Either make a list or work on someone else’s. Be deployed or get deployed.
It’s that simple. What’s hard to grasp is how small steps, decisions and work accumulate over time, multiply and lead to freedom. And, yes, I’m bypassing “Self-Employment” and going right to the heart of the matter. State conjured terms don’t lead to a purposeful life. The truth shall set us free and it begins with precise language.
People who’ve done it know that deploying yourself is a project that can’t be checked off as done. There’s always something needed to keep it going. Through it all . . . one thing matters most: The next thing. The next thing is never so critical than when it’s the first thing. So, say a prayer and align your being and talents with the Creator of all things . . . and then make a list and get to work. That’s what Self-Deployment is. The first 100 steps are the hardest. Here’s the first 20 to optimize your trajectory.
Bet they’re not what your think.
20 Ways to Self-Deploy
Find or create a place where you can think clearly. Bring a notebook, pen and ten bucks to get a cup of tea, snack or whatever else keeps you from concentrating. If you have a desk at home then . . . .
Clean up your desk – Until it doesn’t distract you anymore.
Make a list of everything you have to do until you can’t think of anything else. If you’re returning to this list from a previous session do this step again until your mind is clear.
Write down everything you can’t get off your mind. Anything you can’t stop thinking about is eligible. Keep writing even if it takes all the time you have available. If you’re returning to this list from a previous session do this step again until your mind is clear.
If you get stuck or overwhelmed go workout at the gym. That’s it, you’re done for the day. Don’t feel bad. This is the best thing you could possibly do to get unstuck for tomorrow or later.
If you already have an idea –Brainstorm. – It’s no good to move on to the next step if you can’t wait to write everything down about a new business idea. Who knows? It may just be the one! But, hold back that judgment for now.
Get organized – Build the Ark before the flood. If you’re scattered now it only gets worse. All this this purging and brainstorming tends to overwhelm personal organization. Start improving your system now. Ideas are the fuel of the freedom machine. Learn how to capture and organize them. GTD may be the optimal place to get started..
Learn How to Discover Your Life Purpose in About 20 Minutes. Purpose is key to everything even if you don’t know what yours are, yet. Nobody wants to climb to the top of a ladder only to find it’s resting against the wrong building.
Understand Your Optimal Equation– This is how the big picture fits together. Knowing your purpose is the best way to start. However, even when you do other variables of your life can still drag you down. The more self-knowledge you have about the complete range of your strengths, weaknesses, values, goals and purpose the better chance you have at optimizing the work you do in any environment. For now, move on to discovering you strengths.
Build on your strengths. Purchase and read StrengthsFinder 2.0 to discover your strengths. If you want to move forward without the benefit of the book then go ahead and attempt to list them all out. I recommend the book, however, because it’s hard to recognize our own strengths.
Learn How to Find Work in Any Economy– See if any of those jobs interest you. If they do, can you provide those services as a business instead of working a job? If so, then vett that business after you . . .
Create a Bucket List. We all have one. The only difference between you and everyone else is that you’re going to write yours down. Want to climb the pyramids? Dive the Great Barrier Reef? Fly your own helicopter?
List every Life Goal you have. Unlike your bucket list, these are personal development milestones, levels of expertise, accredidations, states of being that provide inner satisfaction.
Create a Not To-Do List. – This is a great technique to free up the time needed to work yourself free. If you’re currently working a job then you need all the little snippets of time you can get your hands on.
Cut Back to The Essentials. Make a list of all expenses you could cut to make your life easier. Be brutal. By now you know that nothing matters more than freedom. Let go of all the crap costing money you could use to get free. Don’t make others free in exchange for things you don’t need. Get back to basics and Tools that multiply your productivity.
Take a Little Trip – Not even at step 20 and I’ll bet your exhausted. These ‘little’ steps pack a punch. Alright, forget about everything and take a little trip off your beaten path. Go feed the ducks at the pond or ice skate around them. Row, row, row your boat gently down the stream. Don’t come back until you stop giggling for no reason.
SELL what you can, DONATE what you will and TRASH the rest. Trash everything you don’t need. List what you could sell to free up space, clutter, maintenance and money. Look in your garage. Stuff you don’t use is expensive in more ways than one.
Outsource your weaknesses. Yeah, I know you can’t afford it. Be creative. Swap services with a buddy. Anybody from church need a place to stay for the summer? Offer a college student a part time job for room and board. Honey, can you do me a favor? etc., etc. . . .
Use your job to break free. Purchase and read The 4-Hour Workweek. This is a great tool if you’re trying to work yourself free of a job.
What, no business plan? Uhhhhm, those are for getting others to loan you money. By step 21 you’ll be on your way to creating money . . . but that’s a topic for another day. Work on one or two of these per day until they’re all done. On the way to completing the first 20 you’ll map out the first 100 or more. Those are the hardest, remember? If you lose your way repeat these rather haunting two sentences to yourself:
Either Make a list or work on someone else’s. Be deployed or get deployed.
A reader I haven’t met became a Rifleman on Sunday and credits my essay with finding out about Appleseed. Hearing the news truly made my week!
Though working on a few candidates at home they’ve yet to attend an Appleseed. But, America’s latest Rifleman, Mark Hudson, went a step further and managed the feat of documenting his training while mastering it. I hope it’s not too long before Mark receives word that the next Rifleman found Appleseed through his article (Which contains excellent checklists and pictures to inspire and assist in preparing for the event)!
Of course, not everyone writes. Just telling folks what you’ve been up to is enough. Those inclined to listen pay more attention to actions than words, anyway; something Appleseed founder Fred knew from the start, no doubt.
All week I’ve been thinking about the popular notion that everyone on the planet is only six degrees of separation away from each other. I think it’s only two degrees for Rifleman. After posting on a favorite forum about Mark’s success one of the Appleseed instructors who worked with Mark, last weekend, actually saw and commented on the post!
To Those Who Have Ears
There’s no way around the looks you’ll get when recommending Rifle training over another trip to Disneyland. Guns are provocative by nature like a beautiful woman. Speaking of which, my wife was concerned watching me gear up for Appleseed. It was fun to return home and burst her bubble with pictures of families, father-daughter teams and boyscouts right along side the warriors she was expecting.
It wasn’t long after that Isabel was dropping hints that she’d be willing to learn if she had her own rifle (Of course!). So, I bought her the one she picked to go with her outfits, in black & silver.
[Photo taken just after Isabel’s promise to attend the next Appleseed with her husband. She is holding the bribe it took to extract that promise.
What a natural and relaxed stance for a gal who’s never picked up a rifle. Now, if that elbow was vertical under the stock and . . .]
Isabel says she always wanted to learn to shoot and my enthusiasm made her speak up. Make that zero degrees of separation in the Gillespie household.
I planned to make this a longer article by mapping out ways to overcome common objections to the innumerable benefits of Rifle training. However, I’m learning from experience that it’s best to save words for those who have ears:
If you don’t see the Liberty aspects of the training then go to learn about your Heritage.
If you don’t care about the Heritage aspects then go for the Marksmanship.
if you don’t care about the marksmanship aspects then go for Precision.
If you don’t care about precision then go to spend time with family members that do.
If you don’t think they need the company then go to meet quality people who are passionate about any one of the above.
If none of these things motivate you then volunteer to babysit for someone who does. . .
Which brings me to something else I learned from Mark that will serve to keep future articles more brief and to the point. As with so much worldly wisdom the Greeks said it first in Latin, “Verbum sat sapienti” or
“A word is sufficient to a wise man”.
After reading some of Mark Hudson’s views on Life, God and Family I think we get a rare glimpse of one, below.
Family oriented expert rifle training? Yes, happening at a range near you thanks to the Appleseed Project. You don’t have to go to Switzerland, anymore, to find whole families at the rifle range!
This is expert marksmanship being taught by enthusiastic riflemen who know what they’re doing. You won’t be awarded your Rifleman Patch until you’ve earned it. And what it takes and the word “Easy” don’t belong in the same sentence.
According to Fred, the man who started the Appleseed Project, “The purpose of the shoot is to promote history and marksmanship, to
provide marksmanship training opportunities, to train people to become
Riflemen and to teach them now to train other Riflemen”.
“April 19th, 1775, When marksmanship met history and the heritage began.”
“Liberty, Heritage, & Marksmanship“
“Are you a Rifleman or a cook? Attend an Appleseed event and discover your heritage.“
Rifleman Introductions
I recommend four articles written about Appleseed by two esteemed Riflemen. Read Bill Buppert’s article about his second Appleseed back in 2008 where he brought the whole family “On The Road With the Appleseed Project: Creating Liberty One Rifleman at a Time”. Bill contributes his expertise through Appleseed to “Wake up the sleeping giant in America”. He kindly recommended first shooting .22LR and setting up my Ruger 10/22 with Tech Sights for which my shoulder and bank account are thankful.
My first Appleseed was in Sacramento, two weeks ago. The full service range is in a breathtaking part of the country. The fresh air and scenery were a perfect backdrop for an inspiring day.
Apart from the welcoming smiles of the volunteer staff the first thing that struck me was that whole families were there for the training! There were also two father daughter teams and three father son teams.
One third of the attendees were women including three rifleman trainers. Perhaps the only thing more impressive about the lovely ladies on the next mat over is that they were outshooting the men! Grrr. . .
The Rifle
I brought a Ruger 10/22 with tech sights and a plain GI sling with six magazines though four would have been fine. See Mas Ayoob’s Guns of Appleseed or Appleseed’s Liberty Training Rifle for tips on setting up your rifle.
Training for Precision
The training starts with the big things first moving in a circle around your shooting position. Every physical and mental factor leading up to the bullet exiting the barrel is covered. The quality of the shot is viewed as a reflection of the quality of the setup, trigger squeeze and follow through.
Every detail counts in an endeavor of precision and the training involves two days of getting every aspect of the setup into your muscles and bones. For the purposes of this article, however, I’ll briefly describe two aspects of the training that I particularly enjoyed: Natural Point of Aim (NPOA) and firing the shot “By the Numbers”.
What follows are this budding Rifleman’s summary of two, of many, aspects of the training. They give a flavor of the training though words are no substitute for the real thing.
Natural Point of Aim
The idea of NPOA is to setup your body around the rifle so that both are in a state of relaxed tension pointing at the target. Once in your NPOA your breath will cause the front sight to rise and fall vertically through the target. Much of the morning is spent learning what it looks and feels like to get into your NPOA in the prone position.
Adding breath control and their six steps of shooting by the numbers lays an excellent foundation for squeezing off consistent shots. The next step is learning to get into your NPOA in standing position and one seated position (Since body types vary you’ll be shown five seating positions to choose from).
Like most endeavors of precision Appleseed’s descriptions and demonstrations are easily described and demonstrated by the experts. However, teaching your body and mind to reliably and consistently setup your NPOA for the three basic positions is not easy and feels anything but natural, at first. This is especially true for the self-taught (Myself included) who need to unlearn bad habits and replace them with correct technique.
The pace of the training is brisk, methodical and complete. There are no shortcuts taken in building a solid Rifleman foundation. Considering the wide variety of people at the training it’s impressive to see everyone focus together to handle the pace and quality of the instruction.
Firing the Shot “By The Numbers”
Here’s another summary that gives a flavor for the training, but, is no substitute for the full descriptions and experience of being guided through each “Number” in real time by experienced Riflemen:
Line up the front and rear sights.
Bring the lined-up sights onto the target.
Take a deep breath in, then out using the rise and fall of the front sight to establish NPOA.
A: Focus your eye on the front sight. B: Focus you mind on keeping the front sight on target.
Take up the slack and squeeze the trigger straight back (While concentrating on the front sight).
When the hammer falls: Keep your eyes open, take a mental photo of the shot (Referred to as ‘Calling the shot’) and hold the trigger back for follow through.
The instructors are enthusiastic and patient with a keen eye for recognizing and correcting your weak areas.
After the first two hours I started wondering where else I could get such quality training at the price? “Nowhere” is the correct answer. Even if you offered to pay a family member’s gas, lunch and ammunition it would cost you more than Appleseed’s two day training for $70! (Women and children are currently free which I’ll be using to pursuade my wife to join me).
Apart from zeroing your rifle I recommend attending the first day of an Appleseed before engaging in intensive practice with your rifle. In fact, have someone else zero your rifle if you trust them to do it. That frees you up to soak in the training and practice the right habits into your bones on every subsequent shooting occasion.
I spent the first half of the day unlearning bad habits. Best to err on the side of coming to an Appleseed before making bad habits permanent.
Master A Tool of Tools
Mastering a precision tool bestows benefits beyond the area of the tool, itself. In the case of a Rifle the benefits are profound. What profession or task would not benefit from the discipline and precision required to become a Rifleman?
What about adjusting your sights is not transferable to adjusting a miter saw?
What about establishing your NPOA is not transferable to target marketing?
What about zero’ing a rifle is not transferable to Optimizing workflow?
What about the shooting by the numbers is not transferable to visualizing your goals?
The benefits ricochet (Sorry) to and from all endeavors of precision. Inversely, the discipline and precision of master carpentry, for example, can be parlayed back into many aspects of the Rifleman’s craft, as well. For those who haven’t yet settled on a profession precision rifle training exercises a myriad of mental and physical ‘muscles’ that can be applied to future pursuits, yet unknown.
It’s been said that the 1st and 2nd amendments are the only rights required to guarantee the other eight Bill of Rights and all non-enumerated natural human rights. Apropos to their power learning to speak, write, express, worship and defend is optimally approached with an eye towards precision. It is somehow not enough:
To understand the power of speech, yet speak imprecisely.
To be willing to die for the freedom of worship yet be unspecific in praising God’s glory.
To treasure Life and Family with no proficiency in the only historically proven means of their final defense against tyranny or uninitiated aggression.
It takes time, study, effort and keen interest to acquire mastery of these tools of tools. Yet, it’s worth every effort to acquire them even apart from the daily blessings they bestow.
The Day’s Results
According to Appleseed my maximum effective range is 400 Yards. That means I was able to get three consecutive shots to group within a man sized silhouette at 400 yards. In theory this is one step short of Rifleman, but, it’s not that simple.
The “Red Coat Test” (So named because the targets are red to symbolize the British uniforms in the Revolutionary War) is shot from only one position and is not as strict as the Army Qualification Test (AQT) test given the following day where you shoot in three different positions while being timed.
I spent most of the day soaking in the fundamentals and replacing bad habits. That’s probably par for the course for guys who didn’t have the good fortune of Appleseed-like training when starting to shoot. Also, since I didn’t re-zero the .22 after installing iron sights I failed to realize they needed serious adjustments beyond the settings possible on the sights. Therefore, I spent the day looking at groups still 4 inches off the target. For the last two hours an instructor (Thank you, Pat) lent me his 10/22 rifle with a scope. This was great timing because I was able to see the results of the days efforts on targets instead of groups.
I was able to attend only one day of this two day event. Perhaps I could have shot Rifleman the next day though it would have felt wrong to do so with a borrowed rifle. I’ll be back for a proper two-day Appleseed in the next few months. In the meantime, this one day of training has set the tone for practicing the right habits into bone and muscle.
Prep for Appleseed Two
If you’re planning to attend an Appleseed their “What to bring to an Appleseed Event Checklist” is great. Make sure to bring a hat for the sun or a raincoat for the rain. I also recommend binoculars (If you’re not using a scope) to see your patterns between courses of fire where you won’t be walking down to the target. My personal prep for Appleseed Two is to:
Bring a backup rifle – Just like the “What to Bring” sheet says – bring a backup rifle. There’s just no time to make major adjustments to your primary without missing key elements of the training.
Zero both rifles prior to arrival – They cover sight adjustments in the training, but, the elevation adjustments on my tech sights were maxed out and required disassembly to correct. Since I was only there for the Saturday session an instructor loaned me his backup rifle so I wouldn’t be sidelined. Also, to keep the line safe shooters are discouraged from working on their rifles outside of the preparation period. There’s really no time to focus on making major adjustments to your rifle. It’s best to come with a zero ‘d rifle with all the kinks worked out before hand.
Replace the factory with anauto bolt release – Smooth magazine changes are required for the AQT. Placing my finger just right does the trick, but, it’s a distracting hassle that annoys at the end of the day.
Goals
Earn the Rifleman’s patch with the .22 LR.
Requalify with a .308 to remap the training into a true 500 yard round.
Persuade my wife to take a drive in the country and and see what her husband is excited about.
Invite my friends to come along (I’ll drive, pay gas, share ammo and prepare your rifle, if requested!).
Spread the word – Fulfilled with this article, but, not likely to end here.
Planting Seeds of Life & Precision
“Freedom is never more than one generation away from extinction” – Ronald Reagan
On April 19, 1775 better men than I were faced with a choice: Freedom or Slavery. They chose Freedom and paid dearly for it. The men and women of Appleseed have not forgotten and are planting seeds of life & precision in the hearts of new generations of Americans. At a time when dozens of HD screens in every home are turning brains into mush these guys are off the couch breathing the fresh air of the countryside and passing on timeless values and skills.
Politics aren’t required to embrace something fun for the whole family that instills values, skills and benefits far beyond the training, itself. The precision skills parlay into any future profession so why not take a cue from Bill Buppert and make Appleseed part of your homeschool curriculum?
Family oriented expert rifle training is happening at a range near you. Thanks to the Appleseed Project we don’t have to go to Switzerland, anymore, to find whole families at the rifle range! Who knows? With all these sparkling new rifles and Rifleman budding forth maybe it’s not too much to hope for the stabilizing peace and freedom that historically follows in their wake, was purchased by our ancestors and is currently enjoyed by our Swiss friends.
— Special thanks to Shoot Boss BaldDragn and assistent trainers James, eaglescouter, Jules, DoubleD, NorCal22Gal and Pat who trusted me with his rifle.
I put Ammunition after Water, Duct Tape and Coconut oil and before Fuel, Tarps, Paracord and Whiskey. But, that’s just me. On a recent trip to Peru I noticed a fresh role of toilet paper on the dash of every taxi.
A man’s got to have his priorities!
Life Priorities – (LP)
For the purposes of preparing for a non-specific crisis I’ve chosen to order life’s priorities in the following categories:
Water
Shelter
Food
Security
Health & Medicine
Communications
Power
Hygiene & Sanitation
General Tools
Transportation
Spices & Vices
Going through your own reasoning process and placing these categories in order is surprisingly useful. Knowing your priorities is key in making disciplined and balanced choices when allocating limited resources.
Any situation requiring something akin to a remote control drill is eligible for the deployment of firearms and ammunition. Contrary to mainstream media brainwashing firearms have a broad range of application: They serve needs in three out of ten of my top 10 Life Priority categories: Security, Food and General Tools.
Differences of opinion on the value of barter items will be rooted in Life Priorities. Your vision of where Food, Security and General Tools fit into the big picture –And your strategy in providing them– will change the ‘price’ and liquidity you assign to firearms and ammunition.
Informed Subjectivity
In a barter economy you are one half of the pricing system and your fellow trader is the other half. Making subjective judgments about the value of a barter item is not a weak method; It’s the only method. Barter economies have no broad pricing system other than the subjective judgments of the traders. Instead of complaining about subjectivity develop an informed subjectivity to become a better trader.
In barter price is expressed in terms of the desired item. To save myself from drowning in a sea of subjectivity I came up with Your Optimal Barter Equation. Please see that article for a description of the equation. Simply stated:
(M * N * LP)1-n = YO Barter
Where M are the money qualities, N is how directly the item fulfills a need and LP is the Life Priority of the need fulfilled. Note the 1-n subscript. That’s because an item can fulfill needs across multiple categories of life. In fact, the best barter items do.
Money – (M)
Ammunition is compared with the attributes of Money in the first part of this series. Ammo fairs well in the comparison. On a scale of 1-to-10 where 10 is money I give Ammunition a rating of eight. It is viable, if not strong, in seven out of the 10 attributes of money; it is not fungible, is divisible only within the same cartridge and is best traded in manufactured lots. It is also destroyed or unpredictable if wet.
Direct Need Fulfillment – (N)
Bartering ammo instead of a gun is like bartering fuel instead of a car. The ‘fuel’ for these machines have more of the attributes of money yet directly fill needs for the same Life Priorities.
Because ammunition requires a gun I’ve given ammo an eight instead of a 10 when scoring its direct fulfillment (N). Before settling on eight, however, substitutes should be considered.
Ammunition Substitutes?
Security. Walking through the aftermath of Haiti or Katrina with pepper spray or rubber bullets is a weak security play. Even if you emerge unscathed what’s your strategy to provide security for your family? The stabilizing peace that follows in the wake of responsible gun ownership is dramatic, even in good times. How much more so in a crisis? Avoidance, lights, fair trade, keeping your word are minimum behaviors of rational people. However, security is not holistic until violence that may be thrust against you by less spiritual or less rational creatures can be stopped.
Food. Yes, ifcomplete proteins are stocked in advance. Have plenty of beans & rice, whey, TVP, Hempseed, milk, eggs, soybeans, etc. You can leave hunting to hunters only with advance preparation (And hunters would be grateful if you would be so prepared).
General Tools. Need a remote control drill? Then you need firearms and ammunition. No substitutes as of 2010.
Substituting peace for violence is a noble quest undertaken within one’s own heart. Would you stake your life on all those around you achieving this state of Grace? Stockpiling a nutritious variety of complete proteins will quell your families need to hunt. Do you have this food set aside and ready to go?
At best, substitutes for firearms and ammunition are indirect and require advanced preparation. While encouraging all reasonable avoidance of violence and advanced preparation my direct fulfillment (N) score of ammunition remains an eight.
How Does Ammo Stack Up?
I took the best money substitute candidates from the 400 Item Barter List and narrowed it down to 44 Items. After assigning M, N and LP values to each item a spreadsheet was used to calculate scores using Your Optimal Barter Equation:
(M * N * LP)1-n = YO Barter
The equation was applied to the items primary (LP1) and secondary (LP2 thru N) Life Priority categories. The top 21 items ranked as follows:
Rank
Item
N
M
LP1
LP2 thru N
1
Water Packets
10
7
1
3,5,7,9
2
Lighters
9
6
2
3,4,5,8,9
3
Duct Tape
7
7
2
4,5,7,8,9
4
Batteries
10
5
7
4,5,6,7,9
5
Coconut Oil
10
7
3
5,7,9
6
Ammunition
8
8
4
3,6,9
7
Fuel
8
6
7
4,5,6,9,10
8
Tarps
8
6
2
4,7,8,9
9
Paracord
10
6
9
2,4
10
Salt
10
7
3
5,11
11
Hemp
9
7
3
5,11
12
Silver (1 oz)
10
10
9
5
13
Eggs & Milk
10
6
3
5
14
Portable Filters
5
5
1
3,5,7,9
15
Wine
10
5
11
3,5
16
Whiskey
10
7
11
5,8
17
Handgun
8
5
4
9,3
18
Razors
8
7
8
5,9
19
Aluminum Foil
4
8
3
5,7,9
20
Aloe
10
6
5
8
21
Rifle
8
4
4
3,9
As you can see, accounting for a barter items use across multiple categories yields surprising results. I didn’t expect Lighters, for example, to rate so high. However, it’s difficult to protest a Lighter’s compactness, money-like qualities and it’s direct fulfillment of needs across six of my highest Life Priority categories. Water, Lighters and Duct Tape are clear winners (Using my values).
The next three items grouped closely; there was no clear winner among Batteries, Coconut Oil and Ammunition.
I expected Eggs & Milk to rate higher but the equation is a measure of a barter items liquidity in a barter economy. The ranked items are not a preparedness list, per se. It would be a tragic mistake to stockpile excess of the above items instead of focusing on your overall preparedness needs. However, having an excess of top scoring barter items would be among the easiest errors to correct in a crisis and might help fill in the gaps of your overall plan.
Point in Time Value
Change the scenario and change the price. A box of .357 costs less when golfing at Pebble Beach than in the aftermath of the LA Riots. The value of everything changes in time for too many reasons to list. That doesn’t mean there’s no use in taking a stab at relative value in the only moment we have: Now.
My ranking of these barter items was done in the same way as a trade: Subjectively. If I place a higher value on Coconut oil than Aloe does that make me an informed consumer of Coconut oil or an ignorant one of Aloe? You tell me, my fellow trader. The subjective evaluation of the price of a barter item is not a weakness of method: It IS the method.
Ammunition is a Barter Superfood
These top 21 barter items are the superfoods of a barter economy: They provide a kind of nourishment across Lifes’ Priorities. Even after a good meal a bag of Salt still appeals. Even with a full tank of gas a spare five gallons is not to be dismissed. And, you don’t have to be a shooter to know that a few boxes of .38 Special could be traded for just about anything.
While discussing the subject of this article with a friend he jokingly said, “Forget about other barter items. A gun is your ticket to get everything you need!”. When we were done laughing I realized he had perfectly captured the spirit of the unprepared, less rational or desperate. Unfortuneatly, even in good times there are at least76 Reasons to Have a Gun and the ammunition they use.
Like water in the desert, food during famine or shelter in a storm, the value of a gun and the ammunition it uses is exactly equivalent to the value of the life it defends at the moment it defends it. Unlike water, food and shelter, however, the gun may not have to be fired to achieve its full value.
May only one half of that decision be left to someone else.
Yes, we’ve had some deflationary bankruptcies to help decrease the money supply, thank God. But, as you can see, even the most staunch conservatives are now begging the government to crank up the printing presses. As history predicts, they just can’t help themselves.
Most of the strongest advocates for the bailouts know what they’re doing. They know that pumping this much fiat money into the economy will lead to hyperinflation. But, whoever gets the money first can use it to purchase valuable assets while it still has some purchasing power left. By the time the money makes its way to you and me its purchasing power will be mostly gone.
But, there’s still time. . . (As of 9/25/2008) . . .
. . .To Depression-proof your hard earned money, savings and retirement plans from the upcoming hyperinflationary depression.
If you know what to do it doesn’t take long to:
Move Your Money From Here . . .
Bank Accounts
Savings Accounts
CD’s
Government Sponsored Bonds
Money Market Accounts
US Domestic Stocks
Financial Stocks of Any Kind, in Any Country
Treasury Bills
Municipal Bonds
Mutual Funds Made Up of Primarily US Domestic Equities
Bonds and/or Bond Funds of Any Kind
Under Your Bed
In Your Backyard
. . .To Here
Swiss Franc Bonds
Foreign Stocks that pay dividends
Agricultural Indexes
Gold
Silver
Real Estate (Low Prices and Hyperinflation can payoff your house!)
It might only take one hour to preserve a lifetime of savings!
Talking Heads
Judging from the reactions and interviews on TV many wealthy people were blind-sided by the financial crisis’ of the past week. After those talking heads get off the air you can bet they’re moving their money and assets around to protect themselves.
I like Ben Stein. He’s a smart, likeable and decent human being. He’s also more wealthy than the average Joe and is frequently seen on TV commenting on economic and investment issues. Unfortunately, Ben didn’t see this financial crisis coming.
When history is used to predict or avoid an outcome the correct past event has to be chosen as the model. The dollar is losing its status as the world’s reserve currency. Central banks around the world are covertly dumping dollars and purchasing gold and other real assets. And the US government is largely powerless to do anything about it. In fact, the stewards of our currency are printing up their own personal bailout packages just prior to their exit from the world stage.
This is not a normal recessionary business cycle we’re witnessing. The talking heads on TV telling you to “Stay the course” are giving you the correct advice for the wrong time. If they didn’t warn you of a financial crisis of this magnitude then why would you trust their advice now?
Return OF (Not ON) Your Investment
In times like this the perfect is the enemy of the good. If you haven’t already reallocated your investments then you don’t have time to be a perfectionist. Think in terms of preserving the purchasing power of your money and consider any increase a bonus. Look at the list of destinations, recommended above, and choose one you’re comfortable with.
Brokerage Accounts
Correctly choosing the particular holdings in your brokerage account is much more important than choosing the brokerage firm, itself. People who were using Bear Sterns or Lehman Brothers to hold their investments did not lose the holdings in their accounts. It was the stock of the brokerage firms, themselves, that plummeted, not the investments they held for you as custodian. I don’t use this firm myself, but, one company that is getting it right is Peter Schiff’s Europac.net. Check them out if you’re looking to make a switch.
Banks
Even with a bank you’ll probably get money less than $100k back if you want it. You may have to stand in line, be limited to partial withdraws and be inconvenienced, but money you have in the bank will most likely still be returned to you. But, the dollars may not have much purchasing power when you get them back. The FDIC does not have enough to insure all the deposits in banks that are about to fail. But, the government will just create more money for the FDIC to keep functioning when they run out.
If you want to be spared any inconvenience for your short term banking then choose one with a high star rating at www.bankrate.com.
Silver May Not Be an Option
In the Bailout Plan sent out two months ago I recommended silver as my personal favorite way to store and preserve value. There is very little physical silver left for purchase. I still recommend calling your local coin shops to check. However, you may end up having to purchase gold instead of silver. If so I recommend gold eagles, austrian philharmonics and any denomination of bullion bars from a well-known mint.
You could purchase shares of the silver ETF SLV, but, this is a far less attractive alternative to keeping the physical metal in your possession. See my article SLV is Not Silver for more on the pitfalls of investing in SLV.
For a broader perspective on precious metals read my article Silver and Gold Do Nothing or Why is Gold Money?
How Much Inflation and When?
10% and now. One, three, six months from now? Increasingly more. But, isn’t 14% and climbing enough?
Start making decisions now while your dollar still has enough purchasing power to purchase things that have lasting value.
Checking Account Alternatives
If you’re losing 14% a year in your checking account due to inflation then even simple things around the house start to be a better “Investment”. You should probably have at least three months of expenses in your checking account. After that, if you’ve already paid off your credit cards and reallocated your Retirement account then here are some alternatives for the money left in your checking account:
Food That Stores for Long Periods like cereal, canned goods, rice
Water, Water Filters or Storage
Computer Upgrades
Software
Prepaid Utilities like gas, electric, cable, cell phone
Prepaid Property taxes
Or anything else you’re going to have to purchase in the next year or two. Why not purchase them now while the purchasing power of your money is stronger and you still have a job?
Web Resources
This article is an update on the Your Optimal Bailout Plan I sent out at the end of July. See that article for more background.
Last April, I sent an urgent e-mail to my friends and family urging them to consider taking protective measures against the collapsing US dollar. Now that I have YourOptimal.com up and running I’d like to put forth a more formalized plan and make it available to a wider audience.
(For an update of this bailout plan, see Depression Proof Your Money)
You don’t have to agree with my future predictions to be inspired to protect yourself from our current10% inflation rate. Do nothing and your $100 today will be worth $86 next year if its in the bank. I will be adding more articles, links and resources that will explore optimizing various aspects of life in light of the dismal state of our US and world economies. The purpose of the plan, below, is to provide an Optimal plan of action in case you are already convinced that action is required to protect yourself from the coming Hyperinflationary Depression. Here’s the plan:
Pay off all debts, within reason.
Move out of all investments dependent on US dollars.
Move all but 3-months of expenses out of banks into tangible & liquid assets.
Decrease your monthly overhead as much as possible.
Get rid of all physical objects you don’t need.
That’s it. Although the economic problems we are experiencing may appear to be very complex Your Optimal Bailout Plan for protection need not be.
Ninety percent of the protections you can achieve from the collapsing US Dollar will come from your complete and thorough implementation of the above 5-Steps. In fact, if you live in the US it may not be possible to save the remaining 10% of your assets since you need to keep some US Dollars in the ‘pipeline’ just to conduct your everyday affairs.
There are many non-financial aspects of the crisis that we are entering. I look forward to addressing those in future articles. For now, there is no point in complicating the plan until you have a handle on the above 5-Steps. Let’s go into detail about each of these steps.
Pay Off All Debts, Within Reason
Since we are entering the most inflationary period in all of US History we have to look at debt a little differently. During hyperinflation some debts become assets for the debtor. You may stand to gain more by making the payments than paying them off. That’s because your debts are denominated in a currency that is losing its value on a daily basis. The contract you have with the bank to pay off your house requires you to pay US Dollars. The actual value (Purchasing power) of future dollars is much less than the value of the dollars now in your wallet. If you can find a way to preserve the value of your dollars, today, then you can exchange that value for many more dollars, tomorrow, and make your future monthly payments much easier.
If the US Dollar is worth 50% of what it is today (7/15/2008) in 5 years then a mortgage of $100,000 today will be worth $50,000 in July of 2013. If you make your payments for the next 5 years you will have paid down your mortgage by whatever principle your payments could manage and the inflationary decline of the US Dollar will make an additional $50,000 payment for you!
The reason you rarely hear this advice is that its very tricky to manage. You will have to make sure you can manage all of the following variables:
Store your current dollars in something that maintains its current value.
Keep enough dollars on hand to make the debt payments.
Keep enough dollars on hand to pay for all of your other expenses.
Monitor the value of dollars and the value of your tangible asset.
Be willing and able to translate your tangible asset back to dollars.
Manage your bank account(s) so that you have just enough to meet expenses.
Have the mental and emotional fortitude to stay the course.
Using silver as an example, 1000 ounces of silver could have purchased a median value home in 1980. Some say it will again as as we enter this second round of the most hyper inflationary period in US History. You can purchase 1000 ounces of silver today for $14,000. As the dollar value falls you cash in the silver to make your house payments. If the economy goes like it did in 1980 that’s all the silver you need to purchase the note. But, make sure you buy the actual silver and keep it in your possession. The same technique can be applied with gold, of course.
Most financial people don’t want to get into these complexities. They want to keep things simple. They also know from experience that most people are overwhelmed with the details of everyday life and have limited time left over to tend to the financial aspects of their lives other than their job. You may also not be able to make your debt payments if you lose your job.
If you think you can manage all of the above variables then my advice would be to not payoff or accelerate the payoff of your fixed rate mortgage. If you have an ARM then this advice does not apply. In the case of an ARM you might want to consider a short sale while the climate is socially acceptable and you get the special tax break of not having to pay taxes on the amount that the bank let’s you off the hook.
If you have other long-term debts with an interest rate less than 7% (Student loans?) then you should probably not pay them off either. This is assuming you take the same approach as outlined above by purchasing other tangible assets that can be used to make future payments.
If you have long-term debts greater than 11% then you should pay them off despite the upcoming hyperinflation. Just getting free of the burden of these debts is enough incentive to pay them off. You’ll also be left with that much more resources to put towards the other 4-Steps of this plan.
Between 7 and 11% is the gray area and you’ll have to decide how well you can manage the complexities, above, in holding onto debt during periods of hyperinflation.
Move Out of All Investments Dependent on US Dollars
In 1944 we made an agreement with Saudi Arabia to provide military protection for them as long as they agreed to accept only US Dollars in exchange for oil. Since every country needs oil for energy, and many other things, every country had to start stockpiling large amounts of US Dollars to pay for their oil. This little known backdoor negotiation, along with the Bretton Woods Agreement in the same year, is how the US Dollar came to be the world’s predominant reserve currency.
Its important to understand the ramifications of the US Dollar being the world’s reserve currency in order to evaluate whether any given investment is dependant on the US Dollar. It gets even more complicated when other entire countries peg the value of their currency to the US Dollar. The effects of the good, bad and the ugly management of the US Dollar ends up getting exported to entire world in one way or another.
Because the US Dollar has a world effect unlike any other currency in the history of the world the US had the potential to effect the world in a very positive way. Unfortunately, the US defaulted on its international promise to exchange dollars for Gold in 1971.
This made every currency in the world into a fiat currency overnight. No longer tied to any objective value they have been freed to float at the whims of politicians, Central Banks, the World Bank and the IMF, ever since.
The history of fiat currencies, however, has proven that once a paper currency is not backed by any objective value the issuing government cannot resist the temptation to print more and more of them. Unfortunately, the US has been no exception to this historical rule. We did, however, manage to take the creation of US Dollars to a whole new level by skipping the difficulties of the printing press and going right to computer! And since other countries have to use Dollars to buy oil, and some even use US dollars as a backup or primary currency themselves, we’ve been able to get away with printing far and above the amount of paper dollars any country ever has before causing the currency to collapse.
As of 7/19/2008 the charts showing the value of the US Dollar against gold is remarkably similar to the charts of other countries just before they entered the final stages of hyperinflation. Here’s how it played out in Germany between 1919-1923:
What this means for moving out of any investment dependant on US Dollars is that almost nothing is safe. Conducting business during hyperinflation is very difficult and most US companies do not have the experience to manage the difficulties. To make matters worse, the individual equities of even the best run companies are psychologically tied to the broad market of all equities. When the broad market takes a hit so do all the rest, whether they deserve it or not. Therefore, even the stock of well run US companies is not a safe haven for your money.
Even moving US Dollars into another currency is dangerous because all the currencies of the world are fiat currencies. Although its the US and Zimbabwe in the news, lately, our mismanagement is already causing inflation around the globe as other countries continue to purchase our debt instead of investing the money into their own economies.
Bankruptcies and hyperinflation seem to be the plan for dealing with this crisis. Bankruptcies are the quickest way to deflate the amount of currency in circulation, either real or on the computer screen. And hyperinflation makes all of our debts much cheaper to pay off. What better way for the US to avoid defaulting on their unpayable debts then by paying them off with dollars made worthless through hyperinflation?
But, we don’t even get much of the benefit of the deflationary bankruptcies to balance out the inflation because the Fed conjures up however many billions of dollars necessary to ‘provide liquidity’ for failed large banks and mortgage lenders.
For all theses reasons I believe the only safe thing to do is to park your money in tangible commodities that preserve value. My personal favorite is silver, but, there is also oil, cotton, tobacco, sugar, wheat, copper, steel, gold, brass and anything else China and India need to keep their countries on the rise. If silver is your choice here’s how you can invest in silver.
The worst place to have money is in US Dollars, Checking or Savings accounts, CD’s, US Equities or indexes, T-bills or bonds.
Move All but 3-Months of Expenses Out of Banks Into Tangible & Liquid Assets
When you get a dollar in your hands that you don’t need for the next three months of expenses spend it on something of real value as fast as possible. Pay a bill, pay off a high interest debt, see if you can pay monthly bills in advance for the whole year, upgrade your slow computer and maybe even purchase food items with a long shelf life. When you’ve done all that and you still have money left over then its time to purchase more well known tangible assets.
I can only recommend Silver and Gold to fill this role because I have direct experience with them. The process is difficult enough without complicating it further by trading in and out of commodity stocks and keeping track of the tax ramifications. With silver or gold you can trade in and trade out as much as you need, almost anywhere, with no tax problems to worry about. The VAT makes it difficult to do this in the UK although I’ve read that you get it back upon selling.
If you have a 401K you can’t withdrawal without penalties then consider investing in a commodities ETF, Agricultural index, Natural resources and anything else that mankind requires and cannot do without like cotton, sugar, wheat, steel, iron, brass, silver, gold, corn, etc. If your 401K is limited in its options to invest then you have limited options to protect it.
Decrease Your Monthly Overhead As Much As Possible
Any extra money you have right now should go into purchasing tangible commodities that can preserve current value for when the US Dollar collapses. Therefore, any unnecessary monthly expenses should be cut back or stopped completely. Here’s a beginning list of things to get rid of:
Cable channel subscriptions you don’t watch
Internet subscriptions you don’t benefit from
Expensive Coffee
Excess minute plans for your cellular phone
Consider dropping phone land lines, altogether
Magazine subscriptions you don’t read
Eating out too often
Drinking out too often
Going to the movies when you can rent a DVD
Over insuring your house, car, health, life
Driving too far from home or work for errands or services
Overusing the A/C or Heater when fans, windows or firewood would do
Work at home a few days a week to cut down commuting time & money
Anything you own that you don’t need or use is a drain on your limited resources of time, effort, money, space, insurance, storage fees., etc. Your life will improve whenever you get rid of things you don’t need, now more than ever
Clean out the garage
Sell, donate or throw out the items in the garage you don’t need
Sell any cars you don’t use or need.
Hire a student or family member to put items on ebay and manage the sale
