I don’t know about any of you, but I am certainly not a financial analyst. If someone explains very slowly and carefully about a particular area of finance and economics, I will understand. However, I am not one to usually explain anything myself.
It does not take me much critical thinking to realize that our financial ship cannot keep sailing as it has been. With the news of Quantitative Easing III, the rising inflation and the roulette-wheel spinning at the gas pump, it doesn’t take a genius to figure out something is wrong.
So I did some unpacking and I’m going to try and explain it best I can, in hopes that you realize the urgency of the situation and take some simple steps to help yourself and your family.
First, a light smattering of stories in the news that reflect global financial issues:
Economic stakes high in China-Japan islands dispute – Los Angeles Times
China and Japan are in a huge dispute over some islands that both countries want to claim as their own. Why is that a financial issue? For Japan it is two-fold. One, China is Japan’s biggest exporter, which could mean potential disaster for them. Two, the US is required to go aid Japan if there were to be a war. It’s trouble for China because their economy isn’t so hot these days, and they’re allowing the rioting to continue to appease their citizens. China owns a lot of our debt and it would be a global disaster if they called their debt due.
US Credit Rating Downgraded – The New American
The rating firm Egan-Jones downgraded our credit rating to AA- citing Quantitative Easing and continued low interest rates will do nothing but damage in the long term economic health of our county.
And speaking of Quantitative Easing…
Bernanke and the Federal Reserve to begin ‘Quantitative Easing 3’ – The Examiner
This is the big one. If you dig deep and listen to economists, they will tell you this is a dangerous proposition by our Fed. They plan on pumping $40 billion by buying our debt, each month until they feel enough has been done. They do this by printing money, which incidentally should be illegal. Of course each dollar printed makes each one of our dollars worth less. Our stock market was artificially inflated for a few days but it is back down now.
There are more, but you get the idea. We are all connected in this world and when things get bumpy in one area there tends to be a ripple effect.
Due to inflation and the devaluing of our dollar; food prices are up 20% and climbing, gas prices are up 107%, gold prices are climbing daily and the U.S. global competitiveness has declined from #1 to #7. Our income, when adjusted for inflation, is also down on an average of $4,300 per household. In simple terms, we need to spend more money on essentials while earning less.
One more quick thing, and it is incidental. In the grand scheme of our spiraling national debt, which towers at $16 trillion, our foreign aid is a paltry $58 billion. Still, why on earth would we give a dime to countries that not only won’t defend our people living in the country, but actually despise us? I personally would rather keep most of the money and use it to support legitimate programs in countries that will allow us to care for their needs rather than giving the money to corrupt governments.
So, now you have more information than you wanted to hear about at one sitting, and what the heck should you do with it? I feel that the time for blind ignorance to what is going on around us is over, and responsible people need to take some action to prepare their families for any crisis that may occur.
There are simple steps you can take to help yourself. You can choose to go as superficial, or as in depth as you would like in your preparations, but everyone should do something.
I do believe gold is a valuable commodity, but I don’t know how practical it is. If you can afford it, perhaps have some at hand to trade or to buy with. If not, a few hundred dollars of cash in hand is a very good idea.
What is most obvious, and most attainable, is food and water. You don’t have to buy it all at once, but you should get some non-perishable food items and store them away for you and your family. At the very least, food prices will continue to rise, thus making food storage a good investment already. But if something worse happens, you will have food for your family.
There are many more things that you should stock up on, some I don’t want to mention here. I have assembled a list of websites you can go to and seek more direction on this issue. Remember that there are people out there who are survivalists and have everything imaginable to survive after a collapse. There are others of us who depend on the Lord, but still take precautions to care for the families we are given. Neither way is wrong or right; it’s a matter of what you are comfortable with. But I beg you, do something. I believe these will be the times that try men’s’ souls.
This is my personal favorite. It is a blog from James Wesley, Rawles, who is a survival expert. He is a former Army intelligence officer, a great survival writer, a strong Christian, and he is crazy smart. His lists are extremely extensive, so don’t be overwhelmed. He lives off the grid and knows just how to do that. With any list, take what you need and leave the rest.
Here’s his blog, http://www.survivalblog.com/
“Be on guard, so that your hearts will not be weighted down with dissipation and drunkenness and the worries of life, and that day will not come on you suddenly like a trap; for it will come upon all those who dwell on the face of all the earth.”But keep on the alert at all times, praying that you may have strength to escape all these things that are about to take place, and to stand before the Son of Man.” – Luke 21:34-36
“Fear not, for I am with you; be not dismayed, for I am your God; I will strengthen you, I will help you, I will uphold you with my righteous right hand.” – Isaiah 41:10
“For you are all children of light, children of the day. We are not of the night or of the darkness. So then let us not sleep, as others do, but let us keep awake and be sober.” – 1Thessalonians 5:5-6