Editor’s Note: Before 2021, I chided those who were warning of impending economic collapse in America. I’ve always felt the fiat system was collapsible, but the Trump years gave me hope that a strong economy could beat back the demons of financial collapse for a while. I went so far as to ignore the many gold companies who begged to sponsor my websites and shows. I didn’t believe in it.
Things have obviously changed since the cataclysmic stolen 2020 election. I quickly took on one, then two, then three precious metals sponsors out of nearly 30 that I had vetted because they were the only three that were demonstrably “America First,” not working with the CCP and not donating to Democrats..
The reason that I preface the article below from International Man is because I want readers to know that I do not share these articles for the sake of fearmongering. There are massive and completely legitimate concerns about our financial future as a nation. I was not a “Chicken Little” telling people to get out of the stock market and into physical precious metals until recently. Now, I’m a full-blown believer in “smart money,” and while I’m not a financial advisor, as a journalist I can appreciate the need for Americans to move their retirement accounts to self-directed IRAs backed by physical precious metals.
We are in for a very bumpy ride. Buckle up. Here’s International Man and Doug Casey explaining what to expect…
From Goldsmiths to Central Banks: Doug Casey on the Degradation of the Banking System
International Man: Historically, classical banking functioned as a way to safeguard people’s money—banks charged a fee to depositors for holding money and administering transfers.
Today, banks generate enormous profits from making loans to borrowers—by lending out far more than they hold on reserve. How has the relationship between the depositor and the bank changed over time?
Doug Casey: The banking industry has become totally fraudulent. It has totally left its roots. As I explained a couple of weeks ago, the banking business is really two separate and unrelated businesses.
One is savings accounts (a.k.a. time deposits), where you deposit your money, gold, with the bank for a fixed period of time. You’re paid a fixed amount of interest. The bank lends it out for the same amount of time for a higher rate of interest. Historically, sound bankers only made short-term, self-liquidating loans backed by assets exceeding the amount of the loan—but there’s still a degree of risk.
The other function of the bank is to store your capital securely. For that, you use a checking account (a.k.a. a demand deposit). The bank doesn’t pay you but charges you a fee for keeping your money safe in a guarded and insured vault and giving you the right to transfer or withdraw it instantly.
These are actually two completely different businesses. But today, accounts of all types have been completely merged. The public—and almost all bankers—don’t know and really don’t care about any of this.
Banking has totally transformed—in 1913 with the founding of the Federal Reserve, then in the 30’s with the devaluation of the dollar and a slew of new regulations, then in 1971 when the dollar was turned into a complete fiat currency—from a relatively small business, where in effect a merchant was providing a service to safeguard and deploy money, to a dominant institution that controls the economy. It’s part of the financialization of everything. The Federal Reserve is now essential to financing government deficits today, much more than taxes or the borrowing of savings.
The Federal Reserve buys government debt with dollars it creates and deposits them in government accounts at commercial banks. The commercial banks then lend the new dollars out many times over through the fractional reserve system. It seems to work until too many borrowers become too indebted. Or too many depositors lose confidence in the system as they did recently with Silicon Valley Bank.
Unfortunately, most people don’t have a clue how this works or what the mechanics of it are, but it’s the main reason why we live in a world which is head over heels in debt.
“Saving” means producing more than you consume and setting aside the difference. It allows a higher standard of living in the future.
“Debt” facilitates an artificially high standard of living now and a lower standard of living in the future. That’s because you’re either consuming capital that others have saved or you’re mortgaging your future.
The bottom line is that the whole financial system—based upon the way currency is created today by the government and the way the banks work, is totally and irredeemably corrupt. I don’t believe it can be reformed. It’s inevitably going to collapse in some way.
International Man: A fractional reserve banking system could only work if there is a so-called “lender of last resort” to create new currency units out of thin air to bail everyone out when things go south.
This is what the Federal Reserve and other central banks do. It resembles a Ponzi Scheme backstopped by a massive counterfeiting operation. What’s your take?
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Doug Casey: The Fed has become part of the cosmic financial firmament. People react to any who question its legitimacy as they might to a Flat Earther. Regardless of that, I think it’s important to say that fractional reserve banking is a fraud. It’s a criminal activity.
The solution is not to have a lender of last resort to hold everything together, hoping to keep the system intact. The solution is to recognize that anything short of a 100% reserve banking system is a fraud and should be treated accordingly. When a banker mixes savings accounts and checking accounts or creates loans without corresponding deposits, he should be prosecuted as a common law fraudster. But now, these things are integral parts of the financial system. It’s going to be very, very hard to unwind.
Of course, the Federal Reserve itself should be abolished because it’s the actual engine of inflation, but that’s not going to happen either because the government relies upon the Federal Reserve to finance most of its spending today.
With the world as deeply indebted as it is today, pulling the plug would cause widespread bankruptcies and unemployment as embedded distortions in the system are liquidated. But the plug should be pulled because it’s important that the world returns to a sound basis, which is about producing real goods and services as opposed to shuffling money around to the benefit of the paper economy.
Put it this way: If a 100-story skyscraper is poorly built and resting on quicksand, it’s better to have a controlled demolition than wait for it to fall unexpectedly at a random time. This is going to end extremely badly, likely during the current financial crisis.
International Man: The recent collapse of Silicon Valley Bank was the 2nd largest bank failure in US history.
The US government and media bent over backward to try to convince the public there wasn’t a bailout—but there was. All depositors are supposed to be made whole—despite most being above the FDIC’s $250,000 limit. What kind of precedent does this set, and what are the implications?
Doug Casey: Banks have become creatures of the State. They’re no longer businesses, among many others, that just facilitate commerce.
The only way to solve this problem is to get the government out of the money system, which is something most people can’t comprehend—and go back to actual specie money, which is to say gold.
The whole system has to be revamped and refurbished. This is going to wind up with either a deflationary collapse or a runaway inflation of the currency if the government creates more dollars in order to keep the Ponzi scheme going.
The SVB bailout was particularly shameful because it was about protecting the ultrarich around the tech industry—over 90% of SVB’s deposits were over the $250,000 limit. Of course, if the Fed hadn’t bailed out SVB, it would have caused a deflationary collapse. But that would be better than what’s likely coming…
We’ve been on the razor’s edge of a disaster for many years. The massive creation of currency to paper over problems has created bubbles everywhere. In 2000 with stocks; in 2008, with real estate, and a hyperbubble in the bond market. Now the crisis is in the banking system itself. There’s actually no easy way out of this. There’s no soft landing.
What we’re looking at is a gigantic depression, defined as a significant drop in most people’s standard of living. That’s the way it’s going to end, and it’s likely to end soon.
Of course, the government’s going to try to do to paper this over—they’ve tried “quantitative easing,” which they continue by creating huge amounts of digital currency. They’ve tried reducing interest rates to keep things going, which made things much, much worse. Now they’re going to try Central Bank Digital Currencies, which will be the ultimate disaster. My suggestion is to prepare for a class 5 hurricane in the financial markets, not just this year but over the rest of this decade.
International Man: Are there any practical alternatives to the unstable banking system today?
Doug Casey: I urge people to buy lots of gold and silver, especially in smaller coins. If possible, keep a fair portion of it outside of your native country because your main risks today—as serious as the financial and economic risks are— are political.
You have to insulate yourself politically. Diversify not just into gold and silver but into foreign jurisdictions— where the local government doesn’t see you as its personal possession but rather the possession of some other government.
International Man: The banking system is one giant government-caused distortion in the market. Do you see any smart speculations as these distortions inevitably unwind?
Doug Casey: It’s regrettable that, as the government passes more laws and regulations, creates more currency, and juggles interest rates, the markets will become more chaotic.
People will be forced to second guess the markets just to keep what they have. Most people won’t succeed at this. So it’s important that, even at this late date, you improve your understanding of economics and intelligent speculation, to insulate yourself from these things to some degree.
Most of the real wealth in the world is still going to be here after the current financial system collapses. It’s just going to change ownership. You’re more likely to survive and to prosper by gaining as much knowledge as you can and building as much real capital as you can.
Editor’s Note: Most people have no idea what really happens when the banking system collapses, let alone how to prepare…
As we get closer to a widespread banking collapse, choosing where to put your money is crucial to ensuring it doesn’t get caught in the crosshairs.
Owning gold is essential. Gold has held its value for thousands of years. It has preserved wealth through every kind of crisis imaginable. Gold will preserve wealth during the next crisis, too.
That’s precisely why legendary speculator Doug Casey and his team just released a new video on this topic, including what the mainstream media won’t tell you about gold. Click here to watch it now.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
