(1) When local events become national events, SHTF has arrived!
(2) In order of probability (depending on your location), these events might include:
STAGE 2 (national)
2A – National natural disasters.
2B – National man made disasters (including government / terrorism).
2C – National economic disasters.
2D – National crime / civil unrest between residents.
2E – National crime / civil war between residents.
2F – National crime / war between residents and a corrupt government.
(3) National events often expand into in regional or global events.
STAGE 3 (regional / global)
3A – Regional / global war between nations.
3B – Regional / global man made disasters.
3C – Regional / global natural disasters.
(4) Using Planning 201, you should have completed reasonable preparations for the most probable natural and man made disasters in your own local area. Depending on the extent of any national disaster, many goods and services could be limited. Additional preparations may be needed in the following categories:
Business / Employment – Expand your Off Grid / Survival business.
Clothing – Work clothing including boots and gloves.
Farming / Gardening – Your Food Storage could be seized, used up, or needed for Barter.
First Aid – To prepare for war.
Fishing / Hunting / Livestock – Your Food Storage could be seized, used up, or needed for Barter.
Health / Nutrition – To prepare for healthcare shortages.
Off Grid / Hygiene / Sanitation – Maintain sanitation and health. Secure extra supplies for Barter.
Security – To prepare for war.
Transportation – Purchase a hybrid SUV if possible. Prepare all your vehicles for an EMP.
(5) Infrastructure in the USA is not being maintained. All levels of government are only spending half of what is needed. With or without any disaster or war, repeated failures should be expected. These failures could last for days, weeks, months, or an indefinite period. Make additional preparations to get off the grid.
Click here for the American Society of Civil Engineers (ASCE) 2013 Report Card for America’s Infrastructure.
Click here for 15 Questions To Ask Before The Power Goes Out.
The US electrical grid is based on 1880’s technology and could fail at any moment. In 2011, there were 3,071 blackouts.
(6) National natural or man made disasters usually have a negative effect on a national economy. Problems include:
Loss of jobs.
Loss of income (entitlement, job, pension).
Loss of purchasing power.
Loss of wealth.
(7) Using Planning 101, you should have completed some preparations for a loss of job or income.
(8) To preserve your purchasing power and wealth, you need to understand the difference between Inflation and Deflation.
Inflation happens when there’s too much money chasing scarce goods. This particularly occurs when productivity is very low, like in the 1970s. H Dent
Inflation will rule the day because the only way to treat the gaping fiscal wound we’re trying to treat is to repay our debts with cheaper dollars. And that means inflation—sudden and debilitating and coming much sooner than you think. R Young
An inflationary crisis merely prolongs the agony, destroys the middle class, polarizes society, and leads to far greater political upheavals. And unfortunately, right now, that’s the path our government is on. The best place to find protection is in gold, silver, the world’s strongest economies and short-term Treasuries for cash. M Weiss
Deflation happens when there’s too little money chasing increasingly abundant goods after a very high productivity period, like the 1930s. There’s less money flowing because credit tightens up, causing money to become scarce. And because demographic trends turn down and people have less money to spend, demand for goods and services go down. And when demand goes down, so do prices. H Dent
With deflation, Washington would have to pay off all its debts with more expensive dollars in the future. That could double or triple our interest payments, explode the annual deficit past $2 trillion a year, and bring the entire global financial system to its knees. R Young
A deflationary crisis can lead to a fundamental resolution down the road, especially if the sacrifices are shared by the rich and powerful. In this scenario, the best place for investors to find protection is in long-term Treasury bonds. M Weiss
(11) Place your bets:
The USA needs a period of Deflation to correct all bubbles and excesses.
H Dent is betting that demographics (an aging population) will cause Deflation.
M Weiss is betting that US politicians / The FED will maintain Inflation as long as possible but not forever.
R Young is betting that Inflation is the only option for the US government.
The US government is betting on an economic collapse (Deflation) and has expanded Homeland Security and FEMA Camps to manage this.
Click here to see why US Politicians / The FED are maintaining Inflation.
Click here to see why the US government is betting on an economic collapse (Deflation).
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Click here to see why the US government debt expansion is causing an economic collapse (Deflation).
Inflation will probably continue until proven otherwise by Deflation evidence or the above economic collapse (Deflation).
An economic collapse (Deflation) could take place after a period of Hyper-Inflation. If your investment timing is wrong, you could be destroyed by both Inflation and Deflation.
(13) Some of the most useful financial tools are Bonds, Currency, Hard Assets, Options, and Short Selling.
(14) Bonds (government)
Bond prices and bond yields (interest rates) move in opposite directions.
Ask your broker for additional information.
Currency is traded in pairs.
If the US Dollar is falling in price then some other currency is rising in price.
Exchange your US Dollars for the currency that is rising in price.
If US Dollars can’t be exchanged for another currency, then purchase Gold or Silver.
Some currency brokers such as OANDA will let you exchange any currency for Gold or Silver.
For Currency trading, open an account here: https://fxtrade.oanda.com/your_account/fxtrade/register/gate
Over 50 percent of international commerce is financed with US Dollars. When the US Dollar is no longer the world’s Reserve Currency, the standard of living in the USA is expected to fall by over 25 percent.
Click here for an additional review of Petrodollars.
(16) Hard Assets
The most popular Hard Assets are Gold, Silver, and Real Estate.
The best Real Estate would be farm land with water.
All Real Estate would be high risk (lack of buyers) if the US population was reduced in size.
Buy bullion and coins here: http://www.apmex.com/
Options are contracts to buy or sell something with a fixed price and expiration date.
Options can generate income or be used as an insurance policy.
Ask your broker for additional information.
(18) Short Selling
Borrow a financial instrument (exa. stock) and sell.
Wait for the financial instrument (exa. stock) to fall in price.
Buy the same financial instrument (exa. stock) and return it to the lender.
Your profit is the difference between the sell price and buy price (less expenses).
Buying and holding an Inverse ETF (Exchange Traded Fund) is another way to Sell Short.
Assets that rise in price during Inflation usually fall in price during Deflation.
Gold usually rises in price during Inflation. Gold could also rise in price during Deflation if there is a loss of confidence in Fiat Money.
(19) For Bond, ETF, Option, and Stock trading, open an account here: https://www.fidelity.com/open-account/overview
(20) National economic disasters usually have a negative effect on crime and civil unrest. Review security needs in your own local area:
(21) National economic disasters often result in war between nations:
Corrupt or mismanaged governments need someone to blame problems on.
Corrupt or mismanaged governments need a way to reduce their own population (get rid of useless eaters).
Economists working for the Defense Industry promote the idea that “wars are good for the economy”.
Wars are very profitable for the Defense Industry and Central Banks.
Click here for a review of Economics and War.
(23) After the above review, update all Planning Worksheets that require change.