Batten Down the Hatches

A fellow that I read every day, George Ure, over at www.urbansurvival.com makes a very interesting comment today about changes coming in the near future and how he has prepared.

Let me give you a quick update on his worldview. He believes that there are some major events on the near horizon, which are going to affect our lives in the coming months. Since about 1996 he has been predicting the approach of a second great depression. Something that will make the first great depression look like the good old days. He sees this depression unfolding in a kind of slow motion way. In light of his viewpoint, he has been making preparations for such an event.

He and his wife have moved to a farm in Texas. They have been investing in gold since it was around $250 an ounce. You have too, right? They have a producing well, a years worth of food, an energy efficient home, and a complete workshop. They are both refugees from the corporate world. They want nothing to do with the cities at this point in time. Some would say that they are crazies, but today he makes a very interesting point about his preparations.

Look at the preparations that China is currently involved in. First, they are opening the world's largest gold mine. They are planning to open several large strategic oil bases for the storage of oil in the near future. They have entered into a trade agreement with Iran for 300,000 barrels of oil per day. (Based on this fact alone, it does not make sense for the US to attack Iran.) China is working on coal development. They are buying wheat from France and Australia. And they are developing strategic relationships with non-US industrial giants.

All of these preparations when lookedat together seem to present a picture of a country that is preparing for the worst. They are getting their ducks in line, working to make themselves as self-sufficient as possible. Now China is no dummy. They have been around longer than any western country. The Chinese culture tends to operate from a long-term prospective. Something that we here in this country have lost. Our country is only concerned with the next quarterly report and look out if you don't hit the numbers.

So why should we even consider making a least some preparations? Well, for starters if an entire country is making preparations, then it would seem to be the prudent thing to do. Secondly, we have just witnessed first hand how well our own country responded to disaster with the recent Katrina debacle. Do you really believe that your government will take care of you in a crisis? I don't. We had all better be ready to fend for ourselves for an extended period of time in the event of a disaster of any kind.

What kind of disaster? It could be anything. The avian flu will finally arrive here sometime this year and that could result in travel restrictions. If the flu virus mutates and becomes transmittable between humans, entire sections of the country could become quarantined. Another possibility is a major disruption in oil supplies. This could happen if there is an attack on Iran. After all, it would be pretty easy for Iran to shut down the Strait of Hormuz. If either of these events comes to pass, how will food and othe rcritical items be delivered? You realize that our grocery stores only have a three-day supply of food on the shelves, right?

Now you may read this and call me alarmist, but what is wrong with a little preparation? Do you really want to be in a situation that you have no control over and have to depend on a government that is so strapped for cash that they announced yesterday that they dipped into a government pension plan for funds to keep from exceeding their $8.2 trillion dollar spending cap? I know,what's a trillion dollars? A trillion here, a trillion there, and pretty soon you have some real money.

Yes, you pay taxes and you are entitled to all of the services that the government provides in the event of a crisis of some sort, but listen to me, we need to get out of this mindset that says that our government owes us something. We need to take responsibility for our own lives. Not just our investments but other areas as well. You will never regret being prepared. In fact, when the storm clouds start swirling about, you can rest assured that you are ready for whatever comes your way. You also just might be able to help someone who did not have the foresight to prepare as you did.