Author: cityprepping-author

  • They’re Warning Us What’s Coming Next

    They’re Warning Us What’s Coming Next

    Do You Hear The Alarms? “The secret of change is to focus all of your energy, not on fighting the old, but on building the new” — Dan Millman InflationWe have become a world that is overly dependent on profits for shareholders, supply chains that bring us cheap products and goods from around the world, and an ever-widening gap between the farm and your table.  If we ran our households like this, we would be in bankruptcy court.  The effects of running a country this way can only result in catastrophic failure or a violent reshaping and reformulation of our systems, wants, and needs.  In many ways, the effects of running our society like this, redlining all the financial mechanisms, outsourcing, exports and tariffs, and so forth, force us to change how our households function.  It directly impacts our way of life, going way beyond sticker shock.
    • Grocery prices skyrocket 11.9% as high inflation hovers
    • U.S. household debt increased by $1 trillion in 2021, the most since 2007 
    • Many Americans Raid Retirement Savings to Stay Afloat 
    The headlines paint a grim future.  These aren’t solely domestic problems, either.  We are seeing what may be the end of a global network straining under its gluttony and avarice.  Here are the most dramatic ways your life will be forever changed in the next few years and what you should be doing to prepare for this inevitable change.  Multiple systems are strained and teetering on the edge which we’ll cover in this video.  As a prepper, you should attempt to understand how these significant threats will impact you and your regional way of life.  Go beyond the soundbites and the media because they aren’t going to explain the deeper problems, and they aren’t going to tell you what you can do next.  And there are things you can do which we’ll cover in this blog. Download the Start Preparing Survival Guide To Help You Prepare For Any Disaster.  We’ll post a link below or visit cityprepping.com/getstarted for a free guide to help you get started on your preparedness journey.  INFLATION MoneyGovernment borrowing and spending, worker’s being sick or refusing to work, the war in Ukraine, Chinese lockdowns, low-interest rates, corporate greed, and supply chain disruptions are all valid reasons for the current inflation we are experiencing. Inflation is approaching 10%, and on some items, prices have gone up much higher.  It’s higher than it has been since 1981–41 years ago.  There are many reasons for the increase, and we dive deeper into inflation in some of the other blogs on this site.  Suffice it to say that the inflation we previously warned about for months is solidly here right now, and it will get a lot worse before it is over.  Whether it gets 1970s bad remains to be seen, but the inflation of the 70s brought about several significant changes and reforms–not all of which proved to be good.  In the 70s, the combination of high inflation with weak economic growth, fuelled by repeated supply shocks, gave rise to the phenomenon of ‘stagflation.’ Today, oil prices are, in real terms, still only around two-thirds of those in 1980 or 2008. Still, you wouldn’t know that looking at the numbers increase when you are pumping gas. It’s important to understand that inflation is not a uniquely American problem.  Global inflation is up 6% or more.  Lockdowns, COVID responses, supply chain challenges that range from weather to cargo ships stuck in the Suez Canal, embargoes, nations hoarding grain and fuel, and a host of other conditions all combined to drive up costs and cause wide disparities and price jumps. ENERGY EnergyWe are overly dependent on energy. At the same time, our infrastructure and power grid are strained and old, our use and consumption and population have all increased, and our needs to heat and cool under extreme weather conditions have intensified.  It’s all a recipe for disaster.  Power companies have directly warned that production will not meet demand this summer.  We have been warned that hydroelectric production will be down.  We have been warned that demand will outpace supply.  We have been warned that the heatwaves we can expect through summer will tax the system significantly.  But do we heed those warnings? Energy prices are projected to increase 50% this year after doubling last year.   Expect this crisis to worsen over the next two years, at least.  Analyze your emergency energy needs.  Consider a solar battery or fuel-generator to get you through short periods of the power going out, but don’t be naive to think the power won’t go out.  It will, and if it doesn’t impact you too much because you are prepared, realize that it will affect the millions of businesses, services, and people around you.  You won’t be buying groceries, visiting the doctor, or pumping expensive gas when your city’s power goes out. FUEL FuelWe have delved into the energy issue quite a bit in some other blogs.  Suffice it to say that this isn’t a problem we can simply drill our way out of, regardless of what politicians and pundits might tell you.  Drilling contracts were up 34% last year over the numbers five years ago.  Permission to drill, actual drilling, and where that oil, if ever pumped out of the ground, ends up, how it is refined, and how it is distributed are all messes along the way to the gas you pump in your vehicle by the gallon.  One thing is for sure, oil companies ship the oil to the highest paying nation.  The same is true for coal.  The same is true for liquid natural gas.  This year oil company profits are up 300%.  The industry has always been boom or bust; they’re barely making a profit over a ten-year benchmark.  There are some legitimate reasons for the increases, but there is also an opportunity to make money for shareholders.  Exxon Mobil, for example, is doing a $30 billion stock buyback, which won’t lower the gas price by even a penny, but will make their largest shareholders even wealthier. Expect gas to go way up from here.  Ten dollars a gallon gas isn’t improbable.  That will translate to a price increase for goods transported more than 100 miles.  That is, honestly, almost everything you buy.  Look at our other blog that examines the ramifications of this fuel price crisis even further.   FOOD FruitsWorld leaders, farmers, and truckers form lofty analyzers of data to tires on the road, truckers and hands in the dirt farmers are all warning us of the coming food crisis.  One recent subscriber who farms in northwest Oklahoma commented: “We just started our wheat harvest two days ago (We’re on a combine as we type this). It was so dry here over the winter that our wheat is not good. There are areas of the fields we won’t be cutting because there is nothing there. This will be one of the worst harvests we have been a part of.”  Listen to the farmers, my friends. The cost of putting food on your table through the traditional grocery store method will also increase.  Food-at-home prices rose 11.9% over the past year — the largest 12-month increase since April 1979.   I have said before that some solutions for you are to get more local with your foods, buy in bulk and take advantage of sales, form sharing community co-ops, build a year or more food reserve, and cook what you prep to make it part of your everyday diet, and to grow or produce some of what you produce.  Even applying a few of those solutions to your daily life will lessen the problem’s impact, and the problem is shaping up to be the worst since the Green Revolution and modern farming. Extreme weather and megadroughts will result in crop and herd die-offs.  Growing schedules are out of whack, and the land is dry.  The price of fertilizing and irrigating land has increased so much that some corporate farmers are choosing to rest their land and let it go fallow for a year until things look better.  All the while, we have actual food shortages in some parts of the world and food hoarding activities in some countries.  Expect world hunger to become a major issue again.  Expect that getting food to your table will become increasingly more expensive, if not challenging.   SUPPLY CHAIN  Supply Chain 2Though we touch upon this with fuel, food, energy, and inflation, the supply chain needs its own category.  Consumer demand temporarily but dramatically changed in 2021.  This resulted in many retailers putting in huge orders to manufacturers.  Then there was a resulting surplus as things corrected slightly.  This is referred to as the bullwhip effect, and it can be seen all across the supply chain. If a supply chain can be seen as a smooth body of water when functioning well, COVID lockdowns, extreme weather, shipping problems, a war in Ukraine, embargoes, a chip shortage, food shortages, worker shortages, soaring shipping rates, warehouses brimming then emptied, containers stacked up out at sea then no ships on the way and so many other factors are stones thrown into that smooth and placid body of water. Expect this supply chain to continue to be tumultuous.  Some consumers will turn towards more necessities, and others will seek higher-priced luxury and convenience items.  The logisticians, manufacturers, and retailers will struggle to accommodate both, but this problem will persist for quite some time.  You would be well served to stay ahead of the crowds and ensure your essentials are in order enough to get you through any future lapses in the flow of goods. FAKE MONEY Fake MoneyAmerica’s buying power has declined steadily over the last several years and dramatically in the face of inflationary pressures.  It’s not just your wallet impacted by the fiscal problems.  The Fed has been printing money and dropping the interest rates so low to stoke the fires of the economy that these methods no longer work.  24% of all the dollars in the money supply were created in just the last 24 months, but the economy hasn’t produced more.  It hasn’t sold more.  It hasn’t been very productive at all.  In fact, it has retracted significantly.  None of the policies implemented cure the spending and debt problem.   It’s gotten worse, too.  The Federal Reserve requires banks and other depository institutions to hold minimum reserves against their liabilities. Typically, the marginal reserve requirement equals 10 percent of a bank’s demand and checking deposits.  That was suspended in 2020 to stoke the economy in the face of the COVID pandemic.  It hasn’t been re-established.  A lower reserve requirement means the Federal Reserve is pursuing an expansionary monetary policy. The lower reserve requirement means banks do not need to keep as much cash on hand. This gives them more money for consumer and business loans. However, one bank lends out all its reserves in loans and to other banks, who then lend that out to others who lend that out, and so on until there are far more liabilities and no actual reserves.  This increases the nation’s money supply, but it’s artificial.  Think of it like maxing out all your credit cards, except when you reach the maximum, you just get an additional credit card and max that out too.  The bills eventually come due, but you never had the money in the bank to pay the minimum payment anyways.  When this crazy policy, along with the other monetary policies that have been implemented, all run their course, it will be a collapsing house of cards that will make 2008 look like a blip on historical charts. GAPS WIDENING Gaps WideningU.S. household debt increased by $1 trillion in 2021.  Many US households have tapped into savings and retirement plans to stay afloat or are turning to credit debt.  Student loan debt is in the trillions.  Mortgage interest rates have risen.  Mortgage delinquencies have risen, bankruptcy filings have increased, and median home prices have soared far beyond previous bubbles, which has priced many entirely out of a future that includes the dream of home ownership.  Foreclosures have surged 181% over last year, as COVID relief measures have expired.  Expect that number to skyrocket over the coming months, enhanced by higher interest rates and inflation pressures. The rate of job creation can’t keep pace.  Also, the Federal minimum wage hasn’t increased since 2009, even in the face of all these problems and the rise in the cost of living.  The American middle class is shrinking, and we are living in a lopsided economy where the rich are getting super-rich, and the rest are struggling to keep a roof over their heads, food on the table, and gas in their cars.  Though economists have warned about the effects of this widening income disparity for years, the inevitable outcome is beginning to be realized in what is being called the Great Resignation.  People are less willing to work when the result is barely scraping by.  The end result is social disorder, and, historically, wide gaps like this have led to revolutions, governments collapsing, and, quite literally, heads rolling.   COMBATIVE POLITICS Combative PoliticsArguments coming to blows between politicians on opposite sides of the fence isn’t new.  The last time it really spilled over into the general population, we had a civil war.  Some people think that the conditions might be ripe for such an event again.  There is no doubt that the political divisions are deep.  There is no doubting that every conflict with a manifesto has some tinge of politics wrapped up in it.  There has also been talk of State’s rights and possible succession after each recent election. Mainstream media just encourages these divisions, as do the politicians themselves.  Some people will always take the rhetoric to a higher level.  The incidents of violent altercations that were politically motivated that we have witnessed over the last several years will likely continue to intensify.  Is more profound division possible?  Are more violent encounters possible?  Yes.  It’s a powder keg, and the sparks required for an explosion are becoming more frequent and closer to that keg. The U.S. Department of Homeland Security is warning of increased domestic violence, and we see those threats materialize in real-time as we head into midterm elections.  These violent domestic flare-ups centered around political divisions are even more significant than the cyberattacks, terrorist threats, and foreign governments seeking to foment division and weaken the US’s standing in the world. However, all of these threats still exist. RECORD-BREAKING WEATHER Record Breaking WeatherThe Indiana Michigan power company was working through the night this week to try and restore power to 40k customers after record-breaking winds disrupted power. Hydroelectric operators have warned that they will be forced to reduce output because of a record-breaking drought.  A conglomerate of power companies just warned that blackouts and brownouts are possible for millions as they struggle to maintain power production through record-breaking heatwaves.  Record-breaking straight-line winds up to 105 miles per hour reached from Kansas to Wisconsin, pushing waves of farmland topsoil across the horizon.  Meanwhile, record-breaking Yellowstone floods have wiped out roads, bridges, cutoff towns, and stranded visitors.  The deep south US is facing a heat dome this week with the potential for record-breaking temperatures. Not just in the US but worldwide, “record-breaking” weather is exacting a hefty toll on our stable futures.  More than half of Mexico faces moderate to severe drought conditions.  The iconic Sriracha sauce has stopped production temporarily because the drought has severely impacted the harvest of peppers they source from Mexico.  Nuevo León, a state in the northeast region of Mexico that is home to almost 6 million, has restricted water access for its citizens to just 6 hours between 4 AM and 10 AM.  The extreme, record-breaking downpours last year in British Columbia washed out three major highways and cutoff 5 million people from essential goods flowing in from the Port of Vancouver.  Severe rains and floods just hit southern China.  Eighteen died in India and Bangladesh floods that left millions without homes. You don’t have to look far to see that weather patterns are moving towards the extreme.  There has always been extreme weather here and there, but we haven’t seen the “record-breaking” kind of extreme weather in so many places all at once.  Things don’t appear to be getting calmer, either.  Expect more “record-breaking” weather, and anticipate the impact it will have on your livelihood, nation’s economy, power, food, water, and every imaginable facet of your life. WHAT YOU SHOULD DO What You Should DoSo, with inflation going vertical, debt skyrocketing, fake money being produced, energy supply and demand sputtering towards total failure, increasing and sometimes violent, political divisions, record-breaking weather patterns, and we only need a little bit more tightening for the wound spring that is our economy to fall apart and unravel entirely.  That push could be a natural disaster, war, or political conflict, or it could just be a continued strain from these pressures.  We are stretched pretty thin and wound pretty tightly right now.   Strengthen your food, water, energy, medicine, and essential preps.  I’m going to mention several videos right now and we’ll post links to them below.  We encourage you to watch my video on “How to easily build a 2-week emergency food supply.”   Some of the foods we mention there are already costing more or are under a supply threat.  Once you have that in place, you will have the essential nutrition you need to make it through short-term disasters that could occur.  You could then move to my video, the “Ultimate Guide for How to Build 1 Year of Food Storage.”  Finally, watch my video “8 Best Water Storage Options for Emergencies” and apply what you learn there to your preps.  If you just tackle the significant problems of food and water, your odds of successfully overcoming the challenges we are staring at in our future go way up.  If we are 5-years down the road and you never need to solely rely upon your stored water or your long-term stored food, and I hope you don’t have to, you will have at least secured peace of mind for yourself.  But, if you need to draw upon your emergency food or water even once during that 5-years, you will be thankful that you took the time to get your prepping house in order.   As always, stay safe out there.
  • This Looks To End Badly

    This Looks To End Badly

    True State of Our Union “Coming together is a beginning.  Keeping together is progress.  Working together is success” – Henry Ford. True State Of Our UnionWe purposefully avoid political discussions on this site because so much of that these days is based on falsehoods and an uninformed blame game amplified by media outlets that align with certain political views.  One side builds up a specter of the other side, points a finger of blame, villanizes the other, and tries to implement whatever policy they claim will fix everything.  None of that works, though.  None of that changes anything, and governments continue to repeat mistake after mistake, leaving we the people holding the bag.   Neither political party nor any new third party will give you the straight, unvarnished truth about our current condition as it doesn’t really help with their re-election bid.  In this blog, we will try to tell you the actual state of our Union.  We will try to leave the soundbites and quick fix panacea dream policies aside and instead focus on the actual state of the Union.  We’ll look at the issues dividing our nation, the potential spark to push us over the edge, and discuss what you can do now.  There’s a lot to unpack here. So let’s dive in… Download the Start Preparing Survival Guide To Help You Prepare For Any Disaster.  We’ll post a link below or visit cityprepping.com/getstarted for a free guide to help you get started on your preparedness journey.  POLITICAL CHASM Political ChasmConflict has always been a part of politics.  Hypothetically, the laws of our land, the way we regulate ourselves and others, are determined by an eventual agreement between at least two diametrically opposed viewpoints.  At times, when the views are too far apart, periods of extreme violence can follow.  The Civil War was probably the clearest example of that.  The struggles of the labor movement and conflicts preceding and following the rulings of Brown versus the Board of Education of Topeka, Plessy versus Ferguson, Roe versus Wade, and other significant historical interpretations of the Constitution have often resulted in violent clashes. Either party blames the other for all the things wrong in the world.  Either party demonizes and dehumanizes the other.  The reality is that this two-party bicameral system may very well consume itself with its hate and vitriol.  The political chasm has widened to levels many of us have never seen in our lifetime, and it seems to be ever-widening.  The U.S. Department of Homeland Security is warning of increased domestic violence, and we see those threats materialize in real-time as we head into midterm elections.  These violent domestic flare-ups centered around political divisions are even more significant than the cyberattacks, terrorist threats, and foreign governments seeking to foment division and weaken the US’s standing in the world. However, all of these threats still exist. With the current political turmoil we’re experiencing in our nation, there is sufficient spark to ignite the powder keg sitting under our stable lives.  Even without such a violent end to our regulating establishment, it’s enough to further stoke divisions and apply even more pressure to the brakes of gridlock.  If anything, the world moves faster than it did even 50 years ago, and our government, so divided, is woefully too slow to keep pace.  Our elected and appointed leaders are so slow to decide which road to take that it is easy to fathom that we may be hurtling headlong into the concrete median in the middle. INCOME INEQUALITIES Income InequalitiesFor the last half-century, the income gap between the haves and the have-nots has increased.  The middle class, those able to eke out a comfortable but not overly luxurious existence, has shrunk almost every year since 1971.  This occurs when corporate profits have increased more than 141% and CEO pay has risen by more than 298%, so not everyone is a loser in this equation.  It distills down and is measured by one’s ability to maintain a standard of living.  That is to say that factors such as income, employment, poverty rates, access to food, medicine, clean water, and housing affordability determine a person’s standard of living. Most are priced out of the American dream right now.  The median income in 1970 was almost $10,000. Adjusted for inflation in today’s dollars, that would be the equivalent of a little over $75,000.  The median home price was $17,000.  Adjusted for inflation in today’s dollars, that would be $128,000.  Suffice it to say that it is doubtful you can find a home in the United States for $128,000.  The median price of houses sold in 2022 was $428,700, well over 300% more costly than fifty years ago.  Even throwing out the dream of a property of one’s own, rents have also gone up.  In 1970, the median rent was a mere $108.  Adjusted for inflation to put that in dollars today, that would be a median rent of $813.  I’m not renting now, but even a cursory look at the rentals available in my area tells me that you can’t find anything very livable for $813.  The median rent price nationwide is $1,104, which is a 35% increase. There is an undeniable disparity between the realization of the American dream in the 1970s and today’s American dream. Every stat you look at, from home prices to rent to the price of a gallon of milk or a dozen eggs, shows the same widening disparity. An ever-increasing majority is finding that just the cost of gas alone is forcing a choice between working to break even or just quitting altogether, and the last few years have quickened the pace. One recent study shockingly revealed that inflation has 67% of people dipping into their savings or retirement to pay for necessities.  U.S. household debt increased by $1 trillion in 2021.  Student loan debt is in the trillions.  Mortgage interest rates have risen.  Mortgage delinquencies have risen, bankruptcy filings have increased, and median home prices have soared far beyond previous bubbles.  Foreclosures have surged 181% over last year, as COVID relief measures have expired.  Expect that number to skyrocket over the coming months, enhanced by higher interest rates and inflation pressures. Whether the income inequality that led to such events as the French Revolution is ever realized will remain to be seen.  One thing is certain, though.  The inequality and the failure of the system to provide the average working citizen with the means to eke out a reasonable standard of living have to come to a head.  In its lightest incarnation, that takes the form of labor movements, strikes, and periods and pockets of conflict.  In its most extreme, there is an explosive revolt, followed by a period of restructuring.  Just like the political chasm, the income disparities and lower standard of living for the median citizen are dry fuel for a more significant fire. ANTI-INTELLECTUALISM Anti IntellectualismAnti-intellectualism is hostility to and mistrust of intellect, intellectuals, and intellectualism, commonly expressed as deprecation of education and philosophy and the dismissal of art, literature, and science as impractical, politically motivated, and even contemptible human pursuits.  Do those concepts sound familiar? Perhaps the opposite of intellectualism is the conspiracy theories.  In recent years and encouraged and increased through the internet and social media, conspiratorial theories are far more accepted than scientifically derived facts.  There’s often an outright distrust of intellectuals and facts that counter one’s own confirmation bias.  A confirmation bias is a cognitive bias that favors information that confirms previously existing beliefs or biases.  Whatever you label it, there is an evident movement away from trusting information. This sometimes plays out as merely an argument, and people move on to their everyday lives.  Other times we see it leading to conflicts and persecution.  We don’t know what side you, the viewer, may be on, and it doesn’t really matter.  This is an age-old battle between science and religion, brains and brawn, technology and the old ways.  Still, today, the fires of this ancient battle seem to be heating up more than they have in the past. Whether that’s enough to boil over into a nationwide conflict or just smolder along as it always has, remains to be seen.  One thing is sure, though, like the political chasm and the income equalities, it’s more dry tinder for a more significant fire. STATES’ RIGHTS State RightStates’ rights are the powers held by individual US states rather than the federal government.  It has been argued publicly and privately as far back as 1798 when Thomas Jefferson and James Madison secretly wrote the Kentucky and Virginia Resolutions in response to the Alien and Sedition Acts.  The Kentucky and Virginia Resolutions provided a classic statement supporting states’ rights and called on state legislatures to nullify unconstitutional federal laws.  That was 224 years ago, and I would venture to say that the average American couldn’t tell you what the Alien and Sedition Acts were.  They may not know much about the other flare-ups of States’ Rights in 1832, the 1850s, 1876, or even the 1950s and 60s. States’ rights are almost a barometer of the populace’s willingness to find mutual compromise on the most divisive issues of the day. It’s a battle that has raged as long as we have been a Union of States.  Often it was settled in Congress or the Supreme Court.  Sometimes it was settled on the battlefield or in the streets.  Our “Union” hasn’t been without its bumps, bruises, scrapes, and gaping wounds. We see the States’ Rights issue flaring up in recent years. Currently, we are seeing small measures that call for seceding from the Union if certain conditions aren’t met, maintained, or changed.  Both sides of the political spectrum seem okay with the possibility of a State eventually seceding– those left and right coast liberals and those midwesterners and southerners increasingly tease the idea of separating from the Union.   The country’s currently highly-interlaced economic and military structures would make the reality of a State seceding remote. Still, we have seen citizens march on State and Federal capitals, so it isn’t as outlandish as it might seem.  At the very least, the continued debate over States’ rights will play out aggressively in cities, states, and courtrooms.  So, like the widening political chasm, income inequalities, and anti-intellectualism vein, States’ rights too are dry tinder for a much larger fire. THE SPARK Economy and InflationIn my opinion, the most likely spark for all that dry tinder of division is the failing economy and inflation.  The Fed has been printing money and dropping the interest rates so low to stoke the fires of the economy that these methods no longer work.  24% of all the dollars in the money supply were created in just the last 24 months, but the economy hasn’t produced more.  It hasn’t sold more.  It hasn’t been very productive at all.  In fact, it has retracted significantly.  None of the policies implemented cure the spending and debt problem.  Government borrowing and spending, worker’s being sick or refusing to work, the war in Ukraine, Chinese lockdowns, low-interest rates, corporate greed, and supply chain disruptions are all valid reasons for the current inflation we are experiencing.  Inflation is approaching 10%, and on some items, prices have gone up much higher.  It’s higher than it has been since 1981–41 years ago.  The US economy will grind to a halt in the 2nd half of 2023, and the following year won’t be much better.  That’s a very long time for a spark to be hanging around all that dry tinder of discord.  America’s buying power has declined steadily over the last several years and dramatically in the face of inflationary pressures.  It’s not just your wallet impacted by the fiscal problems. Unless the economic picture worldwide and domestically improves soon, all the conditions for some type of violent change are possible.  We have seen enough comments on my videos and on various websites calling for violent revolution.  Having seen firsthand while living in Afghanistan in 2003 providing humanitarian aid, we know what war does to a country, and we think it’s not in anyone’s best interest for a total collapse.  Unfortunately, even those typically most willing to stay within the lines are seeing some merit to radical change.  That does not bode well for the status quo.  Whether that leads to an outright, violent revolution or we sidestep what is increasingly appearing to be inevitable remains to be seen.  One thing is for sure.  Just like every violent upheaval of the past, there are things you can do to insulate yourself from that possibility.  WHAT CAN YOU DO? Get ReadyWhen the economy falters, you’ll be thankful if you have taken measures to prepare and develop some level of self-sufficiency, even if only for a few weeks or months.  If violence breaks out across the country, you will be faced with some difficult decision.  When the supply chain that brings food from farm to table fails or the infrastructure that provides power and freshwater ceases to work, you will either be prepared or you will be a victim. So, what can you do?  First, get your essential preps in order: food, water, energy, security, medical, health, and shelter.  While you are doing that, actively try and learn new skills.  If the dollar becomes worthless, what you know how to do will be a tradeable commodity. If you any tradeable skills, such as being able to hunt, fish, make soap, brew, can, pickle, sew, knit, mechanics, build, medical arts, garden, herbal remedies, forage, or scavenge, and you have put these skills into practical use from time to time, you’re going to be better equipped to survive the aftermath of a disaster. The phrase ‘knowledge is power’ could not be more accurate. After just a few generations, we have become accustomed to meeting our needs with a few clicks of a keyboard or with a few words and a little money.  Build a physical library of a few forgotten skills, crafts, and sustainable activities of the past. You may not need a Dakota Fire Pit now, but it might not hurt to know how to build one later. Don’t rely on gear you have never pressed into service to work correctly in a disaster. Your best prep is our skills and knowledge. You have to start now and not just contemplate getting started prepping.  America’s strength has always come from its ability to unite, work together, and overcome any obstacle or enemy, but that seems to be behind us now. We wish we could say there was some unifying event on the horizon that could bring us together, but we don’t see one.   At the end of the day, it’s up to people to learn to take care of themselves.  You can support the status quo and lament the changing world as it changes around you.  You can try and drive that change and watch your best efforts to create some positive outcome for yourself evaporate in the chaos of the resulting storm.  You can sit on the sidelines and do nothing and become a victim.   If history is any indicator and the present world is any sign of things yet to come, failing to prepare is preparing to fail. Perhaps sooner than you think, there will be a time when your lights are off. There may be a time when your water is unfit to drink.  The only thing you can do to position yourself to survive the fire from all that dry tinder and the spark is to prep.  Start small by building your supplies for a 3-day supply, then 3-week, then at least 3-months. You can check out my Ultimate Guide on How to Build 1 Year of Food Storage in this video.  This will put you better positioned than 90% of the population.  We would like to say that some substantial change will come that will unite us, but we only see the divisions becoming increasingly broader.  While we’d like to provide solutions to these issues, the only thing we know we have control over is preparing.  And we would advise you do the same.   As always, stay safe out there.
  • If What They’re Telling Us Is True, You Better Store Food…

    If What They’re Telling Us Is True, You Better Store Food…

    Major Food Supply Issues Coming “Pay attention to the hungry, both in this country and around the world. Pay attention to the poor. Pay attention to our responsibilities for world peace. We are our brother’s keeper” – George McGovern. We try to get as close to the source of information as possible. When it comes to getting accurate information, it’s already too late to act by the time it is in the mainstream media broadcast news, and the information is often distorted, understated, or exaggerated. Regarding our food supply, the people we should be listening to are the farmers, ranchers, and truckers.  There are others, but these three sources are the “boots on the ground,” so to speak. What we are hearing from them doesn’t provide an encouraging outlook.  We don’t want to scare you, but we would be remiss if we didn’t take a very sobering look at this very real food supply dilemma that’s currently playing out.  The food supply we are accustomed to with multiple options at affordable prices is giving way to what is shaping up to be a long period of scarcity and global food insecurity.  In this blog, we’re going to provide real feedback from the big 3’s point of view: farmers, ranchers, and the truckers and then look at some ways you can insulate yourself from the new norm of food insecurity that many face now and clearly is growing daily in scope and size.  So let’s jump in… Download the Start Preparing Survival Guide To Help You Prepare For Any Disaster.  We’ll post a link below or visit cityprepping.com/getstarted for a free guide to help you get started on your preparedness journey.  FARMERS FarmerHigh fertilizer prices are forcing farm managers to rebalance cost-to-yield ratios for food production.  Total synthetic fertilizer consumption has risen 800% since the 1960s, creating a system where single crops, monocultures, can produce an abundance.  Fertilizer costs have risen steadily over the years but have been absorbed mainly in the cost-to-yield ratios.  After Russia invaded Ukraine, however, food supply chains and the supply of affordable fertilizer were massively disrupted.  Prices have sharply risen, and fertilizer now accounts for an unsustainably high 45% of a farm’s variable input costs.   This results in a few basic strategies for the farm manager.  He can decide to simply not grow food in some of his productive fields and grow cover crops instead to replenish the soil.  Cover crops like grasses (such as ryegrass or barley), legumes (such as alfalfa or clover), brassicas (such as radishes or turnips), and non-legume broadleaves (such as spinach or flax) are great for restoring soil nutrient levels. Still, they don’t contribute significantly to our food supply.  And, planting cover crops reduces the amount of land being farmed that season for human and animal food consumption. Another strategy, when faced with the soaring price of fertilizers, is to switch crops, but that’s not the easiest of tasks.  A farmer’s crop is calculated and planned well before the first seed is dropped in the soil.  Switching gears isn’t easily accomplished, and many farmers are reluctant to switch gears to a different crop for what could be a temporary shortage.  The best example of this is the wheat deficit created by the Russo-Ukrainian War.  America can’t just step up and fill the world’s wheat shortage.  Spring and durum wheat, accounting for 25% of the US production of wheat, are typically planted as soon as soil conditions permit in mid-March through May and are harvested in the late summer or fall of the same year.  Farmers had already plugged in all their calculations and likely obtained all the seed they would use and all the seed that was produced for replanting when Russia invaded at the end of February.  Switching gear is no easy task at all.   Fertilizers, herbicides, and insecticides have all risen in price, some more than four times last year’s costs.  The result of higher input costs and drought means crop yields for both cotton and corn, two major US crops, are expected to be down more than 50% from last year.  A drop of that much devastates the food supply chain, from exports that keep an economy strong to manufacturers who process those harvests into usable food for your grocery stores and, eventually, your table.   In a nutshell, the global supply chain disruptions of the last two years, a twenty-year mega-drought in well over 50% of the country, the rising cost of fertilizer and fuel, and trying to balance the variable input costs to net any profits on the backend, are all sending spasms through our food supply chain.  These are significant enough to potentially forever change our modern food supply.  RANCHERS Ranch ManLong before your store runs out of your kid’s favorite breakfast cereal, ranchers will also experience lower yields.  This means that flocks and herds will be downsized, the price of meat will rise, and its availability will drop.  Milk and egg production, as well, will be reduced to align with input resources like feed and water.  This is partly because of lower feed grain yields, but it’s also a logistics issue.  During the pandemic, railways, already reportedly 25% understaffed, laid off a significant amount of their remaining labor force.  Those laborers found other jobs and are reluctant to return to the long-hour, low-wage jobs that keep the trains moving.  It’s significant enough that the Surface Transportation Board (STB) recently held a hearing about the issue. It is a significant enough problem that Foster Farms, the largest chicken producer in the western U.S., pleaded with federal regulators to issue an emergency service order that would direct Union Pacific to prioritize corn shipments that thousands of dairy cattle and millions of chickens and turkeys depend upon.  It’s significant enough of an issue to prompt 51 members of Congress to write and sign a letter to the Surface Transportation Board, pleading with them to work with all stakeholders to resolve railway issues for fertilizer and feed grain specifically. They wrote: At a time when global fertilizer supplies and global crop production are highly disrupted, imposing shipping curtailments on fertilizer inputs and grain, as recently proposed by Union Pacific, will cause major supply chain disruptions, hurt American farmers, and exacerbate the food crisis considerably. We must ensure critical commodities reach essential industries and workers, such as America’s farmers, who are essential to feeding our nation and the world. Food is a national security issue, and we must treat it as such. Finally, if it isn’t feed grain for their herds, it’s water.  Most western states are still in the grips of a devastating multi-decade drought and record-breaking heat.  Drought and heat are a recipe for herd die-offs.  Cattle can start experiencing heat stress at just 72 degrees Fahrenheit with 50% humidity.  Compound that with a lack of water, it can lead to lower milk production, higher incidence of disease, and a higher death rate.  The cost of watering animals has increased, and getting the proper water supply has become more complex.  So, the production of feed grains is more costly with lower output, distribution challenges remain and are amplified, and a persistent drought leads to a reduction in flock and herd size and an escalation of prices.  This all forecasts a hard road forward for the meat producers in the US.  You can expect fewer selections, higher prices, and outright food scarcity. TRUCKERS Truck72% of America’s freight moves by truck, and last year the US suffered a deficit of 80,000 drivers.  That high demand hasn’t equated to higher wages for truckers.  In fact, drivers’ pay has been cut from an adjusted median of $110,000 in 1980 to just $47,130 in 2020.  If you’re an independent trucker, you might be considering a different line of work simply because of fuel prices.  A big rig will get around 6 miles per gallon and has a tank capacity of about 150 to 300 gallons.  The cost to fill that tank today to travel those 900 to 1,800 miles is between $800 and $1,600.  That dramatically cuts into any profits.  Taken together, 72% of America’s freight, a large percentage of which is food, is experiencing a doubling in cost to get from point A to point B to your doorstep. Truckers are feeling the same fuel cost spike that farmers are.  At the same time, they are experiencing a similar labor shortage that the railways are having.  Truckers are willing to work, but the pay is not keeping pace.  Many truckers are considered independent contractors and not employees of these trucking companies. Despite the difficulties in this underrecognized industry, trucking schools are projecting a 32% increase in students seeking their commercial Driver’s Licenses.  That’s a good solution, but it will take time to plug it in and see any results on the other end.  Big trucking companies are boasting record profits. They’re saying that they’re in the most profitable position that they have been in history in some cases, primarily because they can demand higher prices.  Those profits, however, are not translating into improvements for truckers’ working conditions and wages. Those profits aren’t trickling down to consumers unless you are a major shareholder, nor are they improving the overall economic forecast.  On the contrary, a deepening recession is increasing in likelihood by the day. Taken as a whole, the supply chain is spasming from the combination of railway and trucking logistical issues and a spike in costs.  This makes it hard for farmers and ranchers to get what they need and to get what they produce to manufacturers and you. WHAT DOES THIS MEAN TO YOU, AND WHAT TO DO ABOUT IT Farmer StoryWe hate using the “perfect storm” analogy because it seems like we have used it so many times this decade.  However, the perfect storm analogy fits so many scenarios as to what we see in these times.  When we listen to the farmers, ranchers, railway workers, and truckers–all of those “boots on the ground” folk that put food on your table and a million other products to your doorstep– they’re all telling a tale of woe.  When one of these critical systems temporarily experiences setbacks, say a crop fails, or truckers or meat packers strike, the disruption is often absorbed.  When so many disruptions hemorrhage in these critical systems all at the same time, it’s possible that a new dynamic may emerge, or the system may never fully recover at all.  It quite literally is a perfect storm here, converging now and for the foreseeable future. You should be bracing for higher prices.  The cost of fuel, fertilizer, and labor will eventually be transferred to consumers.  Beyond higher prices, which, honestly, ask anyone, is inevitable, this time we are looking at the genuine possibility of food shortages and scarcity.  This will result in fewer exports, damaging the country’s economic health and increasing the odds of a recession morphing into a full-blown depression.  This will result in famine in some regions of the world.  This will result in people needing to adjust their expectations of food security and their diets.  This will result in panic buying when news of this starts promulgating through the media, and this will further exacerbate the food supply problems as available inventories are depleted.  We can probably all adjust to fewer choices in the chip aisle, but it is significantly harder to adapt to a scarcity of available corn or soybeans because the grain being grown must be routed to feed operations.  I single out corn and soybeans here because beyond their use as a source of food, they are also major components in Ethanol production, and Ethanol makes up 98% of US gasoline.  So, in a vicious cycle, food and fuel prices spiral up together. We should take heed when we listen to the warnings from truckers, railway workers, farmers, and ranchers, which are better sources than mainstream media outlets.  The solutions you should be plugging in and the preps you should be prioritizing are to put away your 3-month or greater supply of foods.  This goes beyond a 3-day or 3-week supply that can see you through typical disasters.  Seek out and cultivate locally sourced food, even if that means changing the way and what you eat regularly.  Buy in bulk and learn to preserve, dehydrate, or freeze-dry food.  Plant something, anything, to supplement your food resources.  Above all else, brace for this storm that is still in its early phases of forming but appears to be bigger than any storm we have faced in recent history.  The luxury of affordable food in abundance may be coming to an end, and we preppers will need to adjust accordingly. At the very least, even if there are no significant disruptions in the food supply in your particular region of the country or the world, you will see the price of everything continue to rise as these higher costs continue to get passed along to you the consumer.  The global food supply chain is struggling to find some sense of equilibrium.  Just one significant natural disaster or a continuation of the record temperatures and droughts through this year and next could be enough to push the house of cards entirely over. If the boots on the ground are to be believed, and I believe them, the high yields from fertilizer and good weather through long growing seasons may be something we reflect back on as “the good ol’ days” of farming.  With countries hoarding grain and a global supply chain that continues to try and find its footing, we aren’t precisely in opulent times.  We may look at the periods in history earmarked with crop failures, dust bowls, and food scarcity to chart our course forward. If you want to ensure you have all your bases covered, work from a plan like the Prepper’s Roadmap we have available which we’ll post a link below.  Time is of the essence.  Secure your food and water supplies and free yourself somewhat from the ongoing turbulence that the food supply will continue to suffer from.   As always, stay safe out there.  
  • 4 Signs It’s About To Fall Apart

    4 Signs It’s About To Fall Apart

    Don’t Miss Your Only Opportunity “The failures that you beat yourself up over are the ones where you experienced warning signs and can connect the dots backward after the fact”- Caroline Ghosn. There are clear patterns that precede a more significant collapse.  Whether that’s the oil market, the price of beef, or the events leading up to a deep recession and depression, many warning signs are out there for us to see.  As a prepper, with your ear to the ground, you should already be ahead of the general masses–the herd– so you are never caught up in panic buying and fighting for scraps.  In this video, we want to examine the little signs that could indicate a more significant crisis forming in our future.  At best, we may only suffer through some high prices and some product scarcity in the next few years.  At worst, we experience more out-of-control inflation, shortages, panic buying, a depression, a dust bowl, or worse. In this blog, we will look at some of the clear signs of trouble right now and where you should be with your preps so you aren’t lacking and aren’t fighting over essential preps.  We will show you real problems today to help you develop a strategy to deal with their impact on your life.  These are some of the signs to watch for, and what to do when you see them, so you don’t miss out altogether, and you don’t suffer as horribly as the masses will.  So let’s take a look at the four signs to watch out for… Download the Start Preparing Survival Guide To Help You Prepare For Any Disaster.  We’ll post a link below or visit cityprepping.com/getstarted for a free guide to help you get started on your preparedness journey.  WE ONLY KNOW WHEN THINGS GO WRONG Broken CarLet’s start off imagining you are driving down the road in your car.  You’re just cruising along.  Maybe you’re listening to your favorite radio station with the windows rolled down.  Everything is fine until suddenly there’s a noise from your engine.  Maybe there’s a sudden grinding somewhere or a high-pitched squeal.  Everything was fine a moment ago, but now your mind is frantically racing.  How much gas do you have?  When was the last time you had the oil changed?  When was your last tune-up?  And so on and so on, until you pull over, dead on the road, and have to figure out your next move.  Somewhere along the way, the perfect system that was you getting in your car, turning the engine over, and driving from point A to point B failed.  All the world is a series of endless systems.  When they are finely tuned and operating without flaw, we hardly notice them.  We barely understand their machinations.   As a prepper, watching this channel right now, you have the opportunity to be ahead of the curve.  You have the opportunity to recognize the signs I will point to here and prep to insulate yourself from the impact of their failing.  Our current systems have evolved and fine-tuned themselves over time, so even history only provides marginal insight.  Nobody can accurately forecast the future, but we would be foolish not to acknowledge the signs and assess the storm’s strength on the horizon.  Here are the four signs of trouble I see right now as they reveal themselves in real systems that sometimes overlap.  You would be wise to do as I am and prep accordingly. SIGN #1: INPUT DOES NOT EQUATE TO OUTPUT CattleThe USDA began keeping statistics on beef consumption in 1932, when the average amount consumed per capita was 32 pounds per person per year.  Innovations in the cattle industry, an abundance of feed crops because of better agricultural practices, a streamlined and finetuned processing operation, and better refrigeration methods increased consumption to a high of 88.8 pounds per person in 1976.  That’s a lot of roasts, steaks, stews, and hamburgers.  Since that high in the ’70s, beef consumption has dropped to a manageable 55.5 pounds of beef per person per year.  It may seem like a small number, but if you just calculate people 18 or older in the US, that’s a staggering 11.6 billion pounds of beef.  With a number that incredibly high, you can see all the parts of that system that have to go right to move that amount of product.  You have to have input that can equate to that 11.6 billion pounds of output.  The signs are there that we don’t, so let’s examine the input problems. Cattle need food and water to grow big enough to be slaughtered.  We then need the right skilled cutters and facilities and meat packers.  We need the refrigeration capability, and we need a healthy consumer market.  This is an oversimplification of the system for the purpose of illustration, for sure, but let’s focus on the first inputs: food and water.  America is in the depths of a multi-decade megadrought.  The results of the high heat and ultra-dry climate are less water and higher prices for water.  Likewise, the crops of feed grains, hay, silage, and stems from corn, wheat, and oats have smaller harvests.   Growing this feed requires water and sometimes fertilizer.  The cost of both of those has gone up.  Growing this feed requires low-cost diesel fuel to harvest and process it.  The price of diesel has gone up.  The farmers are struggling to break even.  More than 50 percent of the U.S. beef cow herd is directly threatened by drought.  Across the country, more than 50 percent of pastures and ranges are rated to be in poor to very poor condition.  The bleak prospects for pasture and hay production, combined with the continued diminishment of hay stocks, suggest that significant and severe impacts on cattle herds are ahead as summer approaches. If you know a farmer or a trucker, talk to them about the costs right now.  These are the people at the front of the input of this system.  You may have also heard about the recent reports of lines of trailers lined up to drop off livestock at auction.  Cattlemen are anxious to sell their livestock while prices are high because they already feel the high costs of feeding and tending to their herds.  Their input costs, also known as variable costs, are skyrocketing.  Before that reaches you, the consumer, because all rises in costs eventually get to you, there will be a surge in beef inventory.  Those processing plants and refrigeration facilities will be packed.  You may even see some great deals on beef as grocery stores try to unload inventory to also take advantage of the cheap and plentiful beef coming in on their manifests.  But, if the input is the food and water required to produce a healthy cow herd, and the output is the end beef product, what happens when the national herd levels are low?  What happens after cattlemen have reduced their production to try and find equilibrium and profit?  Well, you get a shortage of products at the same level of demand.  That leads to the second sign of problems in the future– depletion of inventory. SIGN #2: DEPLETION OF INVENTORY Meat InventoryThere’s a whole bunch of frozen beef.  The system is designed to absorb as much impact from temporary problems as possible.  The United States also imports a good percentage of beef from Canada, Mexico, New Zealand, and Australia.  However, as economies worldwide continue to erode, the cost of imports increases.  Some countries stop exporting altogether.  Inventories can actually run low.  Then the conversations those cattlemen were having are suddenly vaulted into the mainstream media, and panic buying can set in across the masses.  This further exacerbates the problem by further depleting inventories.  Input not equating to output grows into a much greater problem. This sign we should be noticing has recently been observed in the fossil fuel industry.  The problems are numerous there.  There are permits granted, but no drilling is taking place.  There aren’t enough refineries to keep pace with the demands of a car culture.  There isn’t enough product to fuel the power plants that feed our homes.  Even the Strategic Petroleum Reserve is only 727 million barrels of oil at its maximum.  We consume about 19.78 million barrels per day, so that’s only enough to last us 37 days.   We have seen this depletion of inventory sign in the microchip manufacturing sector.   Today’s cars are computers with wheels containing more than 100 microchips, powering everything from climate controls to shift timing.  Microchips are everywhere. In 2020, more than 932 billion chips were manufactured around the world.  They power everything from your gaming console to your blender to your refrigerator, TV, radio, computer, router, and so much more.  With the global lockdowns, supply chain disruptions, and a drought in Taiwan, the producing country of half the world’s supply of microchips, the available inventory of microchips was depleted.  This led to a surge in price for any electronic item you purchased.  It slowed down the trucking and farming industries, as parts needed to maintain a fleet of vehicles suffered.  It led to a huge jump in the price of new or used cars, resulting in a dwindling of the supply of cars in inventory. With any resource or supply line, you can see the consequences of Sign #2, a depletion of inventory.  As a prepper, you should always look for these possible depletions and extrapolate out the true impact they will have on you.  Just as you might assess your food and water resources in any new environment, you have to also examine the threats to your supplies based on the level of inventory.  Is the inventory level substantial enough to weather whatever small storms and minor crises that are occurring?  Is there enough beef in warehouses for a reduced output level for several months, a year, or longer?  The third sign of compounded problems will determine the answer to that. SIGN #3: COMPOUNDED PROBLEMS Overheat CarTo reference our earlier example of the car, you have a couple of choices when the check engine light comes on, and an unknown squeal comes from your engine.  You can keep driving and pray you get to your destination, or you can pull over and try and diagnose what’s wrong.  In life, as with people and their cars, most cannot diagnose the engine problem and require input from others to maintain their system.  Many will just continue along their paths as if traffic flow will magically propel them forward.  A prepper, on the other hand, isn’t going to go with the flow of the status quo.  A prepper starts working on a solution and draws upon the preps they have thoughtfully and purposefully put in place. Let’s assume the car is driven despite the warning lights and the noise, maybe even smoke.  It will probably break.  One part failing puts pressure on other parts.  One belt breaking may result in another part overheating which may lead to another part seizing up.  Before you know it, the whole car could fail and catch on fire.  These supply chain systems, our power grid, our municipal water supply, our communication systems, all these systems we rely upon and take for granted, all can suffer from multiple disturbances.  When fewer people were leaving work to grab a fast-food lunch, suddenly potato farmers found themselves with an excess of potatoes that were no longer needed for french fries.  Some resorted to digging big holes and simply burying tons and tons of them.  When skilled meat cutters fell sick, the new supply of cut meat was reduced.  Fortunately, there was an abundance of stored, frozen, already processed meat, but then there was a supply chain problem of sourcing those little styrofoam trays your meat is packaged on top of.  When everything shut down, on-site consumption of beverages disappeared as well.  That left many breweries and beverage producers to turn to or up their use of aluminum cans.  That, in turn, resulted in a shortage of aluminum for cans.  Even in times of abundant production, you can have shortages. The most glaring current problem is the lack of fertilizers being produced from natural gas.  Liquid natural gas is rising in price, is being embargoed, and is being prioritized for heating homes over being used for fertilizer.  Fertilizer plants use an industrial process to generate the intense heat and pressure required to separate the nitrogen atoms and combine them with hydrogen from natural gas to produce ammonia.  That ammonia is used to produce urea– a fertilizer and diesel additive.  Less fertilizer is produced at higher prices when that gas is needed instead to directly power homes.  This forces fertilizer manufacturers to reduce output to align with what the market can reasonably bear.  This forces farmers to rethink and reevaluate their crops– perhaps switching from soybeans to cabbage, for instance.  But now, fewer soybeans are available as animal feed, for the production of Ethanol, or for the creation of plastics or oils.  Each of those shortages will compound other problems.  Before you know it, manufacturers who use 61% of the soybean oil produced can no longer make their products.  These products are FDA approved with specific formulations.  It isn’t like they can just dump some corn oil in their mix and call it done. One of the signs to look for in such a finely tuned supply chain is the compounding effect of one raw materials shortage.  The most severe shortage we are currently facing, which will have a compounding impact across every aspect of our lives is the severe diesel shortage of Diesel Exhaust Fluid.  DEF is a solution made up of urea and de-ionized water that is needed for almost everything that runs on diesel.  Every diesel truck manufactured since 2010 is required to use DEF.  DEF’s critical ingredient is urea, a derivative of natural gas.  It’s also used as a fertilizer.  The problems of a shortage of this vital component I have already outlined.  They can’t just roll back the DEF requirements, either.  Most every truck on the road has a DEF warning.  When it is ignored the truck either will cease to function or will go into “limp home” mode, with limited power and a limited number of times the engine can be turned over. The compounded problems of this crisis are limitless.  Farmers won’t be able to run their operations.  Truckers won’t be able to get anything hauled those final miles.  Trains will stop, along with boats and barges.  Absolutely everything will grind to a halt. SIGN #4: SUDDEN SUPPLY OR DEMAND SHIFTS Supply DemandThe final sign occurs perhaps too late for anyone to effectively act upon and stay ahead of the curve.  Sudden supply and demand shifts like panic buying and hoarding deplete inventories and are like throwing fuel on a fire.  The whole system, struggling to regain its footing, can’t catch up and find equilibrium.  It often then results in a complete failure, collapse, and a need for restructuring or decentralization.  It can take months, if not years, to reformulate these systems.  In the meantime, the economy suffers blow after blow, and the tumultuous supply and demand shifts ripple out across other, seemingly unrelated industries. The run-on toilet paper in 2020 also saw panic buying of beans, pasta, rice, and countless other staple items.  The shelves of the pasta and canned goods aisle were also empty.  Watch for the sign of a sudden supply and demand shift in consumers.  Watch for panic buying or hoarding activities.  Though when you see either, you may be too late to prep any further. CONCLUSION Everywhere you look these days, there are signs of systemic supply chain failures on the horizon.  The problems are too numerous to detail.  There is not a single state in America where a full-time worker making minimum wage can afford to rent a two-bedroom home.  The available inventory of homes for sale is dropping.  ERCOT is warning Texans to reduce their power use or face rolling blackouts, and the drought and high heat continue.  There’s a downsizing of herds going on right now.  There’s a critical shortage of fertilizer and urea.  There’s a looming diesel fuel crisis in our future.  We don’t want to scare you, but I can’t sugarcoat this either.  You must prepare to endure extended shortages, higher prices, and maybe even a total economic collapse.  Time is running out. Get a plan like the Prepper’s Roadmap and minimally secure food, water, and energy sources.  It might not be enough to sustain you solely, but it can be enough to get you through until an equilibrium of some kind is restored.  As these problems continue to grow in scope and reach, watch for input not matching output, depletion of inventories, compounding problems, and sudden supply and consumer demand shifts.  Recognizing these early signs of greater troubles to come will put you ahead of the masses and will position you to be better equipped to endure the challenges of a more complicated life.  If you see any one of them, you need to act fast.   As always, stay safe out there.  
  • A Warning Sign Of What’s To Come

    A Warning Sign Of What’s To Come

    12 Things To Do Now “Half of humanity is in the danger zone from floods, droughts, extreme storms, and wildfires.  No nation is immune” -António Guterres. If you’ve been paying attention lately, we’re hearing a lot about heat records being broken.  And before you discount this observation as “oh well, heat records have been broken before”, please note that these events are not simply one-off anomalies but rather a pattern that is increasing in frequency with each passing year.  So you may ask, “it’s getting hotter, so what?”  Well, if this pattern continues, and all the data points to this conclusion, we’re in for some challenging times.  These extreme heat waves are already having a profound impact on many around the world, and they will have a very real, profound impact on you as well. Severe weather will threaten where you live, what you eat, and possibly your very survival, and this isn’t a future event.  It’s here right now.  It has already started.  And we hate to be a downer, but every indicator points to this getting worse.  In this video, we’re going to talk about important aspects of the weather you need to understand, discuss the real and profound impacts these increases in temperature will have on all of us, and we especially encourage you to stick around until the end as we’ll cover a dozen practical things you can do right now to insulate yourself from future weather disasters.  So let’s jump in… Download the Start Preparing Survival Guide To Help You Prepare For Any Disaster.  We’ll post a link below or visit cityprepping.com/getstarted for a free guide to help you get started on your preparedness journey.  WHAT YOU NEED TO UNDERSTAND Heat WaveAll around the world, records are being broken.  The UK hit the ‘highest ever’ recorded temperature, smashing the previous record.  Highest ever, record-breaking, historical, all around the world, you are hearing terms like this applied to the heatwave that is sitting over areas for more extended periods.  From Shanghai to Rome to Sevilla to Oslo to Paris to Sacramento to Sapporo, the Earth is sizzling with never before seen record highs. The longest-running temperature record is the Central England temperature data series, which started in 1659. The longest-running quasi-global records began in 1850, but we can go way back in Earth’s history by measuring annual growth rings in trees, from ice core samples, geological patterns, and the fossil record.  We can determine from these when years were predominantly hot and when they were colder than average. Taken as a whole, there is no denying that there is abundant, peer reviewed evidence that the Earth is warming, degree by degree.  All around the world, the equable climates we rely upon are failing.  Jet streams are slowing and shifting more towards the poles, leaving weather patterns to linger for more extended periods and seemingly stall all together.  Storms are becoming more intense.  Highs are getting higher, and lows are getting lower.  Extreme weather is becoming more of the norm, and reliable weather patterns are being broken.  It’s no longer a one-off or even a once-in-a-lifetime occurrence.  It’s quickly becoming a once in human history occurrence. OUR OWN DESIGNS Weather Proof HouseWhen we build a house, we build it for multiple generations to possibly inhabit the same living space.  We are finding with these shifting weather patterns that the construction of a hundred years ago or even the construction of just a decade ago can’t properly maintain a stable living climate for us.  In the UK, they have a term for this– hothouse.  Houses constructed to protect against cold and mild temperatures aren’t designed for the high heat, so they trap the hot and humid climate indoors, at the same time, working outside is nearly impossible.  Around the world, some modern designs for office buildings built for mild temperatures to maximize natural light and infrared warmth from the sun are transforming workplaces into un-coolable saunas. It’s not just our construction that is failing. Our very infrastructure is at risk of collapsing under the heat.  Grids are strained to their maximum, trying to provide enough electricity to keep consumers’ fans and air conditioners running.  In Texas, natural gas producers are taking advantage of the high price of natural gas, up more than 200% since Russia invaded Ukraine.  This is due in part to the ability to ship it overseas because of laws established in 2015 under the Obama administration by shipping it to Europe to offset the reduction of natural gas coming from Russia.  This leaves little left to provide cheap energy to Texas residents, who have seen their utility bills skyrocket. At the same time, as your costs have gone up and your grids are failing, many oil conglomerates have recorded record profits.  This puts people, government, and corporations at odds.  Right or wrong, governments will eventually feel compelled to step in and reign in these global conglomerates.  As governments strain to regulate, the real squeeze will be passed on to you, the consumer. CROP FAILURES Crop FailuresIt’s not just our constructions and infrastructures that will fail us in the coming years.  The very food we sustain ourselves with will begin to fail repeatedly as long reliable farmland is baked, flooded, windblown, and decimated.  Long reliable crops will repeatedly fail year after year.  What harvests are accomplished will suffer in quality, with some of it allowed to simply rot in the fields. Our decades-long practice of mega-farms producing a monoculture lacking variance will be hard-pressed to pivot and keep pace with the changing temperatures.  Farmers will not be able to change directions fast enough.  Large scale meat production will be forced to downsize their herds and flocks, driving inventory down and prices up. While this will mean shortages of food items and higher prices for some countries, it will result in famine and death for other countries. FIRES & FLOODS FloodFires and floods will increase.  Constant high temperatures and a decades-long drought results in drier vegetation, compacted soil, higher winds, and lightning strikes.  Right now, wildfires are raging across Greece, Spain, and Italy.  The fire season has only just begun in the Western United States and parts of Canada. When the vegetation is dry, it is more apt to burn, and the soil becomes compacted.  Without vegetation after a fire, water is more likely to simply run off the land rather than saturate it.  So, a by-product of these record temperatures will be increased frequency and larger fires.  When the rain does come, the chances of flooding are also increased. DEATH & MIGRATION MigrationGlobal events shape how we live our lives.  Higher death tolls from the heat will result in the need for new construction, cooling centers, and possibly in some countries, a move away from a for-profit power system.  Every energy solution available will need to be applied to try and find a working solution.  Still, before it is over, many will die, starve, or be forced to move. Heat is a silent killer.  It descends upon us and lingers for an extended period.  It aggravates other conditions, so people don’t always die simply from heat stroke or overheating.  In the recent heat waves, officials attribute 800 deaths in British Columbia to the heat, more than 1,700 people in Spain and Portugal, and on average, about 2,000 extra deaths in England are related to heat waves each year. Currently, 30 to 60 million people are projected to live in hot areas where the average heat in the hottest month is likely to be too high for a human body to function well.  The term “environmental migration” will enter into our daily discussions.  Nearly a quarter of the Earth’s population, 1.8 billion people, is at risk of floods.  Just two years ago, more than 40 million people were driven from their homes by continued conflict and worsening weather, and the climate has grown increasingly more chaotic even in the last two years. Some evacuations will be temporary and sudden, allowing people to only temporarily be displaced.  Other evacuations will become migrations when land becomes uninhabitable, fragile, regional ecosystems collapse, and conflicts over resources arise. Even if the people don’t move, the animals will.  Already Armadillos have moved as far north as Illinois.  Sharks are following the food sources earlier along the US Eastern Coast.  Countless other migratory patterns and animal migrations will occur as our weather changes for good. A DOZEN THINGS TO DO NOW PreparednessThat’s a lot of doom and gloom, but it’s the unvarnished truth.  We can’t sugar coat this, dismiss it, or debate it any further, and we probably have to accept that the world’s leaders won’t come together and that the world’s population won’t find a solution.  Yet, the Earth will go on with or without us.  Here are a dozen things you should do now to make the difference between surviving, thriving, or possibly dying.
    1. Get water preps in place to see you through 3-months or a year or more, even if you live in a region where water is plentiful.  Establish a means to collect and channel it when it does rain.  Leverage this vital, life-sustaining resource.
    2. Get your food preps in order enough to sustain you for at least a year.  You will be able to stretch them over a more extended time to supplement the food you can acquire, but there will be more and more food shortages, scarcity, failing crops, and higher and higher prices.  Food reserves will make these easier to endure through.
    3. Grow something.  Whether that’s sprouts and herbs in your kitchen, a traditional vegetable garden, an orchard, or non-traditional foods like purslane, sunflowers, sweet potatoes, and Jerusalem artichokes, you need to rely more on yourself than on the supply chain of farm-to-table.  Again, you may not be able to solely sustain yourself on what you grow, but it will make the coming shortages easier to persevere through.
    4. Preserve it.  Learn to cook for yourself, preserve your food for longer, let nothing go to waste, and maintain a generous pantry.  We have gone from root cellars and whole pantry rooms to barely a food cabinet.  We have gone from only eating what we can produce to having food delivered from kitchens miles away from our own.
    5. Address your energy losses.  Find ways to gain efficiency in your home by switching bulbs, fixing drafts, installing ceiling fans, installing light timers, redesigning air flow patterns, or whatever it takes.  If you live on a piece of land, consider building a root cellar.  
    6. Address your energy needs.  I don’t know how many times in how many different ways I can tell folks the grid is going to fail them sometime very soon.  Consider a solar backup battery system, small or large.  Understand what you need to run and what you can do without.  Make sure your critical systems continue to run, and you can function through a long period without power.
    7. Know your history.  Understand the historical record of your area.  Was there a great flood in the region one or two hundred years ago?  Understand that will happen again.  What was your community’s response to the heatwave and drought many experienced in 1976?  Is your municipality likely to tell you to let your lawn die, as many did back then, to conserve water?  Understanding the past will help you avoid the obstacles of the future.  You will be able to pivot ahead of the masses.
    8. Get local.  Get to know the people producing food in and around your community.  Understand the local sources of food by visiting the farmer’s market.  One of those smaller food producers uses a greenhouse or has too many eggs.  Make those connections now for when you genuinely need them after the supply chain decays further.
    9. Learn a skill.  Watch the practical videos on this channel or others and commit to learning one new skill this month you can put into practice.  Learning how to make soap or tie a fishing knot may seem like a twee hobby right now, but it might just prove critically valuable for the future.
    10. Learn to forage.  There’s more food out there than corn, oats, wheat, and barley.  There are thousands upon thousands of edible plants and quite a few that could kill you as well.  Know a few of them that won’t and learn how to sustainably use them from your environment.  Hopefully, you will never need to survive on them solely, but they will supplement your food sources now and help you to understand at the ground level how your environment is changing from year to year.
    11.  Plan your escape.  Understand the threats you face and make sure you have a plan to get out to a safer location should the waters ever rise or the fires blow in your direction.  Don’t put this off, as your survival will depend upon the planning you do now.
    12.  Build a bug-out bag and an everyday carry bag.  Make sure that when disaster does strike, you are minimally prepared and equipped with the right tools to get you through.  You can argue about the clouds on the horizon or grab your bag and climb into your ark.  The choice is yours, but you must now choose what you will do later to be prepared.
    We can’t hide our heads in the sand anymore.  As preppers, we strive to ensure that we are prepared for the most likely scenarios we will face that will challenge and alter our futures.  This is one of them.  Watch more videos on this channel or consider the Prepper’s Roadmap or another plan to ensure that you’re ready for what is shaping up to be a future we can’t accurately forecast from our current vantage point.   As always, stay safe out there.
  • DIY Solar Setup: A Simple DIY Beginner’s Guide

    DIY Solar Setup: A Simple DIY Beginner’s Guide

    In this blog, we’ll do an introduction guide to building your own DIY Solar Setup.  If you’re trying to understand and learn this for the first time, this blogis for you.  We will not overburden you with technical terms but rather provide a high-level overview while still showing the step-by-step process of assembling everything that we believe anyone can perform.  The advantage of learning how to build one of these is that you easily customize your setup, modify it in the future as your needs change, and, most importantly, develop an important skill set.   So let us  start off by giving you a quick overview to explain how this system works.  There are four primary components.  Solar panels collect energy from the sun and then pass the energy via cables to what’s called a charge controller.  A charge controller regulates the energy from the solar panels that it then passes to the batteries where the energy is stored.  In order to get the energy out of the battery, we need to convert it to useable electricity through a device called an inverter.  This is the device we plug in the items we want to power, such as our phones, laptops, or refrigerator.  As far as connecting all of these components, there are three primary sets of cables that you can purchase that already have the proper connectors on the ends and are set up to be used in this system.
    • Cables to connect the charge controller to the battery
    • Cables to connect the battery to the inverter
    • Cables to connect the solar panel to the charge controller
    We will cover a few other miscellaneous items throughout the video, but at the core, that’s it.  As far as tools go, here’s what you’ll need:
    • Phillips screwdriver (large and small)
    • Crescent wrench or socket wrenches
    • Needle pliers will also come in handy

    Step 1: Connecting the charge controller to the battery

    Connecting Branch To The BatteryLet’s grab our battery, charge controller, cables to connect our battery, and our small Phillip’s screwdriver.  Please do this step before connecting the solar panels to the charge controller as it will damage the charge controller without first connecting to the battery. If you look at this charge controller, and this is common amongst most of these devices, you have six places to plug in cables.  On this one, you’ll see:  
    • Two holes with PV+ and PV- … PV simply means photovoltaic.  This is where we’ll connect solar later.
    • The next two holes are what we’re interested in at this step: BAT+ and BAT- … this is where we’ll connect the cables from the charge controller to the battery.
    • The last two holes are LOAD which we won’t cover in this blog.
    Let’s grab our cables to connect the charge controller to the battery.  These particular cables have lugs on one end that we’ll connect to the battery, and the other ends are stripped, which we’ll connect to the charge controller.  You will notice that these cables are both black, so we’ll need to pay special attention to these when connecting them to the battery in order to keep the positive and negative connections correct.   OK, let’s connect our two cables to the charge controller by inserting the stripped ends of the cables into the charge controller.  Use your Phillips screwdriver and turn counterclockwise on both the BAT+ and BAT- terminals which opens a connector.  Then we’ll take our two cable ends which are stripped, and slide them in one at a time to the terminal.  As we slide each in, we’ll tighten the screw down, turning clockwise.  You want to tighten these firmly to avoid the cables coming out.  Be sure to test by giving a light pull on the cables to ensure they don’t slip out. Next, we’ll connect the cables to the battery.  To do this, first, we’ll unscrew the bolts in our batteries.  Next, we’ll take the negative cable and connect it first to the battery.  Before you do this, double and triple-check that your negative cable is connected to the BAT- connector on your charger controller.  We then place the negative cable lug to the negative battery post and insert the bolt tightening it down.  I won’t tighten it overly tight at this point as we’re going to add the inverter cable later.  Finger tight at this point is fine.  Now we’ll connect the positive cable to the battery using the same approach as with the negative cable.  Again, let’s finger tighten down the nut. Now that we have the charge controller connected, you’ll notice the charge controller screen is turned on.  You can go through it at this time and configure settings based on your model.  We found this particular model is easier to configure with their app than using the interface options on the charge controller itself, but do whichever is easier for you.  There are two primary settings you’ll want to configure.  You’ll want to define the battery type you’re connected to.  In this case, we’re connected to a Lithium battery.  Next, we want to define whether we’re connected to a 12 or 24V battery.  In this case, we’re connecting to a 12V battery.  This charge controller comes with a temperature sensor which can easily be plugged in.  If you buy a charge controller without one, it is highly recommended you purchase this to monitor the temperature of where you store your batteries.  Additionally, this charge controller has an optional Bluetooth module that you can connect that allows you to observe the information for the charge controller through your app. This completes step one. 

    Step 2: Connecting the charge controller to a solar panel

    Connecting To The Solar PanelFor this step, we’ll grab our 100-watt solar panel (you can add more panels, but for simplicity’s sake, we’ll stick with one panel in this blog) and extension cables with MC4 connectors on one end and are stripped on the other end.  For this step, you’ll need just the small Phillip’s screwdriver. During this process of connecting the cables, it’s important to observe the plus and minus signs on these cables that come off the solar panels when connecting to the charge controller.  In order to go from the cables on the solar panels to your charge controller, you’ll need the extension cables with MC4 connectors on one end and are stripped on the other end.   OK, we’ll keep the solar panel out of the sun, connect our extension cables to the cables coming off the solar panels that we’ll run to the charge controller.  We have two black cables, that’s fine, just be careful to keep track of which is positive and negative.  Even adding a small piece of tape on the end and writing a plus or minus might help a bit to keep things straight.  Now, with the stripped end of the cables, We’ll start with the negative end and insert it into my charge controller.  Give it a slight tug to ensure it doesn’t come out.  Next, insert the positive cable into the PV+ connection and tighten it down.  Remember, we have two holes on our charge controller marked PV- and PV+.  Again, PV is short for photovoltaic power, which is the power coming from our solar panel.  Now, let’s put our solar panel into the sun and see what happens.  So now our solar panel is in the sun, and we’re now connected.  As you can see on the front of the charge controller, we’re showing a charge coming in, and we’re now officially charging our battery.  With this setup, I can view this information on my app as well, along with information on how charged the battery is.  So we’re now harvesting power from the sun and storing it in the battery to be used later to power appliances and devices.  Pretty cool, right?   So up to this point in the video, we have now confirmed our solar panel, charge controller, and battery setup work.  Now we’ll move forward to our final step of pulling power from the battery. This completes step two.

    Step 3: Connecting the battery to an inverter

    Connecting To InverterBefore we proceed to this next step, we need bring in the solar panel and disconnect it.  When working with this system, we don’t want to interact with our setup when actively pulling power from the solar panels.  To do this, we’ll simply disconnect the cables from the solar panels connected to the PV+ and PV- connections on the charge controller.  We’ll also want to disconnect our charge controller from the battery.  To do this, unscrew the positive bolt first on the battery and remove the positive charge controller cable.  Next, unscrew the negative bolt on the battery and also remove the negative charge controller cable.  Now that we’ve disconnected our solar panel and charge controller from the battery let’s connect our inverter to the battery.  To do this, let’s first connect our cable to the inverter first, not the battery first.  Connect the positive inverter cable to the positive inverter post and then connect the negative inverter cable to the negative post on the inverter.  Now we’re ready to connect the inverter to the battery, but before we do this, it is recommended that we put a fuse on our positive inverter cable to protect the inverter.  We have a 2000-watt inverter, so a 175 to 200 amp fuse works fine.  We’ll post a link below to where we purchased mine.  When connecting the fuse to the positive inverter cable, be sure that the fuse is flush with the lug.  Make sure there’s no washer in between the inverter cable lug and the fuse. Now, bring the negative cable from the inverter and connect it to the battery.  Then, using the bolt on the cable that connects the fuse to the cable, place it on the positive battery terminal.  It will spark, but this is to be expected.  Finger tighten these bolts down to allow us to test this out.  We’ll tighten it much tighter momentarily when add the charge controller back on. We have completed the connection of the inverter to the battery.  We can plugin devices and appliances and power them as shown here. Earlier, we disconnected the charge controller, but we’ll add it back now.  We’re basically just repeating step 1 at this point.  We’ll begin by removing the inverter from the positive terminal and negative terminal of the battery.  Bring the negative cable from the charge controller and connect it to the negative post on the battery along with the lug connecting the negative cable to the inverter and tighten down the bolt with a wrench.  Next, we’ll bring the positive cable from the charge controller and add it to the positive post on the battery along with the lug from the cable connecting to the inverter.  Again, we’ll tigthen this down with a wrench.  It’s important to note that when tightening the lugs on the cables to the batteries that there’s no washer in between the battery post and the lugs on the end of the cables.  You want these lugs flush on the battery post.  We do want the washers on top of the lugs, pushing them down to the battery post, though. Finally, we’ll connect the solar panel back to the charge controller.  Connect the negative cable first, then the positive cable.

    Step 4: Testing our setup

    Testing Our SetupAlright, it’s the moment of truth.  We’ve got solar charging the battery, so let’s turn on the inverter and power some devices.  Excellent, everything is operating as expected.  We’ve got a pure sine wave coming off the inverter which means we can safely power our electronics and appliances.  You can power most devices that you could normally power through a typical wall socket in your home, such as a T.V. or refrigerator. One important detail about discharging this battery.  There’s a level of charge you don’t want to exceed when drawing power with the inverter.  You can safely discharge down to 20% of the battery’s capacity under load with the inverter powering devices.  If you go under 20% while you have a load on it, it can damage the battery.  You can buy a battery monitor to add to the battery to keep track of that.  For this battery, it does come with Bluetooth, and we can monitor that information in the app.

    Conclusion

    Hopefully, this blog shows just how easy it is to build out a system like this.  By building a DIY setup, you have options, and can modifications as you need them.  If you have any questions, please post those below.  Again, we’ll post links to all the items we covered in this blog.   As always, stay safe out there!
  • US Banking System Collapsing: What To Expect

    US Banking System Collapsing: What To Expect

    It’s very important that inflation is brought into check by poor people losing their jobs. Not rich people losing their deposits. – Any_Perspective_577 

    Silvergate Capital announced that it would wind down operations and liquidate its bank.  Signature and Silicon Valley Bank were seized by Federal Regulators, marking the second-largest bank failure since the Great Recession.  The credit rating firm Moody’s Investor Services downgraded the entire U.S. banking sector and warned about the future need to downgrade six more American banks.  Credit Suisse, the Swiss banking giant, acknowledges it has found “material weaknesses” in its financial reporting. Its largest investor has signaled it would not be rushing forward with an infusion of cash to support the banking giant.  It’s time we faced the possibility that the banking system could completely collapse globally because these are not isolated failings.  Banks are intrinsically tied to one another.  They buy each other’s loans, invest in each other, hold accounts with each other, and partner in all aspects of our financial system, often co-holding loans for businesses and property worldwide.  So, what would it look like if the banking system collapses?  This is what you need to know now…

    CAN IT BE CONTAINED?

    The first effort by investors, bankers, financial institutions, federal reserves, and governments worldwide aims to contain the spread and calm the people.  If people panic and start withdrawing their money to safely store it under their mattresses, that paper currency doesn’t exist.  The dollar you might have deposited in one bank is leveraged or loaned to another, which then lent it to yet another, which then used it as collateral for more than one loan.  It’s spread all over the place and takes on many forms far greater than the sum total of its value.

    In the case of Silicon Valley Bank, the Fed rushed in to assure that all depositors would be “made whole”- a term to mean that depositors would receive all of their deposited money back.  Investors in the bank’s stock were wiped out, as they took a knowing risk by buying the stock.  Some of those investors are not just individuals.  They are financial institutions that hold and manage portfolios of pension plans, 401ks, IRAs, mutual funds, and other retirement accounts. Anyone invested in an index fund may hold Silicon Valley Bank to a small degree.  Top shareholders in Silicon Valley Bank include Vanguard (11%) and BlackRock (8%) in their various index funds and ETFs.  Other money managers and pension funds with exposure include State Street Global Advisors, J.P. Morgan, and Invesco. Swedish pension fund Alecta held 4.45% of total outstanding shares or about $600 million at year-end.  Many will check their balances in their retirement accounts in the coming weeks only to find out that their balances have considerably dropped.

    Other banks and investment firms will fail, so can it be contained?  At least some banks will profit to the tune of a $100 million or more, having banked on Silicon Valley Banks’ demise, but let’s assume for a moment that the spread of failures cannot be contained.  What’s next?

    HOW IT ALL FAILS

    FailingFirst, as we mentioned, people’s retirement accounts take a significant hit.  The average 401(k) balance was $141,542 in 2021, up 10% from 2020.  That’s not much to retire on, to begin with, and it’s even less when you factor in inflation and the rest of a person’s “golden years.”  If a person just lives ten years beyond their retirement age of 65, they only have a little less than $1,200 a month to make ends meet.  With a significant drop in their retirement portfolio, dreams of golden years and not commuting and grinding out work daily are put on hold.  People have to work longer and hope economic conditions improve.

    Unfortunately, bank failings of this level cause some companies to be unable to make payroll, invest in new projects to maintain growth acceleration, or force companies to abandon projects they have been working on to sustain growth and revenue. That means they often seek to downsize their labor force.  Older workers are often the first to be let go because younger workers can be forced to work harder for less pay.  However, younger workers are reluctant to enter a workforce where they know they will struggle even to keep their heads above water.

    Any failing pension plans get transferred to The Pension Benefit Guaranty Corporation (PBGC), a United States federally chartered corporation created by the Employee Retirement Income Security Act of 1974. Those downsized workers enter unemployment status and collect unemployment insurance.  Those holders of failed equities write off their losses on their corporate and individual taxes to offset their gains.  All of it gets transferred to the balance sheets of the government, and still, not one profit-seeking, risk-taking banker ever spends a day in court or jail.  All of these result in massive pressures on the government, which is actively involved in trying to contain inflation, spending to encourage economic growth, and loaning money to banks to promote their growth.  

    The pressure is enough to erode global confidence in the almighty dollar.  Countries begin to seek transactions in other currencies or securities even as they struggle to limit their exposure to failing banks.  After all, these bank failings are not a uniquely American problem, they have branches and roots in financial institutions worldwide, and several other countries are already reeling from these implosions.  Value everywhere is evaporating.  Before everything is said and done, several more banks will fail or shed significant chunks of their value.  Some countries may suffer a recession or depression.  Even if it doesn’t get that extreme, one thing is for sure; the global economy freezes up as people assess their losses and hold on to whatever resources they have left.

    WHAT COULD BE NEXT?

    ResourcesWith financial strains on countries so great, either the war in Ukraine loses support, because why would countries send money and resources there that are needed at home, or it escalates.  A significant escalation puts countries in a wartime posture, and there is lots of money to be made and jobs to be had in the defense industry.  Any cursory history study will reveal how previous World Wars spurned economic growth, innovation, and a post-war explosion of growth.  In some ways, wars are a great big reset and reboot button for the victorious countries.

    Most manufacturing, however, will likely slow to a crawl.  With the dollar buying less, companies produce less.  Even farmers are reluctant to gamble on the high price of seed or feed that they cannot cultivate into a profit later.  They, too, will seek subsidies and assistance from the government even as they produce less food.

    At home, even if you managed not to be a part of the ranks of the unemployed and you managed to not lose your shirt in your retirement portfolio or your bank didn’t fail and lock up or lose your life savings, you will still suffer the consequence.  Your dollar will be worth less or worthless.  Banks and financial institutions will pass on their losses to you through higher fees and tighter credit requirements.  If you have any form of variable rate loan, that is a loan with a floating interest rate, expect that interest rate to go up.  Even if you don’t have any personal exposure, the company or business you work for might.  Their ability to transact or secure the resources and revenue they need to operate can cease to exist.  That could force you out of a job.

    In this climate of decline, you can expect inflation to soar to all-new heights.  Your dollar buys less, and the cost of everything skyrockets.  Suddenly, you can’t get the same amount of food at the grocery store, can’t afford the gas you need to commute, or the luxury expense of childcare while you work. You won’t be able to put those things on credit and hope for a better day, either, because banks will be tightening credit limits and raising the annual percentage rates in the hope of maintaining operations. You or your neighbor is left unable to afford basic necessities, pay rent or a mortgage, or sell assets because who is buying in this climate?  The wave of repossessions and foreclosures follows.

    The whole world transacts in the US dollar.  When it fails, it is catastrophic for the world.  Some governments will fail as citizens press their government for solutions or help.  Some will restructure away from capitalist ideas.  Everywhere, and all at once, production seizes up, and trade routes slow or stop.  If your municipality depended upon parts like wires, transformers, pumps, and more from China to keep its water or power plants operational, those parts are no longer available.  Failure to maintain these systems can result in them failing from lack of maintenance or pushed into failure from natural disasters or strain.

    WHAT CAN YOU DO?

    What Can You Do 2We know that this isn’t a pretty picture we paint here.  We are trying to show you how bad this can get if it isn’t contained, and as bad as this all is, we still haven’t scratched the surface.  The Great Depression, after all, had some pretty fundamental causes behind it, and that was at a time when global economies and banking systems weren’t nearly as intricately webbed together as they are now.  That was at a time when people locally sourced their resources because these massive supply lines that bring you asparagus from Chile and aluminum from China didn’t exist.

    First, you must accept that you won’t be able to buy your way out of this crisis, regardless of what you have saved or set aside.  Liquidating your 401k to live off it for as long as possible will not work.  You have to turn to locally sourcing what you need to survive.  You need to learn to live on less with forced frugality. At some point, you may be responsible for your own food, water, and whatever energy you need.  You may need to postpone treatment for any medical conditions that arise.  You will need to become as independent and self-sufficient as possible.

    For years people assumed that they would just transact in gold, silver, or platinum if the dollar ever failed, and for years we have been telling people how wrong that thinking really is.  It assumes that other economies won’t be affected.  It assumes you can somehow trade an ounce of metal for a loaf of bread.  Both the dollar and precious metals only have perceived value.  You won’t be able to live off either of them in a more significant collapse.  What will be of real value are your skills, resources, knowledge, and self-sufficiency.  You might be able to trade that one silver Morgan Dollar you have saved all this time for a basket of apples.  In today’s money, you just traded about $100 for a basket of apples.  You would have been far better off having planted an apple tree that would have provided you with multiple baskets of apples now.

    To be clear, we are not going on record predicting a global collapse and the death of the US Dollar, but we are also not ruling out some challenging times ahead of us.  Either governments and financial institutions will be able to contain these losses, or they won’t.  When facing that reality, you can either sit on the sidelines with a wait-and-see mentality and be a victim of whatever fate befalls you, or you can begin to proactively take control of your life through prepping.  You will be better positioned to survive the fallout if they don’t contain it.  If they contain it, you will be more solid and better positioned because of your prepping activities.

    We are not financial experts and don’t give financial advice, but we don’t have to be to see how badly this could swiftly turn.  One of the ways you can insulate yourself is by educating yourself on this channel.  The free Recession-Proof Guide you can download, and we’ll put a link to it below, can set you on a path to reduce expenses, become more frugal, and understand what you really need to survive.  The free blogs on this site can also equip you with what you need to know to survive a catastrophic economic decline. The Great Depression playlist, for instance, has a dozen videos on everything from what you’ll need to books you should have to how to barter after the economy collapses. Please check out the playlist linked below. 

    Let’s hope for the best but prepare for the worst.  Don’t assume it’s gone for good if this crisis is contained and averted.  We have seen these types of situations occur again and again.  They come back every few years or decades, and each new occurrence is worse than the one before.  It’s not a matter of if it will occur. It is a matter of when.  So, please take my advice and commit to your current efforts to prep or begin prepping now while there still is time.

    As always, stay safe out there.

    LINK

    Surviving a Depression Playlist: https://www.youtube.com/playlist?list=PL5TAN1zJMd0fISN5QZ3azITREGcnYwsph 

    Download the Recession Proof Guide: https://cityprepping.tv/3PJwGM0 – start your preparedness journey: https://cityprepping.tv/3lbc0P9

  • Let’s Stop Pretending: Things Will NOT Return to Normal

    Let’s Stop Pretending: Things Will NOT Return to Normal

    The Brutal Reality

    “Too many people want certainty amid the chaos of this world. But certainty is the fool’s dream and, thus, the charlatan’s selling point”– Brendon Burchard.

    Better TimesWe are living through a time that undoubtedly historians will point to as a pivotal moment.  These changes that are happening around us at this very moment will define our collective future.  It’s easy to look at the chaos and upheaval of the last few years and simply mark it off as an anomaly, a blip on the radar, if you will.  Surely things will improve, life will return to normal, and the worst is behind us, right?  It’s easy to tell ourselves these things as we’ve lived in a generation where we’ve overcome obstacles to accomplish the seemingly impossible, and somehow, despite the challenges, we’ve always moved forward into better times.  Upward growth and expansion have been the norm in our lifetimes.  But the horizon appears much darker.  We are now seeing rapid changes on a global level that are happening in real-time, before our very eyes, that will alter our collective fates.  We are now living in an age of permanent crisis and the early stages of a collapse.  What we’ll cover in this blog isn’t in some Mad Max future dystopian world; these issues are things that are happening right now.  As someone that focuses his attention on this subject matter of preparedness, aka prepping, we realize this is only the beginning and that the world we knew before … is gone.  

    Download the Start Preparing Survival Guide To Help You Prepare For Any Disaster.  We’ll post a link below or visit cityprepping.com/getstarted for a free guide to help you get started on your preparedness journey. 

    THE CANARY IN THE COAL MINE

    Brutal ProblemThis phrase refers to miners that would bring canaries into coal mines with them.  If that canary died or passed out, they knew they were in a dead zone devoid of oxygen.  When that canary died, they knew to turn tail and get to the surface.  Hence the term ‘canary in a coal mine’ came to mean the warning sign of a greater problem.  We are seeing warning signs nearly everywhere we look that will radically impact our lives not only now but even more so in the coming years.

    China struggles with a COVID surge and scorching temperatures enveloping their entire nation.  Fire season has only just begun in the northern hemisphere, and an area the size of Connecticut has already burned in Alaska.  The Oak Fire in Yosemite is one of the first significant fires of an early fire season, and it already covers an area of 27 square miles.  In France, more than 37,000 people were evacuated as fires ravaged the Gironde region.  From Athens to Salamanca to Siberia to Tuscany, wildfires are raging and forcing many to evacuate their homes.  July brought 40-year high temperatures to Stockholm, London, Dublin, Berlin, and Rome.  In the U.S., 92 all-time record high temperatures were set in July.  Extreme heat is here and increasing in frequency and duration over recent years.  Drier than average temperatures for a longer than average period are drying out countries and sparking ever more extensive and more intense wildfires.  A multi-decade megadrought grips the western United States, threatening to stall agriculture and forcing hydroelectric dams to reduce output and possibly even go offline until water levels increase again.  These low water levels, the multi-decade drought, and the high heat occurring with greater frequency and duration should serve as warning signs.  They should signal to us like the canary in a coal mine that things are bad and likely to get worse.  

    AND THE BAND PLAYED ON

    Slowly Going Back To NormalWe can all argue and debate the causes or the remedies, but we are swiftly reaching the point where a return to “normal” is no longer possible.  We should recognize that the canary has died at this point, and we are heading into a new reality that humans have never seen before.  The period of stability with goldilocks temperatures and the human capability of simply damming or diverting a river to feed populations and farmland are a thing of the past.  As humans, we function, forecast models, and plan assuming that things will remain stable over time.  This assumption of stability is seen in our construction designs.  Banks are issuing loans to properties that are projected to soon be in flood zones along coastal properties.  Why?  We think you already know the answer: money.  Deviations from stability are perceived as temporary occurrences, so the band plays on as if nothing is happening.  This thinking is baked into our economic models.

    At some point, though, after decades of a drought, when the river and aquifer levels drop lower than they have been in thousands of years when enough records are broken, we have to contemplate the genuine possibility that things will never return to anything like “normal.”  After all, normal is simply the stable luxury we enjoyed from a climate that didn’t tilt too far in any one direction for too long.  When it was normal, we experienced a population boom and expansion into previously uninhabitable areas because we could gently mold the edges of our environment.  We experienced a green agricultural revolution where we could produce harvests larger than anything in the history of human agrarian culture.  We were collectively able to make more food than we could even consume through fertilization and modern farming practices.  

    It’s safe to assume that the canary has died at this point.  Let’s recognize that the models and designs that were intended for a stable normal world can no longer hold true for our future.  Let’s accept that our delicate balance has just tipped passed its tipping point.  What now?  What does the future hold for us?  How will this change the way we are living right now?  Let’s stop arguing about the causes or the half-measures that can only soften the inevitable blow because this new reality of change has arrived.  Here’s the true impact this singular event will have on our world.

    BRACE FOR IMPACT

    RiverThe area served by the Colorado River Basin provides 2/3rds of the country’s fruits and nuts.  This area produces 1/3 of all the vegetables in the country.  It’s home to 40 million people in 7 different states who rely upon the Colorado River Basin for water and power.  It accounts for $1.4 trillion in our nation’s economy.  The Hoover Dam, at peak performance, provides 1.3 million households of energy per year.  Of the electricity generated there, 50% goes to California, 22% to Nevada, and 20% to Arizona.  So let’s assume that things continue along their current trajectory.  Let’s take all that off the table and see what’s left.

    FOOD

    FoodImmediately, there will be a decrease in agricultural production.  This translates into higher prices for all.  Combined with decreased agricultural output across the country due to extreme weather, a food shortage is on the horizon.  We will be forced to change what we can eat.  Some foods will no longer be easily accessible with a quick trip to the grocery store.  The Federal Bureau of Reclamation controls how much water goes to each state and has given the states that use the water 60 days to devise a plan to cut usage, or they will step in and delegate the cuts.  The cuts and reductions that do come will initially favor the population over agriculture.  This will permanently drop agricultural output, but this is based upon a model that assumes a return to normal.  In reality, these cuts won’t be enough in the hot and dry region to keep agricultural production or cities hydrated.

    ENERGY

    EnergyThe decrease in hydroelectric output is already being absorbed into the system, but it can’t continue like that forever.  When we take hydroelectric production off the table in the southwest region, it can be absorbed initially by other forms of energy production and higher prices.  But less surface water also means power plants that rely upon this surface water for cooling; even oil producers also run at diminished capacity.  Energy production in all sectors suffers.  Even natural gas, already up in price by 200%, relies upon hydraulic fracturing to extract the natural gas in quantities sufficient to meet minimal demand.

    ECONOMIC IMPACT

    Economy ImpactThe region directly drying up in the Southwest accounts for $1.4 trillion in our economy.  For that to be even partly taken out of the country’s GDP would mean that an economy freefalling into a recession right now could get substantially worse still.  Again, this isn’t a distant future scenario.  The Federal Bureau of Reclamation will eventually implement draconian conservation measures that favor the economic and agricultural engines, though initially, those policies will favor the cities. Still, that won’t alter the winter snowfall for the snowmelt-dependent Colorado River.  Expect the economic impact to be equivalent to or worse than the impact of the Dust Bowl, but this time the manufacturing will be hit much harder along with the agricultural sector.

    ENVIRONMENTAL MIGRATION

    Environmental MigrationIf an environmental migration seems too outlandish and implausible, understand that it has happened within the last 100 years.  Just read Steinbeck’s Grapes of Wrath.

    The immediate impact right now is already being felt by the people in the region and the surrounding region in the form of higher electricity and water bills.  This will continue to get worse.  Eventually, this crisis will not only express itself in the form of higher prices but also result in power outages and water rationing.  Extrapolated out even further along the current trajectory and once thriving communities will become dead zones.  Millions of people will be forced to migrate from these areas chasing jobs and affordable living.  These environmental migrants will find it challenging to make a new home in some areas of the United States.  Even as some areas dry out, others are flooding.  

    We know that rainstorms are getting more intense. Flash, surge, and storm flooding are becoming more severe, intense, and damaging. For the eastern United States, that has resulted in up to 70% more heavy downpours each year.  From St. Louis to Santa Fe to Houston to St Petersburg to New York City, some areas are getting inundated with historic rainfall even as the southwestern part of the country dries and prays for rain.  The problems of the drought in half of the country are easily exacerbated by the deluge in other parts of the country.  Displaced people will have difficulty finding habitable regions to call home.

    WHAT CAN BE DONE?

    What Can Be DoneHumanity is about to face a very difficult reality.  Fewer resources in the coming years will force many to make difficult decisions.  While we’re experiencing rapid inflation, which is hammering the everyday consumer, we are very likely to see a continued trajectory as resources we all rely upon become more scarce and difficult to produce.  We’re already seeing a fight over fuel and other vital resources around the world.  As a result, Europe will face a very cruel winter along with developing nations that rely upon crops from Ukraine and fuel from Russia.  Some would call what we’re experiencing the early stages of collapse.

    We have no choice but to ride this out.  It’s here, it’s happening, and things will not return to what it was before.  This is the new normal.  No matter where you are geographically in relation to the southwest United States, you should see these issues are the canary in the coal mine.

    Accept that water rationing and power outages will become the new normal, and get your water and energy preps in order.  Understand that forced environmental migration will become a reality for millions and will impact millions more before this crisis passes if it ever does.  Specifically, you should be watching for the current levels of Lake Mead to get anywhere near the 950-foot mark.  That’s just 90 feet more from where it is right now, and the lake is forecasted to lose 26 more feet in the next year.  It could reach that dangerously low level as early as January of 2024 by current projections.  

    When it does, it will be a dead pool, and we are in irreversible trouble that only a decade or longer of a consistent massive snowpack and rainfall will resolve.  Much of our collective future will be determined by whether it rains and snows in record-breaking amounts in the southwest region.  That could signal a return to what we have known for years as a more normal weather pattern.  Every indicator now points to snow or rain being only an unfulfilled prayer, so I would encourage you to prep like this situation will get far worse before it gets even slightly better.  What’s that old saying, “Praise God, but pass the ammunition.”  Continue to pray for rain, but prep your piece of the world like it won’t come.

    Let’s stop pretending we will return to anything close to normal.  Instead of blaming anyone or anything else, look to what you can do today with your preps to increase your odds of survival.  Accept that there’s a hole in the boat, and while others argue about the hole, find your lifevest. 

    As always, stay safe out there.

  • 5 Things That Happen When an Economy Collapses

    5 Things That Happen When an Economy Collapses

    What Will Happen

    “A strategy is necessary because the future is unpredictable” – Robert Waterman.

    We are in a global recession. There’s no denying it at this point.  Some countries will recover.  Before this is over, though, some countries will probably fail and not make it through.  Decades of fine-tuning and throwing all our eggs in the basket of a global supply chain and modern conveniences favored over know-how and skills have weakened us and made us more vulnerable to collapse than previous generations.  We are less self-suffiicent and more dependent upon grids and supply chains that are failing dramatically.  Compound this with lax banking regulations, decades of loose monetary policies, extreme weather cycles and events, and unprecedented population and housing growth. It is easy to see that this global recession may be the worst and longest-lasting we have ever known.

    So when will it end?  Will it end or get much worse?  In this blog, we will explain how long this is likely to last, the signs to watch for that it’s getting better or worse, and what you should be doing now to survive whatever fate comes your way.  Let’s unpack this global recession…

    Download the Prepper’s Recession Proof Economic Collapse Guide today.  We’ll post a link below or visit cityprepping.com/moneyprep for a free guide to help you start recession-proofing your life and emerging even stronger when the economy recovers.

    GLOBAL DISCONNECTION

    Global DisconnectionWhat is unique about this particular recession is its global nature introducing more unknowns.  In years past, national economies functioned as somewhat isolated islands amongst the more enormous international sea.  If one country’s economy faltered, it had little overall impact on another nation’s economy.  Sure, there were trade agreements, trade wars, conflicts here and there, and federal banks that tried to control it all for their respective populations.  There was also year after year of fine-tuning a global supply chain that brought a consumer’s every desire across the world and to their doorstep in a matter of days versus weeks or months.  More and more of our local resources were brought in and shipped to us from further and further away.  For instance, our beef production went from meat produced within our region or state to cattle raised in one region, slaughtered in another, frozen and shipped to an entirely different country over 6,000 miles away, processed further, refrozen, then shipped 6,000 or more miles back to us in neat plastic and styrofoam packaging.

    Another example of unsustainable resource shifts can be seen in America’s #1 imported bottled water– Fiji water.  This artesian water is bottled at the source in those iconic square plastic bottles over 5,000 miles away.  It is then shipped on diesel-burning cargo ships and via diesel trucks to consumers across the country.  Understandably, such a system for beef, electronics, artesian water, liquified natural gas, tomatoes, cars, avocados, refrigerators, palm oil, cell phones, coffee, microchips, bananas, drywall, oranges, and other products and foods is fragile and susceptible to collapse.  It is far from the shorter trip of the past where the local farm or garden was your resource.

    So, when we ask ourselves how long this downward economic cycle will last compared to similar events in the past, we have first to understand how we are in uncharted territory.  Every day for the last several decades, we have become increasingly more dependent upon resources further and further away from us.  When these systems collapse, as we saw with the container ship getting stuck in the Suez, the pandemic shutdowns, the invasion of Ukraine, droughts in some places and floods in others, inflation and product scarcity, we are propelled further into uncertainty.  Every year that has gone by, governments have failed to reign in financial systems that repeatedly fail.  Now, the China Evergrande Groups default has global implications that make the Greek government’s debt crisis of 2009 seem like merely a bump in the road.  Any downward economic cycle, especially a global one, will have deeper troughs than any that have occurred before.

    HOW LONG CAN THIS GO ON?

    How Long Can This Go OnThat said, let’s ask the question, “How long can this go on?”  You will have to be pretty removed from it all if you haven’t felt the inflation or scarcity of products.  You will have to be pretty self-sufficient if you haven’t felt the pinch at the pumps, the increase in your utility bills this summer, or more of your earned money going out and fewer resources coming into your home.  There are only two possible outcomes of any recession or economic depression.  Either there is a recovery or the government and currency collapse, in which case it is often replaced with a new regime and new currency.  Prepping can ease your path through either of those instances.  Most recessions or economic depressions result in a recovery.  The average length of recessions going all the way back to 1857 is less than 17.5 months.  With that average, our current recovery won’t come at even the best pace before January of 2024.  The most prolonged recession in US history was 65 months beginning in 1873.  The Great Depression lasted 43 months– just shy of four years.  The US, as a country and an economy, still exists despite these two events.  That isn’t to say that it always will.

    Populations, economies, and nation-states increase and decline.  Every culture at the apex of its development thought it was superior to every culture that collapsed before.  It believed it could grow and expand forever and outlast the countless empires that proceeded it.  Yet, history tells a different tale.  There are specific signs to watch to help you determine if you are on the road to recovery or racing down a road towards a larger civilization or societal collapse.  The fall of complex society resulting in the loss of cultural identity, socioeconomic complexity, the downfall of all sanctioned government structures, and a significant rise in lawlessness and violence are all the worst possible outcomes.  

    So, while there will be a recovery phase at some point, it may not be as wonderful as you hope it to be.  Here are a few signs to watch that will help you determine which road you are on.

    UTILITY FAILURES

    Utility FailuresOne of the first things to go when heading toward a more significant societal collapse is the reliable services we have come to depend upon.  We only really contemplate how dependent we are upon gas, water, electricity, sewer, trash, and even internet providers when the ever-increasing bill arrives.  The bill is actually one of the first warning signs that greater failures may be on the horizon.  Mismanagement of the grid by commercial, for-profit providers often pushes needed repairs and maintenance to the side.  Sometimes, as with the California wildfires, the utility company’s failures to protect lines from high winds get passed along to the consumer as an added expense.  Even without such a blatant cost transfer to consumers, the inclination to keep profits up often comes at the expense of expenditures on maintenance and new services.  The Texas winter power failure of 2021 resulted from failing to insulate equipment determined to be at risk when winter rolling blackouts had occurred in 2011– a decade before.

    However, these minor failings are amplified in the throes of an economic collapse.  Maintenance and repair fall to the wayside simultaneously as pirating of utilities, and usage-induced breaks occur.  A simple pipeline burst may stop the delivery of municipal water to millions.  It might also not get repaired for days, weeks, months, or ever again.  A downed powerline during an economic collapse could plunge millions into darkness and leave them without the ability to regulate their environment.  It also might go unrepaired for days, weeks, months, or ever again.  An alternative power supply, methods of disposing of human waste and trash, non-perishable shelf-stable foods, and even water will help insulate you from some utility failings.

    Watch your utilities as an indicator of whether things are getting better or about to get worse.  The more stories you see about these essential services failing, the more likely you are on the road to even worse times.

    CRIME & CIVIL UNREST

    Crime and Civil UnrestWhen the power goes out, many will see this as an opportunity, and looting, robbery, civil unrest, and vigilantism will occur.  Crime increases as people become more desperate.  Add to this the profound political divisions, the easy spread of misinformation by algorithms on the internet, hyper-partisan rhetoric, and the foundational principles of governance are in jeopardy.  There’s a very fine line between a protest and a riot.  There’s a fine line between vigilante justice and a violation of rights.  If you see these lines getting blurred, divisions intensifying, spikes in the crime rate, and civil conflicts while you are in a seemingly endless recession, your country is likely heading into a far more profound financial and cultural crisis.  At best, that will mean an economic depression.  At worst, it could mean your government and country as you have known it is on the cusp of a significant change.

    CAPITAL RESTRICTIONS

    Capital RestrictionThe first thing governments and central banks attempt to do when their respective economies are in freefall are to tighten the restrictions and slow the flow of money and transactions.  Before a total currency collapse, regime change, and recession phase, capital controls are often imposed to restrict or prohibit transferring or personally taking money, securities, or other valuables out of a country. To end hyperinflation, a new currency is typically issued. The old currency is often not worth exchanging for new.  This is the far extreme like we historically have seen examples of in the Weimar Republic of Germany from 1919 to 1933.  Our world is different than that historic collapse of nearly a century ago.  Still, if you see interest rates continuing to rise, withdrawal restrictions, restrictions on cryptocurrencies and precious metals, an intentional effort to slow or stop the flow of foreign money, increasing taxes or tariffs, or other capital restrictions and controls, you are still deep in a recession. You could be heading toward an unrecoverable collapse if you see many of these capital restrictions and controls implemented but no fundamental changes in your economy.

    SUPPLY CHAIN FAILURES

    Supply Chain FailureWe spend a significant amount of time on this channel addressing the fragility of the supply chain. We discussed this earlier in this blog, so we will only say here that as food scarcity sets in and shelves become more barren, you are definitely heading down a darker road. You are not in a recovery phase.  Keep an eye on not only the price of things but decreases in variety and selection.  Pay particular attention to anything that retailers are first having a hard time keeping in supply and then just can’t get in stock at all.  If you see a few sparse things here and there, you are probably okay.  When businesses start closing their doors or adjusting their hours because of low inventories, you are likely in store for a darker fiscal future ahead.

    LARGE SCALE MIGRATIONS

    Large Scale MigrationsAny large-scale migrations are the absolute worst sign that your country’s recession is about to head towards a dark depression.  War and natural disasters are typical causes of large-scale migrations, and these can still occur to compound the problem.  As a recession deepens and depression or societal collapse looms on the horizon, migrations are to habitable zones where work can be had.  Right now, these migrations tend to be behind the scenes.  The pandemic resulted in many exploring alternate work systems like working from home or changing careers.  The Great Resignation, as it is being termed, is a migration away from typical work. At the same time, businesses are exploring new ways to keep profits up while they provide servicers amidst shortages of materials, shipments, and labor.  On a smaller scale, these migrations are happening.  An indicator that your country is on the road leading away from recovery will be when these smaller migrations take on a physical form.  As during the Great Depression, when thousands headed West in search of jobs and the Conservation Corps was established, similar population moves or government actions are a sign that it’s getting worse and not better.

    WHAT SHOULD YOU BE DOING NOW?

    What You Should DoWatch the signs of intensifying utility failures, increases in crime and civil unrest, capital restrictions, supply chain failures, and large-scale migrations, all while you get prepped.  Your preps now are the key to surviving regardless of your country’s path.  If your country moves to a recovery phase and events around the world stabilize somewhat, your preps will sustain you through the remainder of the downward cycle and aid you in recovery.  If your country sinks further into economic despair and succumbs to an onslaught of progressively worsening situations, your preps will sustain you through all the failures and help you to at least rebuild your own life.

    Fundamentally, you must first get your water and food supplies in order.  We constantly hear from subscribers who survived the sudden loss of a job and income because they were able to feed their families with their preps.  We also hear from people who survived floods, tornadoes, even the Texas winter power outage because they had taken steps to prepare for disasters.  It can be a big or personal disaster, and your preps will see you through.  It can be a minor recession or a total societal and monetary collapse, and your preps will determine how you make it through.  Chief among those preps is your food and water.  Fundamental to you is how independent you can be of utility failings and food supply chain failures.  If the grocery stores are empty or the water stops flowing to you, how long can you make it on your own?

    Once the two primary components of food and water are somewhat squared away, you should be critically examining your energy dependence, your personal fiscal dependence, your personal security and shelter security, and your own plans to bug in or bug out.  If you can examine all of these critical components and prep to strengthen them, a recession or economic collapse will less impact your survival.  Sure, it will drastically change the way you have to live, but when your preps are integrated into your current life and not just tucked away on a shelf somewhere in your garage, you’re going to be okay.

    It’s those who have no preps, no garden or grow nothing, no food set aside, no water, and so forth; those who are solely dependent on global systems functioning flawlessly who are really going to struggle and will eventually become desperate.

    Nobody can really tell with any certainty where we will be in a year from today.  With any economic downturn, there will be winners and losers after it is all over.  Even economists contradict each other, while federal banks move solidly to a defensive posture and GDPs worldwide plummet.  That will all happen regardless of what you do today, but what you do today to prep is truly what will determine where you are standing when the dust eventually does settle.  As we said, recessions have two outcomes– either your economy begins to recover in an average of 17.5 months from the start, or your economy starts accelerating downward towards a more profound and deeper collapse.  Prepping allows you to navigate better both possible outcomes.  

    We would invite you to look at some of our other blogs on prepping a year’s supply of food or water storage or energy solutions, and we will link to those from this blog.  We can say with absolute certainty that we are still in the early stages.  Yes, as bad as it may seem now and as high as prices are currently, I firmly believe that this is just the beginning of much worse to come.  Even economists are reluctant to predict a recovery date.  Prep now while you still have the time and resources and learn to incorporate that preparedness into your daily life.  You will be thankful you did.

    As always, stay safe out there.

  • Are We Less Than 30-Days Before China Implodes?

    Are We Less Than 30-Days Before China Implodes?

    Brace for a Global Economic Meltdown “China’s authorities have an unparalleled capacity to kick the can down the road. But with every kick, the can gets bigger and doesn’t go as far” – Dinny McMahon, China’s Great Wall of Debt. The largest economic bubble in modern history, by several orders of magnitude greater than the 2008 market meltdown, is playing out in China at the moment and it’s about to pop.  The facts are that this is a crisis, which we’ll detail in this blog, that is trillions and trillions of dollars deep, several orders of magnitude greater than the 2008 market crash referred to as the Great Recession.  There are decades of bad policy, imaginary money, and expansion at the cost of the very foundation that is all coming to a head in, possibly, in a very short time from now.  It’s not just China that is about to implode; its effects will be felt worldwide.  From Wall Street to main street, Australia to the United Kingdom, this will be far worse than the 2008 recession and several magnitudes greater than the pandemic lockdowns or the current supply-chain challenges.  This has been a problem brewing for years that China has been able to defer through creative financial measures, but it is swiftly running out of options to kick the can down the road further.  China has what is easily, the larget ponzi scheme in history that is about to implode on itself.  This blog will clearly detail why it is about to play out and how every aspect of our life will likely be impacted. THE BIGGEST BUBBLE EVER Real EstateHere it is as quickly and briefly as we can explain this problem.  Real estate makes up 29%, almost a third of China’s Gross Domestic Product.  An estimated 70% of Chinese household wealth is tied up in real estate.  Still, there are currently 65 million empty homes.  The Chinese people have invested their money into the most stable investments in their country, which isn’t the stock market or foreign investments; it is real estate.  China has long been a very isolated country, so foreign, non-government sanctioned investing isn’t really an option for its citizens.  The government controls and regulates everything. One of the reasons there are a staggering 65 million vacant homes in China is that real estate has been viewed as one of the only stable investments.  Banks are eager to make loans to contractors who will build housing.  Yet, these contractors have continued to develop and build, though many buildings remain completely vacant and many projects are many years from even breaking ground.  They use the money to construct one building to fund the construction of another.  This is sustainable only if the economy continues to grow.  When the pandemic shut down the Chinese economy and caused economies worldwide to stutter, suddenly, all that empty housing was just a huge liability that only holds theoretical value on paper.  In fact, COVID lockdowns resulted in many developers being unable to complete hundreds of massive apartment projects, and they have already defaulted on their loans. It’s not just vacant physical homes.  There has long been a pre-sale strategy that developers have utilized where they take a loan to build one property, and while that project is underway, they use the funds to start construction on another build.  It’s estimated that 85% of construction projects are funded this way, so developers are massively over-leveraged in incomplete properties.  People are making mortgage payments on properties that aren’t even built yet.  Can you imagine buying a first, second, or third property that is several years from completion?  That is far worse than the sub-prime loans that led to the 2008 global recession.  At least then, the property asset actually existed.  Here it does not.  It’s similar to a Ponzi scheme in that it only works so long as investors are eager to fund the projects.  That’s not the case right now. Chinese citizens stopped making mortgage payments for properties where work was halted.  This is a crisis of more than 300 billion dollars.  The Chinese government has struggled with a 148 billion dollar bailout and has suggested a grace period for mortgage payers.  It’s important to remember that the lack of investments for the average citizen has resulted in real estate as pretty much the only possibility.  There are more second home buyers and almost more third homeowners than first-time buyers.  So, the average Chinese citizen is heavily leveraged in investments in vacant properties or paying a mortgage on properties not yet built, not stocks, bonds, 401ks, mutual funds, foreign investments, precious metals, or even cryptocurrencies.  Chinese citizens are so outraged that many have taken to the streets to demand their money from the banks.  The Chinese government’s response has been to send in tanks and troops to establish order and to freeze their citizens’ deposits. WHY IS IT REALLY BAD? Property SalesChina is the second largest economy in the world.  Two important numbers to pay attention to are 72% and 9.2 trillion dollars (9,200,000,000,000).  First, the 72%.  Property sales fell 72% compared to the same period last year.  This is a clear sign that Chinese investors no longer view real estate as a safe investment, so money isn’t going into this Ponzi scheme any longer.  The Chinese are also refusing to make mortgage payments on stalled housing projects.  When those payments cease to flow in, developers are forced to default on their loans. This is where the 9.2 trillion dollars comes in.  That is the estimated exposure to the property sector, and more than half of that is in the form of mortgage loans.  These are genuine and scary numbers that are well documented.  9.2 trillion dollars is 12 zeros.  It’s the equivalent of 565 Jeff Bezos.  It’s 3/4 of China’s total GDP.  It’s more than the entire GDP of Germany, France, and the United Kingdom combined.  9.2 trillion is 159% larger than the total number of every US dollar in circulation.  The Greek debt crisis of 2015 sent tiny shockwaves worldwide that are still reverberating today.  That was an insignificant fraction of 9.2 trillion.  The 2008 sub-prime housing crisis in the United States that plunged the world into a recession was among the five worst financial crises the world had ever experienced and led to a loss of more than $2 trillion from the global economy.  As bad as that was, it was just over a fifth of the size of this looming Chinese crisis. You may have heard of Evergrande because that company defaulted to the tune of over $300 billion, but did you know other major real estate development companies: Sunac, Kaisa Group, China Aoyuan, and Shimao Group have all been delisted from China’s financial markets?  The list of companies being delisted from the US stock market is also growing by the day, as Chinese companies refuse to report how bad it really is in their disclosures required for listing on American exchanges.  Currently, over 260 Chinese stocks may be delisted from the US exchanges because they may not comply with third-party, impartial international auditing requirements.  That could potentially deflate the stock markets to the tune of 1.3 trillion dollars.  Keeping with the same analogy, that’s the equivalent of 8 Jeff Bezos. HOW BAD WILL IT GET? ReportUnfortunately, we don’t know how bad this will get before it gets any better.  China doesn’t have an excellent track record of reporting accurate numbers, so we don’t know where the bottom of this eminent collapse really could be.  It’s difficult to tell even how the collapse will occur.  It has been known about and predicted almost every year since 2016, yet it only seems to darken in scope.  Currently, the ruling Chinese Communist Party has lowered interest rates, bailed out developers to encourage them to complete projects, and injected massive amounts of cash into their economy, triggering gains in their bond market.  As they encourage builders to complete projects under penalty of imprisonment, will the new housing projects be habitable as corners are cut?  Will there be any confident buyers, or will the new housing simply add to the 65 million currently vacant properties?  The Chinese government is freezing many of their citizen’s bank accounts to the tune of six billion dollars of deposits.  They had already continued to lower the reserve requirements for their banks to keep their economy chugging along unfettered.  This means that banks could collapse if more than 10% of their people withdraw their money simultaneously.  That low reserve amount means that money has been lent again and again and again.  It doesn’t exist but on paper somewhere, and most of it has been pumped into more and more real estate projects that have yet even to break ground.  All of the CCP’s efforts right now have only managed to kick the can down the road a little further, but they are running out of road. Should we cry wolf at this point?  The evidence is all there that a wolf is at the door.  We have seen predictions of China’s imminent collapse ranging from next week to next year, when hundreds of millions of bond payments are due.  An accurate forecast is also tricky because of the absolute control over its markets that the CCP has.  They have for decades been allowed to manipulate their currency on the global stage.  They have grown the Chinese manufacturing capability to be 30% of the world’s total output.  Big banks, national banks, and credit agencies are all afraid to reveal the truth and downgrade the Chinese economy for fear of the panic that will occur.   At the same time, China is heavily invested in other failing economies, most notably Sri Lanka.  Their policy of garnering support on the world stage through debt-trap diplomacy has resulted in countries currently in financial freefall or reeling from inflation and recession.  They will not likely be reaping any monetary compensation for these investments that could offset their current crisis.  There’s the possibility that China could sell off its interests and exposure in the United States to raise capital to keep its government going.  That could dramatically impact the United States market. There’s more to China’s problems than just this real estate problem.  The global consumer market is shrinking, bringing less revenue into the country and dropping their GDP.  There’s a massive debt from the country’s high-speed railway network that is flashy but operating at less than 40% of its capacity.  COVID lockdowns, as we covered in other videos, have shuttered factories, reduced freight, and cargo output, forced citizens out of jobs, and locked them in their homes.  The citizens are in a constant state of unrest under the zero COVID policies. Though that rarely takes the form of physical revolt because of the heavy-handed authoritarian nature of the government, it is often quietly done through social media, work slowdowns, or tiny acts of rebellion that further erode GDP.  Banks in China are declaring bankruptcy at an alarming rate because their fractional reserves are just 10%, and they are way overleveraged.  They are up to ten times over-leveraged, as they have loaned out money that they essentially didn’t have for projects that will never be completed. WHAT AREN’T THEY TELLING YOU? ManufacturingIt’s easy to dismiss the China crisis.  After all, that’s many miles from us.  How could their collapse possibly impact us?  First, China makes up almost 1/3 of all the world’s global output for manufacturing.  That’s everything from integrated circuits to insulators and other electrical machinery for power plants to plastics and building materials.  Imagine 1/3 of all the parts you need to keep your country’s grid functioning, your country’s houses being built, and your transit systems running suddenly in scarce or questionable supply.  Second, as China finds itself in deep need of generating actual, tangible capital, it will dump the debt it bought from other countries.  China has extended loans for decades to developing and developed countries.  The country holds over a trillion dollars in US treasury bonds alone.  As national banks enter a monetary tightening cycle worldwide, China will likely use its investments in other countries to hold sway over those countries. Already several credit rating agencies like Moody Corp., S&P Global Ratings, and Fitch Ratings Inc. won’t assign a grade to China lower than a C.  International rating agencies and fund managers are not accurately assessing how dark China’s economy is right now because it would cause global panic and unleash massive restructuring and collapses in the financial markets at a time when the world is actively in a recession and recovering from COVID, supply chain failures, and an ongoing Russo-Ukrainian war.  Why tell the passengers the plane is going down when there’s no hope of avoiding the crash? All of these problems in the Chinese economy have eroded their people’s confidence in the banks and government, and it has scared away all the international investors.  We know that based on China’s historical actions, there are several moves it may make that will hurt the world while it tries to save itself.  Without investors and money coming in, default is inevitable.  In September, which is why many say this will melt down within 30 days, more than $2 billion in high-yield property developer debt is due.  That’s twice as much as was due this month when these same developers begged for extensions.  So, with household wealth in China collapsing, payments coming due, and the CCP running out of options, they will likely go after the CEOs of these development companies and their own wealthy investors.  After all, the people want a villain, and the CCP and Xi Jinping are unwilling to play that role.  We will likely see significant saber-rattling over Taiwan and the South China Sea as a bargaining chip and a threat to world peace.  It is likely we will see China dumping assets and massively restructuring their economy as they move away from high GDP and further into communism. While the CCP could still kick this can further down the road, as they have done for the last 5-years, it is very likely we will see the first stutter step of a much greater fall as early as next month. WHAT SHOULD YOU BRACE FOR? ForExWe will not gloss over this or downplay it like the world leaders and banks are doing.  This is bad.  If you are going to brace for the worst, well, the worst is probably the worst we have ever seen on a global stage.  This house of cards isn’t limited to China but envelops the world.  Depending upon your country’s fiscal, industrial, and manufacturing ties to China, some countries will feel this collapse or massive restructuring worse than others.  If you have already felt the effects of the Chinese lockdowns in the form of scarcity of products or problems at your nation’s ports, you can expect it to get far worse in the coming months.  If your country’s infrastructure depends on those Chinese electrical components and machinery, you should anticipate future grid service interruptions. If you are looking for investment advice, I am not a financial planner, so we have none.  We can tell you that historically when facing a massive economic downturn, precious metals, land, and resources are what sustain many.  From a prepping standpoint, we think it’s more critical than ever that people prep food, water, and energy to sustain themselves for a year or more.  Like it or not, we have become globally over-dependent.  The problems of another country are now ours as well.  China’s problem is reaching a point where it can no longer be kicked further down the road.  It’s unraveling with ever more tremendous momentum.  Prep for the worst. And as always, stay safe out there.