Archive for August 9th, 2012
Today at a campaign stop in Pueblo, Colorado, Barack Obama was touting the success of the government bailouts. He is just so enamored with them, that he said:
“Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.
Oh really, is that so, Mr. Obama? I think what you really mean to say is that you’d like to take more money from one group of people and give it to another you deem ‘special’. Let me enlighten people about the truth of what it is you have done and what you are suggesting. First of all, your auto bailouts destroyed as many people and jobs as they ‘saved.‘ By no means can this be described as a ‘success’. At best it was picking and choosing who got to live another day and who didn’t; at worst it was complete and utter lawlessness. And the jury is still out on those that were ‘saved’ since contrary to popular belief and advertising, GM has NOT paid back the taxpayers, and indeed, since it went public again, it has lost its investors (suckers) yet more money. The IPO price of GM shares was $33.00. Today, GM sits languishing at $20.65. You tell me.
In empathy to GM at this point, I’ll add that I find it highly unlikely that they’ll ever again be profitable due to the jackboot of government stomping on their neck forcing them to crank out extremely overpriced Chevy Volts, which use highly inefficient technology. I’d think if anyone wanted to actually buy them, GM wouldn’t be forced to go into our public schools in an attempt to get 3rd graders to market Chevy Volts to their parents. (No, I’m not kidding.) So, you see, while GM was a ‘beneficiary’ of government largesse, it came with a price so high, that they’ve lost all autonomy. To make matters worse, once you’re indebted to the government, you jump on the crony-bandwagon and you do what the government wants you to do to sell cars, even if it means rooting for $6.00 a gallon gasoline or destroying jobs in the United States and moving them to China and *gasp* advocating for Communism. For GM the price of their bailout was no less than their soul.
GM’s bailout is merely a microcosm of what is wrong with our country. Let me explain how all this works:
THE GOVERNMENT HAS NO MONEY OF ITS OWN, IT ALL BELONGS TO PEOPLE WHO WORK AND EARN IT; THE GOVERNMENT CAN ONLY BORROW AGAINST YOUR FUTURE EARNINGS AND TAKE FROM ONE GROUP OF PEOPLE TO GIVE TO ANOTHER! And every time they do this, they make a ‘special class’ of people. Eventually, there is no one left to take from!
And the government NEVER gives on merit. They give in response to crony lobbyists, pet projects, and to get kickbacks to enrich THEMSELVES first, and foremost! The end result is that productive people are robbed in present time AND in the future, while those who have committed massive fraud that needs to be swept under the rug (banks, Wall Street and other industries), those who can pay for access (banks, Wall Street, big pharma, pet industries, unions, minorities, etc.), those who don’t want to work (welfare kings and queens), those who think they’re better than everyone else (elite Wall Street firms, people in positions of power), and those in government get rich(er) or dodge having to work for themselves, on the backs of those who work hard (Joe Working-Stiff, Fred The Small Business Owner). This crony-capitalist system is what is running our country – and unless we find a way to stop it, there is no stopping the collapse that is coming.
This is not a ‘right or left’ ideology. It is a ‘some are more special than others‘ ideology. It is cronyism or crony-capitalism, which results in a VERY small, finite group of elite people controlling all the wealth and picking and choosing at THEIR whim who is to be the recipient of their largesse. For those on the left who think this is ‘social justice,’ think again. Just because today you might be in that class of ‘special people,’ doesn’t mean that tomorrow you will STILL be in that class. A government large enough to give you everything that you want, is also powerful enough to take it all away. For those on the right who think we have ‘free market capitalism,’ wake up and smell the coffee; the system you are defending is essentially an oligarchy. The rule of law is gone because there are whole classes of people to which those rules do not apply.
First and foremost, this is a matter of mathematics and finite resources. Eventually you run out of productive people willing to work to support these various classes of ‘special people.’ The very first Americans over 400 years ago learnt this lesson the hard way in Jamestown. We were the country that almost wasn’t. I do believe that the Declaration of Independence said something about ‘all men being created equal’ and it said nothing about certain classes of people being more special than others. The rule of law was intended to be applied to EVERYONE equally!
Think long and hard about it!
The U.S. fiscal gap, calculated (by us) using the Congressional Budget Office’s realistic long-term budget forecast — the Alternative Fiscal Scenario — is now $222 trillion. Last year, it was $211 trillion. The $11 trillion difference — this year’s true federal deficit — is 10 times larger than the official deficit and roughly as large as the entire stock of official debt in public hands.
We of course are not really talking about this. Oh we do talk about the $1 trillion+, more or less, that we add to the “official debt”, but nowhere is mentioned the growth in the actual liabilities — if, that is, you accept that things like Medicare are actual obligations.
Hint: They’re not.
When fully retired, 78 million baby boomers will collect, on average, more than 85 percent of per-capita gross domestic product ($40,000 in today’s dollars) in Social Security, Medicare and Medicaid benefits. Each passing year brings these outlays one year closer, which raises their present value.
No they won’t. Not because they won’t try to, but because the working people of the nation won’t pay it. If pressed that hard they will do what all people do when pressed hard enough — they will revolt, violently if necessary. The reason why is obvious and inescapable; nobody submits to being a slave voluntarily and communism doesn’t work as the quality and quantity of work drops as you try to put your boot on the people’s neck.
Ask young people about this – will you give up everything you earn and have so your Dear Old Dad can live in the way to which he is “entitled”, including all the medical care he wants despite being 300lbs and eating like a pig for the last 30 years?
Compassion? Sure, especially for their own parents. But forcible extraction of literally every bit of value in the labor that working people have so that the “old farts” can sit in their ass and collect that to which they’re “entitled”?
Not a prayer in Hell.
That’s a problem.
The answer for the U.S. isn’t pretty. Closing the gap using taxes requires an immediate and permanent 64 percent increase in all federal taxes. Alternatively, the U.S. needs to cut, immediately and permanently, all federal purchases and transfer payments, including Social Security and Medicare benefits, by 40 percent. Or it can mix these terrible fiscal medicines with honey, namely radical fiscal reforms that make the economy much fairer and far stronger. What the government can’t do is pay its bills by spending more and taxing less. America’s children, whose futures are being rapidly destroyed, are smart enough to tell us this.
Actually, if we don’t cut this crap out they’re going to tell us with guns, pitchforks and torches — or simply by refusing to work at all.
This is the problem with confiscatory tax rates — they drive behavior. People say that “very few” people ever paid the 90% tax rates of years past. That’s true. Nobody made that much, on purpose.
You could set the tax rate over $250,000 at 100% if you wanted to. There are two problems with such a move — first, doing so wouldn’t close the deficit (there aren’t enough people who make over $250,000 and enough income to steal doing this to reach budget balance) but more importantly if you did this the next year nobody would make more than $249,999 since they would get to keep none of it!
What would that do to our economy? Good question; a lot of people would spend a lot of time at the beach instead of innovating and creating, I suspect. And while this might be good for the makers of rum and various other libations, I doubt very much the net economic effect would be positive.
As I noted yesterday (and, I might note, forms one of the key items in Leverage, available to the right) there are interconnected items in our national debate that nobody wants to talk about as interconnected items. Yet we have to, because they form the basis of the fiscal challenges we face.
Policy decisions were intentionally taken that, on any objective basis, amount to massive frauds against the public. A tiny minority of people — banksters — have benefited tremendously from these frauds. The expansion of the credit bubble over the last 30 years has made a tiny percentage of the population fabulously “wealthy” but the wealth they obtained was false prosperity in the first instance. It appeared to be “freely earned and/or given” but it was not; it was stolen as the premise under which it was tendered wasknowingly false and the beneficiaries are the ones who constructed the knowingly-false edifice under which they obtained it.
When you get down to brass tacks it all comes down to the reality of two exponential functions. They always run away from one another. It cannot be otherwise; this is a basic principle of arithmetic, and no amount of arm-waving can or ever will change it.
That’s the bottom line right there. Any two growth functions, where one has a larger growth figure than the other, will run away from one another. Growth in debt, irrespective of the name you give it (e.g. “entitlements”, whatever) may never exceed the growth in the economy.
If it does the above happens. It will not happen some of the time, it will not happen only if you get unlucky, it will not happen only on Tuesdays, it will happen each and every time, without fail, and it will screw you each and every time without fail. It must therefore never be allowed to happen.
This is what all fiscal policy debates are ultimately about. It has never and will never be about anything else. It can’t be about anything else, because this is the reality of that fiscal debate, whether people wish to deal with and admit it or not.
We’re still arguing over stupid things, more than 30 years after the alleged debate began.
Until we address and conform our debate to the above simple mathematical relationship no progress will be made, and the longer we wait to do so the higher the odds that an all-on fiscal and economic collapse becomes inevitable.
Common sense leads us to the “obvious” conclusion that the U.S. stock market is a rigged skimming operation that is essentially a form of legalized, officially sanctioned fraud.
Active traders and professional money managers already know how the U.S. stock market actually works, but Joe and Jane Citizen, whose pensions generally depend on the market in some way, typically do not. This entry is for them. Today’s financial markets are endlessly complex, and this complexity implicitly serves to mask the true nature of market operations.
Most of this complexity can be boiled away with zero loss of understanding. Indeed, manipulating this complexity is what earns the big bucks on Wall Street, while boiling it away earns the big bucks for commentators and analysts. Thus complexity serves the financial industry extremely well.
The first and most important thing to understand about the U.S. stock market is how few humans are actually involved in the decision to buy or sell large blocks of shares. Machines do most of the trading. High-frequency trading (HFT) computers buy and sell millions of shares in milliseconds: Zero Hedge: From Chicago To New York And Back In 8.5 Milliseconds:
The reason why little if anything can and will be done to fix the persistent threat to capital markets that is HFT is two fold: i) none of the current regulators understand anything about modern market topology, and ii) HFT is so embedded in markets that unrooting it would result in a complete reboot of “fair” stock valuation.That said it is always amusing to observe as more and more people get in on the scam that is the “equity market”, now completely dominated by robots which do nothing but accelerate and perpetuate momentum moves – after all it is all they can do in lieu of being able to read financials, or anticipate events. Remember: it is always the market that makes the news, never the other way around.
In essence, HFT is a gigantic skimming operation that exploits tiny differences in the bid/ask prices of stocks to buy and sell millions of shares for slivers of profit that are multiplied by millions of shares traded in seconds. Raging Bulls: How Wall Street Got Addicted to Light-Speed Trading (Wired Magazine, via Zero Hedge).
Other computers are programmed by math-wizard “quants” to trade momentum and technical signals. Since everyone in today’s markets has access to the same technical triggers and data, computers are programmed to respond to these signals.
For example, days with large pre-market buying of S&P 500 (SPX) futures contracts tend to open up, so trading robots will buy at the open and ride the momentum up. If the market rallies by 3 p.m., the odds of it closing higher are very high. This is how keying on momentum yields low-risk profits if the trading involves millions of shares that are held for microseconds, seconds, or minutes.
Here’s another example: if technical analysis (TA) has identified SPX 1,366 as a key level, then once the market surges above 1,366, the trading robots will buy into the move.
The second important thing to know about the stock market is that central banks and governments intervene as buyers to trigger rallies and put floors under declines. As noted above, huge buying of futures triggers opening rallies. It is a poorly kept secret that central banks or officially sanctioned but cloaked “plunge protection teams” are doing the buying.
Once again it is relatively easy to steer the market because humans and computers alike are keyed on certain well-known technical signals. For example, if the 200-day moving average of the SPX is 1,300, and the index dips down to that level, computers are programmed to sell if it breaks below that support level or buy if it spikes above it.
Authorities need only issue massive buy orders at these critical levels to “stick-save” markets from declines.
As regular folks continue to pull their money out of the market, either tiring of losses and volatility or recognizing it is rigged to their disadvantage, trading volumes have declined, making official but “secret” intervention both cheaper and easier.
Just as the U.S. stock market now depends on high-frequency trading, it also depends on official intervention to stop any decline.
How is it legal for HFT computers to skim profits that are unavailable to human traders? Clearly, this is legalized fraud, or if you prefer, embezzlement.
The third thing to know about U.S. stock market is that their operations are opaque, invisible, and hidden from the citizenry and non-Elite human traders.How much of the market volume is computers skimming via HFT can only be estimated. Official buying to spark rallies or stop declines dead in their tracks is also hidden from the citizenry.
Huge volumes of shares are traded off the public exchanges in so-called “dark pools” that are also hidden from the citizenry and non-Elite human traders.
How “fair and open” can an exchange be when its critical operations are hidden from public view? Answer: it cannot be fair and open. It is rigged to favor Elite players, who are allowed to legally skim billions of dollars in profits by means which are unavailable to non-Elites investors.
This vast skimming operation is enabled, enforced and supported by the Central State and the (privately owned and operated) Central Bank of the U.S., the Federal Reserve.
The Pareto distribution can help us understand how the market really works.Though it may well be that a mere 10% of stock market volume is human-traded shares, let’s assume the 80/20 rule applies and 80% of the shares are being traded by 20% of the traders, most of whom are machines.
Taking the distribution one step further, we can estimate that 64% of the volume is executed by a mere 4% of the players.
The fourth and last thing to know about U.S. stock markets is that this skimming and intervention have left the markets extremely vulnerable to collapse. Official but secret intervention is called the “Bernanke put,” meaning that the Fed will intervene to keep the market aloft, regardless of what is happening in the real world of the global economy.
This faith in central-planning manipulation of the market has encouraged an extremely high level of complacency in traders; they confidently trade the market higher, knowing that the Fed will never let it fall.
But this leaves the market exquisitely vulnerable to high-volume selloffs that roll right over the Fed’s rather modest buying power.
Since HFT and quant trading robots are programmed to buy and sell at commonly-known technical signals, if certain levels are broken to the downside, the selling will quickly avalanche as trading machines issue sells.
Leaving 80% of the volume to programmed computers leaves the markets extremely vulnerable to cascading momentum selling. If you live by momentum trading, you also die by momentum trading.
If you wanted to design a system that was eventually guaranteed to crash, then you’d design a system that is dependent on opaque official intervention and HFT/quant computer trading for 80% of its volume. That’s the system the Central State, the Fed and the financial Elites are supporting and enforcing because it’s an enormously profitable skimming operation that is also a supremely useful tool for managing perceptions: if the market trend is always rising, then the economy must be improving.
This is of course a false correlation: the market is hitting highs while the global economy is unraveling.
Beneath the surface stability, the Fed, the State and the financial Elites have constructed a terribly unstable system for skimming unearned wealth and propping up a propaganda facade of economic “improvement.”
If watching a tiny Elite skim billions of dollars from the real economy with the aid of the Fed is your idea of “improvement,” then by all means, buy the rally. Just be ready to sell in 10 milliseconds.
Charles Hugh Smith – Of Two Minds
Type 1 Diabetes is a nasty disease in which the islet cells in the pancreas are destroyed by the body. This renders the sufferer unable to produce insulin, which is necessary to regulate the metabolism of glucose (sugar), the body’s main fuel.
Without insulin you will die. Type 1 diabetics must therefore inject insulin, either through the use of a pump or manually using syringes, literally through the day and manually test and regulate the blood sugar — a process that healthy people’s bodies do automatically.
It has been assumed that this condition, once it developed, was essentially incurable, although there were some people who believed that stem cells might be able to be “turned on” to replace the destroyed islet cells, or that we might some day come up with an artificial pancreas.
What I bet nobody assumed was that a relatively inexpensive, and 90 year old vaccine might actually cause the body to repair itself.
A tuberculosis vaccine that has been in use for 90 years may help reverse Type 1 diabetes and eliminate the life-long need for insulin injections, results from an early study by Harvard University researchers suggest.
“These patients have been told their pancreases were dead,” said Denise Faustman, director of Harvard-affiliated Massachusetts General Hospital’s immunobiology laboratory, who led the study. “We can take those people, give them a very low dose twice and see their pancreases kick in and start to make small amounts of insulin.”
This is the sort of breakthrough — the possibility of an actual cure for a condition that has always been regarded as utterly incurable — that you would think everyone would be jumping all over to test and develop, right?
And why not?
Faustman and her colleagues at Massachusetts General in Boston are working to get the vaccine to market. After their early findings in studies with mice, she said they tried to interest every major drugmaker in developing the vaccine as a possible cure for diabetes. All told her there wasn’t enough money to be made in a cure that used an inexpensive, generically available vaccine, Faustman said.
It’s not about people or health.
It’s about money.
The implication, of course, is that if it’s more profitable to “control” a disease than cure it, the path that will be pursued is “control”, not cure.
Are all these chronic conditions that we suffer from truly incurable?
Or is it simply that nobody looks for actual cures, because it doesn’t make as much money as “therapies” do?
It was a bit different when charities were providing a good part of the care. Then you had people actually interested in cures, because the funds were privately provided and the more people you could cure the more people you could help.
EMTALA and the rest of the mess our government put in place in the health system broke the incentives that would normally be associated with medicine, and we all get screwed as a consequence.
How in the world is someone supposed to actually prepare for an economic collapse? What should you do with your money? How can you make sure that your family is going to be okay? How can you prepare if your resources are extremely limited? These are the kinds of questions people ask me all the time. Once people understand that the economy has been collapsing and will continue to collapse, then the next step for most of them is that they want to get prepared for the storm that is coming. So where should someone get started? Well, the truth is that no two people are facing the exact same set of circumstances, so preparation is going to look different for each individual. But there are certain core principles that we can all benefit from. For example, when a financial storm is coming that is not the time to be blowing thousands of dollars on vacations and new toys. You would be surprised at how many people there are that claim that they have no extra money in their budgets and yet somehow have plenty of money to run down to Wal-Mart and buy a big stack of DVDs. When times are difficult, each hard-earned dollar becomes much more precious, and we all need to start getting into the habit of making the most out of our limited resources. The seemingly endless prosperity that we have all been enjoying for decades is coming to an end, and most of us have absolutely no experience on how to deal with truly hard times. If you are under the age of 60, it might be a really good idea to read a book or two on what conditions were like during the Great Depression of the 1930s. There is a lot that we can learn from our own history.
Another key characteristic that we will all need in the years ahead is flexibility. Anyone that has spent any time in the military knows that very few plans ever work out perfectly. As the global economy breaks down and the world becomes increasingly unstable, conditions are going to change rapidly. What might work really well in one situation might be the exact wrong thing to do 6 months later. If you are not willing or able to adapt to dramatic change then you are going to have a lot of difficulty in the years ahead.
Many people refer to me as a “doom and gloomer” because I run a website called “The Economic Collapse” and I am constantly pointing out that the entire world is heading for a complete and total financial nightmare.
But I don’t think that it does any good to stick your head in the sand. I believe that there is hope in understanding what is happening and I believe that there is hope in getting prepared.
It is those that are completely oblivious to what is really going on that will be totally blindsided by the coming crisis. When they finally realize what has come upon them many of them will totally lose it.
From my little spot on the wall I am trying my best to warn people so that they can have a chance to be prepared for what is coming.
I am not spreading doom and gloom.
I am spreading hope.
And I want to make another point. Generally, things are going to be getting progressively worse as the years roll along. As I have written about before, I believe that the economic collapse is not a single event. Rather, I see it as a series of waves that will be punctuated by moments of great crisis.
So advice about preparation is going to be different depending on whether you are talking about the short-term or the mid-term or the long-term. Hopefully you will keep that in mind as you read my answers to the questions below.
The following are common questions that people ask about how to prepare for the collapse of the economy….
#1 How Do I Get Started?
When the financial crisis of 2008 hit, what was the biggest danger for most Americans?
The biggest danger was that they would lose their jobs and not be able to pay their bills.
During the last recession, millions and millions of Americans did end up losing their jobs.
And because many of them were living paycheck to paycheck many of them also ended up losing their homes.
You do not want that to happen to you.
So what I am about to say next is not considered to be very “sexy” in prepper circles, but it is absolutely crucial advice.
You need to have an emergency fund saved up that can cover your expenses for at least six months.
That way if you lose your job or your business goes under you will be able to keep going for a while as you figure out what your next move will be.
These days it takes the average unemployed American nearly 40 weeks to find a new job, and it will likely be even worse in the next major economic downturn.
So make sure that you have plenty of cash saved up just in case. If you are currently living paycheck to paycheck you are extremely vulnerable.
#2 What Should I Do With My Money?
I get this question a lot.
People always want to know where they should put their money.
Well, my first piece of advice is always to build an emergency fund. See #1 above. Most people do not have one.
After that is done, I am a big believer in not putting all of my eggs into one basket.
Sometimes people will tell me that they are going to take all of their money out of the banks because they don’t feel safe having their money in them.
Well, if you stick all of your money in your mattress, what happens if there is a fire or what happens if someone robs you?
That is why I believe in spreading your risk around. Having money a bunch of different places is a good thing.
But one place I would not put it is in the stock market. If you were fortunate enough to catch the recent rally you should get out while the getting is good.
If you have blind faith in the stock market you are going to be deeply disappointed eventually. I do not have a single penny in the stock market, and a couple of years from now that is going to look like a very wise move.
#3 Should I Invest In Precious Metals?
A lot of people that write about the economic crisis in this country really advocate investing in precious metals because they tend to hold value over time (unlike fiat currencies).
I like precious metals myself, but if you are going to invest you need to get educated so that you know what you are doing. If you go in blindly you are likely to get burned at some point.
In addition, you need to be prepared for wild fluctuations in price over the coming years. There will be times when gold and silver absolutely soar and there will be times when they drop like a rock.
So if you are going to play the game you need to be able to handle the ride.
#4 Should I Get Out Of Debt?
Many that write about the coming economic collapse say that you shouldn’t even bother to pay off your debts because the financial system is going to collapse anyway.
I don’t see it that way.
I don’t believe that our banks are going to totally collapse and suddenly go out of existence.
Not in the short-term anyway.
So I believe that it is actually a good idea to get out of debt. When financial troubles hit you don’t want a horde of bill collectors coming after you.
There is a lot of freedom that comes with getting out of debt, and in this environment it is wise to become as independent of the system as possible.
#5 What If I Don’t Have Any Money To Prepare?
In this kind of economic environment it is no surprise that I get this question a lot.
Many families are just barely scraping by each month and they do not have much money to put into anything.
And I can definitely sympathize with that.
However, I would say that there are very, very few families out there that do not have anything that can be cut out of the budget.
The truth is that American families are experts at blowing money on really stupid stuff.
In general, I recommend that all families do what they can to reduce their expenses.
The smaller of a financial footprint you have, the better off you will be and the more resources you will have to help you get prepared.
Also, now is the time to be looking for ways that you can increase your income.
For many Americans, starting a side business is a way to bring in some extra cash. Yes, this will cut into your television watching time, but now is not the time to be lazy.
The time you spend working hard now while the sun is still shining will pay off later.
Don’t be afraid to work harder than you ever have before.
#6 Should I Rent Or Buy?
This is a question that I also get a lot, and it really depends on your situation.
If you rent, that gives you a lot more flexibility. You can move for a new job or a new opportunity without having to sell a house. And you get to avoid a lot of the expenses and hassles that come with being a homeowner.
If you buy, you get to “lock in” your housing expenses for many years. In a highly inflationary environment this would potentially be very beneficial. And interest rates are very low right now.
In addition, it is going to be really hard to rent a really good “prepper” property. If you are looking for a property that is away from the big cities where you can grow your own food and become more independent of the system, then in most cases you are going to have to buy such a property.
But if you do buy, it is going to be much harder to move if something does happen and you need to go somewhere else.
#7 What About My Health Condition?
Over the next few years, our health care system should continue operating at least somewhat normally. But the truth is that our health care system is in horrible shape and it is not a good thing to be totally dependent on pills and doctors.
Even if economic conditions were perfect it would be a good idea to learn what you can do on your own to improve your health. But this is especially true as we move into a time of great economic instability.
#8 Should I Be Storing Food?
However, even though the United States is experiencing a historic drought right now, I do not believe that there will be major food shortages in America this year or next year.
Down the road, however, is a different story.
And your food dollars are never going to go farther than they do right now. As I wrote about the other day, this drought is likely to cause food prices to go up substantially, and so the food you store now might end up being twice as valuable a few years from now.
In addition, you never know when a major disaster or emergency is going to strike so it is always good to become more independent of the system.
I encourage everyone to learn how to grow a garden. Yes, your space may be limited, but there is actually one family that produces 6000 pounds of produce every year on just 1/10th of an acre right in the middle of Pasadena, California.
If they can do such extraordinary things with their little plot of land, why can’t you try to do what you can with what you have?
#9 Should I Be Storing Water?
It is always good to have some water on hand in case disaster or emergency strikes.
And you should be rotating whatever water you currently have on hand because you don’t want water sitting around indefinitely.
But what is much more important is to make sure that you and your family have access to a source of water that you can depend on if disaster strikes and the grid goes down.
In a previous article I discussed a report put out by the American Trucker Associations entitled “When Trucks Stop, America Stops” that detailed just how incredibly vulnerable our water supply really is….
According to the American Water Works Association, Americans drink more than one billion glasses of tap water per day. For safety and security reasons, most water supply plants maintain a larger inventory of supplies than the typical business. However, the amount of chemical storage varies significantly and is site specific. According to the Chlorine Institute, most water treatment facilities receive chlorine in cylinders (150 pounds and one ton cylinders) that are delivered by motor carriers. On average, trucks deliver purification chemicals to water supply plants every seven to 14 days. Without these chemicals, water cannot be purified and made safe for drinking. Without truck deliveries of purification chemicals, water supply plants will run out of drinkable water in 14 to 28 days. Once the water supply is drained, water will be deemed safe for drinking only when boiled. Lack of clean drinking water will lead to increased gastrointestinal and other illnesses, further taxing an already weakened healthcare system.
So yes, water is definitely something you should be accounting for in your preparations.
#10 Other Than Food And Water What Other Supplies Will I Need?
Anything that you use on a regular basis or that you would use in an emergency situation is something that you should consider storing up.
For example, if you could not buy any more toilet paper from the stores, what would you do?
Basic things like that are often overlooked by many preppers.
In a previous article, I listed dozens of things you may want to consider storing. Preparation is going to look different for every family, but hopefully that list will give you some ideas.
#11 What Happens If The Power Grid Goes Down?
This is a very important consideration – especially if you live in a colder climate.
Some people have a backup generator for such circumstances.
Others have set up wind and/or solar systems for their homes.
Alternative energy solutions are great if you can afford them, and they will enable you to become much more independent of the system.
But not everyone can afford to put in solar panels or a big wind turbine.
So do what you can with what you have.
#12 Should I Leave The Big Cities?
A lot of people ask me this, but there is no easy answer.
In this day and age, a good job is like gold. It can be really, really tough to give up a good job and move to the middle of nowhere.
But without a doubt, society is starting to come apart at the seams and I do expect rioting and major civil unrest in our major cities at some point in the future.
In the end, you need to do what is right for you and your own family. Nobody else can make this decision for you.
#13 Should I Get Some Self-Defense Training?
America seems to be overrun by psychopaths and sociopaths these days, and in such an environment being able to defend yourself becomes more important.
When criminals come to your home, they are not going to sit down and have a debate with you. They are not going to care what your political outlook is or if you sympathize with their plight.
The criminals are simply going to do what they came there to do unless someone stops them.
So yes, some self-defense training may come in very handy in the years ahead.
#14 What Should I Do If My Family And Friends Won’t Listen To Me?
This is another very common question that I get.
What should people do if nobody will listen to them?
Well, you just have to do the best that you can. If they won’t listen now, just keep planting seeds. Keep sending them articles that are packed with statistics and information that show why an economic collapse is going to happen.
In the years ahead we are all going to need our families and our friends because communities will endure what is coming much better than “lone wolf” individuals will be able to.
No matter how hard you prepare, at some point you are going to need the help of someone else.
So don’t be afraid to reach out to others.
If nobody among your family or friends will listen to you at the moment, you may have to prepare on your own right now.
In fact, you may have to do extra preparation because at some point it is probably inevitable that your family and friends will come to you for help.
That is the perspective that my wife and I take. We are not only preparing for ourselves. We are also preparing for the family members that may have to depend on us someday.
Nobody said that preparing was going to be easy.
But beyond any physical preparations, I also believe that it is absolutely crucial to prepare mentally and spiritually.
The times that are coming are going to be incredibly challenging. They are going to require a great deal of physical, mental, emotional and spiritual strength.
If you are a “lone wolf” that believes that you don’t need anyone or anything, then I feel sorry for you and I honestly don’t know how you are going to make it.
None of us have all the answers.
I know that I certainly do not.
I have just written nearly 3000 words, but after I post this article I know that some of the great visitors to my site will post ideas that I never even considered for this article.
We can all learn from each other. Most of the people that I have met that think “they know it all” are some of the most clueless people that I have ever come across.
I never want to stop learning, and hopefully that is the case for you as well.
If we work together, perhaps we can all make it through the horrible, horrible times that are coming.