The end times investment portfolio - part 2

Gold -- We're getting into the better asset classes, but things like gold and silver are still not without their problems. I think gold values will definitely increase over the next few years, especially compared to our dead-in-the-water currency. Gold is a safe haven when times get bad. Unfortunately, it's not that much of a safe haven when times get really bad. Desperate countries tend to seize the gold assets of their citizens. Can't happen here, you say? Actually it already has.

On April 5, 1933 during the Great Depression the new President, Franklin D Roosevelt, demanded that everyone surrender their gold assets to the government. Any US citizen found in possession of more than $100 worth of gold coins/bullion was subject to arrest. If and when that happens again gold will only be useful as a trading instrument on the black market. And there you run into another problem. You see, it's difficult to tell gold's karat weight just by looking at it, so black marketeers tend to value pure gold no differently than they do cheaper gold alloys. This means that in the tribulation a handful of pawnshop jewelry will likely be just as valuable as a handful of pure gold coins.

Repayment of debts -- this one will never go out of style. If you are looking for a safe place to put your money, put it into the debts hanging over your head -- car payment, house mortgage, whatever. The current bankruptcy laws in this country are all predicated on the notion that lenders won't go out of business if a few of their creditor are not able to repay. In circumstances where that is not the case the government allows lenders to compel creditor repayment with things like debtors prisons. Trust me on this one, being out of debt will be better than being in debt in the near future.

On a related note. I don't feel knowledgeable enough to try and give a countdown to a US financial collapse, however I caught Peter Costa (a financial analyst) on CNBC Thursday giving his prediction; he think the US government will be in bankruptcy 18 months from now.

Food -- This one is tricky. The US currently produces about 50% more food than it consumes. Even if our currency became worthless tomorrow there is no reason to think that our government couldn't cobble together some sort of voucher program by the end of the week. The problem of empty store shelves wouldn't happen here overnight. It would take a year or so. But famine is one of the hallmarks of a "time" and the tribulation will be the worst of the lot... and you can't eat gold.

The US has a spread-out infrastructure that assumes we will be able to transport all that food across the hundreds of miles of state highway. Unfortunately, we import most of our fuel. If Mr. Costa is right and the US begins defaulting on its debts in 18 months then we will have a very difficult time buying foreign oil which will make it awfully tempting for our military to simply take it since we are already there and this will likely cause other nations to.... sorry, this line of thinking is the sort of thing that makes me curl up in a fetal ball and watch Entertainment Tonight until I can convince myself that the biggest problem facing this nation has something to do with Tom Cruise and Katie Holmes.... Ahh. I feel better already. Man that Kanye West is a jerk.... What were we talking about again?

Buy cans, buy dry foods, buy peanut butter. You want high calories and long shelf life. Yes, I said high calories and I don't care what your BMI is. Don't worry, we may all be going on a diet together before too long.

Firearms -- The Biblical prescription to "turn the other cheek" is not a call to pacifism. For the ancient Jews a slap on the cheek was an act of provocation. Jesus was telling his listeners not to be provoked into a fight. When it came to the fights themselves, they didn't settle matters with their fists (hardly anyone did back when a broken hand could mean a permanent disability). No, the Jews settled fights the same way everyone did in the ancient middle east: with knives. We usually translate the word as "sword" and Jesus actually has his disciples take stock of how many weapons they are carrying (Luke 22 36:38). They had enough to fight off bandits and that seemed to be the emphasis.

Bandit attacks and general lawlessness are endemic in countries during economic collapse. If you have anyone that you do not want to see kidnapped (the big thing in post-collapse Argentina) then I would recommend you own a firearm and a substantial amount of ammunition. Learn how to use it. Also buy a cleaning kit.

The tribulation is going to be a gun fight. I wouldn't recommend bringing a knife to it.

Miscellaneous -- Camping equipment, a stock of any medicines you might need, wine keeps forever and hard liquors become useful as medicinals and trading goods.

Yourself -- skills, abilities, and areas of knowledge. Learn to forage (yes, there are edible plants where you live). Learn to knit. Anything that could make you less reliant on civilization.

Property -- In each of the last three "times" the best predictor of survival was the ability to pack up, leave civilization such as it was, and flee to the countryside until the hardest of the hard times had passed. This is the one ace that a Bill Gates might have up his sleeve that still wouldn't put him at an advantage over the average Amish person, but would probably make him more prepared for the hard times than you and me.

If you are in the financial position to buy land in the countryside, preferably with a stand of fruit and nut trees nearby, as well as access to clean water, then I envy you.

Seek ye first -- I saved the best for last, and this one we can all do: invest in relationships with others and with your creator. Not only is it the only investment that pays dividends in the life to come, but it also pays off in this one as well. Others) Whatever you know, whatever you have, we are still -- all of us -- going to find ourselves lacking something when the times get truly difficult. It would be nice then if a few other people could still stand the sight of you. God) in my opinion the most important attribute in a survival situation, right above 'high pain threshold' and 'flexible mindset' is the all-important 'reason to go on living'. God gives purpose, don't forget Him and don't succumb to bitterness just because your life suddenly isn't going the way you planned it.

Next post: but aren't people always saying that the world is ending? Why is now different?