This week we’re going to touch on the potential for economic collapse in the US and what you can do about it TODAY, new
protocols that are replacing 72-hour kits, collapsible airsoft targets, & Bug-Out-Bags.
It seems like I hear reports that either the economy is turning around or the housing market is turning around at least a couple
of times a week. While I agree that it’s great to be optimistic…and I understand that consumer confidence can and will help bring the country out of a recession, the thought that things are turning around anytime soon is simply delusional and unhealthy for you to buy
into. That doesn’t mean you need to be bummed about it…it just means that it would be intelligent to be aware of what’s going on
and take appropriate action.
Here is just a sampling of some of the many artificial props in the economy right now that are keeping prices low and giving us
an “economic honeymoon”…
- Excess inventory due to businesses going out of business. (electronics, furniture, etc.)
- Excess inventory due to individuals selling off all they can in yard sales and on ebay.
- Artificial liquidity due to the Japanses post office buying US Treasuries, even though they’re bankrupt (I think they are actually worse off than we are!)
- Artificial liquidity in the dollar due to citizens in Greece, Ireland, and the EU in general moving their money from Euros to dollars.
- Artificially high real estate prices due to interest being rates so low that the risk premium has been removed.
- Artificially high real estate prices due to excessive tax credits and other government interventions.
- Artificially high real estate prices due to banks keeping bad debt on the book so as to not tank their entire portfolios.
- Artificially high real estate prices due to investors and families making incredible (unsustainable) sacrifices to pay the mortgages on their 2nd homes and investment properties that they can’t sell because they owe more than the homes are worth.
- Artificially high commercial real estate prices due to banks not foreclosing so as to not tank their entire portfolios.
- Artificially high stock prices due to Harry S. Dent’s “great boom” retiring…which will affect prices when retirees begin moving retirement funds out of stocks and into more conservative investments.
- Artificially high financial stock prices due to credit default swaps not showing up as the liability that they truly are.
- Artificially high bond rates b/c of buying our own debt in exchange for short-sighted deals with China.
-AND, of course…printing lots of US dollars in the face of a dropping GDP. (I could go on)
Someday soon, some or all of these “props” are going to go away. It could happen gradually, they could fall quickly in succession,
like dominoes, or several could happen all at once after a natural disaster or major terrorist incident on US soil. Regardless, all of these problems HAVE to get worked out of the market. Will you be ready?
More importantly, will you have your head screwed on so that you can keep a positive, realistic attitude, regardless of the circumstances.
Sometimes, I’m accused of being all “doom and gloom” because I am aware of the threats we face. Actually, the opposite is true.
While I have my eyes wide open and am very aware of hundreds of economic, manmade, and natural threats, I’m quite happy.
Here’s part of my secret…I choose to take immediate decisive action on the few things in my life that I have control over and
decide are most important. What do I do with the rest? I turn the rest over to God and/or simply refuse to let it suck my time/energy…but whatever I do, I don’t WORRY about things I can’t control and I definitely don’t let those things consume my
thoughts and take time away from productive thinking and living. Worrying and fretting about things that you can’t control acts
like battery acid in your brain…ruining your mood, relationships, and even your ability to think clearly. This can manifest itself in the form of depression, lowered immunity, and many believe cancer.
Going back to the possibility of a coming economic collapse, what CAN you do? Well, you can’t balance the national budget today,
but you can get politically active…not only by voting and going to rallys, but by contacting representatives and offering to help
do research for them.
If you don’t have a fully stocked rural retreat already set up with neighbors who know and trust you, it’s unlikely that you will be able to put that in place between now and when something major happens. Even if you get moved to a rural location, it could take a decade or even a generation for your neighbors to stop seeing you as “the new guy” or “an outsider.”
So keep working towards that goal…but accept the fact that things may not happen on your schedule. In the meantime, you CAN
keep buying food/medical supplies for your current home, learning survival skills, simplifying your life, and getting to know your
neighbors and finding out who’s switched on.
As you’re making your preparations for natural/manmade/economic disasters, keep asking yourself the following question, “Will
what I’m doing/planning/buying be worthwhile regardless of whether or not a disaster ever happens during my lifetime?” If
you can answer yes, then you’ll probably be much happier 1, 5, and 20 years down the road.
5 day kit replaces 72 hour kit? 700 small earthquakes hit Utah every year and smart residents are continually preparing for “the big one.” With major earthquakes hitting Haiti, Chili, Baja, and Indonesia in the last couple of months, earthquake experts in Utah have changed their recommendation from 72 hour kits to 5 day kits. Why? They’re being realistic about both local and national relief agencies not being able to respond quickly due to ever tightening budgets.
This doesn’t just apply to Utah. Budgets for first responders are shrinking around the country and if you don’t already have a few
basic 72 hour kits cached in various locations (each floor of your house, each car, office, etc.) now would be a good time to do so…and beef them up with a few thousand extra calories, more meds, and more water and/or purification tools.