Are You Going to Base Your Life on Misinformation, Or Are You Going to Get a Plan?

Dear friends, this is a critical question: Do you have a Plan B?

You may not understand the entire picture—none of us does—but you’ve got to recognize that there are massive, massive potential dislocations ahead.

As Simon Black wrote at Zero Hedge,

On the first of September, 1939, Hitler’s armies invaded. And despite suffering massive military losses, the Polish government spread all sorts of misinformation on the radio, telling its people about phony victories against the invading German hordes.

None of this was true. And within hours, a multi-year military occupation began that would turn people’s lives upside down.

[…]

Human beings have a natural tendency to ignore obvious warning signs and take the path of least resistance. It’s a much simpler prospect to stick our heads in the sand than to acknowledge uncomfortable truths and risks.

There are plenty of those today.

Last year, the United States government took in $2.6 trillion in total tax revenue. Yet they spent $2.5 trillion just to cover mandatory spending (like Social Security) and interest on the DEBT.

Bear in mind that 10,000 people per day become eligible for Social Security benefits… and the debt gets bigger every year. They are growing much faster than the government’s tax revenue.

And it is an arithmetic certainty that they will soon fail to collect enough tax revenue to even cover mandatory entitlements and interest on the debt.

[…]

Look… there might not be any army groups encroached on the border. But the warning signs are just as clear as they were back in Poland in 1939. This is not a consequence free environment.

Unfortunately, most people are just as oblivious.

It may be days, weeks, months, or years before anything happens. But intelligent people don’t ignore the obvious risks to their livelihoods and their families.

Intelligent people have a Plan B. Intelligent people put on their seat belts.

If you take a few prudent steps, and nothing happens, you truly will not have lost much. If you do nothing, and some very possible economic tsunamis are unleashed, your monetary world could be swamped.

Turn off the TV for a night or two a week. Look at your situation. Find places to cut back, and save a little more (and determine whether your bank is truly a safe place to do that savings—in many cases, it’s not). If the market has been good to you in the past couple of years, think about taking some of those gains off the table.

As Mr. Black says here: This is not a consequence-free environment.