Steps You Can Take to Protect Yourself From 'Hurricane Reality'
by Anthony Wile
The Daily Bell
by Anthony Wile: As
America Continues to Tank, What Will You Do?
I discussed the nature of the "time taxers" and how easy
it is for people to blindly be lulled into living their life in
service of the State or those who control it. And in that
editorial I suggested that time, being the most precious commodity
of all, is ours and ours alone to spend as we individually see fit
but that it takes knowledge of the world around us to separate
the wheat from the chaff, so to speak.
that, this week's editorial will deal with some personal ideas and
beliefs with respect to how people can protect their wealth amidst
a global decline in confidence in fiat currencies one that
is justly going to propel the downward trajectory of them all and
none more rapidly than the US dollar.
Now it has
been said many times before that knowledge is power. And certainly
that is true. However, I would argue that it is a certain type of
knowledge free-market thinking in its purest form
that enables one to perform a macro assessment of the world around
them and to adequately predict the likely impact of major geopolitical
actions and events on the overall business cycle. It involves assessing
the dominant social themes being spun by the parasites who desire
to siphon off the productivity of others by promoting the masses
on an array of solutions to their manufactured fear-based problems.
It involves a realistic assessment as to whether the larger segment
of the population that tend to "dream" rather "think"
will hand over their wealth and savings to the "dream weavers."
Yet far too
often I find people getting lost in that assessement process as
they get stuck looking at individual trees in the hope of making
a quick trade and they forget about the big forest. And the key
to making good life decisions is to gauge the likely impact of the
rhetoric that filters through the mainstream media airwaves and
the likely emotional responses of the non-thinkers.
Now, I know
that there are many people who "trade the market" and
fashion themselves as market timers. And some, purportedly, are
quite good at it. But protecting one's wealth and investing in front
of major trends is what this article is about not identifying
short term market swings. I'll leave that up to the vast number
of commentators and newsletter writers who are apparently much better
at that than I.
a look at some larger impacting issues of the past week and how
they may affect the greatest financial trend of the past 100 years
the demise of the US dollar.
debt ceiling was raised by $2.1 trillion with NO meaningful spending
cuts at all.
really think this wouldn't happen? We have said all along that the
US dollar itself is the root of the US debt problem, along with
public complacency. Until the cancer is addressed you can expect
the disease to spread. The people of the United States have sold
short their liberties and freedoms by allowing Money Power to take
control of their currency (via the Federal Reserve), their government
(ever since the American Civil War), their public schools, their
mainstream media, and even their entertainment needs. Americans
are addicted to a caretaker society one that sounds nice
on paper, but in reality is incapable of honoring all of its debt-based
has been commented on extensively over the course of this past week
by myself and several other commentators here at the DB. So suffice
to say, the US dollar was not saved from a default. The process
of ongoing devaluation has just been continued and there
is no desire by the elected representatives (go figure) of the American
people to address the currency/central banking problem. The dollar's
purchasing power will continue to trend down, ushering in an era
of inevitable social chaos.
Next, we have
sovereign debt concerns spiking in Europe. Many mainstream commentators
refer to it as a "contagion that has spread" from the
fallout of the US debt ceiling debates. Really? Is that what happens?
Hmm, well we have a slightly different take on that and believe
and wonder what exactly it is that has "spread."
To simply say
that the concern has spread is to ignore the real underlying causes
for concern. And it all comes down to truth and understanding.
A lie is a
lie. Fraud is fraud. And a PONZI scheme is just a combination of
lies and fraud that is somehow believed by enough people to maintain
the illusion of its credibility. The euro is just another fiat currency
that only maintains its purchasing power as long as the true nature
of money is not understood by the population who are expected to
slave away their time.
the soverign debt issues in Europe will not go away is the same
reason that the US economy's woes cannot be fixed because
alternative media is opening people's eyes to the nature of the
world's central bank controlled money game and they do not
like what they see. People are losing confidence as the Internet
Reformation rolls onward and, as their confidence wanes, they are
starting to panic.
of Money Power in maintaining the fiat-money game is predicated
on maintaining people's confidence. It simply must be maintained
in order to support an ever-increasing demand for debt.
The US dollar
debt-ceiling debate, as I stated in an RT interview on Monday (You
can watch it here), hopefully has opened more people's eyes
to the nature of the problem. From there it is up to each person
to employ human action and take the necessary steps to get out of
harm's way. We'll look at how in a moment.
Friday afternoon, S&P downgraded US debt from a AAA rating to
AA+. Big surprise? Not here folks. I will repeat what I said in
that same RT interview I referred to above when questioned about
the possibility of a downgrade of US debt.
the US debt system is a PONZI scheme that should have been downgraded
long ago. The use of the term "risk-free" to brand US
debt is a complete misuse of the term and for most free-market thinkers,
the need to hear a mainstream rating agency say so is irrelevant.
I mean think
about it for a second. If you are making sensible adjustments in
your life to protect your wealth from a process of devaluation that
steals your life's productivity from you, do you really care what
a mainstream rating agency that's designed to protect the system's
integrity has to say?
line is this S&P, Moody's, Fitch et al., are all going
to lag the real market the one that has gold up some 50%
in purchasing power in the last three ears alone against the US
dollar. Their prognostications will always lag because they are
not in the business of telling the truth. If they were, where were
they right up until the 11th hour of the Enron collapse? How about
the CDS market collapse... where were they in advance of that one?
I believe their pronouncement is far too little and far too late.
If they want to give people some real indication of the worthiness
of US debt, they should just come out and call it like it is: a
rapidly devaluing debt system that is built on an unrestrained currency
unit the US dollar whose purchasing power will be
inflated/eroded into oblivion, along with the wealth and savings
of America's middle class. It is a system that is built on false
hope and empty promises. It is a PONZI scheme that cannot sustain
the headwinds of truth that are preceding the worst financial hurricane
to ever hit the world's population we'll name it "Hurricane
There are things
people can do to protect themselves from this inevitabilty and position
themselves for the fallout phase of this catastrophe. Here I am
referring to individual steps a person can take, not collective
The first thing
is to transfer out of US dollars and into gold and silver. Both
I believe are essential. The value of gold, historically, has proven
to be an ideal way of protecting wealth and facilitating large investments
and purchases, while silver has often played the role of the people's
money better suited to facilitating smaller purchases.
it is important that people hold as much of their wealth and savings
in these instruments, in my opinion. Having said that, daily commerce
is still transacted in fiat money, although alternatives such as
James Turk's GoldMoney are gaining in popularity. But a realistic
balance needs to be struck between savings that can be comfortably
transferred out of harm's way and that which is needed to meet life's
current and short-term needs in the greater mainstream market place
something GoldMoney has yet to replace (although we wish
The trend for
both gold and silver is higher, in terms of purchasing power measured
against ALL fiat currencies. So converting into any other currency
at this time is not seeking asset protection and is more in tune
with speculation. Euros, Swiss francs, Japanese yen, Canadian dollars
they are all leveraged to the US dollar and none of them
offer the kind of purchasing power protection afforded by gold.
If you decide
to transfer into honest money, consider only buying physical metal
and taking delivery. By taking delivery I do not necessarily mean
you need to bring all of it to your home and shove it under your
mattress. Clearly, when Hurricane Reality lands there will be a
lot of social chaos and crime. This will undoubtedly make markers
of those known to hold precious metals. Therefore, keeping quiet
about your holdings is prudent, but also diversifying the storage
of the metals is, too.
When I refer
to "make markers" of those holding gold and silver, I
am not necessarily referring to your neighbors, although that is
a consideration too, but I am mostly referring to your government's
ability to use propaganda and force in an attempt to nationalize
gold as a monetary instrument history repeats? The last time
that happened was in 1933, and it stayed that way for four decades.
Do you really think the US government wouldn't try this again in
the midst of a collapse in confidence?
The truth is,
who knows? But better to be prepared than not. I suggest people
maintain a balance of gold and silver bullion that's locally accessible
and another holding of gold that is secured outside of America's
shores. Here I recommend my friend Frank Suess and his team at BFI
Capital Group. Their Global Gold Program is the best offshore alternative
I know of at this time for the simple acquisition and storage of
Now I know
there are many who are quick to draw their guns on this one and
suggest that gold away is no different than gold at home. I disagree
on that. Force is much easier applied to the seizure of your wealth
domestically than if held abroad. For one thing, assuming you own
physical gold and stored it in a private Swiss vault, the US authorities
will have a very difficult time getting their hands on that gold
unless you cave in to domestic pressure and request its repatriation.
Remember, there is nothing illegal about buying and storing physical
gold abroad. If you want to know more about Frank's program, click
into another life-planning idea that we believe makes sense
and not just for Americans. Consider that when Hurricane Reality
hits America's shores, that the area in which you live may not look
quite the same for an extended period of time. Consider that irrationality
will rule, as Gustave Le Bon's adequately described "Crowd
Mentality" takes hold of the disgruntled masses. Think about
that for a moment and you may decide that, to whatever degree you
can afford it, you may want to consider getting a "hip pocket"
I expect swords of patriotism to be drawn. Understandably so. Who
wants to leave their home unnecessarily and all because the money
magicians have raped the country of its wealth? The answer is no
one. But there are times throughout history when prudence overrules
pride in the name of safely securing you and your family. And a
second residency can also serve as a form of asset diversification.
When the chips
are down and the world around you becomes inhospitable, as the Internet
Reformation and the resulting financial hurricane are wiping out
the fallacious pillars on which Western economies and societies
have been constructed, you may wish you had another option.
Is there any
perfect place? No. But there are low-cost alternatives that may
provide a more secure place to hang one's hat during a chaotic period
that's probably best avoided. The key is to find a place that suits
your living standards and needs. It may not be perfect, but it may
sure feel that way if you need it in the future while the grim reality
of authoritarianism morphing into totalitarianism takes hold.
I have yet to find that place, but I am searching and have narrowed
it down to a few locations. For me and my family, I seek a location
that is relatively self-sufficient with respect to providing the
basic needs of life. I seek locations that are off the beaten track
but have good schools and infrastructure. Places that, once explored,
reveal themselves to be enjoyable locations to vacation and spend
occasional time so that if it is never needed for protection
purposes, it is not a total waste of money.
Having a portion
of one's wealth stored overseas enables a person to make a personal
move assuming a secondary residence has been established
so that if unfair pressure is brought to bear domestically,
action can be taken. Without preparation in advance, such action
may not be a possibility when a person needs it most.
Many will argue
that this type of planning is only for the wealthy. And yes, one
must have some degree of wealth. But it is surprising how far a
buck can go in some of the locations I have visited and am considering
for such secondary residency purposes. So this type of planning
is not only for the ultra wealthy by any stretch of the imagination.
note, I am often asked by people what they can do to profit from
gold and silver's "rising trend." Usually they wonder
about owning mining stocks as a means of owning gold.
out of paper money and into gold and silver should be viewed as
asset protection. Buying shares of mining companies is nothing of
the sort especially exploration companies.
the past several years we have seen impressive gains in the purchasing
power of gold. Yet, mining companies, and here I am referring to
those that actually produce gold, have seen relatively little impact
on their shares when viewed on a comparative basis with the price
move of gold. Why is that you may ask?
I believe that,
just as the Internet exposes the truth about the dishonest and fraudulent
nature of our monetary systems, the 'Net is also exposing the fallacy
of "corporations" and their "individual nature."
People are waking up to the reality that a corporate structure is
a facilitating vehicle for the transference of wealth more so than
the creation of it. And they do not like what they see.
are not individuals and as long as they shield the liability of
those who control them from their actions, we will have stock markets
riddled with fraud and corruption. Mining companies are no different
than any other corporations. It is very hard to find quality people
who are truly concerned about building value for their shareholders.
But to harp on about this would require another editorial specifically
devoted to the dissection of the corporate fallacy.
said that, there are discoveries that are made. And when they are,
the share prices of junior explorers can really take off. That is
what keeps people hunting for gold deposits and the explorers best
positioned to find them. My advice is that if you are going to invest
in junior explorers, you are better waiting until a discovery has
been made and then buying. You'll pay more but face somewhat lower
risks unless the whole thing is a fraud, like Bre-X was in
the 1990s. Just recognize that buying shares of exploration companies
is not the same as owning gold and is pure speculation.
buying high-risk gold and silver stocks is not the same as buying
physical gold and silver and has nothing to do with asset protection.
Even the big producers aren't keeping pace and there are many risks
that threaten to erode the value in the gold they produce too
most notably their tendency to sell their production for devaluing
paper dollars. Why they don't anchor their shares in the value they
produce rather than sell it is beyond me. Anyway, do not be fooled
into thinking buying shares in mining companies is the same as buying
gold. If you want to speculate in mining stocks, go ahead
but be fast on your feet. Recognize it for what it is high
risk speculation. Try to separate the wheat from the chaff.
in the dying days of the "Age of Promotion," everything
as it used to be
may not be so tomorrow. When Hurricane Reality
hits, all paper based "assets" will likely be illiquid
and, as such, virtually worthless.
with permission from The
Wile is an author, columnist, media commentator and entrepreneur
focused on developing projects that promote the general advancement
of free-market thinking concepts. He is the chief editor of the
popular free-market oriented news site, TheDailyBell.com.
Mr. Wile is the Executive Director of The Foundation for the Advancement
of Free-Market Thinking – a non-profit Liechtenstein-based foundation.
His most popular book, High
Alert, is now in its third edition and available in several
languages. Other notable books written by Mr. Wile include The
Liberation of Flockhead (2002) and The Value of Gold (2002).
© 2011 The
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