I am writing this to you, not to Alarm you but to warn you to get prepared. This week is a pivotal week. Historical. One we will look back on and tell our children and grandchildren about “When It All Changed”.
Things are NOT going to be the same moving forward.
Call me CRAZY today, but thank me later (I’m OK with that). FEEL FREE TO SHARE THIS FAR AND WIDE.
Right now we are seeing:
1: RUSSIA/UKRAINE – This has sparked “outrage” in the West that has led to “Freezing” Russia out of the Global Economy by kicking it out of the SWIFT system for International payment settlements, along with VISA, MasterCard, and PayPal shutting off credit cards for Russians. While this virtue signaling makes politicians feel good, it is causing ripple effects through the World Economy. Russia is a large supplier of Oil, Natural Gas, Fertilizer, Wheat, Gold, Silver, Palladium, Platinum, and Nickel (all of these metals are used extensively for batteries in cellphones and cars and many other things that we all use). The USA has frozen Russia out of the international payment system. Now, Industrial users can’t pay Russia for the commodities that they need.
Today (3/8) USA is going to embargo Russian oil that the USA IMPORTS. This is driving the prices for gasoline up FAST.
Friday (3/11) Russia will disconnect from the Internet and operate its own Russia only Internet (CRAZY!!!)
Also, Russia is the largest exporter of fertilizer and fertilizer compounds that the World needs for agriculture. As planting season approaches fertilizer prices have increased 4x. This will lead to less planting, lower crop yields, and higher prices for food world wide. The beginning of a Food Crisis is here.
2: BANKS – Many different banks around the world (especially European and Chinese) have large exposure to Russia. If Russian companies cannot/will not pay their debts (because they are cut of from the SWIFT payment system and the Ruble is almost worthless) these debts will default. The critical issue here is that many banks are interlinked. Once one bank has trouble with bad debt in Russia or China, the dominoes start to tumble. Once people hear about this, they get scared, panic, markets crash, and Bank Runs start.
3: US DOLLARS – The US Dollar is the “Cleanest Dirty Shirt” in the world currency markets. The world is running to US Dollars right now for safety, but the USD has problems of its own, as the US GOVT is insolvent and is just borrowing to pay interest (much less financing all of the NEW spending). The level of printing of new USD in the past 2 years is at level never seen in the history of mankind. The FEDERAL RESERVE must raise interest rates, but they are trapped. The USD is on its way to a hyper inflationary death spiral. Get ready to start adding ZEROS to prices on everything (see Weimar Germany or Zimbabwe or Venezuela Inflationary events). A new system will have to emerge.
4: GOLD and SILVER – Gold and Silver are MONEY (Dollars, Euros, Yen, etc are CURRENCIES or claim checks on money). Smart people that are looking ahead are starting to buy Gold and Silver to protect their wealth and preserve their purchasing power. Gold has moved squarely above $2000/oz and Silver is set to move up too. Silver is the best buy here, but the key is to get the actual physical metal in your own hands (I can help you, just give me a call). The Commodity Super Cycle is starting, as REAL assets are going to be valued over PAPER assets. Precious Metals in your own possession is the Bridge to Safety.
5: SUPPLY CHAINS – Get ready fro everything to take longer, cost more, and not be there when you want it. This is the effect of disruptions to a highly interconnected Just-In-Time Globalized supply chain where much of the stuff is supplied by people that are not our friends. Look for China to cut back on supplies of cheap goods the USA (this will hurt them in the short term, as they need to sell us stuff), look for a HUGE disruption in computer chips and circuit boards, as Taiwan is a major supplier to the world and China is licking its chops to take Taiwan back. This, coupled with a supply crunch and the increase in the costs of the materials (i.e. Nickel, Palladium, and Silver) will make electronics more expensive and harder to get. Make sure your vehicles are in good repair, as new vehicles will be even harder to get and MUCH more expensive.
6: ENERGY – The period of low-cost Energy (oil, gas, natural gas) is over for now. Bad Energy policies in USA and EU, supply shocks, and decrease in new discoveries are all coming back to bite everyone. Taking the Russian supply out of the market leaves the USA at the mercy of Saudi Arabia and Venezeula as the only extra supply. Neither of these countries like the USA right now. Get ready for gas to go much higher this Spring and Summer. Air travel is going to get VERY expensive.
WHAT YOU CAN DO:
1: Get Spiritually, Mentally, and Physically PREPARED for Massive Change.
2: Take Excess Cash out of the Banks (i.e. anything more than you need to pay your monthly bills).
3: Take a good look at your Stock Market holdings and see if you are comfortable with exposure to a Market Correction of 30-50%.
4: Hold some physical USD Cash at home for use when/if the banks shut down and ATMS are unavailable ($1000+ depending on your situation).
5: Stock up on essential food items as food prices are going to go up 4x to 10x (buy meat for your freezer, start a garden, etc).
6: Buy Physical GOLD and SILVER to store your wealth and preserve your purchasing power.
7: Make sure that you have ample supplies of all your essential prescription medications.
8: Keep your vehicles maintained and the gas tanks filled up.
9: AVOID lines and crowds if possible. Be ready to protect yourself, family, and property. (desperate people are unpredictable).
10: Turn OFF your TV and PRAY
Here are some links to informative videos:
The Hidden Secrets of Money Series by Mike Maloney (Essential to Understand Currencies vs. MONEY and how the System works)
History of Weimar Germany Inflation
Surviving In Hyper-Inflationary Venzuela