So many crises, so little time!

Each of us needs to think through how the effects of a dollar devaluation will affect us personally. This is an excellent summary. Iceland and Zimbabwe provide current examples. The always entertaining Mogambo Guru thinks we'll see hyperinflation within 18 months! "Hell, everybody with any brains knows that if the government keeps creating more and more money and credit, then consumer prices will rise exponentially and the economy will be ruined, just like Zimbabwe today, and just like every other example in all of history where a stupid bunch of governmental dirtbags created too much money!"

With corporate pension funds at risk, we can expect the Fed to create more money to help keep payments going to retirees. We can expect a steady stream of corporations, corporate credit unions, cities, states, you name it, making pilgrimages to Washington to get their bailout. With unemployment slated to rise much more than the 16.5% it currently is (if calculated the old way before the Clintonistas redefined it for political advantage in 1994), pressure to spend will continue to rise. Keynesianism is slated to go out with a bang in another bubble. That bubble is the doomed US Dollar.

All these efforts are bound to make the problem worse, as they have historically. Salvation by earmarks? Sounds like the "New Deal." I can't even imagine the deals that will be made, as politicians decide who lives and who dies financially. Ain't fascism great! Why am I humming "And the Money Kept Rollin' In" from Evita?

As an additional reality check, Coach Dave speculates that we might experience real (not false flag like 9-11) terrorist attacks concurrently with the perfect financial storm that's forming. This is another good reason to make preparations. Check out his links, especially this one that makes a good case our own government is targeting patriots, Constitutionalists, anti-war activists, truthers and the like as "terrorists." I've seen reports for years about 800 FEMA concentration camps with a capacity of 16-million staffed and ready to go in the US.

Meanwhile, in anticipation of pending domestic chaos, FEMA bureau-rats are busy polishing their plans for martial law in the US. Steve Quayle's report from inside law enforcement sources indicates that the Bushama administration is gearing up for martial law, gun confiscation and civil war in America. (Listen to the report, please.) Remember Paulson's Banker Bailout Bill was rammed through under threat of martial law according the Rep. Brad Sherman and Sen. Jim Inhofe.

ObamaWatch: Even though the courts are still dismissing the numerous cases challenging Obama's eligibility to be President, the issue won't go away. And the consequences for America are staggering. In a related story, Illinois' Governor has been indicted for wide-ranging corruption charges, including trying to sell Obama's vacant Senate seat. I'm sure Obama, whose career is rooted in the Chicago political machine, is somehow unrelated to all that corrupion. Right!

The Obama Presidency still looks like Groundhog Day. Same old, same old. Business as usual.

George Ure's Urban Survival site this morning (12-8-08) has a fascinating discussion of the twin earthquake events predicted by the time monks at HalfPastHuman. If they happen within the next week or so, as predicted, these will be major events. Also, this "future leaking into the present" information technology will gain even more credibility.

Meanwhile, food shortages (i.e., famine) may be looming in the US because of shortages of diesel and propane in the far reaches of the US growing areas. The author of this article makes a good case that the Obama administration should hit the ground running on preventing this. Therefore, they probably won't, because it's not sexy enough, and it actually makes common sense.

With all these threats, it makes more sense to make at least basic survivalist preparations. I, and many others, did this for the Y2K threat that failed to manifest (thankfully). The same situation seems to be facing us today, but with far more tangible and threatening precipitating causes than a computer glitch.

The big kahuna for Y2K was the possibility of "cascading cross defaults" in the financial system which would bring the banking and commerce system to a halt. We are seeing this happening today with the collapse of commercial credit and the nuking of currencies through hyperinflation. Throw in massive unemployment in a depression, civil unrest, martial law, terrorist attacks, WMD attacks, war, outbreak of possible plagues (bird flu, etc.) and there are good reasons to make at least the most basic of preparations. It is a simple insurance issue, for the same reason you buy home, car, health, and life insurance.

Many people are already looking to survivalists for advice. The question is: do you want to prepare for these possibilities hoping that the system will continue to deliver and that the government will successfully step in if the system fails? Or do you want to have some control over your destiny by laying in basic emergency food storage, non-hybrid seeds for a victory garden, water filters, medicine, etc.? I'll be spending more time in future posts on these resources.

And please, don't send me an email saying your "preparation" is putting your faith in God and letting Him handle all these issues. Of course faith is important. Preparation is totally biblical. Witness Joseph discerning the times and storing up in times of plenty for seven years of scarcity, among others. The kind of "faith" that won't prepare is simply shifting the responsibility to others -- not a very Christian thing to do.

The Dollar is doomed; gold and silver will rise

The US dollar is doomed. There is no doubt. The massive addition to money supply and exploding deficits assure that the fiat dollar will be officially devalued through hyperinflation, replacement with the Amero or a new, "improved" dollar, or some similar device. Devaluation is baked into the economic cake. Massive increases in money supply dilute the value and purchasing power of the currency.

Yet, the price of gold in the futures markets seems to undermine this view. Since cracking $1,000 last March, gold's spot price is close to $750. Moreover, the dollar has bounced off an 8-year low to its highest levels in two years. Isn't the market projecting future values into the most accurate price today? Maybe this isn't a good time to buy?

Because of this anamoly, some people who plan to purchase precious metals to protect the value of their savings have postponed their purchase, hoping to time it with a bottom of the metals and a high in the dollar. Given my plea to purchase gold at what I thought was a low last August, this waiting strategy has paid off -- maybe.

Their strategy has been brilliant if they can just pick up the phone Monday and buy sufficient gold to satisfy their needs with no delay, at near the market price. The problem is that worldwide demand for gold has been huge, and supply is scarce. Yet the spot price of gold is still relatively low. Shouldn't a lower price reflect lower demand? Conversely, shouldn't high demand mean higher prices? And regardless of the price, shouldn't one be able to buy whatever amount of gold they want at or near the market price? In theory, the answer is "yes." But the situation today is that physical gold (as opposed to "paper" gold reflected in spot prices), is difficult to get and has at least a 15% premium over spot.

My best take on the situation is that the dollar boomlet will be very short-lived. It has much to do temporary demand for dollars to unwind derivative contracts, as well as the illusion of safety (the US treasury bond market may be failing). Moreover, the Powerz manipulate the price of gold to conceal inflation and to try to keep the public's faith in fiat currencies. Meanwhile, those in the know, those who understand the fundamentals, are buying in record amounts.

The bottom line: if you're planning on investing some of your savings in gold and silver, then you had better to it this month. The sooner, the better. An attempt to time the market is bound to fail, because no one knows in advance what the low price is. And if you're trading what should be an insurance policy to maximize fiat profits, you're playing with fire.

And while you're establishing insurance positions for the coming economic turmoil, don't forget basics like food storage, non-hybrid seeds, water filters and such. Precious metals will help to preserve the value of your savings. But you'll still need the essentials to stay alive.

Below are links to articles to substantiate what I've said above.

Inflation is baked into the cake:
The Neo-Alchemy of the Federal Reserve - Congressman Ron Paul

Bernanke's Playbook - Dr. Gary North. "We are now reaching the point of the helicopter drop. If the FED does not reverse its policy of buying bad debt with new money – high-powered money, as Friedman called it – we will get mass inflation before the next Presidential election."

The US Monetizing Debt by Printing Money

Bankrupt G7 Print Money to Reflate Economies

41 States are Facing Severe Budget Shortfalls for 2009. As will cities, counties, etc.

Half-million jobs vanishes as economy deterioriates.

Why Credit Cards Matter So Much.

Bank has little option but to ready the printing presses.

"50 Ways to Beat Deflation" -- new lyrics to the Paul Simon hit song.

The Gold Price will soon take off:
Comex Gold Shocks and Awe -- observations on the subtantial deliveries being taken on gold futures contracts at the Comex. Generally options buyers just take paper profits and/or losses. Rarely do options holders take delivery. Jim Sinclair and others have been calling on patriots to take delivery for some time now, putting an end to the scam of using futures contracts to inhibit the price of gold. We've seen the disconnect between the price of "paper" and physical gold for six months. Evidence is mounting of substantial deliveries in December and February, pulling the rug out frm under the theives. For more insights into these phenomena, see "What's Really Going on with Gold and Silver."

For more on this stunning event, you must read Antal Fekete's article on the new "backwardization" of gold pricing in the futures markets. Hal Turner summarizes the most salient points here. "December 2 is a landmark, because before that date the monetary system could have been saved by opening the U.S. Mint to gold. Now, given the fact of gold backwardation, it is too late. The last chance to avoid disaster has been missed. The proverbial last straw has broken the back of the camel. Few people realize that the shutting down of the gold trade, which is what is happening, means the shutting down of world trade. This is a financial earthquake measuring ten on the Greenspan scale, with epicenter at the Comex in New York, where the Twin Towers of the World Trade Center once stood. It is no exaggeration to say that this event will trigger a tsunami wiping out the prosperity of the world." As this realization hits the markets, the price of physical gold should skyrocket. (Check here for more observations on backwardization.)

US Government Fiscal Policy Cannot Continue

Ross Perot caused quite a stir with his economic charts when he ran for President in the early 90's. He has just issued a new set of sobering charts on America's economic future.

He shows quite clearly that current government spending trends cannot be sustained. The pyramid scheme of entitlements -- mainly Social Sercurity, Medicare and Medicaid -- have reached a "tipping point" with the retirement of the first Baby Boomer last year.

Our national security, our standard of living, our standing in the world, and the value of the dollar face a grave threat from this problem. What the charts omit is that all the Western welfare states are in the same situation.

This is not a popular topic on the Presidential campaign trail. Even though the status quo is not an option, the political class continues to ignore it. Any steps they take to prevent America's looming bankruptcy and destruction of the dollar will not be popular with those dependent on government programs.

Take 15 minutes to watch this slide show today. Make your preparations accordingly. If you are older, plan not to retire. If you are younger, don't factor Social Security into your future, except as a wage-slave.