Tag Archive | "food reserves"

New International Investing Era


A new international investing era could be created by a destructive scientific fundamental that is now so powerful it could overwhelm all other factors determining our wealth. This danger has such power that it could destroy most investors and much worse… end civilization as we know it.

electromagnetic-pulse

Photo from Wikepedia report on Electromagnetic pulse weapons.

The most frightening part is that this force could unleash its destruction on us… now… at any time!

I want to share what, why and when this disaster could happen.

Then, I want to share how you can be protected rather than ruined.  We’ll even see how this, with luck, could be the creator of untold wealth which you, I, and a handful of cautious, insightful investors could share.

Before I explain how to safeguard your family from this possible upcoming disaster, let me explain that I first began to understand the magnitude of the risk after reading the New York Times best selling novel “One Second After” written by bestselling author, William R. Forstchen.

The story had extra meaning for me because it shows life in a small North Carolina town (similar to where Merri and I live during the summer) after an electro magnetic pulse is detonated by terrorists over the United States.

In the story the electrical grid and anything using a computer stopped working due to an Electromagnetic Pulse (EMP) created by just three small nuclear devices, launched from container ships and detonated high above the USA.

Without central communication and distribution, mass devastation and chaos ensued immediately.   The agony was terrible and life almost unfathomably complicated.

What made this fiction meaningful is that the book really documents and details the West’s dangerous reliance on technological systems which are so extensive that no one even recognizes them any more.

Adding to the terror of this book is a forward by Newt Gingrich and and afterword by Captain Bil Sanders (USN) one of the foremost experts on EMP. His comment  on how an EMP exploded over the US would create the Compton effect and how it would have “devastating consequences on our country” should be examined and understood.

It was Captain Sanders’ deep understanding of EMPs that made the warning in this book so powerful.

In a moment we’ll share ways to protect against this disaster… that could happen to all of us… suddenly… at any time.

First here are three facts that you should know.

EMP Fact #1: Many countries, including the US have EMP weapons that have nothing to do with a nuclear bomb and are quite small. They essentially put out a high energy very sharp spike of energy – high frequency and very short wavelength, short duration pulse.

However it is the nuclear EMP device that creates the greatest risk.  These are nuclear bombs that DO NOT CREATE DAMAGE FROM THEIR BLAST, HEAT OR NUCLEAR FALLOUT.   Instead the weapons create an electrical wave that fries just about anything with a computer.  A survey of open sources over the past decade finds that knowledge about EMP and EMP attack is evidenced in at least Britain, France, Germany, Israel, Egypt, Taiwan, Sweden, Cuba, India, Pakistan, Iraq under Saddam Hussein, Iran, North Korea, China and Russia.

Russian and Chinese military scientists in open source writings have shown how to design nuclear weapons that generate an extra powerful EMP effect called Super-EMP that can destroy even the best protected military and civilian electronic facilities.

electromagnetic-pulse

EMP Fact #2:  This risk has grown to such an extent that America’s electrical grid is so vulnerable to terrorist attack that the Homeland Security Committee Chairman Bennie Thompson is pushing a bill to give the energy commission broad authority for “true emergency situations.”

This is explained in a recent USA Today article entitled “Electrical grid vulnerable to terrorist attack”  by Thomas Frank.  Here are excerpts from that article: It sounds like a science-fiction disaster: A nuclear weapon is detonated miles above the Earth’s atmosphere and knocks out power from New York City to Chicago for weeks, maybe months.

electromagnetic-pulse

This graphic is from the USA Today article linked below.

Experts and lawmakers are increasingly warning that terrorists or enemy states could wage that exact type of attack, idling electricity grids and disrupting everything from communications networks to military defenses.

An expert panel that Congress created to study such an attack says it would halt banking, transportation, food, water and emergency services and “might result in defeat of our military forces.”

“The consequences would be catastrophic,” said Joseph McClelland, director of the energy commission’s Office of Electric Reliability. Full recovery could take up to 10 years, he said.

The scenario involves a phenomenon called an “electromagnetic pulse,” or EMP, which is essentially a huge energy wave strong enough to knock out systems that control electricity flow across the country.

The immediate effect would resemble a blackout. Although blackouts can be restored quickly, an EMP could damage or destroy power systems, leaving them inoperable for months or longer.

House Homeland Security Committee Chairman Bennie Thompson, D-Miss., is pushing a bill to give the energy commission broad authority.

At a committee hearing in July, Steve Naumann of energy giant Exelon said the authority should be limited to “true emergency situations.”

The commission studying the threat says the U.S. is ill-prepared to prevent or recover from an EMP, a vulnerability could invite an attack.

“We are not well-protected at all,” said Michael Frankel, who was executive director of the commission.

EMP Fact #3:  If an EMP event takes place, the Western World could quickly run out of food. Here is an excerpt of a transcript of a speech given by Professor Sir John Beddington, chief scientific adviser to the British government, at the GovNet SDUK09 event.  This has become know as “The Perfect Storm” speech.

I spoke here last year at about the same time about the issue of the food crisis and the burgeoning increases in food prices that were being driven by population growth, use of biofuels and so on.

The first problem here is that we really have a major issue. This graph takes a little bit of explanation; it is the ratio of our reserves to our consumption. What it is showing is that last year is the lowest level of reserves that we have had as a proportion of our consumption in years, since 1970 and actually since records were taken of this sort.

electromagnetic-pulse

That means that we’ve got somewhere like reserves of around 14% of our consumption, that implies, give or take, 38 or 39 days of food reserves if we don’t grow any more.

As you can see, it’s the lowest level that we’ve actually had.  Is that a problem?  Well the answer is yes it is going to be a problem.  We saw the food spike last year; prices going up by something in the order of 300%, rice went up by 400%, we saw food riots, we saw major issues for the poorest in the world, in the sense that the organisations like the World Food Programme did not have sufficient money to buy food on the open market and actually use it to feed the poorest of the poor.

But this is England, not North America.  Right?

Beddingdon’s note shows that North America might not be able to rely on Europe for much food assistance and…

America’s food reserves are even worse as explained in this excerpt from last year’s article “The US has no grain reserves” published in the Tri State Observer, Milford, PA. The excerpt says:  Larry Matlack, President of the American Agriculture Movement (AAM), has raised concerns over the issue of U.S. grain reserves after it was announced that the sale of 18.37 million bushels of wheat from USDA’s Commodity Credit Corporation (CCC) Bill Emerson Humanitarian Trust.

“According to the May 1, 2008 CCC inventory report there are only 24.1 million bushels of wheat in inventory, so after this sale there will be only 2.7 million bushels of wheat left the entire CCC inventory,” warned Matlack. “Our concern is not that we are using the remainder of our strategic grain reserves for humanitarian relief. AAM fully supports the action and all humanitarian food relief.

Our concern is that the U.S. has nothing else in our emergency food pantry. There is no cheese, no butter, no dry milk powder, no grains or anything else left in reserve. The only thing left in the entire CCC inventory will be 2.7 million bushels of wheat which is about enough wheat to make 1⁄2 of a loaf of bread for each of the 300 million people in America.” (MY BOLD)

The CCC is a federal government-owned and operated entity that was created to stabilize, support, and protect farm income and prices. CCC is also supposed to maintain balanced and adequate supplies of agricultural commodities and aids in their orderly distribution.

“This lack of emergency preparedness is the fault of the 1996 farm bill which eliminated the government’s grain reserves as well as the Farmer Owned Reserve (FOR),” explained Matlack.

This is backed up by a Scienceblog article that says: “The US Government Has Zero Grain Reserves.”

In 1996, the Federal Agriculture Improvement and Reform Act of 1996 (“Freedom to Farm Act”) called for elimination of government stockpiles of grain.  I’m sure someone thought it made sense, at the time.

Now, the United States government has no reserves of butter, cheese, dry milk, barley, corn, oats, sorghum, soybeans, wheat, rice, sugar, honey, peanuts, canola seed, crambe, flaxseed, mustard seed, rapeseed, safflower seed, sunflower seed, peas, lentils, chickpeas, and cotton.  [Source: US Farm Service Agency, Current CCC Inventory (PDF file)]

The book, “One Second After”, clearly and very dramatically (but I am not sure how accurately) drives home the point that unless a person takes a unique financial stance that his finances, and maybe even his or her life, could be wiped out.   Many military and scientific studies support this monumental economic, social and life threatening risk.

Yet you do not have to ruined by EMP.  You may even find that this potential weapon will create extra ordinary wealth that a few investors will share.  Here is how and why.

First, there is no proof that an EMP event as described above would create quite the havoc mentioned above.

Here is how one scientist whom I have known for years and trust completely, explains this.

“I’m not sure how large an effect the nuclear device would have above the atmosphere — the pulse might dissipate somewhat along the earth’s electromagnetic field.  It would probably take out a lot of communications and military satellites.

“Electronic devices that are not attached to any power source and that do not have an antenna when the EMP pulse hits could survive – even better with some shielding material.”

EMPs could be the driving force for the next investing era.

Just like the nuclear threat in the Cold War…  an EMP attack may never happen.   Yet because it could… the perception of risk… has created a huge rush by many governments to develop new weapons and forms of protection… just as during the Cold War.

This site and our multi currency site have repeated many times how stock market bulls and bears are based on cycles of human interaction, war, technology and productivity.

These cycles are intricately connected with the new waves of productivity that grow from the great human platform of combat. The cycle goes like this.

An economic downturn enhances a war or threat of war. Struggles for survival in the war (like the Civil War, WWI, WWII and the Cold War (WWIII), super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine,  production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet.

Each new invention helped win a war.  Shifting the technology to domestic use… after the war… created a boom.

Each boom leads to excess.

Each excess led to a correction.  The correction creates an economic downturn.

The economic downturn enhances a war or threat of war.

Here we are… in the correction again… at the correct time when we should expect that another war (or threat of war such as the Cold War) should begin to build!   This latest downturn started almost exactly (1998), 16 years after the last boom began (1982)…which began after the last great human struggle called the Cold War.

If the cycle repeats, the struggle should build now due to the poor economy.

The key for spotting the greatest investment opportunities is to spot the next big invention… the technology that will spin out of WWIV.

The key is that a problem must have such severe consequences (such as losing the war and being destroyed) that all stops… all logics of return on investment are ignored.  Technology and research are pushed full steam ahead regardless of cost. The threat must be real and serious… like EMP.

There are seven steps you can take to assure that you are not destroyed by an EMP.

#1:  Move well away from the USA…. to an agriculturally based country.  This is one reason Merri and I have been active in Ecuador for nearly 15 years.

#2: Move to Small Town USA.  Our sites have been looking at the benefits of this for years and why we live on agricultural property.

#3:  Create your own source of food.

#4: Create a local source of hardened energy and communications.  This is one reason our newest real estate purchase is also agricultural property and already has a HAM radio tower installed.

#5: Keep some gold and or silver on hand.

#6: Know how to take care of your own health.

#7:  Hold some assets outside of North America.

Merri and I have already taken six of these seven steps… and are well on our way to completing the seventh step.  From this we learned one really important point.

You should not suffer in the process of  gaining this protection either.

Merri and I did not move to the country… buy our Blue Ridge farm… set up our own food supply… start our garden… buy agricultural land in Florida… get a ham radio tower… buy gold and silver… organize assets out of the US and become involved in taking care of our own health naturally because we were worried about EMPs.  We did so because we wanted to.

Chances are that an EMP attack will NOT take place.  During the Cold War nuclear bomb shelters were not required!

Yet can we take a chance?  Ignoring this risk and with no action is not the answer either.

Instead let’s share ways and lifestyle alterations that protect as they provide joy, satisfaction, better health and enhanced wealth.

You may not be able to (or want) to move your home abroad or to a rural area.   Yet gardening, even in urban areas,  can be healthy and fun.  Holding some precious metals is probably a good investment anyway.  We should be taking care of our health even when their is no threat of war.

When it comes to holding assets abroad… our multi currency course can help.

Since mankind began, every generation has endured some great threat or risk.  Yet here we are… still growing!  Only time will tell whether EMP will create havoc or the greatest new wave of wealth we have seen.  Whichever, Merri and I will be here to share the experience with you.

Gary

The greatest asset of all is the ability to earn wherever you live, which brings everlasting wealth.

This is why we offer our course Tangled Web… How to Have an Internet Business.

A clear mind and healthy body are also a vital assets… plus a second language is a powerful diversification tool.

This is why I am giving everyone who enrolls in our North Carolina or Ecuador International Business & Investing seminar in October or November our “Tangled Web… How to Have an Internet Business Course” (offered at $299) free.

Here are comments from a reader about the way we help:  Thank you for your inspiration and information outlining foreign banking and retirement.  Your comments and suggestions are welcome for planning the steps to evaluate the early stages of living abroad.

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Read the entire articles:

Electrical grid vulnerable to terrorist attack

The US has no grain reserves” published in the Tri State Observer, Milford, PA.

Multi Currency Investing Beats Inflation.


Multi currency investing helps fight inflation.

As the US dollar falls, prices rise for everything….even local goods like food.

This is one reason Merri and I like to live on a farm with our chickens (eggs) and fresh natural fruit and vegetables. Here the blackberries are in bloom along our front yard fence.  We collect enough so that Merri can make a cobbler each week.

inflation-proof-blackberries

This is because there is a growing global demand for produce…wheat…corn.

Apples too but we have plenty growing here!

inflation-proof-apples

In short, people abroad are competing with stronger currencies for US food.

Yesterday’s message, Multi Currency Statistics, showed how this means that inflation is worse than statistics show.

According to US government inflation statistics, core prices described as “Core CPI” have risen just 2.3% in the last year.  Yet this figure does not include the price of food or energy.

In the last year, medical care costs have jumped 4.4%.  Food is up 5.1%.  Energy has risen 16.1%.   Over the past nine months, global food prices have soared 40 percent, while food reserves are at 30-year lows. These non included costs are what we spend most!

Plus according to a recent Reuters are article food prices are about to get much worse.

The article says:  “U.S. food prices will rise a stiff 9 percent a year through 2012, the largest increase since 1979 and the result of record-high crop prices,” the head of an economic consulting company said on Thursday.

“Retail prices on staple American foods rose by double-digit percentages in the last year, according to new data from the federal Bureau of Labor Statistics (BLS). The cost of milk rose 26 percent, and egg prices grew by 40 percent.

“Food inflation could pose a more serious threat to consumers in the US than soaring oil prices. This is because food accounts for 13 percent of spending for average households, compared to about 4 percent for gasoline.”

What does this mean?

Yesterday I went grocery shopping. A small loaf of good sourdough bread was $3.99.

At 9% per annum here is what it will cost each year.

2009   $4.34
2010   $4.74
2011   $5.12
2012   $5.58

A gallon of organic milk yesterday was $8.38.

2009   $9.13
2010   $9.95
2011  $10.85
2012  $11.82

We do not buy eggs thanks to our friendly chickens who live with us on our farm.

As boomers begin to retire on their social security, a loaf of bread and a gallon of milk will leave $2.60 change from a twenty dollar bill…not enough to buy a dozen eggs.

This is why we need multi currency investments to protect against the falling US dollar and fight inflation.

Yet the problem may be worse.

Milk rose 26 percent, and egg prices grew by 40 percent in the US this year.

Worldwide, food prices have risen 45% in the past nine months according to the United Nations’ Food and Agriculture Organization.

This creates enormous opportunity because it is a huge problem.  Problems  create opportunity.

Many people will become poorer because of this problem but wise investors will gain by investing in businesses that help solve these problems.

So what types of problems will a global food shortage create?

We can get a clue about one by looking at the Danish Pharmaceutical Portfolio we track in our Multi Currency Course.

Here is how it performed during the recent global equity set back..

Name                            Invested Amount           Recent Value
Genmab                             50,000.00                    39,903.33
NeuroSearch                      50,000.00                    36,475.09
Coloplast A/S B Aktie        50,000.00                    49,584.82
Novo Nordisk B                  50,000.00                    56,294.62
Alk-Abello B Aktie             50,000.00                    28,053.46
William Demant Hld.          50,000.00                    43,180.33

Why when this sector was slaughtered did Novo Nordisk shares rise 12% in three months?  One reason is this company is one of the largest producers of insulin in the world.  As food grows in cost more people eat less expensive carbohydrate food. Too many carbs in the diet encourage diabetes. Diabetes creates a demand for insulin.

This is another reason we like farm life with plenty of ponds and creeks filled with fish.

inflation-proof-fish

Some are pretty good size as well like this trout our daughter Eleanor fed four of us with!

inflation-proof-big-fish

Those who change, adapt and invest in solutions to problems are those who will profit.

This is why we are examining seven multi currency shares including Novo Nordisk

Until next message good multi currency investing

Gary

Learn more about multi currency investing at our multi currency portfolio course

Learn more about fighting inflation with Ecuador real estate and Ecuador living

See dates for our Ecuador tours and courses below:

Coastal Real Estate Tour

Super Thinking + Spanish Course

Imbabura Real Estate Tour

Ecuador Shaman Tour

Ecuador Import Export Course

See discounts for attending more than one course.

Multi Currency Statistics


Multi currency statistics are important because of inflation statistics.

Inflation, at times, sneaks up like a cat.

inflation-creeps-like-a-cat

This is Alice, one of our barn cats.

Other times inflation rushes in like a lion…such as…now.

Multi currency investing protects us from inflation.

Here is Boots our other farm cat…not dangerous like a lion or inflation…unless you are  a mouse I guess.

inflation-cat

Inflation is worse than statistics suggest. This is because of the nature of the statistics.

Most mornings, when we are at our Blue Ridge farm,  we take an early hike in the woods.  Our two cats, Boots and Alice, join us with our hound dog, Ma. This seems strange to me. I have never had cats who like to hike along…but these two do.  Our cats and dog get along…unlike wealth and inflation which do not.

Often we stop at the pond. Boots and Alice look for mice. Ma sniffs everything.  I sit and reflect on economics, reality, statistics, multi currency investing and inflation.

It is beautiful here…mists play on the meadows and the shadows are long.

inflation-thinking-time

The shadows remind me of distortions created by statistics.  How numbers hide reality and how this fact and the change it heralds will make some multi currency investors rich.

Most investors will become poorer…because inflation and wealth do not get along.  Inflation hides reality.  Most investors are tricked.  They do not see economic reality  and they do not adapt and make multi currency investments or at least investments that really fight inflation.

According to US government inflation statistics, core prices described as “Core CPI” have risen just 2.3% in the last year.

Yeah…let the statistician that came up with this number go food shopping!

Believe it or not the Core CPI, which is so often used by statisticians to describe  inflation, actually strips out food and energy, because these prices are volatile.

A better guide to real inflation is the “Core Personal Consumption Expenditure Price Index (PCE deflator)”.  This index includes the average increase in prices for all domestic personal consumption. It’s indexed to a base of 100 in 1992 and derived from the largest Gross Domestic Product component, personal consumption expenditures. This includes important costs such as  housing, most insurance, motor vehicles, energy, food and medical expense.

This index rose 2.1% last quarter.

2.1% per quarter inflation is a bit more serious than 2.3% a year.

Yet even this serious rise masks the reality that many of us face because even the PCE deflator includes things we do not buy often…such as computers.

The big costs…that really take a bite, especially for those planning to retire or go on a fixed income are food, energy, medical expenses and insurance.

In the last year medical care costs have jumped 4.4%.  Food is up 5.1%.  Energy has risen 16.1%.

Over the past nine months, global food prices have soared 40%, while food reserves are at 30-year lows. The rising cost of food is becoming a major source of global social instability and economic hardship.

Yet this is just the beginning of inflation problems as we will see in tomorrow’s message.

Until then, good global investing.

Gary

P.S.  Remember.  Problems create opportunity.

Big problems create big opportunity.

Bigger problems create bigger opportunity.

The biggest problems create the biggest opportunity!

This is what I love about capitalism – humanity serving one another- at work.

Take inflation’s push on energy prices, as an example. Higher fuel costs have forced some airlines to charge an extra $15 for checking a suitcase.  That”s quite a problem.

Solutions anyone?

One answer is that some hotels have added a suitcase buyback in their marketing.

Stay with the hotel and they’ll knock the $15 baggage cost off the room bill! Problem solved.  The consumer remains even, and the hotel that adapts prospers.

Those who change, adapt and invest in solutions to problems are those who will profit.

This is why we are examining  seven multi currency shares.

Learn more about multi currency investing at our multi currency portfolio course.

Learn more about fighting inflation with Ecuador real estate and Ecuador Living.
See dates for our Ecuador tours and courses below:

Coastal Real Estate Tour

Super Thinking + Spanish Course

Imbabura Real Estate Tour

Ecuador Shaman Tour

Ecuador Import Export Course


See discounts for attending more than one course.

One really important part of fighting inflation during times of change is maintaining a positive attitude and good health. This is why we cook as much as we can with local natural foods like these blackberries that are blooming just below the house. Learn more about how to enhance health, energy and vitality at Cotacachi Food.

inflation-fighting-thoughts

Learn more about how blackberries can help enhance health at Blackberry Pie.