The End of America as we know it to be is imminent. That is a bold statement and I do not make it lightly, but it is the truth. My reasons are varied and many and there is ample evidence that have led me to make that statement. I’ll try to keep this blog post short, but include as much fact as I can to back that statement.
Fiat Currency and Global Debt
Paper money, known as Fiat Currency (not backed by tangible wealth such as Gold) is fast becoming the world’s downfall. It's not just the US printing money, the EU, Britain and even Japan are printing money at a record setting pace. And they are going deeper in debt at a record pace.
Japan may be the first to fall, yes Japan. Thought they were OK didn't you? With spending and printing out of control Japan currently owes 183% of it's GDP!
Greece is right behind them with about 160% of their GDP and the list goes on. Ireland, Spain, Portugal, the UK and the US all owe more this year then their GDP! Technically they are all bankrupt.
We don't see it much here in the US yet, but food is rising at a record rate here and around the world. And supplies are running out due to natural disasters. India has had crop failures in onions and carrots, two huge staples in that country.
South East Asia has seen failures in Buckwheat another staple for that region. Chilies in Malaysia, wheat in Australia, corn in Argentina (most of Mexico gets it's corn from Argentina). Here in the US rice production is down by 25% as farmers convert their fields to higher paying corn and soybeans (up to $60 per acre more). That is having a huge impact on countries like the Philippines and Bangladesh as we are a huge exporter of rice.
Many commodities experts say that we are only one crop failure away for global food riots, as we have seen recently in the middle east. Many of those riots are as much about the cost of food and wages and unemployment as they are about politics.
What the Government Has Up It's Sleeve
Ben Bernake says he has the magic pill to restore the dollar and it's been used a few times before in history. Notably the Romans and our own President used it in 1935 and it's simply devaluing the dollar and inflating precious metal prices, then backing the currency with that inflated metal.
Sure it'll stabilize the dollar and make it worth a dollar again, but the ensuing chaos it will create in the short term will devastate many Americans or I should say those that are not prepared for the chaos.
What Do We Do Then?
Many experts in the investment field are telling their clients to prepare NOW for this huge change in our lives. Historically those that have had the following in place before the crisis were able to come out of it on the top of the pile, so to speak. And if you do the research I have you'll find that all the richest people in the world, Bill Gates, Warren Buffet and folks of that standing are ticking off items on this list.
- Farm land and property - Those that have historically owned farm land and property in general have always come out of these situations ahead of everyone. The world will always need food and those that control enough land to produce food will come away from the chaos with a commodity they can sell, barter or otherwise use for wealth creation.
- Gold and Silver - When any currency collapses, those that have tangible precious metals can continue to acquire the necessities need for their families to survive. I advocate for Silver as it's value is closely related to real items and can easily be used as a currency. Gold, while more valuable, is hard to use in the marketplace, because it is so valuable. The most important thing to remember is that it's NOT the value of the silver, but how many ounces you own. Right now almost anyone can begin to own silver. At this writing silver was selling for about $33.00 an ounce and anyone can afford to begin to own some tangible silver.
- Food - When this crisis hits,
the store shelves will quickly become bare and most disaster experts say
that we need to have at least 6 months of food to hold us until things stabilize.
This is an easy one to prepare for as there are many places on the Internet
where one can buy freeze dried meals that have a shelf live of 25 to 30
years. For less then $1,000.00 I have acquired enough food to sustain my
family for more then a year.
- Guns- It's inevitable that those that have not prepared will want to take what you have. You need to be prepared to protect what you own and be able to save your family in the event that someone tries to take what you have. And yes, that includes the Government.
They took many things at gunpoint during the depression of the 30's, but you hear little about it. A farmer and grandfather of a friend of mine had the Army come to his farm and take more then half of his cattle, at gun point.
- Fuel - When the gas stations run out it will be some time before they are re-supplied. One needs to store a sufficient quantity of fuel and fuel stabilizer to ensure that emergency trips can be taken without the fear of the car's tank running dry.
Will you be ready when the time comes? Let me just say that I am not alone in my thoughts about this. Many leading investment folks have the exact same or similar scenarios in mind and have been advising their clients for several months now about this. We can't just keep spending and printing money it now it's past the point of no return.
Cross posted at The Silver Advisor