The Dollar’s Demise

on March 29, 2013 at 4:41 am
Posted In: Economy, Potential Threats

The Dollar’s Demise

dollar

The dollar has had a pretty good run lately as investors flee the chaos in Europe. How much longer will it last? After several years in the rumor mill, the BRICS countries have officially announced the formation of the BRICS bank. This is in keeping with the global trend for nations to slowly distance themselves from the dollar. The trend has accelerated in tandem with the Federal Reserve’s determination to devalue our currency at a record pace.

In a recent article from CNBC, Vladimir Putin is quoted on the BRICS Bank as saying “it must work on market principles.” Ronald Regan would be shocked to hear the Russians seeking a free market solution the the command and control style banking of America and Europe’s Central Banks. It is like we have stepped into a parallel universe. Well, we should not expect the strangeness to end there.

Brazil and China reached an agreement ahead of the BRICS summit to settle trade in there own currencies rather than the US Dollar. This move also solidifies the international  trend to move away from the dollar. China and Russia recently made a similar agreement. As more and more countries quit using the dollar to settle trade, the demand for US dollars will fall. This will occur at the same time that dollar supply is rocketing into the stratosphere at the rate of an extra $1 trillion dollars annually. It doesn’t take a PHD in economics to guess the effects of these two market forces working together.

If you have not paid attention to previous warning signs, these are worth heading. The combination of increased supply and reduced demand of dollars at the worst possible time will likely trigger outrageous inflation as the dollars value dwindles to nothing. I am not a financial adviser and only speak for myself, but I am securing a portion of my wealth in gold and silver. I use JM Bullion as I find them to offer the lowest price over spot of any company that I know.

In addition to the disturbing trend in the dollar, I expect the crisis in Cyprus to shake the confidence in all fiat currency as well as the banking system at large. Confidence is the glue that is keeping this ten mile high house of cards standing. Without it, the slightest breeze will bring it all down.

If you are new to prepping or would like to learn more, read our 7 Step Preparedness plan. It will help you build a foundation in readiness so you can be more prepared for everything from a tropical storm to the end of the world as we know it.

Happy Prepping

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A Law That May Affect the Survival of Millions of Americans

on March 27, 2013 at 4:59 am
Posted In: Constitution

A Law That May Affect the Survival of Millions of Americans

life

While the mainstream media is debating the finer points of the Supreme Court justices comments on the gay marriage debate, one state is actually doing something that our Constitution has tasked our government with doing. North Dakota’s governor signed a bill Tuesday that will make it illegal to abort a child with a detectable heart beat. This will make North Dakota’ abortion laws the toughest in the nation. The law will go into effect on August 1st. North Dakota will also vote on a law that defines life as beginning at conception.

It is hard to claim to be a free nation when we do not defend the liberty of all of our citizens. Unfortunately the liberty of the unborn has been pushed aside. They are not recognized by law as being human therefore they have no rights. If that sounds familiar, it is because our country has already had this argument before. Prior to the emancipation proclamation, blacks were not considered full humans and were therefore denied their God given right of freedom. It seems the only thing we learn from history is that we don’t learn from history.

I am familiar with the women’s right to do with her body what she will. But the most basic principle of liberty is that your liberty ends at the point that the next person’s liberty begins. One person’s convenience can not justify the execution of another. That is just not using common sense. Every liberal I talk to says they wouldn’t do it but they don’t want to tell someone else how to live their life.  So we can’t tell murderers they can’t kill people because that is overstepping our boundaries as a society? There is no difference.

Another people group were also not consider to be human not so long ago. Nazi Germany under Adolf Hitler decided Jews were not entitled to their God given right to live. Despite the fact that many people thought it was OK to try to eradicate an entire race, it was still wrong. Popular opinion does not dictate morality. The short movie “180” draws a parallel to to the Holocaust and the millions of lives that have been snuffed out through abortion.It is incredibly insightful. Please take time to watch it regardless of what side of the issue you stand.

180 The Movie. about 30 minutes

I hope you will share this movie with as many people as possible. If we claim to be just, we must stand up for those who have no voice.

I started this post off with talking about the Supreme Court debate on gay marriage. While I am a Christian and believe that marriage is defined by God as being between a man and a woman, I am also a Constitutionalist who thinks that the government has absolutely no business in my marriage or anyone else’s. My marriage is between my God, my wife and myself. Government has so overstepped its boundaries that we now need their judgement to tell us what we ought to think about everything. Government has no authority over marriage so it does not matter what they say. Quit concerning yourself with their opinion and stand up for something that matters.

Happy Prepping!

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What to Do After You Use Lethal Force

on March 24, 2013 at 11:16 pm
Posted In: Prepping

What to Do After You Use Lethal Force

tsp

Jack Spirko of The Survival Podcast talks with Massad Ayoob on Lethal Force Aftermath. This is a very important subject that many preppers know little about. Most of us will do what we have to do to protect our families and our lives, but what do you do after you have stopped the threat of the predator? Listen to the show and find out.

We live in an increasingly evil time where violence seems to be growing exponentially. As more and more people are out of work, those with low moral standards are turning to crime. We are also seeing cities whose budget have been slashed due to falling home prices. Those budget cuts are reducing the amount of police officers to fight the rising criminal elements. These economic trends are creating a perfect storm of violent crimes and break-ins.

These factors increase the chances that you or your family will have to use lethal force to defend yourselves. Nothing about that situation is good. You will be dealing with the stress of having been threatened or attacked. You will also be dealing with the stress of having just killed or injured another human. This will all be at the time you need to think the clearest. How your local law enforcement reacts will depend on several different factors including the state law. Each state has different laws about what a justifiable shooting is. Taking some time to think through these issues now will greatly benefit you if you are ever forced into the situation of having to use lethal force.

Jack does use the occasional four letter word, but he never uses G.D. or the F word. I wouldn’t listen to him if he did. If you are not familiar with the Survival Podcast, I would encourage you to check it out. It is chock full of common sense preparedness solutions. Jack produces a daily podcast that covers every conceivable area of prepping. He covers homesteading, back up power, prepping, guns, the economy, medical solutions and government. He has regular guests that specialize in different areas of prepping. All of his podcasts are available for free download so you can listen at home or take them on the go.

Click Here to Go to this episode of The Survival Podcast

Massad Ayoob

lethal
I hope you enjoyed the show and learned a lot. Being prepared for a situation like this is a very important aspect of preparedness. We don’t just prep for complete collapse, we also have to be prepared for everyday problems and the violence of living in our current society.

Happy prepping!

 

 

 

 

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Cyber Attack Cripples South Korea

on March 22, 2013 at 4:11 am
Posted In: Potential Threats

Cyber Attack Cripples South Korea

cyber

Wednesday, South Korea suffered a sever technological blow. Three of their major television networks and two of their major banks were attacked. The cyber attacks against the two banks  left some systems completely disabled for more than seven hours. The three television networks were unable to broadcast for several hours as well.

South Korea is no technologically illiterate culture. They were rated number 1 in Cisco’s broadband ranking with 100% broadband penetration. So if it can happen to them, it can happen to us. While 7 hours with out television or banks is far from the end of the world as we know it, it is only an example of what is possible.

Speculators suspect the attack was orchestrated by Pyong Yang, North Korea. This is a country so poor most people do not have electricity that may have been able to affect the infrastructure of a technological power house. If North Korea is capable of spreading such havoc on the most wired Country in the world, what could a more developed enemy do to the United States, who is ranked number 16 in broadband penetration?

The question is worth pondering. Once such an attack occurs, it is too late to make sure you have adequate provisions and cash to make it 7 hours without TV or 7 days with out electricity or 7 weeks with out the banking system.

On Mondays post we  looked at the unprecedented move by the IMF and ECB to attempt to persuade Cypress to seize a portion of all bank deposits as earnest money for a bailout of the failing State. The move was set to levy a bailout tax on depositor of 9.9% for those with more than 100,00 euros and 6.7% for those with deposits below 100,000 euros. While the Federal Reserves extorts an equivalent value though inflation annually, such an outright confiscation has not occurred in the modern free world. Simply the suggestion of the move has severely shaken global confidence in banks and fiat currencies alike.

Both cases reinforce our recommendation to keep some assets outside of the banking system. Keeping some cash in a well secured place like a safe is prudent. Of course if there is a currency revaluation or collapse, that may not do you much good. While we don’t give financial advice, we personally keep some level of our assets in gold and silver. I purchase my gold and silver through JM Bullion as they have the lowest price over spot of any company I know of.

If the banking system goes down, don’t expect food to stay on grocery shelves for long. Most groceries are completely paralyzed with out credit card transactions and electric cash registers. Most water companies have generator back up to keep them going for two to three days, but after that you may be on your own. Be sure to have at least a month’s worth of storable food on hand and some method of purifying water. To get prepared for whatever may come, read our 7 Step Survival Plan.

Happy Prepping!

 

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Staring Armageddon in the Face

on March 20, 2013 at 3:05 am
Posted In: Economy, Potential Threats

Staring Armageddon in the Face

armageddon

Former US Assistant Treasury Secretary Dr. Paul Craig Roberts served under the Reagan administration. He was often credited with co-founding Reaganomics. He has also worked as an editor and writer for both Business Week and The Wall Street Journal. So when someone with his resume sounds the alarm, it is a little  harder for the mainstream media to dismiss him as a wacko spreading paranoia.

Dr. Roberts wrote “Staring Armageddon In The Face But Hiding It With Official Lies” on his official website, PaulCraigRoberts.org last week. He points out in the article that unemployment numbers are sugar coated by the reduction in work force participation. As job seekers become discouraged after long periods of unemployment, they quit looking and are no longer counted as unemployed in the official U3 unemployment numbers.

He continues to point out the manipulative reporting in inflation numbers as well. If our government were to use the same matrix to obtain the CPI as they used in 1990, the official inflation rate would be 9.2% rather than the 1.6% reported.

He concludes the article with an explanation of gold markets by central bankers. He writes;

“It is important to the Federal Reserve’s low interest rate policy to suppress the bullion price. If the prices of gold and silver continue to rise relative to the US dollar, the Fed cannot keep the prices of bonds high and interest rates low. If the dollar is widely perceived to be declining in value in relation to gold, the price of dollar-denominated assets will also decline, including bonds. If the dollar loses value, the Fed loses control over interest rates, and the US financial bubble pops, with hell to pay.”

To forestall Armageddon, the Fed and its dependent banks cap the price of gold.

The Fed’s fix is temporary, and as the Fed continues to create ever more dollars, the price of gold will eventually escape the Fed’s control as will interest rates and inflation.

The Fed has produced a perfect storm that could consume the US and perhaps the entire Western world.”

I hope you will take the time to read the full article. It is an eye opening piece written by someone familiar with the inner workings of the beast in Washington.

No one can say for sure when the collapse will come, but there is a great consensus that he are headed for a rough patch. Markets breath confidence just as you and I breath air. When that confidence begins to erode, markets will suffocate. Once they start to gasp for breath, it will be too late to prepare. Do what you can now to hedge yourself for the coming storm.

If you are new to prepping or are ready to get serious about it, read our 7 Step Survival Plan. You will better prepared for a power outage, financial collapse or anything in between.

Happy Prepping!

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Cyprus Bail Out Sparks Bank Run

on March 18, 2013 at 12:48 am
Posted In: Economy, Potential Threats

Cyprus Bail Out Sparks Bank Run

bank run

Cyprus Bail Out to Cost Savers Billions of Euros

Happy days are here again! The Dow hit a new high last week and the storm clouds seem to have disappeared. Not so in Cyprus. The Island near Greece  has been struggling to stay afloat. Euro Zone finance ministers are finished with throwing good money after bad. They are demanding that Cypriots have some skin in the game if they are going to pony up capital to bail the country out. Cypriot President Nicos Anastasiades issued a stern caveat if the bail out failed. He stated that Cyprus’ two largest banks would likely fail without the assistance from the other European Central Bank members.

The terms agreed upon for the bail out are that bank deposits have a onetime tax levied against them at the rate of 9.9% for deposits of over 100,000 Euros and 6.7% for those under the 100,000 Euro threshold. The levy is set to take effect on Tuesday morning after a bank holiday on Monday. As soon as the news leaked out, Cypriots ran to ATMs to withdraw as much cash as possible. ATMs were drained within hours of the run.

Cyprus Bail Out Bank Run

It Could Never Happen Here

We are fortunate to live in America where nothing like that could ever happen. We can continue to enjoy a soaring stock market despite the economic pain felt by the rest of the globe. Well, better them than us, right? I just feel so bad for the people of Cyprus being taxed out of their savings by the government to bail out banks and bureaucracies. It is too bad the government of Cypress could not have come up with a method of taxing Cypriots with out them knowing. Perhaps if they had their own currency instead of Euros, they could have had their own central bank print the money out of thin air. In fact, this magical bank could have printed the 9.9% that they needed for the bail out. Sure, it would have devalued the purchasing power of those accounts by the exact same amount as the tax levy, but the depositors wouldn’t have know it. Ignorance is bliss.

It Already Has

As I write this, it sounds like a familiar scheme. Where have I heard this before? Oh! That’s right! The Federal Reserve! They have promised to print $85 billion a month or $1.05 trillion a year through at least 2015. With our current M2 money supply at roughly $10 trillion, that devalues the currency by 10% this year, 10% next year, and 10% the year after that. Wow! I should move my accounts to  Cyprus. Compared to the  30% stealth tax over the next 3 years by the Fed, 9.9% doesn’t seem so bad.

So why don’t we see the bank runs like Cyprus is experiencing right now? Because ignorance is bliss. Americans are too caught up in American Idol and sports to realize they are being fleeced. Not to say they always will be. More and more Americans are waking up to the fact that their currency is being devalued at a phenomenal rate. We may someday experience a run on the banks like we are seeing in Cyprus. That is why we recommend keeping some cash in a well secured place like a home safe that you can access quickly. Inflation is the addition of new money to the money supply. Price increases are the eventuality of that increase in the money supply. To protect ourselves from the constant increase in the money supply,  we keep a portion of our assets in gold and silver. I purchase my gold and silver from JM Bullion as I have found they offer the lowest over spot price for bullion. Prepper Recon readers get $5 off all orders of $300 or more from JM Bullion with the coupon code PR5.

If you are new to prepping or would like to kick it up a notch, read out 7 Step Survival Plan. It will help you to be better prepared for everything from a hurricane to a complete currency collapse.

Happy Prepping!

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Senator Rand Paul – Filling the Void

on March 15, 2013 at 4:20 am
Posted In: Constitution

Senator Rand Paul – Filling the Void

Rand

 

I realize that this site is “Prepper Recon” and not “Politics Recon”, but politics will be among the greatest contributors of the coming collapse. I see no hope of avoiding the eventual meltdown, but there are always opportunities to mitigate the effects. Here in Florida, when we get a Hurricane warning, we know there is nothing we can do to prevent the coming storm, but there is much to be done in preparing to weather the elements.

Perhaps the biggest threat of all is the threat of losing our freedom. When the crisis comes, the Liberals and the Neo-Conservatives will use the crisis as an excuse to eliminate our remaining freedoms. There has never been a time in history that our Constitution has been in such a volatile position because of the people we have allowed to be in power.

We need statesmen that will champion the cause of freedom. We need leaders that can be the voice of our founding principles when the mainstream political agenda from both sides of the aisle tries to drown that voice out. For decades, we have had Congressman Ron Paul to keep that spark of freedom and independence alive. He has now retired from Washington and left a gaping whole in our capitol. His son Senator Rand Paul of Kentucky has stepped up to the plate and is now carrying the torch of freedom.

In this interview with Peter Schiff, Senator Rand Paul speaks about his battle against not only the liberals, but also against the Neo-Con Republicans. The Neo-Conservatives have hijacked the Republican Party and taken it far from what it was when the Jeffersonians were first called Republicans. It had traditionally represented small government, individual liberty and a non-interventionist stance on foreign policy. We have lost those values but that doesn’t necessarily mean we need a new party. We need to fight  to take our party back.

Senator Rand Paul on Freedom

Senator Paul talks about urgency to fight for freedom. He talks about the document that came out of the Bureau of Justice that described potential domestic terrorist as anyone who had more that 7 days worth of stored food, anyone with weatherized ammunition and people who like to pay in cash. Does any of that sound familiar? If hits close to home, it is time to start paying attention to politics. Don’t think prepping and politics aren’t closely intertwined.

Stand up, speak out and keep prepping!

 

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Second Amendment Battle

on March 13, 2013 at 4:06 am
Posted In: Constitution

Second Amendment Battle Rages On

mulon

 

Many Americans have drawn a line in the sand and said we will be bullied out of our Constitutional freedoms no further. Threats from the White House have inspired many to double down on their ammunition and firearm holdings. Manufacturers of high capacity magazines and battle rifles have increased production to full capacity. The still are far from being able to meet the demand for those products. Gun store owners around America have labeled Barack Obama as salesman of the year.

New York lost a major battle against freedom when Governor Cuomo signed a law that banned magazines with more than a 7 round capacity. In response to this horrible assault on the freedom of law abiding citizens, several gun manufacturers and gun accessories manufacturers have signed a pledge vowing not to sell to government agencies in state that do not support the second amendment in the manner that our forefathers intended. The pledge has become known as the Police Loophole. The pledge gets its name from the ability of law enforcement to obtain weapons that are illegal in their jurisdiction. By not selling to agencies in those areas, the companies are closing the police loophole.

Here is a list of companies that have signed the police loophole pledge so far. Also given is information about how long the companies have supported the project.

Barrett  Long Standing 
AmmoClip  Long Standing 
Extreme Firepower Inc, LLC  Long Standing 
Cheaper Than Dirt  Long Standing 
MidwayUSA  Long Standing 
Dead Bang Guns  Long Standing 
Delmarva Shooting Supply  Long Standing 
King Armory MFG LLC  Long Standing 
West Desert Tactical  Long Standing 
Able Company Sports LLC  Long Standing 
Gadsden Guns, Inc.  Long Standing 
III Arms Company  Long Standing 
Badlands Arsenal  Long Standing 
Ammodump International LLC  Long Standing 
Armtac  Long Standing 
Lono Group Ltd  Long Standing  Currently applies to New York State only.
Big Sky Ammunition  2013-01-01 
Tier One Arms  2013-01-15 
Old Grouch’s Military Surplus  2013-01-15 
Predator Intelligence  2013-02-01 
York Arms  2013-02-01  Currently applies to New York State only
Exile Machine  2013-02-01 
LaRue Tactical  2013-02-08 
Southwest Shooting Authority  2013-02-09 
Olympic Arms  2013-02-12  Currently applies to New York State only
Templar Custom  2013-02-13  Currently applies to New York State only
Shade’s Landing Inc.  2013-02-14 
Southern Appalachian Arms  2013-02-15 
Bullwater Enterprises LLC  2013-02-16  dba A & T Firearms
West Fork Armory  2013-02-16  Currently applies to New York State only
Iron Goat Guns  2013-02-16 
Trident Armory  2013-02-17 
Smith Enterprise, Inc  2013-02-17  Currently applies to New York State only
Alex Arms  2013-02-17 
OFA Tactical  2013-02-17 
Snake Hound Machine  2013-02-17 
Spike’s Tactical  2013-02-18 
West Michigan Tactical  2013-02-18 
Evolution Weaponry  2013-02-18 
Quality Arms Idaho  2013-02-19 
Liberty Suppressors  2013-02-19  Currently applies to New York State only
J&T Family of Companies  2013-02-19  J&T Distributing, Ace Limited, DoubleStar Corp., DoubleStar Training Academy
American Spirit Arms  2013-02-19 
Primary Weapons Systems  2013-02-19 
Tactical Solutions  2013-02-20  Currently applies to New York State only
Head Down Products, LLC  2013-02-20  Currently applies to New York State only
J&G Sales, Ltd  2013-02-20 
Bravo Company USA  2013-02-20 
Kiss Tactical  2013-02-20 
NEMO Arms, Inc  2013-02-21  Currently applies to New York State only
Top Gun Supply  2013-02-21 
Red Jacket Firearms  2013-02-21 
Rock River Arms  2013-02-21  Currently applies to New York State only
Crusader Weaponry  2013-02-21 
Antares Arms  2013-02-21 
Badger Peak  2013-02-22 
Controlled Chaos Arms  2013-02-22 
Big Horn Armory  2013-02-22 
One Source Tactical  2013-02-22 
CMMG  2013-02-22 
SRT Arms  2013-02-22 
Norton Firearms  2013-02-22 
Umlaut Industries LLC  2013-02-22 
Warbirds Custom Guns  2013-02-22 
JABTAC  2013-02-22 
Stoner Arms  2013-02-22 
3 Rivers Precision LLC  2013-02-22 
2A Firearms  2013-02-22 
Lanco Tactical LLC  2013-02-22 
Thunder Beast Arms Corp  2013-02-22 
2A Armament  2013-02-22 
Rocky Top Tactical  2013-02-22 
Semper Fi Arms  2013-02-22 
Franklin Armory  2013-02-22 
Reaper Tactical LLC  2013-02-22 
Allegiance Ammunition  2013-02-22 
Lauer Custom Weaponry  2013-02-22 
Predator Tactical  2013-02-23 
Rhino Arms LLC  2013-02-23 
OJ’s Gun Shop  2013-02-23 
OCS Guns  2013-02-23 
Progressive Micro Devices  2013-02-23 
Citizen Arms  2013-02-23 
Next Step Tactical, Inc  2013-02-23 
556 Tactical LLC  2013-02-23 
Csspecs Magazines  2013-02-24 
MFI  2013-02-24 
Gwacs Armory LLC  2013-02-24 
Huntertown Arms  2013-02-24 
Daniel Byer FFL  2013-02-24 
Critical Survival LLC  2013-02-24 
Boise Tactical LLC  2013-02-24 
Dogleg Arms  2013-02-24 
Victory Defense  2013-02-24 
Umbrella Corporation Research Group  2013-02-25 
Precision Firearms  2013-02-25 
West Acre Sporting Goods  2013-02-25 
Allstar Tactical  2013-02-25 
Alpine Guns  2013-02-25 
3R1 Technologies  2013-02-25 
Bison Armory  2013-02-25 
Black Mountain Survival  2013-02-25 
The Tactical Toolbox  2013-02-25 
JCW Industries  2013-02-25 
Volquartsen Custom  2013-02-25 
Paige Firearms  2013-02-25 
Oregon Precision Arms LLC  2013-02-25 
Jeremy Kupper’s Gunsmithing  2013-02-26 
Truly Tactical  2013-02-26 
TJ General Store  2013-02-27  Currently applies to New York State only
DownRange Defense, LLC  2013-02-27 
Hansohn Brothers  2013-02-27 
GunUp  2013-02-27 
Deep South Ammo  2013-02-27 
RL Hydro-Graphix  2013-02-27 
Competition Machine Inc  2013-02-27 
Wrigley Ammunition  2013-02-27 
Element Arms  2013-02-27 
Midwest Industries, Inc  2013-02-28  Currently applies to Milwaukee
Wilson Combat  2013-02-28 
RRC Firearms, LLC  2013-02-28 
Bison Tactical  2013-02-28 
Midwest PX LLC  2013-03-01 
Vltor  2013-03-01 
Magpul  2013-03-01 
Allied Armory  2013-03-01 
NFAGear, LLC  2013-03-01 
Wolfpit Tactical  2013-03-02 
Aero Precision  2013-03-04 
C. and H. Arms  2013-03-10 
Hawkstactical.com  2013-03-10 
Sarco, Inc  2013-03-10  Currently applies to New York State only
Battle Creek Supply  2013-03-10 
Wolverine Technologies, LLC  2013-03-11 
BlackHat  2013-03-12 
Lone Star Shooting Supply  2013-03-12 

Total Companies: 136

To those companies, thank you for putting principles before profit. We salute your act of patriotism.

Happy Prepping!

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