Shifting To Survival Mode

Now that it has become apparent to many that the economy is falling apart, it is time after 6 years of posting warnings that all is not well to shift the purpose of this blog to emphasize survival strategies.

A quick review of what we have learned over the past half decade is this:

1) Most banks are insolvent.

2) The financial system is insolvent due to low capital ratios and the inter-connectivity of the banks.

3) Fiat currency is a licence to steal perpetuated by big government and the ultra wealthy elite.

4) Big government's purpose is to deceive you into working for them (through high taxes) to transfer your wealth to their pet projects.

5) Ever expanding government has led to massive federal deficits that have no possibility of ever being repaid.  This implies that governments are insolvent.

6) If governments are insolvent, how will they pay the pensions benefits promised in a rapidly aging society when the pension system is not financially sound?

7) Investments (assets) are nearly impossible to accurately analyze for value as Central Banks have tinkered with interest rates driving them near zero or below.

We will continue to cover some of the major economic developments, while focusing on practical mitigation methods.

One example of what we may face is this:

8-dollar cauliflower shows the pain of falling oil prices

As prices for commodities have dropped, the value of the Canadian dollar has fallen, a direct link to an economy that is dependent on oil and other resources. It makes imports, like fresh American vegetables during the dark Canadian winter, look especially costly. Two years ago, one Canadian dollar was worth 93 American cents. On Wednesday, it stood at 69 American cents.