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Friday, March 20, 2009

How To Survive A Depression

How to survive economic collapse

If This Isn't Financial Armageddon Then I Don't Know What is

This is huge!

I don't even know where to begin, except to say…Historians will mark down yesterday, March 18, 2009, as the day the Federal Reserve thrust a dagger into the heart of the U.S. dollar. The dollar is now lying on its death bed bleeding to death with the blessings of the Fed doctors watching over it.

Yesterday's Fed announcement that they would buy $300 Billion in U.S. Treasury Bonds and over $1 Trillion in government held mortgage backed securities, should remove all doubt as to the fate of the dollar. The announcement means the U.S. government is monetizing its own debt through the Federal Reserve System by simply printing paper dollars to pay its own debts.

Normally, when the government borrows money by issuing bonds, foreign countries put up the money for the bonds, expecting a return on their money with interest. However, because our government has created so much debt (more than the combined worth of our country's assets) no one is willing any longer to buy Treasury Bonds. That is because we (the U.S.A.) have become the world's largest debtor nation, and are at big risk that we could ever repay our debt. The world fears the U.S. government will default on all its debts. Egad!!!

So, to keep the system afloat, our government is now printing its own money to pay its own debt. Isn't this wonderful? The U.S.A. from now on whenever it needs more money will just print more paper dollars. Gee, don't you wish you could do that…just print money?

Here's what all of this means to you and I.

First, get ready for a flood of paper dollars. The theory is by flooding the country with paper money, it will stave off a depression and put more people back to work. That is the theory, but no one really knows if in fact the theory works, or for how long.

Secondly, as ever increasing amounts of dollars begin to make the rounds through the banks, businesses and into people's pockets, everything we buy will cost more. At first, it will not be too noticeable. But about 12 months from now, expect prices on everything you buy to begin inflating in price up to as much as 50% and more…much more!

Hard assets, like silver and gold will soar in price as stated in dollars.

The dollar, which devalued 250 Basis Points (a huge amount) against foreign currencies after yesterday's announcement, will continue to lose value. Stock prices will move upward as will 401K's and other paper investments, that is at least for the short term. After a time, the stock market will tumble down to maybe as low as 500 in the Dow Jones Industrials.

In order to save the world from total economic collapse, a new currency will replace the dollar. Those left holding dollars and any paper assets like bonds, mutual funds, etc. will see their value go to zero.

Those who have studied the Fed and our worthless dollar, have wondered how the final chapter in the death of the dollar will unfold. There were several possibilities. However, with yesterday's announcement, how the last chapter will read is now known…Hyperinflate the dollar (print money like mad) in hopes of paying off an impossible, unpayable debt.

What you should do

Our own government is out of control. Everything it does to stop a depression only makes the situation worse.

Get informed and think for yourself. Think through what will happen as the economy worsens. Take action to protect yourself and family. Read this daily Blog. Our sole purpose is to give you helpful information on how to survive a depression. Talk with your family and make a plan. Think about food, water, home security, finances, medicine, etc. and begin a program to insure you can survive a total collapse of the dollar. Discuss the dollar collapse with your neighbors, Work together as much as you can and be there for one another.

Yesterday's Fed announcement is historic. It should be to you as the sound of the starter's gun in a race. Those who refuse to run, those who remain milling around the start line, are fools to ignore the loud and clear sound of the gun. They will all be the losers.

Prepare for the worst, and pray for the best.
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Economic data tells us that food supplies are down nearly 50% from over a year ago. The problem behind this growing food shortage lies with the financial crisis in the banks. Few banks have the money or are willing to loan large factory farms the money needed to buy fertilizer, irrigated water, and other necessities related to food production. This forces more and more large food producers to not plant new crops. Their land lies idle.

On the consumer side, the food shortage means less food available in stores in the coming months. How severe the food shortage will become, and for how much longer the financial crisis will continue is anyone's guess.

Most of us do not see a food shortage or have a concern when we shop for groceries. All we are concerned over is increasing food prices. After all, grocery store shelves are constantly being restocked, even as we shop. So we do not see or have a concern over supposed food shortages. If we have any complaints, it is that food keeps getting more expensive taking more and more of our money.

What we fail to understand is why food keeps getting more expensive. Sure there is inflation, but inflation is only part of the cause. The primary cause for increasing food prices has to do with supply and demand. There is less food available and more demand. If there were more food to meet growing demand, food prices would stabilize. But just the opposite is happening.

If it comes down to it, no matter what the news reports say, it will not be until store shelves are suddenly seen empty of canned goods and fresh produce that people will realize the situation and panic.

We seem to be in the perfect storm that is bringing down so much of what we take for granted. Never in a thousand years could this happen we reason. And yet, in disbelief, it is happening before our very eyes.

Do you realize our standard of living depends on: 1. A worthless piece of paper that requires an equal amount of debt to be created, and 2. A system of credit no longer able to sustain itself? Our generation is now bearing the fruit of this unsound monetary system.

Our Great, Great Grandparents would laugh over our unsustainable and foolish way of life. As with the generations before them, their greatest wealth was not money but plant seeds. They understood the basics of life we have long forgotten. For if you possess plant seeds, you hold insurance against an unknown future.

There are some of us, though our number is small, who appreciate the old ways, and have foresight to understand the meaning of unfolding events. We are the people who are preparing to survive a great and terrible depression. Part of our preparation includes stocking and storing plant seed. We are growing our own vegetables and preserving the food we produce.

Consider this: What would you give for a packet of vegetable seeds, if people around you were eating anything they could find to satisfy their hunger? If you had seed set aside for yourself and family in such a situation, at what price would you be willing to sell part of them???

I hope nothing like that ever comes to pass. But if it did, plant seeds would once again be like having money in the bank. They would become as precious as gold.

The first rule of life is to have food to eat. The second rule of life is not to forget rule number one! That means if food disappears from store shelves you still have to feed yourself and family. Betting your life that food will always be in stores during the perfect economic storm we are in is fool hardy. Better to buy some seed and plant a garden to secure you have food to eat.


How to survive a depression

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