Monday, January 31, 2011

5 Collapse-Proof Investments With Tangible Fundamentals

Eric Blair
Activist Post

Anyone who has followed the investment world since the 2008 financial collapse knows that fundamentals no longer have any relevance.  The curtain was pulled and the wizard of manipulation was revealed.  Yet, the stock market managed to climb from lows of around 6,500 to recently over 12,000 with no tangible growth in the main-street economy -- while insider selling has reached astronomical levels.

During this time the housing market continued to plunge; 15% of the U.S. is on food stamps and climbing; real wages have plummeted; international currency wars have broken out; and more bailouts and dramatic austerity budget cuts ravage the debt-ridden Western world.  In other words, there has been no measurable recovery for anyone but the bailed-out financial institutions who caused the crisis in the first place.

The fallout from the 2008 collapse makes it difficult to grasp why the markets are up when the fundamentals point in the wrong direction. Even investment spikes in commodities seem to be more connected to a weaker dollar than to authentic economic growth with increased demand.  Investors and average people alike are beginning to recognize that nothing is as it seems in the illusory global economy. Fundamentals and so-called reality no longer matter; it is universally understood that a much greater crisis looms no matter how much happy-talk comes out of our policy makers.

It seems that the major lesson from the financial crisis is that all paper investments, including suburban housing, no longer have realistic market price discovery.  In other words, it is impossible to arrive at a real price for anything when artificial subsidies, restraints, or monopolistic cartels determine prices.  The entire paper economy clearly has become a giant Ponzi-scheme, so true values cannot be determined or trusted with the available data.

Here are five tangible collapse-proof investments:

1. Food: Although your ConAgra or Nestle stock may seem like solid investments in times like these, they're still locked up in the phony world of paper assets.  Food commodities are also a highly manipulated market that, in the end, is still not tangible.  Therefore, if you are fortunate enough to have large sums of money invested, why not use that money to provide for your family's immediate food security first?  If you believe food is a good long-term investment, then invest in converting your lawn to a perennial permaculture garden, create a seed bank, or simply stockpile your pantry.  In other words, remove your money from paper food and put it into tangible food security for your family.  Once you've reached a comfortable level of personal food security and you have reserve funds, only then consider investing outside of your immediate needs. The mega-money is moving to buy vast stretches of global farmland.  If you possess the capacity, then you would do well to buy fertile farmland too.

2. Alternative Energy:  If you believe, as many do, that alternative energy will be one of the only growth industries in the near future because of unstable oil and coal supplies, along with environmental concerns, then you should not look for the hottest new solar power stock symbol, but rather use your precious nest egg to invest in getting yourself off-the-grid first.  Due to the ever-increasing prices for energy consumption, your return on investment will be realized immediately by making your residence more energy efficient through weather proofing or by installing solar or wind power.  Another investment to consider is a personal fuel refinery like the biodiesel Fuelmeister or alcohol options to run your vehicles.  Reducing your dependence on outside energy sources will be a priceless tangible investment even without the prospect of economic collapse.

Wonder Junior Deluxe Hand Grain / Flour Mill by Wondermill3. Tools:  This is a very broad topic which can be defined more easily as anything useful or required to help provide necessary consumer goods and services during a crisis or even moderate hardship.  Important tools can be as small as garden and construction tools, sewing machines, food processors, guns and ammo, or as large as a production plant for solar panels.  If there is an interruption in the supply of necessary goods, owning a means of energy production will be far more valuable than a collapsing stock portfolio.  Again, once you have supplied yourself with enough tools for your own self-reliant needs, and if you have additional funds, consider buying or starting a local garden supply store and nursery, or buy small factory equipment to produce something of value.  Even if you just break even on these endeavors, their tangible production capacity far outweighs the risks associated with paper investments, including letting devaluing cash sit in a money market account.

4. Precious Metals: Precious metals, especially gold and silver, have represented a tangible store of wealth since the dawn of modern civilization. Their intrinsic value is deeply embedded into the global cultural psyche, and demand for silver and other metals has never been higher.  Some may argue that the "foolproof" investments listed in this article are not liquid in terms of quickly converting them to cash -- which is true for many of the items for self-reliance. Gold, silver, copper, and other metals are much easier to liquidate if cash is needed. Therefore, investing in metals may prove to be one of the most advantageous strategies given the fragility of the financial system.  Rather than investing in ETFs and other commodity securities, take possession of physical gold or silver and store it in a safe place.  If you have a limited budget, buy junk silver, or forage for used roles of copper wiring when you hear of office closings.

5. Useful Skills: You can never go wrong learning or polishing useful skills. Investing in yourself is never more vital than in times of great uncertainty.  Don't be confused, however, I don't mean to go out and spend a bundle getting a worthless new college degree.  It is far more beneficial to learn how to expand your hobby skills or other passions into productive capacities.  In the best-selling book How to Survive The End of the World As We Know It, author James Wesley, Rawles, proclaims that every household should have a side business as a cushion in case catastrophe strikes. Well, catastrophe has already struck 53% of the American workforce who are unemployed or under-employed.  Since the job market is not secure, it is worth the investment to develop skills to weather a collapse scenario.  Learning simple skills such as making candles or soap, building sheds, gardening, etc., not only provides valuable products, but also gives you a chance to have fun family projects.

Due to the larger economic crisis that seems to be approaching, and the utter lack of trust in paper "assets," we would be wise to invest in tangible investments that provide for our self-reliance.  It is the most important investment you can make during times of crisis where only human necessity represents the real world.

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Anonymous said...

I agree completely with the skills portion. Knowledge will be it's own commodity when how to manuals and internet is not readily available. said...

I agree - but in the long term you can only stockpile a limited amount of necessities such as food, clothing etc. I think one key is to have on hand enough of everything so you weather at least a couple of years during which you can figure out what needs doing to survive for the duration of the collapse.

Anonymous said...

It's always been too overwhelming for me...this whole topic. I can't do it alone!

jatimlex said...

Maybe it was a good idea that when I got out of the Army in 1983 I learned a multitude of skills in the building trades, "Jack of all trades, master of none." My daughter is facing a plethora of student loans, and yes from law school, however while she was going to law school she was working as a paralegal in the law firm which she now is a lawyer. For the overwhelmed anonymous person, use this as a guide. "Life is a cinch by the inch and hard by the yard." Be the best person God meant you to be and hope for the best. Store what you can, use good ole fashion horse sense for the rest.

Anonymous said...

Dirty little secrets - the hidden, awkward origins of WW2 - the unexpected views of four key diplomats who were close to events:

· Joseph P. Kennedy, U.S. Ambassador to Britain during the years immediately preceding WW2 was the father of the famous American Kennedy dynasty. James Forrestal the first US Secretary of Defense (1947-1949) quotes him as saying "Chamberlain (the British Prime Minister) stated that America and the world Jews had forced England into the war". (The Forrestal Diaries ed. Millis, Cassell 1952 p129).

· Count Jerzy Potocki, the Polish Ambassador in Washington, in a report to the Polish Foreign Office in January 1939, is quoted approvingly by the highly respected British military historian Major-General JFC Fuller. Concerning public opinion in America he says "Above all, propaganda here is entirely in Jewish hands…when bearing public ignorance in mind, their propaganda is so effective that people have no real knowledge of the true state of affairs in Europe… It is interesting to observe that in this carefully thought-out campaign… no reference at all is made to Soviet Russia. If that country is mentioned, it is referred to in a friendly manner and people are given the impression that Soviet Russia is part of the democratic group of countries… Jewry was able not only to establish a dangerous centre in the New World for the dissemination of hatred and enmity, but it also succeeded in dividing the world into two warlike camps…President Roosevelt has been given the power.. to create huge reserves in armaments for a future war which the Jews are deliberately heading for." (Fuller, JFC: The Decisive Battles of the Western World vol 3 pp 372-374.)

· Hugh Wilson, the American Ambassador in Berlin until 1938, the year before the war broke out, found anti-Semitism in Germany ‘understandable’. This was because before the advent of the Nazis, "the stage, the press, medicine and law [were] crowded with Jews…among the few with money to splurge, a high proportion [were] Jews…the leaders of the Bolshevist movement in Russia, a movement desperately feared in Germany, were Jews. One could feel the spreading resentment and hatred." (Hugh Wilson: Diplomat between the Wars, Longmans 1941, quoted in Leonard Mosley, Lindbergh, Hodder 1976).

· Sir Nevile Henderson, British Ambassador in Berlin ‘said further that the hostile attitude in Great Britain was the work of Jews and enemies of the Nazis, which was what Hitler thought himself’ (Taylor, AJP: The Origins of the Second World War Penguin 1965, 1987 etc p 324).

Anonymous said...

Some hateful people always have to blame Jews for
because some Jews are radical leftists does
not mean all are radicals. There are many quiet,
non-political Jewish people throughout the world.

To Anonymous #1: Jews account for 50 percent of America's Nobel Prize-winning scientists.
They account for a great number in Europe
as well(Germany, Denmark, France, etc.).
Jews were always victims of peoples' jealousy.
They were persecuted because of their great
successes in science, math, medicine,finance,

Millions of Jews throughout the centuries concealed their religious heritage/culture
and assimilated throughout Europe, Latin
America, Asia, North America.
Nostradamus,Winston Churchill, Olivia Newton-John,
U.S.Sen. John Kerry(original name-Kohn),
Sarah Palin are just a small number of the millions of people
who abandoned their jewish background.

Jews who are prominent in the New World
Order actually hate regular Jewish people.
They also hate Israel.

Please stop blaming Jews for everything
that is wrong in the world.

Anonymous said...

To whom it may concern. If indeed this the final time for this planet and for humanity, then it would be wise to stop bickering about whose to blame and relize that were all one species and if and when things happen were all going out together.The person next to you might just be the one that could save your life.

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