Electricity

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Published : September 13th, 2012
488 words - Reading time : 1 - 1 minutes
( 14 votes, 2.7/5 )
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Category : Market Analysis

 

 

 

 

And the writing never ends, as here I am – flying back to Denver, and writing Wednesday’s RANT. This morning was one of the few times I didn’t have a RANT topic queued up, but when I arrived at the airport, it became quite apparent.


As if flying on 9/11 isn’t creepy enough, I arrived at the (San Diego) airport 90 minutes early, only to find a line at the Frontier Airlines kiosk of roughly 100 people. When I asked the service attendant what was wrong, she said Frontier’s computer system was down for roughly an hour. Yes, one hour was enough to cause mass chaos, for just one flight, on one airline, in one airport (fortunately, the Denver flight was Frontier’s only San Diego departure this morning). Which got me to thinking – what would happen if “ELECTRICITY” went down for ALL airlines – for even a day, let alone a week, or month?


When I write “PROTECT YOURSELF” at the end of each RANT, I am NOT just referring to your net worth; but your family and friends, livelihood, and LIFE. The world has become a very convenient place in recent decades, but the flip side of such luxury is the dependency created where people once practiced self-sufficiency. Electricity ranks quite high on the list of such necessities, and as we saw during Katrina and other natural disasters, a lack of it can be DEADLY.


Often, hard core survivalists and fear-mongers bring up the potential for an Electromagnetic pulse – or EMP - being unleashed on society, by either “terrorists” or a martial-law seeking government. I do not accept or dismiss the possibility of such an event – as I don’t understand EMP technology; however, I DO know an electricity loss to just a tiny portion of the population would catalyze MASS social unrest; draconian government action; and political, economic, and social instability.


One of the world’s most dangerous variables is its population. Not “overpopulation” – a subjective concept I don’t care to debate– but large population, as in seven billion people on a planet with finite – and depleting – resources. Electricity is not depleting, but the cost of ubiquitously maintaining it for exponentially expanding populations is; and given its comprehensive, day-to-day utilization in modern society, it is hard to believe a major nation like the U.S. could survive more than a week without it. And by “not survive,” I am referring to the worst-case scenario.


As I wrote in “PREPPING 101,” there are countless scenarios one must consider when contemplating the practical results of HYPERINFLATION – or even accelerated inflation, war, or social unrest, for that matter. It is always wise to “assume the worst, and hope for the best”; and in giving such consideration, it’s just as important to ponder the breadth of such scenarios – and how you might prepare for them – as the scope.


PROTECT YOURSELF, and do it NOW!



 

 



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Andrew Hoffman was a buy-side and sell-side analyst in the United States (including six years as an II-ranked oilfield service analyst at Salomon Smith Barney), but since 2002 his focus has been entirely in the metals markets, principally gold and silver. He recently worked as a consultant to junior mining companies, head of Corporate Development, and VP of Investor Relations for different mining ventures, and is now the Director of Marketing for Miles Franklin, a U.S.-based bullion dealer.
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