raising the bar on survival 2 of 3

RAISING THE BAR ON SURVIVAL 2

Yesterday we discussed how globally food is in a deficit of supply.  Even here in the US, the disruption still effects us.  Just economically.  So bad is our corn screw up with the ethanol issue that it is now cheaper to use expensive Florida cane sugar or imported sugar ( with high tariffs ) in a lot of sweetening than it is use the once cheaper than dirt corn syrup.  Well, the disruption is also seen in the health sector.  Even as the health industry implodes on its own incompetence our food industry doubles down on toxicity with Pink Slime and Sawdust Fillers.  I like fiber as much as the next guy with hemorrhoids, but adding cellulose to food is a bit much.

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And speaking of hemorrhoids, I love you all dearly but some of you have been a real pain in the ass, an almost complete correlation between my rectal bleeding and your insistence that ammunition shortages and prices were political rather than logistical.  Peak Copper is as real as Peak Ore and Peak Silver and Peak Oil are.  I understand that De Nile is more than a river in Egypt.  Do you?  It is all well and good to deny scare mongering, as it is used to control you.  Like Gore Warming.  Some of which is a necessary attention grabber like the break down of the East Coast and European ocean current heat distribution.  Most of it is just control and taxation, unfortunately.

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Behind every wealth distribution scheme is a kernel of truth, and nowadays, kernels can really effect you.  The politics of the Left-ening of all population centers might have initiated a scare amongst the population and ammo and gun sales soared, granted.  But the reason that this ammunition demand blip caused shortages and price increases wasn’t the same as when the Other Clinton was officially in charge.  Back then, when oil was in a glut and we were just starting to tap into the far less dense ore concentrations with $10 a barrel energy, it was all scarcity brought on by fear and politics and a maxed out production system.  But it was NOT because we were running out of cheap energy or ore.

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A short time ago, it WAS exactly ore and energy shortages that caused the political demand to be met with ammo shortages.  Production was maxed out, in the less numerous facilities that were left us compared to two decades previous, but because copper was becoming so much more expensive to mine there was an economic triage put into place as a very small niche market of American militia was set against every industrial concern in the world.  Care to guess who won in the bidding war?  The reason it is so cheap and available now is because increasing wage destruction has decimated the customer base of everyone everywhere for copper so that even with increased demand from the 2016 election scare the demand for ammunition is far below capacity now.

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Those that think the capitalist system is perfect, and that money will always solve any shortage problem, don’t like history.  They don’t realize capitalism is just an economic system put into place to manage the European colonial surpluses, and following that the carbon fuel surpluses.  Now that the surpluses are over and done with ( except for surpluses of population ), the capitalist system is sputtering and dying.  Oops-ee.  With decreasing surpluses, we return to the mean of relative military advantage and the control of resources, no matter their amount.  We aren’t doing too well there either.

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The point is that you cannot base long term plans of short term surpluses ONLY in place due to demand destruction.  Wheat ( to refer back to article one in this series ) is super double cheap ( in my higher than normal cost of living area, a mere $10.50 a bag retail cost as of last week ) right now as domestic demand falls as incomes do.  Wheat is such a marginal food item right now ( NOT being the primary diet grain, which is corn ) that even as Little Brown People die overseas from their inability to afford even the cheaper US industrial grain, domestically it is begging for buyers.  So right now for a limited time, businesses in financial trouble beg for customers by marking down the prices of storage grain and ammunition.

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A lot might even be losing money in practice, if not on paper ( akin to paying the mortgage with the roof repair money, it doesn’t hurt you immediately ).  Wal-Mart might be giving away the crap quality rimfire at a $2 loss to sell more of the rifles shooting it, since their bulk purchases bring in $25 profit per $99 gun, rather than the industry standard of about $20.  That sort of thing.  But the low prices are certainly by no stretch of the imagination due to resource surpluses.  They are due to lack of customers wedded to an overproduction supply glut.  And none of this changes the fact that the system has no slack built into it.

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Businesses and by necessity customers will fail in this system of falling supply.  We cannot grow more food, so more people eat less and eventually their shortened lives take a bit of pressure off of demand.  But the whole time increased population is meeting decreased food production.  The globalized supply system breaks down along with currencies and economies and decreasing purchasing power, and even as locals see a surplus the system as a whole is all about decreasing supply.  Supply, regardless of temporary surplus through demand destruction, is in a steady downward phase.  Even if you see an increase in supply, it does not match the increase in population, for a per capita global decline in resources.  Of everything.

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We are way past Peak Silver, globally.  And the price continues to drop.  Not JUST because of the Doctor Evil Bankers are manipulated it.  There is also a decrease in electronics demand, as well as there is only so much currency debasement a government wants to engage in.  Too much and they completely destroy their economy and so then they can buy exactly ZERO resources from abroad.  So they can’t just print money on demand to buy the silver the electronics industry doesn’t need any longer.  They can only destroy their currency a little bit at a time, necessitating prudence in inflation.  As all currencies race to the bottom the trick is to remain the last man standing.  So precious metals, while bought and stockpiled, still see some demand destruction.

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And yet, silver is still decreasing in supply, globally, just as copper and grain is.  There is still no room for a demand spike.  So fall to your knees and give profuse thanks to whichever god you plead to during adverse conditions, to save your pathetic mortal shell, that the Survivalist industry has been in decline.  There is far less competition in demand for resources, due to falling wages and purchasing power.  Hell, while you are there, give thanks to the Dark Lord Obammy for the huge surge in health care costs.  How many wanna-be survivalists  were financially knocked out of the prepping game by 10-30% a year health insurance cost increases?  We continue and conclude tomorrow.

( .Y. )

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