My family and I are leaving early this morning to train on our survival skills so we will be more prepared in the event of an emergency.
It is important to prepare and practice with your supplies and equipment so that when the time is right you will be ready.
I will try to take some pictures to illustrate how we train.
There are only three major currencies in use for global trade- the US Dollar, the Japanese Yen, and the Euro.
The Euro is the official currency of the EU (European Union) which is made up of most of the countries in Europe. Even though the European countries all have their own national governments they do not have their own money or the ability to print money or to set their interest rates. Both the US and Japan, and every other country in the world are able to “manage” their economies through printing money, controlling money supply, and establishing interest rates.
The EU has no such luxury for each country, and it has led to massive problems as many predicted would happen. The Southern European (Club Med) countries Greece, Italy, Spain, and Portugal have huge deficits in their socialist welfare state countries and the last ten years of easy money and low interest rates in Europe have put them in a situation they can’t get out of financially. The voters of Germany and France are tired of bailing out these countries and unwilling to throw good money after bad.
What does this mean?
The Greek government is within days or weeks of a hard default- people who hold Greek sovereign (government) debt will receive 0 to 20% max of their money back. Most of the holders of this debt are European banks and this loss will destroy a lot of the major banks. There are also foreign (US, China, Japan, etc) banks with somewhat less exposure. Once Greece and these banks fail, the next domino is likely Italy, followed bu Portugal and Spain. This will also put pressure on France and even Germany.
The “one size fits all” Euro doesn’t fit all of the member countries, and this debt crisis will lead to the breakup of the Euro.
Since we are all related in the global economy, this will have serious negative impact on the US economic growth for the next few years. The best strategy is to have some food and water stored in case of supply disruptions, and to put some wealth into gold and/or silver to preserve some buying power in the worst case scenarios.