Tuesday, November 6, 2012
You're on your own.
It doesn't matter if it's a natural disaster like a hurricane or an earthquake, or if it's a manmade catastrophe like the collapse of the banking industry. When a major crisis hits, it's every man for himself.
This may seem heartless, especially in the wake of Hurricane Sandy. But it's reality...
A couple nights ago, I watched a television reporter interview a woman who cried over the lack of food and fresh water. She complained of no electricity and no gasoline. And she pleaded for help.
As much as my heart went out to this woman, I wanted to scream at her, "but you knew it was coming!"
We all knew it was coming. Weather forecasters were obsessed with Hurricane Sandy for a week before it hit. You couldn't turn on a television without getting an update of Sandy's projected path. Anyone living in the greater New York area had plenty of time to get the heck out of the way... or bunker down and prepare for the worst.
Not all disasters are mapped out so well ahead of time. Tornadoes and earthquakes have a nasty habit of popping up and striking from out of nowhere. But even in those cases, there's always time to prepare.
After all, if you live in California, you know there's a possibility of waking up one morning with half your house in one zip code and the other half in another. Folks living in the Midwest know tornadoes are part of life, and they should be ready for one to hit at any time.
Sure, we have firefighters, police, and plenty of government agencies set up to help out in the event of a disaster. But no one is going to care for the safety of you and your family as well as you will. And you need to be ready to do so. Because when the "big one" hits, all those firefighters, police, and government responders have their own families and their own interests to look out for. They may not be able to get to you for a while.
So if you're relying on the kindness of strangers to help get you through a disaster, think again...
And that brings me to the real point I'm trying to make...
There is a financial catastrophe on the horizon. I can't tell you when it's going to hit. But we all know it's coming. The flawed money-printing policies of the world's central banks – combined with the lack of government fiscal restraints – have produced a debt bubble that cannot be deflated. It is going to explode. When it does, it'll make the 2008 financial crisis look like a minor hiccup by comparison.
We can study the history of debt blowups in Latin America to get an idea of what's coming. And we can watch the daily happenings in places like Greece, Italy, and Spain.
Credit markets shut down. You can't borrow money and you can't buy anything with a credit card. Banks close their doors. The government either confiscates your money or limits your ability to access it.
Police and government employees walk off the job. The government isn't able to pay its employees anymore, so there's no reason for them to show up to work. Government services are reduced or eliminated completely.
Electricity, water, and sanitation services are restricted or shut off completely. Gasoline is rationed. Food becomes scarce. And medical supplies and services are limited.
So like I said... when the big one comes, you'll be on your own. You need to prepare for it.
Now, I'm not predicting Armageddon. And I'm not saying it's going to happen tomorrow. But we all know there's some sort of financial catastrophe heading our way. It's like a giant orange blob on a weather map heading toward us.
Of course, you don't have to build a bomb shelter in your backyard and stock it with a lifetime supply of Spam. But you should put a "disaster kit" together and stock up on enough fresh water and canned foods to get you through several days of hardship. And keep a fair amount of cash on hand as well. That's what I'm doing to protect myself and my family.
You can take steps like that now to get ready... Or you can be like the lady on the news a couple nights ago and wait for the government to come help you out.
Best regards and good trading,
Porter Stansberry has been preparing his readers for the "End of America" – an inflationary crisis that will see the dollar lose its status as the world's reserve currency. And he recently put together a five-piece "inflation handbook" to guide his readers through the next few years. You can read his thoughts here...
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