We here at the PPC was passed along this article. It’s first an analysis of Bernake and his recent actions vs comments, and a break down by means of analogies of what they mean. The author goes on to detail what he believes the current economic situation is and how it’s going to play out. There are two parts that caught my attention.
You can find the article here, please take the time to read the entire article, it’s worth the effort.
The nightmare scenario that is staring us in the face, right here, right now isn’t hyperinflation. It is in fact a collapse of monetary systems driving demand for dollars through the roof in a crescendo of attempted redemptions into collapsed (“no bid”) asset prices – a demand that Ben will not be able to meet, as the collateral backing those dollars will have all been exchanged for toilet paper. Whether Bernanke holds all this trash on his balance sheet or manages to scam Treasury into exchanging it for T-bills, the result is the same – there is no collateral behind Bucky and as employment collapses no production to replace it with either.
I have been singing this song – raise cash now – for quite some time. Let me be succinct – it has been my considered belief that you need enough in liquid cash – not credit access in the form of credit card available balances or anything similar – for at least six to twelve months. I’m upping that here and now to twelve to twenty-four months – that’s right – one to two full years of “minimum necessary to make it” expenses. Figure out right here and now what your minimum “monthly nut” is, and raise 12-24 months of that much in safe, liquid funds.
That’s a minimum; if you can in fact have enough available to be able to execute a “bug out” plan where you are able to become effectively self-sufficient on short notice (a couple of months maximum) if necessary, that’s even better. Yes, we’re talking chickens, goats, enough arable land to grow what you need to survive (bartering for what you don’t have with what you do) and the means to defend it. If you live in a big city consider carefully what you intend to do if unemployment goes north of 20% and the city effectively goes feral – if you’re interested in “how bad can it get” go drive through major parts of Detroit – bring an armored vehicle for your tour and/or at least semi-automatic weapons.
The PPC Team
Mike@prepcast.info; Rob@prepcast.info; Greg@prepcast.info