Investments for Preparedness and Wealth Preservation That Your Financial Adviser Will Never Mention

For the last several years we’ve been providing our readers with news, commentary, strategies and tips for weathering the economic and political storms sweeping the world.

As the economy continues to sputter, even two years after the great financial collapse of 2008, many state sponsored media analysts and talking heads would have you believe that we’ve managed to get through the worst of it, and that bright and sunny days are ahead of us.

While our views have been considered to be pessimistic by some, many others understand that we’re not making these things up, and that our recommended SHTF planning strategies have been grounded in the reality on main street, not the scripted quasi-realities depicted on television.

Last year, we opined that the current economic and political climates in the United States and abroad demanded a different perspective for those wishing to protect wealth, preserve individual liberty and maintain peace of mind. In Wealth Preservation, Investing, and Prepping For Hard Times (January 2010) we put forth the notion that traditional stock investments, 401K’s and other asset classes recommended by university or workshop trained financial advisers were inadequate for preparing you and your family for the crisis in which we find ourselves today. Among other things, we advised our readers to look seriously at non-traditional, non-mainstream assets like precious metals, food, clothing, and other commodity-tied assets that would sky rocket in price as the dollar lost value and uncertainty in government’s ability to mitigate economic collapse reached a boiling point.

For those just joining us, the same strategies that applied in the first quarter of 2010 should be closely considered today.

Jim Sinclair, a precious metals specialist, foreign currency trader and publisher of Jim Sinclair’s Mineset, also agrees with our sentiment, urging his readers to take action immediately if they have the means to do so:

Truth be told, the major theme of JSMineset has been one of self reliance in a monetary, physical and Emersonian sense. Our focus has been on your assets, your debt positions, legal matters and investment.

…

Has Trader Dan not moved from Houston to an undisclosed location in Idaho? I am writing to you from a farm in North Western Connecticut, a rural part of the state. We provide our own water, can provide our own power, have a radio system fallback for communication, satellite phones, furnaces that burn coal or oil, an indoor pistol range that can take up to .50 calibre cartridges into a Detroit bullet trap, perimeter lighting, 16 camera day and night camera security and much more.

We have focused on conservative financial structures which were in truth taking you into the position of being your own central bank.

…

There is one more step that you really need to consider. The housing market is in a black hole from which it very well might not recover for generations. Land is cheap. When homes or small farms have been foreclosed on, resulting in bank owned property, they are sold in a fire sale to buyers with cash in hand.

Do as I have done. Do as Trader Dan has done.

…

I strongly suggest that if you have benefited from JSMineset, as many of you have, consider buying yourself a hobby farm and seriously go for the exercise of self reliance. I am certain that if even to cut costs you are going to need it.

The financial system is screwed up beyond any repair. On top of that there is no desire to repair anything because the wise guys know it is impossible. It is the world that the flushing of Lehman Bros. has created. It is not a brave new world. It is more like an audition for a world of Mad Max and the Day After.

It does not matter whether or not there is more QE. The damage is done and there is no solution.

We want to believe that the corruption in the White House, Wall Street, the Federal Reserve and the halls of our federal and state legislatures will cease, that our leaders and those in control of our policies realize where we’re headed and put a stop to it.

But given that absolutely nothing has been done to curb the status quo that brought our country to the brink in 2008, we reluctantly remain pessimistic about the state of our union today and for years to come.

Jim Sinclair describes our sentiment in the most simplest terms possible: “The damage is done and there is no solution.”

For those who have come to the same conclusion, now is the time to take action.

While we can’t predict exactly what will happen – slow and drawn out depression, hyperinflation, economic collapse, stagflation, riots – we feel confident suggesting that life in America as we have known it for the last three decades is about to change drastically – in fact, it’s clear that we’re in the process of transformation right now.

Prices for essential goods will rise. Wages, in terms of real purchasing power, will go down. Taxes will increase across the board in an attempt to counter out of control spending. Government interference in our personal lives, on every level, will expand. Politicians and media will turn the people against each other. Food riots and violence may become commonplace.

Thing will get worse, much worse, before they get better. Thus far, the effects of the economic paradigm shift taking place have been, for the most part, muted. But this will change. And when it does, you will want to be as far removed as possible.

While owning stocks, bonds, and other traditional financial investments may remain a part of any growth or retirement portfolio, we urge those concerned with the coming changes to make the necessary changes in their lifestyles to insulate themselves, as much as possible, from the coming storms.

Today’s savvy investors are planning not just for retirement, but for living in a system that will undoubtedly fail to provide for the millions who have become dependent on easy credit, cheap food and gas, and a government safety net in case things don’t go as planned.

We believe in maintaining a diversified portfolio, but our definition of diversification, and that of your financial adviser may differ. Here’s where we’re putting our money, time and energy:

Invest in precious metals. Yes, we know, you can’t eat them. But so long as gold and silver hold value by central banks in China, India and pretty much everywhere in the world except the USA, there will be a buyer for this asset. As things get worse, prices will go higher, which means that if you need to buy other hard assets, you  may be able to do so by trading in your metals.A farm, ranch. Like Mr. Sinclair and his friends, the Slavo family is getting out of the burbs. While we have come to love the suburban lifestyle in which we all grew up, including the ease of patronizing name brand retail outlets, we prefer to exchange our quarter-acre lot for a larger, more self-reliant compliant property. Larger scale food growth, micro farming and open space, available at cheaper prices when compared to suburban living, is our next destination. While hyperinflation, economic collapse, and city-wide riots are low probability events, being outside of a major metroplex is much better than being smack-dab in the middle of it all. Plus, did we mention the nice, open views of country side or mountain living? For those unable to buy, consider renting. With a three year backlog of inventory, homeowners are willing to work deals. They’ll rent for cheap, lease-to-own, sell without a down payment, and jump through hoops to put you into their property – so getting into the country on a low budget is certainly feasible right now. For those who have made huge gains in gold or silver, maybe trading some of that in for a tax sale property or foreclosure would be a good barter. The point is, there are very cost-effective ways available right now to get out of the city and into a safer, more productive property today.Bulk Food. There’s a reason that the largest freeze dried food manufacturer in the world is unable to keep up with demand. Now, imagine for a second that the even a small percentage of the general population realizes that costs are hyperinflating. Prices will go up that much more, and your local retail outlet may put a limit on how much rice or beans you can buy. This happened in late 2008 at major retailers like Target. And it can certainly happen again. We hear professional traders talk about investing in commodities, and we agree that buying wheat, beans, rice, and other essential goods is a good investment. But where we differ, is that we prefer to hold the physical asset. Using the proper storage techniques, dry grains, milk and other foods can be stored for 20 – 30 years. We’re not suggesting you just buy buckets of rice and throw them in a closet, though. Buy several hundred pounds of food, package them correctly, and rotate them into your food consumption on a regular basis. Rinse and repeat. For those who followed our advice in 2010, you would have saved 40%  – 75% on today’s prices. For those with animals, consider stocking up on feed as well. This strategy will help to not only preserve wealth, but provide an emergency supply of goods in case of a food supply interruption. But something like that can’t happen right? Ask the people in Japan, and you’ll get a starkly different opinion on the matter.Micro farming and Micro Livestock – Animals, Veggies and Fruit. Wifey Slavo is getting a Dexter cow. While we love our organic milk, we’d prefer to have the ability to produce our own on demand. The same goes for chickens, rabbits and goats. You’d be surprised how easily you can establish a small-scale bartering system in your local community or neighborhood. Brother Slavo, who is already setting up the infrastructure at our new homestead, regularly interacts with neighbors, friends and community members, trading everything from tomatoes to fresh eggs. In return, he builds personal relationships with those in the surrounding area, gets fresh produce that we have yet to grow ourselves, and assistance with building out our homesteading infrastructure. You’d be amazed how valuable fresh, organically produced food is and what people are willing to trade for it. Also consider storing some seeds, heirloom variety, just in case. Even if you don’t have the ability to get out to a farm, do what you can at your suburban home or apartment dwelling – there are lots of options available.Alternative Energy. We’re all about alternative energy, just not when it’s mandated on us by government. That’s why our position is that alternative energy should start from the needs of the individual, not the carbon exchange credit system set to make billions when costly laws, taxes and fees are passed by our Congressional representatives. If there’s one thing that will continue to rise in price and lead to economic despair, it’s energy. Oil, coal, electricity – it’s all going to be expensive. That’s why we recommend finding ways to create your own. There’s solar, of course, as well as wind or micro-wind, and hydro if you have running water. Even if you were to take yourself partially off the grid, it’s worth it. Start small, and build from there. Solar systems, especially do-it-yourself systems with the help of neighbors and friends who have already built there own, can be quite cheap and often pay themselves off in a matter of a few years. In addition, building for yourself and continuing to expand may actually put money in your own pocket when you feed power back to the grid. If you don’t have the up front cash to buy a system outright, financing is available – and since we’re talking about an essential good, energy, taking a small loan for such an asset may not be a horrible idea if you can get good terms.Get Skilled. The days of working in cubes (for the most part) are numbered. In the future, if you don’t produce a necessary product or service, you will be obsolete. These jobs, like it or not, are migrating to countries where workers are willing to do the labor for 80% less than Americans. We recommend investing time and energy to acquiring new skills. Physical skills. Welding, machining, carpentry, sewing, installation of alternative energy platforms, farming, raising animals, alcohol distillation, etc. Skills like alternative medicine will be useful as health care becomes rationed. Look to the past, as in the 1800's and early 1900's, and you’ll get a good idea of jobs and skills that may pay well in the future.Guns and Ammo. It might sound a little excessive, but the fact of the matter is that guns retain their value for the most part. Ammunition, as we saw in 2008, is subject to supply and demand crunches as well. As metal prices continue to rise, and uncertainty pervades the American psyche, people will continue to stock up. You may very well be able to trade ammunition for cash, silver or other items. The system doesn’t even have to collapse for this. A host of ‘gun trader’ type web sites already have bartering systems in place. Plus, if the worst does happen, and the system goes catatonic, wouldn’t you rather have a few thousand rounds of 7.62×39 than none?Clothes. The CEO of Walmart recently said that inflation is going to affect prices in months to come. If you’ve got kids, purchasing clothes in advance, especially things like socks, underwear, pajamas, jackets, jeans, shoes and shirts may save you money down the road. And again, if the worst were to happen, you’d have apparel for the kids (or for trade) for years ahead. For those who know how to sew, buying fabric now can save hundreds of dollars later.Tools. You can never have too many nails or screws or too much equipment. If you can, start investing in tools that you’ll be using around the house/farm. Everything from standard toolbelt accessories to quality farming equipment like shovels or even a tractor. A close friend recently built his own alcohol still for production of drinking alcohol and ethanol fuel. Like everything else, prices for these types of assets will continue to rise – and in a SHTF scenario, they will become invaluable and highly sought after. If you can, buy two of everything, especially when it comes to food production or raising animals.

These may not be the investments vehicles of the baby boom generation, but, we’re not living in the boom times of the 20th century anymore.

There are a host of other investment opportunities out there. Take the time to think about where we’re headed, or might be headed, and make your investment decisions accordingly.

It’s impossible to predict exactly what to expect. We certainly can’t do it, and neither can your financial adviser or an investment pundit on television. But we can try and plan a strategy that covers most of our bases. While we don’t recommend investing your entire retirement portfolio into the above assets, some diversification is certainly prudent.

The assets recommended above will come in handy, whether or not a complete and total economic collapse is in our future. If you invest properly, and with forethought, most of the items will not be locked away in a closet for 15 years waiting for disaster. They are investments that can go to work for you right now.

View the original article here

Investments for Preparedness and Wealth Preservation That Your Financial Adviser Will Never Mention

For the last several years we’ve been providing our readers with news, commentary, strategies and tips for weathering the economic and political storms sweeping the world.

As the economy continues to sputter, even two years after the great financial collapse of 2008, many state sponsored media analysts and talking heads would have you believe that we’ve managed to get through the worst of it, and that bright and sunny days are ahead of us.

While our views have been considered to be pessimistic by some, many others understand that we’re not making these things up, and that our recommended SHTF planning strategies have been grounded in the reality on main street, not the scripted quasi-realities depicted on television.

Last year, we opined that the current economic and political climates in the United States and abroad demanded a different perspective for those wishing to protect wealth, preserve individual liberty and maintain peace of mind. In Wealth Preservation, Investing, and Prepping For Hard Times (January 2010) we put forth the notion that traditional stock investments, 401K’s and other asset classes recommended by university or workshop trained financial advisers were inadequate for preparing you and your family for the crisis in which we find ourselves today. Among other things, we advised our readers to look seriously at non-traditional, non-mainstream assets like precious metals, food, clothing, and other commodity-tied assets that would sky rocket in price as the dollar lost value and uncertainty in government’s ability to mitigate economic collapse reached a boiling point.

For those just joining us, the same strategies that applied in the first quarter of 2010 should be closely considered today.

Jim Sinclair, a precious metals specialist, foreign currency trader and publisher of Jim Sinclair’s Mineset, also agrees with our sentiment, urging his readers to take action immediately if they have the means to do so:

Truth be told, the major theme of JSMineset has been one of self reliance in a monetary, physical and Emersonian sense. Our focus has been on your assets, your debt positions, legal matters and investment.

…

Has Trader Dan not moved from Houston to an undisclosed location in Idaho? I am writing to you from a farm in North Western Connecticut, a rural part of the state. We provide our own water, can provide our own power, have a radio system fallback for communication, satellite phones, furnaces that burn coal or oil, an indoor pistol range that can take up to .50 calibre cartridges into a Detroit bullet trap, perimeter lighting, 16 camera day and night camera security and much more.

We have focused on conservative financial structures which were in truth taking you into the position of being your own central bank.

…

There is one more step that you really need to consider. The housing market is in a black hole from which it very well might not recover for generations. Land is cheap. When homes or small farms have been foreclosed on, resulting in bank owned property, they are sold in a fire sale to buyers with cash in hand.

Do as I have done. Do as Trader Dan has done.

…

I strongly suggest that if you have benefited from JSMineset, as many of you have, consider buying yourself a hobby farm and seriously go for the exercise of self reliance. I am certain that if even to cut costs you are going to need it.

The financial system is screwed up beyond any repair. On top of that there is no desire to repair anything because the wise guys know it is impossible. It is the world that the flushing of Lehman Bros. has created. It is not a brave new world. It is more like an audition for a world of Mad Max and the Day After.

It does not matter whether or not there is more QE. The damage is done and there is no solution.

We want to believe that the corruption in the White House, Wall Street, the Federal Reserve and the halls of our federal and state legislatures will cease, that our leaders and those in control of our policies realize where we’re headed and put a stop to it.

But given that absolutely nothing has been done to curb the status quo that brought our country to the brink in 2008, we reluctantly remain pessimistic about the state of our union today and for years to come.

Jim Sinclair describes our sentiment in the most simplest terms possible: “The damage is done and there is no solution.”

For those who have come to the same conclusion, now is the time to take action.

While we can’t predict exactly what will happen – slow and drawn out depression, hyperinflation, economic collapse, stagflation, riots – we feel confident suggesting that life in America as we have known it for the last three decades is about to change drastically – in fact, it’s clear that we’re in the process of transformation right now.

Prices for essential goods will rise. Wages, in terms of real purchasing power, will go down. Taxes will increase across the board in an attempt to counter out of control spending. Government interference in our personal lives, on every level, will expand. Politicians and media will turn the people against each other. Food riots and violence may become commonplace.

Thing will get worse, much worse, before they get better. Thus far, the effects of the economic paradigm shift taking place have been, for the most part, muted. But this will change. And when it does, you will want to be as far removed as possible.

While owning stocks, bonds, and other traditional financial investments may remain a part of any growth or retirement portfolio, we urge those concerned with the coming changes to make the necessary changes in their lifestyles to insulate themselves, as much as possible, from the coming storms.

Today’s savvy investors are planning not just for retirement, but for living in a system that will undoubtedly fail to provide for the millions who have become dependent on easy credit, cheap food and gas, and a government safety net in case things don’t go as planned.

We believe in maintaining a diversified portfolio, but our definition of diversification, and that of your financial adviser may differ. Here’s where we’re putting our money, time and energy:

Invest in precious metals. Yes, we know, you can’t eat them. But so long as gold and silver hold value by central banks in China, India and pretty much everywhere in the world except the USA, there will be a buyer for this asset. As things get worse, prices will go higher, which means that if you need to buy other hard assets, you  may be able to do so by trading in your metals.A farm, ranch. Like Mr. Sinclair and his friends, the Slavo family is getting out of the burbs. While we have come to love the suburban lifestyle in which we all grew up, including the ease of patronizing name brand retail outlets, we prefer to exchange our quarter-acre lot for a larger, more self-reliant compliant property. Larger scale food growth, micro farming and open space, available at cheaper prices when compared to suburban living, is our next destination. While hyperinflation, economic collapse, and city-wide riots are low probability events, being outside of a major metroplex is much better than being smack-dab in the middle of it all. Plus, did we mention the nice, open views of country side or mountain living? For those unable to buy, consider renting. With a three year backlog of inventory, homeowners are willing to work deals. They’ll rent for cheap, lease-to-own, sell without a down payment, and jump through hoops to put you into their property – so getting into the country on a low budget is certainly feasible right now. For those who have made huge gains in gold or silver, maybe trading some of that in for a tax sale property or foreclosure would be a good barter. The point is, there are very cost-effective ways available right now to get out of the city and into a safer, more productive property today.Bulk Food. There’s a reason that the largest freeze dried food manufacturer in the world is unable to keep up with demand. Now, imagine for a second that the even a small percentage of the general population realizes that costs are hyperinflating. Prices will go up that much more, and your local retail outlet may put a limit on how much rice or beans you can buy. This happened in late 2008 at major retailers like Target. And it can certainly happen again. We hear professional traders talk about investing in commodities, and we agree that buying wheat, beans, rice, and other essential goods is a good investment. But where we differ, is that we prefer to hold the physical asset. Using the proper storage techniques, dry grains, milk and other foods can be stored for 20 – 30 years. We’re not suggesting you just buy buckets of rice and throw them in a closet, though. Buy several hundred pounds of food, package them correctly, and rotate them into your food consumption on a regular basis. Rinse and repeat. For those who followed our advice in 2010, you would have saved 40%  – 75% on today’s prices. For those with animals, consider stocking up on feed as well. This strategy will help to not only preserve wealth, but provide an emergency supply of goods in case of a food supply interruption. But something like that can’t happen right? Ask the people in Japan, and you’ll get a starkly different opinion on the matter.Micro farming and Micro Livestock – Animals, Veggies and Fruit. Wifey Slavo is getting a Dexter cow. While we love our organic milk, we’d prefer to have the ability to produce our own on demand. The same goes for chickens, rabbits and goats. You’d be surprised how easily you can establish a small-scale bartering system in your local community or neighborhood. Brother Slavo, who is already setting up the infrastructure at our new homestead, regularly interacts with neighbors, friends and community members, trading everything from tomatoes to fresh eggs. In return, he builds personal relationships with those in the surrounding area, gets fresh produce that we have yet to grow ourselves, and assistance with building out our homesteading infrastructure. You’d be amazed how valuable fresh, organically produced food is and what people are willing to trade for it. Also consider storing some seeds, heirloom variety, just in case. Even if you don’t have the ability to get out to a farm, do what you can at your suburban home or apartment dwelling – there are lots of options available.Alternative Energy. We’re all about alternative energy, just not when it’s mandated on us by government. That’s why our position is that alternative energy should start from the needs of the individual, not the carbon exchange credit system set to make billions when costly laws, taxes and fees are passed by our Congressional representatives. If there’s one thing that will continue to rise in price and lead to economic despair, it’s energy. Oil, coal, electricity – it’s all going to be expensive. That’s why we recommend finding ways to create your own. There’s solar, of course, as well as wind or micro-wind, and hydro if you have running water. Even if you were to take yourself partially off the grid, it’s worth it. Start small, and build from there. Solar systems, especially do-it-yourself systems with the help of neighbors and friends who have already built there own, can be quite cheap and often pay themselves off in a matter of a few years. In addition, building for yourself and continuing to expand may actually put money in your own pocket when you feed power back to the grid. If you don’t have the up front cash to buy a system outright, financing is available – and since we’re talking about an essential good, energy, taking a small loan for such an asset may not be a horrible idea if you can get good terms.Get Skilled. The days of working in cubes (for the most part) are numbered. In the future, if you don’t produce a necessary product or service, you will be obsolete. These jobs, like it or not, are migrating to countries where workers are willing to do the labor for 80% less than Americans. We recommend investing time and energy to acquiring new skills. Physical skills. Welding, machining, carpentry, sewing, installation of alternative energy platforms, farming, raising animals, alcohol distillation, etc. Skills like alternative medicine will be useful as health care becomes rationed. Look to the past, as in the 1800's and early 1900's, and you’ll get a good idea of jobs and skills that may pay well in the future.Guns and Ammo. It might sound a little excessive, but the fact of the matter is that guns retain their value for the most part. Ammunition, as we saw in 2008, is subject to supply and demand crunches as well. As metal prices continue to rise, and uncertainty pervades the American psyche, people will continue to stock up. You may very well be able to trade ammunition for cash, silver or other items. The system doesn’t even have to collapse for this. A host of ‘gun trader’ type web sites already have bartering systems in place. Plus, if the worst does happen, and the system goes catatonic, wouldn’t you rather have a few thousand rounds of 7.62×39 than none?Clothes. The CEO of Walmart recently said that inflation is going to affect prices in months to come. If you’ve got kids, purchasing clothes in advance, especially things like socks, underwear, pajamas, jackets, jeans, shoes and shirts may save you money down the road. And again, if the worst were to happen, you’d have apparel for the kids (or for trade) for years ahead. For those who know how to sew, buying fabric now can save hundreds of dollars later.Tools. You can never have too many nails or screws or too much equipment. If you can, start investing in tools that you’ll be using around the house/farm. Everything from standard toolbelt accessories to quality farming equipment like shovels or even a tractor. A close friend recently built his own alcohol still for production of drinking alcohol and ethanol fuel. Like everything else, prices for these types of assets will continue to rise – and in a SHTF scenario, they will become invaluable and highly sought after. If you can, buy two of everything, especially when it comes to food production or raising animals.

These may not be the investments vehicles of the baby boom generation, but, we’re not living in the boom times of the 20th century anymore.

There are a host of other investment opportunities out there. Take the time to think about where we’re headed, or might be headed, and make your investment decisions accordingly.

It’s impossible to predict exactly what to expect. We certainly can’t do it, and neither can your financial adviser or an investment pundit on television. But we can try and plan a strategy that covers most of our bases. While we don’t recommend investing your entire retirement portfolio into the above assets, some diversification is certainly prudent.

The assets recommended above will come in handy, whether or not a complete and total economic collapse is in our future. If you invest properly, and with forethought, most of the items will not be locked away in a closet for 15 years waiting for disaster. They are investments that can go to work for you right now.

View the original article here

Investments for Preparedness and Wealth Preservation That Your Financial Adviser Will Never Mention

For the last several years we’ve been providing our readers with news, commentary, strategies and tips for weathering the economic and political storms sweeping the world.

As the economy continues to sputter, even two years after the great financial collapse of 2008, many state sponsored media analysts and talking heads would have you believe that we’ve managed to get through the worst of it, and that bright and sunny days are ahead of us.

While our views have been considered to be pessimistic by some, many others understand that we’re not making these things up, and that our recommended SHTF planning strategies have been grounded in the reality on main street, not the scripted quasi-realities depicted on television.

Last year, we opined that the current economic and political climates in the United States and abroad demanded a different perspective for those wishing to protect wealth, preserve individual liberty and maintain peace of mind. In Wealth Preservation, Investing, and Prepping For Hard Times (January 2010) we put forth the notion that traditional stock investments, 401K’s and other asset classes recommended by university or workshop trained financial advisers were inadequate for preparing you and your family for the crisis in which we find ourselves today. Among other things, we advised our readers to look seriously at non-traditional, non-mainstream assets like precious metals, food, clothing, and other commodity-tied assets that would sky rocket in price as the dollar lost value and uncertainty in government’s ability to mitigate economic collapse reached a boiling point.

For those just joining us, the same strategies that applied in the first quarter of 2010 should be closely considered today.

Jim Sinclair, a precious metals specialist, foreign currency trader and publisher of Jim Sinclair’s Mineset, also agrees with our sentiment, urging his readers to take action immediately if they have the means to do so:

Truth be told, the major theme of JSMineset has been one of self reliance in a monetary, physical and Emersonian sense. Our focus has been on your assets, your debt positions, legal matters and investment.

…

Has Trader Dan not moved from Houston to an undisclosed location in Idaho? I am writing to you from a farm in North Western Connecticut, a rural part of the state. We provide our own water, can provide our own power, have a radio system fallback for communication, satellite phones, furnaces that burn coal or oil, an indoor pistol range that can take up to .50 calibre cartridges into a Detroit bullet trap, perimeter lighting, 16 camera day and night camera security and much more.

We have focused on conservative financial structures which were in truth taking you into the position of being your own central bank.

…

There is one more step that you really need to consider. The housing market is in a black hole from which it very well might not recover for generations. Land is cheap. When homes or small farms have been foreclosed on, resulting in bank owned property, they are sold in a fire sale to buyers with cash in hand.

Do as I have done. Do as Trader Dan has done.

…

I strongly suggest that if you have benefited from JSMineset, as many of you have, consider buying yourself a hobby farm and seriously go for the exercise of self reliance. I am certain that if even to cut costs you are going to need it.

The financial system is screwed up beyond any repair. On top of that there is no desire to repair anything because the wise guys know it is impossible. It is the world that the flushing of Lehman Bros. has created. It is not a brave new world. It is more like an audition for a world of Mad Max and the Day After.

It does not matter whether or not there is more QE. The damage is done and there is no solution.

We want to believe that the corruption in the White House, Wall Street, the Federal Reserve and the halls of our federal and state legislatures will cease, that our leaders and those in control of our policies realize where we’re headed and put a stop to it.

But given that absolutely nothing has been done to curb the status quo that brought our country to the brink in 2008, we reluctantly remain pessimistic about the state of our union today and for years to come.

Jim Sinclair describes our sentiment in the most simplest terms possible: “The damage is done and there is no solution.”

For those who have come to the same conclusion, now is the time to take action.

While we can’t predict exactly what will happen – slow and drawn out depression, hyperinflation, economic collapse, stagflation, riots – we feel confident suggesting that life in America as we have known it for the last three decades is about to change drastically – in fact, it’s clear that we’re in the process of transformation right now.

Prices for essential goods will rise. Wages, in terms of real purchasing power, will go down. Taxes will increase across the board in an attempt to counter out of control spending. Government interference in our personal lives, on every level, will expand. Politicians and media will turn the people against each other. Food riots and violence may become commonplace.

Thing will get worse, much worse, before they get better. Thus far, the effects of the economic paradigm shift taking place have been, for the most part, muted. But this will change. And when it does, you will want to be as far removed as possible.

While owning stocks, bonds, and other traditional financial investments may remain a part of any growth or retirement portfolio, we urge those concerned with the coming changes to make the necessary changes in their lifestyles to insulate themselves, as much as possible, from the coming storms.

Today’s savvy investors are planning not just for retirement, but for living in a system that will undoubtedly fail to provide for the millions who have become dependent on easy credit, cheap food and gas, and a government safety net in case things don’t go as planned.

We believe in maintaining a diversified portfolio, but our definition of diversification, and that of your financial adviser may differ. Here’s where we’re putting our money, time and energy:

Invest in precious metals. Yes, we know, you can’t eat them. But so long as gold and silver hold value by central banks in China, India and pretty much everywhere in the world except the USA, there will be a buyer for this asset. As things get worse, prices will go higher, which means that if you need to buy other hard assets, you  may be able to do so by trading in your metals.A farm, ranch. Like Mr. Sinclair and his friends, the Slavo family is getting out of the burbs. While we have come to love the suburban lifestyle in which we all grew up, including the ease of patronizing name brand retail outlets, we prefer to exchange our quarter-acre lot for a larger, more self-reliant compliant property. Larger scale food growth, micro farming and open space, available at cheaper prices when compared to suburban living, is our next destination. While hyperinflation, economic collapse, and city-wide riots are low probability events, being outside of a major metroplex is much better than being smack-dab in the middle of it all. Plus, did we mention the nice, open views of country side or mountain living? For those unable to buy, consider renting. With a three year backlog of inventory, homeowners are willing to work deals. They’ll rent for cheap, lease-to-own, sell without a down payment, and jump through hoops to put you into their property – so getting into the country on a low budget is certainly feasible right now. For those who have made huge gains in gold or silver, maybe trading some of that in for a tax sale property or foreclosure would be a good barter. The point is, there are very cost-effective ways available right now to get out of the city and into a safer, more productive property today.Bulk Food. There’s a reason that the largest freeze dried food manufacturer in the world is unable to keep up with demand. Now, imagine for a second that the even a small percentage of the general population realizes that costs are hyperinflating. Prices will go up that much more, and your local retail outlet may put a limit on how much rice or beans you can buy. This happened in late 2008 at major retailers like Target. And it can certainly happen again. We hear professional traders talk about investing in commodities, and we agree that buying wheat, beans, rice, and other essential goods is a good investment. But where we differ, is that we prefer to hold the physical asset. Using the proper storage techniques, dry grains, milk and other foods can be stored for 20 – 30 years. We’re not suggesting you just buy buckets of rice and throw them in a closet, though. Buy several hundred pounds of food, package them correctly, and rotate them into your food consumption on a regular basis. Rinse and repeat. For those who followed our advice in 2010, you would have saved 40%  – 75% on today’s prices. For those with animals, consider stocking up on feed as well. This strategy will help to not only preserve wealth, but provide an emergency supply of goods in case of a food supply interruption. But something like that can’t happen right? Ask the people in Japan, and you’ll get a starkly different opinion on the matter.Micro farming and Micro Livestock – Animals, Veggies and Fruit. Wifey Slavo is getting a Dexter cow. While we love our organic milk, we’d prefer to have the ability to produce our own on demand. The same goes for chickens, rabbits and goats. You’d be surprised how easily you can establish a small-scale bartering system in your local community or neighborhood. Brother Slavo, who is already setting up the infrastructure at our new homestead, regularly interacts with neighbors, friends and community members, trading everything from tomatoes to fresh eggs. In return, he builds personal relationships with those in the surrounding area, gets fresh produce that we have yet to grow ourselves, and assistance with building out our homesteading infrastructure. You’d be amazed how valuable fresh, organically produced food is and what people are willing to trade for it. Also consider storing some seeds, heirloom variety, just in case. Even if you don’t have the ability to get out to a farm, do what you can at your suburban home or apartment dwelling – there are lots of options available.Alternative Energy. We’re all about alternative energy, just not when it’s mandated on us by government. That’s why our position is that alternative energy should start from the needs of the individual, not the carbon exchange credit system set to make billions when costly laws, taxes and fees are passed by our Congressional representatives. If there’s one thing that will continue to rise in price and lead to economic despair, it’s energy. Oil, coal, electricity – it’s all going to be expensive. That’s why we recommend finding ways to create your own. There’s solar, of course, as well as wind or micro-wind, and hydro if you have running water. Even if you were to take yourself partially off the grid, it’s worth it. Start small, and build from there. Solar systems, especially do-it-yourself systems with the help of neighbors and friends who have already built there own, can be quite cheap and often pay themselves off in a matter of a few years. In addition, building for yourself and continuing to expand may actually put money in your own pocket when you feed power back to the grid. If you don’t have the up front cash to buy a system outright, financing is available – and since we’re talking about an essential good, energy, taking a small loan for such an asset may not be a horrible idea if you can get good terms.Get Skilled. The days of working in cubes (for the most part) are numbered. In the future, if you don’t produce a necessary product or service, you will be obsolete. These jobs, like it or not, are migrating to countries where workers are willing to do the labor for 80% less than Americans. We recommend investing time and energy to acquiring new skills. Physical skills. Welding, machining, carpentry, sewing, installation of alternative energy platforms, farming, raising animals, alcohol distillation, etc. Skills like alternative medicine will be useful as health care becomes rationed. Look to the past, as in the 1800's and early 1900's, and you’ll get a good idea of jobs and skills that may pay well in the future.Guns and Ammo. It might sound a little excessive, but the fact of the matter is that guns retain their value for the most part. Ammunition, as we saw in 2008, is subject to supply and demand crunches as well. As metal prices continue to rise, and uncertainty pervades the American psyche, people will continue to stock up. You may very well be able to trade ammunition for cash, silver or other items. The system doesn’t even have to collapse for this. A host of ‘gun trader’ type web sites already have bartering systems in place. Plus, if the worst does happen, and the system goes catatonic, wouldn’t you rather have a few thousand rounds of 7.62×39 than none?Clothes. The CEO of Walmart recently said that inflation is going to affect prices in months to come. If you’ve got kids, purchasing clothes in advance, especially things like socks, underwear, pajamas, jackets, jeans, shoes and shirts may save you money down the road. And again, if the worst were to happen, you’d have apparel for the kids (or for trade) for years ahead. For those who know how to sew, buying fabric now can save hundreds of dollars later.Tools. You can never have too many nails or screws or too much equipment. If you can, start investing in tools that you’ll be using around the house/farm. Everything from standard toolbelt accessories to quality farming equipment like shovels or even a tractor. A close friend recently built his own alcohol still for production of drinking alcohol and ethanol fuel. Like everything else, prices for these types of assets will continue to rise – and in a SHTF scenario, they will become invaluable and highly sought after. If you can, buy two of everything, especially when it comes to food production or raising animals.

These may not be the investments vehicles of the baby boom generation, but, we’re not living in the boom times of the 20th century anymore.

There are a host of other investment opportunities out there. Take the time to think about where we’re headed, or might be headed, and make your investment decisions accordingly.

It’s impossible to predict exactly what to expect. We certainly can’t do it, and neither can your financial adviser or an investment pundit on television. But we can try and plan a strategy that covers most of our bases. While we don’t recommend investing your entire retirement portfolio into the above assets, some diversification is certainly prudent.

The assets recommended above will come in handy, whether or not a complete and total economic collapse is in our future. If you invest properly, and with forethought, most of the items will not be locked away in a closet for 15 years waiting for disaster. They are investments that can go to work for you right now.

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Government Profits from the “Never Go Bust” Guarantee

03/25/11 Baltimore, Maryland – Gold is hitting new records. It’s telling us that there is something very wrong with the world’s dollar-based money system.

But most investors don’t notice. Gold is still a “kooky” thing to buy.

And the feds have no idea what is going on.

You gotta hand it to the feds. They’re cool. They’re incompetent. They could pass a lie detector test no matter what they did.

Over at the US Treasury, they’ve been crowing about how much profit they’ve made. They rushed to save AIG and Citi by buying their toxic bonds. Then, they flew to the side of Fannie and Freddie when they were in trouble.

As a result of these selfless rescue efforts, they came to hold a huge portfolio of securities; the Fannie and Freddie portion alone is worth $142 billion, say the papers. The Treasury has already sold its AIG and Citi paper – at a profit. And now, it is getting set to unload its hoard of Freddie and Fannie paper.

Can you believe it; its eggs haven’t been sold yet, but it’s already counting on profits between $15 and $20 billion. Are they investment geniuses at the Treasury, or what?

Well, in a way, they’re a lot smarter than we are. We could have bought those notes and bonds too. We should have had more faith in the feds. We could have looked ahead and seen that they would get away – for a while, at least – with one of the biggest financial scams in history. We could have made a profit on it too!

Let’s look at how it works. The borrowers – AIG, Citi, Freddie, Fannie – make bad bets. By all rights, they should go broke and their bondholders should lose money. But as Mr. Market is doing his work – marking down junk debt of all kind in anticipation of a clean up – in come the feds. No need to sell that stuff, they say. We’re behind it 100%. Thus did they pledge the full faith and credit of the United States of America to guarantee that bondholders wouldn’t pay for their own dumb mistakes.

We should have bought then; the fix was in. But we had doubts about the credit of the US. Still do. We worried that the fix may not stay fixed long enough to make money.

We were wrong. As to their ability to refloat the financial sector, we should never have doubted the feds. The Fed went out and bought every stray dog and cat of a mortgaged-backed security it could find – $1.4 trillion worth of them. It also lent money to the financial industry at 0.5%. That’s about 8.5% below the real rate of consumer price inflation – according to John William’s “Shadow Stats” estimate. And if that weren’t enough, the banks were guaranteed profits – by allowing them to borrow from the Fed at 0.5%, use the money to buy US Treasury bonds, yielding between 3% and 4%…and sell them back the Fed. Not taking any chances, the Fed is also printing up an extra $4 billion per day, money coming out of nowhere, to buy Treasury bonds. Not only is it financing more than America’s entire monthly deficit…it leaves the financial industry free to use its own (borrowed) money to speculate on other things.

Naturally, when you have this kind of racket going, you’re not going to bother making risky loans to the private sector. Instead, you’re going to go where the fix is in…you’re going to gamble on debt – buying more “junk” bonds…and pushing up bond prices!

Oh, Dear Reader, we hate a scam, but we admire an elegant scamster. In other words, the feds gave the financial sector the money to bid up its own paper…the very paper that the feds themselves held in great quantity.

And now they claim to have made a profit from this operation.

How about this? We’ll start a phony baloney business. We’ll sell shares all over town. When people realize that the business is a loser, the shares will fall and our business will be in danger of collapse. Then, the feds can come to our aid too. They can buy up our shares, guarantee that we’ll never go bust, and give us money so we can buy shares too. The price of the shares will go back up…and the feds can sell their shares, quietly. Hey, this will be profitable for the feds too – if they ignore all that money they gave us to make the flimflam work.

But here’s a question: why couldn’t they make this sort of razzmatazz work in Europe? Didn’t the Irish have a boatload of bad mortgage debt? Didn’t the government step in to guarantee the lot of it? And now look. Not only is the original mortgage debt getting marked down…so is the Irish government’s debt.

Why can’t the Irish get the hang of this?

Well, a couple of reasons.

First, the Irish have much more debt to deal with; they’ve already given their banks an amount equal to 1/4 of the nation’s entire GDP. That would be like reflating the US financial sector with $3.5 trillion.

Wait a minute. You say the US financial sector has gotten nearly that much? Hold on…maybe you’re right…

The money printing from the Fed is the aforementioned $1.4 billion, right? Okay… Another $200 billion or so in asset purchases from the Treasury. And surely handling all those US Treasury bonds didn’t hurt – what’s that, about $3 trillion there, but you can’t really count that as a bank bailout.

But the big difference is that the US can print money; Ireland can’t. Ireland has to borrow the money with which to bail out its banks. And the more it borrows, the more investors worry that it won’t be able to pay it back.

And they’re right. At current yields, the Irish can’t borrow at all – not on the open market. Two-year bonds issued by Ireland now yield more than 10%. So, the Irish have to beg loans from the euro-feds. And even they are charging them 6%. Even at that subsidized rate, Ireland can’t go on much longer.

Ireland is more like California or Illinois. It doesn’t print its own money. And it doesn’t have a central bank that will lend at zero percent…

In the long run, this is a good thing. They can’t destroy their entire economies with make-believe money, while claiming to make taxpayers’ a profit.

Bill Bonner
for The Daily Reckoning

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind The Daily Reckoning . 

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The BP Disaster Never Ended

From Stuart H. Smith

A large oil slick – 12-miles wide by 100-miles long – was spotted yesterday off Grand Isle, Louisiana, by pilot Bonny Schumaker, who heads up the California-based environmental nonprofit “On Wings of Care.” Ms. Schumaker confirmed that the slick is rapidly expanding, and reports that she will be returning to the site as soon as possible to further investigate the situation. New Orleans photographer Jerry Moran, who was flying with Schumaker, filed aerial photos.

This new oil spill is New Huge Spill is in the undersea Mississsippi Canyon System – the same area as BP’s Deepwater Horizon disaster.

Throughout the month of February, Corexit and other dispersants have still been sprayed in the Gulf and many people asked themselves why this would be necessary. After all BP and the Government assured us the well was capped and the danger was over, right? But reports of huge undersea cracks still seeping oil from the sea floor remained. And now, the evidence is too huge to cover up: the oil is obviously still leaking, and if throwing more dispersant at it is their only solution, then it appears BP is powerless to stop the leak at its source (or sources).

[Source]

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Never Let The Dog See The Rabbit

Just to briefly revisit yesterday's article on veggies being banned from fostering in Crete, the Curmudgeon asked a pertinent question in the comments.

"But is it really credible that vegetarian adoptive parents would feed their child meat? I don't know any who give meat to their biological offspring."

Well, I don't know any vegetarians full stop so can't comment even anecdotally. It did appear, though, quite damning of veggies in general if they are viewed as always ideologically driven to enforce their lifestyle choice on others.

I'd like to think that isn't generally the case, but this CNN piece doesn't inspire confidence.

"Her health and well-being is the main thing for us, but that fact we have a vegan option is a double-benefit because it means our dog can live with the same ideology," she says.

With the vegan diet enjoying a period of (mostly) positive widespread exposure, it should come as little surprise that vegetarian or vegan pet owners might want to project those ideals onto their canine companions.

Veganism for dogs? Yes, it really is what is being described here, even though dogs are clearly not designed for consuming such a diet.

[Donna Spector, a veterinary internal medicine specialist who runs SpectorDVM, an animal nutrition consultancy] and six other pet experts who spoke with CNN conceded -- some more reluctantly than others -- that most dogs could biologically live on a vegan diet. But doing so requires substantial attention to creating a balanced diet that makes up for the loss of animal protein with substitutions of beans, soy and, to a lesser extent, vegetables and grains.

"Vegetarian pet foods require the addition of synthetic amino acids to fill nutritional gaps or a much higher overall protein level to supply all of the essential amino acids. Overall, it is much easier and more reliable to supply a dog's essential nutrients in a food containing both plants and meat," she says.

The vegan diet also lacks some essential fatty acids that are only available in animal products like butter and fish oils, says veterinarian Michael Fox, former president of the U.S. Humane Society and author of "Dog Mind, Dog Body."

Crikey! If such hoops are being jumped through to prohibit a primarily carnivorous animal being allowed to get so much as a sniff of meat, it suggests an almost religious - and dangerously authoritarian - mentality. Or, as dog expert Tracie Hotchner diplomatically explains.

"If a dog has a choice he's not picking a pile of beans over chicken or meat, and he's not going to be lapping up soy," she says. "If you're going to be harmonious in your choices, be harmonious. I say respect each species for what it was meant to be, and if you feel that strongly about being vegan, get a vegetarian animal. Bunnies make wonderful pets."

Perhaps those Cretans had a point, after all.

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THE LOVE OF GOD FOR HIS PEOPLE NEVER FAILS

While reading Psalm 13, I was impressed to send you a few words of encouragement I have gleaned from this blessed chapter.

David penned the words contained in this Psalm. He asked, “How long will you forget me, Lord? Forever? How long will you hide your face from me? How long shall I have sorrow in my heart daily? How long will the enemy be exalted over me?”

It sounds as if David felt that God had altogether left him to suffer, to wake up each day with a black cloud hanging over him. For a season, David spoke out of despair: “God, will this feeling of isolation go on forever? When will my prayers be answered?”

When troubles assail us though we know we love the Lord – when deliverance seems distant and hopeless – we sink under the pressure. Right now, someone reading these words is sinking under the awful pressure of a situation that seems to be unsolvable. They are on the verge of total despair, hoping a calm will come if only for a break in their trial.

In the midst of his own trial, David asked, “How long shall I take counsel in my soul?” He had formed one plan after another, trying to devise ways out of his trouble – but all his plans, all arrangements, had failed. Now he had nothing else to think of, no workable solution. He was at the end of it all.

How upsetting it is to see a ray of hope, a bit of sunshine, but then despair once again sets in. Keep in mind, this all happened to a godly man, someone after God’s heart. David was a man who testified of having great trust in the Lord. Yet, like us, David went through hard times, as he describes in this Psalm.

How did David arise from this pit of despair? “I will trust in your mercy… I will sing.”

Let me share with you reasons to keep trusting your way through your present trials:

• No matter how the storms may rage, our precious Lord will still be feeding the fowls of the air, dressing the lilies of the field, and supplying an ocean full of fish with their daily needs. “Your heavenly Father feedeth them…” Not one bird ever falls to the ground without the Father’s eye upon it.

• What kind of Father would feed all the creatures of the earth and yet neglect his children? Jesus exhorted us to “give no thought” to everyday needs and problems, “for he careth for you.”

Truly, the Lord loves you, and he will not turn a deaf ear to your cries. Hold on to his promises. Move on in faith. Wait on him patiently. He will never fail you.

View the original article here

THE LOVE OF GOD FOR HIS PEOPLE NEVER FAILS

While reading Psalm 13, I was impressed to send you a few words of encouragement I have gleaned from this blessed chapter.

David penned the words contained in this Psalm. He asked, “How long will you forget me, Lord? Forever? How long will you hide your face from me? How long shall I have sorrow in my heart daily? How long will the enemy be exalted over me?”

It sounds as if David felt that God had altogether left him to suffer, to wake up each day with a black cloud hanging over him. For a season, David spoke out of despair: “God, will this feeling of isolation go on forever? When will my prayers be answered?”

When troubles assail us though we know we love the Lord – when deliverance seems distant and hopeless – we sink under the pressure. Right now, someone reading these words is sinking under the awful pressure of a situation that seems to be unsolvable. They are on the verge of total despair, hoping a calm will come if only for a break in their trial.

In the midst of his own trial, David asked, “How long shall I take counsel in my soul?” He had formed one plan after another, trying to devise ways out of his trouble – but all his plans, all arrangements, had failed. Now he had nothing else to think of, no workable solution. He was at the end of it all.

How upsetting it is to see a ray of hope, a bit of sunshine, but then despair once again sets in. Keep in mind, this all happened to a godly man, someone after God’s heart. David was a man who testified of having great trust in the Lord. Yet, like us, David went through hard times, as he describes in this Psalm.

How did David arise from this pit of despair? “I will trust in your mercy… I will sing.”

Let me share with you reasons to keep trusting your way through your present trials:

• No matter how the storms may rage, our precious Lord will still be feeding the fowls of the air, dressing the lilies of the field, and supplying an ocean full of fish with their daily needs. “Your heavenly Father feedeth them…” Not one bird ever falls to the ground without the Father’s eye upon it.

• What kind of Father would feed all the creatures of the earth and yet neglect his children? Jesus exhorted us to “give no thought” to everyday needs and problems, “for he careth for you.”

Truly, the Lord loves you, and he will not turn a deaf ear to your cries. Hold on to his promises. Move on in faith. Wait on him patiently. He will never fail you.

View the original article here

Why you NEVER give money to the banks. EVER.

http://www.youtube.com/watch?v=_ziWPPMdlqs&feature=player_embedded

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