We all know that the economic climate around the world is pretty awful. The job situation still sucks, stock markets world wide are collapsing, and the outlook isn’t getting better. In fact, it’s getting worse.
Right now it looks like we may be on the edge of another major credit crunch. Financial companies are dropping like a rock.
Morgan Stanley? Down 8% today.
Bank of America? Down 8.5% today.
Citibank? Try 9.5% on for size.
So what happens if this goes over the cliff? Interbank credit is frozen, because no bank will take the risk of lending their capital to another bank. This cascades down to consumer and business credit. Bottom line, the cash supply goes way down … and the economy freezes.
There’s three things I think are important right now. None of this is new, but you should think about where you’re at here and decide appropriately.
Specifically, silver. You should probably have bought a bunch already, but now is a good time to buy more, I think. If you take a look at the technical chart below, you’ll see that the $30/oz mark is a darn good stopping point for the current retraction.
I’m guessing that it probably won’t go too much lower and will either stabilize at $30 or start heading back up. I’m buying. You should think about it too.
You should have a stash of cash around the house, as well as in your bug out bag(s). How much you need is up to you, but at minimum several hundred dollars in smaller bills (20s, 10s, 5s) to start with.
It’s entirely possible for there to be a run on a bank, for ATMs to be unavailable on a weekend, or some similar issue to impact your access to cash that’s held in your bank account.
We all know the drill. We can survive for weeks without food, but not that long without water. So make sure that you have a solid water supply, water storage, and a way to purify water.
In particular, having water filtration is key. That was driven home in a particularly amusing way a few days ago when my wife and I were watching ‘I Caveman’ on the Discovery channel. Watching them try to purify water was pretty disturbing.
So make sure you have good solid water filtration capabilities. Finding water is often easy, while finding drinkable water isn’t. As always, I recommend a Berkey filter. But you don’t need the giant ones, the smaller ones are just fine. Don’t be swayed by the large capacity tanks and high filter rates.