Survivalism in the Suburbs

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Despite humanity
surviving and thriving for thousands of years using commodity currencies
the fiat currency proponents have effectively marshaled the press
and academia to equate those in favor of a commodity currency with
those counting down to Armageddon. When looking back through the
corridors of history one lesson is clear from humanity’s experience:
at all times and in all circumstances gold and silver remained money.
After fiat currency debacles that resulted in self-inflicted financial
and economic wounds it was the individuals with the foresight to
store tangible assets that were able to provide the capital for
humanity to do what they have always done: rebuild.

Therefore,
those in favor of a commodity currency who store tangible assets
are the optimists. Commodity currency advocates are neither ‘doom
and gloomers’ nor vampiric fatalistic fiat currency disciples
who will be vaporized by a rising golden sun. Those in favor of
a commodity currency who store tangible assets realize that the
earth rotates, the sun rises and the ages turn. As the night shifts
to day life will go on with breakfast being cooked and eaten. The
issue is who will do the cooking and who will do the eating.

Strategic
Relocation

Shortly before
Memorial Day I received an interesting, if not unanswerable, question
from a reader: “Would you recommend a place to live in the
Montana to Colorado area that will have minimal economical damage?”

The principle
of human action holds that every individual derives utility according
to their own preferences resulting in a subjective perception for
determining value and price. I hate cold weather. Being trained
in the law I am often accused of being cold-blooded but the reality
is that I am just a desert rat.

While preparation
expert Joel Skousen, author of Strategic
Relocation
, may consider Montana or Nebraska attractive
locals I have about the same desire to live in Montana or Nebraska
as I have for eating sauteed rats in South Korea. Nevertheless,
I know people who love living in Montana and others who find sauteed
rat a delicacy. Everyone has their own individual preferences based
on their human action.

Preparation

A motto I have
tried to implement is: Be prepared. Often the first step is to assess
the environment and circumstances. There is an infinity of scenarios
that can play out. The key is being able to assess what is possible
and its probability of occurring.

Sure, a metorite
could come hurling out of left field and destroy your car, or the
earth for that matter, but the probability is extremely low. Even
if I did purchase meteorite insurance I would still bear the counter-party
risk. Therefore, I have chosen to forgo meteorite insurance. Nevertheless,
I would not be surprised if a few of my extremely conservative readers
did purchase meteorite insurance and maybe even additional reinsurance.
Everyone has their subjective preferences.

Mental Calculations
of Value

The use of
fiat currency has greatly retarded the ability of the general populace
to perform mental calculations of value. These fiat currency illusions
are like using the term ‘foot’ or ‘feet’ to
perform mental calculations of distance when constructing a building
but having either no definition of inches or conflicting definitions
of inches.

Let us assume
plans were drawn up for a building with a 7 foot door within a 10
foot wall. However, the definition of feet when used for the door
was 24 inches per foot and when used for the wall it was 6 inches
per foot. Can you imagine the resulting chaotic structure?

But that is
precisely the problem most individuals and financial professionals
have found themselves in. As a result most people can neither accurately
appraise the economic environment nor make accurate assessments
of the possible events and their probability of occurrence.

Suburban
Survivalists

Yahoo Finance!
reported that a new trend is coming out of chaotic California: ‘Crisis
spurs spike in ‘suburban survivalists’. “Six months
ago, Jim Wiseman didn’t even have a spare nutrition bar in
his kitchen cabinet. Now, the 54-year-old businessman and father
of five has a backup generator, a water filter, a grain mill and
a 4-foot-tall pile of emergency food tucked in his home in the expensive
San Diego suburb of La Jolla.”

Read
the rest of the article

April
5, 2010

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