Surviving the Economic Collapse - Beyond Food Storage

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Secession and Economic Collapse

Economic collapse in the United States is inevitable. But because the dollar is currently the world’s reserve currency, when the US gets sick, so will the rest of the world. Tragically, the worst of the consequences for regular people will happen here in America. Let’s look at what will happen.


The Causes of Economic Collapse

Congress, the US Treasury and the Federal Reserve have flooded the world with paper US money. Not all “money” is a spendable piece of paper currency. Treasury securities are sold to pension funds, insurance companies and to other nations, like China and Japan. They can be traded between parties just like cash. Look over the pie chart below and notice who owns MOST of the US debt…states, foreign nations and the Federal Reserve, who owns a whopping 49% of all US debt.

Just the Federal Reserve and foreign government holdings account for over 77% of all US Treasury securities owned. So if the Federal Reserve controls the money supply…and own almost 50% of the Treasuries…and foresee deficits into the future…what choice do they have but to buy more Treasury debt and printing more paper money to pay for it?

The US Federal Government is going to run a TRILLION DOLLAR deficit this year. That means they can do one of four things: (a) tax Americans a trillion dollars to collect the money from the citizens; (b) borrow (sell debt instruments like bonds) to the Fed, pension funds, states, insurance companies and nations of the world; (c) slash government and cut back to a balanced budget; or (d) print another trillion dollars in currency and buy some more US Treasury debt.

Which one do you really believe that Washington will do?

Now, institutional investors aren’t completely droolingly stupid (that we can prove). And most of the foreign investors are way smarter than Americans. They know that the dollar has no basis for value. They all know that inflation happens when governments print too much paper money with no underlying value. So, they can look into the future and see that they are going to receive payment in dollars that have shrunk in value. And they see that the more wildly Washington spends money, the more the dollar will shrink. Dollars that shrink in value means their buying power diminishes…the definition of inflation. The US Dollar has lost 95% of its value since the 1920s. Said another way, what now costs a dollar today only cost five cents in 1920.

This is the reason that the other nations of the world are looking for a new reserve currency. This is the reason that the oil producing nations would like an oil bourse, which would accept payment in currencies other than the dollar (Iran just started one). They know how bad off the dollar is and they don’t want to get stuck with billions of dollars of worthless currency as payment for their oil.

Here’s something else that institutional investors know…that the value of these securities and dollars they hold is a soap bubble on a hot day. It will only last briefly and then it will pop and disappear. Investor confidence maintains most of the value of US Securities, and investor confidence is extremely shaky right now. Said another way, if a couple of major holders of US Treasury securities tried to sell off their holdings next Monday, it would trigger a worldwide panic in the bond markets. Others holding US debt would also try to sell their holdings in an effort to get something for them as opposed to holding worthless bonds unsellable at any price. The bond market would collapse overnight, which would also collapse the rest of the financial markets, including the banking sector.

There are hundreds…perhaps thousands of holders of US Treasury securities. To maintain the semblance of investor confidence, every boldholder would have to sell his holdings with perfect timing. But selling presumes that there is a willing buyer at some price, and that has yet to be proven. Any one of them that makes a mistake could cause the crash of the worldwide bond market, and inevitably the crash of the entire world financial system. So, do you really believe that no one will make the mistake that crashes the system? Remember, much of investor confidence is based upon PERCEPTION, not reality.

Once that happens, the banks and credit companies would cease to function, or at least, their operations would be curtailed for an indefinite time. The term for this event used to be a “bank holiday.” Few will see the fun in that holiday.

If you watch the news each week, you’ll notice that lots of banks have already closed in America. And the bank examiners and regulators ALWAYS seem to close the banks on Friday. That gives them the weekend to scurry around and fix things if possible.

So, let’s explore the string of events that will likely occur on the day the system fails.

It’s a Friday. You go to work in a normal fashion. At lunchtime, you swipe your credit card at the restaurant and the transaction is rejected. The cashier says that all the credit and debit card transactions are being rejected, and there must be something wrong with the satellite feed. Luckily, you have cash, and you pay your bill. By the time you are leaving, the manager announces to the whole restaurant that they are not accepting any more new customers until their credit card system comes back online. All customers will have to pay cash.

You go back to work. When you get there, you punch up CNN on your computer and find that the problem is not just that restaurant’s uplink. News reports state that the worldwide bond market crashed during the morning, sending the rest of the financial markets into a freefall. The New York Stock Exchange called a halt to trading and closed at 11:30 am. Credit transactions all over the US are not working. Businesses are closing early, or only accepting cash transactions. You and your co-workers leave work early to go to your banks to make a withdrawal of cash to tide you over the weekend. But hundreds of thousands of other people have run to their banks to get cash, too. And because the banks are only required by law to keep about 15% of their assets on hand in cash, they quickly run out of money. Many banks have closed their doors for the day. When you arrive at your branch bank, it’s already closed. The sign on the door says the branch will be open again Monday morning. The ATMs do not function…anywhere.

You look in your wallet and there is six dollars there. Payday was today and now you cannot cash your paycheck. You were going to fill your tank on the way home, but now you can’t. You wonder how you’ll get to work Monday with no gas.

On your way home you drive past gas station after gas station. Many have already closed. Many have erected hastily-scrawled signs that say “CASH ONLY, NO CHECKS.” The lines of cars are blocks long.

When you get home, your spouse has had much the same experience. She went to the market on the way home from her job and the market manager had also posted “CASH ONLY” signs on the front door. People were buying up everything they could afford. The milk and bread shelves were already bare. Thankfully, your wife’s car has a full tank of gas.

You look in the pantry. A quick look tells you that the family will be able to get through the weekend just fine, although the meals might be a little weird. But by Tuesday, you’ll be running out of essentials.

Throughout the weekend, regularly scheduled news shows become 24/7 special reports about the banking and credit interruptions nationwide. Videotape from all over America shows the closed banks, shops and gas stations. 18-wheelers are parked and shut down all over the roads and in truck stops since the truckers can’t fill their fuel tanks using credit. And, some of their loads of refrigerated or frozen goods will spoil if the reefer unit runs out of fuel.

The Saturday news shows report that the Federal Reserve has been taken over by the World Bank. The President has signed an Executive Order authorizing the takeover. But since taking over the failed Federal Reserve, they have now replaced all dollar-denominated money with the Euro. They also devalued the dollar’s convertibility by a factor of 2. That means when you convert your dollars to Euros, you will only receive less than half of the face value of your dollars. Before the collapse, it cost $1.50 to buy one Euro. Now it costs $3.00. So, your $100 bill will only convert to about 33.50 Euros. The President proclaims a limited window of 30 days in which citizens will be allowed to convert all dollar currency into Euros. Than after that, the Federal Reserve notes will be entirely worthless. The President states that this is the only solution to prevent chaos.

Sunday afternoon your boss calls. Your suppliers cannot get product to your business since the truckers cannot move cargo. He tells you to just not come in Monday but to call him for instructions about Tuesday.

Monday brings no good news. More and more people, desperate for cash and panicked by the news broadcasts, have crowded in a riotous mood at banks all over America, but they’re turned away. News film shows inner city markets, gas stations and businesses that have been looted over the weekend. And the looting will now begin to spread out into the suburbs. Small bands of armed looters openly storm into businesses and take what they want. News stories show business owners sitting outside their front doors with rifles or shotguns in their arms. Crime mushrooms in only a 72-hour period. The police are completely overwhelmed.

Over the weekend, you and your family have combed the house for spare change. Between your change jar, coins in the couch and in drawers, you’ve come up with about twenty dollars. All the rest of your money is in your uncashed paycheck and in your bank account…unavailable. You have a no gold or silver coins. You have a couple ounces of gold jewelry that could be sold for cash. But what kind of cash? Should you hold onto the jewelry or sell it? Perhaps you should trade it for gold or silver coins.

On Sunday evening all TV and radio networks simulcast a Presidential address. In a terse statement, the President declares martial law in effect immediately. From now on, you will see troops on the streets, and all police officers will be dressed in SWAT team military gear, carrying AR-15 rifles.

On Monday, you call your boss and ask if he can take back your paycheck and pay you in cash. He cannot, since the business account is frozen just like everyone else’s accounts. He also tells you not to come in at all until the credit and banks work again. By the way, you’re not getting paid for your time off.

On Tuesday, you go to your local supermarket. When you arrive, you find armed guards at the entrances who search you for weapons before you enter. Upon entry, you find that many of the shelves are empty. You’re able to buy some canned goods, but that’s about it…and you only had $26 bucks anyway.

By Thursday, The World Bank has replenished some banks’ cash reserves. Some banks have re-opened for only a couple hours per day, and have restricted service to drive-up service only. Most people park their cars to save fuel and line up on foot to use the drive-up service. The employees that do show up for work are locked safely inside the branch away from the angry mobs. Women, who comprise most of the branch bank work force, are too scared of mob violence at the bank. Some refuse to work and some simply quit.

But many banks cannot reopen again, since the larger financial fallout has made them bankrupt.
By Friday, news programs show story upon story of armed thugs breaking into homes, looking for food, cash, valuables…and guns. Other stories feature homeowners who fought off robbers and looters with their own weapons, and showed film of the thugs lying dead in the front lawn. Cops are nowhere to be found, responding to calls more serious than simple robberies.

Only one week has passed in America, and things are only going to get worse. How are you going to feed your family? How are you going to keep the utilities on if you cannot work, earn money, get paid in cash and pay the utility companies? How will you pay if you need medication at your pharmacy, or need medical treatment? How are you going to keep your cell phone working? How are you going to feed your pets?

All of your neighbors are in the same mess you’re in. But now, you’re meeting together to see about ways to band together for safety, protection, and sustenance.

Now, you will see prices of all goods and services skyrocket. Inflation of 200%…300%…500% are common. Soon, those annual rates of inflation might become weekly rates.

A black market of goods and services springs up quickly. But the Federal Reserve or World Bank Euro currency is not accepted in this black market. Only gold and silver coins are accepted as money. For those who possess gold and silver coins, most goods that are unavailable to paper money users are readily available.

What’s happening to the poor…the sick…the elderly? Actually, the elderly may do better than you do, since the elderly are known for keeping more cash at home than most families. But this reputation will also make them prime targets of criminals who will rob them of their cash and valuables. For those who cannot fend for themselves, hunger and death are a very real possibility.

And folks, we are less than two weeks into the economic crash.

If the economic crash lasted a month, or two or three months, America would see a complete breakdown of society, with massive death tolls due to starvation and crime. There are going to be millions of men and women whose jobs will simply vanish, never to return. Millions of businesses will close, as consumers deem them to be unimportant to survival. What will these people do to earn an income? What skills do they have?

Eventually, states are going to have to decide if they are going to allow themselves to be run by Washington, or if they believe they can do better. One of the only ways to lessen the cultural chaos that has been portrayed here is for an American state to secede from the Union and establish a gold/silver monetary system. Even secession after the economic collapse will not protect anyone from the short-tem fallout of being unprepared to weather a disaster. But secession with a gold/silver monetary system is the ONLY possible method of cutting short the disastrous effects of the inevitable economic collapse. No one believes that Washington will ever again accept Constitutional restrictions and a gold standard for money. So, absent any help from DC, state secession is the only possible solution for governance and the only way out of economic collapse.

In conclusion, let me say that I am not trying to convert the sycophants of tyrants into liberty lovers, although that might happen in isolated incidents. I am writing to give crucial information to any citizen who is disturbed about America, and to encourage rebellion and sedition by the rest of the Americans who already know they are DC slaves.

Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

Full article Here

Preparing for the Coming US Economic Collapse

By Ron Chapman
of http://www.abundanthope.net/


G'day cobbers,

I get the impression that some forum posters think nothing is more
important than being negative about AH and its goals. If I were in
their situation I would be packin' death about what the future holds –
especially for those living in the good old US of A. IF one truly
believes that US-style 3D life is all there is one needs to get into
ECONOMIC COLLAPSE mode FKN quickly. There ain't much time left.

Currently the U.S. economy is poised to perform a magical disappearing
act.

Many of the problems that sank the Soviet Union now endanger the US.
For instance, like the Soviet Union in the late 1980s, it has a huge,
well-equipped and very expensive military bogged down fighting Muslim
freedom fighters in foreign lands. Also, energy shortfalls linked to
peaking oil production and horrendously unfavourable capital account
and trade balances is resulting in runaway foreign debt. Add to that a
delusional self-image, an inflexible ideology, and unresponsive,
totally corrupt authoritarian judicial and political systems.

When supported by corrupt judicial and political systems economic
arrangements can continue through sheer inertia well after they become
untenable. But eventually the tide of fraudulent practices, broken
promises and failed corporate activities flushes it down the drain.
The US economy and society currently floats on the false assumption
that it is possible to perpetually borrow increasing sums of money
from the rest of the world, to pay for ever-increasing manufacturing
and energy imports, while the price of those imports steadily
escalates. In particular the US economy and polity floats on the
notion that free money (fiat petro-dollars and US Treasury notes) will
always be able to buy energy imports from foreign lands. This use of
free money equates to FREE energy. But good things don't last forever
and so the US's free petro-dollar scam is a transient condition. Once
the US dollar loses its world reserve currency status based on its
role as the petro-dollar (as is now happening) the flow of FREE energy
to the US will cease and much of the US economy will be forced to shut
down.

Fuel shortages will precipitate shortages of food, medicine, and
countless consumer items, outages of electricity, gas, and water,
breakdowns in transportation systems and other infrastructure,
hyperinflation, widespread shutdowns and mass layoffs, along with a
lot of despair, confusion, violence, and lawlessness. Moreover, there
is no evidence that the US governing elite has any grand rescue plans
or innovative technology programs with which to prevent the coming
socio-economic catastrophe, nor does US society evince any signs of
manifesting any miracles of social cohesion during the impending
economic implosion.

US society is based on money. In the coming economic collapse the
governing elite is already fuelling that collapse by pumping excessive
quantities of virtual (credit) money into the banking system. The
result will be hyperinflation, which wipes out savings. As oil and
other import prices escalate they will be accompanied by rampant
unemployment, which wipes out incomes. The result is a population that
is largely penniless.

As most employment in the US is in the private sector, the transition
to permanent unemployment of much of the workforce is likely to be
sudden as businesses rapidly shed workers in an effort to stay viable,
or go into liquidation.

In the US very few people own their place of residence free and clear,
and even if they do they need an income to pay real estate and other
taxes. So, people without an income face homelessness. When the
economy collapses, very few people will continue to have an income, so
homelessness will become rampant. Add to that the motor vehicle (mv)
dependent lifestyle in most US cities and the countryside, and the
result of mass unemployment can only be mass migrations of homeless
people, mostly towards city centres.

The US population is almost entirely mv-dependent, and relies on
markets that control oil importation, refining, and distribution. They
also rely on continuous public investment in road construction and
repair. Also motor vehicles require a steady stream of imports of both
parts and whole vehicles neither of which are designed to last very
long. When these intricately inter-dependent systems stop functioning
the bulk of the US population will be virtually immobilised as public
transport systems are negligible.

US families generally tend to be atomized, geographically dispersed
and unused to sharing. Families unused to sharing in good times are
likely to find it very difficult to co-operate in bad times.
Competitiveness and personal isolation tend to be endemic already and
economic collapse is unlikely to cure these attitudes and situations.

Economic collapse tends to shut down both local production and
imports, and so it is vitally important that anything you own wears
out slowly, and that you or someone in your family or community (if
you have one to call on) can fix it if it breaks. This is another
reason why AH is exhorting people to develop their community
relationships.

In the US most people get their food from a supermarket, which is
supplied from far away using refrigerated diesel trucks. Many people
also eat fast food. When people do cook, they rarely cook from
scratch. Apart from being unhealthy, these habits will cease to be
viable if super markets and fast food sellers are unable to get food
supplies from distant places. On the positive side, obesity will cease
to be a problem for most people.

US health care is for profit. Once the economy collapses, the profit
ceases, as will most of the services it motivates.

This article is based on the information in the article "Closing the
'Collapse Gap': the USSR was better prepared for collapse than the US"
by Dmitry Orlov Published on 4 Dec 2006 by Energy Bulletin. Archived
on 4 Dec 2006. See http://www.energybulletin.net/23259.html

Orlov's article compares and contrasts the situation of the Soviet
Union when it collapsed at the beginning of the 1990s with the
situation in the US at the end of 2006. In my opinion this article is
a MUST READ for anyone seriously concerned about surviving the
impending economic difficulties facing the population of the US in the
near future.

Orlov says, rightly in my view, that a new subsistence/barter economy
emerges almost immediately in the aftermath of an economic collapse,
whatever its cause.

The scenario discussed by Orlov is predicated upon the current 3D
economic situation, absent ANY Earth changes or other physical
catastrophes that could create or exacerbate it.

Namaste
Ron



All writings by members of AbundantHope are copyrighted by
©2005-2010 AbundantHope - All rights reserved

Read Original Article Here



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2010 Food Crisis and Financial Armageddon

by Eric deCarbonnel
MarketSkeptics.com

If you read any economic, financial, or political analysis for 2010 that doesn’t mention the food shortage looming next year, throw it in the trash, as it is worthless. There is overwhelming, undeniable evidence that the world will run out of food next year. When this happens, the resulting triple digit food inflation will lead panicking central banks around the world to dump their foreign reserves to appreciate their currencies and lower the cost of food imports, causing the collapse of the dollar, the treasury market, derivative markets, and the global financial system. The US will experience economic disintegration.


The 2010 Food Crisis Means Financial Armageddon

Over the last two years, the world has faced a series of unprecedented financial crises: the collapse of the housing market, the freezing of the credit markets, the failure of Wall Street brokerage firms (Bear Stearns/Lehman Brothers), the failure of Freddie Mac and Fannie Mae, the failure of AIG, Iceland’s economic collapse, the bankruptcy of the major auto manufacturers (General Motors, Ford, and Chrysler), etc… In the face of all these challenges, the demise of the dollar, derivative markets, and the modern international system of credit has been repeatedly forecasted and feared. However, all these doomsday scenarios have so far been proved false, and, despite tremendous chaos and losses, the global financial system has held together.

The 2010 Food Crisis is different. It is THE CRISIS. The one that makes all doomsday scenarios come true. The government bailouts and central bank interventions, which have held the financial world together during the last two years, will be powerless to prevent the 2010 Food Crisis from bringing the global financial system to its knees.

Financial crisis will kick into high gear

So far the crisis has been driven by the slow and steady increase in defaults on mortgages and other loans. This is about to change. What will drive the financial crisis in 2010 will be panic about food supplies and the dollar’s plunging value. Things will start moving fast.

Dynamics Behind 2010 Food Crisis

Early in 2009, the supply and demand in agricultural markets went badly out of balance. The world experienced a catastrophic fall in food production as a result of the financial crisis (low commodity prices and lack of credit) and adverse weather on a global scale. Meanwhile, China and other Asian exporters, in an effort to preserve their economic growth, were unleashing domestic consumption long constrained by inflation fears, and demand for raw materials, especially food staples, exploded as Chinese consumers worked their way towards American-style overconsumption, prodded on by a flood of cheap credit and easy loans from the government.

Normally food prices should have already shot higher months ago, leading to lower food consumption and bringing the global food supply/demand situation back into balance. This never happened because the United States Department of Agriculture (USDA), instead of adjusting production estimates down to reflect decreased production, adjusted estimates upwards to match increasing demand from china. In this way, the USDA has brought supply and demand back into balance (on paper) and temporarily delayed a rise in food prices by ensuring a catastrophe in 2010.

Overconsumption is leading to disaster

It is absolutely key to understand that the production of agricultural goods is a fixed, once a year cycle (or twice a year in the case of double crops). The wheat, corn, soybeans and other food staples are harvested in the fall/spring and then that is it for production. It doesn’t matter how high prices go or how desperate people get, no new supply can be brought online until the next harvest at the earliest. The supply must last until the next harvest, which is why it is critical that food is correctly priced to avoid overconsumption, otherwise food shortages occur.

The USDA—by manufacturing the data needed to keep supply and demand in balance—has ensured that agricultural commodities are incorrectly priced, which has lead to overconsumption and has guaranteed disaster next year when supplies run out.

An astounding lack of awareness

The world is blissful unaware that the greatest economic/financial/political crisis ever is a few months away. While it is understandable that general public has no knowledge of what is headed their way, that same ignorance on the part of professional analysts, economists, and other highly paid financial “experts” is mind boggling, as it takes only the tiniest bit of research to realize something is going critically wrong in agricultural market.

USDA estimates for 2009/10 make no sense

All someone needs to do to know the world is headed is for food crisis is to stop reading USDA’s crop reports predicting a record soybean and corn harvests and listen to what else the USDA saying.

Specifically, the USDA has declared half the counties in the Midwest to be primary disaster areas, including 274 counties in the last 30 days alone. These designations are based on the criteria of a minimum of 30 percent loss in the value of at least one crop in the county. The chart below shows counties declared primary disaster areas by the secretary of Agriculture and the president of the United States.

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Common Solutions and Why They Won't Work

Republished from http://www.communityfortomorrow.org/Part4.htm

Part 4 of 10

Civilization as we know it cannot survive the obliteration of wealth that is currently underway. This conclusion may seem frightening and even inconceivable, but as the rapidly eroding economy is already causing a strain on the systems we depend on, there is not a more hopeful outcome unless we cooperatively take action to fundamentally alter our present course.
In the last segment we asked the following questions:

What consequences will the average individual suffer if the large scale production mechanisms that bring his food and other necessities from several hundred miles away stop working? And
What happens when millions located in high population areas suddenly begin to run short on food, power and the fuel to run their transportation due to failure of the centralized production systems?
As our way of life falters and the deterioration of our civilization progresses, ordinarily calm and "law abiding" people will become fearful, rash and perhaps violent. At that point the answers to these questions will become obvious. It won't be pleasant to say the least.

Loss of Technology

There is no question that the human race will survive. It has survived countless collapses throughout history; however, it will be a dreadful period in time, and as survival becomes a full-time occupation, we will lose much in the process. History has shown repeatedly, that when civilizations collapse, the culture's technological advances regress with it.
The classic example of this is the Roman civilization. With its fall in 476 AD, a vast array of technologies were completely lost by the surviving populations. For instance, the knowledge of how to make concrete, considered a common construction material throughout the then known world, was completely lost during the Dark Ages that followed. It wasn't until 1756, almost thirteen hundred years later and well into the rebirth of civilization, that John Smeaton rediscovered the formula for making this wonderful substance.
With the coming collapse of our own civilization, it is possible that history will repeat itself. But this time potential loss of technology and understanding could be staggeringly large, orders of magnitude greater than that lost in the past.

What should we do?

At this point, with how money and finance have been handled in our present civilization, the collapse of our centralized systems is inevitable. The question is "Could there be a way that we as individuals can respond to this looming disaster in order to minimize the consequences of the collapse to ourselves and those that we care about while setting future generations on a path to a better world?"

Common Solutions

We at Community for Tomorrow believe there is. But first, let's examine a few common solutions that others are suggesting and beginning to apply.

Run for the hills and food storage

The first, and what is considered by many as an extremely radical response, is to "run for the hills." Many who are already doing this believe they will be able to weather the storm better in rural or remote areas with stores of pre-manufactured goods produced by our modern civilization.
Admittedly, this solution sounds like a good one. Fight or flight is our instinctual response to danger, and when those living in heavily populated areas realize the magnitude of the coming chaos, flight seems to be the most logical choice.
But those attempting to live in isolation will face their own chaos and eventually their own truly severe living conditions.
Put in the simplest terms, they are running back to the life of the 14th century. Once they have consumed all of their modern products, canned foods, machine manufactured clothing, modern medicines and the like, there will be no replacements. They will live, if they live, only on what is available near at hand in the same conditions that the individual found himself before the modern age. In those conditions infant mortality was as high as 80%, an impacted wisdom tooth was the equivalent of a death sentence and a Salmonella typhosa poisoned well (typhoid fever) was known to kill entire families and even large portions of a village. There were a thousand other means of death that existed for those prior to the modern age but for us are all but non existent. The solution of hoarding and running away is not a genuine long-term solution, and anyone who truly understands the ugly side of this approach will not consider it a viable alternative.
A pleasant, durable, productive life is not possible without a stable advanced community. For this reason we must not run, but fight to preserve our local communities.
Before moving on, we cannot stress enough that with this coming collapse, there is not a one or two year solution. When the industrial mechanisms break down through failing national currencies, they are going to break down completely. We are facing the same situation that those of the collapse of Rome faced. Production is not coming back in one year, ten years or even one hundred years. If preparations are not made to prevent this loss of technology, it is not coming back within our lifetime. Those that run off to the hills will be on their own.

End the Fed

Another solution that seems to be very popular is to dismantle the Federal Reserve system. We don't know why anyone would expend the energy fighting this battle as it is going to die its own natural death eventually. We will die with it if we don't have a viable system to replace it with. It is far better to spend time building positive things than attacking or tearing down that which is negative.

Revolution

Some are suggesting that revolution is the solution, but what is meant by revolution? If the objective is to seize control of our profoundly defective government system through civil war, again our response is, "Why bother?" Another's tyranny will be no better than what we presently have. Unless there is a viable, productive substitute, failure is certain. If the intent is to tear down the present system and replace it with nothing (anarchy), again we say "Why bother?" Why put forth all the effort, while risking lives in the process? Why not just sit and wait for the anarchy and chaos that is the eventual outcome of what we are facing? In the next segment we will present the ultimate form of revolution, a solution we refer to as "the fourth industrial revolution."

Government intervention

Many people believe that the government can be trusted to provide us with a solution. We consider this the ultimate form of folly. Those that take this position are like the proverbial ostrich that sticks its head in the sand. Unfortunately, the truth of the matter is that attempting to ignore danger never stops it from coming.
Up until now the federal government of the United States has produced nothing that we consume on a daily basis. The only thing it has really given rise to in the last 100 years is an extremely unstable fiat currency and the ever so present wars and conflicts it has been involved in since the rise of the Federal Reserve. As for its involvement in our daily economy, all it has done up to this point is redistribute the products produced by private individuals and they have done this very poorly as demonstrated by the staggering amount of governmental waste.
It cannot be overemphasized that our true wealth has come from private individuals coming together to produce all of the products of our modern age. Other "seemingly modern civilizations" such as the Soviet Union attempted to have the government be the sole producer and provider of the goods needed by the people. If it had not been for the millions of tons of food shipped by the United States to Russia, a very large percentage of their population would have starved outright and state control of production within that culture would have failed almost immediately rather than lasting for more than 60 years at the great detriment to its population.
The government is the single worst organizing mechanism for production ever seen by humanity. They have no way of determining what should be made and in what quantity. That can only be achieved by the profit and loss mechanisms working in a free market as aptly and effectively described by Ludwig von Mises in the 1930s.
If the United States government should attempt to apply the policies of the former Soviet Union, we face very dire consequences. There is no other United States in this world to feed us. If they nationalize all of our productive mechanisms, the effects will be immediate and severe, and it will make those of us left to suffer with the consequences look upon those who acted on the hoarding solution as if they are living in paradise.

Hope through next generation technologies

In order to retain our way of life and current level of technology, all solutions must be evaluated by considering their potential to sustain the components necessary for community survival. In the next segment we will discuss this in more detail as well as introduce the concept of the fourth industrial revolution as a means of relocalizing production using next generation technologies.

For more information on this article http://www.communityfortomorrow.org/index.htm

Civil Disobedience: The Right of Revolution

Originally Posted on October 24, 2007 by Barbara Peterson


Henry David Thoreau’s essay “On the Duty of Civil Disobedience” written in 1849 is as relevant to the times now as it was then. We have a right to stand up and question any institution or individual that claims authority over us, just as he did then. In fact, it is our duty as citizens to do so. Thoreau decided that he could not be associated with the government of his day without disgrace. How about our government today? Can we associate with it without disgrace?

I can hear his words echoing in my mind: “It is not desirable to cultivate a respect for the law, so much as for the right” (Thoreau, 1849). Our government enacts laws that intend to subjugate and enslave. We are hit from all sides with programs that invade our privacy, take away our rights as free citizens, and make chattel of us. Our government is out of control, and its laws do not stand for what is right. Therefore, it is our duty as citizens to question its authority. It is our duty as citizens to revolt. Thoreau states: “All men recognize the right of revolution; that is, the right to refuse allegiance to, and to resist the government when its tyranny or its inefficiency are great and unendurable.” This revolution is not one to eliminate the government, but to make it better. “I ask for, not at once no government, but at once a better government” (Thoreau, 1849). So how do we go about this revolution? Thoreau makes it clear that
It is not a man’s duty, as a matter of course, to devote himself to the eradication of any, even the most enormous wrong…but it is his duty, at least, to wash his hands of it, and if he gives it no thought longer, not to give it practically his support (Thoreau, 1849).
We can resist in many ways, but the most effective method of resistance is to not support what we know to be wrong. We must live so that we are a counter friction, not supporting the wrongs that we condemn (Thoreau, 1849). If we deem it wrong to go to war over oil, we should not support anyone who supports that war, and make our next vehicle purchase one that uses the least amount of gas and oil as possible. We can withdraw monetary support for a bloated, oppressive government by not supporting the income tax system. We can stop supporting the unsafe import system by reading labels for the country of origin and refusing to purchase items that place us at risk. If we are tired of the restrictions on free speech, we should shout as loudly as we can that the First Amendment to the Constitution has not been rescinded, and refuse to listen to the media talking heads who do nothing but spout government-sponsored propaganda. By withdrawing our support for the things we know to be wrong, we can make a difference. Some who take the road of resistance will be imprisoned, but take solace from the following:





“Under a government, which imprisons any unjustly, the true place for a just man is also a prison” (Thoreau, 1849).



As Dylan Thomas so aptly put it: “Do not go gentle into that goodnight…rage, rage against the dying of the light.” May we find the strength to rage against the dying of the light of our nation while democracy gasps its last breath. May we, as individuals, find the courage to stand up to the powers that be and make the right choices. It starts with one person, and one choice. Do not abrogate your responsibility and sit on the fence of compromise. Decide to do what is right today.

References:
Thomas, D. (n.d.). Retrieved from http://www.bigeye.com/donotgo.htm
Thoreau, H.D. (1849). Retrieved from http://thoreau.eserver.org/civil.html
Copyright 2007, Barbara H. Peterson

Winds of Change

As I read the daily media propaganda about how the economy is turning around I came across pictures of the vigil remembering Tiananmen Square. Hundreds of thousands of people involved in peaceful candlelight vigils all across China. I was, myself, in college at the time and was moved, then as I am now, for people who have the courage to risk their own lives to stand up for their freedom. John Lennon came to mind as I thought about our moment in history. I thought if only someone like John Lennon was here he would have been talking about Revolution and change and maybe got people moving to really change things. Where is “our” John Lennon? Where is our generation leader? A voice and force of personality that inspires millions into action. Whoever you are…We need you more than ever.

I have no doubt that the government is not being straight with us. The economy is in much worse shape than they are saying. I truly believe the Greatest Depression the world has ever seen is imminent. What I am most dismayed about is how so many people will be caught by surprise because of the lack of information that the masses are receiving. So many people relying on the media and government to inform them on a topic that both never even saw coming. That being said it is very easy to lose sight of the positive that can result from such a change. For those who have read between the lines and prepared, a new beginning awaits.

When the dust settles and the horizon comes into focus the work of rebuilding our societies will begin. Will we miss the rat race when it has all but vanished from our memory? I think not. The winds of change are indeed growing. Societies across the globe are on the verge of major change. Can you feel it? The Chinese have a saying “May you live in interesting times”. Well if these aren’t interesting times, I don’t know what is.

Capitalism has failed, and Communism has failed. However, our Governments are trying to keep the status quo at all costs with bailouts of the rich with the hard-earned money of the working class, imprisoning our children with debt before they are born. It is time to shake the shackles of humanity for real freedom. Not the freedom of the subjugation of the indebted masses to the ruling lenders but a real freedom to pursue humanities dreams of a better tomorrow for its children.

Change is coming and the ride will be rough. It is time to prepare for the coming collapse, but what will emerge will be far better than what is current. The Heroin addict must endure the agony of withdrawal if he is to regain his health of mind, body and soul and so shall we.

The US Economy: For Whom the Bell Tolls...

The economic crisis we are faced with is of staggering proportion. The promise of real change in Washington has somehow evaporated. The people called in to advise our new administration are too close to the problem to offer any real benefit to our well intentioned president. They say the solution is to give huge mountains of money to the bankers, investment and insurance firm CEO's and the occasional auto manufacturer, in order to head off an economic catastrophe.

We now wonder how all this money helped the average person who has been trying to hang on to his or her business in the hopes that things turn around. These people are the American people. People who have worked hard all of their lives for a chance at the American dream which now is more like an American nightmare. The stimulus package is now being distributed to help create jobs across the country. However, these jobs won't last, for the work they supply is only temporary. Manufacturing capacity has not been returned to our shores, but yet we are told to go out and take out more loans and spend more. When the stimulus package is gone we will be in exactly the same place but just with much more debt and a little bit older.

The states are scrambling to figure out how to provide services to their residents. Skyrocketing unemployment, welfare and medicaid services are increasing the states expenditures while the foreclosures of local real estate, diminishing consumer sales and losses of municipal investments have decreased the states overall income. States will soon find it impossible to provide the same level of services and will start cutting back or raise taxes. School days will probably be cut to four days a week from five for public schools and class size will increase. Cutbacks in police, fire and other state personnel and early release of prisoners will be some of many areas that will be considered to save state money. California is currently teetering on the edge of bankruptcy and will probably ask for its own bailout but I fear that it won't be alone.

As taxation is inevitable so will protests by the people. More and more discontent will appear as protests and tax revolts on your local news outlets. Families with small children that can no longer rely on their children being in school all five days will be forced to reduce their income because of the prohibitive price of childcare. These actions will only cause the consumer to spend even less. Businesses that are on the verge of collapse will cease to exist.

The next major issue is the collateral damage sustained to the commercial real estate market. Have you all noticed all those empty stores in you towns and local malls. The car dealers that are closing these huge pieces of property. Someone owns these properties. No business, No income. Do not forget the mortgage payments and taxes that will be due on all these properties. Many of these properties will unfortunately foreclose and the banks, now more small and local banks, will be inundated with bad debt yet again and the mortgage backed securities that contain these mortgages will be a loss for investors.

The last nail in the coffin will be a combination of the above and the fancy mortgages that will reset in the fall of this year and continue to add to the burden till 2012. You thought the sub prime loans were bad. You ain't seen nothing yet. These are called the option ARMs and Alt-As. This is an area were the Government can help by stepping in and telling the banks that these mortgages will not reset with a higher rate and the banks will have to eat the loss. I doubt President Obama's advisers will even present this option, being so close to the industry and all. As the printing presses continue to run the value of the dollar will plummet and hyperinflation will become a reality. Oil and all other commodities will skyrocket and the country will plunge into chaos.

So what do we do? If real change is not taken soon it will surely be to late. No more bailouts for corporations and banks and reduce the size of the federal government. Implement congressional and senate terms limits. Abolish corporate special interest. End the wars and bring our soldiers home. This does not mean we let business run amok. We need to protect the citizens of this great country from the greedy hands of the banksters and corporate CEO's from Walmart to American Express. We need to heal this nation and treat all members of this land and the world with respect and dignity, and not some modern day slave in a cubicle.

We need to find out what our individual callings are and open the doors to those dreams. People that have aptitude and love for a particular calling will always prove better quality than those motivated by greed. If someone has the aptitude and passion to be a physician, by god lets get him trained for free as was once done. He will be less inclined to seek excessive reimbursement if he has no debt to pay. The cure for cancer won't come from an investor, they profit too much from the disease to find a cure. The cure will come from someone who loves to discover. We need to bring back our agricultural society and abolish big agrifarm corporations. it is the farmer that is the heart and conscience of our land and the guardians of a healthy food supply. We would all be much happier and better off contributing to our world by doing what we love doing.

Our apathy and inaction will be our undoing. The fall approaches, time is short and the bell tolls for thee.

CBS 60 Minutes story about the new mortgage nightmare...Take a look

Economic Collapse and Family Survival

We are told that we have reached the bottom of the economic trench in our current global crisis. Economic gurus are paraded daily on every media outlet, as if to convince and reassure the American people that all is well. Yet millions upon millions of Americans are jobless or homeless and many more are preparing to join this growing number. A downward spiral that continues through this uncharted abyss with no end in sight. What are American Families to do at such a time in history?


Regardless of whether or not our Government can deal with the current situation, our number one priority is to the safety and well being of ourselves and our loved ones. Steps need to be taken to insure that we can continue to meet our most fundemental obligations. This is not the time for inaction or apathy or even denial because these can have grave consequences for you and your loved ones.


I am not trying to scare you into a corner with your head between your legs but instead to rally my fellow Americans to empower themselves through potentially tough times.


We as individuals, couples and families need to start planning now and I mean NOW for the possibility of economic times that may be much worse than the Great Depression. Imagine the money in your bank gone, the supermarkets empty in a matter of minutes with resupply not in the immediate future and your place of employment is, until further notice, closed. What do you do when you run out of food at home and maybe water with no power, heat or gasoline to drive somewhere? What do you tell your child when he says "Daddy I'm Hungry".


There is nothing wrong with being prepared in an emergency. You will not be crazy but prudent if you plan for risks that you may face in the future. We teach our Boyscouts to "always be prepared" and so should we. We must prepare within the context of our own lives and that takes careful planning.


Should I stop paying my bills and quit my job? Absolutely NOT!!! Just because you see potential danger doesn't mean that things will definately happen.


What if nothing happens? Great!!! I will be the one eating my stored food and beverage celebrating and I guess I won't need to go to the store right away.


I would like to offer a few suggestions on what to focus on. First of all, any preparation is better than none. The degree to which you prepare is an individual decision based on your expectation of risk, your current means and the situation that you find yourself in.


Think about were you live. Do you live in the City , Suburbs, Rural area or the Country? Do you live in a warm or colder climate? Different situations require different preparation. The following are important topics and should be planned for separately.


Water and water storage-You don't last long without it. If the city or town shuts down the water what do you do?


Shelter and Heat- If you live in a cold winter climate you need locally available fuel supply that is renewable eg. Wood. Don't forget magnesium fire starters and other ways of starting a fire because matches and lighters run out. You might be better off leaving the area and staying with relatives whom you have assisted in getting prepared.


Food and beverage-Store what you can. If you live paycheck to paycheck start slow always taking care of your regular priorities in everyday life like paying bills first. Store Rice, Beans, Pasta, and other dry storables, Canned meats, Sugar, Honey, Flour, Peanut Butter. They say it is better to look for food when you are not hungry.


Remember God/Nature made a world that is renewable and reproduces. Grow gardens and can and jar. Keep Chickens for eggs, meat and manure for your garden. Dairy Goats produce 1-2 Gal milk per day that does not require pasturization, meat, manure, and hides. Rabbits produce fur, meat, manure and can reproduce quickly. Sheep produce fleece and meat, etc. All these creatures graze greens in the spring and summer but require feed that must also be stored in winter. I recommend lowest grade Dairy Cattle feed for all (Chickens,Goats, Rabbit, Sheep), It is currently still inexpensive at 12 dollars / 100 lbs. These are all commodities that can be used as food or trade for other things.


The ideal amount to store is six months until you can harvest more but as I said, something is better than nothing.


Fishing and Hunting-Try to acquire snare and snap traps which are quiet and reusable, Lots of fishing line, Vermiculture (Earthworms) can come in handy for fishing and animal feed and they turn your compost into usable fertile dirt. Don't forget lots of hooks and nets.

Medications for medical conditions, antibiotics, first aid supplies and cold, flu and pain remedies.

Clothing for all weather and sewing materials.


Rifles, handguns and Ammunition if legally applicable and feel comfortable to possess.


Candles, lanterns, flashlights, toiletries, radios. Camping gear is always nice to have.


Finally, how to and pleasure Books and games and cards to spend quality time with those we cherish.

Our society and the world is due for a change and change is always scary at first but necessary. We just need to get past the initially difficult hurdles of the moment. We have created an unsustainable system of consumption and greed. However, America will not perish beneath the waves of history but shall be transformed. What it will become is ultimately up to us. God Bless us and God Bless America.

NewAmericaNow@ymail.com