Why You Might As Well Be Painting A Giant Bulls-Eye On Your Bank Account

Authored by Simon Black via SovereignMan.com,

Vegetarians be forewarned… you won’t like what follows.

We slaughtered a pig yesterday at the farm. I have two freezers full of pork now, and countless strips of bacon curing in the kitchen.

I’ve written about this before– out here at the farm I’m able to organically produce almost everything that I eat… meat, eggs, rice, nuts, and just about every kind of fruit and vegetable imaginable. A lot of it gets canned and stored.

We even grow wheat which we turn into organic flour, plus oats and all sorts of other grains.

As I’ve described in the past, this is a pretty powerful feeling. I know that, no matter what happens in the world, I’ll always have a source of food.

And even if it’s all rainbows and buttercups from here on out, I get to eat clean, organic food. There’s hardly any downside.

Invariably as I meet people throughout my travels around the world, I’m always asked why I spend so much time in Chile.

I usually tell them about my business ventures here and that I founded a company that’s rapidly becoming one of the largest blueberry producers in the world.

But when I talk about the farm and growing my own food, people often respond with furrowed eyebrows and a hint of derision– “Oh, so you’re, like, preparing for the end of the world…”

It’s as if embracing a little bit of independence and self-reliance requires paranoid delusion and chronic pessimism.

Fortunately I’m no longer in middle school, so my decisions aren’t based on what the cool kids might think.

In truth I’m wildly optimistic about the future.

Yes, there will come a time when bankrupt western governments will have to suffer the consequences of their reckless financial decisions.

And if history and human nature are any guides, there will also likely be more war… whether it’s conventional, cyber, or financial.

Financial markets will spasm and crash. Then soar to new highs. Then crash again. And forever continue this boom/bust cycle.

But despite these challenges, our species has unprecedented access to technology and opportunities that were literally inconceivable just a few decades ago.

The fact that you’re even reading this was completely unimaginable when I was a kid growing up in the early 1980s.

So, yeah, plenty of challenges before us. But the future is bright for anyone with the common sense to acknowledge these risks and the willingness to take basic steps to reduce their exposure.

It’s not about fear or paranoia. Normal, intelligent, rational people have a Plan B, especially when certain risks are so obvious.

Example- if you happen to be living in the most litigation-prone, lawyered-up country that has ever existed in the history of the world… a place where frivolous lawsuits abound and horrendous penalties are the norm… WHY ON EARTH would you hold 100% of your assets, income, and livelihood there?

You might as well paint a giant bulls-eye on your bank account.

Similarly, if you’re living in a country where the government, by its own financial reports, admits that it is flat freaking broke, why put yourself in a position where they can so easily pillage your savings?

If your country’s pension fund (i.e. Social Security) announces that it is running out of money, isn’t it just plain old common sense to start independently saving for your own retirement, outside of that broken pension system?

If there’s a Category 5 hurricane heading anywhere near your location, doesn’t it make sense to have a few days of nonperishable food and water… just in case?

For that matter, doesn’t it make sense to have a bit of food and water on hand even without a hurricane in the neighborhood?

It’s hard to imagine you’ll worse off for having a small supply of water in the basement.

Maybe you never need it. Big deal.

But if the day comes that you ever do need it, it will be too late to go down to the grocery store and pick some up.

This is the hallmark of a great Plan B. These steps are utterly simple. Cheap. Sometimes even free. And have absolutely zero downside.

But should you ever need it, these tiny insurance policies can make a world of difference.

That’s not fear or paranoia. It’s just smart.

Do you have a Plan B?

If you live, work, bank, invest, own a business, and hold your assets all in just one country, you are putting all of your eggs in one basket. You’re making a high-stakes bet that everything is going to be ok in that one country — forever. All it would take is for the economy to tank, a natural disaster to hit, or the political system to go into turmoil and you could lose everything—your money, your assets, and possibly even your freedom.


Mr. Pain Wed, 09/06/2017 - 20:52 Permalink

"You’re making a high-stakes bet that everything is going to be ok in that one country — forever. All it would take is for the economy to tank, a natural disaster to hit, or the political system to go into turmoil and you could lose everything—your money, your assets, and possibly even your freedom." Then fuck it. Its over. Be graceful and fucking die! At my age I no longer give a fuck!

J S Bach Mr. Pain Wed, 09/06/2017 - 20:56 Permalink

Keep as little fiat currency in your bank account as possible... only enough to pay your bills.  Get everything else converted to some sort of physical/tradable asset.  And I wouldn't recommend bitcoin as a safe haven.  You're better off going to Vegas and putting it all on the roullette wheel - black or red (I prefer the colors silver and gold).

In reply to by Mr. Pain

scintillator9 J S Bach Wed, 09/06/2017 - 21:15 Permalink

Speaking from experience, DO NOT put it all on Black or Red, for there is also that GREEN 0 and 00 which skews the odds in the house's favor.My friend and I were playing the odds on the table with that until we got hit with 00 Green.So, we foolishly figured what are the odds of that happening again.Fortune was rather cruel to us that night, for it hit on green AGAIN.We looked at each other, then at out now depleted pile of chips, and walked away.At least the drinks were "free". 

In reply to by J S Bach

Dwain Dibley J S Bach Wed, 09/06/2017 - 22:39 Permalink

News Flash - YOU DON'T HAVE ANY "FIAT" IN YOUR BANK ACCOUNT, NOBODY DOES.Deposit accounts are nothing more than accounting records of how much "fiat" the bank owes to each deposit account holder, they are all a record of bank debt, there is no "money" or "fiat" in any of them.  The only "fiat" the banks have is in their vaults, which is about $74-Billion in total, or about 3% of total demand deposits held.MONEY

In reply to by J S Bach

tmosley Buddha 71 Wed, 09/06/2017 - 23:06 Permalink

No electricity also means that gold is worthless.If all you care about is the shit hitting the fan, build a long term fallout shelter with a thousand years worth of diesel to run it. Fact is that TSHTF doesn't last long, and usually you can just WALK out of it if you don't care about your physical possessions (IE gold and silver). When you get somewhere else, just get access to the internet and your money is waiting for you, worth far more than it was a year before.

In reply to by Buddha 71

Nostradumbass tmosley Wed, 09/06/2017 - 23:38 Permalink

No electricity also means that gold is worthless. TIMELINE - Gold's history as a currency standardReuters Staff9 MIN READGold bars are pictured at the Ginza Tanaka store in Tokyo October 23, 2009. REUTERS/Issei Kato/FilesReuters - Leading economies should consider readopting a modified global gold standard to guide currency movements, said World Bank president Robert Zoellick.Following is a timeline on gold’s use as medium of exchange.2010: Zoellick proposes return to a gold standard, arguing that a replacement is needed for the current system of floating exchange rates that has been in place since 1971 breakdown of the post-war Bretton Woods System, in which the dollar and other currencies were tied to the value of gold.2002: The Gold Institute Board of Directors votes to dissolve.1999: The euro, a pan-European currency is introduced, backed by a new European Central Bank holding 15 percent of its reserves in gold.1990: United States became the world’s second largest gold producing nation1987: World stock markets suffer sharp reversal on October 19; volatile investment markets increase gold trading activity. The World Gold Council is established to sustain and develop demand from endusers of gold1981: Treasury Secretary Donald Regan announces the formation of a Gold Commission “to access and make recommendations with regard to the policy of the U.S. government concerning the role of gold in domestic and international monetary systems”1980: Gold reaches intra-day historic high of $870 on January 21 in New York and by year end closes at $591.1978: The weak U.S. dollar propels interest in gold. By act of Congress, the U.S. abolishes the official price of gold. Member governments are free to buy and sell gold in private markets.1975: Trading in gold for future delivery begins on New York’s Commodity Exchange and on Chicago’s International Monetary Market and Board of Trade.1974: Americans permitted to own gold, other than just jewellery.1973: On February 13, the United States, devalues the dollar again and announces it will raise the official dollar price of gold to $42.22 per fine troy ounce. Dollar-selling continues and finally all currencies are allowed to “float” freely without regard to the price of gold.By June, the market price for gold in London has risen to more than $120 per ounce. Japan lifts prohibition on imports of gold.1971: “Nixon Shock” U.S. President Nixon ends dollar’s link to gold established under Bretton Woods Agreement. Dollar became the sole backing of currencies and a reserve currency for the member states.On Aug 15, U.S. terminates all gold sales or purchases, thereby ending conversion of foreign officially held dollars into gold.In December, under the Smithsonian Agreement signed in Washington, U.S. devalues the dollar by raising the official dollar price of gold to $38 per fine troy ounce.1968: London Gold Market closes for two weeks after a sudden surge in the demand for gold. The governors in the gold pool announce they will no longer buy and sell gold in the private market.A two-tier pricing system emerges: official transactions between monetary authorities are to be conducted at an unchanged price of $35 per fine troy ounce and other transactions are to be conducted at a fluctuating free-market price.U.S. Mint terminates policy of buying gold from and selling gold to those licensed by the U.S. Treasury to hold gold.Gold backing of Federal Reserve Notes is eliminated.1961: Americans are forbidden to own gold abroad as well as at home.The central banks of Belgium, France, Italy, the Netherlands, Switzerland, West Germany, the United Kingdom and the United States form the London Gold Pool and agree to buy and sell at $35.0875 per ounce.1954: London gold market, closed early in World War Two, reopens.1945: Gold backing of Federal Reserve Notes is reduced by 25.5 percent.1944: The Bretton Woods agreement, ratified by the U.S. Congress in 1945, establishes a gold exchange standard and two new international organizations, the International Monetary Fund (IMF) and the World Bank.The new standard involves setting par values for currencies in terms of gold and the obligation of member countries to convert foreign official holdings of their currencies into gold at those par values.The system was set up to help rebuild the international economy as World War Two still raged. The main features were for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value (plus or minus one percent in terms of gold).1942: President Franklin D. Roosevelt issues a presidential edict closing all U.S. gold mines.1934: The Gold Reserve Act of 1934 gives the government the permanent title to all monetary gold and halts the minting of gold coins.It also allows gold certificates to be held only by the Federal Reserve Banks, putting the U.S. on a limited gold bullion standard, under which redemption in gold is restricted to dollars held by foreign central banks and licensed private users.President Roosevelt devalues the dollar by increasing the price of gold to $35 per ounce.1933: To alleviate the banking panic, President Franklin D. Roosevelt prohibits private holdings of all gold coins, bullion and certificates.1931: Great Britain abandons the gold bullion standard.1929: Great Depression, Wall Street Crash.1925: Great Britain returns to a gold bullion standard, with currency redeemable for 400-ounce gold bullion bars but no circulation of gold coins.1914-1919: A strict gold standard is suspended by several countries, including United States and Great Britain during World War I.1913: Federal Reserve Act specifies that Federal Reserve Notes be backed 40 percent in gold.1900: The Gold Standard Act places the United States officially on the gold standard, committing the United States to maintain a fixed exchange rate in relation to other countries on the gold standard. This lasted till 1919, when World War I forced both the United States and Britain to suspend it.1873: As a result of ongoing revisions to minting and coinage laws, silver is eliminated as a standard of value and the United States goes on an unofficial gold standard.1848: California Gold Rush triggered when John Marshall found flakes of gold while building a sawmill.1837: The weight of gold in the U.S. dollar is lessened to 23.22 grains so that one fine troy ounce of gold is valued at $20.67.1817: Great Britain introduces the sovereign, a small gold coin valued at one pound sterling1816: Great Britain officially ties the pound to a specific quantity of gold at which British currency is convertible.1804-1828: North Carolina supplied all the domestic gold coined by the U.S Mint in Philadelphia for currency.1803: Gold is discovered at Little Meadow Creek, North Carolina, sparking the first U.S gold rush.1799: A 17-pound gold nugget is found in Cabarrus County, North Carolina, the first documented gold discovery in United States.1792: The Coinage Act places the United States on a bimetallic silver-gold standard and defines the U.S. dollar as equivalent to 24.75 grains of fine gold and 371.25 grains of fine silver.1787: First U.S gold coin is struck by Ephraim Brasher, a goldsmith1700: Gold was discovered in Brazil, which became the largest producer of gold by 1720, with nearly two-thirds of the world’s output.Isaac Newton, as Master of the Mint, fixes the price of gold in England at 84 shillings, 11.5 pence per troy ounce. The Royal Commission, comprising of Newton, John Locke and Lord Somers recommends a recall of all old currency, issuance of new specie with gold/silver ratio of 16-to-1.The gold price thus established for over 200 years1377: England shifts to a monetary system based on gold and silver1284: England issues its first major gold coin, the florin. This was followed shortly by the noble and later by the angel, crown and guinea.1284: Venice introduces the gold ducat, which soon becomes the most popular coin in the world and remains so for more than five centuries.1066 A.D: With the Norman Conquest, a metallic currency standard is finally re-established in England with the introduction of a system of pounds, shillings and pence. The pound is literally a pound of sterling silver.50 BCE: Romans began issuing a gold coin called the aureus.560: The first coins made purely from gold are minted in Lydia, a kingdom of Asia Minor.1091: Little squares of gold are legalized in China as a form of money1500: Gold became recognized as a standard medium of exchange for international trade as the immense gold-bearing regions of Nubia made Egypt a wealthy nation. Ancient Egypt left behind a rich legacy of gold.Sources: National Mining Association and World Gold CouncilherehereCompiled by Lavrina LeeOur Standards:The Thomson Reuters Trust Principles.

In reply to by tmosley