Jim’s Daily Rant. Personal Financial Action Plan During Banking System Collapse.
The purpose of this Rant is so you can share it with friends just awakening to a possible banking collapse.
Facts and Assumptions:
1. The Banks are in trouble globally in a manner that this is the first time in history that this has happened.
2. Janet Yellen, The U.S. Treasurer, has said the U. S. “may” cover some uninsured depositors and backstop all western banks.
3. The FDIC, a private corporation, is always on the verge of insolvency. If lots of runs occur they are wiped out.
4. If the US prints Trillions of funny money, we will be in death hyperinflation. It will collapse the Dollar between one month and six months, based on prior history of collapsed currencies that died from hyperinflation. Hyperinflation is defined as ½ % per month. We are currently at 2% per month.
5. Hyperinflation and/or bank runs are both caused by lack of confidence in a system (the banks or money). It is psychological, not financial. We are near the point in losing all confidence in our government and Currency.
6. Either one of the above can collapse the economy with a few days.
7. The big banks have been illegally manipulating the gold & silver prices down drastically for years so people would ignore investing in them. They are on the verge of loosing control of manipulating any longer.
8. If the banks fail the Dollar collapses with them. All paper contracts require dollars to be completed. If the dollar collapses, Force Majuere comes into force, legally recognizing those contracts are impossible to complete, therefore they are voided.
If all the banks fail, there is no one you can continue to make payments to. There will be no one to sue you.
9. If the economy continues to dive, the courts may take a year to hear Home Repossession cases.
But in a good environment, it takes at least 3 months for a homeowner to miss enough payments to cause a repossession action. Then it takes about another two months to get a court date.
The Financial Plan:
Get out of all paper investments, be they stocks, CDs, bank Accounts, pension plans (borrow against them) or annuities.
Invest in precious metals (Gold or silver). Silver is best and cheapest. You can get a US Silver Eagle (Dollar) or Buffalo Rounds (cheaper) for about $30 each.
This writer expects their price to skyrocket to around $3,000 each.
Consider skipping a couple of house payments or credit card payments. Use the cash savings to buy silver. In a few months sell the silver and pay off the back payments, if you want. Note: This must be done immediately before the crowd gets what is left available.
The Food Storage Plan.
We have been Preppers for a long time and are prepared. But this week I added for another 5 adults to cover them for about three months. Note that I already had 50 lb. bags of rice for them.
My reasoning to do so is I am certain that we are death hyperinflation now that the banks are being bailed out. A food cost of today of $100 may be equivalent to $300 in three months. So even if the economy does not collapse, I won’t be embarrassed if company sees the spare room (in our bathroom) with food boxes stacked against one wall.
I purchased foods that we eat regularly, with the exception of Bristol canned hams. But they are only $4 each.
See attached food Inventory list.
P. S. Lots of spaghetti noodles were stored in addition to the rice.