This post will focus on shopping, but first, a brief overview of American agriculture:
Crop failure in the Dust Bowl (more on that in another post) is a common image of Great Depression hardship, but despite this regional crisis, America was overproducing food during the Depression to the point of economic disaster. There are several books that talk about this phenomenon including Harvey Levenstein’s Paradox of Plenty. This overproduction stemmed largely from World War I, when farmers responded to a massive increase in demand for agricultural goods by ramping up production. Future president Hoover headed up the Federal task force responsible for helping feed Europe. After the war, farmers kept producing at wartime levels even as demand dropped, resulting in a glut of nearly worthless crops. The government tried to address this by buying up excess crops to stabilize the market, but farmers just kept growing at wartime levels and selling to the government. This paradox — too much food and starvation at the same time — is the central topic of Levenstein’s book. People struggled to feed themselves during the Great Depression not because there wasn’t enough food, but because they were unemployed and couldn’t afford to buy the plentiful food. There are some exceptions, such as where regional issues caused food shortages, but poverty was the biggest factor in food insecurity.
I should note that getting food differed significantly depending on where you were in the country — food production and distribution was far less standardized than it is today. The rural/urban divide is one of the most significant areas of difference. You might have noticed that most of the recipes I’ve written about use primarily shelf-stable dry ingredients. If you didn’t live in a rural location or near a distribution hub (like Omaha for meat) reliably acquiring fresh ingredients could be costly and difficult. If you didn’t live on a farm, chances were pretty good that you were getting meat, produce, and dried goods from three different places. Supermarkets were in existence (Piggly Wiggly opened in Tennessee in 1916), but clusters of smaller independent stores and vendors were more common. In Putting Meat on the American Table, Roger Horowitz discusses how these general stores, butchers, and pushcart vendors would frequently operate in close proximity.
Small regional chains of grocers existed, including some that are still around today like Kroger. Despite anti-chain legislation (especially at the state and local level) aimed at protecting small businesses, it was mostly chain stores and supermarkets that survived the economic uncertainty of the Depression. Counter service –where an employee would fetch items from a list — was still common. We think of curbside pickup and grocery deliveries as something new, but they were much more common than self-service. Speaking of food delivery services, milk delivery was still common during the Great Depression, especially in urban areas. Animal-based fats and proteins were a major part of the American diet (dietitians thought animal-derived nutrients were healthier than plant-based nutrients) during the Great Depression even if people were forced to find ways to stretch how far they went.
There are almost too many catastrophic possibilities for the end of the world as we know it these days. It’s almost creating an inoculation effect on the public and supporting normalcy bias.
Everything from giant meteors immolating most of the population, to a new and especially violent nation destroying civil war, fomented by billionaire totalitarians manipulating us all against each, other to burn our country down to the ground in anarchy, if they can’t continue their tyrannical agenda.
But most of these are not an imminent threat yet. What I’m talking about is the real time super SHTF world class catastrophes like war, weather, bio-pandemics and terrorism.
Things that are always hanging over us like a hellish cloud that can release its deadly hail storm at any minute.
Here are the ones hitting critical mass. Brace yourselves…
1. Strike on North Korea and the Potential Start of WWIII
In case you haven’t been paying attention, North Korea has been purposefully expanding its effort as an irascible world pestilence since the new Trump Administration arrived.
But history has shown North Korea to always have more ‘bark’ than ‘bite’, and nothing has ever come of it. In fact most people think it’s just their cultural mentality to threaten to nuke the U.S..
It’s the way they do diplomacy. Negotiation shave always failed because right up front the fact is stated that nothing The West wants them to do will be negotiated in talks. So there never will be any talks. This has been going on for decades. So what’s the big deal with all this now?
After all, in a military conflict with the U.S., NK would be like ant’s motor scooter getting run over by a 400 horse power Dodge Ram Charger!
We wouldn’t even need tactical nukes to reduce this insolent rogue country and its Maniac-in-Chief into a bomb crater pockmarked replica of the dark side of the moon? So why not Just continue the status quo and ignore NK altogether?
And maybe release their sanctions on high fructose corn syrup saturated foods, and maybe the tubby Corn flakes bowl haircut tyrant will die of morbid obesity, and be replaced by a less malevolent leadership?
Because this time it’s insanely different. NK has reached a threshold that emboldens him to new heights of deadly hubris. He is building intercontinental nuclear warhead ballistic missiles, and flaunting them in our faces, and then overtly threatening to nuke us with them!
One of Trump’s serious campaign promises was a “vow” to never let North Korea become a military nuclear power able to hit our mainland with nuclear weapons. If that ‘vow’ is not honored, there’s no chance for a second term for Trump and no future for his party.
So when Kim Jong-Un pulled his in-your-American-face missile test stunt last 4th of July, the final tune up of the Pentagon plans to strike North Korea were in play.
Trump doesn’t really have to justify a strike to anybody. You won’t find too many who’ll disagree with the notion that nobody wants to make the mistake made by Germany in the 1930’s by ignoring a similar mad dictator by the name of Hitler, who was basically ignored until it was too late, and he eventually amassed a military powerful enough to cause WWII, which destroyed entire countries!
In the past few weeks, Trump and his advisors carefully orchestrated world opinion to make it appear that we are not aggressors, only peaceful defenders of our land from a severely cracked nut job. Trump’s media courtship of the Chinese to try to persuade North Korea to stop their long range weapons development had everything but the engagement ring on bended knee.
The Chinese, however, threw it back on the U.S. saying that it’s our problem. Beijing confirmed that Kim Jong-Un doesn’t care about threats of military action from the U.S. or any increase in sanctions. He simply will NOT give up his nuclear missile efforts. Period. For Any reason.
Then Trump appealed to other UN world leadership to re-unite against NK for serious pressure and collective sanctions. This kind of obligatory politically correct groveling received no real patronage, and Trump exited the scene of international political ballroom dancing with the ‘anticipated’, but necessary world viewpoint that he did his best to find a peaceful alternative.
But nobody seems to care. So if “it’s only the responsibility of the U.S.”, then the rest of the story will soon become future American Military History.
Any Other Peaceful Options?
Oh, you mean like the North Korean leader suddenly having a “change of heart” and bowing down to the U.S. wearing olive branches on his mandatory state haircut with surrender papers in hand, so he’ll have a new chance to live long enough to grow into middle age while South Korean and Nato inspection teams sweep his country for WMD’s? FAT chance, HaHaHAH!
And How Bad Is That?
According to my mil-intel sources, the only reason this new administration hasn’t initiated a major surgical strike yet to take out his current nuclear arsenal is because of the politically formidable retaliatory response tactics deployed by North Korea in the form of the so-called Pyrrhic Victory principle, making it far too costly in terms of human life to be worth any perceived spoils of victory.
However, as we might painfully see, this might be a moot, and eventually irrelevant factor in the larger analysis for military action justification. With the subjectivity in the decision weighing in the same way it did with the decision to Nuke Hiroshima and Nagasaki.
To prevent even MORE loss of lives and treasure later on in a future conflict with decisive action now. It’s not even a very tough decision for the Trump Administration, considering that WWII precedent and weighing the cost of waiting too long.
It is estimated that there will be over a half million civilian casualties in the first few days of action before it “calms down”. But there will be no escaping the carnage not seen since the Viet Nam conflict, which will be paled by comparison as tens of thousands of heavy artillery and rockets rain down on Seoul. And a massive phalanx of military tanks and choppers on both sides demolish everything in their paths along the DMZ in a firestorm of death.
To preclude the escalation of a larger full scale war between South and North Korea after any initial surgical strike against North Korea’s nuclear missile program, Seoul is now allowing the THAAD anti-missile defense system in South Korea which is the advanced big brother of the Patriot shield system in Israel.
There are also two other relatively secret systems in play and now also being surreptitiously deployed for use to assist THAAD deployment in the taking down any Scud or other medium range heavy payload missiles launched by NK before they reach their targets.
Then What?
“Dogs of War always growl before they attack…but their biting fangs are swift and silent…”
P.J. Klipangle.
Whitehouse Press spokesperson Sarah Huckabee, when asked at a recent press conference about North Korea after an earlier U.S. intercontinental missile test, stated that “no option is off the table but we’re not tipping our hand with details…”
Lindsey Graham (R-S.C.) also said this week that “Conflict is inevitable, unless Pyongyang stops testing weapons”.
North Korea’s foreign minister Ri Yong Ho just emphasized in an international interview that NK will never quit their nuclear ballistic missile defense program. NEVER!
Kim Jong-Un threatened massive retaliation for the latest sanctions voted on by Congress to cripple at least a third of North Korea’s already brutal economy.
Trump tweeted the other day, that “North Korea best not make any more threats to the United States. They will be met by fire and fury that the world has never seen”.
Up until now, we didn’t care much about his threats. It was estimated that he only had a few nuclear weapons. None capable of threatening the U.S.
That suddenly all changed. The Intelligence community just issued a new devastating alert. It appears that NK had been moving much faster than expected and now has powerful miniaturized nuclear warheads ready to install on their long range intercontinental missiles when perfected in the near future that will be able to reach Chicago.
What they’re not telling you is that one type of nuclear weapon that North Korea had always been interested in developing with the help of Russian and Chinese technology was a high electromagnetic pulse (HEMP) warhead!
Do they also have one of those as well? Vegas won’t give you odds that they don’t.
So here are the details of the military operation they won’t reveal. When our Asian war machine gets revved up and good to go, collateral damage is prepared for and can be controlled and minimized, and South Korea and allies are firmly on board, with a first strike attack, the supercomputer at the Pentagon will give the info and the War Department will analyze the algorithmic percentage of success probabilities and when it gives the “nod”…
Then the U.S. would want to be able to portray an initial attack as just a counter attack which followed a first move by North Korea. So we will wait patiently and likely attack during a future repeat North Korea long range missile test later claiming the missile’s trajectory was analyzed at launch to be a direct preemptive attack on Japan or Guam, or our own mainland.
Or, as just happened these days, we will “set the stage” for this by instigating and goading Kim Dim Wit to take the first punch to get things started. So Trump escalated the testosterone tirades to higher levels by stating that the U.S. war machine will be conducting massive joint allied military staging exercises this month off the coast of Korea, and that the U.S. Armada will then be “locked and loaded”!
And the toady Tyrant Boy responded with a detailed threat to immediately wipe out Guam if that occurred!
“ When the instruments of death are tuned up and the Orchestra of War is ready to play, The ‘Conductor’ will raise his mighty baton, and begin the ‘concert’ of death and destruction…”
P.J. Klipangle.
Will you be “enjoying” the music? I hope you are at least prepping for it?
The more serious problem with this powerful poker hand are the two wild cards that are still waiting to be turned over on the world gaming table.
One, is whether or not the Pentagon will decide to use smaller scale tactical nukes on NK to end the war quickly and save prolonged engagement and allied casualties?
Considering the complications of nuclear weapons deployment, it would set a precedent if a country like Iran or China, or Pakistan decides to take advantage of the military preoccupation of the U.S. and its allies to bust a military move elsewhere for its own hegemonic agenda. Then all hell could break loose and seriously affect our own economy and lifestyle here.
The other wild card is considering the now serious “Russia-gate” problems with his “dark state” enemies homing in forcefully on Trump’s family and associates for serious prosecutions, Trump might just decide to pull the trigger on North Korea ASAP for ANY acceptable excuse? After all, there are no impeachments or potential criminal proceedings allowed against a sitting wartime president.
It all would get put on hold for the duration which would be more than enough time for the Trump administration to fix everything by firing whoever needed firing and put a stop to “Russia-gate” investigations once and for all.
That alone would be worth pulling the trigger. But if it succeeded in quickly taking out the North Korean regime and destroying their nuclear capability for future without creating WWIII in the process for the defense of the American people, that would likely ensure his second term and make the risks even more worth taking.
2. A Mortally Wounded Power Grid
The second imminent nationwide catastrophe will be the power grid, and I’ve already told you about it. Many prepare for a potentially imminent Solar event, HEMP attack, or devastating grid hack by cyber terrorists, the worst case scenario(s) for a major grid collapse are far more mundane, and about to happen any time now. Interestingly, major cyber attack power outages happen to be FEMA’s major priority right now.
Just this week the major vacation area of Cape Hatteras Carolina Islands on the East Coast experienced a total power outage black out when the main power source to the area was severed by a piece of heavy construction equipment. The situation got worse when there is no telling when the power will be restored.
Fresh water is gone and thousands of tourists are being evacuated and a state of emergency has been declared. There are virtually no backup generators on the islands. And they can’t get them there fast enough before the situation goes from bad to worse. The business losses will not be recoverable for years.
There was little significant MSM coverage of a recent event where three major cities in the U.S. had three very curious major, but brief, power outages simultaneously one morning. Then a nuclear power station out West was hit with a cyber attack but managed to resist it with advanced counter-cyber IT.
There are outages across the country almost every week. These are warnings of severe power infrastructure problems currently at dangerous levels that are only deteriorating until a major Domino effect can shut down enough of the country’s power to throw it in mass chaos. Because when that many areas are blacked out, there will NOT be help coming any time soon, if at all.
But we are so dependent upon electricity in our lives that if you are a master off grid bushcraft perish right along with their dying homesteader, you might be one of the fortunate few. Most of the world simply is NOT. And many will flashlight batteries.
Then there’s the other way to cause a major grid collapse: a concentrated well planned commando style attack on certain power stations, to begin the domino effect widespread blackout. It’s unnerving to realize how weak and fragile our grid system really is. And how all three of these “in progress” events could all somehow contribute to nation-wide blackouts.
At a recent privately held world summit in Washington on the impact of a massive cataclysm and its effect on the infrastructure and survivability of societies attended by experts from 200 countries, one of the hosts former Florida Congresswoman Michelle Vasillinda made an alarming statement that “it’s not ‘if’ a Black SKY (massive power infrastructure collapse) event will occur, it’s when!”
SHTF events don’t get much worse than a dead and buried power grid. Where nothing is ON anymore. And life as we need it comes to a grinding, unbearable halt.
3. End of the World Geoengineering
AKA Chemtrails/Haarp weather control. Despite the grave imminence of the aforementioned SHTF scenarios, this one is, by far, the most ominously horrible. Because the catastrophe is being created by OUR own Dark State government, and We, The Sheeple, are virtually oblivious to it and do nothing about it.
And because this apocalypse is NOT imminent. It Is Not Near. It Is Absolutely Happening Right HERE AND RIGHT NOW!
It just may become the worst apocalypse humanity as ever seen even ushering in an actual human species extinction! Just look up in the sky? It’s a bird, No, it’s a plane! But it definitely ain’t Superman. More like the Grim Reaper.
I wrote about celebrities like the late Prince and Merle Haggert who were Chemtrail activists, and I was amazed at how many people still thought chemtrails were a conspiracy theory. That’s got to be one of the World’s Greatest Hoaxes continuously perpetrated on the people.
But unauthorized criminally covered up geoengineering and chem-trails are a proven fact. But the dark state government has cleverly kept us “under heavy cloud cover” in the form of target focused brainwashing. And it has gotten much worse lately.
I won’t elaborate now. Combined with the above doom and gloom it might be too depressing for you all at once. But prepare yourself for a life-changing revelation. You’ll learn why the only real global warming is the one intentionally created by the geoengineering totalitarian monsters!
ENDGAME
The major prep focus for the above events are food and power back up. Each above event in expanded danger could affect these areas tremendously. If you haven’t done so already, you should at least get some of the survival guide books we have here to start planning!
According to- abcnews.go.com: Beyond the banking world, a parallel universe of shadow banks has grown in the form of hedge funds and money market funds. They’re outside the reach of conventional financial regulation, prompting authorities to plan introducing new rules to prevent the obscure sector from triggering a new financial crisis. But in doing so they risk drying up an important source of funding to banks and firms.
In the financial world, there is a narrow divide between heaven and hell. Frenchman Loïc Féry realized this when he was 33. He was a rising star in the banking world, managing the trade in complex loan packages for an investment bank. According to his business card, he was the bank’s “global head of credit markets.” But then one of his employees gambled away about €250 million ($317 million), and suddenly Féry was without a job.
In any alternative media space, you are sure to find much talk about US dollar dominance, as well as optimistic forecasts of its imminent decline. This is also true in the radical right, where nationalists pine after an end to US imperial hegemony and the rise of a more multipolar world.
Often though, this hope is little more than wishful thinking, with unlikely challengers to US power much overhyped. This is especially true concerning US dollar hegemony, a topic that is ripe for misunderstanding at the best of times.
It’s important to keep in mind that people have been forecasting the decline of the dollar ever since it attained its status as global reserve currency. As far back as 1960, the economist Robert Triffin was warning of an “imminent threat to the once-mighty US dollar”. Understanding the reason for Triffin’s pessimism, and why it turned out to be misguided, is crucial to understanding today’s global monetary system and the enduring dominance of the dollar.
Triffin’s concerns were more informed than most: his “Triffin dilemma”, as it came to be known, highlighted an inherent problem with a country’s national currency also serving as the reserve currency of choice for the international system. The country supplying the world with the reserve currency has to produce a surplus of money, thereby creating a trade deficit. In other words, the supplier country needs to be continually losing money to fill up the reserves of other countries and make the currency a low-risk option to hold as a reserve. But if the supplier country becomes too indebted to the rest of the world in this scenario, then its currency ceases to be such a low-risk asset, and that’s the dilemma.
After World War II, the US sent lots of dollars abroad through the Marshall Plan, military spending, and the American middle-class importing lots of foreign goods. So how did the domestic US dollar get around Triffin’s dilemma? It didn’t.
Enter the Eurodollar
Triffin’s dilemma was especially a problem for the US dollar because it was backed by gold. After all, what would happen when the world needed more dollars than US gold reserves could back? Much like the kind of collapse that would happen if everyone tried to withdraw their money from banks at the same time, the whole system faced implosion if the US could not keep its foreign dollars backed up with gold.
The standard story is that this problem was resolved in 1971, when Richard Nixon ended the Bretton Woods international system and finally decoupled the US dollar from gold. But by this point, private banks had already long replaced gold exchange and quietly adopted a new form of exchange, extricated from any reserves or real currency, this was a truly global, offshore economic system outside the purview of central banks. This was the Eurodollar system. In this context, “Euro” is used as a synonym for “offshore” rather than referring to actual euros. So, the Eurodollar system is the shadow, offshore money system denominated in US dollars.
No one is really sure of how the Eurodollar system emerged (more on that later), but by the late 1950s there had been a huge growth in US dollar deposits in European banks, mostly in the City of London. With pre-war practices, these deposits would have been remitted to the central bank or deposited to the banks’ accounts in the U.S., but gradually, banks began to use these dollar deposits to issue loans denominated in US dollars. By 1959, the economist Paul Einzig reported that
The Eurodollar market was for years hidden from economists and other readers of the financial press by a remarkable conspiracy of silence. I stumbled on its existence by sheer accident in October 1959, and when I embarked on an enquiry about it in London banking circles several bankers emphatically asked me not to write about the new practice.
Britain’s economic goal of making London a center for international financial capital manifested in deregulation and comprehensive secrecy protections; this gave the city a competitive edge against other European countries, and put it and its web of British offshore territories at the very centre of this emerging system.
Since the election of Margaret Thatcher’s Conservative government in 1979, Britain has undergone a great experiment. Economically, the UK became the exemplar of neoliberalism in Europe. Politically, the UK has quietly transitioned to a postnational state, undergoing one of the greatest demographic transformations in the West.
As the Eurodollar market exploded, it became the lifeblood of the global economy, quickly fulfilling a need banks had for an international currency system. Banks could now transact rapidly and efficiently across countries and continents without the need of a physical currency, an innovation that helped unleash economic activity. The Eurodollar system functioned like an early cryptocurrency, existing as a digital ledger and communications network rather than a traditional currency.
Driving the global economy is a kind of bankers virtual currency, created by and used to satisfy the demands of banks, a series of claims and liabilities exchanged between banks to meet their monetary needs. How can you travel to Indonesia and make an instant withdrawal from an ATM, withdrawing from your local bank back home? Only with a vastly complex and efficient communications network connecting the global banking system.
The Eurodollar was the emergence of this system, and central banks have little control over it. For all the scare-mongering from libertarians about “Fed money-printing”, it is international bankers — outside the regulations of the US Federal Reserve — who are the ones in control of creating the US dollar supply on international markets. Big commercial banks create Eurodollars using the offshore system without the backing of the Federal Reserve. This is done through fractional lending, where dollar deposits are used as collateral to loan out a higher amount of dollars.
Again: private banks create money out of thin air by creating debt
Discovering money creation rests with private banks is a revelation that tends to shock people and send them into a state of denial — surely the state would not outsource something this fundamental to private actors.
But don’t take my word for it, a source as good as the Bank of England wrote in a report titled “Money creation in the modern economy” that:
Most of the money in circulation is created, not by the printing presses of the Bank of England, but by the commercial banks themselves: banks create money whenever they lend to someone in the economy or buy an asset from consumers. And, in contrast to descriptions found in some textbooks, the Bank of England does not directly control the quantity of either base, or broad money. Of the two types of broad money, bank deposits make up the vast majority – 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themselves.
So international bankers have created a shadow money system, with the Eurodollar system functioning as a kind of “dark energy” of the global economy, ever-present but unseen, something which the US Federal Reserve or any other central bank can do little to control. In fact, no one even knows how much money exists in the Eurodollar system, with estimates measuring it in anything from tens to hundreds of trillions. As the economist Fritz Machlup once told a meeting of his colleagues:
We don’t even know enough about the Eurodollar market to say that it should be controlled.
If you want to visualise what this shadow money system looks like, this is an attempt at illustrating all the instruments involved in the supply of the US dollar:
Still confused? You’re not alone. If this illustrates anything, it’s that the federal reserve and central banking is just a small part of the story. This enormously complex web developed over decades through private institutions, satisfying the need for a truly global money system unconstrained by national barriers.
But in the process of decoupling the dollar from Federal Reserve reserve control, bankers have given themselves the power to create unsanctioned and unregulated money. This translates to enormous power to override national government’s monetary policy and fulfill many of the roles most people assume central banks and their governments are handling:
Because Eurocurrencies give private financial institutions the unrestricted ability to expand the availability of a particular currency, the country whose currency is the target of the Euroinstrument no longer has exclusive control over its money supply.
…
Furthermore, the lack of reserve requirements on Eurodollars creates a potentially infinite money multiplier, potentially leading to an infinite degree of inflation, all without the input of the Federal Reserve or the U.S. Treasury. Thus, the power to control the number of dollars (or dollar-equivalent instruments) in the market has been taken out of the exclusive control of U.S. authority and diffused among foreign banking institutions.
Discussion around economics is still heavily focused on central bank monetary policy and government programs like Quantitative Easing, which helps maintain the illusion that it’s still accountable, elected representatives with the final say.
It’s understandable we are biased to focus on government institutions: it has always been understood that monetary sovereignty is a prerequisite for political sovereignty. But it is now clear that governments have quietly surrendered a great degree of monetary sovereignty to the private interests running the international banking system — one of the most significant and revolutionary political changes ever, yet one hardly discussed.
It’s shocking to discover the scope and influence of this system, and to discover everything presented here has been out in the open for years, strangely ignored or overlooked by popular economists, financial analysts and politicians alike. Yet some esteemed economists like Paul Einzig and Milton Friedmandid identify and study this system, and both also wrote of a grand “conspiracy of silence” by the global banking cartel to hide its existence. Since most economic analysis still ignores it, we are left with an always partial view of how the economy functions.
Why the dollar isn’t going away
There is another important realisation that comes with understanding the shadow money system: the Eurodollar is the real global reserve currency. The emergence of the Eurodollar system was an emergent innovation, coming from the many players involved in the global financial system seeking the maximally efficient form of money to handle their business. Understanding this helps us understand why it will be so hard to dethrone the dollar from its dominant position.
Imagine a world without the dollar. Suppose a German manufacturer needs to import raw materials from Brazil. The Brazilian exporter prefers to be paid in Brazilian reals, while the German importer has funds in euro. Only, there isn’t much from Europe the Brazilian company is interested in spending its new euro on, and constantly exchanging currencies can be costly and time-consuming.
However, with the Eurodollar system, the German importer can use its euro deposits to create a Eurodollar deposit in a German bank. This Eurodollar deposit can then be transferred to a Brazilian bank, which converts it to Brazilian reals and pays the exporter. The Brazilian bank can hold the Eurodollar deposit or use it to fund its own Eurodollar lending activities. Everybody wins! (Or so it must have seemed to the people inventing this system.)
Now imagine a government or governments trying to replace this. There are decades worth of highly complex and interwoven technological arrangements that have made this system function seamlessly. The dollar retains its strength because there is a constant demand for US Treasury securities backing this system.
Looking at how financiers are treating these securities, the dollar looks more secure than ever: US Treasury data reveals the foreign demand for these securities has massively increased in recent years. Holdings of long-term US Treasuries by private foreign investors jumped about 52% over the past three years to $3.4 trillion, for the first time overtaking the holdings of central banks.
Notice that the story here is not about US aircraft carriers or puppet regimes, but the private interests of the bankers that make up this system. A lot of dollar-doomers make a case that is all about geopolitics. The US is an ailing empire they say; it has a large and growing list of enemies, as well as potential challengers on the world stage like China, and we are entering a multipolar age where the US cannot dominate the world’s affairs like it did in the 20th Century. That may all be true, but it doesn’t make the Eurodollar system any less efficient for the global banking cartel.
China has put much effort trying to make its yuan a viable alternative to the dollar, and for all that, less than 3% of the world’s foreign-exchange reserves are denominated in yuan. By one estimate, the dollar is a part of 88% of all international transactions, the euro 31%, while the yuan is involved in just 7% (more than one currency can be involved in a transaction.)
If China wanted to make the yuan a true global reserve currency, they would need to embrace massive financial deregulation and abolish their currently strict capital controls, in order to allow massive inflows of foreign held currency and yuan into China. But China needs to maintain its strict financial regulation for domestic economic success, and political stability. China is unlikely to ever decide to abandon the statist model it has followed for decades just to make itself a better hub for the international financial system.
Some have touted BRICS, of which China is a member, as potentially leading the way in establishing an alternative monetary system. On paper, this looks more promising: BRICS countries have 42% of the world’s population, and an estimated 37% of the world’s GDP.
Could BRICS go about establishing a currency? Presumably, it would need a central bank, and presumably that would be centered in China, representing an unacceptable loss of sovereignty to other countries in the alliance, especially India, with whom it has ongoing territorial conflicts. The idea of a “BRICS coin” has been floated a lot over the years, either backed by gold or fully digital. But just last year, the head of BRICS’ New Development Bank made it clear there are no immediate plans for the group to create a common currency.
Even if BRICS were willing to put aside their disagreements and commit to a BRICS coin, it’s hard to see what competitive advantage it would have over the current system. A gold-backed currency? Bankers abandoned gold and embraced the Eurodollar system in the first place because gold-backed currency was a hindrance to their activities.
What about the “R” in BRICS? Perhaps Russia’s fortunes point to a potential alternative to dollar dominance. After all, since Russia’s invasion of Ukraine, the US government has weaponised the financial system in ways previously unseen. Is this not a display to the world of the precarity of relying on the good graces of America to sustain your financial system? Many reasoned that if the United States overplayed its hand sanctioning Russia, this is the lesson the rest of the world would take, and then it would only be a matter of time before enough interested parties conspired to take down the mighty dollar.
The most headline grabbing sanction against Russia came when the US and its Western allies invoked what some analysts called “the nuclear option”, and colluded to take Russia off of SWIFT (Society for Worldwide Interbank Financial Telecommunication). This was highly significant, as SWIFT is used by banks worldwide as a kind of instant messaging service. President Biden promised that this would “ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.”
With the basic understanding of the US dollar as something strictly under the control of the US government, many assumed they could just deny Russia access to the dollar by cutting them off from the SWIFT system. But despite the high-profile deplatforming, Russian banks suffered little more than an inconvenience from being denied access to SWIFT, because of how effective the Eurodollar system is.
Eurodollar economist Jeffrey Snider summarised the problem with this attempt at deplatforming the Russian economy:
SWIFT constitutes very little insofar as the inner workings of the offshore banking network is concerned.
…
Deprive some of Russia’s institutions their ability to message to correspondents using SWIFT and they’ll simply communicate (how’s that for more irony!) with them some other way (including just picking up the phone) because the offshore correspondents are still there. They will continue to conduct their monetary business regardless of the method payments requests are sent and received.
Ironically, the very fact the US government could do so little to hinder Russian banks’ access to the Eurodollar market shows why it is so effective, and why the dollar will keep its position for the foreseeable future.
This takes us back to the start of this story, when the Eurodollar market emerged under shady and secretive circumstances in the city of London. I wrote no one is really sure how the Eurodollar emerged, but the most likely theory is that the real origin actually lies with the Soviet Union.
In 1956, the Soviets were also in the position of fearing international sanction for invading a smaller neighbour. After they crushed the 1956 rebellion in Hungary, Soviet officials feared the US would target their holdings of dollar deposits in American banks.
In response, the Soviets withdrew their dollars and moved them to two Russian banks based in Europe: Commercial pour L’Europe du Nord (BCEN) in Paris, and the Moscow Narodny Bank in London. Using those dollar deposits, these Russian banks may have become the first lenders in the global Eurodollar market.
On February 28, 1957, the Moscow Narodny Bank in London lent out $800,000. This modest sum was borrowed and repaid entirely outside the American banking system — or any centralised banking system. Bankers had just discovered an amazing innovation. BCEN in Paris also took some Narodny dollars and lent them out. The Paris bank was known by its telex name EUROBANK, and that, supposedly, is how dollars deposited in banks outside the US came to be known as “Eurodollars”.
And so, in one of the great ironies of history, the 20th Century’s great communist regime sparked an innovation on the financial markets that greatly expanded the power of capital and moved the activities of bankers beyond the scope of governments.
The Eurodollar system became so dominant because of innovations from people trying to avoid US government control of their dollars, and that’s precisely why the system is so resilient — to alternate currencies, to geopolitical shocks, and to the US government itself.
Nothing lasts forever, but for now, global dollar dominance is on pretty solid ground.
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For those professing a preference for one type of government over another, anugly reality is they all cut from the same cloth. Whether we are talking about Democracy,Communism, Socialism, or Fascism the strong link they share is one of dominance and a desire to control. While seen as vastly different systems with distinct goals, each is rooted in the promise people should sacrifice as needed for “the greater good.” The main flaw in a democracy is that it allows a simple majority to force their desires upon others. This is why our forefathers set checks and balances in the Constitution, however, even these do not guarantee freedom will remain.
Today, the burden of risk and the amount of “skin in the game” is not equally shared by all of society. Over time our financial system and institutions have been corrupted by crony capitalism and a political system that panders to the masses by exchanging favors for baubles. It could be argued that those in power don’t have to take away our freedom by force if we are willing to surrender it or trade it for a few paid weeks off work. Nor do they have to be fair in how they go about this if they simply get a majority of the populace to go along with their plan.
The suspicion governments are self-serving creatures is apparent in the old school British imperial definition of “commerce” which used free trade as a cover for the military dominance of weak nations. Those put in a position of being exploited often saw this as simply a ruse promoted by those wishing to abuse them. In short, opening borders and turning off protectionism simply makes it easier to rob countries of their wealth. America, a wayward child of England, has been accused of following this same path.
In a 2020 article a case was made that the world was headed towards an economic crisis due to several factors. The problem is that such a scenario encompasses all aspects of life, from food and energy, to supply chains, geopolitics, and possibly even war. This article is an effort to offer up some ideas on how governments might respond to such an event based on current trends and some of the events that have occurred during the covid-19 pandemic. If we accept the idea that governments are self-serving and that a huge majority of the people suffer during an economic depression, we should expect frictions to develop as the populace seeks solutions to ease their pain.
Sadly, governments across the world have overreached and crushed the rights of individuals during the pandemic. People have been denied the ability to travel, locked in their homes, followed by drones, and even been jailed. This may have been just a taste of what we might expect if governments are put under pressure to perform. Many people have pointed to the fact that in the past “war has been the go-to answer” often used to take our eyes off of problems. Hopefully, that will not be the case, however, many of the other options possible in the age of almost total surveillance do not seem much better.
It is wise to remember that when all is said and done, those in power will not be kind to us but they will rapidly throw us under the bus without a thought. Silencing dissidents or those that protest or disagree by limiting free speech is only a start. Lock-downs and curfews take on a whole new meaning when harshly enforced. They can include things like house arrest, cutting power, links to the internet and communication, and even water to areas where unrest gets out of hand. You can expect governments to remove anything that gives us the power to control our fate.
The topic of our future and culture always circles back to and is directly linked to the issue of jobs vanishing as automation and an army of robots march into our workplace. This can result in a future that takes on a very grim dystopian appearance. The fear of being replaced by a robot or seeing your job being outsourced or eliminated is on the rise. Do not be surprised if in the end those displaced from the job market are only given enough to ensure they remain docile and behave. If and when this becomes an issue conflict and violence will arise.
While some people credit Rahm Emanuel with the saying, Winston Churchill was the first to say, “Neverletagoodcrisisgotowaste.” He said it in the mid-1940s as we were approaching the end of World War II, and history indicates those in government have taken heed. The one thing we can count on is that when things crumble, the old, “we should have done more” or the “it would have been far worse” lines always flow forth from those in charge. Under this logic, we should be prepared to be subjected to massive abuse by those with strong agendas.
Possibly, one of the most dire threats we face flows from the combination of big tech and those in pursuit of the highly touted one-world agenda. This brings together a slew of organizations, governments, companies, wealthy, individuals, and bankers with the goal of expanding their power. The gathering in Davos of the World Economic Forum is not for our benefit but more for plutocrats like Facebook’s Mark Zuckerberg and Amazon’s Jeff Bezos that desire to “break the world” with their ruthless agendas to bring more political power into their hands. Recently a great deal of attention has been given to some of the ideas and vision the WEF has floated. One of the most powerful became visible when WEF public relations released a video entitled: “8 Predictions for the World in 2030. Its 2030 agenda offers a telling glimpse into what the technocratic elite has in store for the rest of us. It promotes the idea that by 2030 “You will own nothing. And you’ll be happy.
How do you begin to fight or turn back a force that has even incorporated and leveraged the ever-present smartphone as an ultra-powerful surveillance device? By developing programs to organize phone data so that it provides real-time intelligence on every citizen, and using it to guide and influence our actions the power of the state has been deeply enhanced. The digital age has made it far easier for government to seize our computers and records to shape a case against anyone by massaging the data as they see fit. The reason we hear so little criticism of these actions from our government may be that we are next in line to have our freedom culled. Governments are not the friend of the average man. Orwell wrote about how governments could take on a life of their own and criticized totalitarianism throughout his writings.
Totalitarianism, the most extreme and complete form of authoritarianism is a political concept that defines a mode of government, which prohibits opposition parties, restricts individual opposition to the state and its claims, and exercises an extremely high degree of control over public and private life. Political power in totalitarian states is generally pushed by those on the far left or right with strong agendas and an all-encompassing propaganda campaign, which is disseminated through mass media. Signs of its growth are often marked by political repression, growing control over the economy, restriction of speech, and mass surveillance.
Of course, a huge step in individuals losing control over their lives would be the adoption of a single world currency.Those in charge of our financial machinery have indicated to the public their desire for more power. This means creating a truly global centralized economic system and a highly controlled world currency framework dominated by a select cult of banking oligarchs. This would, in effect makes the rest of the human race their slaves. The banking elites are positioning themselves to avoid blame for a disaster in which all fiat currencies fall in value by selling us on an elaborate recovery con-game which includes converting to a new worldwide currency. Remember, this is conceived and perpetuated by those with the most to gain.
For years the IMF has been discussing replacing the dollar with the SDR as the world reserve currency. It would require governments to borrow from the world central banking authority, rather than printing currency to finance their infrastructure programs. With governments floating the idea of going cashless and to digital currencies, this would give them even greater control over our lives. To be clear, the elites are positioned and merely waiting for a geopolitical disaster or catastrophe so overwhelming that when the time arrives they can portray themselves as our saviors by carrying out this plan.
This is all part of the New World Order and globalization idea pushed by many of the rich elite and world leaders. It contends that larger, more cooperative governments under one financial unit will benefit us all. The fact is Americans have a great deal to lose if the dollar is dethroned and declines in value. Those who will be crucified are the middle-class Americans whose wealth is locked into or are holding long-term USD bonds thinking they are a safe investment. To Americans, the fate of dollar-dominated assets and their value when the dust finally settles should be a huge concern but most Americans fail to grasp the implications.
The transition to a world currency would take a far greater toll on paper assets than tangible goods. While recognizing the flaws of the dollar and our current system I have come to believe the other fiat currencies such as the euro and yen hold even less merit. This includes cryptocurrencies such as bitcoin. Regardless, in the end, we should expect to be told and not given an option as to what is coming. If events unfold in the way those promoting a one-world currency hope, they will be able to portray cleaning up a financial mess as a blessing. The truth is, they will benefit greatly from putting a dagger in the heart of freedom. This is not written to frighten or as a prediction of doom but to dampen any illusions those at the top value those below them.
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It’s one or two years after an EMP attack and you are safely tucked away in your retreat somewhere in the middle of nowhere. Your storage foods have mostly been used and your high tech electronics is useless. The really bad stuff is mostly past. Now it’s try to stay fed and alive and pray that civilization as you know it is coming back. You’re going to have to work your environment to live. Ever wonder what life might be like? What would it really be like to have no running water, electricity, sewer, newspaper or Internet? No supermarket or fire department close at hand?
I have a good imagination but I decided to talk to someone who would know first hand what it was like: my mother. She grew up on a homestead in the middle of Montana during the 1920s and 1930s. It was a two room Cottonwood cabin with the nearest neighbor three miles away. She was oldest at 9, so she was in charge of her brother and sister. This was her reality; I feel there are lessons here for the rest of us.
There was a Majestic stove that used wood and coal. The first person up at four thirty A.M., usually her father, would start the fire for breakfast. It was a comforting start to the day but your feet would get cold when you got out of bed.
A crosscut saw and axe was used to cut wood for the stove and after that experience, you got pretty stingy with the firewood because you know what it takes to replace it. The old timers say that it warms you when you cut it, when you split it, and again when you burn it. The homes that were typical on homesteads and ranches of the era were smaller with lower ceilings than modern houses just so they could be heated easier. The saw and axe were not tools to try hurrying with. You set a steady pace and maintained it. A man in a hurry with an axe may loose some toes or worse. One side effect of the saw and axe use is that you are continuously hungry and will consume a huge amount of food. Lights in the cabin were old fashioned kerosene lamps. It was the kid’s job to trim the wicks, clean the chimneys and refill the reservoirs.
The privy was downhill from the house next to the corral and there was no toilet paper. Old newspaper, catalogs or magazines were used and in the summer a pan of barely warm water was there for hygiene. During a dark night, blizzard, or brown out from a dust storm, you followed the corral poles-no flashlights.
There were two springs close to the house that ran clear, clean, and cold water. The one right next to it was a “soft” water spring. It was great for washing clothes and felt smooth, almost slick, on your skin. If you drank from it, it would clean you out just as effectively as it cleaned clothes. Not all clean water is equal.
The second spring was a half mile from the cabin and it was cold, clear, and tasted wonderful. The spring itself was deep – an eight foot corral pole never hit bottom- and flowed through the year. It was from here that the kids would fill two barrels on a heavy duty sled with water for the house and the animals. They would lead the old white horse that was hitched to the sledge back to the buildings and distribute the water for people and animals. In the summer, they made two trips in the morning and maybe a third in the evening. In the winter, one trip in the morning and one in the evening. They did this alone.
Breakfast was a big meal because they’re going to be working hard. Usually there would be homemade sausage, eggs and either cornmeal mush or oatmeal. More food was prepared than what was going to be eaten right then. The extra food was left on the table under a dish towel and eaten as wanted during the day. When evening meal was cooked, any leftovers were reheated. The oatmeal or the mush was sliced and fried for supper. It was served with butter, syrup, honey or molasses.
The homemade sausage was from a quarter or half a hog. The grinder was a small kitchen grinder that clamped on the edge of a table and everybody took turns cranking. When all the hog had been ground, the sausage mix was added and kneaded in by hand. Then it was immediately fried into patties. The patties were placed, layer by layer, into a stone crock and covered with the rendered sausage grease. The patties were reheated as needed. The grease was used for gravies as well as re-cooking the patties. Occasionally a fresh slice of bread would be slathered with a layer of sausage grease and a large slice of fresh onion would top it off for quick sandwich. Nothing was wasted. Some of their protein came from dried fish or beef. Usually this had to be soaked to remove the excess salt or lye. Then it was boiled. Leftovers would go into hash, fish patties, or potato cakes.
Beans? There was almost always a pot of beans on the stove in the winter time. Chickens and a couple of milk cows provided needed food to balance the larder. They could not have supported a growing family without these two resources. The kitchen garden ran mostly to root crops. Onion, turnip, rutabaga, potato and radishes grew under chicken wire. Rhubarb was canned for use as a winter tonic to stave off scurvy. Lettuce, corn, and other above ground crops suffered from deer, rats, and gumbo clay soil. Surprisingly, cabbage did well. The winter squash didn’t do much, only 2 or 3 gourds. Grasshoppers were controlled by the chickens and turkeys. There was endless hoeing.
Washing clothes required heating water on the stove, pouring it into three galvanized wash tubs-one for the homemade lye soap and scrub board, the other two for rinsing. Clothes were rinsed and wrung out by hand, then hung on a wire to dry in the air. Your hands became red and raw, your arms and shoulders sore beyond belief by the end of the wash. Wet clothing, especially wool, is heavy and the gray scum from the soap was hard to get out of the clothes.
Personal baths were in a galvanized wash tub screened by a sheet. In the winter it was difficult to haul, heat and handle the water so baths weren’t done often. Most people would do sponge baths.
Everybody worked including the kids. There were always more chores to be done than time in the day. It wasn’t just this one family; it was the neighbors as well. You were judged first and foremost by your work ethic and then your honesty. This was critical because if you were found wanting in either department, the extra jobs that might pay cash money, a quarter of beef, hog or mutton would not be available. Further, the cooperation with your neighbors was the only assurance that if you needed help, you would get help. Nobody in the community could get by strictly on their own. A few tried. When they left, nobody missed them. You didn’t have to like someone to cooperate and work with him or her.
Several times a year people would get together for organized activities: barn raising, butcher bee, harvest, roofing, dance, or picnics. There were lots of picnics, usually in a creek bottom with cottonwoods for shade or sometimes at the church. Always, the women would have tables groaning with food, full coffee pots and, if they were lucky, maybe some lemonade. (Lemons were expensive and scarce) After the work (even for picnics, there was usually a project to be done first) came the socializing. Many times people would bring bedding and sleep out overnight, returning home the next day.
A half dozen families would get together for a butcher bee in the cold days of late fall. Cows were slaughtered first, then pigs, mutton, and finally chickens. Blood from some of the animals was collected in milk pails, kept warm on a stove to halt coagulation and salt added. Then it was canned for later use in blood dumplings, sausage or pudding. The hides were salted for later tanning; the feathers from the fowl were held for cleaning and used in pillows or mattresses. The skinned quarters of the animals would be dipped into cold salt brine and hung to finish cooling out so they could be taken home safely for processing. Nothing went to waste.
The most feared occurrence in the area was fire. If it got started, it wasn’t going out until it burned itself out. People could and did loose everything. The most used weapon was the .22 single shot Winchester with .22 shorts. It was used to take the heads off pheasant, quail, rabbit and ducks. If you held low, the low powered round didn’t tear up the meat. The shooters, usually the kids, quickly learned sight picture and trigger control although they never heard those terms. If you took five rounds of ammunition, you better bring back the ammunition or a critter for the pot for each round expended. It was also a lot quieter and less expensive [in those days] than the .22 Long Rifle cartridges.
If you are trying to maintain a low profile, the odor of freshly baked bread can be detected in excess of three miles on a calm day. Especially by kids. Twice a year the cabin was emptied of everything. The walls, floors, and ceilings were scrubbed with lye soap and a bristle brush. All the belongings were also cleaned before they came back into the house. This was pest control and it was needed until DDT became available. Bedbugs, lice, ticks and other creepy crawlies were a fact of life and were controlled by brute force. Failure to do so left you in misery and maybe ill.
Foods were stored in bug proof containers. The most popular was fifteen pound metal coffee cans with tight lids. These were for day to day use in the kitchen. (I still have one. It’s a family heirloom.) The next were barrels to hold the bulk foods like flour, sugar, corn meal, and rice. Everything was sealed or the vermin would get to it. There was always at least one, preferably two, months of food on hand. If the fall cash allowed, they would stock up for the entire winter before the first snowfall.
The closest thing to a cooler was a metal box in the kitchen floor. It had a very tight lid and was used to store milk, eggs and butter for a day or two. Butter was heavily salted on the outside to keep it from going rancid or melting. Buttermilk, cottage cheese and regular cheese was made from raw milk after collecting for a day or two. The box was relatively cool in the summer and did not freeze in the winter.
Mice and rats love humanity because we keep our environment warm and tend to be sloppy with food they like. Snakes love rats and mice so they were always around. If the kids were going to play outside, they would police the area with a hoe and a shovel. After killing and disposing of the rattlesnakes- there was always at least one-then they could play for a while in reasonable safety.
The mice and rats were controlled by traps, rocks from sling shots, cats and coyotes. The cats had a hard and usually short life because of the coyotes. The coyotes were barely controlled and seemed to be able to smell firearms at a distance. There were people who hunted the never-ending numbers for the bounty.
After chores were done, kid’s active imagination was used in their play. They didn’t have a lot of toys. There were a couple of dolls for the girls, a pocket knife and some marbles for the boy, and a whole lot of empty to fill. Their father’s beef calves were pretty gentle by the time they were sold at market – the kids rode them regularly. (Not a much fat on those calves but a lot of muscle.) They would look for arrow heads, lizards, and wild flowers. Chokecherry, buffalo berry, gooseberry and currants were picked for jelly and syrups. Sometimes the kids made chokecherry wine.
On a hot summer day in the afternoon, the shade on the east side of the house was treasured and the east wind, if it came, even more so. Adults hated hailstorms because of the destruction, kids loved them because they could collect the hail and make ice cream. Childbirth was usually handled at a neighbor’s house with a midwife if you were lucky. If you got sick you were treated with ginger tea, honey, chicken soup or sulphur and molasses. Castor oil was used regularly as well. Wounds were cleaned with soap and disinfected with whisky. Mustard based poultices were often used for a variety of ills. Turpentine, mustard and lard was one that was applied to the chest for pneumonia or a hacking cough.
Contact with the outside world was an occasional trip to town for supplies using a wagon and team. A battery operated radio was used very sparingly in the evenings. A rechargeable car battery was used for power. School was a six mile walk one way and you brought your own lunch. One school teacher regularly put potatoes on the stove to bake and shared them with the kids. She was very well thought of by the kids and the parents.
These people were used to a limited amount of social interaction. They were used to no television, radio, or outside entertainment. They were used to having only three or four books. A fiddler or guitar player for a picnic or a dance was a wonderful thing to be enjoyed. Church was a social occasion as well as religious. The church ladies and their butter and egg money allowed most rural churches to be built and to prosper. The men were required to do the heavy work but the ladies made it come together. The civilizing of the west sprang from these roots. Some of those ladies had spines of steel. They needed it.
That’s a partial story of the homestead years. People were very independent, stubborn and strong but still needed the community and access to the technology of the outside world for salt, sugar, flour, spices, chicken feed, cloth, kerosene for the lights and of course, coffee. There are many more things I could list. Could they have found an alternative if something was unavailable? Maybe. How would you get salt or nitrates in Montana without importing? Does anyone know how to make kerosene? Coffee would be valued like gold. Roasted grain or chicory just didn’t cut it.
I don’t want to discourage people trying to prepare but rather to point out that generalized and practical knowledge along with a cooperative community is still needed for long term survival. Whatever shortcomings you may have, if you are part of a community, it is much more likely to be covered. The described community in this article was at least twenty to thirty miles across and included many farms and ranches as well as the town. Who your neighbors are, what type of people they are, and your relationship to them is one of the more important things to consider.
Were there fights, disagreements and other unpleasantness? Absolutely. Some of it was handled by neighbors, a minister or the sheriff. Some bad feelings lasted a lifetime. There were some people that were really bad by any standard and they were either the sheriff’s problem or they got sorted out by one of their prospective victims. These homesteaders had a rough life but they felt they had a great life and their way of life was shared by everyone they knew. They never went hungry, had great daylong picnics with the neighbors, and knew everyone personally within twenty miles. Every bit of pleasure or joy was treasured like a jewel since it was usually found in a sea of hard work. They worked hard, played hard and loved well. In our cushy life, we have many more “things” and “conveniences” than they ever did, but we lack the connection they had with their environment and community.
The biggest concern for our future: What happens if an event such as a solar flare, EMP, or a plague takes our society farther back than the early 1900s by wiping out our technology base. Consider the relatively bucolic scene just described and then add in some true post-apocalyptic hard cases. Some of the science fiction stories suddenly get much more realistic and scary. A comment out of a Star Trek scene comes to mind “In the fight between good and evil, good must be very, very good.” Consider what kind of supplies might not be available at any cost just because there is no longer a manufacturing base or because there is no supply chain. In the 1900s they had the railroads as a lifeline from the industrial east.
How long would it take us to rebuild the tools for recovery to the early 1900 levels?
One of the greatest advantages we have is access to a huge amount of information about our world, how things work and everything in our lives. We need to be smart enough to learn/understand as much as possible and store references for all the rest. Some of us don’t sleep well at night as we are well aware of how fragile our society and technological infrastructure is. Trying to live the homesteader’s life would be very painful for most of us. I would prefer not to. I hope and pray it doesn’t ever come to that.
Let’s make one thing clear. Lenders were never required by government programs to lend out more than the house was worth. That’s a myth that keeps being perpetuated.
In fact, by 2006, banks, mortage brokers and investment firms made more money from making sub-prime loans than they did from making traditional loans. That’s where our problem starts.
The modern mortgage bond was developed in the 1980s to take advantage of a market for such securities that was created by the U.S. government but was by 2000 largely operated as a private enterprise. Among these was the Federal Home Mortgage Corporation or “Freddie Mac”. Investment banks like Solomon Brothers would buy bundles of mortgages from a bank for cash, then turn them into a series of securities with various interest rates and risk possibilities and then sell them to pension funds and hedge funds. Mortgage bonds paid slightly higher returns than government bonds but, because they were backed by Freddie Mac, they were seen as the equivalent of government bonds from a risk perspective.
However, by the early 2000s the mortgage bond market was pretty saturated – just about everyone who wanted a mortgage had one. Mortgage bonds were very lucrative for investment banks and they made a lot of money off of them, more than they did from corporate bonds or underwriting stock issues. The question was how to grow the market.
Sub-prime lending was the answer, but this posed some problems. Sub-prime loans had a higher default rate and, as such, mortgage bonds based on this type of mortgage was seen as riskier, which made them harder to sell. They did offer higher interest rates, but they were not attractive to institutional investors, which was the big market.
Now, I spoke before about breaking the bonds up into different series of securities, so the investments banks dialed up this practice to 11. Each bundle of mortages would be turned into a series of (usually) three sets of securities called “tranches”. The first tranch would pay the lowest interest rate, but the holders of this tranch got first crack at the cash flow. The second tranch would pay a higher rate, but only after the first tranch was paid. The third tranch would pay the highest rate, but only after the first two were paid out.
The next step was to get the bonds “rated”. There are two “ratings agencies”, Standard & Poors and Moody’s. Long story short, the rating agencies earned fees from the brokers selling the bonds, not the buyers buying them, they would work with brokers to earn the investment grade rating (“A”) and they used a model for risk that assumed each individual mortgage would perform independently of every other mortgage. “A” grade was sold to institutional investors, “B” grade to hedge funds and the investment banks generally kept the “C” grade – no one would buy those.
In order to create more mortgage bonds, investment banks would encourage lenders to just get people to sign on the dotted line. These sub-prime mortgages were sold aggresively to people who didn’t have mortgages, either new buyers, investment buyers, or even people who had no mortgage on their existing home and needed some cash. Even if you came in with a request for a regular mortgage, a broker might push you over to a sub-prime product. Say you came in trying to buy a $200,000 house with a 10% down payment. You would instead be sold a $220,000 mortgage with a low “teaser” rate that reset in 2 years but had a lower monthly payment up front. You were told that (1) your property would go up and (2) there would be no problem re-financing your mortgage when the payments went up.
Next, some bond holders knew mortgage bonds were a bit risky so investment banks sold them insurance in case the bonds defaulted, a “credit default swap”. You paid a premium and, if the bond defaulted, you would swap the bond for the insurance amount. These had to be “underwritten” as the investment banks didn’t have the capital to pay off possible losses, so they went to big insurance companies and offered them a large share of the premium income if they would just agree to pay off any bonds that defaulted. As the insurance company saw these bonds as “A” rated, they figured they would never have to pay off.
By 2006, pretty much every possible mortgage had been sold and the market for new mortgages dried up. No problem. The investment banks just sold more credit default swaps and used that cash flow to create new bonds.
But in the second quarter of 2007, many of those mortgages with teaser rates came due. People started defaulting on the loans. The credit rating model figured defaults would be scattered, but instead on most bonds they tended to be concentrated – everyone defaulting at once.
With bonds defaulting, investors became wary of new bonds, so lenders couldn’t sell their mortgages to investment banks. They had used that money to lend out even more money and those loans started defaulting too, only this time the lenders were on the hook.
When the bonds defaulted, the credit default swaps started to be redeemed. Even before this, as the values fell, the insurance companies had to start selling assets at fire sale prices to provide collateral.
Investment banks that had heavily invested in the “C” tranches and had sold more credit default swaps were soon running out of money. Lehman Brothers defaulted on short term loans on money markets, which put money markets into a rare negative equity situation.
So:
People defaulting on mortgages they can’t afford and not being able to refinance. Thousands of properties in default.
Mortgage bonds defaulting because people aren’t making payment. This means mutual funds are going down and pension funds are in a cash crunch.
Bonds being redeemed for credit default swaps and, because banks sold more default swaps than there were mortgage bonds, the insurance companies are now holding more defaulted mortgage bonds than there were mortgages.
Property values, which were inflated by easy loans and high liquidity, start to collapse, putting many home owners (even ones with conventional loans) under water.
Because of the uncertainty in the money markets due to the bad paper there, legitimate companies like auto makers and credit card companies that borrowed heavily on money markets can’t borrow new money and instead are being asked for cash to cover their existing notes.
As such, the government had to step in and provide money to keep things orderly. They provided money to insurance companies. They took an equity share of auto companies. They set up funds to refinance mortgages in default.
The Great Depression of 1929 stands as one of the most significant economic crises in modern history, casting a long shadow over the global financial landscape. Sparked by a catastrophic stock market crash in October, this era of intense economic turmoil led to widespread unemployment, poverty, and social unrest. In the United States, millions lost their jobs, homes, and savings, forcing families to confront an uncertain and often dire future. This article delves into the factors that precipitated the Great Depression, its profound impact on American society, the government responses that shaped economic policy, and the global ramifications of this devastating crisis. By understanding these aspects, we can glean valuable lessons that inform current economic practices and prepare us for future economic challenges.
The Causes of the Great Depression
The Great Depression did not arise in a vacuum; it was the result of a confluence of several factors that had been brewing throughout the 1920s. To fully understand the causes of the Great Depression, it is essential to look at the economic environment of the 1920s, commonly referred to as the “Roaring Twenties.” This period was marked by significant economic growth, technological advances, and an unprecedented rise in consumer culture. However, this prosperity was built on shaky foundations, and cracks were starting to appear.
One of the primary catalysts for the Great Depression was the rampant speculation in the stock market. During the late 1920s, an increasing number of Americans began investing in stocks, often borrowing money to purchase shares in hopes of quick profit. This speculative bubble was characterized by inflated stock prices that did not reflect the actual value of the companies. The euphoria surrounding stock investments created an unsustainable market driven by the belief that prices would continue to rise indefinitely. Unfortunately, this led to an inevitable collapse when the bubble burst in October 1929, resulting in a dramatic stock market crash that sent shockwaves throughout the economy.
Bank failures also played a crucial role in deepening the economic crisis. With the collapse of the stock market, many banks faced immense financial pressure as their clients rushed to withdraw their savings, fearing for their financial security. The banking system, which had become over-leveraged during the boom years, was unable to withstand the sudden surge of withdrawals. By 1933, approximately 9,000 banks had failed, wiping out billions in savings and further destabilizing the economy. The loss of confidence in the banking system exacerbated the financial crisis, leaving consumers with little access to credit and diminishing their ability to spend, which in turn led to decreased production and even more layoffs.
International trade issues also contributed to the economic downturn. In an attempt to protect American industries, the U.S. government enacted the Smoot-Hawley Tariff in 1930, which raised tariffs on hundreds of imported goods. Although the intention was to bolster the domestic economy, the result was a significant decrease in international trade. Other nations retaliated by imposing tariffs on American goods, leading to a cascading effect of reduced trade volumes and increased economic isolationism. The combination of these protective measures further deepened the global economic crisis, proving counterproductive to the very goals they sought to achieve.
Additionally, economic disparities and the concentration of wealth in the hands of a few created an unstable economic environment. While the upper echelons of society reaped the benefits of the booming economy, a significant portion of the population struggled to make ends meet. This disparity in wealth led to reduced consumer spending, which is a vital component for economic growth. Without a robust consumer base, businesses struggled to maintain production levels, leading to layoffs and further economic contraction.
In summary, the causes of the Great Depression were multifaceted and interconnected. The speculative practices of the stock market, bank failures, international trade barriers, and growing economic inequality all played significant roles in leading the world into one of its darkest economic periods. By examining these causes, we can draw lessons not only about financial prudence but also about the importance of a balanced economic system that supports all citizens, rather than a select few.
The Impact of the Great Depression on Society
The ramifications of the Great Depression extended far beyond economic collapse; they reshaped the social fabric of the United States. As unemployment soared, many families faced dire financial straits. By 1933, unemployment rates had skyrocketed to approximately 25%, leaving millions of Americans without jobs and many more struggling to survive on meager means. This widespread financial despair led to significant social challenges, including increased rates of homelessness, malnutrition, and mental health issues.
The plight of the unemployed was visible in cities and towns across the nation. Shantytowns, often referred to as “Hoovervilles” after President Herbert Hoover, sprang up as displaced families sought shelter in makeshift huts. These communities became symbols of the suffering and hardship endured during this era. Families often found themselves living in extreme poverty, with many children going hungry or forced to drop out of school to support their families. The loss of a stable home environment had long-lasting effects on the health and education of these children, many of whom would experience generational poverty as a result.
Furthermore, the Great Depression had a profound effect on the American psyche. The sense of insecurity and hopelessness permeated society, as people grappled with the loss of their dreams and aspirations. The stress of financial instability contributed to a rise in mental health issues, including anxiety and depression. Families were torn apart by financial difficulties, with some individuals resorting to desperate measures, including theft or begging. The collective trauma experienced during this period would leave scars that echoed throughout psychological studies and societal dynamics in subsequent decades.
Social movements also began to emerge in response to the crises created by the Great Depression. Workers organized strikes and protests, demanding fair wages and better working conditions. Labor unions became more prominent as workers sought to protect their rights in an increasingly volatile job market. For many, invoking the power of collective bargaining became a means of survival. This surge in labor activism ultimately contributed to significant changes in labor laws and workers’ rights in the years that followed.
The Great Depression also prompted shifts in public attitudes toward government intervention in the economy. Prior to this period, many believed in a laissez-faire approach, where the government primarily took a hands-off stance regarding economic affairs. However, the scale of the crisis led many to advocate for a more active role for the government in providing support for those in need. This shift in public opinion laid the groundwork for future social safety nets and government programs that aimed to assist those facing economic hardship.
In conclusion, the impact of the Great Depression on society was profound and multifaceted. The economic collapse not only led to widespread unemployment and poverty but also altered the way individuals viewed work, government, and their place within society. The lessons learned during this tumultuous time continue to resonate today, emphasizing the importance of social safety nets, economic equality, and the resilience of the human spirit in the face of adversity.
The food lines were a very usual image during the Great Depression time.
The Government response to Great Depression and how policies changed
In the wake of the Great Depression, the U.S. government faced intense pressure to respond to the profound economic crisis that had gripped the nation. Under the leadership of President Franklin D. Roosevelt, who took office in March 1933, the government implemented a series of sweeping reforms and policies collectively known as the New Deal. These initiatives aimed to provide immediate relief to the unemployed, to stimulate economic recovery, and to implement lasting reforms to prevent future economic collapses.
One of the cornerstone programs of the New Deal was the Civilian Conservation Corps (CCC), established in 1933. This program aimed to provide jobs for young men while simultaneously addressing environmental conservation efforts. Participants in the CCC worked on projects ranging from reforestation to building parks and trails, enabling them to support their families while also contributing to national recovery efforts. By the time the program came to an end, millions of young men had benefited from the CCC, gaining work experience and developing skills that would serve them for a lifetime.
Another critical aspect of the New Deal was the creation of the Public Works Administration (PWA), which aimed to stimulate the economy by investing in large-scale public works projects. The PWA funded the construction of infrastructure such as schools, hospitals, and bridges, creating jobs for thousands and laying the groundwork for future economic growth. These projects not only provided immediate employment but also contributed to long-term improvements in public services and infrastructure.
The Federal Emergency Relief Administration (FERA) was also established to provide financial assistance to states for direct relief programs. This initiative allowed states to distribute funds to those most in need, ensuring that the most vulnerable populations received support in a timely manner. FERA marked a significant shift in government policy toward direct intervention in alleviating poverty and provided a model for future entitlement programs.
In addition to these relief programs, the New Deal included regulatory reforms aimed at stabilizing the financial system. The Glass-Steagall Act of 1933 separated commercial banking from investment banking, creating a barrier to limit risky financial practices that had contributed to the economic collapse. The establishment of the Securities and Exchange Commission (SEC) sought to regulate the stock market and protect investors from fraudulent practices, restoring public confidence in the financial system.
Furthermore, the New Deal brought about reforms in labor rights with the passage of the National Labor Relations Act (Wagner Act) in 1935. This legislation guaranteed the rights of workers to organize, join unions, and engage in collective bargaining. This marked a significant shift in labor relations, as it provided a legal framework for workers to negotiate better wages and working conditions. The act resulted in a surge of union membership and empowered workers in their fight for labor rights.
The New Deal also included social welfare programs, such as the Social Security Act of 1935, which established a social safety net for the elderly, unemployed, and disabled. By providing financial support to vulnerable populations, the Social Security Act marked a significant transformation in the government’s role in economic security, providing a foundation for the modern welfare state.
While the New Deal faced criticism from various quarters, including conservative politicians and those who argued it expanded government power too far, the overall response to the Great Depression reflected a paradigm shift in how the government perceived its role in the economy. The efforts initiated under the New Deal laid the foundation for a more interventionist government and contributed to the eventual recovery from the Great Depression.
In conclusion, the government’s response to the Great Depression through the New Deal was multifaceted and transformative. Through a series of innovative programs and policies, the government sought to address the immediate needs of a struggling population while implementing reforms to safeguard against future economic crises. The legacy of the New Deal continues to shape discussions around economic policy and the role of government intervention, highlighting the importance of adaptable responses in times of crisis.
Global consequences of the Great Depression and Responses
The Great Depression was not confined to the United States; its effects resonated around the globe, reshaping economies, societies, and international relations. As countries struggled with the fallout from the economic crisis, they faced unique challenges that often led to varying responses and policies.
In Europe, the Great Depression had a devastating impact on economies already teetering on the brink following the devastation of World War I. Nations like Germany, which were grappling with the reparations imposed by the Treaty of Versailles, experienced severe economic distress. Hyperinflation, massive unemployment, and social unrest became commonplace as economic instability eroded confidence in democratic governments. The dire economic circumstances contributed to the rise of extremist political movements, most notably the ascent of Adolf Hitler and the Nazi Party. Hitler’s regime leveraged the economic despair to promote its agenda, which included aggressive nationalism and expansionist policies.
In the United Kingdom, the depression catalyzed significant political and economic changes. While initially, the British government adopted a hands-off approach, the rising levels of unemployment and growing public discontent eventually compelled leaders to take action. The Labour Party, which gained power in the 1929 elections, aimed to address the crisis through public works programs and unemployment relief. However, the severity of the depression led to the eventual formation of a National Government coalition in 1931, prioritizing economic recovery over socialist reforms and implementing austerity measures that included cuts to public spending.
Countries in Latin America experienced backlash as well, particularly in relation to global trade patterns. Many nations were heavily reliant on exports of agricultural products, which suffered from the drop in demand during the depression. This economic hardship led to political instability, with some countries experiencing military coups as leaders exploited the social and economic unrest. For example, in Brazil, Getúlio Vargas rose to power in 1930 amid the tumult and initiated sweeping reforms to promote industrialization, which were partially in response to the weaknesses exposed by the Great Depression.
In response to the economic calamity, some nations adopted increasingly protectionist policies, including high tariffs and import quotas. This drive for economic self-sufficiency often stifled international cooperation and trade, leading to an era of economic isolationism. Protectionism, exemplified by the Smoot-Hawley Tariff in the United States, not only exacerbated domestic economic problems but also fueled tensions between nations as retaliatory measures took hold.
While the depression compelled some nations to pursue isolationist policies, it also drove others to collaborate on economic recovery efforts. The establishment of agreements like the London Economic Conference in 1933 reflected the recognition of the need for coordinated international action to combat the crisis. Unfortunately, the conference failed to produce meaningful results as countries prioritized their national interests over global cooperation.
The global consequences of the Great Depression also led to significant shifts in economic thought. Many countries began to explore Keynesian economic principles, which advocated for increased government intervention to stimulate demand during economic downturns. John Maynard Keynes, an influential economist, argued that governments should increase spending during periods of recession to boost consumption and promote recovery, contradicting prevailing economic philosophies that emphasized balanced budgets and limited government involvement.
In summary, the Great Depression reverberated across the globe, resulting in significant economic, political, and social fallout. While some nations descended into turmoil, others sought to rebuild and adapt in response to the crisis. The diverse responses to the Great Depression underscored the interconnectedness of the world economy and highlighted the importance of international cooperation in addressing complex challenges’ a lesson that continues to resonate in current global economic discussions.
The Lasting Lessons for nations and economies
The Great Depression left an indelible mark on economic policy and societal norms, shaping the way governments and institutions approach economic challenges to this day. Several lessons can be gleaned from this tumultuous period, providing valuable insights for contemporary policymakers and economists.
One of the most critical lessons is the importance of timely and effective government intervention in times of economic crisis. The initial laissez-faire approach taken during the early stages of the Great Depression led to a catastrophic decline in economic conditions and widespread suffering. The eventual recognition of the need for government action’s exemplified by the New Deal‘s demonstrated that proactive measures could mitigate the consequences of an economic downturn and support recovery efforts. Today, many governments recognize the necessity of employing fiscal and monetary policies to stimulate the economy during recessions, showing the enduring influence of lessons learned from the Great Depression.
Another vital takeaway is the need for strong regulatory frameworks to maintain financial stability. The lack of oversight in the financial sector contributed significantly to the events leading up to the Great Depression, resulting in risky practices and rampant speculation. In the aftermath, reforms such as the Glass-Steagall Act and the establishment of regulatory bodies like the SEC were implemented to stabilize the financial system. Modern economies continue to grapple with the balance between regulation and free-market principles, underscoring the importance of a robust regulatory framework to safeguard against financial crises.
The Great Depression also highlighted the dangers of economic inequality. The concentration of wealth in the hands of a few individuals contributed to volatility and limited the purchasing power of the broader population. Economists and policymakers today increasingly recognize that equitable economic growth benefits society as a whole and contributes to overall stability. Ensuring that wealth is distributed more evenly can create a more resilient economy, capable of withstanding fluctuations and crises.
Furthermore, the importance of social safety nets became apparent during the Great Depression. As millions suffered from unemployment and poverty, the need for government-supported programs to assist vulnerable populations became clear. Modern social safety nets, such as unemployment insurance and food assistance programs, are grounded in the lessons learned from this historical event. These programs are critical to providing a measure of economic security and stability in times of hardship, ensuring that individuals and families are not left to navigate crises alone.
Lastly, the Great Depression emphasized the interconnectedness of global economies. The ripple effects of the economic collapse demonstrated that no nation operates in isolation. Today’s policymakers must consider the impact of global trade, investment, and economic policies, understanding that collaboration and dialogue across nations are necessary to prevent similar crises from arising. Organizations like the International Monetary Fund and the World Bank have emerged in part to facilitate international cooperation and provide support to countries facing economic challenges.
In conclusion, the lasting lessons of the Great Depression continue to shape economic thought and policy today. The undeniable impact of government intervention, the necessity of regulatory frameworks, the importance of addressing economic inequality, the need for social safety nets, and the recognition of global interconnectedness are all crucial insights drawn from this period of crisis. As economies face new challenges in the 21st century, these lessons remain relevant, guiding policymakers to foster resilience and stability in the face of economic uncertainty.
Conclusion
The Great Depression of 1929 serves as a stark reminder of the fragility of economic systems and the profound impact of financial crises on society. The confluence of factors that led to this catastrophic event, including stock market speculation, bank failures, and economic inequality, created a perfect storm that devastated millions of lives. The social, economic, and political repercussions of the Great Depression reshaped the American landscape, paving the way for government intervention and regulatory reforms that continue to influence economic policy today.
From the establishment of the New Deal programs to the global responses that shape modern economic thought, the lessons learned during the Great Depression are invaluable. The importance of timely governmental intervention, the need for robust regulatory frameworks, the significance of addressing economic inequality, and the necessity of social safety nets cannot be overstated. Furthermore, the crisis highlighted the interconnectedness of the global economy, underscoring the importance of collaboration and communication among nations.
As we navigate the complexities of today’s economic landscape, drawing on the experiences of the past can inform our approach to future crises. The resilience of societies in the face of adversity, coupled with the commitment to enacting meaningful reforms, can contribute to a more stable and equitable economic environment. The Great Depression reminds us that while economic challenges may arise, our responses can lay the groundwork for a more sustainable future for generations to come.
For more about the Great Depression check also our article The Great Depression of 1929: A Global Economic Catastrophe (2025 update) or watch the video below.
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Famed French Microbiologist Louis Pasteur once said that “fortune favors the prepared mind”. When the topic of the apocalypse comes up, this quote definitely holds water. If you’re truly wise, you’ll endeavor to build self-sufficient homes, stock up on necessary supplies, and research on potential scenarios to find out what else you may need | 404. One of these scenarios often touches the topic of economics and finances. A common enough question that comes up for a lot of preppers is, what value will money hold when the world, as you know it, comes to an end?
The Present Value of Money
The value of the money or currency that you carry largely affects what you can purchase like groceries or gas. It affects what sort of preparations you can do to your homestead as well. In the world’s present state, money is both goods and a method of exchange that is heavily determined by economic demand. This economical demand is greatly determined by society as a whole on what we deem is valuable like goods and services. The money will only retain its value as long as we collectively decide it is worth what we get for it.
So as of present-day standards, society puts a lot of stock in things that have a high monetary value like oil, valuable currencies (Kuwait Dinar and Bahraini Dinar), and even intangible things like intellectual property and patents. It’s not surprising that the idea that a single moment would render all of these irrelevant terrifies the masses. If you want to prepare for doomsday scenario being able to discern the difference between what’s valuable now and what’s valuable in an SHTF event is crucial.
After a Collapse
In an SHTF scenario, the value of tradable forms like coins, paper, gold, and others will suddenly come into question. Everyone who’s ever laid eyes on a movie like Mad Max or Waterworld will know that everyday things that a taken for granted end up the most valuable. When people are scrambling to grab whatever supplies they can get, no one really stops to think about the current exchange rate, how much they’ve got stowed away in banks | 410, or even the value of any stocks they’ve invested. An end of the world scenario flips the switch on what people will consider valuable and what is acceptable currency.
People who make it a point to review and practice end game scenarios should have a good idea of what things go first. After a collapse of polite society, there are certain items that will disappear in the blink of an eye like bottled water, cooking oil, charcoal, and even the contents of the frozen meat section in groceries. It is during this chaotic time that people tend to panic and grab the things that they think will help them survive.
The New Currency
65.5% of Americans have begun to stockpile what they think they need in the event of a natural or political collapse. If you are one of them, the earlier you realize that money can become completely useless the better. It is generally understood that those who do not have their own supplies will have to consider a trade or barter to obtain goods. So what exactly do you use to trade?
Popular belief would put stock in things that people take for granted like spices, sugar, salt, and even tissue paper. Entertainment will remain to be in demand so things like books, paper, pencils, and even crayons increases in value. Necessities like shoes, gas, and clean water will heighten in value as these can be difficult to come by in an emergency situation. It also stands to reason that certain items that are considered vices, like alcohol or cigarettes, will be highly valuable as well. Other basic things that will skyrocket in value will be candles, sewing kits, socks, and blankets. Things can help build fires like matches and lighters can be viable options for currency–especially if you are able to start fires naturally because of your survival skills.
Items like lumber will be an effective bartering tool as it will be used for staying warm, cooking, and even building shelter. An end of the world scenario will still see certain things maintain their value like livestock. These will continue to be tradable goods–especially ones which breed quickly and are edible like rabbits. The basics are generally considered the best forms of new currency after the endgame event. Methods and items to protect yourself with will also be extremely valuable when the time comes. While guns and ammo are good forms of currency, they’re not exactly something you’ll want to trade. Always remember that while you’re thinking of new forms of currency, there are certain things that should never be let go.
Things you Shouldn’t Treat as Currency
While there is a drive up of things that can be considered new currency, there will be things that are much too important to trade or be used as currency. Things like medicine should be guarded well. In the end days, there is no telling if more pharmaceutical drugs will be produced. Items that can help you obtain intelligence on the developing situation like radios should not be up for trade or sale. Your source of food and clean water should be guarded because your life will quite literally depend on it. When you’re assessing what are non-negotiable and which are acceptable forms of currency, it will all boil down to what you can feasibly survive without. If trading a few pounds of salt or certain pieces of livestock will not affect your survival as a whole, only then will it be considered good forms of currency on your end.
In preparation for the end times, it is important to note that economics will continue to play an integral part in society. When you have what you need, this saves you from being in the position of bartering something truly precious in exchange for basic necessities. Continuously re-evaluating the supposed value of money is always good practice when you want to shore up your survival in difficult times.
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For years, I lived with a weight in my chest that I couldn’t quite name. It was an innate feeling—a frequency—that the structures we rely on in the U.S. were far more fragile than we were told. When I first started prepping, I didn’t have a spreadsheet or a real strategy. I was moving on pure instinct.
Because I was acting before the “proof” was on the evening news, people thought I was overreacting. Some even used the “C” word—crazy. Looking back, I realize I wasted a lot of time, energy, and money on the wrong things because I was reactive rather than strategic. But I’ve learned that most people won’t see the failure until it hits their own kitchen table. By then, the window for calm preparation has already slammed shut.
You might hear people talking about a “K-shaped” economy. Think of the letter “K” and the way its two arms point in opposite directions.
The top arm: Wealthy families and big tech companies are doing great. On paper, the stock market looks “fine.”
The bottom arm: The average American family is struggling with record-high debt and the rising cost of essentials like groceries and rent.
When you see “growth” in the headlines but feel the squeeze at the register, you aren’t imagining things. The system is splitting, and the foundation most of us stand on is thinning out.
The “Glitches” are Getting Louder
We are also seeing a rise in “systemic glitches.” Take the Amazon (AWS) server outages that have become more frequent. When those servers go down, it doesn’t just stop people from ordering packages. It paralyzes entire industries—banks can’t process payments, hospital systems lag, and even “smart” home security stops working.
We are becoming way too comfortable with “technical difficulties.” These aren’t just one-off accidents; they are signs that our digital infrastructure is overloaded and vulnerable.
The AI Shift and the Job Market
At the same time, Artificial Intelligence (AI) is rapidly changing the job market. While we have a shortage of people in physical trades—like plumbers and nurses—the “office” world is being turned upside down. AI is already replacing roles in data entry, research, and basic accounting. This leaves hard-working people wondering where they fit in a world that is automating their paychecks away.
Summary: What This Means For You
If you feel like something is wrong, you aren’t “crazy”—you’re just picking up on the signals before the noise becomes a roar.
The Safety Net is Thinning: You cannot rely on “the system” to be your only backup.
Knowledge is Your Best Asset: Understanding these signs now gives you the “lead time” to prepare without panic.
Confidence is the Goal: Prepping isn’t about hiding; it’s about having the supplies and the plan so you can keep “creating magic” even when things get rocky.
From Intuition to Action
The feeling you have in your gut isn’t a glitch—it’s your early warning system. For too long, we’ve been conditioned to ignore our instincts and wait for an official announcement before we take action. But by the time the “official” word comes down, the shelves are usually empty and the prices have already spiked.
I’ve been where you are. I spent years feeling like I was “overreacting” while watching the foundation of our society shift. I learned the hard way that prepping without a plan leads to wasted resources and unnecessary stress. But I also learned that the moment you take that first step toward self-sufficiency, the fear starts to fade.
You don’t need to have every answer today. You just need to stop ignoring the signals. By shifting your mindset from “victim of circumstance” to “strategic protector,” you reclaim your peace of mind. We are living through a period of massive transition, but you don’t have to go through it empty-handed. Let’s get serious, get organized, and build the confidence you need to handle whatever comes next.
Fears have been raised that the crisis in Ukraine might escalate into a nuclear war due to Moscow’s recent revival of Vladimir Putin’s nuclear threats against the West. Sources claim that a key ally of the Russian president boasted that the West would not intervene even if Russia used a nuclear weapon in Ukraine, claiming that this is because political leaders on the other side of the ocean and in Europe are not going to perish in the event of a nuclear apocalypse. Let’s find out about the countries that survive nuclear war.
When it comes to global disasters, few things are more terrifying than the prospect of nuclear war. The devastation wrought by even a single atomic bomb is unparalleled, and the thought of an all-out nuclear conflict is enough to send anyone running for cover.
Fortunately, there are still some places on Earth that would be relatively safe in the event of a nuclear war. These countries have either developed extensive anti-nuclear capabilities or are geographically isolated enough that they would be unlikely targets for a nuclear strike.
So, what is the safest country in case of nuclear war? Here are top 20 candidates for surviving a nuclear war.
1. Iceland
Iceland is a small island country located in the North Atlantic Ocean. It has a population of just over 300,000 people and an area of 103,000 square kilometers. Iceland is one of the safest countries in case of nuclear war due to its isolation, lack of military, and geothermal energy.
Because Iceland is isolated from the rest of the world by the North Atlantic Ocean, it would be very difficult for a nuclear missile to reach Iceland without being detected first. Even if a nuclear missile did manage to reach Iceland, there wouldn’t be much damage because of the small population and size of the country.
Iceland doesn’t have a standing army or any other military force. This means that there would be no one to target with a nuclear weapon. The only people who would be at risk are those working in vital infrastructure such as power plants or airports. However, even these workers could take shelter underground where they would be safe from radiation exposure.
Finally, Iceland generates all of its electricity from geothermal sources. This means that even if the entire electrical grid went down, Iceland would still have power thanks to its natural hot springs.
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2. Canada
Canada is definitely one of the leading candidates to survive a nuclear war. First and foremost, Canada has a very strong military alliance with the United States through NORAD. In fact, the two countries have such a close relationship that they often coordinate their military exercises. This means that if one country were to be attacked by a nuclear weapon, the other would most likely come to its aid.
Furthermore, Canada has a large landmass and population spread out over a wide area. This makes it less likely that a single nuclear strike could wipe out the entire country. Additionally, many parts of Canada are relatively remote and sparsely populated, which would also help reduce casualties in the event of an attack.
It’s also worth noting that Canada has some experience dealing with nuclear accidents, but thanks to quick action by authorities and military forces, there were no deaths or long-term health effects reported in Canada as a result. This shows that even in the worst-case scenario, Canadian officials would be able to effectively deal with a nuclear crisis.
3. Australia
Australia is often cited as a top candidate for the safest country in case of nuclear war. And it’s no wonder why – Australia is a vast, empty continent with few major population centers. It would be very difficult for an enemy to target all of Australia in a nuclear attack, and even if they did, the sparse population means that there would be relatively few casualties.
In addition, Australia has a strong military alliance with the United States, which would provide additional protection in a time of a nuclear war. The U.S. has a large arsenal of nuclear weapons, and it is unlikely that any adversary would risk attacking Australia knowing that they would face such a formidable opponent.
As a nation, Australia also has a lot of resilience and experience in recuperating from a nation-wide disaster, such as the infamous bushfires. All in all, this strong country can face and overcome even a nuclear warfare.
4. New Zealand
New Zealand is often thought of as a peaceful and idyllic country, far removed from the troubles of the world. But did you know that it’s also one of the leading countries that can survive a nuclear war, according to a new study?
The research, conducted by the University of Southampton and published in the journal Nature Communications, looked at which countries would be most likely to survive a nuclear bomb.
New Zealand ranked highly due to its distance from major nuclear targets, its small population, and its lack of military infrastructure.
“The likelihood of New Zealand being caught up in a large-scale nuclear conflict is extremely low,” said lead author Alex Wellerstein.
If you want to learn more about Australia and New Zealand, especially their geographical isolation from the rest of humanity, watch the following video:
5. Norway
Norway is one of the safest European countries when it comes to nuclear war. In fact, Norway was ranked in 2021 by the Global Peace Index as the 14th most peaceful country in the world.
There are a number of reasons why Norway is such a safe place to be during a nuclear war. First, Norway has a very small population compared to other countries. This means that there would be fewer people affected if there were a nuclear attack on Norwegian soil.
Second, Norway is geographically isolated from other countries, to some degree. This isolation makes it less likely that Norway would be caught up in a regional conflict that could lead to nuclear war.
Finally, Norway is a member of NATO and has close ties to the United States. These relationships help to ensure that Norway would have access to military support, if it happens to be attacked.
6. Sweden
Sweden is often thought of as a peaceful country. For instance, its homicide rate is the third lowest in the world. But Sweden isn’t just a safe place to live – it’s also one of the safest countries on this list.
That’s because Sweden has a strong policy of neutrality and non-alignment, meaning that it doesn’t take sides in international conflicts or belong to any military alliances. This makes it less likely that Sweden would be drawn into a nuclear conflict.
But Sweden isn’t just relying on luck – it also has a well-developed civil defense system. In case of an attack, Swedish citizens are advised to go indoors and stay there until the “all clear” is given. The government has also stockpiled food and supplies and built underground shelters where people can seek refuge.
Sweden also has a large landmass with very low population density, meaning there wouldn’t be as many targets for enemy missiles. Additionally, Sweden has a strong economy and well-developed infrastructure.
So, if you’re looking for a safe place to ride out a nuclear war, Sweden is definitely worth considering.
7. Finland
Let’s be honest, when it comes to nuclear war, there is no such thing as a 100% safe country. But some countries are safer than others, and Finland is one of them. Here’s why:
Finland is geographically isolated from the rest of Europe.
Finland has a small population and a large land area, so there would be fewer people affected by a nuclear attack.
Finland has a strong civil defense system that includes shelters and evacuation plans.
Finnish law requires that all buildings be designed and built to withstand an explosion equivalent to a 20-kiloton nuclear bomb (about the size of the atomic bomb dropped on Hiroshima).
The Finnish government has stockpiled emergency food, water, and medicine.
Finns are generally prepared for emergencies and have a “can do” attitude when it comes to dealing with difficult situations.
8. Cambodia
Cambodia has been through a lot in recent history. From the Vietnam War to the Khmer Rouge regime, the country has seen its share of conflict. But today, Cambodia is at peace, and it’s one of the most secure countries on the planet.
That’s why, when we were looking for the safest countries, Cambodia was on our list. Here are some of the factors in its favor:
There are no nuclear weapons in Cambodia.
The country is not involved in any international conflicts.
Cambodians are some of the most hospitable people in the world. You’d be welcomed with open arms if you sought refuge here during a time of crisis.
The countryside is beautiful and there would be plenty of food and water to go around if you had to live off the land here.
9. Thailand
If you’re looking for a safe place to be in case of nuclear war, Thailand is definitely one of the contenders. Here are some of the reasons:
It’s geographically isolated from potential adversaries. Thailand is located in Southeast Asia, far away from any potential nuclear targets. Additionally, the country is surrounded by several large bodies of water, which would help protect it from radiation in the event of a nuclear explosion
Bangkok, Thailand’s capital city, is home to some of the best hospitals in Southeast Asia. These facilities would be critical in treating those who are injured or sickened by radiation exposure following a nuclear attack.
Thai forces are well-trained and equipped and would be able to defend the country effectively.
The Thai government has close ties with the United States, which would provide protection and assistance if an attack takes place.
Thailand has a robust economy and infrastructure, so it would be able to recover quickly after an attack. Despite being hit hard by the global recession, Thailand’s economy has been slowly recovering thanks to strong exports and tourism growth. This economic stability would help fund reconstruction efforts after a nuclear attack and provide jobs for those left unemployed by the disaster.
10. Greenland (Denmark)
Greenland is the world’s largest island, located in the Arctic Ocean between Canada and Iceland. Greenland is an autonomous Danish territory with a population of approximately 57,000 people. Although it is sparsely populated, Greenland has a rich cultural heritage and its own language, Inuit.
Greenland’s location means that it would be out of range of most nuclear missiles. Even if another country did manage to launch a missile at Greenland, the vast majority of the island is covered by ice sheet, meaning that there would likely be little damage done.
In addition to its geographical isolation, Greenland also has very few military targets. There are no large cities or industrial facilities on the island, making it less attractive as a target for nuclear attack. And even if Greenland were targeted, the small population size means that there would be fewer casualties than in other countries.
11. Maldives
Maldives is an archipelago of 26 atolls, with over 1,000 individual islands. The Maldives are located in the Indian Ocean south of India and Sri Lanka.
Maldives is often hailed as one of the best locations in case of an apocalyptic event. The reason is not surprising: this small island nation is in the middle of the Ocean, far away from any potential targets. Plus, with an average elevation of just 1.5 meters above sea level, the Maldives would be virtually unaffected by a nuclear blast.
But what makes the Maldives even more appealing as a safe haven is its political stability. Unlike many other countries in the world, there has never been a military coup or civil war in Maldives history. This makes it one of the most peaceful countries on earth – and an ideal place to survive a nuclear war.
12. Fiji
Fiji is often thought of as a paradise on Earth. With its crystal-clear waters, pristine beaches, and lush tropical forests, Fiji is a true natural gem. But what many people don’t realize is that Fiji is also among the most secure nations in the world, in the event of a nuclear war.
Here are some reasons why Fiji would be the perfect place to weather a nuclear apocalypse:
It’s isolated from the rest of the world. Fiji is located in the middle of the Pacific Ocean, far away from any major landmasses. This isolation means that it would be less likely to be targeted in a nuclear attack.
There are no large cities or important targets on Fiji. Since there are no large cities or important military or political targets on Fiji, it’s unlikely that the country would be bombed in a nuclear war.
The terrain is largely uninhabitable. Most of Fiji consists of mountains, jungles, and reefs, making it unsuitable for large-scale human habitation. This lack of population density would make it easier to avoid fallout from a nearby nuclear explosion.
There are few roads and infrastructure. This makes sense when you consider that much of the terrain isn’t suitable for human settlement (see point 3). Fewer roads mean fewer targets for bombers.
The government has made preparations for emergencies like this. In 1982, the Fijian government established an Emergency Operations Centre in Nadi which coordinates disaster response efforts for all types of emergencies, including nuclear disasters.
There are plenty of caves and underground tunnels. These could provide shelter from nuclear radiation.
13. Tonga
Tonga is a Polynesian island nation, which is located in the middle of the Pacific Ocean, far from any potential targets. It’s also surrounded by some of the deepest waters on Earth, which would help protect it from radiation. While these reasons are similar to many other island nations, here are some which are specific to Tonga.
There is a low likelihood of an attack. Tonga is not involved in any major conflicts and does not have any enemies that would be likely to launch a nuclear attack. Additionally, Tonga has signed treaties committing them to peaceful resolutions of disputes and renouncing the use of force.
The damage from a nuclear attack would be limited. Even if Tonga was attacked by a nuclear weapon, the damage would be relatively limited due to its small size and lack of population density. There wouldn’t be many targets for a bomber or missile, and most people could find shelter quickly enough to avoid serious injury or death.
The country has a good chance of recovering from an attack. Given Tonga’s small size and limited infrastructure, it would probably take less time and effort to rebuild after a nuclear attack than it would for larger countries with more complex systems.
14. South Korea
South Korea is often cited as one of the top countries to live in. But can be it safe enough during a nuclear warfare? After all, it shares a border with an extremely hostile neighbor, North Korea, who is known for its nuclear threats.
Let’s have a look at what South Korea has to offer in terms of nuclear safety.
Strong economy: South Korea has the 10th largest economy in the world, and is projected to be the 7th largest by 2030. It’s also home to some of the most successful companies in the world, including Samsung, Hyundai, and LG.
Robust military: South Korea has one of the strongest militaries in Asia, with over 630,000 active personnel. The country also spends a significant amount on defense – nearly $50 billion per year.
Proximity to North Korea: Strangely enough, this can actually make South Korea a safe country. Unless North Korea wishes to destroy itself as well, they will hesitate to detonate a nuclear bomb only a few dozen kilometers from their own border.
15. Nepal
Nepal is often considered as one of the most protected Asian countries. This might be unexpected, given its location between two giant nuclear powers, India and China. But just like in the case of South Korea/North Korea, none of Nepal’s neighbors would want to drop a bomb on their own doorstep.
Besides its geographical advantages, Nepal is also home to some of the world’s tallest mountains, which would provide natural protection from any radiation or fallout. You can say it’s perfectly isolated, like an island nation, even though it’s completely land-locked.
The country is also largely rural, with a small population density, meaning there would be less chance of widespread contamination.
16. Bhutan
If you’re looking for a safe place to ride out a nuclear war, Bhutan just might be the perfect choice. Like Nepal, this Himalayan kingdom is nestled between India and China, two of the world’s most populous countries and two of the world’s nuclear powers. But Bhutan has its own unique history and culture, and it’s been able to stay largely isolated from the rest of the world.
In fact, Bhutan only started allowing tourists in 1974, and even now tourism is tightly regulated. That means there are few foreigners in Bhutan, which could make it easier to blend in if things get hairy. And with almost 70% of the country covered in forested mountains, Bhutan offers plenty of places to hide out.
Of course, no place is completely safe from a nuclear attack. But as far as potential targets go, Bhutan is about as low on the list as you can get. So if you’re looking for a place to hunker down during World War III, this remote kingdom might just be your best bet.
17. Sri Lanka
Sri Lanka is an island nation located in the Indian Ocean, off the southeastern coast of India. The country has a long history dating back over 2,000 years and is home to a rich culture and diverse landscape. Sri Lanka is a popular tourist destination, known for its beautiful beaches, lush jungles, and ancient ruins.
So why is Sri Lanka so safe? For starters, the island nation is far from any potential targets for a nuclear attack. Additionally, Sri Lanka has a small population (just over 20 million) and limited infrastructure, which would make it difficult for an attacker to cause widespread damage. Finally, the government has strict controls on access to weapons and explosives, making it unlikely that terrorists or other groups could get their hands on nuclear materials.
18. Japan
There are a lot of reasons why Japan is often cited as one of the top candidates for the safest country during a nuclear conflict, despite its past. For starters, Japan is one of the few countries in the world with a no-first-use policy when it comes to nuclear weapons. This means that Japan would only use nuclear weapons if another country attacked them first with nuclear weapons.
In addition, Japan has a very strong anti-nuclear proliferation stance. They are members of both the Treaty on the Non-Proliferation of Nuclear Weapons and the Comprehensive Nuclear Test Ban Treaty. And, they have signed and ratified both treaties.
Finally, Japan has a very robust civil defense system. In fact, they even have an annual National Disaster Prevention Day where people all over the country practice evacuation drills and learn about what to do in case of various disasters, including nuclear attacks. Here is a news story about this important day:
19. Philippines
A new report, released by the Nuclear Threat Initiative (NTI), ranks the Philippines as the 20th safest country in the world out of more than 180 nations assessed.
According to NTI, the Philippines has made significant progress in reducing its nuclear risks since signing the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) in 1968. The country has also ratified several international treaties and conventions related to nuclear safety and security, including the Convention on Physical Protection of Nuclear Material and the International Convention for the Suppression of Acts of Nuclear Terrorism.
“The Philippines has taken important steps to reduce its vulnerability to nuclear threats,” said NTI President Joan Rohlfing. “By ratifying key international treaties and conventions, investing in physical protection measures for nuclear facilities, and establishing a national interagency task force on radiological emergency preparedness and response, Manila is demonstrating its commitment to keeping its citizens safe from nuclear dangers.”
However, in addition to being one of the safest countries during a possible nuclear warfare, the Philippines is also one of the most disaster-prone countries in Asia. The country experiences an average of 20 typhoons each year, making it vulnerable to storms and flooding. It is also located within what is known as “the Pacific Ring of Fire,” an area prone to earthquakes and volcanic eruptions, which could magnify the effects of a nuclear blast. Despite these hazards, NTI’s report found that Philippine authorities have made considerable progress in improving disaster preparedness and response plans in recent years.
20. Antarctica
As you have seen by now, when it comes to the question of which country is the safest in case of a nuclear war, there are many different factors to consider. One important factor is the location of the country. Countries located far away from major population centers are often considered to be safer, as they are less likely to be targeted in a nuclear attack. Another important factor is the size of the country. Smaller countries are often considered to be safer, as they are less likely to be involved in a nuclear exchange.
One territory that meets both of these criteria is Antarctica. Antarctica is located at the southernmost point on Earth, and is thus very far away from any major population centers. Additionally, Antarctica is a very large continent, and would therefore be difficult for an attacker to target with a limited number of nuclear weapons. Finally, Antarctica has no permanent inhabitants, and so there would be no one living there who could be harmed by a nuclear attack.
Of course, there are also some potential drawbacks to using Antarctica as a safe haven. The most significant drawback is that Antarctica is extremely cold and inhospitable, and so it would not be possible for people to live there permanently without special equipment and training. Additionally, Antarctica is the farthest location from anywhere else in the world, and it would be extremely challenging to reach it in a limited period of time.
Further Reading
So there you have it, the top 20 candidates for the safest country in case of nuclear war. Naturally, additional countries can be safe as well, either thanks to their geographical isolation, or thanks to their peaceful politics and the ability to rebuild. Whichever country you choose, always remember to stay safe and alert, and head for the nearest bomb shelter at the first sign of trouble.
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