I’m writing to you from the safest place in the world– a humble cabin in central Chile, nestled among 1,100 acres of some of the most productive farmland on the planet.From here, I grow my own organic food and raise my own livestock. I pump my own water, and have nearly a dozen wells, a canal, natural stream, and two reservoirs. I’m even producing my own biodiesel and soon installing renewable energy generators.
I’ve got high-speed Internet, plus backup communication platforms; weapons, plus storage for medical supplies, food, ammunition, and gold; hundreds of acres of timber; raw materials to make everything from soap to charcoal to herbal liniments.
As a bonus, the commercial crops generate a healthy profit. The workers are so experienced and resourceful, it’s like having a dozen Macgyvers on your team. And it’s just gorgeous… with fantastic weather.
In short, this place is about as resilient and self-sustaining as it gets. It’s not an accident, either, I’ve been advancing this concept (and writing about it in this letter) for years… and have built a community for others to join me.
Now, one might read all of this and think that I’m preparing for the end of the world. But that’s not it. The world isn’t coming to an end. It’s changing. And this is nothing new.
Every few hundred years, wealth and power shifts. This has happened so many times before, it’s hard to even keep track. Mesopotamia. Persia. Macedonia. Greece. Roman Empire. Byzantium. Mongolian Empire. Ming Dynasty. Ottoman Empire. Habsburg Empire. French-Bourbon Monarchy. British Empire. Third Reich. United States of America.
This change is as old as human civilisation itself. And it’s happening again. Decades of unsustainable debt have caught up to the West, and wealth and power are once again shifting.
In the case of the US, the government doesn’t even collect enough tax revenue to cover the costs of mandatory entitlement programs and interest on the debt.
More specifically, the US government is already in the hole by nearly $250 billion before they actually start paying for government– the military, Homeland Security, national parks, etc. Yet the major topic of debate is how to take people’s guns away. It bears an uncanny resemblance to the legend of Nero fiddling.
Everything about this screams ‘unsustainable’. The writing isn’t on the wall, it’s carved in neon lights. You’d have to be intentionally ignoring the warning signs to miss it.
Amazingly, though, this is what most people do. Our entire civilisation has a vested interest in ignoring reality and pretending that everything is just fine.
Of the superpowers throughout history who came before, many were in the exact same position: deeply in debt, rapidly debasing the currency, destroying freedom, and ignoring reality. People have always wanted to pretend that everything is just fine.
Here’s the thing, though. When you’re dealing with governments who have unlimited resources to lie, steal, kill, enslave, defraud, and debase the currency, the wheels can stay on the bus for a long time… far past the point of no return.
But when the final unravelling begins, it happens very, very quickly. And history shows that the consequences are tumultuous.
In the mid 19th century, the Ottoman Empire’s debt was so massive, the central government was spending 17% of tax revenue just to pay interest. In just eleven years, this soared to over 50% of tax revenue.
Needless to say, default, collapse, and social turmoil came soon after. After kicking the can down the road for so long, the rate of decline was astounding.
By comparison, the US government spent 19.7% of tax revenue on debt interest in 2011. And yet, interest rates in the US are practically zero! Imagine how quickly this will spiral out of control when interest rates start rising, even by a little bit.
We don’t know exactly when the final unravelling will begin. And it’s really not worth trying to guess.
Rather, the most prudent strategy is to invest your time, capital, and energy into ideas that make sense in any scenario. The farm is a great example.
If the US government defaults on its debt next month and throws the global financial system into a tailspin, I won’t even notice down here. Yet if this ridiculous charade continues to play out for years, I won’t be any worse off for having a profitable agricultural operation and access to my own organic food.
This is an important concept. If you’re willing to see the writing on the wall, there are a number of steps you can take that make sense in either scenario.
Holding you gold overseas is something I have been writing about for years. If your bankrupt western government slides into insolvency and begins seizing assets or imposing capital controls, you’ll be the smartest guy the room for having physical gold and silver in Singapore.
Yet if nothing happens for now, you won’t be worse off for holding precious metals abroad.
The idea applies across the board: holding savings in a foreign bank account. Setting up a business or trust in a stable offshore jurisdiction. Owning property abroad in a safe place. Using an overseas email provider. Seeking high quality, cost effective international healthcare. Investing in strong foreign economies. Etc.
This concept– investing and diversifying internationally in ways that make sense in any scenario– is our core ethos at Sovereign Man, from this daily letter, to our premium publication Sovereign Man: Confidential, to our sold-out upcoming Offshore Tactics Workshop (featuring the most seasoned experts in the industry).
If you agree with this premise and sound strategy, you’re not alone… and I’d like to invite you to become a member and join a phenomenal group of others who see the world in a similar way that you do. Like this strategy, you won’t be worse off for it.
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