Category: Economy

Cash Is King -The Importance of a Cash Stockpile

There’s been a serious trend among preppers for the past few years to stock up on gold and silver. And while there are certainly advantages to having a gold bar or two in your possession, far too many people are neglecting to acknowledge the importance of having some good old fashioned cash on hand.

Granted, in a true SHTF scenario, even cash will soon begin to lose its value as people will eventually revert back to bartering and trading of services. But what about scenarios that don’t involve a complete and extreme collapse? When it comes to dealing with natural disasters or other scenarios that might take the electronic grid down for anywhere from a few days to a few weeks, there are very real benefits to having cash readily available on hand.

And you don’t have to go very far back to see this theory in action, either. As recently as Hurricane Katrina’s devastation in New Orleans and Hurricane Sandy on the East Coast, thousands (if not millions) of people found themselves armed with nothing but useless plastic cards as electricity went down, making electronic purchases impossible. That meant that people who didn’t have cash readily available had no way of purchasing basics like food, water, or fuel. There were no reports of local merchants and grocery stores accepting hunks of gold or silver in exchange for bread and cereal.

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The moment the power grid goes down–locally or nation-wide–your credit and debit cards become nothing more than a hunk of molded plastic. Which is why you should keep enough cash safely and readily available to handle at least a few days in a hotel, groceries, gas, and any other necessities. Even in the event of a total financial collapse, it will take the public a while to accept that currency has become devalued, and people will be desperate to sell things for cash.

Cash Stockpile

So what can you do to build up a cash stockpile to match your canned goods and first aid supplies? For starters, remember that it will take time. You should never neglect to pay your bills to stash the cash. What you can do however, is take a closer look at your monthly expenditures and decide where you can carve out some wiggle room.

cut costFor example, switching from a full cable package to one with fewer channels, ditching the expensive cell phone plan for a more streamlined one, or even making the simple swap between eating out and brown bagging your lunch are all easy ways to carve out as much as a few hundred dollars a month. Tuck that money away, and make sure you don’t touch it unless it’s a dire emergency.

Additionally, you can take the budget you normally allocate towards prepping and redirect it for a few months. In other words, take a break from building up your stockpile for a couple of months and save the money that would normally go towards supplies in your untouchable emergency cash stash, instead. It will take some time, but by cycling the two stockpiles this way, you can build both up together.

By FamilySurvivalPlan Contributor

A Massive Electromagnetic Pulse Could Collapse The Economy In A Single Moment

A Massive Electromagnetic Pulse Could Collapse The Economy In A Single Moment

What would you do if all the lights went out and they never came back on?

That is a question that the NBC series “Revolution” asks… but most people have no idea that a similar thing could happen in real life at any moment.  A single gigantic electromagnetic pulse over the central United States could potentially fry most of the electronics from coast to coast if it was powerful enough.  This could occur in a couple of different ways. 

If a powerful nuclear weapon was exploded at a high enough altitude, it could produce an electromagnetic pulse powerful enough to knock out electronics all over the country.  Alternatively, a massive solar storm could potentially cause a similar phenomenon to happen just about anywhere on the planet without much warning.  Of course not all EMP events are created equal.  An electromagnetic pulse can range from a minor inconvenience to a civilization-killing event.

It just depends on how powerful it is.  But in the worst case scenario, we could be facing a situation where our electrical grids have been fried, there is no heat for our homes, our computers don’t work, the Internet does not work, our cell phones do not work, there are no more banking records, nobody can use credit cards anymore, hospitals are unable to function, nobody can pump gas, and supermarkets cannot operate because there is no power and no refrigeration.  Basically, we would witness the complete and total collapse of the economy.  According to a government commission that looked into these things, approximately two-thirds of the U.S. population would die from starvation, disease and societal chaos within one year of a massive EMP attack.  It would be a disaster unlike anything we have ever seen before in U.S. history.

Most people are completely unaware regarding what an EMP attack could do to this nation, but the threat is very real.  There was even a congressional commission that studied the potential effects of an EMP attack on the United States for eight years

The US Congress in 2000 established the Congressional Commission to Assess the Threat to the United States from Electromagnetic Pulse (EMP) Attack. In 2004, the committee produced a 70-page executive summary on the EMP threat, and it issued a final report on the matter in 2008. According to the report, “several potential adversaries have or can acquire the capability to attack the United States with a high-altitude nuclear weapon-generated electromagnetic pulse (EMP). A determined adversary can achieve an EMP attack capability without having a high level of sophistication.”

Dr. William Graham was the chairman of that commission, and he says that an EMP attack could knock the United States back into the 1800s in just a single moment

An EMP attack “could not only take down power grids, which are fragile anyway in this country, and telecommunications networks, and financial networks, and traffic controls and many other things, but in addition, there is a very close interrelationship among those national infrastructure capabilities,” Graham says.

“So, for example, we need telecommunications to re-establish the power network, and we need the power network to keep telecommunications going for more than a few hours. And we need the financial network to continue to operate to maintain the economy, we need the transportation system, roads, street lights, control systems, to operate just to get people to the failed power, telecommunication and other systems,” he adds.

Life after an EMP attack “would probably be something that you might imagine life to be like around the late 1800s but with several times the population we had in those days, and without the ability of the country to support and sustain all those people,” Graham says. “They wouldn’t have power. Food supplies would be greatly taken out by the lack of transportation, telecommunication, power for refrigeration and so on.”

Unfortunately, very few of us are equipped to survive in such an environment.  We have become incredibly dependent on technology, and most Americans would have no idea how to do something as simple as growing their own food.  Most people would be in a very serious amount of trouble in a very short period of time.

An article by Mac Slavo detailed some of the things that we could expect in the aftermath of a massive electromagnetic pulse…

The first 24 – 48 hours after such an occurrence will lead to confusion among the general population as traditional news acquisition sources like television, radio and cell phone networks will be non-functional.

Within a matter of days, once people realize the power might not be coming back on and grocery store shelves start emptying, the entire system will begin to delve into chaos.

Within 30 days a mass die off will have begun as food supplies dwindle, looters and gangs turn to violent extremes, medicine can’t be restocked and water pump stations fail.

Are you prepared for such an event?

If not, why not?

And actually, high altitude nuclear explosions and solar storms are not the only things that could produce sizable EMP bursts.

For example, the U.S. military has developed “a directed electromagnetic pulse gun” that can take out all electronics within a limited area.  This kind of weapon can be fired from a plane, a cruise missile or even a drone.  The following is from a recent WND article

A pre-programmed cruise missile not too different from a drone has been proven to be capable of blasting out an EMP-type microwave that was able to destroy personal computers and electrical systems inside a building over which it was flying.

The U.S. Air Force and its contractor Boeing have created the High-powered Microwave Advanced Missile Project, or CHAMP, which was just tested over a Utah desert.

Other nations such as Russia and China are busy developing similar weapons.  The ability to instantly take out the electronics of the enemy would be a very powerful advantage.

Even North Korea has been working on this kind of technology.  According to Newsmax, it is believed that they may have tested a “Super-EMP” weapon back in 2009

North Korea’s last round of tests, conducted in May 2009, appear to have included a “super-EMP” weapon, capable of emitting enough gamma rays to disable the electric power grid across most of the lower 48 states

As this technology becomes more widespread, it will soon be accessible to just about everyone.  You don’t actually need a nuclear weapon to set off a massive electromagnetic pulse.  A non-nuclear pulse generator can do the same thing.  If you set one off next to a power station you could potentially take out the electrical grid for an entire region.

It’s been theorized that enemies could even use portable radio frequency weapons to do a tremendous amount of electromagnetic damage over a more limited area.  The following is from a recent article by F. Michael Maloof

Such an individual with a penchant for electronics can pull together components from a Radio Shack or electronic store – even order the components off of selected Internet websites – and fashion a radio frequency, or RF, weapon.

As microprocessors become smaller but more sophisticated, they are even more susceptible to an RF pulse. The high power microwave from an RF weapon produces a short, very high power pulse, said to be billions of watts in a nanosecond, or billionths of a second.

This so-called burst of electromagnetic waves in the gigahertz microwave frequency band can melt electrical circuitry and damage integrated circuits, causing them to fail.

What’s most alarming is that constructing a radio frequency weapon is, on the relative scale of things, not that difficult.

People need to realize that we live in a world where technology is absolutely exploding and we are dealing with threats that previous generations never even dreamed of.  As the world becomes increasingly unstable, it is inevitable that these kinds of weapons will be used.

It is only a matter of time.

What will life look like after an EMP weapon is used?

That is something to think about.

And we also need to keep watching the sun.  It could produce a massive electromagnetic pulse at literally any moment.  As I have written about previously, scientists tell us that it is only a matter of time before we are hit with a technology-crippling solar super storm.

Most people don’t even realize that the massive solar storm of 1859 fried telegraph machines all over Europe and North America.  If such a storm hit us today, the damage would potentially be in the trillions of dollars.  The following is from a recent New York Times article

A powerful solar (or “geomagnetic”) storm has the potential to simultaneously damage multiple transformers in the electricity grid and perhaps even bring down large sections of it, affecting upwards of a hundred million people in the United States for many months, if not years.

These huge transformers are expensive and difficult to replace, and not many are stockpiled in the United States for an emergency. In the worst case, the impact would be devastating: An outage could cost a few trillion dollars, with full recovery taking years. Not only would parts of the grid be compromised, but telephone networks, undersea cables, satellites and railroads also would be affected.

A 2008 National Academy of Sciences study warned that “because of the interconnectedness of critical infrastructures in modern society,” the “collateral effects of a longer-term outage” would likely include “disruption of the transportation, communication, banking and finance systems, and government services; the breakdown of the distribution of potable water owing to pump failure; and the loss of perishable foods and medications because of lack of refrigeration.”

By the way, 2013 is the peak of the current solar cycle.  So we are moving into a time period when conditions will be very favorable for solar storms.

Let us hope that we are never hit with a massive electromagnetic pulse that is strong enough to take out all of our electronics.

But if it did happen, and all the lights went out for good, what would you do?

Please feel free to share your thoughts by leaving a comment below…

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By Michael Snyder – www.theeconomiccollapseblog.com

Edit – MFSP

Epidemic Of Hunger: New Report Says 49 Million Americans Are Dealing With Food Insecurity

Epidemic Of Hunger - New Report Says 49 Million Americans Are Dealing With Food Insecurity

If the economy really is “getting better”, then why are nearly 50 million Americans dealing with food insecurity?  In 1854, Henry David Thoreau observed that “the mass of men lead lives of quiet desperation”.  The same could be said of our time.  In America today, most people are quietly scratching and clawing their way from month to month.  Nine of the top ten occupations in the U.S. pay an average wage of less than $35,000 a year, but those that actually are working are better off than the millions upon millions of Americans that can’t find jobs.  The level of employment in this nation has remained fairly level since the end of the last recession, and median household income has gone down for five years in a row.  Meanwhile, our bills just keep going up and the cost of food is starting to rise at a very frightening pace.  Family budgets are being squeezed tighter and tighter, and more families are falling out of the middle class every single day.  In fact, a new report by Feeding America (which operates the largest network of food banks in the country) says that 49 million Americans are “food insecure” at this point.  Approximately 16 million of them are children.  It is a silent epidemic of hunger that those living in the wealthy areas of the country don’t hear much about.  But it is very real.

The mainstream media and our politicians continue to insist that “things are getting better”, and that may be true for Wall Street, but the man who was in charge of the new Feeding America report says that the level of suffering for the tens of millions of Americans that are food insecure has not changed…

Nothing is getting better,” said Craig Gundersen, lead researcher of the report, “Map the Meal Gap 2014,” and an expert in food insecurity and food aid programs.

Let’s stop talking about the end of the Great Recession until we can make sure that we get food insecurity rates down to a more reasonable level,” he added. “We’re still in the throes of the Great Recession, from my perspective.”

In fact, a different report seems to indicate that hunger in America is actually getting worse…

Children’s HealthWatch, a network of doctors and public health researchers who collect data on children up to 4 years old, says 29% of the households they track were at risk of hunger last year, compared with 25% the year before.

If someone tries to tell you that “the economy is getting better”, that person is probably living in a wealthy neighborhood.  Because those that live in poor neighborhoods would not describe what is going around them as an “improvement”.

In particular, many minority neighborhoods are really dealing with extremely high levels of food insecurity right now.  The following comes from a recent NBC News article…

“Minorities are facing serious hunger issues. Ninety-three percent of counties with a majority African-American population fall within the top 10 percent of food-insecure counties, while 60 percent of majority American Indian counties fall in that category”

But if you don’t live in one of those areas and you don’t know anyone that is facing food insecurity, it can be difficult to grasp just how much people are actually suffering out there right now.

For example, consider the story of a young mother named Tianna Gaines Turner…

Tianna Gaines Turner can’t remember the last time she went to bed without worrying about how she was going to feed her three children.

She can’t remember the last time she woke up and wasn’t worried about how she and her husband would make enough in their part-time jobs to buy groceries and pay utilities on their apartment in a working-class section of Philadelphia.

And she can’t remember the last time she felt confident she and her husband wouldn’t have to skip meals so their children could eat.

Have you ever been in a position where you had to skip meals just so that other family members could have something to eat?

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I haven’t, so it is hard for me to imagine having to do such a thing.  But there are millions of parents that are faced with these kinds of hard choices every day.

Things can be particularly hard if you are a single parent.  Just consider the story of Jamie Grimes…

After Jaime Grimes found out in January that her monthly food stamps would be cut again, this time by $40, the single mother of four broke down into sobs — then she took action.

The former high school teacher made a plan to stretch her family’s meager food stores even further. She used oatmeal and ground beans as filler in meatloaf and tacos. She watered down juice and low-fat milk to make it last longer. And she limited herself to one meal a day so her kids — ages 3, 4, 13, and 16 — would have enough to eat.

I have such admiration for working single mothers.  Many of them work more than one job just so that they can provide for their children.  It can be absolutely frustrating to work as hard as you possibly can and still not have enough money to pay the bills at the end of the month.

Those that believe that the economy has gotten “back to normal” just need to look at the number of women that have been forced to turn to government assistance.  As I mentioned the other day, a decade ago the number of American women that had jobs outnumbered the number of American women on food stamps by more than a 2 to 1 margin. But now the number of American women on food stamps actually exceeds the number of American women that have jobs.

The truth is that we are nowhere close to where we used to be.  The last major economic downturn permanently damaged the middle class, and now the next major economic downturn is rapidly approaching.

Right now, there are nearly 50 million Americans that are facing food insecurity.  When the next economic crisis strikes, that number is going to go much higher.

There is going to be a great need for love and compassion in this country during the hard times that are coming.  Instead of just cursing the darkness, I hope that you will choose to be a light to those that desperately need it.

By Michael Schneider

www.theeconomiccollapseblog.com

If you want to learn how to combat the effects of the next economic collapse read more on Conquering the Coming Collapse.

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