Some disturbing news came out of Washington on March 16th. The President of the United States has decided to expand upon the 1950 Disaster Preparedness order. This order gives the President of the United States total control over all natural resources in the country during war time or emergencies. The new order has expanded the power of the President to control everything from food, transport, production, energy, materials and water. I say how can this be possible? I see the possibility of abuse here. What could go wrong? Should we let our natural resources be controlled by a handful of people? Here is the order.
Section 101. Purpose. This order delegates authorities and addresses national defense resource policies and programs under the Defense Production Act of 1950, as amended (the “Act”).
(b) assess on an ongoing basis the capability of the domestic industrial and technological base to satisfy requirements in peacetime and times of national emergency, specifically evaluating the availability of the most critical resource and production sources, including subcontractors and suppliers, materials, skilled labor, and professional and technical personnel; - White House
Additionally, each cabinet under the Executive Branch has been given specific powers when the order is executed, and include the absolute control over food, water, and other resource distributions.
Sec. 201. Priorities and Allocations Authorities. (a) The authority of the President conferred by section 101 of the Act, 50 U.S.C. App. 2071, to require acceptance and priority performance of contracts or orders (other than contracts of employment) to promote the national defense over performance of any other contracts or orders, and to allocate materials, services, and facilities as deemed necessary or appropriate to promote the national defense, is delegated to the following agency heads:
(1) the Secretary of Agriculture with respect to food resources, food resource facilities, livestock resources, veterinary resources, plant health resources, and the domestic distribution of farm equipment and commercial fertilizer;
(2) the Secretary of Energy with respect to all forms of energy;
(3) the Secretary of Health and Human Services with respect to health resources;
(4) the Secretary of Transportation with respect to all forms of civil transportation;
(5) the Secretary of Defense with respect to water resources; and
(6) the Secretary of Commerce with respect to all other materials, services, and facilities, including construction materials.
(e) “Food resources” means all commodities and products, (simple, mixed, or compound), or complements to such commodities or products, that are capable of being ingested by either human beings or animals, irrespective of other uses to which such commodities or products may be put, at all stages of processing from the raw commodity to the products thereof in vendible form for human or animal consumption. “Food resources” also means potable water packaged in commercially marketable containers, all starches, sugars, vegetable and animal or marine fats and oils, seed, cotton, hemp, and flax fiber, but does not mean any such material after it loses its identity as an agricultural commodity or agricultural product.
How do I translate this? Is the Executive branch telling us that an expanded war is on the horizon, and that they are worried about shortages? How will the American people respond to another war? Spring has arrived in America, how will Occupy 2012 play out?
If there is war I do believe it will bring instability to an already unstable market and world economy. During war time nations tend to spend huge amounts of money causing increased inflation. This translates into everything costing consumers more. Oil prices will continue to rise as well as anything you purchase at the market.
What can you do to prepare for the increased costs ahead?
- Plant yourself a garden and learn how to can to keep your grocery bill under control.
- Buy some Precious Metals like Silver and Gold. My choice is Silver.
- Buy yourself a small portable Solar unit.
- Buy a sturdy bicycle with a rack on it. My Trek is a great bike. Ride it!
- Find like-minded individuals in your community.
- Make sure you have access to water or store some.
- If you are adventurous like myself, expatriate to another country and start a new life.
I was raised by a family who taught me to always be prepared for the unknown. My family always had reserves for times of emergency. Do you want to rely on the government when instability arrives? It looks to me like the government is preparing for something big, maybe you should do the same.
Tim Geithner has announced that the US Treasury is dipping its fingers again into the Federal Employee Pension Fund. Over the last few years governments are getting more and more comfortable raiding the funds set aside for its citizens. The US has been raiding Social Security for years bringing it to the brink of insolvency or should I say a corpse. Here is the breakdown of the nations that have decided to get careless with its citizens retirements.
- Portugal raided its Pension Fund to meet its deficit requirements to the tune of 5.6 Billion Euros.
- Ireland raided its Pension Fund to meet its deficit requirements to the tune of 24 Billion Euros.
- Argentina raided its Privately managed Pension Fund to meets it deficit requirements to the tune of 29 Billion Dollars.
- Hungary is attempting to change 15 Billion Dollars of Private Pension Funds back into the State system.
The US Treasury decided it was ok to suspend reinvestments in the Federal Pension Fund. Over the last 20 years the US Treasury put its fingers in the cookie jar six times to avoid hitting the debt ceiling. The Obama administration has its back against the wall. I believe they fear another fight over the debt ceiling, during an election year. Tim Geithner has effectively kicked the can down the road for a few months. The debt ceiling needs to be addressed, this is not going away. We all know that they will just raise the debt ceiling again. Do you think they will ever cut spending? I have my doubts.
How about IRA´s and 401k´s Mr. Geithner? There is around 6 Trillion Dollars of assets residing in IRA´s and 401k´s. That is a substantial amount of money and seems ripe for the picking. The US Federal Government has shown that it has no reservations about taking what does not belong to them. If Social Security was a piggy bank for politicians just think how they might look upon our IRA´s and 401k´s.
What would the US Treasury do first? They might require US citizens who put a portion of their salary into 401k´s and IRA’s to invest a certain percentage into low paying US Treasuries. Then imagine that situations further deteriorate. The US Treasury then decides that you have to increase your purchases of US Treasuries. Then the worst case scenario happens and the US defaults or hyperinflation occurs rendering your retirement portfolio worthless. I hope it never gets this far, but we prepare for the worst and hope for the best. The Federal Reserve is looking more and more primed for QE3. They will not stop, it might as well be called QE Infinity. Prepare yourself, I know I am.
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