In the world of munitions there is a thing called blast effect. It is simply the damage caused by the force of an explosive blast.
The explosive blast concept can be extrapolated to financial matters.
One way and perhaps the best single way to avoid blast effect is to be outside its range. The bigger and bigger a blast becomes the more distance must be put between you and it. A local bank failure might be escaped by simply placing your accounts in a safer bank. See https://www.forbes.com/advisor/banking/safest-banks-in-the-us/
The systemic Banks like Chase, Bank of America, Wells Fargo and a few others seem to be bullet proof because the Federal Reserve and Treasury Department have their backs. The smaller and regional banks not so much. So distancing yourself from the financial blast of a bank failure might be as simple as moving your accounts to one of the systemically necessary banks. In doing so you are more or less out of the blast effect zone.
As in ordinance, the bigger the bomb , the bigger the blast zone and the nuclear bomb has some serious blast effect zones. Ground zero in the financial world might be the currency. In our case, the USD. If the USD explodes, many like to say implodes, the blast zone will be massive and getting out it can only be done in advance of it. Once the USD explodes, all assets denominated in it will be effected…Equities, Bonds, Real Estate, Oil and yes, even precious metals. This last one being Gold and Silver will be temporarily effected until these assets find their values being set to other new currencies like the BICS currency we expect soon, or newly issued CBDCs tethered to Gold etc.
The way to gt some distance as it were between yourself and finances and the nuclear blast zone of a failing USD is to get out of the USD as much as possible. Certainly day to day life takes a few bucks in hand for gas, groceries, rent etc. but the bulk of savings and investments are exposed when held in US Bank and Brokerage accounts. Gold and Silver ETFs are in the USD system and it is highly doubtful these will help shield from the blast because they are settled in USD. A good idea is to keep adequate cash on hand for a few months but not much more because the USD could eventually become worthless and no longer accepted.
I realize how extreme a collapsed USD may seem but it is not uncommon for Fiat Currencies (those ordered by law to be accepted as legal tender and having no intrinsic value as money like Gold which has been money for 5000 years. THE J.P. Morgan was quoted saying “[Credit] is an evidence of banking, but it is not the money itself. Money is gold, and nothing else”. That coming from the man who established The Federal Reserve. Read more here https://teachdemocracy.org/images/pdf/jpmorgan.pdf
So, Gold is money and currency can only represent it. When the USD was taken off of the Gold Standard in 1971 by then President Nixon, the USD forever became a FIAT Currency no longer tethered or exchangeable for Gold. Later, the population was again permitted to own Gold and those in the know gradually bought and held gold and silver for the inevitable blast that would arrive when the USD failed.
The USD may take some time to fail but when the world's confidence in it goes, it goes the way of so many FIAT currencies before it. see https://www.hardmoneyhistory.com/history-of-fiat-currency-failures/
My advice to clients for some time now, has been to own some physical Gold and Silver. It's fine to own the ETFs but in doing so one must realize that it is not going to be out of the blast zone.
How much Gold and Silver is enough? That is a rather personal question but I used to say that a portfolio having 5% was enough, Then I changed that to 10%, then 10-20%. In the present times, I am recommending holding enough cash to cover 3 months of expected expenses and up to 50% of saved money in Gold and Silver. An allocation between Gold and Silver that I use is 30% Silver to 70% Gold based upon dollar denominated valuations. So if Gold held equals $10,000 hold $3,000 in Silver. There is some logic to this allocation in that Silver is expected to rise farther and faster than Gold but will behave with more volatility. It is entirely possible that Gold and Silver will become the only accepted money and for a while be the main barter item for the exchange of goods and services. Those without Gold or Silver will want some and that will drive the price in any terms up. It will make criminal attempts to get at it more prevalent so being able to protect your interest will always be key. Times will get pretty dicey in a collapsed currency world…think Mad Max. Distancing from cities could be a good idea. But for those who cannot pull that off, harden your entrances and exits and be prepared to shutter windows for a while until things settle out. They always do but what happens before that can be a lawless nuthouse.
OK, so what is my so called wisdom now?
GET OUT OF THE USD BLAST ZONE
KEEP 3 MONTHS OF USD EXPENSES CASH AVAILABLE AT HAND
OWN 50% OF YOUR WEALTH IN PHYSICAL GOLD AND SILVER
SEEK STRONG METHODS OF PROTECTION INCLUDING GETTING OUT OF THE BIG CITIES
HAVE A COMMUNITY OF LIKE MINDED PEOPLE TO ASSOCIATE WITH AND FURTHER PROTECT ALL
I apologize for my direct approach but I see a return to real money on the foreseeable horizon. Try to find better less influenced news sources too. These will often be alternative sources and poo pooed by those who need the government controlled media's cover. You can just about toss out NBC, ABC, CBS and even the big cable channels like Fox though if you pick and choose you can still get some decent reporting there.
Good luck and as always, stay tuned for updates on the train coming down the track.
Best,
Donn Marier
DM-Your Own CFO