 2 ) is also near revolt. Both could easily install a radical Islamic government a la Iran . Both would threaten their neighbors, pro-western Morocco and neutral Chad , and influence Libya to go back to the anti-Western, pro-terrorist mode. Algeria and Tunisia could exert influence into the Mediterranean Sea much like the Al-Qaeda backed Somalian pirates do now. Forty percent of the oil imported from the Middle East transit the Mediterranean Sea . Anyone for $5 a gallon gas?

Sudan ( # 3 ) is in a civil war. The government of Sudan is radical Islamist in nature and can influence the surrounding countries including fermenting Islam based terrorism and revolution. Nigeria ( # 4 ) has a Islamic terrorist movement which threaten not only the government but control over the Nigeria oil supplies. Anyone for $6 a gallon gas? And last but not least, Somalia ( # 5 ), home to Al Sahaab terrorists and pirates interdicting commercial and petroleum transport ships and trying to extend radical Islam into sub-Shaharan Africa,…next on their list is Kenya.

In the MIDDLE EAST and SOUTHWEST ASIA , conditions are much more dire. See Map graphic above. I am including Egypt ( # 1 ) which in case you don’t have a television or radio, is under a popular revolt influenced greatly by the Muslim Brotherhood. Imagine Egypt with the vast military (built by the U.S. ) and their location controlling the Suez Canal AND their location next to Israel being controlled by Muslim nut jobs. Again 40% of oil transit the Mediterranean Sea, but first comes through the Suez Canal .

Jordan ( # 2 ) is under a threat of revolt as well. King Abdullah just shit canned his cabinet trying to make things right before the population throws him out. Iraq ( # 3 ) – well you should know about Iraq . I envision this country to collapse into civil war and eventually be controlled by radicals within 3 years of the U.S. leaving as we are scheduled to. Turkey ( # 4 ) is set to go from a secular, pro-west country to a Islamic controlled country. If you remember Turkey was the originator of the arms shipments destined for Hamas in Gaza for terrorist strikes at Israel .

Yemen ( # 5 ) is under attack from internal and external Al Qaeda groups and can easily fall, ending up controlled the southern access to the Suez Canal – so if either Egypt or Yemen are controlled by Islamist you can kiss ANY chance of cheap gas goodbye. Can anyone say “Oil Embargo”?

Iran ( # 6 ) along with North Korea both possess or are in short approach to possess not only Nuclear weapons but deliver methods as well. Both are sponsors of terrorism and can be easily seen equipping terr cells with nuclear devices. Coupled with our porous and ineffective border security,…well, can anyone say “Lights Out”, or “One Second After”?

Tajikistan ( # 7 ) has an Islamist terrorist movement, routinely killing government troops. Afghanistan ( # 8 ) can easily fall back to Taliban – Al Qaeda control after our withdrawal. Both would threaten nuclear Pakistan . Speaking of Pakistan ( # 9 ), they have significant nuclear stocks and ingrained presence of Islamic terrorist cells and could easily fall into a radical Islamic state. Another threat to this country.

India ( # 10 ) is also nuclear armed and enemies with Pakistan . Lebanon ’s (# 11) government just disintegrated. Islamist terr group, Hezbollah, controlled by Iran and Syria could easily take over.

Again, if just a few of the potential changes occur, we could see everything from an Oil Embargo and skyrocketing gas prices, or, a regional war that makes the 1967 and 1973 Arab-Israeli Wars look small, or, we actually could be seeing the set up for Armageddon this year, next year or soon after. In any event, things are not looking good for the U.S. After Israel, radical Islam’s biggest enemy is the U.S. Imagine all of the Arab world gone radical Islamist and focusing their resources and attention on us. Prepare my friends.