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Wednesday, March 23, 2022

How to live through economic meltdown and hyperinflation

Poor Man Survival

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A Digest of Urban Survival Resources

How to live through economic meltdown and hyperinflation

Financially, it seems as if the end is near. Economic Armageddon is upon us, as the Federal government lubricates the moving parts on the printing presses and new money begins to fly out.

In his special report, Shadow Government Statistics: Analysis Behind and Beyond Government Economic Reporting, John Williams wrote,

The U.S. economy is in an intensifying inflationary recession that eventually will evolve into a hyperinflationary great depression. Hyperinflation could be experienced as early as 2010, if not before, and likely no more than a decade down the road. The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-money special interests, and gross mismanagement.

It is now a decade down the road, and this was written before the U.S. Congress passed and President Barack Obama and subsequently Donald Trump and now Joe Biden signed their multi-trillion-dollar economic stimulus bills into effect.

The amount of money being spent is unprecedented in human history.

So what will the enormous spending program do? It will push simple inflation (a continuing rise in prices due to an increased volume of money and credit relative to available goods and services) into hyperinflation.

That's because fiat money implies by its definition that it self-destructs through depreciation (inflation). Anything that can be created to infinity with political incentive eventually becomes worthless. There are no exceptions. For paper money to work, its issue must be equal to the production of goods and services.

Does anyone think that is the case today? Dream on, if you do.

There is plenty of historical precedent for prolificacy of money creation bringing hyperinflationary chaos which then collapses into depression. The stark reality is that the public has no clue until a collapse arrives and completely destroys their assets and their lives.

A currency collapse is progressing every day with each new dollar that is printed. Now is the time to realize it, rather than later when chaos reigns and everyone is trying to survive at the same time.

We can't have wide open money printing and have a viable and strong currency at the same time. Again I would say dream on if you think so.

So, what are our predictions? Long-dated Treasurys will show huge losses when interest rates begin to rise. In time, Treasury securities will reach "junk status," and in the long term all U.S. debt will become junk. This outcome is near.

You may ask, "But Bob, why would the Federal government leave us vulnerable to such a dreadful occurrence as a spiraling crescendo of hyperinflation?"

Does greed, corruption and general cluelessness sound like a good enough reason?

Even at this time, Treasurys pay less than the rate of official inflation, never mind the unofficial inflation numbers. Millions of retired people are now experiencing a lower standard of living.

The same is true with certificates of deposit, which pay an interest rate less than the rate of inflation. In other words, if you have your money stashed in what you believe is a safe return CD, you are losing money every day.

Though most are oblivious, U.S. dollar savers are being routed. Savings accounts are paying interest rates less than the devaluation of the dollar. This U.S. dollar crash syndrome is an autoimmune disease where people (the rich and the poor) are impoverished because they were thrifty and saved.

But saving your money by putting it under the mattress is no good either. As the value of the dollar shrinks so does the value of your savings.

With depreciating currency comes rising prices. Depreciating currency brings a lower standard of living and equally a permanent loss of asset values. Look to Venezuela as a current example. And Zimbabwe before that. In December 2008, inflation was over a trillion percent and the economy had been "dollarized," signifying that local currency was virtually unacceptable as legal tender. But Zimbabwe is not the only modern example of an economy ruined by government overspending. In fact, there are many other examples:

Turkey, 2007 — Turkey has suffered from chronic inflation for decades. In 1980, one U.S. dollar was worth 90 Turkish lira. By 2004, a U.S. dollar was worth 1.3 million Turkish lira. As a result, in 2007 the government simply declared a revaluation of the Turkish lira. One million Turkish lira would, from then on, be worth only 1 lira.
Romania, 2005 — In 1998, the highest denomination in Romania was 100,000 lei. By 2005 the highest had become 1 million lei. The Romanian government then devalued its currency, declaring that one new leu would be worth 10,000 lei.
Argentina, 2001 — Overspending by the Argentine government resulted in massive inflation in the 1980s and '90s. By 1992, one new peso was worth 100 billion pre-1983 pesos. (Because the old peso had been devalued so much, if Argentines had stuffed their pesos under the mattress in 1982 they would have ended up with nothing.)
Russia, 1994 — Following the collapse of the Soviet Union, the new Russia saw annual inflation as high as 2,500 percent in 1992. By 1994 it had dropped to 850 percent because of a tightening of monetary policy and the failure to pay wages to workers in state enterprises, a policy that kept prices low by depressing demand. The value of the ruble declined from 40 rubles to the dollar in 1991 to 30,000 rubles to the dollar by 1999.

If the annual cost of living increases just 5 percent or 6 percent, the purchasing power of money will rapidly vanish. And because of negative real interest rates, consumer price inflation will accelerate, a fact not known by the public. The real spending power of households whose income depends on fixed interest instruments will be cut, reducing their standard of living.

For example, in 1933 the Consumer Price Index (the price of a basket of common goods purchased by the average consumer) was 12.8. In 2008 the CPI was 225. In other words, that same basket of goods has increased from just under $13 to $225. Currently, it's 271, and that's without goods and services that actually price inflate — because they have been taken out of the CPI. Who knows what it would actually be, comparatively speaking.

But it would be high, as anyone who has gone to the grocery store or to buy gas has figured out. Once again, inflation is starting to outpace economic predictions.

As prices rise and the lower classes find it increasingly more difficult to buy necessities, O'Bidenomics will increase taxes on the producers and savers even more, hoping to spread the wealth around. As the spending kicks in, the formerly profligate-spending conservatives will claim to have had an epiphany. They will kick and scream at the thought of running up more debt than they already have caused. But that's a farce.

We are still trying to understand America in terms of capitalism and free enterprise, when in fact America is now a socialist country with a pretty face called democracy.

All fiat systems in history have been in socialist states, no matter the national pretense, as in our term, democracy. Socialist states have a history of suppressing their own people. And all socialist fiat money states/countries transfer wealth and production to the state without payment. Of course, as in America today, this transfer takes place via the depreciation of paper money. The owner of the money printing press owns and controls all wealth and production.

How to prepare

You don't have to just sit by and do nothing. There are simple, easy, inexpensive steps you can take right now to protect your family.

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This manual is chock-full of proven strategies, techniques and information that can make all the difference during the financial emergency that is inflation, or hyperinflation. In fact, my newly-updated and revised Ultimate Hyperinflation Defense Manual can make your life better even if, God willing, we sidestep some of the economic catastrophes that I fear are coming.

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The global uprising begins: Fiat currencies melt down while food prices soar

On top of the mad money printing, we now have a devastating supply chain collapse of food commodities, natural gas and fertilizer due to the US and NATO pushing Russia into a new world war.

Get full details (and survival strategies) in today's feature article and podcast here.

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Ever since Edward Snowden blew the whistle on how much our government and corporations spied on us, and just how much data they have on each person, privacy has become a critically important topic. Yet, surveys show that average Americans are concerned, but not enough to take action. In other words, a lack of privacy worries …

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Blackouts across entire states?

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Tuesday, March 22, 2022

The stagflation trap will lead to food rationing

Poor Man Survival

Self Reliance tools for independent minded people…

www.poormansurvivor.net

ISSN 2161-5543

A Digest of Urban Survival Resources

The stagflation trap will lead to Universal Basic Income & food rationing

This past week during a conference discussing Biden's "Build Back Better" scheme, House Speaker Nancy Pelosi was confronted with questions on skyrocketing inflation. After referring to higher gas prices as the "Putin Tax," she went on to offer perhaps the dumbest (or most insidious) explanation on the causes of inflation that I have ever heard. She stated:

"When we're having this discussion, it's important to dispel some of those who say, well it's the government spending. No, it isn't. The government spending is doing the exact reverse, reducing the national debt. It is not inflationary."

Anyone with a basic understanding of economics and how central banks operate must have felt their brains explode when they heard this, I know I did. But before I get into the numerous reasons why this claim is completely false in every way, I want to give a warning... it's very easy in this situation to assume that Pelosi and even Biden are making these arguments because they are too stupid to grasp the fundamentals of debt creation, money velocity and fiat. That said, never mistake evil for mere ignorance.

All representatives of the White House are briefed by economic experts well before they answer any questions on inflation, and the things they say have been carefully scripted. It's possible Pelosi mixed her lies up a little bit, but the narrative the establishment is trying to promote is well planned. Asserting that money creation is a counterbalance to inflation instead of the cause is not brilliant, but it's not designed to convince many people, only create confusion.

Let's not forget that only last year these same people were telling the public that inflation was purely "transitory" and that there was nothing to worry about. Now they are trying to cover their tracks and the culpability of the Federal Reserve. I believe the goal here is to simply stall for time until the stagflationary collapse unfolds. They have the perfect scapegoat as they launch an economic war with Russia (and likely China in the near term), and the effects of this war will hurt the U.S. and Europe far more than many realize.

So, to quickly break down Pelosi's bizarre statement I will make a couple of root observations:

Paying down the national debt has nothing to do with reducing inflation. Even if you could somehow gather enough assets to pay off the national debt without creating new dollars from thin air the current inflationary problems would persist. There would still be the matter of the tens of trillions of dollars already fabricated and floating around the global economy. Inflation is directly related to money supply and money velocity. The national debt is secondary to the issue.

Now let's ask the most obvious question: If government spending "reduces the national debt" by paying it down, then why hasn't the national debt ever gone down?

The Fed and the U.S. government created over $6 trillion in fiat money in 2020 alone, and the national debt only went higher. In fact, the explosion of the national debt correlates directly to the number of dollars created by the Federal Reserve to supply various stimulus policies and bailouts over the years. The national debt in 2008, at the onset of the credit crash, was around $10 trillion. It took hundreds of years to reach that level. In the span of only 14 years of Fed money creation, the debt has now tripled to over $30 trillion.

I'll say it again... government spending and Fed stimulus has tripled the size of our national debt in less than 14 years. And, of course, inflation has spiked as the number of dollars injected into the global system causes the buying power of our currency to decline dramatically. More fiat dollars equal less buying power. This is reality.

Also, using Russia as a scapegoat just doesn't hold up. Russian crude oil only makes up 3 percent of U.S. imports. Therefore, there is no way that sanctions on Russian oil are the cause of rising prices. Inflation was hitting 40-year highs back in December of last year, well before the war in Ukraine. News on Federal Reserve's interest rate hikes moves oil far more than news on Ukraine.

To summarize, I have a special message for Nancy Pelosi: Shut up you blood-sucking crone. The American people are smarter than you, and your propaganda script is full of holes.

Onward to more important issues...

This narrative is not only about protecting the Biden administration, but also about protecting the central banks. As former Fed Chair Alan Greenspan once openly admitted, the central bank answers to no one, and that includes government officials. Many theorize that it is actually the central banks and international banks that make the majority of policy decisions for government, and politicians have very little say in matters. I'm inclined to agree given the number of banking elites and globalist Council on Foreign Relations members that seem to permeate every single presidential cabinet (this includes Trump's cabinet as much as Biden's).

Biden is an empty shell of a man barely able to maintain a semblance of sanity, who do you think really runs the country?

I have been writing a lot lately about how establishment elites and globalists actually benefit greatly from a stagflationary crisis, as long as they are able to divert blame to other sources and are not targeted for retribution by the public. Some of these benefits include a cover event for an agenda that the World Economic Forum calls the "Great Reset," which is essentially just another name for the "New World Order."

Isn't it marvelous that the hailstorm of COVID fear porn that was bombarding Americans only a few months ago has now suddenly vanished? What happened? Well, the establishment was defeated, that's what happened. With conservatives and moderates in red states in the U.S. and in nations around the world fighting back against the mandates, the globalists must have realized the battle was lost. Suddenly all talk of vaccine passports and medical tyranny is gone.

I realize there are some people out there that give the globalists too much credit and still argue the COVID scheme was some kind of success. These people are wrong. If you want to see what success looks like, go to China, where hundreds of millions are still suffering from lockdowns and no one can do anything without an up-to-date vaccine passport and QR code. In China, vax passports are also used for tracking the population as well as an element of their social credit scores. This is what the globalists wanted for all nations including the U.S., and they didn't get it. Therefore, it's on to the next crisis...

The stagflation threat worries me more than any other for a number of reasons, and it's not just because of the potential for extreme poverty. As we all know, the strategy of "order out of chaos" is about creating enough desperation within a target population that the people are willing to give up their freedoms in exchange for a semblance of safety and normalcy. But what specific controls would the establishment seek out?

Stagflation has the ability to trigger much higher prices in necessities, while it simultaneously drags GDP down along with wages, jobs, manufacturing, etc. There is also the very real threat of government price controls, which would suffocate production and reduce the supply of goods even further. There are two initiatives within the WEF's Great Reset agenda that parallel stagflation almost exactly and I predict we will be hearing about them often in the coming year.

First, there is the concept of Universal Basic Income (UBI). We heard a lot about this a few years ago, but the idea didn't stick too well with the American public. The truth, however, is that we already had UBI for a time in the form of "COVID stimulus checks." This helicopter money was funded by over $6 trillion in central bank fiat created from nothing, and then directly injected into citizen accounts. It was barely enough to live on by itself, but in conjunction with other welfare programs and unemployment checks, some people were living the easy life at home for well over a year.

This small taste of UBI might have given people the wrong impression about such stimulus programs. By themselves, the COVID checks would not have been enough to keep people housed and fed; the standard of living for the average person would have to fall dramatically for UBI to work at all. Enter stagflation...

With economic disaster already crushing our living standards, it could be easier for the establishment to lure the public into UBI. Along with communist-style price controls across the board (and a reduced population due to starvation and poverty), the public would be able to survive, but barely. There would no longer be such a thing as "personal wealth," only the scraps that governments and bankers are willing to throw people. On top of that, resistance to tyranny would be nearly impossible, because once the government becomes mommy and daddy as the only source of food and housing for the citizenry, they are far less likely to stand against any abuse the establishment wants to dish out.

UBI is a candy-coated trap that breeds dependency in a population.

This leads us into the second WEF program, which is the concept of the "shared economy." The danger here involves rationing. A government cannot institute UBI measures during a stagflationary crisis without also instituting price controls, because otherwise the fiat stimulus used to provide the UBI checks would only create more inflation in prices. If UBI is meant to offset inflation but creates more inflation, then UBI becomes useless. This is another little fact that people like Pelosi will try to gloss over when they claim that money printing helps "fight inflation."

When price controls are implemented, manufacturing will implode further, because price controls mean producers of necessities will not be able to make much of a profit (or no profit at all). There will be no incentive to produce among the people that actually know how to produce, and these people are not easy to replace. The supply of goods will not be able to meet demand. Naturally, the government will take the opportunity to limit the number of goods any single person or family is allowed to purchase or stockpile through rationing cards.

These kinds of measures have been used in the past, usually during wartime. But in this case, the rationing will be digital and permanent, and it will be designed to further control food and other goods as a means to prevent rebellion by the public. If you can't store more than a week's worth of necessities at any given time, then your ability to defy the government as they cut off your UBI is nonexistent unless you know how to live off the land.

I will cover solutions to these problems in an article coming soon. I think it's important that people within the liberty movement and outside of the liberty movement start thinking about the scale of the crisis we are facing. It's not just about economic disaster and adapting to the loss of supply chains and stable currencies, it's also about fighting back against the inevitable government response to the crisis. They will try to take advantage of people's pain and use it to lure those people into slavery. This cannot be allowed to happen.

To truth and knowledge,

Brandon Smith

USEFUL RESOURCES

6 Years Of Being Manipulated By Manufactured Waves Of Outrage With No End In Sight

Are you starting to notice a pattern by now? For the past six years, the American people have been emotionally manipulated by what I call “manufactured waves of outrage”. Once the corporate media identifies a trigger, it will obsessively focus on it for weeks or months on end, and the narrative that develops will be echoed and magnified by millions upon millions of social media denizens. Before too long, much of the population is whipped up into an irrational emotional frenzy, and that frenzy is used to move certain agendas forward.

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21 Things You Should Have In Your Vehicle At All Times

You never know when something bad may happen. What if you're stranded in the middle of nowhere due to engine failure? What if the grid collapses and chaos envelops your neighborhood while you’re away from home?

This is why you need to always be prepared, and part of this preparation means having emergency items in your car. But which specific items should you have in your car at all times? That’s what we’re going to talk about today...

21 Things You Should Have In Your Vehicle At All Times

The world we used to know is rapidly unraveling….