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Have Cash On Hand To Survive For Three Months: “No Institution Is Safe”

Have Cash On Hand To Survive For Three Months: “No Institution Is Safe” thumbnail

Economic forecaster Martin Armstrong, who is known for having accurately predicted major events like the Savings & Loan crash, the collapse of Japanese financial markets and the destruction of the Russian economy almost to the day, says that a major turning point is coming to the global paradigm this October. While stopping short of calling for an all out crash, Armstrong’s cyclical turning point of 2015.75 suggests that very big changes are set to take place.

But how do you prepare for the uncertainty of what’s to come?

Armstrong says you’d better have some cash on hand for short-term disruptions, just in case your financial institution shuts down like they did in Greece:

No institution is safe for all can be closed by decree, including credit unions. This is true of safe deposit boxes as well. They may not confiscate it, but they can deny access. PLAN B should be an amount of cash that is enough to live on for at least one month if not three months insofar as basic essentials, not mortgages, etc. Effectively this is food money and gas for the car. Gold coins will not help in this case, nor will silver coins, for we are not talking about trying to preserve wealth; this is the emergency stash for living purposes in case you need CASH, which is recognized by everyone. Try explaining a silver quarter to a teenage clerk who has no authority to accept a quarter for more than a quarter. Precious metals will be more of an underground economy of barter; it will not be useful at the local supermarket.

Also, keep in mind that cash could come in handy in a computer failure, whereas you cannot access a bank, exchange, etc. just to survive for there could be a scenario where not even plastic credit cards or debt cards would offer any help.

Source: Armstrong Economics

If America goes the way of Greece and the government enacts capital controls you can fully expect hours-long lines at ATM machines and banks just to get your daily allotment of $50 – $100. That, of course, is not enough for the majority of Americans to cover their most basic expenses including mortgage payments, food, and other necessary expenditures.

In such a scenario, having a one to three month reserve of cash will come in handy.

And though Armstrong says that gold and silver will likely not be accepted at your local super market, he has also previously noted that gold itself is an asset of last resort to preserve wealth in a situation where the public has lost confidence in their governing bodies. Thus, while you may not be able to hand a pre-1965 junk silver quarter to your grocery clerk in the immediate aftermath of a financial emergency, barter markets will likely emerge just like they did in Greece following the initial collapse of that country and at that point trading directly with gold, silver or other physical assets like liquor, cigarettes and food may become commonplace.

It should be clear that something is very wrong in financial markets. There is a wide body of evidence confirming this assessment, but most recently we learned that China has dumped over half a trillion in dollar-denominated assets and many of the same scenarios we saw in 2008 are playing out all over again.

While forecasters like Armstrong understand that the system under which we currently operate is set to fail, what’s difficult to predict is exactly how such a collapse may play out.

Thus, preparing for a wide range of potential scenarios is in order and that means positioning yourself to survive a short-term disruption to the regular flow of commerce, as well as longer-term scenarios that affect the credit markets and the systems that depend on them.

Should the system buckle we can expect widespread rioting, panic and confusion, something for which the government has been actively training personnel to handle on a mass scale.

Significant changes are coming. Be ready for them.

SHTF Plan



20 Comments on "Have Cash On Hand To Survive For Three Months: “No Institution Is Safe”"

  1. dave thompson on Sat, 25th Jul 2015 12:29 pm 

    This advice should always be. Having a month or two of cash on hand however, is not feasible for most, being that we live in a debt riddled world of make believe.

  2. ghung on Sat, 25th Jul 2015 1:11 pm 

    “PLAN B should be an amount of cash that is enough to live on for at least one month if not three months insofar as basic essentials, not mortgages, etc. Effectively this is food money and gas for the car.”

    Uh,, doesn’t it stand to reason that, in the event of the above scenario, there won’t be much to buy with that cash after a few days. Our just-in-time inventory system combined with the “financial system disruption” tells me having cash may be advisable, but already having the necessities that cash can, or can’t, buy, is preferable.

    Got beans? Got butt-wipe? Got several months of your meds?

  3. apneaman on Sat, 25th Jul 2015 4:01 pm 

    Good article describing an ongoing example of the normalcy bias and shifting base lines.

    America Goes Nuts

    “Hate to say I told ya so, especially when it’s this grim, but as the “American Dream” is morphing into the American Nightmare, the country is entering a profound state of sheer and utter psychosis. I’ve often said that mass shootings will eventually be so common in America that they will merit no more attention than the average traffic accident or burglary. It seems that day might have already arrived: There have been 204 mass shootings — and 204 days — in 2015 so far ”

    “When you actually drill down and read the individual stories a pattern starts to emerge.”

    http://hipcrime.blogspot.ca/2015/07/america-goes-nuts.html

  4. Gil on Sat, 25th Jul 2015 4:25 pm 

    Three absolute necessities: food, water and shelter. First make sure that these are covered. If the national economy goes belly up – even for a few weeks/months – life will be very different and very difficult for many. Keep your gas tank filled, have a back up generator and a supply of fuel, don’t get obsessed with guns, society will most likely continue blundering along. One of the great challenges of an economic meltdown will be boredom.

  5. BC on Sat, 25th Jul 2015 7:09 pm 

    Agree apneaman and Gil.

    Note that the typical US household spends 50% or more of disposable (after-tax) income on housing and auto transportation. By definition, this is a net loser for most households as a share of composition of household spending. Getting rid of one car and/or downsizing and/or doubling or tripling up for housing and transportation is a given for the typical household hereafter.

    IOW, our debt- and auto-based, hyper-materialistic, hyper-individualistic, complex, high-entropy society will by necessity become more communitarian like Asia, Latin America, Africa, and Mediterranean Europe.

    We will be less geographically mobile, spend less and be financially and materially poorer per capita while maintaining spending per household.

    Besides, the US-Canadian-Aussie model has a once-in-history anomaly, not a sustainable model for the rest of the world, so we will be reverting to the extended-family, communitarian arrangement that prevailed for 99%+ of our existence as social creatures.

    This argues even more strongly for the need to develop self-sufficiency and resiliency WRT to food, shelter, utilities, maintenance skills, and learning to cooperate and compromise with other like-minded family and extended family.

    Those who do this in the short and intermediate term will likely see higher returns in the long run than borrowing tens of thousands of dollars for a post-secondary credential or going hopelessly into debt for a mortgage for a suburban/urban structure that only creates “wealth” for the lender or the guy from whom you bought the property.

    A household of 4-6 people or more working 4-6 part-time jobs, being more self-sufficient, and possessing equanimity and a cooperative, compassionate intention will be a wealthy household, even with a low-to-median income.

  6. BC on Sat, 25th Jul 2015 7:15 pm 

    “Is Humanity Suicidal”?

    http://www.ecobuddhism.org/wisdom/psyche_and_spirit/edward_wilson/

  7. apneaman on Sat, 25th Jul 2015 8:32 pm 

    BC, in addition to a return to the long term multi generational family unit, I think we will see many people convert their over sized homes into small suites and boarding houses as was once common. Of course this is a neo liberal heresy even though it contradicts their economic freedom rhetoric, so it will be countered with even more regulation that favors them and their bureaucratic enforcers, but it will be loosely disguised as protecting health, safety, property values or some other angle. Folks will do it anyway when it becomes one of the only options left for owners to continue to pay their mortgage. Many apartment renters will swallow the pride and swap some comfort and privacy so they can keep driving and for some it will be a matter of eating. It’s only anecdotal, but I have been checking craigs list in the Vancouver area for about 6 months now and there seems to be an increase in listings for people looking for roommates, looking to rent a room and owners renting out bedrooms.

  8. Makati1 on Sat, 25th Jul 2015 9:58 pm 

    apneaman, I agree, except, most homes built in the last half of the 20th are cardboard boxes, never meant to last without constant and expensive maintenance. Most cannot be heated except by fossil fuels in large quantities. The roof is only good for about 20 years until it starts to leak. The washers and valves will wear out in a few years and make faucets and commodes unusable. And on and on.

    We do not build with brick and stone, like they did in past centuries. Homes will not last for hundreds of years. One termite infestation will bring down a stick built home on a mater of a few years.

    Most were built to the required MINIMUM code. I know. I was in the housing industry for most of my working years. Maximum profit, not maximum value was the mantra. Pine sticks, chip board, vinyl, asphalt, plastic, etc. in huge sizes to give the impression of wealth. We will be going back to wattle and daub soon enough, if we are lucky.

  9. PrestonSturges on Sat, 25th Jul 2015 11:09 pm 

    I’m going to need cash to pay my mortgage? I’ll mail them a check and tell them to deal with it.

  10. Makati1 on Sat, 25th Jul 2015 11:56 pm 

    Preston, do you assume that the mails will actually be working or the banks will be open to receive checks? Interesting …

  11. antaris on Sun, 26th Jul 2015 12:34 am 

    Well Ap what do you expect. We bought this place in New West 11 years ago for 325 and it would list today for over 900. How the hell can most people besides rich immigrants afford to live here.

  12. apneaman on Sun, 26th Jul 2015 1:37 am 

    antaris, I’m not anti immigrant, my grandparents and great grand parents we immigrants, but unlike many from this new wave you mention, they paid their fair share and played by the rules from the day they got here till the day they died. Same as many working people today. If the SHTF hard enough, it could turn out badly for them. It’s still early days, but you can already hear the cries for scapegoating and vengeance starting. I have noticed a big increase in violent rhetoric in the last year and not all of it is just from right wing nuts anymore.

    Why is a Richmond B.C. neighbourhood with many expensive mansions also one of the city’s ‘poorest’?

    “More than six out of 10 Richmond residents were born outside the country, the highest rate of any city in the country. If many people who live in luxury Richmond houses are reporting low incomes to Revenue Canada, Halsey-Brandt is among those worried it means many are not paying their fair share of taxes for social services.

    The former mayor said it’s revealing that the roughly 16,000 residents of Thompson, most of whom live in single-family homes, are second only to those who live in the downtown core of Richmond for reporting poverty-level incomes. Richmond’s downtown consists mostly of small condos and rental units.

    “Those of us who live here know that this is nonsense. Since many of the families live in over $1-million homes. It is simply under-reporting of income that causes the problem.”

    http://news.nationalpost.com/news/canada/why-is-richmond-neighbourhood-with-many-expensive-mansions-also-one-of-the-citys-poorest

  13. theedrich on Sun, 26th Jul 2015 2:47 am 

    If what Martin Armstrong says comes true, the American electorate will have only itself to blame.  The something-for-nothing, everybody’s-equal, bring-in-the-(sniffle)-Third-World mentality is the American Way.  There are many examples of voters deliberately re-electing criminals and drunkards to important office in order to perpetuate this Way:  Marion Berry in DC, Kwame Kilpatrick in Detroit, alcoholic Senator Ted Kennedy in Massachusetts — to name only three of the most blatant examples.  The corruption of Chicago and New Orleans is world famous.  It is out of this kind of behavior that we have gotten all of our insanely spendthrift policies — often justified, of course, with sob stories spread through the usual MSM propaganda organs.  As many have already noted, America is Greece written large.

    Nonetheless, given the Yankee demand for fantasy, we can be assured that the Masters of the Universe will pull some rabbit out of the diversionary hat to keep the masses befuddled yet again;  the sheeple always prefer drivel to admitting the truth and throwing their princelings overboard.  Another war, anyone?

  14. Davy on Sun, 26th Jul 2015 7:51 am 

    Ape Man said “antaris, I’m not anti immigrant”

    I grew up pro-immigration. I was an early believer in globalism. I am talking the early 80’s. In the 80’s and 90’s I read “The Economist” religiously back when it was highly respectable. It appeared then if we could lift the world’s economic levels everywhere we could solve allot of problems. Theoretically this is true and this is why the lure of Econ 101 is so strong. Reality is another story as we see today and the reason Econ 101 is global suicide.

    How can one not like economies of scale and comparative advantage in action if one ignores long term sustainability and resilience? It was only later around 2000 when I saw where all this was going that I became against growth and globalism. I knew about peak oil and ecological limits in the late 80’s but I believed globalism would solve these problems.

    We are stuck with what we have now because most of us cannot survive without globalism. Now it is all about mitigation and adaptation to a world nearing collapse. Anyone complaining and wishing the end of globalism is wishing their death because few will survive the end of globalism. We best respect the fact globalism keeps most of us alive now.

    I am against immigration to my area because we are in overshoot by consumption standards mainly but also population standers per historic norms. Immigration just makes both conditions more difficult to mitigate and adapt to. My wife is Italian. She has been here for 15 years. She studies here and landed a high paying job and decided to stay. So I am directly touched by immigration.

    My point is we will soon be in a collapse cycle. Immigration will make that worse. The US should limit immigration. Every area that can should shut immigaration down if they care about collapse adaptation. This is unrealistic and difficult if not impossible in a complex global arrangement we are in. I am talking in an abstract opine with collapse in mind. Immigration can only make mitigation and adapting to collapse worse “PERIOD”. This is true nearly everywhere because nearly everywhere is in either complexity overshoot or population overshoot.

  15. joe on Sun, 26th Jul 2015 8:11 am 

    It’s either immigration or higher birth, the government prefers low birth with high immigration because it promotes efficient living and improves living standards. High birth/low immigration is not preferable because it’s a much higher investment.
    The treat the labour force exactly how they treat an IPAD. Cheaper finished product from abroad brings in more profit.

  16. Davy on Sun, 26th Jul 2015 9:46 am 

    Forget it Joe the government is not that organized and sophisticated. Immigration reasons and policies are all over the spectrum.

  17. PrestonSturges on Sun, 26th Jul 2015 2:17 pm 

    >>>Preston, do you assume that the mails will actually be working or the banks will be open to receive checks? Interesting …

    Why are assuming that in TEOTWAWKI that the only thing left functioning is the mortgage company which will be waiting for the Pony Express to deliver bundles of cash?

  18. Pops on Sun, 26th Jul 2015 4:53 pm 

    I can’t remember the last time I couldn’t live for a month without any money, without leaving the house for that matter. 3 months would be more typical. No big deal, just learn to live out of it anyway and voila, before long you’ve got a cushion.

    But yeah, cash is king. Cash, plastic, cell phone make a pretty good bug out bag starter kit.

  19. alokin on Sun, 26th Jul 2015 6:19 pm 

    Who actually follows Armstrong? What is his track record? That he predicted something rightly does not mean that he some of his predictions failed, but they are not mentioned.
    Not that I think our economic system is stable, but predicting a date of economic disuption is tricky.

  20. idontknowmyself on Sun, 26th Jul 2015 6:56 pm 

    i have cash at hand but I also prepare for what I called the next leg down of the human specie.

    Now, you call the police, they come right away, street are relatively safe, store are well stocked with food and gas, the drinking water from the tap is disinfected.

    The next legs down will be, police might not come, more violence, chronic shortage of all the life necessities like : disk washing soap, clothing soap, chlorine, tap water need to be disinfected before drinking. I prepare when the whole will like Argentina, Greece, Ukraine.

    I started two year ago to store on all life necessities before, I bought a pressure canner, I have two bicycle with special hitch that I made with special bike trailer so I have a transportation alternative to car, i have portable hiking stove working with propane, white gas, alternative heating source like a propane heater and kerosene heater.

    I created my self a buffer, so when society move into a lower level it does not affect me right away. I will be able to sit there and watch what happen and make the best moves possible. I gave myself some breathing room so I don’t panic right away as the system moves into lower level of quality of life.

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