Showing posts with label economic collapse. Show all posts
Showing posts with label economic collapse. Show all posts

Sunday, April 7, 2013

Cyprus Preps

Ferfal did a great post on the topic. Seeing as he has actually lived through an economic collapse it's worth listening to him. It goes something like this:
-Basic Preps: Food, medical, guns, ammo, etc
-Cash in hand
-Silver and Gold
-A safe or two
-Offshore banking. I'm not so sure on this one but if you have no debt, plenty of preps and PM's as well as a decent paid off home/ retreat and still have enough extra money to merit the hassle look into it. Here is the video if you have 20 minutes to spare.
I would add that you should take care of medical/ dental stuff that you've been putting off as well as vehicle repairs, new tires, etc all. Get stuff you know is going to have to happen done now while the cost is still sane.

As Thomas Sowell noted this is arguably happening now in the US via inflation. It took me a long time to really understand inflation. Reading The Alpha Strategy and "Economics in One Lesson" let me understand inflation for the sinister regressive tax that it truly is.

We could debate how bad things are going to get in the US or the probability of certain results. The bottom line is that something less than optimal will certainly happen and something bad is probably going to happen. Start doing something about it while you still can. 


Saturday, March 30, 2013

Cyprus, Herbs and Taters, Smith and Wesson M&P and Ramlings

That whole mess in Cyprus was pretty interesting. The model that government will screw citizens to protect banks is proven yet again. At this point banks are playing like Nicki from Casino. Gamble and collect if they win; should they lose they do not pay. If I was a Cyprusian, or whatever they call themselves, who happened to of had 100k Euro's in the bank I would be a lot poorer and very angry right now. Like buy a hoodie and a bandana then start burning stuff down angry.

The jilt of the situation is that bank deposits were stolen levied in a one time tax to help support the EU bail out of the countries banking industry. Cyprus is unique as it is a popular place for rich to moderately well off sometimes crooked Russians to stash money. Needless to say Russians are not a big fan of this. Maybe President Putin who is a real life bond villain and the most awesome man in the world will kill them all. I'm not sure.

This brings up a couple interesting points. As TEOTWAWKI Blog noted it is important to have some cash on hand. A month's cash expenses (food, fuel, medicine, incidentals) is a good reasonable goal. More would not hurt if your overall situation merits it. Given the effectively negative interest rates these days if you have more lying around one could go to 2-3 months cash expenses.

Claire Wolfe brought up a good point about considering how much cash you have in the bank. This is something that concerns us. We have a lot of money, by percentage and considering our life situation in the bank. Over the next several months we are going to do something about that.

Some dude in Tuscon is looking at handing out shotguns to low income women in high crime areas. I cannot see how it could make the war zone that is low socioeconomic status Tuscon any worse. Heck it might just make things better.

Today for dinner I heated up some frozen meatloaf MIL made when she was here. Did up some crashed potatoes to go with them. I liked that Greek oregano and green onions from the gargen were part of it. That is pretty cool. It looks like one of the strawberries died. The other strawberry plant I think is going to be fine.

So I've been hanging around in gun shops to buy ammo recently the opportunity to handle a couple of guns has come up. I really liked the ergonomics of the Smith and Wesson M&P. That gun feels great in my hand. It would be a very hard sell to get me to purchase a 9mm that isn't a Gen 3 Glock but I like the M&P a lot. Should I decide to buy a .45 it might be an M&P.

Also handled a Rossi Ranch Hand. That thing might just be a stupider gun than the damn Judge. A lever action pistol caliber gun you need to hands to reload, seriously people. If it's compatible with a bigger stock you could (of course pay $200 and fill out some forms first) make a Cowboy SBR I guess. Seriously folks just get a revolver that beats this piece of junk in about every possible contest.

Been doing a lot of reading about the battle of Grozny (the first one in late 94 to early 95) for some work stuff. Will probably talk more about that later. There are definitely some lessons to be learned and it is pretty interesting.

Well I'm bored of writing now so it's time to end this.

Hope you all are having a great weekend.



Tuesday, March 12, 2013

Economic Crack Binge and Coming Effects

The best comparison to our countries economic situation and coming problems I can think of is Charlie Sheen. Our problems with massive deficits are like Charlies problem with crack cocaine and alcohol. Lets call derivatives the Charlie equivalent of prostitutes/ porn stars.

Now I cannot predict the specifics of Charlie Sheen's next breakdown/ meltdown/ fail. I can however confidently say 100% that there will be one. Maybe he will shoot his celebrity fiance, hold a knife to the wife's neck at Christmas dinner, manage to mess up staring in the top rated sitcom on tv, who knows. (These are all things Charlie has actually done;)

 Disturbingly our upcoming economic problem is like Charlies upcoming breakdown/ meltdown/ fail. Just maybe we will manage to kick the proverbial can a ways down the road. Maybe it will be 70's era stagflation. Could be the standard South American currency devaluation/ hyperinflation or an all out Argentina like economic collapse. The old adage that big powerful countries do not go broke, they go to war (a la Germany) could prove accurate again. Maybe a combination of crumbling infrastructure and weakened defense makes an attractive time for an old enemy to attack or just use an EMP to keep us distracted internally. Maybe one of the dreaded black swans pops up in the time we are able to handle it the least.

What can we do about this? Well the usual advice to buy bullets, silver , gold and emergency food is always sound. Things like water filters might become important as infrastructure crumbles or breaks and standards just plain drop. (Yes that is a lot of linkeage in a paragraph. Got to keep the bill payers happy.)

Being as healthy as possible is prudent. Get fit, take care of lingering issues you may have, go to the dentist, order a couple spare sets of glasses and stock extra medication.

Buy food. Yes it is getting more expensive but basic staple food, even the long term stable stuff, is still a great deal. Right now food is ridiculously cheap by historic percentage of income. Most people here can probably make some choices to put a few bucks into food and fill up the pantry.

Learn skills. Specifically learn skills that will let you do things yourself instead of paying somebody else to do them.

Get ready to protect yourself. Things aren't getting better. Have realistic and sustainable (if it's not comfortable you will not do it) plans to carry weapons while still going through your normal life.

Most of these things are not new. In fact they are generally the same stuff I talk about. Best get too them before they are more expensive and harder to do.

Tuesday, February 19, 2013

Inflation Coming and What Are You Doing About It

It has been more and more clear to me that we are in an inflationary situation. If you have been to the grocery store, gone clothes shopping or filled up the family auto you have probably seen it also. Maybe I am just really noticing it but it is here. Lots of hidden inflation in food products, smaller servings, etc but it is still apparent.

The scary thing is that our current slowly robbing you of purchasing power inflation can suddenly begin quickly robbing you of purchasing power. When the banking conglomerate market focuses on a country things can spiral out of control in a hurry. Not months but weeks if not days.

This week for whatever reason I am getting out of the problem admiration phase. Put up a close line earlier this week. Dug out the spare parts to fix Wifey's bike and will get it up and running probably tomorrow. Trying to find a deal on a bike for me.

Today I picked up some plants; herbs, yellow peppers and tomatoes. My brilliant plan is to grow them. I think the plants are going to be coming inside at night for a bit until the risk of frost is over, probably in 2-3 weeks but I have to do some more reading about it. Am going to get my stuff together, do some research, and try to grow a half dozen buckets (or pots as Wifey doesn't want our yard to look white trash fabulous) of different stuff. If I can make it work without a hassle it would be nice to do the heirloom thing and keep the seeds for next time.

With the exception of  getting the bike up and running and hopefully finding another one for cheap these are tiny steps. Growing some food would be nice, both to teach kiddo about taking care of things and have a fun activity to do with him and to save a few bucks. In fact I expect failure. I don't expect a whole ton to happen from these efforts. The reason I am doing it is to get the inevitable growing pains out of the way now when it doesn't matter. However the real point is to start building some skills. Skills we may need later. Skills that may be the difference between barely getting by on stored food and having some variety to go with it.

I also dug out FerFAL's book Surviving the Economic Collapse  and started going back through it. I briefly talked about his book years back but it turns out I never did a full review. Might have to fix that. In any case despite the relatively high cost of $25 I suggest buying and reading this book. If you are really cheap, read all his old forum posts, guest posts at Survival Blog and his blog it's probably OK to skip the book. That being said I did all that stuff, bought the book and was happy I did.

We are also putting money into food. Stuff like freeze dried emergency food and plain old canned staples like rice and beans. Depending on where your preps and finances are you might want to think about precious metals. If your financial situation is in decent shape (no credit card debt, some savings, etc), you have some gear and a few guns with ammo PM's are a good place to park a few bucks. In particular I think silver is a good buy right now with at $30ish.

I am not saying that you need to do what we are doing. Everybody has different strengths and weaknesses and working from them instead of blindly following me or anybody else makes sense. The point is that you should be doing something.

What have you been doing?


Tuesday, January 1, 2013

Ruminating Thoughts On The Coming Year

The Sun will continue to rise and set. Basically I expect a slightly worse version of this year.

Taxes- Taxes will go up. Part of this will be strait forward rate increases but most of it will be increases in 'fees', eliminations of various loopholes and such. The bottom line is that more money will flow from your pocket to multiple levels of government.

The Economy- I am not sure about our economy. My initial thought is that the lost decade our current jobless, non housing inflation and cheap money fueled recovery will continue. In this regard I expect a bit worse version of 2012. Then again who knows.

The European Sovereign Debt issue could well reemerge. With China's unsustainable growth rates turning to inflation and the economy slowing the US may well be one of the better looking horses in the glue factory this coming year.

I suspect artificial manipulation of gold and silver prices to continue. Silver will probably continue to be a pretty good buy over the coming year. Once our food storage goals are met we will put away some more PM's for sure.

Inflation- Hidden inflation will continue. The current CPI calculation seems manipulated to suit political aims inaccurate on how inflation affects normal folks. Most of this inflation will be covered up by smaller packages, less food by weight and the usual tricks. Expect your income to purchase fewer goods and services than before. 

Gun Control- I think that gun control could go many ways.  Were I forced to take a guess something will probably happen next year. The Dem's will do something, potentially via executive order if needed, to get a symbolic victory. It could be as benign as mandatory reporting of certain behaviors by medical professionals and maybe import limitations on certain guns like Siaga 12 shotguns and AK's or could be worse.

Crime- It ain't gonna get better. The flat lined economy will push some marginal folks towards crime. Also as state and county agencies try to make budgets work they are going to continue or increase prisoner releases. Yes these folks will generally have been arrested for nonviolent offenses but that is just what they were caught for. Plenty of violent criminals are incarcerated for various minor offenses and some of them will inevitably be released.

Down here in the South West I think the Reconquista downward spiral of drug/ cartel violence and unchecked illegal immigration will continue.

I wish that it wasn't my opinion that the partisan nature of politics in the US will get worse. Identity politics and hate mongering to suit various agendas will continue. There is potential for short flashes of localized violence being orchestrated to suit specific purposes. Think twitter flash mobs against political opponents.

Afghanistan- It isn't going to get better. The writing is on the wall that we are leaving. Expect limited conflict to support political goals. Think 'Nam in about 1971.

Wellthose are, for whatever they are worth, my thoughts on what is coming in 2013. Hopefully they give you something to think about. Again in closing I expect it to be a lot like last year but a bit worse.  Good luck,

What are your thoughts on the coming year?

Ryan




Sunday, November 11, 2012

From Around The Web

Thousands of Portuguese soldiers protest budget cuts. This individual event may be nothing but broadly speaking large scale military protests are indicative of serious instability. Often this sort of thing is followed by the executive branch trying to fire/ arrest a couple of key Generals next week followed by a bloodless coup that puts in a "transitional council" of key military leaders that may or may not go away.

Syria fires at Israel who returns a warning shot. Those two countries haven't exchanged fire since 1973. This is obviously not good.


On a lighter note
Meth has been proven to help fight the flu. Talk about the cure being worse than the disease.

Saturday, October 13, 2012

RE: Advice on Military/ Banking/ Finances

Saw this post over at FerFal's place. After thinking on it for awhile I decided to do a post here instead of commenting over at his place. Nothing wrong with FerFal's ideas but let's just say I have probably thought about this scenario a bit more.

The basics of survivalism/ preparedness obviously apply. Have food to eat, water to drink and the means to purify more, medicine for when you are sick and arms and ammunition to protect your family. That statement is a mouthful we do not need to get bogged down as the specifics of each of those are another series of posts.

These folks have some cash in an IRA. I definitely wouldn't mess with what is already there. Maybe depending on what they are contributing in comparison to other savings they could slow IRA deposits but that is getting into the weeds. Remember folks, we do not know what is going to happen. Maybe my grand kids will be living on a hard scrabble little farm in the woods shooting small game with home made bows and defending their lives with ammo I have stored. Then again it is probably a lot more likely that things will keep on ticking and in 40 years when I'm bouncing grand kids on my knee it will be nice to have some money.

As FerFal suggested keeping a good portion of your liquid emergency fund in cash is prudent. I wouldn't keep it all at home as accidents can happen when you are away. However keeping at least 2-3 months essential cash expenses (food, fuel, medicine, etc) worth of money makes sense. You could make a good argument for keeping more beyond that up to say half of your liquid savings in cash.

The benefits of owning some precious metals were mentioned and are pretty obvious. They are a good hedge against inflation and currency failures. Don't go crazy here. Buy an ounce or two of silver when you can (or save it and make bigger orders to cut down shipping costs and take advantage of better deals) and over time it will add up.  If you have a bit more money buy some small (1/10th and 1/4 ounce ish) gold.

The topic of off shore accounts came up. Let's move forward assuming this money isn't best spent elsewhere and we want to keep it in some sort of currency. I wouldn't worry about off shore accounts unless you have serious money to stash. If you have a few grand I would put some in the gun safe and maybe hide the rest in a well thought out cache. The hassle wouldn't be worth it and the potential benefit's are iffy. Anywhere they will take a card cash will work, the opposite is not true. Now if you had fifty thousand dollars maybe it's worthwhile to take a trip to the Cayman Islands or someplace.

As FerFal noted the military and security folks like police are going to get paid unless things fall apart entirely and go totally Mad Max. I am going to get the exact amount of dollars and cents on the first and fifteenth. That does not however carry any guarantee that the money I receive will be able to purchase a given amount of goods and services.

Inflation is coming, heck it is here now. I fear that the best case is for it go get worse, like 10-20% real inflation for a few years. If things get crazy it might be worse than that. I don't see Zimbabwe/ 1920's Germany hyperinflation happening but 30-50% inflation would be ruinous. 

The one big thing I would add to FerFal's post is to decrease your standard of living now. Be balanced and don't do anything radical overnight. Try to pay off some debts and maybe eliminate bills by canceling various nonessential services. If you can start doing things for yourself [Guys buy a shaver and cut your hair at home. If I can do it you can. Gal's put a lot more stock in their hair so unless somebody is good at cutting it then get it done at a good but sanely priced place. That's just my .02 cents.] to eliminate bills. Buy stuff on sale and take advantage of coupons. The point here is to decrease your basic household expenses. Again be balanced with this and do it over a period of time so it is less uncomfortable.

Reallocating money you are used to spending on whatever is very hard. I know because have done it. Cutting twenty bucks from the grocery budget means you don't get Digorno pizza on Wednesday, the Mrs doesn't get the soda she likes  and you both have to drink less beer (or whatever). The point is that it sucks. Sorry, wish there was a better answer. Being smart and doing it over time helps. Also seeing the benefits of what else you can do with that money helps considerably. The savings account may grow as could cash and precious metals on hand as well as preps put away.

For military folks or anybody else with a fairly predictable salary schedule there is another option to use in conjunction with decreasing expenses. When you get a raise make some intentional choices with this money. Instead of letting it slip into your budget with a few small lifestyle increases save that money, put it into precious metals or preps or whatever else makes sense. Do that a few times and you will have a nice gap between what comes in and what you actually need.

This gap building we are has a couple benefits. First it lets you go into overtime paying down debts, putting away cash and precious metals, storing preps or whatever your goals are. Doing these things helps improve your situation even further. It is a positive feedback loop.

Second and more on topic this is your inflation protection. Living on 50-60% of what you make means there is some room to absorb inflation. Of course you would want to change your standard of living to still save, etc but you would have time to figure that out in an orderly manner. Not a fun option but I fear it is very realistic.

Think about it like this. If Fate left a message saying that your income would drop by 30% on a given date you would start doing things to get ready for it. If that date was in 6 months or a year you could pay off that credit card and ease out of $5 coffee every day, mani/pedi's or whatever, and other luxuries. Might even trade in a car for an older model, eliminating another payment. You would darn sure save some money. Now if that date was a week away all it would do is be depressing. By getting in front of this problem you have the luxury of time to make things as pleasant as they can be.

Anyway those are my thoughts on the matter.

Saturday, September 29, 2012

RE: Southern Prepper 1 Video Thoughts, What Would I Do..

I posted a video from Southern Prepper 1 a couple weeks back. It has been in the back of my head since then. The things I would do if I KNEW an economic collapse was coming in say 6 months are as follows in no particular order:

1) Secure 6 months of all medications we use.
2) Get a new bike for me (mine was stolen) and ensure the wife's is ready and functional. Stash extra tubes, tires and chains and such.
3) Sell the SUV we shipped from Germany and purchase a small commuter car. Depending on how bad things might get fuel may still be available but more expensive. A little car would let us do things that are not easily walkable at the lowest possible cost.
4) Stash lots of food.
5) Buy a better small solar setup.
6) Finish off a variety of loose ends. Just small stuff really.
7) Have more of my available liquid cash on hand than in the bank.
8) Have developed and refined a couple more systems for light and heavy (vehicle) bug outs.
9) Purchase a small (5X8 or 9ish) enclosed trailer.
10) Store some gasoline.
and one more for the bonus
11) Ensure we had the next 2 sized of clothes and shoes for the kid(s).

Of course I would also pull out everything we have in the bank and stocks and convert it into PM's or readily barter able stuff but that is kind of gaming the scenario. 

Anyway most of this stuff is what we should be doing anyway. Might not be a bad little list to work on.

Saturday, September 15, 2012

Southern Prepper 1 Video And Thoughts.....



A pretty interesting video. It is prudent to look at your situation and do some thinking. The idea to decrease your expenses by paying down bills or eliminating services (like for example cable tv) is sound. Also being able to do stuff for yourself that will further decrease your expenses like planting more stuff you eat to cut grocery bills is good also. I think it bears repeating not to do anything crazy or create panic within your family. Just do some thinking and within reason consider taking some steps to improve where you are.

I have some thinking to do.

Thursday, September 13, 2012

Putting on my Nostradamos Cap

On Economics/ Politics:

Well QE 3 is finally getting launched so we will see a fast meaningful recovery the lost decade will continue.

Unfortunately I do not think our economy is going to get better until we are really honest about our situation and take the steps to get back to an honest and stable place. This requires facing the pain of unraveling all the bad "assets" floating around and the massive empty inventory in the housing market gets unloaded at realistic prices. As this is not happening any time soon the pain will continue.

I saw an interesting article over at James Dakin's place (original Lew Rockwell article here) that basically says we will not have hyperinflation because it is not in the best interest of big banks and their whole crony network. I cannot say that I understand it fully but, not necessarily for any quantifiable reason, I agree that hyperinflation is not likely.

We do need to get onto the same page as to exactly what is considered hyperinflation. Let's pick the definition of hyperinflation as greater than 50% inflation in a month. It is as good as any. I do not see this happening. Yes we have a huge debt but we are too big and powerful with too many huge productive businesses for it to be likely IMO. (Also I think Arctic Patriot noted that huge powerful countries do not go broke, they go to war) I don't intend to argue this point, it is just my take on things.

Now I do think a period of painfully high inflation is quite possible. Maybe somebody gets some sense and cuts off the free money that has been subsidizing big businesses and poor decisions like dollar shot night at the local bar. Maybe our creditors start to get wise and demand an actual return on their money. Maybe the big banksters aim their destructive market powers at US. I don't know.

We could see 10-13% inflation which would probably leave the fed rate around 16%, prime mortgages around 20% and consumer debt in the area of 30%. This would drag down our economy like a guy trying to swim with an anvil tied to his waist. Several consecutive years of this would essentially destroy those on fixed incomes. Folks holding adjustable rate debt's would probably face default or ruin.

We may see rioting and disorder as welfare/ food aid/ etc that are chained to the ever more manipulated to give a happy story CPI get left behind. [Briefly touching on Matthew Bracken's When the Music Stops I do not see our government failing to send out welfare/ food stamps (now on cards)/ etc. I respect Matthew Bracken immensely but IMO this article misses the simple point that our government via it's cronies the Federal Reserve has a darn license to print money. It is like saying that Jack Daniels will run out of Whiskey or Tula will run out of .45 caliber bullets.

Seniors and moochers will get what they are "entitled" down to the exact penny. However that doesn't mean it will be worth the same as it is today. Somebody on food stamps or whatever will get the same dollars worth of hand out's but if a pound of rice costs $5 and a Digorno frozen pizza costs $10 it won't go very far. Not quite as sudden or whatever as envisioned in the scenario. It would more likely cause a slow upswing in problems than a sudden burst of angst. That is of course unless some sort of response was coordinated to meet a specific purpose in support of some agenda.]

I see this arguably intentionally orchestrated series of events potentially diminishing our status on the world stage with a wimper, not a bang. Think of the way Britain's role and power have changed from WWI to now. They went from being the biggest and arguably most powerful nation in the world to being publicly dissed by Argentina stealing their island (yeah they later took it back, barely).

On War:

The madness between Israel and Iran is out of control. All I hear in the media is war drum's. At this point I really would not mind if they get it over with and fight, at least that way it would get done and we could have  the news back. Except of course it would cause a lot of problems, likely embroil us in a nasty conflict, maybe cause nuclear war, blah, blah, blah.

On Gun Control:

I do not see a reinstatement of the Assault Weapons Ban or whatnot. The balance of public opinion is clearly against it. Unless the Dem's sweep the house and senate plus keep the presidency which is probably not likely I am not concerned. Even then I am not so sure for heavens sake Walmart sells AR-15's.

That being said ATF fiat and possibly executive orders might pop up with some fun new stuff. The play of the ATF arbitrarily usurping more of our rights changing some regulations which FFL's (and individuals) will then follow or face their lives being ruined and livelihoods destroyed is already in the playbook. Remember that your shotgun is a shotgun unless it is suddenly a pistol or maybe an evil assault weapon.

On Crime and Disorder:

In general I think crime is getting worse with the signs showing the trend is likely to continue. Maybe it is the economy. With everybody (well a lot of folks anyway) taking a step down the proverbial economic ladder some folks look to crime as the easy way out. Some of it is cultural/ environmental but that doesn't really matter. For reasons I am not entirely clear on criminals seem to be getting more and more violent. Home invasions seem to be becoming more and more prominent.

As discussed above there is a potential scenario (amongst others) where things could just go nuts like LA Riots times 1,000 all over the place.

Anyway that is what I think may be coming. Now to what we might be able to do about it:

Economics:

Some folks argue that having a lot of debt is fine because hyperinflation or at least inflation will let them pay it back in cheaper (or basically free) dollars. The first issue with that plan is that if you haven't figured it out yet banks are going to get taken care of at the expense of common folks, not the other way around. The second issue is that you it will be hard to pay back cheaper dollars if you lose your income/ job because the economy tanks.

If you listen to nothing else that I say get out of any debts that have an adjustable interest rate. The only exception would be if you have the cash to pay the debt off immediately (like in the next payment) but choose to keep it at a low adjustable rate so you can stay a bit more liquid. Rates are very low right now with almost a guarantee that they will go up. As we saw with various European countries a bad auction or two can jack up rates in a hurry.

The basics still apply here. Minimize debt and live below your means. Save in various forms against an uncertain future.

Gun Control:

In this quadrennial 'OMG the evil gun haters might ban everything' period I have spent a bit of money but that was just bumping up some purchases I planned to make anyway by a bit. Sort of hedging my bets if you will. That being said I have been getting squared away in this area for awhile and while things aren't perfect (are they ever?) most of our bases are covered. If you do not own something, especially if it is likely to be targeted in a ban, that you want and can afford then consider getting it.

Crime and Disorder:

Things are getting more and more dangerous. Carry a weapon if it is legal and practical for your lifestyle. Get the training to know what you are doing. Make yourself a hard target. If you live someplace that is sucky and dangerous with a high percentage of unhappy urban folks and welfare types consider moving if you can figure out how to afford it.

Note that most of the things I have recommended are the same things I have been talking about for awhile. Preparing for every situation is not the same. You do not need a dozen assault rifles to survive an economic collapse. Having half your net worth in PM's will not be ideal if things go all mad max. That being said a whole lot of the commonalities are the same. Live below your means saving (in various forms) for emergencies and the future. Store food, fuel and other various things you will need. Have the skills and weapons to protect yourself and your stuff.

Anyway that is what I have been thinking about. Thoughts or input are of course welcome. 








Wednesday, June 13, 2012

Fed: Recession kicked median household wealth to 1992 level

Here is the article. This is not suprising but still sort of depressing. What they fail to mention is that a buck is worth considerably less today than back in 1992.

I look at who benefited from this, the classic cui bono if you will. It is pretty clear to me. Big bankers and financiers made a killing. Politicians did well on campaign contributions from those folks as well as using the money flowing into their coffers to buy votes. Personally they also made a killing on insider trading their consistently and consistently lucky investment choices. Some normal folks did well, if just for awhile. Nobody was complaining when their homes went up in value 20, 30 or even 40%. Nobody was complaining when the construction industry was booming.

I realized in writing this that I have sort of looked at bankers in the wrong way. I think a bit too locally. The assistant manager of West lake Trust in Peduke, Iowa population 50,000 didn't wreck out economy. That guy gives people loans they come to the bank looking for. Now the big bosses at Citibank, B of A, WAMU, etc all on the other hand had to knew what was really going on. That is why they got rid of these loans like a kid playing hot potato. They made money hand over fist for years. When the game was up they dumped all the junk onto the public in a variety of ways both above and below board. After that we loaned them cheap money which they used to buy up the competion which was slightly worse off or couldn't get easy money friend loans.

Between politicians making laws, setting conditions (keeping interest rates artificially low for years) and supporting their friends in banking and finance a lot of the blame goes to our wonderful elected officials. Banksters knowingly gave bad loans which they repackaged to unrecognizability then sold as rock solid. They bought politicians to do them favors and provide mafia like protection. These two groups royally screwed normal everyday Americans out of tons of money.

I cannot however totaly absolve people of the choices they made or the situations those choices caused. Lots of folks used electronic/ paper gains in their homes to finance vacations, new cars or home improvements and such. Some of them are mad now because they are "underwater" and have to pay back the money they so prudently cashed out during the boom. Lots of normal folks made poor choices thinking that somehow the good times would never end and ended up in a bad spot. Others tried to get in on the game and lost too, by the time normal folks get into the game the smart money is already on it's way out. Normal folks are standing when the music stops in the proverbial game of musical chairs.

Today I may be more disenchanted, with the establishment for lack of a better word, than I have been since the height of this mess in 2008 or so. Not exactly sure what if anything I will do about it.

Friday, May 11, 2012

Friday Randomness

Well it seems President Obama's view has evolved to where he now supports Gay marriage. My thoughts on that issue are on the record and I am pretty much ambivalent about this new development. I suspect it is about firming up his base and making Romney look like an evil hate monger.

If you have been waiting to buy PM's at a dip it might be time to pull the trigger.

In case you were wondering 2 year old girl scout cookies taste just fine.

If you are short on doom and gloom there is an outbreak of whooping cough in Washington State. In case you needed any more reason to vaccinate yourself and your children.

JP Morgan lost a couple billion dollars in the last few weeks.

Greek leftists want to stay in the Euro but avoid any sort of austerity.

France's economy isn't doing so well.

I have been enjoying the show Person of Interest lately. It is a bit big brothery and will make you want to delete all social networking stuff then smash your laptop and cell phone but those may not be thoughts worth fighting anyway. There is always action and the good guys win which makes for an enjoyable show.

Dewars Scotch whisky has found a place in our liquor cabinet.  It is smooth and affordable enough to drink whenever the mood strikes me.  It isn't going to be mistaken for a nice single malt but at half the price that would not be a reasonable expectation. One of the downsides of scotch is that a decent blend is the price of a bottle of Crown Royal or a good burbon.

Have a good weekend,

Ryan

Sunday, February 26, 2012

Wyoming House advances doomsday bill

House Bill 85 passed on first reading by a voice vote. It would create a state-run government continuity task force, which would study and prepare Wyoming for potential catastrophes, from disruptions in food and energy supplies to a complete meltdown of the federal government.


The task force would look at the feasibility of:


Wyoming issuing its own alternative currency, if needed. And House members approved an amendment Friday by state Rep. Kermit Brown, R-Laramie, to have the task force also examine conditions under which Wyoming would need to implement its own military draft, raise a standing army, and acquire strike aircraft and an aircraft carrier.


The bill’s sponsor, state Rep. David Miller, R-Riverton, has said he doesn’t anticipate any major crises hitting America anytime soon. But with the national debt exceeding $15 trillion and protest movements growing around the country, Miller said Wyoming — which has a comparatively good economy and sound state finances — needs to make sure it’s protected should any unexpected emergency hit the U.S.
Several House members spoke in favor of the legislation, saying there was no harm in preparing for the worst.


“I don’t think there’s anyone in this room today what would come up here and say that this country is in good shape, that the world is stable and in good shape — because that is clearly not the case,” state Rep. Lorraine Quarberg, R-Thermopolis, said. “To put your head in the sand and think that nothing bad’s going to happen, and that we have no obligation to the citizens of the state of Wyoming to at least have the discussion, is not healthy.”

Read more here.
 
It seems like a pretty solid plan. My only question is what would Wyoming, which unless my state geography is seriously off is landlocked, would do with an aircraft carrier.

Tuesday, December 27, 2011

Book Review Shatter by TC Sherry

This is book two of the deep winter series. To recap the last book began in the winter with a massive earthquake and ended with some other problems. This book sort of skims over the tail end of winter and covers the spring and summer. During this book bad turns into worse. It becomes apparent that the Spokane region and the PNW in general are not going to receive help from the outside and things are not going to return to any sort of old normal.

The Good: This book, as well as the previous book, lays out a compelling vision for a very bad future.
To me it is sort of a “and then what” kind of book. So things went to heck in a hand basket, you get stuff set up initially and after a couple months most of the looters have been naturally selected AND THEN WHAT. Folks start figuring out how to feed themselves in the long term, trade, reorganize society and move forward. That is what this book is about.

MILD SPOILER ALERT FOR THE NEXT COUPLE LINES.
Basically in the first book after the earthquake things internationally then nationally go to hell in a hand basket. The dollar collapses and there is war.  In this book things get even worse, and then worse again, like dealing with all that had happened in the first one wouldn’t be enough.
END SPOILER ALERT

The book brought up some interesting stuff when it comes to property rights, scavenging and ethics. What has been bothering me in a couple books I have read recently, and to some degree the first book in this series is hypocrisy. In this book the main characters actions on the whole were IMO were pretty close to what they expected from others. I won’t say that I agreed with every thing that happened but on the whole it wasn’t offensive and was very thought provoking so that was good.

I think this issue gets complicated if there is a significant die off or long term population shift. There are definitely more questions than easy answers as far as I am concerned. If folks are dead or gone and heirs are not able to be located who does the property belong to? If your neighbor was visiting his cousin in Maine and the balloon goes up at what point do you decide he isn’t coming back? What happens to his stuff?
I think it is pretty clear that stuff which belongs to people who are present or realistically may be present is theirs. However if things get nuts enough that big companies fall apart and such who do their buildings, stores and equipment belong to? Some level of nationalization albeit at a city or county level is likely, at least with this sort of stuff and is probably fairly ethical.

I liked that government didn’t magically go away. It is really a pipe dream to think that some sort of government won’t exist, especially at the local level of city and county. It will hopefully change and help set the conditions for people to take care of their selves, or at least not cause any real problems in a new world though it could get nasty and totalitarian.

In this book there was a sort of barter network that morphed into a sort of general store. For somebody with a knack for that sort of thing, access to a suitable space and some stuff to sort of seed the effort it might not be a bad idea to take some notes about that part. That people were more interactive vs just staying at their homes alone was good I think. People have a tendency to be social animals and it is difficult if not impossible to produce everything you could need or want. It definitely reinforced the desirability of being able to produce, above and beyond your own needs, something which people want.

Personally I do not stock things specifically for barter. However that is at least in part because I am not quite there yet. If one was so inclined they could probably do pretty well with a few hundred dollars of the right stuff. Stuff like kerosene, lamps, .22 LR and small game shotgun loads, sewing stuff, matches, booze, etc.
This book is a good reminder that in many ways local government is more important than at a higher level. To paraphrase Ragnar Benson the county zoning or agricultural commission is far more likely to cause problems in your life than men dressed in black carrying MP-5’s from an alphabet soup agency. This is probably far truer in a long term serious situation as they will have a lot more freedom to maneuver. Bad local governments could turn into little fiefdom’s or Stalinist collective experiments very easily.  It was also illustrated in the book that if people don’t stand up to these things as a group they will inevitably get dealt with piece mill and picked off accordingly.

The Bad:
There was a distinct flavor of population and resource control. Think checkpoints and fuel usage restrictions, curfews, etc. I think these would likely be reality in this sort of situation but it isn’t something I particularly like.
Checkpoints I think would be a fine idea, probably a necessity so long as they didn’t hamper the free movement of individuals in the area and allowed some sort of through passage through for those who need to get someplace. It kind of rubbed me the wrong way that there were passes for people who were deemed special which of course included the main characters. Personally in that situation I would be awful curious about who the heck decided which people were special and what the heck they thought gave them the right to say they could move around freely but I could not. They really didn’t go into detail on exactly what these restrictions were or how they affected people who, unlike the main characters, were not deemed to be special, so I can’t say if I really have an issue parse.

Fuel restrictions I have a hard time with. Now if the local government has fuel and is distributing it then some prioritization to EMS, food production, etc makes sense. However telling someone what they can do with fuel they have is another thing. If someone has a 300 gallon fuel tank in the barn and a 74 stingray and wants to go drag racing down their driveway it really isn’t anybodies business but theirs and their neighbors.
A few things happened that were just a little bit too convenient. The main characters stumbled into some stuff in a way that was awful darn lucky. Not so much as to really mess up the book but enough not to show the benefits of having some things squared away beforehand or the downsides of not having them squared away.
The author talks badly about politicians and government officials who are anything other than perfect public servants and folks who said public positions carry privilege. However the main character definitely uses his position to his advantage a few times getting favoritism or special treatment that Joe down the block wouldn’t. It was government choosing winners and losers at a small local scale. Nothing nasty parse, more like good old boy stuff.

The Ugly:
Not really anything ugly about the book in the usual sense that something is worse than the bad. However the book did expose (which is a good thing and thus doesn’t really belong in the bad part) a couple of ugly and very real possibilities. The first is that a default on our debt would cause all sorts of international problems. It is the kind of thing that starts wars. Even if our country fell apart we have a huge and awesome military. Somebody who thought we were weakened and that they could take advantage or attack our allies might be making a very serious mistake. Even if we were pretty tired and confused we could wipe the floor with most countries.

The next is that some places would try to continue suckling from the teat of government. Big, blue rustbelt and New England cities come to mind.

Lastly the balance of government would go all out of whack. Everyone more or less marches to the same drum in normal times and any pull from individual organizations or departments is canceled out by checks and balances or equaled out by pull from other organizations. However as people and agencies had competing visions, conflict over resources and such things might get crazy. The usually boring game of whose budget and staffing will go up by 3%, whose will stay the same and who might (though it rarely happens) face cuts could turn into serious infighting, like 3rd world stuff. Also in a die off scenario the whole line of succession thing could fall apart pretty easily leaving the US without a clear leader.

The vision of massive cascade failures laid out in this series is compelling, disturbing and seemingly plausible. I was familiar with that concept but had never heard the phrase before.

In closing I enjoyed this book and recommend it to readers. It is definitely worth paying $5 for the electronic edition.

Friday, November 11, 2011

I Can Haz Economic Recovery



I heard on the news today that our economic recovery is at risk. I wondered what that guy was smoking and if it showed up on drug tests. Unemployment is around 10%, real inflation (I don’t know about you but I can’t magically factor out food, housing  and energy) is nipping away at purchasing power, home prices are down and the markets are painfully in the hole.

Granted the economy is a complicated thing so it is best judged by a broad variety of indicators. To be blunt I would say that finding any indicator that is positive would be difficult and even then it would be an exception proves the rule sort of situation.

In normal people’s lives unemployment, followed by inflation (maybe inflation would go after home prices as home prices trickle into a lot of things but I went inflation first because most people are not buying or selling a home at any given time), followed by home prices and then the market are probably the indicators that matter the most.

Come to think of it the only really positive thing I have heard anybody say about our economy in some time is that it is probably a buying opportunity for real estate and stocks.

The phrase “don’t piss down my back and tell me it is raining” comes to mind.