- Make a plan for how to survive a total economic collapse. List your debts and assets. How quickly can you pay down your debt, while still purchasing necessary supplies? Your goals should include no debt and the procurement and storage of valuable assets. Your preparation timetable should be as short as possible.
- Pay off debt and avoid new debt by paying with cash instead of credit cards. Concentrate on paying off high-interest debt, loans with adjustable rates and unsecured debts first. Sell expensive vehicles that have loans to pay off what you owe and buy cheaper replacement vehicles using cash. To survive a total economic collapse, you need to have assets, not liabilities.
- Convert your liquid savings into silver and gold. If the dollar collapses, having precious metals will preserve your money, and precious metals can be used as currency or exchanged for a currency with value, such as Swiss francs. As the dollar continues to lose value, silver dollars preserve their value or go up in value, thus protecting your assets in the event of a economic recession, allowing you to financially survive a recession or depression.
- Re-evaluate your stocks and mutual funds. To financially survive a total economic collapse, your investments must be secure. Consider putting some of your stocks into gold or opening a precious metals IRA. Research stocks that will survive a total economic collapse.
- Purchase goods and valuables such as guns for hunting and personal protection, and basic food supplies such as whole grains and legumes, which are easy to store. Invest in water purification bottles and tablets, and keep some bottled water on hand to meet immediate needs in the event of a shortage. All of these will make it more possible to survive a total economic collapse in the event of panic-induced disaster.
- Prepare a first aid kit, sewing kit and other practical necessities of daily life to aid in survival of a total economic collapse. These are good things to have on hand anyway, for regular daily life as well as for emergencies.
- Get to know your neighbors and build a community wherever you are. In the event of total economic collapse, life will become very local and survival will depend on working together with others, beginning with families.
- Grow some of your own food and raise animals for meat, if possible. Chickens and rabbits are small and easy to tend. Chickens provide eggs as well as meat and are excellent sources of protein and fat, both of which critical for survival. In economic downturns such as a recession or depression, being able to produce food is a important skill to have.
- Learn how to barter, and stock items to trade. Think about necessities (wool blankets, soap, boots, duct tape, ammunition) as well as luxuries (chocolate,
tobacco, alcohol). Useful tools will be more valuable than money if there is a currency collapse. Useful barter items will be helpful to have on hand as you prepare to survive an economic collapse.
Sunday, June 17, 2012
eHOW: How to Survive Total Economic Collapse
Friday, June 15, 2012
Why you should BUY GOLD & SILVER NOW
Gold is going higher and why you should get in the game
SAN JOSE, Costa Rica (MarketWatch) — Gold has been rising for the past 10 years and is hitting new highs at this writing — a roughly 470% increase.
Few investments can make that claim. The only one we know of is silver, which has soared 790% over the last eight years, and now at a 31 year high. Gold hits new record; silver at 31-year high.
This leads some to believe that these markets are in a bubble, but we don’t agree. We still recommend buying gold and silver as they will likely remain top performers, rising even further in the years ahead.
Why? There are several fundamental reasons for this. Here’s what’s happening
Inflation growing
Inflation is starting to pick up. It’s set to intensify and this will be an important factor fueling these trends.
Most people think of inflation as rising prices. And while it does push prices higher, it’s not the cause of inflation.
The direct cause is excessive money creation. And the fact is, more money has been created over the past couple of years than at any time in U.S. history. So the cause has already taken place. The effect is just getting started.
We know that commodity prices have been moving up rapidly, especially food and oil prices. As a result, producer prices have been picking up a lot of momentum over the past four months. This month, however, was a real eye opener.
Producer prices soared at an annualized rate of 19% due to the biggest jump in food prices in more than 36 years. Food prices alone surged an unbelievable 47% annualized in their largest rise since 1974.
This is already equivalent to the inflationary 1970s and, unfortunately, no one knows how this will all unfold. The point is, we’re in uncharted territory.
Government spending gone wild
Government spending has created the biggest debt hole ever. In fact, the government is spending so much money, it can no longer rely on foreign lending as a last resort. So the Fed has stepped in to fill the void. It’s been buying massive quantities of U.S. government bonds, essentially funding this unprecedented spending, and creating money out of thin air to do so.
Meanwhile, the latest monthly deficit hit $223 billion, the biggest in recorded history. This comes at a high price, and that’s inflation. Remember, too much money means a weaker dollar. That is, it takes more dollars to buy things, which drives up prices.
This is not anything new. It’s happened over and over in many countries for thousands of years, and it’s happening again.
That’s why gold and silver are rising, and why they’ll continue to move higher. These metals are the ultimate inflation hedge and safe haven in times of uncertainty. It could be geopolitical or monetary uncertainty and we’re now seeing both.
Investors are nervous about the unfolding events in the Middle East. They’re also nervous about the monetary situation. So increasingly, they’re turning to gold and silver.
Demand continues to grow
Another equally important positive is that demand is growing by leaps and bounds, especially in the emerging countries. As hundreds of millions of people worldwide become more affluent, they’re buying gold, as well as other commodities.
International central banks have also become big buyers, further increasing demand. Rather than just holding cash in deteriorating dollars, they’re buying more gold for their reserves. They see what’s happening on the world stage and they obviously don’t like it.
The bottom line is that if inflation keeps picking up, then it will push gold and silver prices higher than most people expect.
What to do?
Protect yourself and buy some gold and silver. But since these markets have already risen strongly over the past couple of years, it would be normal to see some weakness in the months ahead. Your best bet, therefore, would be to average into these markets. Buy a little now, and buy more over the next few months.
You can buy physical gold and silver from a respected coin dealer. If you do, then take delivery and keep your metals stored in a safe place.
Even easier, you can also buy the the exchange-traded funds for gold, such as the SPDR Gold Trust (US:GLD) and the iShares Silver Trust (US:SLV) for silver. These move in tandem with gold and silver and they too are good options.
Mary Anne & Pamela Aden are well known analysts and editors of The Aden Forecast, a market newsletter named 2010 Letter of the Yearby MarketWatch’s Peter Brimelow, which provides specific forecasts and recommendations on gold, stocks, interest rates and the other major markets.(www.adenforecast.com)
Friday, June 8, 2012
KITCO NEWS: Comex Gold Extends Sharp Losses in Wake of Bernanke; Move Below $1,600 Deflates Bulls
Comex gold futures prices have extended already sharp losses in late-morning trading Thursday and have dropped below what was psychological support at the $1,600.00 level. The yellow metal has dropped sharply in the aftermath of Federal Reserve Chairman Ben Bernanke's speech to the Joint Economic Committee of the U.S. Congress. Bernanke said the U.S. is facing economic headwinds, especially due to the European Union debt crisis, but offered up no specifics on any fresh monetary stimulus package to promote more economic growth. The restrained tone of Bernanke's speech disappointed gold market bulls who wanted immediate gratification on economic stimulus. However, Bernanke at this time holding his cards close to his vest on the matter did not surprise most market watchers--many of whom still reckon the Fed will at some point down the road provide fresh monetary policy easing. The gold market bulls did lose their newfound upside near-term technical momentum with Thursday's sharp losses. August gold last traded down $44.00 an ounce at $1,589.00.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Friday, June 1, 2012
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