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The Perfect Storm Approaches

I don’t like being the bearer of bad news, but a storm is coming unlike anything we’ve seen in a very long time. In fact, most of us have never seen something like this in our lifetimes. What is it, you ask? The perfect storm of epic proportions that will change how every single American lives. This isn’t a ‘chicken little’ proclamation; this is simply following the logic. All things have some measure of truth to it and the key is to figure out what makes the most fundamental sense.

Ask yourself a few questions:

What did you think about the news on Detroit’s bankruptcy? Did you think, “This could never happen in my city”? Are you an individual receiving pension funds in your retirement from a state or city agency? — fact is, YOU ARE MORE VULNERABLE THAN YOU KNOW. Although many municipalities are not legally allowed to declare bankruptcy, it doesn’t mean laws can’t be put into place changing that. The inclusion of pensions in municipal bankruptcy proceedings will essentially give ALL cities around the country — including the Federal government — the precedent to decrease your pensions and Social Security disbursements. Many people have no backup to their pensions — they simply think it is never going to affect them. This lull of complacency has to stop, otherwise we will have a massive number of retirees age 65+ with NO means of supporting themselves, and it will be in an environment where entitlements are few and far between. If you have parents or grandparents in this age range in similar situations, PLEASE SPEAK WITH THEM ABOUT THEIR OPTIONS. They need some alternate means to secure themselves in the event their pension or social security disbursements slow to a trickle.

How did you feel about the bombings in Boston earlier this year? How comfortable would you have been if you were unceremoniously kicked out of your home with no notice at gunpoint? Bostonians that went through it can certainly attest to that craziness. Who is to say that in the event of another similar event that such a thing couldn’t occur again? Many call this the precedent for the US to declare martial law domestically — which is entirely possible. But that’s not my main concern. In general, HOW PREPARED ARE YOU TO UP AND GO ON SHORT NOTICE? What if instead of being forced to leave your house for a few hours, that it could be a day… 2 days… a week or more? You need to have an emergency pack ready and filled with all the right items.

Do you think the US Government can continue its uncontrolled spending without consequence? You, as a private citizen, can’t spend forever without facing the consequences – creditors will come after you. Debt has to be repaid… and the US Government cannot very well declare bankruptcy to have its debt removed. The US is no exception. It has many assets, particularly in the form of taxes paid by working Americans and the potential taxes for future workers. However, if there is a growing number of unemployed (and underemployed) and what jobs that are being created are for the most part low-wage positions, then tax revenues will inevitably decrease. Where will the repayment money come from? Print our way out of the problem? Ridiculous. We’re attempting to do just that, but it is a fool’s errand. How can any government around the world trust that the US will honor its debts and take the necessary measures to control its spending? THAT TRUST IS DISAPPEARING. When that trust whittles to nothing, our safety net will be removed and we will start free-falling.

Don’t know what our safety net is? Why, it’s the US Dollar’s revered place as the world reserve currency. Everyone seems to know the US Dollar’s days are numbered — except the average American.  Countries around the world are gearing up for this eventuality by making direct currency agreements with each other, thereby circumventing the US Dollar altogether. Some are purchasing gold in record numbers – namely China and India – in the hopes of making their currency more attractive when the new global standard comes into place. As more countries shy away from the US Dollar, its relevance worldwide will lessen dramatically; it will become less necessary for world trade.

Imagine a world where the US Dollar is an “outcast” and is potentially not accepted anywhere you travel (that is the case in some locations around the world already). Imagine not being able to exchange your dollars for foreign currency (or will limit the amount you can exchange) because other countries consider it worthless and not worth having. “So what” you say, I’ll just not travel and stay in the United States. Think BIGGER: if other countries don’t need the dollar anymore, all those goods we get from China will be exponentially more expensive to purchase. We will be subject to REAL import and foreign exchange taxes that we currently don’t experience.

Everything we consume that is imported from outside the United States will be THAT much more expensive. EVERYTHING. That will certainly make you think twice before making purchases as a average consumer.

I see the storm going down something like this:

The Federal Reserve continues its quantitative easing program by continuing to add more currency to the money supply. Countries around the world will continue to aggressively purchase gold to shore up their reserves. The political dance between the President and Congress will come with another fiscal cliff debacle. Amidst this discussion, a “false flag” event (open war or some terrorist event) will occur that will prompt the US to enter the conflict and commit money and resources it doesn’t have. In the wake of this war (which is likely to happen in the Middle East along the lines of the Syria situation happening right now), oil sale transactions in the Middle East will be gradually disassociated from the US Dollar, sending the dollar value into free-fall. It is only at this point that the average American will see a direct impact to their purchasing power when suddenly gas prices spike, and food and other commodity prices go through the roof. This will bring forth protestors like the Occupy movement out in protest of this move. Concurrently, when no decision is reached on the handling of the fiscal cliff during the height of other conflicts, governments around the world will move into action to drop their dollar holdings and the stock market will also start to free-fall. It will make 2008’s fall look like a walk in the park. The Fed would no longer be able to print money; it would be against the law.  Interest rates will double almost overnight and continue to increase in the absence of quantitative easing. Social security payments and state-run pensions will be unable to make payments to retirees. Retirement savings will again be wiped out, businesses will be forced to close their doors and the US credit rating will be further downgraded. Gold and silver prices will skyrocket on the foreign currency markets as speculators see inflation of the US Dollar value go into double digits for the first time in decades. These particular commodities will be seen as a hedge against the US Dollar implosion and lots of people will be clamoring to purchase physical gold and silver — a supply that will be amazingly scarce. People will start making runs on the banks, but will find the bank doors shuttered in a “bank holiday”. Riots in the streets will call forth martial law in many major cities and domestic military occupation will begin for an undetermined period to keep the peace.

We won’t be worrying about the new iPhone. Forget new tech. Forget designer clothes. It will be a question of can we afford to buy food? If you shop in a big business supermarket, most food sold there is imported from another country. Can you see yourself spending $10 for an avocado? $4 a pound for bananas? People will still be working, but they won’t be able to purchase NEARLY as much as they once did. The change will seem to happen overnight.

That’s when the IMF will swoop in to have their chat with the major financial players and get the new global currency alternative into place. And that’s when it all changes.

Does this sound far-fetched? Perhaps some will look at this with skepticism, but even YOU have to consider that it is a possibility. Again: follow the logical conclusion. This current path is unsustainable. Every day, news of the US involvement in Middle East conflicts support the possibility of further destabilization of the region. The fiscal “cliff” is the real deal and it would be hard for Congress or the President to further substantiate the increase. The dollar won’t buy nearly as much and it will be more expensive to buy goods — we already see the truth of this as the price of a gallon of milk is over $4 now. Can you imagine the hysteria at over $10 per gallon gasoline?! We’ve seen that bank holidays can and will happen (ahem, Cyprus?). We’ve already seen that cities around the US can go bankrupt — who’s to say that trend won’t continue? National debt cannot be repaid with more debt — that simply makes no sense. When people wake up to the insanity of all of this, it’s going to be the absolute WTF moment of the century. The anger this country will have at its irresponsibility is going to be astounding.

Take a deep breath. It’s overwhelming, I know. But this is the opportunity to focus on what really matters, namely you, your family and friends and your community. The important thing you must do right in this moment is:

  • Get EDUCATED. Don’t wallow in ignorance about the goings-on in this country and around the world. You cannot afford to put blinders on in the face of all that is changing around you. Take all major media with a grain of salt — they are the kings of spin. Take the information in, do your own research, get knowledgable about how money works and the impact all these decisions being made on high have for each and every one of us. As one guy I follow on YouTube says, “Listen to All, Follow None”.
  • Get REAL SKILLS. Knowing how to twerk is NOT a skill. Sorry. First off, get your body right and get healthy. If you respect the value your life has, then you will do something to improve it, make it stronger. Do not contribute to the pervasive high cost healthcare system with life-draining habits. If you don’t know how to cook or grow your own food, learn it now. If you don’t know how to shoot a gun, learn it now. If you don’t know how to apply first aid, learn it now. REAL skills folks, real things that can help and protect yourself, your family and others… these are the things we should know how to.
  • Get PREPARED. Most people in the military are trained to be prepared for any number of eventualities. We can be practical about these kind of preparations. Just do a search on the internet for “emergency preparedness”, and you’ll find a ton of resources out there. The important thing to remember is that you should do this NOW. It’s already too late when the emergency occurs.

There’s a lot of things in this life we refuse to acknowledge because of our need for normalcy. The quicker we face the new reality, the more prepared we can be to do something to salvage all the hard work we’ve done. Our current and potential wealth are at grave risk. The time to prepare for the coming storm is now.