Wednesday, April 25, 2018

The Smell is in the Air? Practical Advise

What is it that I am smelling? It smells like arrogance, pridefulness, confidence, complacency before the fall.  The Bible has multiple verses on being prepared.  One such verse comes from Matthew 24 and it states…43 But understand this: If the owner of the house had known at what time of night the thief was coming, he would have kept watch and would not have let his house be broken into. 44 So you also must be ready. In Matthew 25 it states…it will be like ten virgins who took their lamps and went to meet the bridegroom. Five of them were foolish, and five were wise. For when the foolish took their lamps, they took no oil with them, but the wise took flasks of oil with their lamps. As the bridegroom was delayed, they all became drowsy and slept. ... So what am I’m saying, here’s something to ponder, we are in the digital age, hardly anybody carries cash anymore, recently I forgot my wallet, better yet I was roaming around with no gas(old age…lol) most people did’t even have $5.00 but they had a credit card or debit card, based upon this unofficial poll I can gather we are not prepared for a potential wave that is coming upon us.

The problem with emergencies is that they are not predictable and occur without much warning, if any.   The natural disasters and power outages of the past decade have revealed the wisdom of having some cash for an emergency. We can’t always predict when an emergency will arise, but we can prepare for certain problems and circumstances which are likely to arise in emergency situations.  Having cash outside of the banking system is common sense in many ways.  Let’s take three example of last year.   Hurricane Harvey here in Texas and Hurricane Sandy on the east coast and Hurricane Irma in Fl. 

Banking came to an abrupt halt. Most financial transactions in the USA are not accompanied by exchange of physical cash. Transactions are digital, i.e. no physical cash is exchanged for items or services. Transactions usually occur on digital ledgers – most often, debit, credit or otherwise electronic transfers for exchanges.  Millions of people in southern Texas Florida and New Jersey were without electricity.  The power grids was down. Many grocers and service providers would only accept payment in cash, and those few who accepted debit or credit limited the amount of transactions because the provider could not verify electronic payments or available credit without electricity. People had little or no cash and therefore little or no buying power. The people could not obtain their needs.  ATM machines don’t function without electricity. Anyone who might use an ATM to obtain cash, had no access to cash regardless of how much money they had in the bank.  People who had cash could buy groceries and water. Water treatment plants weren’t operating because the power grid was down, so potable water was in short supply. Water could not be boiled if the electric range had no power. Cash was vital to obtain goods and services in the aftermath of Hurricanes Harvey, Irma and Sandy.  Therefore cash was vital to obtain basic necessities of life.

Not all emergencies are storms, power outages, earthquakes and other natural disasters. There are other emergency situations to consider. Recently the stock markets have been extremely volatile. In the past couple of weeks we saw a couple of 700+ point drops in the stock market. These are actually 1000+ point swings.  The decline and the subsequent upside movement is the swing. In the USA, we have a Plunge Protection Team (PPT) whose mandate it is to prevent the crash of the stock market. The problem is that the markets are not operated by humans any more. The stock markets are operated by computers. Humans are not as fast as computers and can’t compete with high frequency trading (HFT). So since computers now control the  markets a crash will happen.  Right after that People will panic and run to their bank and financial institution, that means cash, checking and savings or any other liquid asset. The government will not allow a Great Depression style run on banks again so they will institute bank holidays from the 1933  emergency banking act.(Glass-Steagall Act)  That means a bank will close temporarily, for how long, minimum of 4 days. (Newsflash because of fractional banking your bank only has 10% of actual cash on hand) If you do not have cash at home for supplies, groceries, medicines, gasoline, etc. you may not be able to get cash or purchase your needs. Debit and credit will not work and electronic transactions will not process or clear during a banking holiday. You may be able to get some cash from an ATM because ATMs are designed to operate when banks are closed. The problem is that when the ATM is empty, it will not be restocked with cash if the bank is still closed.

These days, banks aren’t paying much in the way of interest. Even worse, a bank depositor is a unsecured creditor for the bank’s obligations due to the laws enacted as a result of the crash of 2008.  OK you will say my money is insured up to 250K by the FDIC. Yes you are, but nowhere in the language does it state how long you will be without your money.  Duh!!!.  The FDIC/FSLIC will guarantee the money (with limits) for individual bank failures, but will not and cannot protect depositors against a systemic failure. Bailouts for the banking system are not possible for the government now, and bail-ins of depositors money will likely occur due to the laws put into place to protect the banks. This means a depositor gets their money last in the event of a bank failure.  When Wachovia Bank the 4th largest bank in the USA went under in 2008, it happened on a weekend, but was bought by Wells Fargo, but what would have happened if Wells Fargo not stepped in.

So how much should you keep at home, for most families a min of $150 for 3 days maybe more.  It’s not for a big screen TV or something else a chicken head or clucker would think of.  Forget about the money and stash it. Now where, think of the following things, theft, fire, rot.  Also think of dollar denominations of $5,$10 and $20 not $100’s because $100’s are not practical for everyday transactions.  As the preparedness expression goes, “it is better to be safe than sorry” Imagine, what you would do right now, if you could only buy with the cash you had right at this moment for the next 3 to 5 days?  So we must be ready for anything in these times because things happen like a thief in the night.  Something is smelling in the air many have believed the hype of the Deep State, but are not prepared for the coming onslaught of waves.  Many of you are being deceived, things are not right.  Our leaders can’t and won’t tell the truth our problems are to huge, the day of reckoning is at hand.  Things are and will exceedingly get worse.  

Now to the Pastors wake up and preach the for real WORD, and practical word, for the people will be coming in droves and will have no money, but only fear which is faith turned inside out.  The trumpets are sounding , can you hear the trumpets, don’t let the cares of this world drown out your spiritual hearing and eyes.  Whose report do you believe, Yahshua is raising up everyday people to sound the alarms.  For the wrath of God is being revealed against them that suppress the truth.  For God has shown it to them and to you.  Have your eyes become dark and foolish, professing to be wise but actually foolish.  Here I am crying from the wilderness can you hear me?  Do a risk/benefit analysis of the things that I am saying.  I’ve said this before only 3 possible scenarios. Revival of the good ole days of hustle and flow, Stagflation which we are in now and full out bust, Pop goes the Weasel or the great economic bust.  You decide before each wave gets larger and larger before overtaking you and you drown.

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