GLOBAL EVENT HORIZON - WHAT IT MEANS FOR YOU
What exactly is an "Event Horizon"? An Event Horizon, from a scientific perspective, is "a boundary in space-time beyond which events cannot affect an outside observer", or in layman's terms, the "point of no return" (1). The term "Event Horizon" is normally ascribed to the distinct and absolute horizon found around a black hole wherein the escape velocity of a black hole is greater than the speed of light. Once an object or particle is within the event horizon, nothing can stop the inevitable movement into the hole. So much for the college science lesson, but how does this impact or apply to life here on Terra Firma?
Our life here on Earth is being affected by a soon approaching, if not already present, Event Horizon. No, we are not going to be sucked into a black hole, per se, but we are experiencing a "point of no return".
Events are coming together at an accelerated rate, much like two race cars, at high speed, traveling in opposite directions on a figure-eight track. The inevitable is soon, if not already present. How so, you may ask? Simply put - life on this rock is changing, both physically and socially.
As Guns, Grub and Gold reported two years ago, changes in forecasted weather would lead to the severe crippling of crop production, which in turn would lead to massive food shortages and immense pressures on governments to subsidize their citizens, and call for export restraints. We are starting to see global evidence of this with regards to climate change, altered weather patterns, and massive droughts and flooding - which are NOT indicative of man-made global warming, but something far more insidious, and unstoppable - time based, sinusoidal waves of geophysical-solar/celestial interaction.
Epic floods, wildfires, droughts, tornadoes, and extreme temperature differentials are ravaging the United States and other countries throughout the world. Scientists are now warning that these climate changes will bring even more extreme weather. The human and economic toll over just the past few months has been staggering, wherein hundreds of people have died, and thousands of homes and millions of acres have been lost with initial cost estimates topping more than $20 billion US dollars. Even more frightening, from a human and economic perspective, is that peak hurricane season has not yet started in the United States. Deke Arndt, chief of climate monitoring for the National Oceanic and Atmospheric Administration (NOAA) has indicated that "This spring was one of the most extreme springs that we've seen in the last century since we've had good records" (2).
Flooding in the Midwest, associated with the fear that the earthen dam at Fort Peck may fail, sending billions of gallons of water down river, in conjunction with the strong possibility that the Fort Calhoun and Cooper nuclear power stations may flood, are a stark reality that the "corn belt", and commercial tributary ports may be in serious trouble. This, coupled with the droughts in Texas, and the current cattle decimation, means that food prices are going up on an already beleaguered economy and cash strapped populace.
The "Event Horizon" does not stop here. Global monetary and fiscal policies, especially in Europe, are showing cracks in the system. Greece is currently and literally in flames as austerity measures are being pushed through by the banking elite, while the common man fights back against a government that has failed them and sold off national treasures to private entities. Yet, many may ask, "How does this affect me"? It affects all of us, especially since trillions of dollars in U.S. funds, via fund managers, and banks have been used to buy risky, but high yielding government bonds from Greece. Has anyone stopped to ask, "What happens to the U.S. money locked into Greece banks when (not if) Greece defaults"? This will lead to a financial tsunami that will be felt around the world.
Naivety kills, and anyone naïve enough to believe that the violent scenes unfolding in Greece, Spain, Ireland, Portugal and other crippled economic European countries cannot happen here within the United States, in the not too distant future, is woefully mistaken. It is not a matter of "if" but "when", in our opinion.
More importantly, the continuing class warfare that is currently taking place in America, and elsewhere, is troubling, and will make it that much more difficult for families to save and meet obligations. Ironically, this was the eloquent opinion as noted by a Wall Street Journal commentator - "Obama clearly wants all Americans brought down to a shared level of misery --- except, of course, our federal overlords who will continue to demand their own personal jets, international family travel at taxpayer expense, lifetime health benefits while being excused from the ravages of ObamaCare, and of course their recurring exemptions from all other laws that they impose on us lowly serf taxpayers. Obama wants class warfare? Well he got it: Americans vs their elitist, corrupt, irresponsible, thieving government" (3).
Perhaps you have thought that you will hedge against the "paper" collapse and invest in precious metals. Although no one knows for absolute certainty that precious metals will survive a collapse, chances are they will not. Current legislation enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act, has shown that precious metals may be in the cross hairs of the government, and a second round of Franklin D. Roosevelt's Executive Order 6102 may not be too farfetched. Anyone banking on a complete personal financial victory by setting sail on the USS Precious Metal may instead find themselves stuck on the HMS Titanic. For those who may disagree, consider this - "money" is that which a collective group unanimously proposes to use as a medium for exchange of goods, with the goal of accumulating wealth through trade by means of purchase and sale. Thus money, as has been cataloged throughout history, can consist of precious metals, beads, sea shells, rocks, feathers, animals, paper, etc. This method does indeed work with one very important basic caveat in mind - the fundamental needs through reliable supply and demand for tangible commodities must be met, first and foremost. Only when a reliable source of tangible commodities is guaranteed does trade by means of a monetary instrument take place. If these basic methods of trade cannot be met, then any financial instrument, outside of direct commodity trade, becomes a moot point as we shall see.
In many aspects, "gold" or "silver" can be whatever is deemed viable by the masses at a given time with regards to trade. If things get bad enough, Just in Time (JiT) shipping will no doubt come to a screeching halt - this is already evidenced in the rapidly declining Baltic Dry Index. Precious metals, for all intents and purposes, may not offer security as individuals may not want to trade a viable, usable, commodity for a shiny piece of metal, but rather another viable, usable, commodity of like "value". For instance, Johnny, pre-collapse, invested a portion of his fiat denominated paycheck into tangible commodities by building up a sizable, but meager storehouse of "treasures" consisting of food stuffs, seeds, ammunition, "protection" devices, hygienic items, etc. and vices such as liquor and cigarettes. Mark has done likewise, but since Mark has a small farm he was able to focus on animal breeding and food harvesting. However, "Turbo" Timmy invested heavily into stocks, and bonds, while hedging his portfolio with precious metals such as gold and silver. In a post-collapse economic environment, reminiscent of Zimbabwe, with JiT completely shutdown, who do you think will fare better when items become so scarce that stores are only known for their ample empty shelves? Neither Mark, nor Johnny will be conducting business with "Turbo" Timmy, as "Turbo" Timmy will have nothing of "value". Only viable, tradeable commodities will be worth their weight in "gold".
Protection in any form is highly recommended for individuals truly concerned about the future. So called "flash mobs" are rearing their ugly head throughout the country, yet the main stream media does not report this to any length. If and when things get dire you can count on these "flash mobs" moving away from businesses to individuals - which in some reports are already happening. This is especially true when the "distractions" of life or no longer affordable, ie. cell phones, internet, cable tv, shelter, and food. Finding the right method of protection is individual dependent and something that you should feel comfortable with using when absolutely necessary, and without hesitation. Protection takes the form of food, shelter, weapons, and a viable pre-thought out emergency plan - with which the later cannot be emphasized enough.
The perfect storm is here, the Event Horizon that will test the intestinal fortitude of millions of people. Our advice at Guns, Grub and Gold is to have a plan in the event of terminal social unrest. We advise storing food stuffs, medicine, radios, maps, batteries, "protection" devices, and to become familiar with locations outside of urban environments in the event of an emergency, wherein you and your family can escape to safety. Learn a trade, plant a garden, and become a student of history - especially as it pertains to bartering, work, and skills associated with the First Great Depression; because history always repeats itself, perhaps not in detail, but in a macro aspect.
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