The beginning of the end....

Greece, Thailand, Egypt, Tunisia, Algeria, Libya, Jordan, Lebanon, and on and on......

Why?

The media has essentially muddled the real reason why. Political figures, network news, and everyone in between is trying to polarize the issue into a good versus evil, socialism versus capitalism.

This is NOT why. The short answer is food. Yes, food. Rising food prices around the world are leaving more people hungry. This is not the only reason however. I argue it is essentially the straw that has broken the "camel's back".

What it REALLY comes down to is energy and money. To simplify even further, OIL. Yes.... it is oil. We are at a point in the industrial age where finding usable oil is becoming increasingly difficult. Don't believe me? The BP oil spill is the quintessence of the underlying problem. We are now having to drill further offshore, in more hostile terrain. Some argue that oil is virtually limitless. I agree, but there are 2 types of oil. Cheap, easy to access oil, and oil that is so difficult to collect, that it is cost ineffective to even attempt. When the cost to extract oil becomes more than the value of the oil, we stop drilling.

I am trying to simplify a very complex issue here. There are far more intricacies here, but for the purpose of this post, I am explaining it as basically as I can.

Here it is: "peak oil" has already been reached, meaning that petroleum supplies will continue to fall and prices rise until gasoline, plastic, pesticides and other oil-derived products become unaffordable.

Its a law as certain as gravity. When you have something that is finite, you get a bell curve. We are now at the top of the curve. So as the world population continues to grow, supply of oil will fall. There is NOTHING to stop this. Oil reservoirs will not replenish. It is really that simple.

This collapse is not made up. This is not hyperbole. It is real. I have for several years now, worked for the finance industry. I spend 10+ hours a day reading reports, studying markets and economies. This so called "recovery" is complete bullshit. Our government has fed us lies. I was raised and for a long time took the republican route. Then, after really studying and understanding the way the right works, I went the other way. I was a so called "liberal" from 2001 until about 2008. Then came the economic crash of 2008. Now? I am neither. What do I believe now? Hmmmm.... Well, government lies, companies lie. No matter if you have big government or small, the lying is just the same. We are all having the wool pulled over our eyes. What we see now is simply a prop. The bailouts, the tax credits, the goddamn stock market. Its all a big show put on by those in power to make us think that everything is alright. Well, it isn't!

I have seen this unfolding for years now. We are at the point in our lives where shit just won't be getting better until it gets much worse. What do I mean by worse? Here is a sampling of what is to come:
1) Contagion effect- more countries will follow the lead of those I listed above. It will spread to all corners of the globe. Those feeling their human rights violated will revolt. It will eventually make its way to our country
2) Oil prices will continue to climb
3) EVERYTHING will become more expensive
4) Hyperinflation- Because money is being printed at a feverish pace, the more money in the system, the less value it collectively has. Imagine a 3 dollar loaf of bread costing you 6 dollars, 9 dollars....(this is a whole other topic I will address soon)
5) Food costs spiking, food availability disappearing. I don't think this will happen immediately, but it will happen.
6) Real estate values plummeting further
7) Job loss- you thought 2008-2009 was bad? You haven't seen anything.
8) Mortgage collapse, more people will not be able to pay their mortgages due to A) high fuel prices, and B) ultimately high food prices. People will feed themselves and their families before paying their mortgage.
9) Bank collapse- there is an estimated 700 TRILLION dollars in outstanding mortgage backed derivatives! We will see something that will make the bank runs of the great depression look like child's play.
10) Municipality failures- states like New Jersey, Illinois and California will not be able to pay their debtors. Surely, the US government would not allow a state to default, but when the extra money is being printed to "prop" up these states, something has to give.
10a) Massive state layoffs, pensions evaporated, wages lowered
10b) Increase in crime against law enforcement- cities are so cash strapped that they have cut back on law enforcement. Criminals will prey on this.
11) Infrastructure failure- roads, bridges, railways, waste management, electric power grids, clean water supply, sewage systems, cell phone towers, etc.... will fall apart from lack of maintenance.
12) Religious fanaticism- Christians, Muslims, and Jews alike will begin looking to their God for guidance. Some will go to the extreme and try to kill us. This is not a time to look up to a supernatural power to save us. You need to focus on what is real. You HAVE to survive.

This list is much longer.

So what do we do? Well, nothing. When civilization collapses, there is nothing you can do! The only thing is to accept it and prepare for it.

What are my suggestions and what am I doing?
1) buy gold, it has true value and is an inflation hedge
2) learn how to plant and grow things
3) buy seeds
4) pay off all debt
5) build community, cooperation with neighbors. Create allies
6) reconnect with family
7) weapons for self defense, training (you need to have the attitude of a survivor)
8) 3 months of food and water
9) First aid supplies

Remember, if you are in the woods being chased by a bear, you don't have to be the fastest. You just can't be the slowest.

Finally, The Kübler-Ross model, commonly known as the five stages of grief, was first introduced by Elisabeth Kübler-Ross in her 1969 book, On Death and Dying.

We are seeing this happen before our very eyes:
Stage 1: Denial
- Many of you reading this are in this stage. I was. "It won't happen to me" and "this is all a bunch of left wing bullshit"
Stage 2: Anger
- This is Egypt. They are pissed off. As we progress down this road, more and more of us will get to this stage. When we start to open our eyes to see the load of bullshit we have been fed, it will create momentum that will lead to civil unrest.
Stage 3: Bargaining
- "I understand I will die, but if I could just have more time..."; "let us try and work something out."
Stage 4: Depression
- "this is it, this is the end."; "I can't do anything about this." People will be sad, they will cry. They will feel despair.
Stage 5: Acceptance
- "It's going to be okay."; "I can't fight it, I may as well prepare for it."
In this last stage, the individual begins to come to terms with his or her mortality.

Stage 5 is where we all need to be AS SOON AS POSSIBLE. Accept that we have a serious problem on our hands that will change the course of human existence forever.

The beautiful thing about all of what I have written here is this: Life WILL go on. This earth is more powerful than the 6+ Billion people on it. We will not see the world "end." People will die, governments and companies will fall. We will witness "Social Darwinism." The strong WILL survive. So if we can make it through this transition, after the dust clears, we will see a new era. Where people will get back to working together.

Thanks for reading

OAC