Why is it that the huge majority of Americans have absolutely no idea whats looming ahead, and what is actually going on? Is it because they dont know any better, or because they follow blindly what they hear on tv, or maybe because they just dont ever change the channel from sportscenter? Whatever the reason is, its hard for me to wrap my head around.....
Perhaps it has to do with what science deems the 'normalcy bias'. This title refers to a state of mind that most people naturally enter when facing disaster. It causes them to underestimate both the possibility of a disaster occurring and the possible effects of the disaster. I think it also might have to do with a sense of arrogance that tends to surround us and our nation. We have this mindset that the rest of the world needs us and depends on us so its to all of their best advantage to make sure nothing bad happens here, as it will most likely have negative effects on them as well. We have this 'it cant happen here' kind of attitude which makes us extremely vulnerable. The remainder of the delusional state can be accounted for by a serious lack of economic and financial understanding which some how the Board of Education doesnt feel is a worthy teaching, so people just absorb what they hear, from a young age, on tv and from their friends and family. This is also the reason that the rich get richer, the poor get poorer, and the middle class struggles with debt.
BUT....... for those who are prepared these times of great crisis and upheaval will be also times of great opportunity. The world has seen this many times before, yet never on such a large scale. If you simply look back in history at all the times these same events have played out you can see the outcomes. In order to survive financially and physically you must be prepared, you must protect yourself. A few weeks ago the northeast was hit by Hurricane Sandy and all of the water, batteries, candles, jugs and pails, bread, and other necessities were cleaned off the shelves. So what will happen when a world-wide currency crisis occurs? do you think the stores will remain open and full of food and water? even if they did would they except your money if it were worthless? These are all scenarios that are not only possible but, at this point, almost guaranteed. What will you do when your savings accounts and retirement funds cant buy you anything? or even prior to that what if you cant withdraw them from your bank? Sounds crazy huh? well all of these events have occurred all over the world time and time again, most recently in Greece, Ireland and Spain; but also in Germany in the 1920's, Zimbabwe, twice during the French revolution, a couple times in England, Japan, Russia, Turkey, even here during the civil war, and countless other nations dating back to the ancient Greeks and Romans.
Do you not think the Romans were a high and mighty civilization? Well the downfall of the roman empire can be partly blamed on a currency collapse. If the currency of a nation, or in this case many nations, begins a freefall to worthlessness what do you think the people of that nation will all be trying to do simultaneously? Thats right, they will be trying to convert their cash and savings accounts into some sort of tangible asset, whether it be wheat, or cattle or water, or gold, or silver, etc. because at least the value of the money will remain in tact although in a different form. The cattle can then be traded for bread and water or gold and silver. But all commodities are not created equal, you see most commodities are consumables like wheat and water and beef, there are only a couple of commodities that we can see throughout 5000 years of history have fit the bill as money. The attributes that make them suitable for money are that they are a medium of exchange, a unit of account, they are portable, durable, divisible, fungible, and they are a store of value. The only two commodities that have been used consistently throughout history as money are Gold and Silver, so if you wish to protect your purchasing power you should at this time be converting your savings and retirement funds into precious metals; as the masses begin to hysterically pile into them down the road you will not only protect your purchasing power but you will magnify it, and then later you can trade accordingly for whatever you might need.
