Emergency Preparation

So, I said I was going to start a section on getting ready for any supply disruptions or unexpected changes in our lives.  This is no different from preparing for a national disaster such as an earthquake.  Running out and getting supplies once the shit hits the fan… well it will be too late.  The shelves will be empty, the lines long, and desperation high.  Frankly, I’d rather remove that stress from my life.  Why no do something now to prepare for a possibility?

It goes without saying that personal protection is important.  After all this is America and personal protection is in our Constitution.  What personal protection means to you may be different from me, but being in shape is a start, taking a self-defense class (one that teaches you to be active and not passive), and having some basic gear on hand.  Keep a small high-powered flashlight on your person or near you at a minimum.  Who knows when you will want to see down a dark alley or shine someone in the face.  I really like the SureFire lights.

Stating the obvious we all need food and water to survive.  What happens in the case where your well stops working due to no electricity, your city water supply turns off or becomes contaminated?  You are going to be in a world of hurt.  Being without water or depending on someone else such as the national guard for water would be brutal.  Think about Katrina and how well that went.  No thank you.

Check this out!  Talk about a cool product and you can even use it for camping.  I don’t have one yet, but will. Think about clean water with no viruses that will last for about 4000 liters or 6000 for the larger unit. Personally, I’d rather have two smaller units than one large. This would get you through a pinch as long as there was some source of water, and besides you could take it camping or exploring. It will even hold the dirty water and then when you want to drink you filter it.

Why Gold?

I agree that we are probably going to see a continued decline in commodity prices especially PMs.  However, given the increases in the monetary supply I forsee this trend reversing.  When the trend reverses, which isn’t going to happen immediately because we are headed towards a major recession, with unemployment rising, and more likely interest rates as well, inflation will be severe.

The Money Supply graphs are frightening.  Once that money goes into the system I wouldn’t be surprised if we start to see hyperinflation.   For all of our sakes I don’t want that to happen.

As for investing in PMs I think there are two types of people who purchase them.  The first is the speculator, and the other the long term purchaser regardless of price. (I’m leaving out purchasers for industry and jewelry).  As much as I don’t like to see the value in relation to fiat currency of my PMs decline my intent on owning them is for more of the oh shit situation.   Throughout time gold, and silver to a lesser degree have held up as a store of value.  They aren’t going to be worthless as can a paper currency backed by nothing. Politicians and those involved in the government don’t like PMs as they aren’t easily created.  Having a currency backed by a scarce resource means that they have to control spending as they can’t print money to pay for various expenditures.

So, why gold and silver?  What happens if the fiat currency fails?  All of a sudden you and I have a bunch of roman numerals in our bank accounts.  Sure we can go get paper currency, but it is better to use as heat.  If this happens chaos will ensue until another solution is created or we go back to a currency backed by PMs.  I doubt the latter case would occur as bureaucrats aren’t going to want that option. 

My other concern is war with Iran, which is looking more and more likely.  In this scenario gold and oil will skyrocket.  Oil will also be much harder to obtain and the government will probably institute a rationing scheme instead of letting the price rise.   I’d rather pay $50.00 a gallon for gas then not be able to get it or to have to wait in line for days.  I presume many of you don’t agree, but gas or no gas you pick!  Would I drive much NO… however, if I needed to go somewhere I could get the fuel I needed.   

Lastely, beyond Gold and Oil we all need food and water.  Don’t forget food.

 

-T 

Running out of water…

Lately all we hear about is the price of oil, food, and gold. We hear about how this bank or investment has enough funding, but what we aren’t hearing about as much is the issue of water. Jim Roger’s is concerned about Northern China and its ability to procure water. I’m curious about investing in water rights because as the population grows, and civilization improves from third world status to first demands on water will increase. In a recent article on CNN, Monsanto (MON) CEO Hugh Grant said that he thinks the food shortages will pale in comparison to the water shortages of the future.

What happens when global food demand continues rising as will have to happen with a rising world population and water demands aren’t taken into account? We could have a shortage of food just because there isn’t enough water to produce it.

Maybe we will be watering the crops with the surplus of water in bottles from Fiji, Norway, Iceland, and don’t forget the LA water basin!