My Tao - Social and Economic Reset

With so much nonsense going on in financial markets and politics, it appears increasingly likely that we're headed towards a systemic collapse of some kind. What we are currently doing is simply unsustainable, and must therefore come to an end. The only question is how dramatic the eventual reset will be, and how exactly it will manifest itself.

At the very least, we will have a monetary reset. The current level of debt in society is simply too much to shoulder. Staying away from fiat currencies and debt instruments of all kinds is therefore a good idea. Savings should be kept close in the form of gold and real-estate.

If there's a monetary reset other than a return to a gold standard, we are likely to get another reset within a decade or two. Under such a scenario, initial pain for those unprepared for a proper reset will be less, but only at the expense of more pain in the future, so we must remain cautious throughout such intermediary periods. We must remain in gold and real-estate for as long as the intermediary phase lasts.

We must even be suspicious of real-estate. We must not own too much. That will only attract the attention of bureaucrats determined to tax whatever they deem excessive. Keeping things small and modest is therefore a good idea. However, real-estate must not be too small either. It should be big enough to provide food for a family. A small house with a garden of about 1000 square meters will do. Anything more than 10000 square meters may be too much to handle.

If things get really nasty, industrial farming may collapse. Very large farms are as risky as corporate bonds and stocks. There's no point in owning any of this as long as things are in flux, and that period can last for decades. It may even last for centuries, as was the case with Rome.

If we are headed for a protracted era of decline, a sensible arrangement would be to own a modest summer house within driving distance from our main residence. That way, we can take full advantage of whatever situation may arise. The summer house can double as a vegetable garden, adding to our food security. A modest flat in a town can be a good base during winter, and for doing business. With two places, separated by a considerable but not excessive distance, we're in a position to move back and forth with ease. If there's a riot in town, we're out of harms way. If there is a cold or dry spell in the country, we can get back to town.

Should things deteriorate to the point of total collapse, a summer house with a well may be just the thing to save us from hunger. However, such an eventuality is extremely unlikely. The main purpose of a summer house should be recreational. The fact that such a place can double as a safe space in times of crisis is merely the bonus that makes such a place a prudent addition to gold for investment purposes.

By Valtov at fi:wikipedia - Originally from fi:wikipedia, Public Domain, Link