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Letter Re: What Are the Economic Collapse Indicators to Watch For?
Jim,
Some of us may be stuck within the city limits until 'the last possible
moment' before an event such as WTSHTF.
Can you suggest a day-to-day procedure or strategy to now follow for monitoring
specific and reliable news outlets or
information sources in determining when our G.O.O.D. action
plan should be initiated? .
Obviously, many people such as myself, have all the 'other' recommended Rawles
preparations in place but are still at a disadvantage from those that were able
to set up their retreat ahead of time and to have evacuated from a city. It's
the best that I can do, at this point.
Additionally, the economic news events these days are so wild and crazy that
it's hard to discern what main event, 'red flag' or 'markers'
should precipitate an exit out of the city without further doubt or hesitation.
Brushing up on 'common
sense and logic' doesn't hurt here, but it's the expectation that some specific
chain-of-events will take place that categorically shout now that
I'm speaking of. Can you give us your personal view on what these catalyst events
could be?
Thank you, - Ken R. (A 10
Cent Challenge subscriber)
JWR Replies: There are far too many variables
in the current situation for me to be able point to just one key "trigger" or "gating" indicator.
Be ready, but don't panic. I must caution SurvivalBlog readers: "Don't
give up your day job." Unless
you are retired, or have a stable and substantial secondary cash flow from
investments or a home-based business, it would be highly imprudent to quit
your job (or
start
burning vacation
hours) and move to your retreat. My advice: Watch the news carefully and be
ready
to leave on short
notice.
As
I've previously
mentioned, it is very important to pre-position the vast majority
of your key logistics at your retreat,
under the watchful eye of a caretaker or a trusted neighbor. When the time
comes, you may only have the opportunity to make one trip to
your retreat before highways become impassable.
Here are some important indicators to watch
for, in my humble estimation. (Witnessing just one of these won't be surely
indicative, but if we see several of these...) :
A sharp spike in the Federal Funds Rate
News of a failed Treasury auction, or news that Treasury rates have spiked
Overt talk of a US default by Asian or European bankers
Multiple (8+) simultaneous US bank failures on one Friday
Any large Northern Rock style bank runs in the US (with customers lined up
on the streets)
A stock market drop of more than 1,200 points in one day
A large and sudden spike in inflation
Any suspension of US stock trading
Draconian new stock trading limits
(for example any new "circuit breaker" rules, followed by news
that the trading was halted because of the limits)
New restrictions on either precious metals purchasing reporting requirements
New limits on moving funds outside the US
Any large derivatives trading collapses.(Because of disappearing counterparties
or illiquidity.)
News that hundreds of hedge funds are suspending redemptions
News that many Money Market funds are dropping below $1.00 Net Asset
Value (NAV)
The US
Dollar Index (USDI) dropping below 68 for more than one full week of
trading.
Any sudden large interest rate moves by the FOMC.
(Up or down.)
Rioting in several metropolitan centers simultaneously.
Gold spiking past $1,500 per ounce
News that any major western power is no longer accepting
US Dollars in payment for key commodities
News that any major trading partners are no longer rolling over the majority
of their US Treasury paper
A closed session of the full congress that lasts a full day or longer.
The Treasury starts to extensively monetize debt.
The resignation of either the Treasury Secretary or the Federal Reserve Chairman.
Mel Gibson moves to Fiji ;-)
