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With the Crimea referendum passed and Russia ready to annex the region, the United States and the European Union have threatened sanctions. The full extent of these sanctions is not yet known, and announcements are pending for the end of March. If these measures are concrete, they will of course be followed inevitably by economic warfare, including a reduction of natural gas exports to the EU and the eventually full dump of the U.S. dollar by Russia and China. As I have discussed in recent articles, the result of these actions will be disastrous.
For those of us in the liberty movement, it is now impossible to ignore the potential threat to our economy. No longer can people claim that “perhaps” there will be a crisis someday, that perhaps “five or 10 years” down the road we will have to face the music. No, the threat is here now, and it is very real.
The loss of the dollar’s world reserve status will destroy the only thread holding up its value, namely, investor faith. There are only two possible outcomes from that point onward:
A) The U.S. will be forced to default because no nation will purchase our Treasury bonds and support our debt spending, causing the dollar’s value to implode.
B) The Fed will choose to restart and expand quantitative easing measures, confiscate pension funds, raid bank accounts or issue new taxes in order to keep the system afloat; this will also end in the eventual collapse of dollar value and hyperinflation.
The consequences will lead to an explosion in prices — first in commodities and necessities like petroleum, imported raw materials, food, electricity, etc. and then in all other goods and services. Austerity measures will be instituted by Federal and State governments. Cuts to social welfare programs, including food stamps, are probable. Civil infrastructure will suffer. The cost effectiveness of maintaining public utilities could become unrealistic. Anyone relying on such services may find themselves cut off for days, weeks or indefinitely. Public suffering will invariably rise, along with public crime.
If events like Hurricane Katrina in New Orleans are any indication, the Federal government’s response will be inadequate, to say the least. The Federal Emergency Management Agency clearly cannot be relied upon to provide food, shelter, medical care or protection for communities. In fact, in the aftermath of Hurricane Katrina, the Feds did far more harm than good, corralling people into camps where death was rampant and disarming outlying neighborhoods so that they could not defend themselves. Tens of millions of dollars in donated and Federally purchased necessities were never delivered to aid survivors. Trucks were turned away, and help from civilian sources was denied.
The point is, if you find yourself in the midst of a national or international catastrophe, you should assume that you will be on your own with whatever preparations you made beforehand. To assume otherwise would be foolish, given our government’s track record.
There are some people who will argue that during an international crisis, such as an economic war or a world war, there is no purpose to preparedness. They will argue that there is nothing an individual or family can do to weather the storm or fight back, because the scale of the threat would be “too great.” There is no place for such defeatism in the life of the liberty-minded. The scale of the threat is irrelevant, and only cowards give up a fight before it even begins. Survival and freedom require an unwavering conviction. Nihilists will fulfill their own prophecies, suffering a fate exactly as they imagine for the rest of us; living in fear, slavery, and obscurity.
That said, it is also important to acknowledge the truth that the majority of Americans today are utterly unready for a minor localized disaster, let alone a national or global crisis. This problem, though, could be easily remedied with a few simple beginning steps. I find that most people are not averse to the idea of preparedness, but many have trouble taking the first steps in the right direction. For longtime preparedness champions, the information listed here might seem like old-hat. However, I challenge each liberty movement member to approach at least one friend or family member who could benefit from the steps below. Prepping appears daunting to the uninitiated; show them how simple it can actually be.
Below is a list of goals that every liberty movement member and American can easily achieve starting today and continuing over the course of the next month. If enough citizens were to take the initiative to do these things, all threats — no matter how imposing — could be overcome.
Buy Three Months Of Food Stock
Food supply is the greatest Achilles’ heel of the American populace. Most homes store less than one week’s worth of food items at any given time. The average person needs between 2,000 and 3,000 calories per day to maintain sufficient energy for survival. It takes around four to six weeks for a person to die of starvation and malnutrition. In a collapse scenario, most deaths will likely occur within the first few months, either by weakness and illness, or by looting and violence. The idea is to at least get through this first catastrophic phase without becoming a villain, or falling victim to one. One person removed from starvation is one possible threat removed from the equation.
Three months of supply is not ideal by any means, but it will buy you precious time. Start with 2,000 calories per day per person. Bulk foods can be purchased cheaply (for now) and can at the very least provide sustenance during emergencies. A 20-pound bag of rice, for instance, can be had for less than $15 and provides about 30,000 calories, or 2,000 calories per day for 15 days for one person. Supplement with beans, canned vegetables and meats, honey for sugar, or freeze-dried goods, and you will be living more comfortably than 90 percent of the population.
Food stockpiling is one of the easiest and most vital measures a person could take. Yet, sadly, it is one of the last preparations on people’s minds.
Buy A Water Filter
Do not count on city water to remain functional. Even during a drawn-out economic downturn rather than an immediate crisis, there is a good chance that some utilities will be sporadic and unreliable. This means you will have to focus on rainwater collection, as well as water from unclean sources. Boiling the water will kill any bacteria, but it will not kill the taste of sediments and other materials floating around. A high-grade survival filter is the best way to get clean water that tastes good.
The average person needs about a gallon of water per day to remain healthy and hydrated. I highly recommend the Sawyer Mini Water Filter, which is a compact washable filter that can cleanse up to 100,000 gallons of water. It uses no moving parts, making it harder to break; and it costs only $20.
Buy A Small Solar Kit
Try going a week or two without electricity, and you may find how dismal life can truly be. The very absence of light at night reduces one’s productivity time drastically, and using fuel for lanterns is not practical in the long term. Solar power is truly the way to go for a grid-collapse scenario.
I’ve heard much whining about the cost of solar power, but small systems that will serve most electrical needs can be set up for less than $1,000. Two 100-watt panels, a power inverter, charge controller and four to six 12-volt deep-cycle batteries are enough to deal with most electrical needs in a survival situation; and all these items can be contained in a portable foot locker for minimal cost. New solar panels are much more effective in low-light conditions and winter weather as well, making solar a must-have prep item.
Store A Fuel Source
Twenty gallons of gasoline treated with fuel saver is not expensive to purchase today, but in the midst of hyperinflation, it may be impossible to obtain tomorrow. Kerosene is useful for heating and cooking. Propane can be stored for decades and runs numerous appliances. If you live in a forested area, dried wood can be had for free, and can keep you warm throughout the winter months (keep in mind the your local danger factor when using fire). It is vital to have a means to stay warm and fed during the most difficult seasonal changes, especially during a grid down scenario.
Find Alternative Shelter
There are no guarantees during a full-spectrum disaster. Having all your eggs in one basket is not only stupid, but unnecessary. Always have a plan B. That means scouting an alternative location for you and your family in the event that your current shelter comes under threat. This location should be far enough away from large population centers but still within a practical range for you to reach them. It should also have a nearby water source, and be defensible. Establishing supply caches near this site is imperative. Do not assume that you will be able to take all of your survival supplies with you from your home. Expect that surprises of a frighteningvariety will arise.
Buy One Semi-Automatic Rifle
At this point I really don’t care what model of rifle people purchase, as long as they have one, preferably in high capacity and semi-automatic. AR-15, AK-47, Saiga, SKS, M1A: just get one! Every American should be armed with a military-grade rifle. If you are not, you are not only negligent in your duty as a free citizen, but you are also at a distinct disadvantage against the kind of opponents you are likely to face in a collapse situation.
Buy 1,000 Rounds Of Ammunition
Again, this is by no means an ideal stockpile, but it is enough to get you through a couple rough patches if you train furiously. Cheap AK-47 ammo can be had for $5 for a box of 20 rounds. Get what you can while you can, because the prices are only going to skyrocket in the near term.
Approach One Friend Or Neighbor
Community is what will make the difference between life and death during a SHTF collapse. I challenge everyone in the liberty movement to find at least ONE other person to work with in the event of disaster. Lone-wolf operations may be strategically practical for short periods of time; but everyone needs rest, and everyone needs someone else to watch his back. Do not fall into the delusion that you will be able to handle everything on your own.
Learn One Barter Skill
Learn how to fix one vital thing or provide one vital service. Try emergency medical training, gunsmithing or metal working, as long as it is an ability that people will value. You have to be able to produce something that people want in order to sustain yourself beyond the point at which your survival stockpile runs out. Be sure that you are seen as indispensable to those around you.
Grow A Garden
Spring is upon us, and now is the perfect opportunity to grow your own food supply. If you have even a small yard, use that space to grow produce. Focus on high-protein and high-vitamin foods. Buy a dehydrator or canning supplies and save everything. Use heirloom seeds so that you can collect new seed from each crop to replant in the future. If every American had a garden in his backyard, I wouldn’t be half as worried about our survival as I am today.
Prepare Your Mind For Calamity
The most valuable resource you will ever have is your own mind. The information held within it and the speed at which you adapt will determine your survival, whether you have massive preparations or minimal preparations. Most people are not trained psychologically to handle severe stress, and this is why they die. Panic equals extinction. Calm readiness equals greater success.
The state of our financial system is one of perpetual tension. The structure is so weak that any catalyst or trigger event could send it tumbling into the abyss. Make no mistake; time is running out. We may witness a terrifying breakdown tomorrow, in a year, or if we are lucky, a little longer. The path, though, has been set and there is no turning back. All of the items above can be undertaken with minimal cash flow. If you receive a regular paycheck, you can establish a survival supply for yourself and your family. There are no excuses.
Take the steps above seriously. Set your goals for the next four weeks and see how many of them you can accomplish. Do what you can today, or curse yourself tomorrow. What’s it going to be?
You can contact Brandon Smith at: email@example.com
Big Oil Is Gaming the System to Raise Domestic U.S. Prices
Completion of the entire [Keystone] pipeline would raise prices at the pump in the Midwest and Rocky Mountains 10 to 20 cents a gallon, Verleger, the Colorado consultant, said in an e-mail message.The higher crude prices also would erase the discount enjoyed by cities including Chicago, Cheyenne and Denver, Verleger said.
CNN Money reports:
Gas prices might go up, not down: Right now, a lot of oil being produced in Canada and North Dakota has trouble reaching the refineries and terminals on the Gulf. Since that supply can’t be sold abroad, it reduces the competition for it to Midwest refineries that can pay lower prices to get it.
Giving the Canadian oil access to the Gulf means the glut in the Midwest goes away,making it more expensive for the region.
Tyson Slocum – Director of Public Citizens’ Energy Program – explains:
How does bringing in more oil supply result in higher gas prices, you ask? Let me walk you through the facts. A combination of record domestic oil production and anemic domestic demand has resulted in large stockpiles of crude oil in the U.S. In particular, supplies of crude in the critical area of Cushing, OK increased more than 150% from 2004 to early 2011 (compared to a 40% rise for the country as a whole). Segments of the oil industry want to import additional supplies of crude from Canada, bypass the surplus crude stockpiles in Oklahoma in an effort to refine this Canadian imported oil into gasoline in the Gulf Coast with the goal of increasing gasoline exports to Latin America and other foreign markets.
Cushing typically is a busy place – I noted in my recent Senate testimony how Wall Street speculators were snapping up oil storage capacity at Cushing. And all of that surplus capacity is pushing WTI prices down – and for many in the oil business, downward pressure on prices is a terrible thing. As MarketWatch reports, “[B]y running south across six U.S. states from Alberta to the Gulf of Mexico, [the Keystone pipeline] would skirt the pipeline hub at landlocked Cushing, Okla., a bottleneck that has forced Canadian producers to sell their oil at a steep discount to other crude grades facing fewer obstacles to the market.
There are several global crude oil benchmarks, and the price differential between Brent and WTI now is around $10/barrel, which is a fairly significant spread, historically speaking. Moving more Canadian crude to bypass the WTI-benchmarked Cushing stocks, the industry hopes, will align WTI’s current price discount to be higher, and more in line with Brent.
The Keystone pipeline isn’t just about expanding the unsustainable mining of … Canadian crude, but also to raise gasoline prices for American consumers whose gasoline is currently priced under WTI crude benchmark prices.
Slocum notes that oil is America’s number 1 import at time same that fuel is America’s number 1 export.
Specifically, more oil is being produced now under Obama than under Bush. But gas consumption is flat.
So producers are exporting refined products. By exporting, producers keep refined products off the U.S. market, creating artificial scarcity and keeping U.S. fuel prices high.
Slocum said that the main goal of the Keystone Pipeline is to import Canadian crude so the big American oil companies can export more refined fuel, driving up prices for U.S. consumers.
Tom Steyer points out:
Statements from pipeline developers reveal that the intent of the Keystone XL is not to help Americans, but to use America as an export line to markets in Asia and Europe. As Alberta’s energy minister Ken Hughes acknowledged, “[I]t is a strategic imperative, it is in Alberta’s interest, in Canada’s interest, that we get access to tidewater… to diversify away from the single continental market and be part of the global market.”
And see this NBC News report.
As Fortune explains, the U.S. is now an exporter of refined petroleum products, but Americans aren’t getting reduced prices because the oil companies are now pricing the fuel according to Europeanmetrics:
The U.S. is now selling more petroleum products than it is buying for the first time in more than six decades. Yet Americans are paying around $4 or more for a gallon of gas, even as demand slumps to historic lows. What gives?
Americans have been told for years that if only we drilled more oil, we would see a drop in gasoline prices.
But more drilling is happening now, and prices are still going up. That’s because Wall Street has changed the formula for pricing gasoline.
Until this time last year, gas prices hinged on the price of U.S. crude oil, set daily in a small town in Cushing, Oklahoma – the largest oil-storage hub in the country. Today, gasoline prices instead track the price of a type of oil found in the North Sea called Brent crude. And Brent crude, it so happens, trades at a premium to U.S. oil by around $20 a barrel.
So, even as we drill for more oil in the U.S., the price benchmark has dodged the markdown bullet by taking cues from the more expensive oil. As always, we must compete with the rest of the world for petroleum – including our own.
This is an unprecedented shift. Since the dawn of the modern-day oil markets in downtown Manhattan in the 1980s, U.S. gasoline prices have followed the domestic oil price ….
In the past year, U.S. oil prices have repeatedly traded in the double-digits below the Brent price. That is money Wall Street cannot afford to walk away from.
To put it more literally, if a Wall Street trader or a major oil company can get a higher price for oil from an overseas buyer, rather than an American one, the overseas buyer wins. Just because an oil company drills inside U.S. borders doesn’t mean it has to sell to a U.S. buyer. There is patriotism and then there is profit motive. This is why Americans should carefully consider the sacrifice of wildlife preservation areas before designating them for oil drilling. The harsh reality is that we may never see a drop of oil that comes from some of our most precious lands.
With the planned construction of more pipelines from Canada to the Gulf of Mexico, oil will be able to leave the U.S. in greater volumes.
This isn’t old news … or just a hypothetical worry.
As Bloomberg reported in December 2013:
West Texas Intermediate crude gained the most since September after TransCanada Corp. (TRP) said it will begin operating the southern leg of its Keystone XL pipeline to the Gulf Coast in January.
[West Texas Intermediate oil] prices jumped to a one-month high, narrowing WTI’s discount to Brent. TransCanada plans to start deliveries Jan. 3 to Port Arthur, Texas, via the segment of the Keystone expansion project from Cushing, Oklahoma, according to a government filing yesterday. Cushing is the delivery point for WTI futures. Crude [oil pries] also rose as U.S. total inventories probably slid for the first time since September last week.
“With the pipeline up and running, you are going to see drops in Cushing inventories,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “It drives up WTI prices far more than Brent. You are going to see a narrowing of the Brent-WTI differential.”
The European Union proposed cutting the region’s greenhouse-gas emissions by 40 percent in 2030 to accelerate efforts to reduce global warming.
The European Commission outlined its strategy to reduce pollution and curb rising energy costs and called for an overhaul of the bloc’s policies in the next decade, the EU’s executive arm said in a statement today. The current goal is to cut emissions by 20 percent in 2020 from 1990 levels.
The proposed design of future policies pits nations including Germany and the U.K., who are seeking stronger efforts to protect the atmosphere, against Poland and its allies, which rely mainly on fossil fuels to keep their economy humming. It also highlights the divide between energy intensive companies, whose gas and power costs are more than double their U.S. and Asian competitors, and green lobbies such as Greenpeace seeking deeper emission cuts.
“Political agreement on a 2030 EU energy and climate framework is absolutely vital for businesses,” Katja Hall, chief policy director at Confederation of British Industry, the U.K.’s main business lobby group, said by e-mail before the commission’s announcement. “We need long-term certainty to drive investment in a secure, low-carbon and affordable energy future for Europe.”
In the package unveiled today the commission asked member states to consider a 2030 framework that focuses on the carbon-reduction target to avoid conflicts with policies subsidizing renewable energy. The strategy is the start of a debate among member states, which may lead to a draft law in early 2015.
Under the new proposal, the EU wouldn’t extend legally-binding renewables targets for individual member states beyond 2020, instead setting an EU-wide goal to boost the share of renewable energy to 27 percent by 2030.
Scrapping renewable energy targets is “good news” for the economy and environment, according to Robert Stavins, director of Harvard University’s Environmental Economics Program. The renewables goal conflicts with the EU emissions trading system and removing it would lower the cost to achieve the pollution cap, he said.
The package will also include an indicative goal to boost energy efficiency by 25 percent, which will be discussed later this year.
As a part of the proposal, the commission will also seek to strengthen its carbon market cap-and-trade program by making the supply of permits more flexible. A carbon market stability reserve to start in 2021 would withdraw permits once allowances in circulation reached at least 833 million, the commission said in a statement.
The cost of emitting a metric ton of carbon dioxide in the EU’s $53 billion carbon market slumped to a record low of 2.46 euros ($3.32) in April and traded at 5.20 euros today at the ICE Futures Europe exchange in London.
To contact the reporter on this story: Ewa Krukowska in Brussels firstname.lastname@example.org
To contact the editor responsible for this story: Lars Paulsson at email@example.com
By: Tom Chatham
So, you’ve got your food all stored away to last the next several years. You have your fuel barrel full and your generator and solar panels ready for the end of the power grid. You have enough weapons and ammo to deal with anything. You are mentally and physically prepared for the long hard days ahead.
You are prepared to fight the war that will eventually show up at your front door someday in some form and for an unknown length of time. You are prepared for the chaos, but are you prepared for the eventual peace?
At some point, the situation will stabilize in some form. It will become possible to walk down the street without being shot at. It will become possible to reopen businesses or to barter. It will become possible to breathe a sigh of relief.
When that day comes, how will you survive? You probably have your stash of silver or gold and some barter items but how long will that last? When the system goes down it will take most peoples jobs, their savings, their retirement accounts and pensions and much of the property they thought they owned.
Everyone will be forced to start over again. It could be years before the job market is functioning again. Until then, how do you plan to take care of yourself and your family? What is your plan to generate some income to live on and acquire the things you need?
Surviving the chaos will be a full time job but when it’s over, then what? Your gold and silver will take you a long ways but they only provide you with a temporary solution to your future needs. At some point you will need to start saving for the day when you are no longer able to do useful work.
Most people are busy preparing to just survive the coming chaos but some thought needs to be given to the day after it all ends. Even a few minutes spent now developing a basic plan will be critical to helping you transition to the new normal. A basic idea and the acquisition of a few basic tools or supplies to help you develop your new income stream will help you leverage your time and supplies to get by in the future.
Knowledge is the primary tool you need to navigate the future. Knowing how to make physical things or repair things will help you meet the future needs of society. Next to that, the storage of tools, machines, raw materials and information relevant to start a new business needed by the community will give you an edge.
In a prolonged period of chaos much of our infrastructure will likely be destroyed. In the aftermath, those with the skills and tools to rebuild will be a valuable asset to society. The ability to repair vehicles or machines, carpentry, masonry, plumbing, electrical, healthcare, farming and skills to build physical products will all be needed by a populace that wishes to regain some of the creature comforts they have lost in past years.
The more skills and materials you have when that day comes the sooner recovery can happen. Some may say it is a bit presumptive to plan for a day when things get better but if you feel things will never get better then why prepare to get through the worst of times at all? If you have the courage to plan for difficult times then you should also give yourself the ability to enjoy the day when things get better. Planning ahead for the distant future was never more important than it is right now.
- Food and fuel rises hit budgets – Confused.com (confused.com)
- Fuel poverty initiative launched for vulnerable older homeowners (castlecover.co.uk)
- ‘1 in 3’ drive slowly to save fuel – Confused.com (confused.com)
- Food and Fuel Hikes (tsekumah.wordpress.com)