In today’s podcast Bennett Johnson and I talk about why the worlds economy affects the united states and why the Chinese economy crashing might not be a good thing for us in the U.S.
I also mentioned the contest that we are having this week for the hidden Gun Shelf. You can read more about the contest here, and I will also announce the winners on next weeks podcast.
The other contest we are running this month is for the Academy Members, we will be giving away a few prizes to 4 randomly picked winners, these prizes are…
2. Bug out Bag First aid kits (Here)
1. Maxpedition EDC Kit (Here)
1. Copy of Patriots by James Rawles (Here)
Check out the Academy, join the community and become a member today.
Hidden Gun Cabinet Giveaway!
- There are a few ways you can enter below, and make sure to come back every day to get more entries.
- The contest will end on August 4th (2 weeks) and the winner will be announced on the Survivalist Prepper Podcast, here on this page and I will also send out an email. You can get on the email list here.
- The winner has 48 hours to respond and claim their prize. If the shelf is not claimed in 48 hours I will go to the next person on the list…and so on.
- That’s it! Pretty easy right? GOOD LUCK EVERYONE!
Why does the global market affect us (China)? The crash of 2008 was preceded by the same type of events:
The one world government and economic system is here. It exists now. The final brick in that wall was the rise of high-speed internet and powerful computing. We are now connected at the speed of light to everyone and anyone around the world. What happens on the opposite end of the planet can hit this end of the planet in less then ten minutes through the web.
Remember that banking and financial markets are the oil in our economic engine. Companies go to the financial markets seeking loans and capital to invest, grow, invent, and market their new products. This is the purpose of the stock market. For example: If you buy $100 of stock in Apple Corporation. Apple uses that $100 towards the operation of their company. If they are successful then Apple becomes more valuable and you investment grows with it. The opposite is true. If Apple failed then your money is lost.
Imagine this happening to millions of companies and to millions of people in a single day. The investments are not $100 they are more like $100,000 or even $100 Million!
Markets go up and down all the time. When companies get too big or not managed well or if there is war or too much debt then the markets crash. Not if but when the crash happens, millions and billions of dollars are lost. Wealth is destroyed and it sets everyone back decades. Every investor suddenly has less money to buy those things that make our life better. The less we buy the less companies have to operate. That leads to layoffs which leads to further wealth destruction and we have been less to live on. You see the progress of the slide downward.
This all leads us back to how is China connected to the USA. Our banking systems are now global. China invests in the USA and we invest in China. That applies to every modern nation, not just us and China. China and USA are two of the largest. That means when one goes down, it will hit the rest of the connected markets very hard.
It seems odd and it should be concerning that The New York Stock Exchange, United Airlines and the Wall Street Journal have all fallen victim to a series of massive technical glitches within hours of each other.
That is a strange set of circumstances not to be related. Related or not the result is the same. It shows that our greatest strength is our greatest weakness. Technology has become so advanced that we can no longer control it. The systems are too large and too complex for even the best computer experts to police, protect, and control what happens.
A good example is a series of small towns in Alaska that are connected with one main power cable. An eagle recently struck a power line which blew out the main transformer box on the power pole. Three towns in Alaksa over a 300 mile area were without power for half a day because of that one bird and one power line.
That power failure shut down banks, all stores, even the hospitals were on minimal service with generator power.
It highlights how vulnerable our systems are and how quickly we can be knocked back 100 years or more.
The three things that were hit were more symbolic than really damaging to our economy. The NYSE is just one of many exchanges. Temporarily shutting it down would not bring down our markets. It would just be an annoyance and maybe rattle the world’s confidence in our systems. The same applies to the WSJ and United Airlines. Confidence is a bigger deal than most people understand. Confidence in our economic and political system is what drives billions of dollars from around the world into our nation each day. Damaging that perception is a primary way to cause a crash!
Could you see us (the Unites Stated) “picking a fight” to get out of this hole? We used to be a country that defended our freedom, now we defend our livelihood.
Many of the Vietnam Vets. that I knew as a kid, growing up in Louisiana, said that Vietnam was a war created to drive the economy out of recession. It is commonly accepted that WW2 played a major part in bringing the USA, and Europe, out of the great depression. The old people used to say that war is good for the economy. That might be true for the short term. The problem is that wars are fought with debt! Creating the machines of war and supporting the war definitely generates jobs and stimulates the local economy. The problem is that sooner or later we have to pay back those debts and we rarely consider what the war does to our young men and women in terms of stress, personal sacrifice, etc.
The next time someone tells you that war is good for the economy, consider this question: How many potential doctors, inventors, small business entrepreneurs, nurses, etc. are lost on the battlefield? How much productivity is lost because the best and the brightest are training for war instead of training for business leadership, medicine, engineering, etc.
Many former Generals from the WW2 generation warned us of the Military Industrial Complex. Corporations combined with military leaders and politicians to keep us in perpetual warfare to drive profits for those corporations. We’ve now been at war for 15 years in the Middle East with still no end in sight. Remember that it took us less than 4 years to drive back and stomp out Nazi ism and restore Europe.
How does one prepare for an event like an economic collapse. I think of it like a chess game, you need to be thinking about 3 moves ahead.
In the early 1930’s and leading up to WW2, many people saw what was coming and fled Europe before things got too bad. Economic collapse was the beginning event that led up to WW2. I would argue that these folks were an original group of peppers. They came to the USA and other places to start a new life and survive in a time where millions were homeless, starving, struggling, freezing, and died in terrible ways. The problem I have now is…where do we run to?? What happens when the war comes to our front door?
Each person should think hard about their “life plan”! This is an intentional word that I use…LIFEPLAN. This is where you sit with those you love most and talk about your goals for the next 3, 5, 10, 20 years and more. Consider where you are, where you want to be, what is realistic, what you must do to make changes to reach your goals etc. The concept of considering economic collapse was never in the discussion with my family growing up. It is something that our generation must face!!
Consider where you are living, your emergency plan, your financial situation, etc. I realize that not everyone can relocate to a small town in colorado or an island in Alaska but I encourage you to consider your location. Make mental notes of how much violence is seen on a daily basis. Be aware of it because we tend to get desensitized to it. If the unrest is more than you can accept then move to somewhere safer.
Note: I do life plan type things all the time. We could offer your listeners a free 20 minute life plan review if they wanted one. Maybe set up a contact on your site or send them to mine and have them reach out to me.
Survivalist Prepper Forums
We are bringing back the survivalist Prepper Apoco-List/Buf Out Location forums. Right now it’s free to join and you can do that here.
New to Prepping?
If you are just beginning your preparedness journey you will find this video very helpful. Along with this video we will be sending you some email’s over the next few weeks that will give you some tips and resources to make life a little easier. Click here to watch the video.
The Preparedness Myth…
The preparedness Myth video series will also help even if you have been doing this for a while. It will give you tips about saving money, organization as well as a few bonuses along the way. Click here to watch the video.
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