Iceland’s Katla volcano showing signs of possible eruption

30 August 2016: If Iceland’s mighty Katla volcano soon erupts, as seismic activity indicates it may, how sharp an effect could it have on global temperatures, food production and ultimately on peace in these already unstable economic and political times?

Quake-hit Iceland volcano Katla shows strengthening signs of eruption
Fri., 02 Sep. 2011,  by ClickGreen staff.
Source: http://www.clickgreen.org.uk/news/international-news/122493-quake-hit-iceland-volcano-katla-shows-strengthening-signs-of-eruption.html

Iceland’s massive Katla volcano is showing increasing signs of a possible eruption following an intense week of earthquakes and tremors.
The feared volcano was struck by a magnitude 3.2 earthquake last night as experts believe magma is slowly filling inside the mountain, giving rise to fears the volcano could soon erupt. The latest quake follows a week of increasing activity with official reports of harmonic tremors and earthquake swarms.
Observers have been closely watching Katla since July when the volcano showed the first signs of increased activity.

Last weekend, the Icelandic Met Office confirmed two swarms of earthquakes in Katla and on Wednesday night, a harmonic tremor – a potential indicator to an eruption – was detected. Last night’s stronger earthquake was picked up in the volcano’s caldera – its magma chamber. Katla, which has not experienced a significant eruption for 93 years, is the second largest volcano on Iceland and its eruption will be felt across Europe.

Last year, the country’s president Ólafur Grímsson warned “the time for Katla to erupt is coming close, Iceland has prepared and it is high time for European governments and airline authorities all over Europe and the world to start planning for the eventual Katla eruption”.
It is believed Katla, named after a vindictive troll of Viking folklore, has the potential to be much stronger and disruptive than the last two Icelandic volcanic eruptions that caused chaos across Europe’s air space, grounding flights and closing airports.

Katla is much larger than its neighbouring Eyjafjallajokull – which erupted last year – with a magma chamber about 10 times the size. Volcanologists warn that if Katla does erupt, the combination of the magma and the large ice sheet covering the volcano could lead to explosive activity and an ash plume for weeks, if not months.
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Will Iceland’s Katla Volcano Blow Next?
May 8, 2010, modernsurvivalblog.com
http://modernsurvivalblog.com/volcano/will-katla-volcano-blow-next/

Each time following an eruption of Iceland’s Eyjafjallajokull volcano, it’s mighty neighbor, Katla, has erupted shortly afterward. Eyjafjallajokull and Katla are separated by 27 km (17 mi) and are thought to have interconnecting magma channels. Eyjafjallajokull erupted on April 14, 2010.

Katla (named after an Icelandic witch) is known to have erupted 16 times since 930, the last time during 1918. Since then, Katla has been quiet for the longest duration on record. It is overdue, and now that it’s little sister Eyjafjallajokull has erupted, it’s just a matter of time.

Katla itself is 30 km (19 mi) in diameter reaching a height of 1,500 meters (4,900 feet), while the 10 km (6 mi) crater of the volcano lies up to 500 meters (1,600 feet) beneath the Myrdalsjokull glacier on the southern edge of Iceland. Iceland sits directly on top of a split in the earth’s crust of two tectonic plates on the Mid-Atlantic ridge and is a hot spot for volcanic activity with 35 volcanoes around the island.

An eruption of Katla would likely be 10 times stronger than the recent eruption of Eyjafjallajokull and could be disastrous to Iceland with raging floods from the melting Myrdalsjokull glacier, immense depths of volcanic ash, and climate change to regions of the world.

If the eruption is long enough and high enough, ash could be blasted 20 km (12 mi) into the stratosphere and circle the globe blotting out part of the sun from penetrating to earth, and reduce temperatures worldwide. The big question of course is how big would the eruption be and to what extent the global climate change.

We know that when Katla erupted in 1700, the Mississippi River froze just north of New Orleans for example. When Mount Pinatubo erupted in 1991 for 2 days, it dropped temperatures 4 degrees worldwide for a year. Katla on average erupts for 50 days, although the cumulative severity over that time period depends on the force of the eruptions lifting ash high into the atmosphere. We won’t know until it happens.
Although the magnitude of disaster would not be that of a super volcano such as Wyoming’s Yellowstone, the potential is there for a global catastrophe from a worldwide extended deep freeze. Huge crop failures would translate to starvation for some and very high food prices for others. A ripple effect would occur through the already teetering economies of the world.

Since the potential exists for a major Katla eruption, we should prepare ourselves as best we can, knowing that modern society would be disrupted from a disaster of this magnitude (just look at what happened to worldwide air travel and the economic impact from the small eruption of Eyjafjallajokull).

Other observations regarding Icelandic volcanic eruptions:
A.  http://www.msnbc.msn.com/id/35988484/ns/technology_and_science-science/t/iceland-volcano-could-have-world-consequences/
Past Katla eruptions have caused floods the size of the Amazon and sent boulders as big as houses tumbling down valleys and roads. The last major eruption took place in 1918. Floods followed in as little as an hour.
Iceland’s Laki volcano erupted in 1783, freeing gases that turned into smog. The smog floated across the Jet Stream, changing weather patterns. Many died from gas poisoning in the British Isles. Crop production fell in western Europe. Famine spread. Some even linked the eruption, which helped fuel famine, to the French Revolution. Painters in the 18th century illustrated fiery sunsets in their works.
The winter of 1784 was also one of the longest and coldest on record in North America. New England reported a record stretch of below-zero temperatures and New Jersey reported record snow accumulation. The Mississippi River also reportedly froze in New Orleans.

B.  http://blogs.discovermagazine.com/80beats/2010/04/16/icelandic-volcanoes-disrupting-weather-history-since-1783/
The Laki volcanic fissure erupted over a eight month period between June 1783 and February 1784. Within Iceland, the lava and poisonous clouds of gas ushered in a time known as the “Mist Hardships”: farmland was ruined, livestock died in vast numbers, and the resultant famine killed almost a quarter of the population.
The eruption’s impact wasn’t confined to Iceland alone. Dust and sulfur particles thrown up by the explosion were carried as a haze across Northern Europe, clouding the skies in Norway, the Netherlands, the British Isles, France, Germany, Italy, and Spain. In conjunction with another volcanic eruption and an unusually strong El Nino weather pattern, the Laki eruption is thought to have contributed to extreme weather across Europe for the next several years.

Describing the summer of 1783 in his classic Natural History of Selborne, British naturalist Gilbert White wrote it was “an amazing and portentous one … the peculiar haze, or smokey fog, that prevailed for many weeks in this island, and in every part of Europe, and even beyond its limits, was a most extraordinary appearance, unlike anything known within the memory of man” [The Guardian]. Gilbert wrote that the haze blanked out the sun at midday, that it was “particularly lurid and blood-colored at rising and setting,” and that the heat was so intense that “butcher’s meat could hardly be eaten on the same day after it was killed.” This bizarre summer was followed by an usually harsh winter, historians say. Environmental historians have also pointed to the disruption caused to the economies of northern Europe, where food poverty was a major factor in the build-up to the French revolution of 1789 [The Guardian].

C.  http://www.guardian.co.uk/world/2010/apr/15/iceland-volcano-weather-french-revolution
The Laki volcanic fissure in southern Iceland erupted over an eight-month period from 8 June 1783 to February 1784, spewing lava and poisonous gases that devastated the island’s agriculture, killing much of the livestock. It is estimated that perhapsa quarter of Iceland’s population died through the ensuing famine.

Then, as now, there were more wide-ranging impacts. In Norway, the Netherlands, the British Isles, France, Germany, Italy, Spain, in North America and even Egypt, the Laki eruption had its consequences, as the haze of dust and sulphur particles thrown up by the volcano was carried over much of the northern hemisphere.

Ships moored up in many ports, effectively fogbound. Crops were affected as the fall-out from the continuing eruption coincided with an abnormally hot summer. A clergyman, the Rev Sir John Cullum, wrote to the Royal Society that barley crops “became brown and withered … as did the leaves of the oats; the rye had the appearance of being mildewed”.

The British naturalist Gilbert White described that summer in his classic Natural History of Selborne as “an amazing and portentous one … the peculiar haze, or smokey fog, that prevailed for many weeks in this island, and in every part of Europe, and even beyond its limits, was a most extraordinary appearance, unlike anything known within the memory of man.

“The sun, at noon, looked as blank as a clouded moon, and shed a rust-coloured ferruginous light on the ground, and floors of rooms; but was particularly lurid and blood-coloured at rising and setting. At the same time the heat was so intense that butchers’ meat could hardly be eaten on the day after it was killed; and the flies swarmed so in the lanes and hedges that they rendered the horses half frantic … the country people began to look with a superstitious awe, at the red, louring aspect of the sun.”

Across the Atlantic, Benjamin Franklin wrote of “a constant fog over all Europe, and a great part of North America”.

The disruption to weather patterns meant the ensuing winter was unusually harsh, with consequent spring flooding claiming more lives. In America the Mississippi reportedly froze at New Orleans.

The eruption is now thought to have disrupted the Asian monsoon cycle, prompting famine in Egypt. Environmental historians have also pointed to the disruption caused to the economies of northern Europe, where food poverty was a major factor in the build-up to the French revolution of 1789.

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The amount of gold or silver savings you should have

(Survival Manual/7. Warehouse / The amount of gold or silver savings you should have)

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What to Do When – Not If – Inflation Gets Out of Hand.
4 Sept 2012, Financial Sense.com, by Jeff Clark
Pasted from <http://www.financialsense.com/contributors/jeff-clark/what-do-when-not-if-inflation-gets-out-hand&gt;

“The cheek of it! They raised the price of my favorite ice cream.

Actually, they didn’t increase the price; they reduced the container size.

I can now only get three servings for the same amount of money that used to give me four, so I’m buying ice cream more often.

Raising prices is one thing. I understand raw-ingredient price rises will be passed on.

But underhandedly reducing the amount they give you… that’s another thing entirely. It just doesn’t feel… honest.

You’ve noticed, I’m sure, how much gasoline is going up.

Food costs too are edging up.

My kids’ college expenses, up.

Car prices, insurance premiums, household items – a list of necessities I can’t go without. Regardless of one’s income level or how tough life might get at times, one has to keep spending money on the basics. (This includes ice cream for only some people.)

According to the government, we’re supposedly in a low-inflation environment. What happens if price inflation really takes off, reaching high levels – or worse, spirals out of control?

That’s not a rhetorical question. Have you considered how you’ll deal with rising costs? Are you sure your future income will even keep up with rising inflation?

Be honest: will you have enough savings to rely on? What’s your plan?
If price inflation someday takes off – an outcome we honestly see no way around – nobody’s current standard of living can be maintained without an extremely effective plan for keeping up with inflation.

It’s not that people won’t get raises or cost of living adjustments at work, nor that they will all neglect to accumulate savings.
It’s that the value of the dollars those things are in will be losing purchasing power at increasingly rapid rates. It will take more and more currency units to buy the same amount of gas and groceries and tuition. And ice cream.
I’m not talking science fiction here.
When the consequences of runaway debt, out-of-control deficit spending, and money-printing schemes come home to roost, it’s not exactly a stretch to believe that high inflation will result.

We need a way to diffuse the impact this will have on our purchasing power. We need a strategy to protect our standard of living.
How will we accomplish this?
I suspect you know my answer, but here’s a good example. You’ve undoubtedly heard about the drought in the Midwest and how it’s impacted the corn crop. The price of corn has surged 50% in the past two months alone.
Commodity analysts say the price could rise another 20% or more as the drought continues.

While the price of gold constantly fluctuates, you would have experienced, on average, no inflation over the last 30 years if you’d used gold to purchase corn. Actually, right now, it’d be on the cheap side.
When you extrapolate this to other food items – and virtually everything else you buy – it’s very liberating. Think about it: gold continues its safe-haven role as a reliable hedge against rising inflation.
I believe that those who save in gold will experience, on average, no cost increases in the things they buy and the services they use.
Their standard of living would not be impacted.

I think this kind of thinking is especially critical to adopt when you consider that supply and demand trends for gas and food dictate that prices will likely rise for a long time, and perhaps dramatically.
So how much will you need to make it through the upcoming inflation storm and come out unscathed?

Like all projections, assumptions abound. Here are mine for the following table. I’m assuming that:
•  The price of gold, on average and at a minimum, tracks the loss in purchasing power of whatever currency you use, and that it does so from current prices. Given gold’s history, this is an easy assumption to make.
•  Gold sales, over time, capture the gain in gold and silver so that your purchasing power is preserved. (This doesn’t mean I expect to sell at the top of the market; I expect we’ll be selling gold as needed – if gold has not itself become a widely accepted currency again.)
•  We pay taxes on the gain. This will decrease our net gain, but there should still be gains. In the famous Weimar Germany hyperinflation, gold rose faster than the rate of hyperinflation.

To calculate how much we’ll need, I looked at two components, the first being average monthly expenses. What would we use our gold and silver for? From corn to a house payment, it could be used for any good or service. After all, virtually nothing will escape rising inflation. Here are some of my items: groceries, gas, oil changes and other car maintenance, household items, eating out, pool service, pest service, groceries and gas again, eating out again, vitamins, movie tickets, doctor appointments, haircuts, pet grooming, kids who need some cash, gifts, and groceries and gas yet again. Groceries include ice cream, in my case. How many ounces of gold would cover these monthly expenses today?

And don’t forget the big expenses – broken air conditioner, new vehicle, vacation… and I really don’t think my daughter will want to get married at the county rec hall. How many ounces of gold would I need to cover such likely events in the future?
The point here is that you’re probably going to need more ounces than you think. Look at your bank statement and assess how much you spend each month – and do it honestly.

The other part of the equation is how long we’ll need to use gold and silver to cover those expenses. The potential duration of high inflation will dictate how much physical bullion we need stashed away. This is also probably longer than you think; in Weimar Germany, high inflation lasted two years – and then hyperinflation hit and lasted another two. Four years of high inflation. That’s not kindling – that’s a wildfire roaring through your back yard.

So here’s how much gold you’ll need, depending on your monthly expenses and how long high inflation lasts.

Every corn-based product on the grocery shelf will soon take a lot more dimes and dollars to buy. But wait – what if I used gold to buy corn?

If my monthly expenses are about $3,000/month, I need 45 ounces to cover two years of high inflation, and 90 if it lasts four years. Those already well off or who want to live like Doug Casey should use the bottom rows of the table. How much will you need?

Of course many of us own silver, too. Here’s how many ounces we’d need, if we saved in silver.

A $3,000 monthly budget needs 1,285 ounces to get through one year, or 3,857 ounces for three years.

I know these amounts probably sound like a lot. But here’s the thing: if you don’t save now in gold and silver, you’re going to spend a whole lot more later.
What I’ve outlined here is exactly what gold and silver are for: to protect your purchasing power, your standard of living.
It’s like having your own personal financial bomb shelter; the dollar will be blowing up all around you, but your finances are protected
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And the truth is, the amounts in the table are probably not enough. Unexpected expenses always come up. Or you may want a higher standard of living. And do you hope to leave some bullion to your heirs?
It’s sobering to realize, but it deserves emphasis: if we’re right about high inflation someday hitting our economy…

Most people don’t own enough gold and silver.
If you think the amount of precious metals you’ve accumulated might be lacking, I strongly encourage you to put a plan in motion to save enough to meet your family’s needs.

We have top recommended dealers in BIG GOLD, ones we’ve vetted that are trustworthy and have highly competitive prices. We also recommend a service that will deduct whatever amount you chose from your bank account and buy bullion for you automatically. And now, given how concerned we’ve been about the inflation that’s coming, we’ve actually started our own service. You can check it all out in the current issue of BIG GOLD, risk-free. I can tell you that purchase premiums are incredibly low, due to a proprietary system that bids your order out to a network of dealers that compete for your business. We’re already using it, and the response from other investors has been tremendous.

Whatever plan you adopt, my advice is to make sure you have a meaningful amount of bullion to withstand the firestorm that’s almost mathematically certain to occur at this point. And now you know exactly how much gold you’re going to need.

See this article at:

<http://www.financialsense.com/contributors/jeff-clark/what-do-when-not-if-inflation-gets-out-hand&gt;

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The Cloward-Priven strategy is working.

Remember these points:
1. “Nothing in politics happens by chance”. — President Franklin Roosevelt
2. “Strategy is something that happens to you while you are looking the other way”. — President Franklin Roosevelt.
3. The illegal we do immediately; the unconstitutional takes a little longer.” –Secretary of State Henry Kissinger

The Cloward–Piven strategy is a political strategy outlined in 1966 by American sociologists and political activists Richard Cloward and Frances Fox Piven that called for overloading the U.S. public welfare system in order to precipitate a crisis that would lead to a replacement of the welfare system with a national system of “a guaranteed annual income and thus an end to poverty”.

Cloward-Piven Paradise Now?

August 1, 2011, American Thinker, By Jeannie DeAngelis
<http://www.americanthinker.com/2011/08/cloward-piven_paradise_now.html>
“Combine class warfare, demonizing the rich, getting as many people onto the welfare rolls as possible, and pushing the economic system to collapse and you have a flawless formula for Cloward-Piven 2.0 — and a vehicle that ensures Obama remains in power. Cloward-Piven is a much talked-about strategy proposed in the mid-1960’s by two Columbia University sociology professors named Richard Andrew Cloward and Frances Fox Piven. The Cloward-Piven approach was sometimes referred to as the “crisis strategy,” which they believed were a means to “end poverty.” The premise of the Cloward-Piven collective/anti-capitalist gospel decried “individual mobility and achievement,” celebrated organized labor, fostered the principle that “if each finally found himself in the same relative economic relationship to his fellows … all were infinitely better off.” The duo taught that if you flooded the welfare rolls and bankrupted the cities and ultimately the nation, it would foster economic collapse, which would lead to political turmoil so severe that socialism would be accepted as a fix to an out-of-control set of circumstances. The idea was that if people were starving and the only way to eat was to accept government cheese, rather than starve, the masses would agree to what they would otherwise reject. In essence, for the socialist-minded, the Cloward-Piven strategy is a simple formula that makes perfect sense; the radical husband-and-wife team had Saul Alinsky as their muse, and they went on to teach his social action principles to a cadre of socialist-leaning community organizers, one of whom was Barack Obama. As the debt crisis continues to worsen, President Obama stands idly by an inferno with his arms crossed, shaking his head, and doing nothing other than kinking the fire hose and closing the spigot. Spectator Obama is complaining that the structure of the American economy is engulfed in flames while accusing the Congress, which is trying desperately to douse the fire, of doing nothing about the problem. Although speculative, if the Cloward-Piven strategy is the basis of the left’s game plan, spearheaded by Alinsky devotee Barack Obama, it certainly explains the President’s inaction and detached attitude.

The greatest nation in the history of the world is teetering on the brink of a catastrophic economic crisis. America was pushed to this point by a rapidly-expanding national debt and a stressed-out entitlement system; in the center of this crisis is the President, who insists on expanding it even further, all in the name “fairness” and “social justice.” As a default date nears and the President threatens seniors that there’s a chance they may not receive their Social Security checks, it has been revealed that the federal government disperses a stunning 80 million checks a month, which means that about a third of the US adult population could be receiving some sort of entitlement. Since the 1960’s when Cloward-Piven presented a socialistic guideline to usher in the type of evenhandedness Obama lauds, America’s entitlement rolls have swelled from eight million to 80 million. If the nation’s ability to disperse handouts were ever disrupted, it’s not hard to see how chaos would erupt should an angry army of millions demand what Cloward-Piven called “the right to income.” Couple the threat of dried-up funds for food stamps, Social Security, unemployment benefits and the like with the Obama administration’s vigorous campaign to turn a tiny upper class of big earners into the enemy, and you have the Cloward-Piven recipe for anarchy and complete collapse. If the worst happened, Saul Alinsky’s biggest fan, whose poll numbers continue to plummet, could use mayhem in the streets to remain firmly ensconced in the White House. Alinsky taught his students a basic principle that community organizer Barack Obama learned well: “Never let a good crisis go to waste.” Fiscal disintegration coupled with lawlessness would deliver the type of Cloward-Piven/Saul Alinsky trifecta that progressives have worked toward and waited decades for…”

The Cloward/Piven Strategy of Economic Recovery
February 7, 2009, American Thinker, By Nancy Coppock http://www.americanthinker.com/2009/02/the_clowardpiven_strategy_of_e.html
“Using borrowed money for a band-aid bailout of the economy should seem backwards to most people. However, it likely is a planned strategy to promote radical change. Those naively believing that President Obama is simply rewarding his far-left base, and will then move to the political center, must wise up.

The assumption that Obama will need the nation to prosper in order to protect the 2010 mid-term election incorrectly assumes that he esteems free market capitalism. He does not. Rather than win through superior ideas and policies, the Democrat plan for success in the mid-term elections is to win by destroying political opposition. Obama adheres to the Saul Alinksy Rules for Radicals method of politics, which teaches the dark art of destroying political adversaries. However, that text reveals only one front in the radical left’s war against America. The Cloward/Piven Strategy is another method employed by the radical Left to create and manage crisis. This strategy explains Rahm Emanuel’s ominous statement, “You never want a serious crisis to go to waste.” The Cloward/Piven Strategy is named after Columbia University sociologists Richard Andrew Cloward and Frances Fox Piven. Their goal is to overthrow capitalism by overwhelming the government bureaucracy with entitlement demands. The created crisis provides the impetus to bring about radical political change. According to Discover the Networks.org:  Rather than placating the poor with government hand-outs, wrote Cloward and Piven, activists should work to sabotage and destroy the welfare system; the collapse of the welfare state would ignite a political and financial crisis that would rock the nation…[ Making an already weak economy even worse is the intent of the Cloward/Piven Strategy. It is imperative that we view the American Recovery and Reinvestment Plan’s spending on items like food stamps, jobless benefits, and health care through this end goal. This strategy explains why the Democrat plan to “stimulate” the economy involves massive deficit spending projects. It includes billions for ACORN and its subgroups such as SHOP and the Neighborhood Stabilization Program. Expanding the S-Chip Program through deficit spending in a supposed effort to “save the children” only makes a faltering economy worse. If Congress were to allow a robust economy, parents would be able to provide for their children themselves by earning and keeping more of their own money. Democrats, quick to not waste a crisis, would consider that a lost opportunity…”

Can it be? When you’re in a hurry to get somewhere socio-economically and the combination of Welfare, Food stamps, Medicare, and Social Security aren’t getting you there fast enough, you must additionally provide  welfare subsidies for the automobile industry, for the some of the worlds largest Financial Banks and even guarantee the solvency of foreign countries.

The Debt Walkers Strike Back
The Automatic Earth, 2 Dec 2011, by Ilargi
http://theautomaticearth.blogspot.com/
“It’s very simple, but maybe that’s the problem. For all I know it’s just too simple for people to see.

There’s a group of people, and it’s tempting to call them the 1%, but they’re not really, since there’s politicians in there too who have no shot at even aspiring to be part of the 1%, and media pundits and economists and what have you, who all together try to save the existing financial system at all cost. A cost that they don’t bear: that cost is being paid for by the 99%.

Theirs is just one particular view, one particular idea, of what it takes to get out of the crisis we’re in. Nothing more, nothing less: just one idea. But one that prevails over any alternatives to such a radical extent that, from an objective point of view, it can’t but boggle the mind.

“If we don’t save the banks and the financial system at large, there’ll be Armageddon to pay”. That’s the endlessly repeated prevailing line.
However, if we keep on spending ever more trillions to prevent Armageddon from arriving, surely we must invite it, by the very act of doing exactly that, to at some point come knocking on the back door. After all, you can’t spend more and more, and then some, without ever being served with the bill for doing so.

So we’ve had all these rescue missions over the past 5 years. Behemoth-sized amounts of taxpayer money and future taxpayer money have been poured into our economies in this alleged attempt to try to save them.

Now, take a step back and tell me what you see. I’ll tell you what I see: a financial system that is in worse shape than ever before during those 5 years. At least half of Europe is flat broke, most banks have lost 50%-80% of their market value, Bank of America, a major bailout

recipient, is fast on its way to becoming a penny stock, China sees shrinkage wherever it looks and Japan is rumored to be awkwardly close to the chopping block.

Evidently, something’s not working the way it’s supposed to.
And here is why: it is becoming clearer by the day that saving the banks is not the same as saving the people, upon whom increasing austerity is unleashed to pay for … saving the banks.

We have a choice to make: either we save the banks, or we save our societies. Which are falling apart as we speak on account of the costs of saving an already deeply bankrupt financial system.

But we’re not even starting to discuss that choice. All choices and decisions are being made -for us- in a one-dimensional vacuum theater by a small group of people who, to a (wo)man, flatly deny that such a choice needs to be made or even exists. Because making that choice doesn’t fit their purposes and careers and fortunes and ego’s.

Merkel, Blankfein, Sarkozy, Jamie Dimon, Obama, David Cameron, Mario Draghi and Timothy Geithner, they are all servants of the existing financial system, of the existing banks, which are broke but try to hide that from us. At our debilitating expense.

Yes, they’ve been able to stave off the inevitable until now. But that has only been possible because they have virtually unlimited access to your money, to the wallets of the 99%.

We should grow up and make these decisions ourselves, instead of letting a group of morally severely challenged suits with very vested interests make them for us any longer.

They’re leading us straight into Dante’s Ninth Circle of Hell. And last I heard, that’s definitely not a place to raise your kids.”

We intuitively know what the executives of the bailed out Financial Institutuions must feel. After costing the American people 10s if not 100s of billion$ of dollars and trillion$ in derivitive guarantees,  they reward themselves with 100,000$ if not million$ in payday bonuses. While they did not share in their largess during times of plenty, yet we were forced to pay their debt.

How do the people toward the lower end of the economic spectrum feel?
As a ‘retired person’ living in a retirement community, I see a lot of elderly folks and have heard a lot of hardship stories.
At present, if you are looking toward retirement there is nowhere to put your savings. Money is not safe due to inflation. Banks are not safe. Funds, stocks, bonds…
If you buy gold & silver bullion or US Mint bullion coins, for protection from inflation, and safety from bank and debt collapse, you will be fined with a huge tax. The Federal Government does not want your money placed in bullion since they have no access to using those funds. They don’t want you to have freedom in your old age, they want you on welfare-where you are controlled by the threat of loss.

Everyone sees the national ‘news’ media and interprets the sound bites into the management of their own unique circumstance. What are people at the real grass-roots learning and what are their community social-economic expectations? Don’t laugh at what follows, it is the result of what was discussed in the article above.
Is the Cloward–Piven strategy working yet? Yes, and we’re far along on the road to what Ilargi refers to as ‘Dante’s Ninth Circle of Hell’. When the ‘system’ finally breaks, it won’t be paradise, but conditions may make our new minimalistic Socialistic Government subsistence checks  look like it.

Mother of 15 Kids: “Somebody Needs to Pay; Somebody Needs to Be Held Accountable”
A woman with 15 kids (and no spouse) complains that people around aren’t doing enough to help her – even though her rent, food and furniture have all been covered by good Samaritans and the government. You have to see this to believe it!
“Somebody needs to be held accountable, and they need to pay,” she said.
Um, maybe that someone should be you?

Paste the following YouTube link in your browser.

http://www.youtube.com/watch?v=bavou_SEj1E

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Professor Cornel West: Battle For Entitlements Will Be “Fought In the Streets”
December 5th, 2011, SHTFplan.com, by Mac Slavo  
With the economy on its last leg, poverty stricken Americans at record highs and mass movements against greed and interventionist government policies already organizing in major American cities, Princeton professor Cornel West predicts that the battle for entitlements will be fought in the streets.
[Image at right Professor Cornel West and President Barack Obama.]

“Some of this is going to be fought in the streets. Civil disobedience does make a difference. Because corporate greed now is an issue everybody’s got to talk about. Wealth equality – everybody’s must talk about because of the Occupy movement.” [What did we read in the articles above about the Coward-Priven startegy?- Mr Larry]

[Video link to Professor West’s interview. http://www.shtfplan.com/headline-news/professor-cornel-west-battle-for-entitlements-will-be-fought-in-the-streets_12052011  ]

Civil disobedience will only work until the people realize nothing has been done – and that nothing can or will be done. When they finally understand that politicians, bureaucrats and corporate interests have completely destroyed their way of life, then we can fully expect violent confrontations and mid-east style, potentially armed, riots in the streets of America.   This isn’t going away. In fact, the frustration, anger and desperation will continue to build pressure. Whether its the Tea Party movement, Occupy Wall Street, or other third-party protests, the momentum is gaining speed and strength.   When the powder keg finally blows all bets are off. We can only hope for civil disobedience. But considering what we saw happen in the mid-east, where many were protesting exactly the same circumstances – an out of control government, rising food prices and impoverishment of the working class, among other things – we should be preparing, as trend forecaster Gerald Celente has so oft predicted, for the people who have lost everything, and have nothing left to lose, to completely lose it.   The government is certainly preparing for this eventuality, because in many circles they know civil unrest is a foregone conclusion.

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The clock is ticking, time is running out

(News & Editorial/ The clock is ticking, time is running out.)

news-desk[1]A.  Will America make it to 2018 before the largest depression in history strikes?
July 2013, Answers.Yahoo.com, by Deusche
Pasted from: http://answers.yahoo.com/question/index?qid=20130626135336AACi7MV

Economic collapse is now a mathematical fact for the future of the western nations, the only question which remains is when. Every chart points to the 2018 period where we hit completely unsustainable figures in debt/income rations, 0% savings rate, and facing a deficit of 2X the taxable capacity. In other words, despite all the blind hope many people have, the US government can not raise taxes 100% and maintain a healthy economy, nor can people continue to spend 110% more than they make with $0 savings. It just simply isn’t possible. The trends will not reverse either, these trends have not changed since 1960, and would amount to a complete cultural shift of not spending anything and converting that money to debt and savings. This clearly is NOT going to happen before 2018.

So the question remains, will we slip into the depression prior to 2018, or will we do like everything else and wait until the last second and go off the cliff?

The days for disagreement and debate for whether the dollar will collapse are over. If you think there is a chance it will NOT then you lack the knowledge of our current economic system and I have no interest in your opinion because it is based on propaganda and complete ignorance. If you chose to ignore the blatantly obvious facts staring us in the face then you won’t matter soon anyway because you’ll lose all of your money on deposit and starve to death before 2020. (The FDIC currently only holds enough reserve for 40% of the nation’s current depositors, which is pointless anyway since the dollar will have no value)

Will enough people see the future and begin to withdrawal from the US dollar and cause the depression to begin early, or is this country too filled with the mindless and irresponsible that it will actually make it to 2018?

So out of curiosity,
How many here have at least 2 years worth of equity in non-dollar based wealth?
Who here has 3-6 months of access to food and water?
Who here has the ability to maintain these conditions > 100 miles from a major city?
Who here has NO debt, and a second trade which will be useful in a micro economy?

If you answer yes to all of these, congrats, you will survive to see 2020, if you answered NO to any of these, then your odds are incredibly small.

You have up to 1 year and 2 months remaining to make these things happen. You will not be warned by CNN, Bloomberg, newspapers, goofle, or any other media outlet, just like every other time in history when an economic crisis hits and they are blinded by normalcy bias. It puzzles me still why people think the news is going to warn them of a depression, they never have and never will. By the time you hear a Moody’s downgrade, the market dropping 1000 points in a single day, or the Fed doubling QE after an emergency session in DC it will be too late.

Many people tried to stop the great depression, dumping billions (trillions in todays inflated currency) into the systems hoping to stop it, but in the end the market and the collapse is not something anyone can stop.

This is the only Warning you will receive. It’s up to you whether you chose blind faith and financial data based on best case propaganda, or whether you do the research and realize the facts. Even common sense tells you a society completely based on financing there is something seriously wrong. Remember, the markets always surge before the crash. We’ve had the surge, so we know what comes next.

Additional Details
What you can do is stock up on basic living needs. Normalcy Bias tends to leave people with the false impression that we will always have access to cheap food at the grocery store. The average travel your food makes is 1500 miles, so it won’t take much to stop that flow. People need to remember, this past 50 years of success have been a FLUKE in human history. Starvation and suffering has been the normal for 99% of human history. We’re about to enter a NATURAL cycle of a major downturn. The reason is quite simple. The average person consumes more than they contribute. This adds up, and today our society is at its breaking point. Taxes can NOT rise and produce more, it will only shut down businesses and increase unemployment. Taxes lowered or remaining the same will definitely lead to US defaults. Either way it’s coming.

There is no “Which one” you idiot. The entire western civilization and their governments are completely broke. What part of this do you not understand? Which chart can’t you read? What part of 100% broke is so hard to figure out? These are not standing figures, these are ratios. Do you know what a ratio is? Probably not…

100% debt/gdp
110% consumer di debt/income
3:1 deficit increase

This means the entire western civilization is spending MORE than they bring in. So when people say there is nothing wrong, the economy can continue they are not only wrong, they are completely and utterly clueless.

1 – 2 does not equal + numbers. You can’t barrow out of debt, you can’t continue spending more than you make. At some point the lenders STOP, and what do you think interest rates will do?? We can barely afford the debt service now at practically 0%, so just how exactly are people and the governments going to afford 2X 4X 9X the payments???

B.  Celente Warns: “If You Don’t Have Your Money In Your Pocket It’s Not Yours”
22 Oct 2013, SHTFplan.com, by Mac Slavo
Pasted from: http://www.shtfplan.com/headline-news/celente-warns-the-collapse-of-2014-if-you-dont-have-your-money-in-your-pocket-its-not-yours_10222013

clock ticking

(Image courtesy Dees Illustration)

If there’s one thing that should be clear, it’s that nothing the government or their banking partners have done to solve the economic crisis has been for your benefit. They’ve enriched themselves, yet again, on the backs of the American people.

All the while, they’ve told us that everything is getting better. But anyone who’s paying attention know that nothing of the sort has happened.

We continue to shed jobs. Hundreds of thousands of people are still losing their homes. Personal debt is rapidly approaching 2007 levels. The U.S. government has borrowed more money than what we can ever hope to repay.

We are still in the middle of it and it’s only going to get worse.

If you think it’s over, that they saved us and we’re out of the woods, then you’ve got a lot of pain coming your way.

And if you think you still have plenty of time to prepare, that it’s decades or years away, you’d better think again.

Trend forecaster Gerald Celente predicted the collapse of 2008 in remarkable fashion. And now he’s warning of a similar crisis to come next year.

There’s fear and hysteria running through the entire global financial community, because as everybody knows all they did was postpone the inevitable.

[They’re going to] turn more of America into Slavelandia as well, where people can get those part-time jobs, have no insurance, no benefits, and not enough money to live on, and they’ll have to go on food stamps and other assistance…

I’m saying to everybody out there, If you don’t have your money in your pocket it’s not yours.

Any self-respecting adult that hears McConnel, Reid, Boehner, Ryan, one after another, and buys this baloney… they deserve what they get.
And as for the international scene… the whole thing is collapsing.
That’s our forecast.
We are saying that by the second quarter of 2014, 1) we expect the bottom to fall outor 2) something to divert our attention as it falls out.

It’s the militarization of the United States… because of the grand scheme. And that is, these people may be stupid – the people running government – but they’re very shrewd. And they know… that there’s no way to solve these economic problems.

The mayhem that went on at Walmart when people couldn’t cash in their food stamps.
Multiply that by tens of millions. Multiply that by a breakdown in society. 

Look what they did in Boston. To me that was a test. They closed down a hundred square miles… to hunt for a 19-year old kid.
Look at America’s most feared criminal of this last year. A 19-year old kids, Snowden, and Bradley Manning. Now there’s three faces of disaster you never want to meet in a dark alley.
So, you can see how this society is being controlled because they don’t want anyone to get out of line.

YouTube

Watch Gerald Celente and Alex Jones discuss the coming trends and our future at YouTube:
http://www.youtube.com/watch?feature=player_embedded&v=SEgd8t339gU

.

Make no mistake. It’s coming.
And when it hits, it’ll make the crisis of 2008 look like a picnic.
We survived that one, barely, but it took trillions of dollars just to stabilize, not fix, the system.

This time around, our creditors and the people as a whole may well lose confidence. And once that is lost, look out, because as Gerald Celente notes, the happenings at Walmart when the EBT system crashed were just a prelude.

Imagine that next time around it happens to not just EBT cards, but ATM’s and bank accounts, or that the U.S. dollar itself crashes to such an extent that it is no longer feasible as a mechanism of exchange.
In such a scenario you can fully expect disruptions to food supplies and the normal flow of commerce.
The only saving grace you’ll have are the physical assets in your possession – your arable land, long-term food stores, gold and silver ( http://www.jmbullion.com/ ), and the post-collapse labor skills you’ve developed.

The time to prepare is now or you may well experience the horrific effects to come.

.

C.  Shadow Stats Founder On Hyperinflation: Disruptions to Food Supplies, Normal Flow of Commerce
5 May 2010, SGTFplan.com, by Mac Slavo
pasted from: https://www.shtfplan.com/emergency-preparedness/shadow-stats-founder-on-hyperinflation-disruptions-to-food-supplies-normal-flow-of-commerce_05052010

Many of our readers are familiar with John Williams of Shadow Stats (http://www.shadowstats.com/ ). We often refer to his economic analysis to get the real story about GDP growth, unemployment and most matters of government accounting.

In previous articles, we’ve discussed the threat of Hyperinflationary Depression – No Way of Avoiding Financial Armageddon and What is Money When the System Collapses?

Mr. Williams was recently interviewed by The Gold Report and the discussion revolved around the real possibility of hyperinflationary collapse of the US Dollar and an economists view of what the effects of such a collapse would be. If you haven’t read our previous articles, we’d recommend reading those now as they may provide some ideas, tips and strategies to help you whether the storm in the event that it does happen as Mr. Williams suggests it may.

The following excerpts are just snippets from an excellent interview that is worth your while to read in its entirety.

There’s strong evidence that we’re going to see an intensified downturn ahead, but it won’t become a great depression until a hyper-inflation kicks in. That is because hyper-inflation will be very disruptive to the normal flow of commerce and will take you to really low levels of activity that we haven’t seen probably in the history of the Republic.

Again, if you start to see,  1) a great depreciation of the U.S. currency or, 2) a tremendous increase in lack of confidence in the soundness of the government’s fiscal condition, there is a problem. You mentioned Greece, for example. The sovereign solvency issues there are minuscule compared to what we have with the United States, which is the elephant in the bathtub. The markets know it’s there. The central bankers know it’s there. Again, with the downturn in the economy, all the issues are going to be brought to a head. 3) As they come to a head, there will be that effort to dump the dollar. I would expect that, indeed, it will be decoupled from its reserve status, although it could follow after the fact as opposed to before the fact.

Beyond income issues, the problem with the hyper-inflation is that very quickly the use of cash will cease. Let me contrast our circumstance here with a very popularly followed hyper-inflation case that’s now run its course in Zimbabwe. There you had probably the worst hyper-inflation that anyone’s ever seen. After devaluation upon devaluation, they successively lopped the zeros off the bills. If you took a $2 bill that they first issued back in the ’80s and then tried to come up with the equivalent of a $2 bill in the last form of the currency, it would be very difficult to do because it was so worthless. If you put a pile of those together to equal the original $2 bill, it would actually stretch from the earth to the Andromeda Galaxy. We’re talking light years. There are not enough trees on earth to print them. Yet the Zimbabwe economy survived and functioned. They had a lot of problems, but they operated. The reason they functioned was because they had a back-up system, which was a black market in U.S. dollars. People switched out of the Zimbabwe dollar to U.S. dollars. They could live with that. In the U.S., we don’t have a back-up system.

In terms of preserving the purchasing power of your assets, the best thing I can think of is physical gold. That’s worked over the millennia. I’m not per se a gold bug. It just happens to be a circumstance in which it’s the cleanest asset around for that. You don’t need to put all your assets into gold, but hold some. Hold some silver. I’d look to get some assets out of the U.S. dollar and look to get some assets out of the U.S. When I say outside of the U.S. dollar, again, I look at the Canadian dollar, Australian dollar, Swiss franc in particular. I think they will tend to do particularly well, whereas the U.S. dollar is going to become effectively worthless.

As the dollar breaks down, you’ll also likely see disruptions in supply chains, including shipments of food to grocery stores. People should consider maintaining stockpiles of basic goods needed for living, much as they would for a natural disaster. I sit on the Hayward fault in California. I have a supply of goods and basic necessities in case something terrible happens-natural or man-made-that will carry me for a couple of months. It may take that long for a barter system to evolve, which I think is what you’re going to end up with; at least until a new currency system is reorganized and you get a government that’s able to bring its fiscal house into order. No currency system in the U.S. is going to work unless the fiscal conditions that drove it into oblivion are also addressed.

I like physical gold and silver. I look to gold as a primary hedge. If you can come out of this holding gold, you’ll be in a position where you’ll be able to take advantage of some extraordinary investment opportunities that will follow.

It’s coming, and top (non-mainstream) economists are telling us to get ready.

Contrary to what we hear from Mr. Bernanke, Mr. Geithner, and Mr. Paul Krugman, the economy will not continue to grow indefinitely and we have not completely recovered yet. This is all part of a greater depressive trend in the economy and if Mr. Williams is right, the real numbers will show economic contraction in the latter part of 2010. What will the stock market and bond markets do once global investors and US debt buyers realize that the so-called recovery was nothing more than a mirage?

The Federal Reserve is printing trillions of dollars, and when it becomes apparent that the plans put forth by President Bush and President Obama have failed, we are going to be in serious trouble.

We are going to side with Mr. Williams on a coming hyperinflationary destruction of the US Dollar at some point in the near future (timeframe: +- 5 years), and we hope that Mr. Williams’ assessment of a brief period of disruption to commerce is accurate. Because if it is anything longer than that, then the shit will most certainly be hitting the fan in the style of The Day the Dollar Died or Patriots,, and that will not be in any way pleasant, even for those of us who are ready for it.

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Precious metals will become currency as the dollar goes bad

(News & Editorial/ Precious metals will become currency as the dollar goes bad)

bad dollar currency

A. Recent headlines:
1. China-Russia currency agreement further threatens U.S. dollar:
http://www.ibtimes.com/china-russia-currency-agreement-further-threatens-us-dollar-248338#

2. Brazil, China Sign Trade Deal to Bypass Dollars:
http://silverdoctors.com/brazil-china-sign-trade-deal-to-bypass-dollars/

3. China-Australia to Ditch US Dollar…
http://www.stormfront.org/forum/t957807/

4. BRICS Nations (Brazil, Russia, India, China and South Africa) signed Local Currency agreement at Summit. They will not trade in U.S. dollars anymore. Agreements around the world between Countries to Drop U.S. dollar for trade (including Australia http://sherriequestioningall.blogspot.com/2012/03/bric-nations-brazil-russia-india-china.html

5. The Germans Want Their Gold Reserves Back In Germany:
http://www.forbes.com/sites/robertlenzner/2013/01/19/the-germans-want-their-gold-reserves-back-in-germany/

6. “Germany wants its gold back, Fed says…eventually, maybe“:
http://www.examiner.com/article/germany-wants-its-gold-back-fed-says-eventually-maybe

7. Texas Wants Its Gold Back From The Fed:
http://www.zerohedge.com/news/2013-03-23/texas-wants-its-gold-back-fed

With the world human population being 7.0 billion, so 30% of the world has moved away from the dollar.
China (1.3 billion population), Russia (143 million), Brazil (194 million), Australia (23 million), India (1.2 billion), South Africa (51 million) = total 2.91 billion population of listed countries.

..

bad dollar historicB. Implications of the loss of the dollar’s reserve status
22 Mar 2009, MarketSkeptics.com, by Eric deCarbonnel
Excerpt pasted from: http://www.marketskeptics.com/2009/03/how-big-deal-is-loss-of-dollars-reserve.html

As the dollar loses its reserves status, at least half of the world’s $5,385 billion dollar reserves will be sold off and replaced with other currencies (yuan, euro, khaleeji, gold, rand, etc…). The US, with its $71 foreign reserves, will not be able to do anything to counteract this mass exodus from the dollar. With outflows of this magnitude, the dollar’s value will collapse to a fraction of where it is now. The process of foreign nations extracting themselves from the dollar is not going to be pretty. The likely impacts are:

1) The dollar’s value will plunge as investors see the writing on the wall and jump ship.

2) US credit markets will collapse. As the dollar fall, a mass exodus from credit market will begin. Investors sitting on toxic securities will sell at firesale prices to escape the currency depreciation.

3) The fed’s balance sheet will explode beyond all reason. In response to the mass exodus from credit markets, the fed will buy trillions worth debt in a desperate attempt to hold interest rates down. Unfortunately, the more debt the fed buys, the more quickly the dollar will fall, and the more panicked the credit selloff will become.

4) US interest rates will soar, despite (or because of) the fed’s efforts.

5) Countries around the world will be hurt badly by the dollar’s decline. These countries include:
_A)  Nations which are heavily dependent on US exports: Japan, Mexico, etc…
_B)  Nations with large dollar reserves: Japan, China, Gulf oil states, etc…
_C)  Nations which receive large amount of US foreign aid: Israel, Egypt, etc…
_D)  Nations which rely on remittances from citizens working in the US: Mexico, India, etc…
_E)  Nations which use dollars as their official currency: Liberia, Panama, etc…
_F)  Nations which have large amounts of dollars in circulation: Central and South America (especially Argentina), Eastern Europe, etc…

6) Some nations will see benefits from the dollar’s decline. These countries include:
_A)  Nations with large gold reserves: EU zone, Switzerland, etc…
_B)  Nations which owe dollar denominated debt will see that debt wiped out: Iceland, African nations, etc…
_C)  Nations who stable currencies: EU zone, Switzerland, China, etc…

7) World politics will be greatly altered. There will be considerable anger at the US from nations hurt by dollar’s fall. The US will lose influence to Asia (mainly China).

8) US retailers will get crushed. As the dollar falls, the cost of imports for retailers will increase, but the American consumer will be unable to afford to these higher prices. Competition between desperate retailers will force them the sell inventory at below cost, creating massive losses. Retailers most heavily dependent on imports (ie: Wal-Mart) will be the first to go under. Eventually as more and more retailers go bankrupt, the few survivors will be able to raise prices enough to cover costs, and the sector will stabilize at a fraction of its current size.

9) American lifestyles will change radically. The end of cheap oil, low interest rates, and deficit spending will mean a lower quality of life and higher taxes.

10) The price of gold and other precious metals will explode.

11) US will experience hyperinflation.

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C. WHAT IF?
29 May 2013, Gold-Eagle.com, an editorial by Larry LaBorde of http://www.silvertrading.net/ Pasted from: http://www.gold-eagle.com/editorials_12/laborde052913.html

What if the US lost its world reserve currency status?  What might it look like? I suppose the first question is; what does it mean that we have the “world’s reserve currency”?
At the end of WWII the allies met at Bretton Woods and decided to use the US dollar as the official world currency and that it would be backed by gold.  All worldwide trade would be priced in dollars and settled in dollars.  Food, energy (oil), etc from around the world would be priced and paid for in USD.  New York became the financial center for all world trade. Fast-forward to President Nixon in 1971 and the USD was cut loose from the gold standard due to OPEC oil imports and a growing imbalance of trade that was causing gold to flow out of the US in large amounts. Today goods from around the world flow to the US and newly created paper dollars flow out.  (Well not really paper dollars, just newly created electronic digits made up on a computer.)  In essence we create IOUs that everyone must accept due to the Bretton Woods agreement and they send us their stuff.
Once we completely figured this out we decided in the 1990’s that we would “think” and they would “work”.
The US was going to run as a clean “information society” and all that dirty industry would go somewhere else.  Our balance of trade kept getting worse and worse.  We imported way more than we exported.
We used to report our imbalance of trade numbers a couple of decades ago with great concern.  Now no one seems to care at all since it is so far out of balance that it can never be fixed.  (Sort of like an annoying knock in the engine that you fix by turning up the radio.)  Ocean going freight containers started to pile up over here because we didn’t have enough goods to send them back fully loaded.  For a while we sent hay overseas in freight containers because we had to send empties back to get them refilled so they greatly discounted the freight on the backhaul or return trip.
Many people have started to find creative uses for these freight containers that are building up over here.  They are the empty boxes on Christmas morning.  Who sends the empty boxes back to the store for more toys?  You just get new boxes.
Under the original Bretton Woods agreement if one country imported more goods than they exported the difference was settled up in gold.  After a while the lazy country sent so much gold overseas that its currency dropped in value and they could not import as many goods.  The lower priced currency made their exported goods more competitive so they began exporting more and the gold flowed back.
When the link to gold was cut this self-regulating mechanism was broken.  So now why should the US export anything?  Why not import everything and just pay for it all with USD made up from nothing?  Works great for the US but everyone else may have a problem with that system.  So why does the rest of the world still accept our USD electronic digits?

One reason is the rest of the world can still spend them at the Middle East gasoline station to tank up with oil.  In the late 1970’s and early 1980’s a deal was cut with the Saudis that so long as they priced their oil in USD and USD only, we would support their family rule with the full force of the US military.   So even though we did not export enough goods to soak up all of our exported USD, the Middle East did.  The OPEC countries then purchased our US bonds with their excess USD and earned a pretty good interest on their USDs – until now.  Whenever someone in North Africa or the Middle East failed to live up to the agreement they were “replaced” with someone who would. The whole system is now broken but still working somewhat.  The only reason the rest of the world has not thrown it out altogether is there is not anything else to easily take its place.  (Your thoroughbred now is old and swaybacked and stumbles along but it is still better than walking.)  The world thought the Euro might offer an alternative to the USD when it was first launched.  We all see where that is now leading.  Doug Casey famously said, “The dollar is an IOU nothing but the euro is a who owes you nothing.”  It seems that the euro is not going to offer the USD any serious competition.  The USD is still the prettiest horse at the glue factory. So what is next?

Well the BRICS (Brazil, Russia, India, China and South Africa) have started their own development bank.  This cuts the World Bank out of the picture in much of the world.  The G-20 is talking about alternative currencies to challenge the USD and perhaps replace it one day with something a bit more fair to everyone else.  China is cutting trade deals directly with Brazil and Australia outside of USDs.  India is cutting deals with Iran outside of USDs.  This is in direct violation of the Bretton Woods agreement.  However, these countries feel they are exchanging value for value in their trade with each other on a more fair and equitable arrangement.
What would make a new reserve currency attractive?  If the country that issued it had a trade surplus or at least balanced trade with the rest of the world a lot of the resentment would disappear.  If the new currency were backed by gold once again the self-regulating mechanism would be fixed causing no one country to benefit to the detriment of another.  If a basket of currencies were used from several strong countries with both of these attributes then even better. Rumor has it that Russia and China have both been working hard to build up their gold reserves and they are both about 5 times the US gold reserve at its peak.  Rumor also has it that the US gold reserve is maybe not as large as reported. What if instead of Greece (or another PIIGS country) pulling out of the European monetary union and reissuing its own currency that something more interesting happened?  What if the strong man with the 3rd largest gold reserves and a strong export economy pulled out and reissued its own currency – backed by gold!
What if Germany pulled out leaving the Euro to collapse?  Then what if Germany looked east and linked up with Russian and Chinese currencies that were also backed by gold?  A new reserve currency made up of a basket of these three currencies (all backed by gold) would be a Eurasian powerhouse. But where would this leave the USD?  So long as the Middle East Gasoline Station was still in business and accepting USD it would survive.  But what if the Muslim Brotherhood took over Saudi Arabia?  What if the house of Saud fell?  What if the Chinese would not loan us any more money to mount Gulf War III to save the house of Saud?
There are several “ifs” here but what might happen? If the rest of the world could not spend their USD reserves at the Middle East Gas Station and we are not able to ramp up our exports and sell them something they might want, then what exactly would they do with those USD?  Why would anyone else in the world want them?  And since 1971 we have been sending them all over the world and they have been piling up in every corner, there are a lot of them out there that suddenly find themselves unloved.  I believe that all at once there would be a race to spend them all at the only place where they must be accepted – to the only place where they are legal tender for all debts both public and private – right here within the US.  They would buy everything that was not nailed down.  Cranes, bulldozers, tractors, trucks, ships and entire factories all to be crated up and carted off.  The mad rush of so many dollars would cause these items to be bid up to very high prices in USD.  This of course would devalue the USD even further.
All of a sudden all those old ocean containers that have been piling up over here would be filled to capacity hauling assets off as fast as possible.  All of those IOUs would come home to roost at the same time.  Of course we could default or slap on export taxes of 1,000% or some sort of currency controls for repatriated USD.  They could even call all of those USD overseas illicit drug money and seize all of it!  But that might lead to a war or several wars.  Wars have been fought over issues far less trifling than that.  No one likes to get stiffed on an IOU.  Especially the largest pile of IOUs in the history of the world.

Assuming that we did the right thing and honored our debts.  What would the US look like after the smoke cleared?  What few factories remained would be largely owned by foreign interests.  With much of the means of production carted off we would have a hard time exporting more than we consumed.  Anything imported would be terribly expensive priced in USD.  A trip to Wal-Mart would be like going to Neiman Marcus.  Since we no longer grow enough food to feed ourselves our imported food would be very expensive.  If the welfare state continued the dollar would devalue even more and finally collapse.  Everyone would have to accept a much lower standard of living as we worked in factories owned by foreigners.  As our dollar finally devalued to a fraction of its former glory the US would become a cheap labor country.  Factories would move back to the US for the same reason many moved to Mexico in the 1980’s and 1990’s.
Slowly we would rebuild and in a few generations we could be a first world country again.
So what can you do now?  Where can you run?  When the War Between the States began and the first Battle of Bull Run was fought, Southern General P.T.G. Beauregard set up his headquarters in the home of Mr. Wilmer McLean.  Mr. McLean was too old to fight in the Southern army and sought to move his family to safety.  He glanced at the map and picked a nice safe place 120 miles further south  – in Appomattox.  You see the war started in his front yard and ended in his parlor as General Lee surrendered the Army of Virginia to General Grant several years later.  The first and last great battles of that war both found Mr. McLean.   Sometimes you can run from danger but in the wrong direction.  Take some time and carefully think things through for yourself.  Make sure you are not jumping out of the fire and into the frying pan.  A storm could be coming our way.  Build a good storm shelter just in case.  Years too early are better than seconds too late.

 ..

D. Arizona lawmakers back gold, silver as currency
18 Mar 2013, Yahoo! News, by Cristina Silva/ Associated Press
Pasted from: http://news.yahoo.com/arizona-lawmakers-back-gold-silver-233837866.html

Arizona Republicans want to allow gold, silver to be used as currency

PHOENIX (AP) — Arizona lawmakers say the global economy is on the precipice of financial ruin and the U.S. dollar could soon be worth less than the paper used to make it.

These doomsayers are pushing forward legislation that would declare privately minted gold and silver coins legal tender, no different under state law than the U.S. dollar printed by the federal Department of Treasury.

The measure is Arizona’s latest jab at the federal government, which prohibits states from minting their own money. It also reflects a growing distrust of government-backed money.

“The public sees the value in it,” said Republican Rep. Steve Smith, of Maricopa. “This is the type of currency we have had over the history of mankind.”

The bill, which advanced in a 4-2 vote by a House committee Monday, states that gold and silver should be legal currency not subject to tax or regulation as property. The Republican-led Senate gave the bill its blessing in February in a 17-11 partisan vote.

The bill would let people use the precious metals as money as long as businesses agree to take them. If made law, it would take effect in 2014.

Democrats oppose the measure. They say it would be a bureaucratic nightmare because businesses don’t have the equipment to determine the value of gold and silver.

“This should be addressed by the Federal Reserve and not by the state,” said Democratic Rep. Rosanna Gabaldon, of Green Valley.

Keith Weiner, president of the Gold Standard Institute, which supports gold-backed currencies, said he envisions a system where people can pay for goods and services with debit and credit cards backed by gold and silver.

Paper money is a “recipe for worldwide bankruptcy,” Weiner told Arizona lawmakers Monday. “Everybody is going bankrupt on this system so we need a sound and honest money system, such as gold and silver.”

In 2011, Utah became the first state in the country to legalize gold and silver coins as currency. Lawmakers in Minnesota, North Carolina, Idaho, South Carolina, Colorado and other states have debated similar laws in recent years.

Many investors have invested their money in precious metals in recent years as a hedge against the declining value of the dollar. When the value of the dollar declines, gold prices rise.

Gold rose $12, nearly 1 percent, to $1,604.60 per ounce on Monday with news of Europe’s bailout plan for cash-strapped Cyprus. Silver inched slightly higher, up 2.3 cents to $28.874 per ounce.

The dollar was up against the euro, the currency used by 17 European countries, as well as the Japanese yen and the Canadian dollar in February.

Proponents of the switch to gold and silver argue paper money is too vulnerable to government manipulations. When central banks boost the amount of currency in circulation to drive down interest rates, the value of that currency relative to others can decline.

“It’s actually strange to me that we don’t have this already,” said Republican Rep. David Livingston, of Peoria.

Gold-backed money fell out of favor during World War I because the U.S. and many other countries needed to print more cash to pay for the war. In 1971, President Richard Nixon formally abandoned the gold standard.

 .

 E. Arizona’s Hard Currency: How Much Gold Might It Need?
27 Apr 2013, Gold-Eagle.com commentary, contributed by Miguel Perez-Santalla
Pasted from: http://www.gold-eagle.com/editorials_12/perez-santalla042713.html

How much gold & silver might Arizona, Utah and the other states now involved in hard-currency laws come to need…?
ARIZONA is moving to allow gold and silver coin to be used to pay debts, and – effectively – go shopping. This has already been approved in the state of Utah, and there is an assortment of other states that are moving in this direction as well. However, Utah’s gold currency law has been on the books for more than a year. But it has not yet made any headway into how to manage gold and silver being used as currency. Nor will payees be obliged to accept bullion as payment. As a result, many pundits are pooh-poohing Arizona’s gold idea, acting as obstacles to its possible success.
Though I don’t personally believe that physical gold and silver carried around by persons is the future of our country, I do believe that there will be some structural change to come. The small yet actively progressing action in many states is an indicator of the demand for better controls and justification of the value of our money. Concern that the ability to print money without measure will destroy this country is not only just, but is also warranted.

The Federal Reserve – which is not part of the government – is actively in charge of our currency. By injecting capital to the markets to support the banking sector, which irresponsibly lost billions of Dollars in their management of customers’ funds, they have instituted an invisible tax on all citizens of the United States of America. It is no surprise that many people who pay close attention to these matters are up in arms. Especially, since they don’t participate in the windfall of free capital given by the Federal Reserve to the banks as a safety net.
In essence, every time the government issues money freely and gives it to others it is a promissory note on the ability of the populace to pay, it puts us all more in debt. The people of the United States of America are becoming fed up with the free-flowing funds the government regularly gives away as gifts of supposedly humanitarian aid to foreign countries that are not even considered allies. These gifts in the billions of Dollars are on top of expenses needed to support our infrastructure. This creates a mountain of debt that essentially devalues the US Dollar. Our ability to pay is what the citizens are concerned with.
To avoid this many are turning to silver and gold bullion as a reliable asset or marker of value. Of course when you tie up your money in an asset like gold and silver you want the most easily accessible manner to extract that value whenever needed. This is where the effort to make gold and silver accepted as currency is coming from.
So let’s take a look at what would happen if one state such as Arizona were to convert to a precious metal economy. Arizona’s GDP (Gross Domestic Product) was roughly $258 billion at last count. As a proportion of the United States’ entire economy, that’s about 1.7%. Which if we apply that number to the total of currency in circulation and bank deposits (known as M2 by the economists) gives Arizona a money supply of somewhere around $180bn. Using today’s market prices, in gold that would represent 126,000 ounces which is nearly 143% of the current annual world production, and it would represent over 945% of the world’s annual silver production. But of course silver is an extremely bulky and difficult metal to handle. No one thinks the entire state of Arizona would go to 100% metal-backed currency. People will of course remain free to use fiat (backed only by faith) money, and most would likely choose the same fiat Dollars and bank-account credits we already have.
But it’s important to understand that – in the proposals as they stand – people could choose to use metal-based currency for all their in-state transactions. So the potential ceiling on the gold or silver needed is much nearer to 100% of that $180bn than it would be under a formal “Gold Standard”. There, with Dollars redeemable for gold, full gold-backing wasn’t necessary.
The Gold Standard instead used precious metals as a standard of value. The last US gold standard was a 25% basis of gold in fact, before it was repealed in 1968. Applying a classical Gold Standard, and using a 25% basis for gold or silver, Arizona’s cash and bank-deposit holdings would occupy 235% of the world’s annual silver production at current prices, or 36% of the world’s annual gold production.
A more logical decision may be a combination of the two, with a 5% silver and 25% gold funding which would represent 30% annual gold production and 39% silver production. This of course would drive the value of the precious metals much higher, as the market adjusted to accommodate Arizona’s impact on global demand. But as we just saw, Arizona’s proposals go far beyond a Gold Standard, making 100% metal-backed banking and currency a possibility, if highly unlikely. Note, this is only for one state – and one where barely 2% of the US population now live. The numbers involved are already stupendous.

You can imagine what would happen to gold and silver prices if all 18 states currently working on similar “hard currency” laws saw only 10% of their citizens move to holding precious-metals. But that being said, I do not believe at this very moment it is the goal of this legislation. The new legislation deems to allow transactions to be negotiable and settled in full using gold or silver if the parties involved agree to it. Hence you can sell your car for 4 ounces of gold or buy a house for 10,000 ounces of silver. But to do so without an official government structure you would have to in effect be your own central banker and invest your currency into your own private gold and silver reserves. Hence when you go to enter into a transaction the value of your asset should have been protected from any central banking or government debt fiascos. Are currencies backed by gold and silver to be the future? This is possible in some form. Had this system not been tried before? The answer to this is yes. But the methods that were used in the 20th century were complicated by the entry of the Federal Reserve System and other Central Bankers. It was prior to central bank machinations that gold and silver brought stability to the financial markets and the economy in general.

With the entry of the central bank models, including the Federal Reserve, free spending of the people’s money became a possibility and is what eroded the gold standard and derailed a more functional system. Unfortunately most of the spending was used to fund wars. Maybe if wars had to be paid in hard assets they may have ended sooner than later with less loss of human life. However, there are arguments on both sides of the fence. As I read and study more and more about our modern-day banking system it is a miracle that it has not failed sooner. Of course this is my personal belief. This is also what is driving the current activity in the states to bring in some correlation of currency to gold and silver as hard assets. The history of the Federal Reserve, which is not a bank, has the US economy since its inception riddled with negative GDP growth. It is peppered with financial calamities. Its primary function was said to be the stabilization of the economy.
It has failed and has not performed better than any other prior system. I don’t have the answers but I know it doesn’t lie in the Federal Reserve System. This is a centralization of power away from capitalism to a form of modern day socialist tendencies of spending without limits within our system. This indicates to me in the event of a serious economic downturn, which seems to be forthcoming since we already did kick the can down the road as far as we can, we will have serious troubles in the union of these United States of America. But for the time being the general public who are able, are happy buying their gold and silver and keeping it in a safe and secure place for when this situation rears its ugly head. Those that do and are in the states where they have legalized its use as currency stand to have a much more secure environment moving forward as the government is not allowed to take away your money without cause. At least, not at the moment.

bad dollar charts

[Today, we have a price buying opportunity in gold and silver bullion coins. When the SHTF, prices on retail items will rise, inflation will surge, precious metal prices will have risen steadily ahead of events as the global situation deteriorated in ways not understood by the public. When everyone realizes that they need a stable source in which store the value of their rapidly eroding currency (dollars), those precious metal commodities will already be exceptionally expensive in dollar terms. You have to buy the dips while the opportunity exists, as the ancient adage says, “By low. Sell high”. Mr. Larry]

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Prepare with Cash and Equivalents

(Survival Manual/2. Social issues/Prepare with cash and equivalents)

Prepare with Cash and Equivalents

 Our financial system needs growth to sustain it, so that loans can be paid back with interest. Once  peak oil hits, growth will be gone. Economic growth may even be replaced with economic decline. It is not clear our financial system can handle this.


When it becomes serious, you have to lie”, Jean-Claude Juncker, Chairman of the Euro zone finance ministers and the currency union’s key spokesmen, May 2011.

Projection from early 2005
Today’s fiat money system is in joint peril with other paper assets during the upcoming worldwide depression. Unlike the last depression, our Federal Reserve paper money is backed by nothing but
air, hot government air, redeemable in like units. And nearly as cheap as air to give to the body economic, Rubin and Greenspan (Plunge Protection Team) will work like crazy to inflate the bursting economic bubble with huge quantities of this air.
•  I would expect the discount rate to drop to near 0% enticing us to borrow more, refinance again and to help them float the market and the world on the sinking U.S.S. Titanic. [Local bank interest rates 0.1% in 2009-2010, 0.05% during 2011.]
•  But eventually this ploy will become unworkable as we find ourselves mortgaged to the hilt and questioning our ability to repay. (July  2011]
•  Mass bankruptcy will follow and the good faith and credit of the U.S.A. will look to be in real trouble to the rest of the world. [First international bankruptcy 2010-2011]
•  There will be a flight to quality, dollars around the world will be sold at any price as they go through a confidence crisis. This is the reason that the next depression will eventually end up being inflationary
and not deflationary. [Gold started its long-term rapid rise in the summer of 2008. Silver ‘took off’ in April 2010]
•  Money then is a commodity (pretty printed paper, cheap metal slugs, barter items, and/or precious metal coins) that you can use in trade for other commodities you would like. You choose each day what you will trade your labor or stuff for, to use as money.  You are wealthy only if you own and control the means to sustain life for yourself and possess items that can be traded with others.
•  Paper assets are about to be destroyed in the upcoming years during a stock market crash. These overvalued pieces of colorful paper, with the engraved images of our national forefathers, will not feed or take care of you because nobody will be willing to trade anything worthwhile for them. These include Stocks, Bonds and any other debt based paper asset like Federal Reserve Notes and your bank account valued in Federal Reserve Notes.
Additionally copper-clad coins will eventually be viewed for what they are –  Slugs – imitations of the real thing. What then will be used as money?

Four Characteristics of Money
1)  It must be divisible.
2)  It must have high value in relation to its volume and  weight.
3)  There must be widespread recognizability.
4)  It must have transportability.
Gold and silver coins satisfy all these requirements.

A.  How much and what kind of money should I own?
To prepare for the  coming depression please consider the following:

1)  Newer Coins
You will want to have on hand a significant amount of pennies, nickels and copper-clad dimes and quarters.  This is for when limits on bank withdraws begin and cash is scarce. You do not want to use your gold and silver coins then, they are to be used when things start leveling out and the economy restarts. Most people will not initially know the value of gold and silver. Therefore, use the copper-clads until the populace gets educated. If you are on a budget, start by collecting a few hundred dollars face value. A wealthy individual could have thousands of dollars face value of copper-clad coins
tucked away.

2)  Paper Money
You will want to start by having enough paper cash money on hand to cover at least one month’s
personal expenses: mortgage payments, car and truck, taxes, utilities, household supplies, etc. If you are well enough off I would recommend that you have much more. According to the experts you must have cash on hand, not in the bank, to satisfy your obligations or you may be forced to forfeit your assets. Also, as the stock market crashes and banks suspend withdraws, you will be able for a  short time to buy pennies on the dollar. Additionally, banking services will be non-existent and checks, credit cards, etc. will be useless. An assortment of $1, $5, $10 and $20 bills is recommended (it may be difficult to get change for larger bills). The amount you feel comfortable storing is up to you. Keep the cash where you can easily get your hands on it.
You may not have access to your safe deposit box because of an extended bank holiday.

3)  The Transition Period Between Fiat Money To Real Money
Eventually, the liquidity crises, during and after the bank limits will pass, and paper dollars will be devalued (they become worthless), the federal government will begin taking over the failed banks, they will make good on the FDIC and FSLIC government bank guaranty and other government commitments by printing new larger denomination paper money.
$500, $1,000, $5,000 and then $10,000 bills will be reissued by the federal reserve in huge quantities, and/or they will circulate a new type of currency. Copper-clad coins, and small bills will become worthless, unless you have wheel-barrels full of them. Run-away Inflation. This will be a hyper-inflationary period for people holding paper assets, paper money and copper-clad coins. When you get wind of the coming currency devaluation dump your paper and copper-clad money for anything of real value. This is the time to already have your silver, gold and any other items you will want and to barter with.
Look for a new National Value Added Tax (V.A.T.) on all purchases and services. Government-controlled rationing will be setup and the Black Market will be in operation.

4)  Silver Coin
Now the importance of having gold and silver coin is evident after seeing the stock market crash scenario and the destruction of paper assets. The only money that is real is that which has intrinsic value. Currency like gold and silver money will be the only real store of money value. The wealthy individuals to emerge from the coming stock market crash and depression that follows, will be the ones who have preserved their wealth during the destruction of paper assets. Face it, after having a roof over your head, food to eat and clothes to wear, you will be wealthy only if you have things of real value to others and if you can turn that into opportunity for yourself. Barter any commodity that you can but the two commodities historically that always become real money and a reserve of value are gold and silver.

You will want now to buy as much silver as you can, before the VAT becomes law, and while the rest of the world is chasing after paper assets. Today, silver is a good value compared to how it will appreciate. Although you will want to acquire gold, silver is better suited for small exchanges and will be used more for the day-to-day purchases. Get plenty of junk silver, pre-1964 dimes, quarters and half dollars by the bag ($1000. face value), 1/2 bag or smaller amounts. You are basically getting old U.S. silver coins that have been picked through to remove the rare pieces. The price is currently about 5 times the face value. Old silver dollars are much more expensive costing about 30.88per dollar (based on 39.90 spot price of silver, 29 July 2011). Your best value for silver dollars is to get newly-minted US American Eagle silver dollars, the US mint has been minting the new silver coin since 1986 and they are about $44.60 each (29 July 2011) and contain 1 troy ounce of 99.9% silver, this is about a 0.3 ounce more silver than carried by the old silver dollars (0 .714 troy oz.).
All these coins contain a specific amount of silver and are recognized by the whole world as to their size and weight. U.S. coins are better than other coins or bullion because of their recognizability, so don’t hold anything, but U.S. gold and silver coins.

5)  Gold Coin
The best value in U.S. gold coins are the ones minted by the U.S. Government. US American Gold Eagle coins are currently minted, ranging from about $180, May 2011, for the 1/10 oz. coins to about $1,627, July 2011, for the 1 oz. coins. There are also 1/4 oz. and 1/2 oz. coins, but I prefer either the 1/10 oz. or the 1 oz. coins.
•  1/10 oz. gold coins should be used to barter on small items; items that are larger than what you can buy with your 1 ounce silver coins.  The 1/10 oz. coin is ‘valued/stamped’ at $5.00 and would be an easy way to buy something worth a fraction of  the 1 oz. of gold.
•  The 1/4 oz. gold coins are improperly valued at $428, May 2011 because of their weight;  the 1/2 coin is not a good value because of its increased commission.
•  The 1 oz. coin is the best way to store large quantities of gold and is the most cost-effective method.
Each coin contains 1 oz of 91.6 pure gold in troy ounces plus a small amount of hardening metal to strengthen the coin, each coin weighs slightly more than its stated value.

After socking away new copper-clad coins, paper money and silver coin, you will want to buy as much gold coin as possible. You will preserve your wealth through the coming paper asset destruction and will emerge as a rich individual.

My advice
(Note: Do your own research and come to decisions that fit your personal circumstance. I’m not a qualified financial advisor. Mr. Larry)
If you are financially capable of storing (your long-term ‘savings account’) gold  and silver, you should have different types of gold and silver holdings. I would suggest starting your bullion holdings with cash and junk silver, then progressing to American Eagle silver and gold bullion coins.
Besides being  the historical standard for money, silver and gold are also barter commodities.
You will want to have the right denominations/weights of silver and gold coin to transact business. Which silver or gold coin you will use, depends on the cost, situation and who you are working with. People familiar  with the old ‘junk silver’ coins would rather trade with them than with bullion coins. Some people will see your US gold or silver Eagles and feel secure that they can count on that coin to be what it  says it is and will be more willing to make a trade with you.

During shortages and government controlled rationing, a store keeper may have a limited supply of a desperately needed item like medicine that he can only sell at the government set price. Who will get
this item? The person next to you with a 50 dollar bill of questionable value, or  you with 50 dollars in silver or gold coin – the store keeper or trader will recognize that your coin has a much higher intrinsic value. Of course you will get the medicine; however, if you only had an unrecognized bullion coin or a ‘junk silver’ coin from another country you may not.

Buy as much junk silver and American eagles as you have the means for. The bullion coins will preserve your wealth through to the other side of the collapse of paper assets and you will have the means to get going financially.
Old junk silver coins are meant for dealing with local stores for small transactions during and after the upcoming paper asset collapse. Deciding what and how much to store all depends on your situation, will you have the desired money medium for the opportunity/life style you are pursuing?

You only want enough cash on hand to sustain yourself in the event of bank withdraw limitations, and until worldwide dollar confidence crashes and the world dumps dollars on the market in a race
to get any value they can from it. Other than a pile of small bills to see you through a crisis, cash is a bad thing to hold because of possible hyper-inflation and the fact that it is backed by practically nothing.
Obviously the bulk of your investment money placed in a good fund tied to the performance of the stock market is the best place to be right now; long if you see the market rising and a ‘short’ ETF (DXD and others) if you see a decline coming.

.

B.  Forces which cause gold and silver to rise in value.
•  Bank Failures
•  Rising inflation or the expectation of rising inflation
•  Devaluation of the dollar
•  Other currency-related crises
•  Increased Industrial and Investment demand for gold
•  Price increase in other commodities
•  Stock and bond market collapse
•  A New World War
•  International tensions

Gold serves as an increased hedge, though volatile in the short-term, against the erosion of the purchasing power of paper money. This is why you want to hold your portable gold coins for 3 – 7
years on the average. However, if a deal or situation presents itself that is extremely advantageous such as gold appreciating in value to quadruple or more what you paid for it–consider selling– you can always buy property with the proceeds.

Just before the peak of another depression, gold, is estimated to possibly rise to $3000 – $6000 an ounce. And if the President bans gold altogether; then places the U.S. back on the Gold Standard—as it is felt in many of the bearish financial newsletters, gold could a lot higher!
Spot silver prices are closely  connected to the same factors as those driving gold; however, because of  the low supply of available silver, it may become nearly as valuable as Gold.

You have five things working to drive the price of gold up:
1.  Increasing Gold Lease Contracts
2.  Increasing Consumer Demand- in China and India, as well as Europe.
3.  Gold Investors Needing Gold- international banks
4.  IMF: “By the IMF’s [International Monetary Fund] own documentation, the international banking community is trying to create a new global currency that will be backed by gold valued at between $3,000 to $5,000 per ounce.” –The Economic Outlook; Vol. 7. #1. January 1998.
5. Deflation: “To avoid outright economic collapse-Asian governments are devaluing currencies. Currency devaluation is a hidden form of hyper-inflation–the last desperate act before outright economic collapse. How do you protect yourself from currency devaluation? Gold &  silver.”
–The Economic Outlook; Vol. 7. #1. January 1998.

The following table provides my personal thoughts on the way to split up assets in order to cover most contingencies. I recommend you set aside the cash mentioned in the top half of the table first, and when this is done, do what you can to develop the funds to buy some combination of the bullion listed below.

Denomination(to
hold)
Number to have on hand(minimum) Item cost
(each)
Investment
in each denomination
$50 bills none
$20 bills 200 $20 $4,000
$10 bills 50 $10 $500
$5 bills 50 $5 $250
$1 bills 300 $1 $300
$1 coin $1 none
Quarter (25¢)
coin
10 rolls $10 $100
Dime (10¢) coin 10 rolls $5 $50
Nickel (5¢) coin 10 rolls $2 $20
Penny (1¢) coin 10 rolls $.50 $5
Currency   & coin• $5,150
Pre 1965 ‘junk -90% silver coins $200 face
value
$2844 $2844
Silver Eagle 1 oz 500 ea $19.87 $9,935
Bullion bar, 100 oz none
Gold Eagle 1/10 oz 20 ea $138 $2,760
Gold Eagle 1 oz 8 ea $1295 $10,360
Bullion $25,899
Currency, Coin and Bullion ‘On Hand’ $31,049

Table above updated on 16 Oct 2014

When faced with hyperinflation or other major calamities, you should have a pre determined  list of items to purchase ‘at the last-minute’ and/or items to invest your  cash in, things that will survive the
currency collapse or become more valuable in the post disaster period. When the window of opportunity is seen about to close, you must immediately transfer the bulk of your extra cash into some combination of ‘commodities’, such as; food, land, housing, other real estate, and barter items.

The totals shown in the table above are approximately the current annual gross wage of a mid level
US worker. With slightly reduced circumstances, this sum will provide 1) Four to five years of  supplemental income, or 2) in a severe depression it would provide about two years worth of 50% pre-crisis  income, or 3)  in a catastrophe, provide one full years income.

Coupled with your food  and water storage plan, as discussed in, 1) Survival Guide/ Food&Water /Develop a Survival Food List, and in 2) Survival Guide/Warehouse/Food, you should have the capacity to weather a serious dislocation.
With the adoption of other support systems, discussed and enumerated in Warehouse/… your resilience and survivability  should see you through most of the abrupt physical catastrophes that may impact a region or a national or global economic collapse.

While watching the short term, keep in mind that there are very long term cycles of human conduct and behavior toward one another, in our exploitive relationship with  the natural environment, our  modern civilizations energy use and resultant population numbers, as well as environmental ‘black swans’. The interplay of flux and flow between these relationships, trends and surprise events show themselves in the changing levels of human prosperity.

During the late 20th Century the world was very prosperous, we all poured our wealth into entertaining material goods, desiring ‘thing’s more than the traditional stores of value, gold and silver, hence the price of silver was the cheapest it has been in almost 700 years (Google ‘650  Years of Silver Prices’ or see http://goldinfo.net/silver600.html)

On 19 April 2011, the spot price of silver reached $43.07 and began an overdue correction. As technology developed the steam engine and later, our petroleum-based civilization with electricity, mining technology brought about an easier extraction of minerals. Now, as we moving through the brief peak oil plateau period, our open-pit mines have grown huge and underground mines extend for miles.
There are no more easy surface ‘finds’ of most of our civilizations industrial mining needs. When our oil supply declines there will be a diminished amount of minerals extracted from mines and at higher real prices (above what ever inflation will be). There will be less because the huge quantity of almost free labor provided by oil driven machinery will be declining, but also because we will have already extracted the bulk of the available resources.
The coming extended rise in silver prices will reflect not only scarcity, but difficulty and cost of extraction. The same shadow will fall across
all mined minerals, lumber, paper products, aluminum, rare earths and uranium. Costs will rise rapidly during the coming few years irrespective of whether there is inflation or deflation. The things we have grown accustomed to around the turn of the 21st Century will become increasingly difficult to obtain at ‘reasonable’ prices, the cost of ‘things’ will go up in real terms.
The decade from 2011 to 2021 will be wild.

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Setting up a Mobile Kitchen

June 2016, by Mr. Larry at 4dtraveler.net

cook on deckRecently, I was recalling back a few years earlier,  to  when Hurricane Ike came through my home town and knocked out the electric power. I remembered setting up the families Coleman propane camp stove outside on the deck, being aware of the toxic carbon monoxide fumes that would have accumulated from cooking inside.

We adults huddled over the camp stove cooking our meals. The two burner stove sat on a metal planter stand, while our work space consisted of a small wooden box about 18 inches long. We heated water for our traditional morning’s cup of coffee, fried eggs, warmed ‘microwave bacon’ in a skillet and browned ‘toast’;  everything was pretty much eaten cold.

Later in the day, we boiled canned soup, had peanut butter and honey sandwiches, and heated Dinty Moore stews and other canned meals for supper.

Often, especially in the early mornings, while my partner cooked, I ran back and forth between kitchen and deck, a flashlight in one hand, bringing out a jar of dehydrated coffee, then our silverware and plates, peanut butter, salt and pepper, jam, peanut butter, the bread….

Every meal required items be brought out of the house and returned, each one or two items meant a separate trip through the house, into the kitchen, then back out to the deck. It was exasperatingly inefficient for the two of us; there was no organization, nothing was handy. We had the physical supplies, but the flow of materials needed to prepare emergency meals, ‘on the fly’  had never been thought out.

We had everything needed in the house to deal with an emergency meal, but for what turned into almost a week long power outage, the items needed to process the food were never really ‘handily available’.

Think about it. Every item used in the kitchen to process a typical meal is handy: the  knife, fork and spoon in a drawer or on the cutting block, a pot or pan in the lower cupboard, a bowl, plate cup or glass in the higher cupboard, salt and pepper shakers are on the kitchen table, the spice tray/rack  is here, paper towels or dish cloth are near by…Everything is handy, just a step or two in any direction and the item is put in use, then left sitting on the sink counter for further use or washing.

But when you set up an emergency stove outside on the deck, balcony or in the yard–non of your  food preparation and cooking  paraphernalia are available. In order to cook anywhere other than in your dedicated kitchen space, you’ll need to move a lot of small specialty items back and forth to and from the worksite .

After the storm, and as the months passed, the realization that there wasn’t a proper sizedbench surface to cook and work on, prompted me to make a six foot long bench (See image). The bench would be for guests and ourselves to sit on when  visiting, but it would double as a work surface for our: propane stove,  propane oven,  canned fuel hot plate (for the coffee),  other food preparation items  and as a workspace.

Although I didn’t spend much time thinking about the situation during daily activities, what continued to eluded me, was how to avoid the disorganized ‘running back and forth’ for food prep items.

I recalled that when the electric power was out, it was a slightly confusing and disorienting time, due to a) the disruption to our daily schedules and activities, b) unaccustomed temperatures, and adding to the problem, was c) trying to assemble the needed cooking items in an efficient and handy way to process our meals and eat in, d) an attempt to retain a low stress environment.

One day recently, I watched a woman in a You Tube video discuss having made up a small mobile kitchen for her thermal cooker, her idea provided a catalyst for me.

I re-watched the ‘mobile kitchen’ portion of the video again, stopping the clip every couple seconds to write up and expand on her list.

For the next couple of weeks, I read articles on the Web about what food prep items people typically  take camping, backpacking, and have on hand for emergencies.

The list grew.

The concept expanded beyond utensils one would want handy for a meal cooked in a ‘thermal cooker’, as the video showed, to cover most cooking situations. The updated Mobile Kitchen concept included: cooking with pot and pans, frying, a variety of food types being processed, and had to handle several consecutive meals prepared under emergency conditions.

I examined the cookware needed to prepare meals for 3-4 persons and ordered ALOCS 3-4 person outdoor cooking pot set, (Amazon.com, see below).

I studied common spices and made a list from discussions on YouTube;; camping, emergency web discussion groups. A master list was made of the most widely suggested spices to have in an outdoor/emergency situation, outliers were removed and some personal favorites added.

In order to have a small amount of multiple spices handy for short term cooking, I ordered some 1 oz and 2 oz dry storage plastic jars with snap lids, and several empty 3.4 oz TSA approved liquid containers (all very cheap from Amazon.com).

Several cooking adjuncts were added to the spice list, including: vinegar, cooking oil and honey, which went in the 3.4 oz liquid containers.

I found design ideas for spice labels on the Internet, then made my own using existing sheets of Avery envelope label blanks. Tape would have worked as well for labeling. Likewise, is only a few spices were being gathered for the mobile kitchen, one could simply add an entire spice bottle or tin.

Most of the items needed were bought at Wal-Mart.

Finally, I took a general measurement of everything while it was roughly stacked,  to determine the approximate size of containers needed to pack it in. The boxes needed were found at my local Wal-Mart superstore. Everything was subsequently put together and photographed  and is listed below.
The result is a broad capability, Mobile Kitchen.

I recommend using a butane stove for indoor cooking. Using much less toxic butane fuel you can set the stove right on your current (electric) kitchen stove top or cook on the sink counter top, as  you wish. Let the ‘chimney effect’ draw what little fumes there are up the  kitchen exhaust vent, or crack a window briefly when cooking on the sink.

The images below show my Mobile Kitchen contents, butane stove, cookware and spices.
I hope this article helps with your preps.
God Bless America.

The Mobile Kitchen

The Mobile Kitchen was developed as a means to efficiently bring cooking and food preparation paraphernalia to a central location, for cooking in an emergency situation. It would work for preparing food: Indoors, on a porch, deck, patio, picnic table, curbside or for ‘car camping’. It is not designed as a long term survival kitchen, but could easily be expanded for longer term needs.

MK topPreparation apparatus tub components (At left in the image above)

MK sideCooking & Eating utensils tub components (At right in the image above)

Preparation apparatus tub
2 ea. Sterilite 27 qt latch box, clear plastic, 12”W x 13”H x 16”L, ~$5.50, Walmart
1 roll paper towels
1 box quart Slider baggies, 20 ct
Cloth items in gallon baggie: kitchen hand towel, dish towel, dish cloth, hot pad, 2 clothes pins, 10 ft cordage.
Spice box: (Tupperware type muffin storage container), various spices see inventory below.
Whisk
Bowl scraper
Small grater
Plastic scoop, mixing spoon, slotted spoon, and spatula. ($0.88 ea. Walmart)
Strainer
1 measuring cup, plastic
Measuring cup set, 4 pc: 1/4 to 1 cup.
Cutting board, red, 8.5″x11″ plastic
Can opener
Peeler
Digital food/ liquid thermometer
Kitchen scissors
Paring and Utility knife
Sanitizing: Gallon baggie containing: 9 oz Dawn dish soap, 7.5 oz bottle hand soap, Scotch Brite scrub sponge (cut in half).
Cooking & Eating utensils tub
Sterilite 27 qt latch box, clear plastic, 12”W x 13”H x 16”L ~$5.50, Walmart
2 each, 12 oz foam insulated coffee mugs
Faberware coffee percolator, stainless steel, Yosemite, 8 cup, $20 Amazon
2 Stainless steel round, divided dinner plates, 11″ dia., $5.50 ea Amazon.
2 each 1/2 quart stainless steel bowls, 2.5″H x 5.5″ dia., $5 ea, Amazon
2 sets table ware: stainless steel knife, fork, sml and lge spoons.
Box of 48 pc, 16 sets of plastic knife fork and spoons.
Baggie with three sm. boxes of (96) matches.
ALOCS 3-4 person outdoor cooking pot set, rigid aluminum, includes: Kettle = 3.3 cups (2 large cups of coffee)Small pot = 5 cups (1 quart, plus)Large pot = 9 cup (2 quarts, plus)7.5″ fry panSm lid fits sm pot,Lge lid fits lge pot and fry pan.$47 Amazon, see image below.
Other Items
GasOne GS3700 butane stove, for indoor/outdoor use, comes in a hard shell, plastic carry case. $24 Amazon.

 ..

Notes:
> Neither of the two Sterilite totes are full when the kit is assembled, leaving room for situation specific expansion.
> Most of the common items in the Mobile Kitchen were bought in Walmart’s Kitchen and Houseware Depts. A few of the items cost $0.88 each, other’s $1.00 and a couple up to $3.50.

Related videos:
> GasOne butane stove: https://www.youtube.com/watch?v=OI0DcqUDFhg
> ALOCS SW-C06S cookware set. This video is not in English, but does show the relative size, volumes and use of the equipment: https://www.youtube.com/watch?v=UvG2zycRO5c
.

 ALOCS cookware
ALOCS 3-4 person cookware

 GasOne GS3700 butane stoveGasOne GS3700 butane stove

 MK spice boxSpice Box

MK spices
Spice containers carried in the spice box: Baking powder, Bouillon Cubes, Cayenne Pepper, Chili Powder, Cinnamon, Cooking Oil, Curry Powder, Garlic Powder, Honey, Italian Seasoning, Dry Onion Flakes, Onion Powder, Black Pepper, Red Pepper Flakes, Poultry Seasoning, Salt, Sugar, Vinegar. (Volumes: About 1 Tbsp for dry goods and 3 oz liquids)

Spice Notes:
> The great thing about spices is that they never actually spoil. But over time, spices will lose their potency and not flavor your food as intended and you may need to experiment on how much more spice needs to be added.
> As a general rule, whole spices will stay fresh for about 3-4 years, ground spices for about 2-3 years and dried herbs for 1-3 years.
> Spices that have been in the pantry for 5 years won’t make you sick, but will just lose their zest.  The best way to store spices is in air tight containers, preferably a dark container and in cool spaces away from moisture such as a stove or sink.  Even in doing this, most of your ground spices only last about 2 years.

 Faberware 8 cup coffee percolatorFaberware 8 cup coffee percolator

  MK  packed1Mobile Kitchen and butane stove ready for service

Be safe, be well.
Mr.Larry

 

 

 

 

 

 

 

 

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