Financial Tsunami? Hedge it with Productive, Local Assets


I’ve known the global financial system has been broken for years, but it’s much further gone than I initially anticipated.

Not only has the system devolved into a mountain of toxic, incredibly volatile financial instruments called derivatives that nobody in the industry can seriously claim to understand, the core features of the system have been corrupted in a very meaningful way. We are now constantly on the precipice of a financial meltdown.

What Happened?

The big global banks and brokers have colluded to rig the prices of key underlying benchmarks and rates that the entire system relies upon.  The first example of this was news last year that the big global banks had conspired to manipulate the LIBOR, a key interest rate that determines what we pay on mortgages, credit cards, and much more.  To put this into perspective, this makes what Enron did to manipulate energy prices in California (remember, “burn baby, burn…“) look like a playground prank.

The news hasn’t gotten any better since then.

The corruption of key rates and benchmarks is a BIG problem (worse in that nobody was punished for doing it).  A failure at this level is usually a strong indicator that the global financial system is in serious decline, a decline that will do serious damage to lots of people currently dependent upon it.

The Financial Tsunami

Of course, you can’t mitigate the impact of this financial tsunami on you, your family, and your community by buying more financial assets, of whatever type.  In a financial tsunami, all financial boats sink.  There isn’t a safe harbor.


The best way to mitigate its impact of inevitable financial failure is to put your time, money and effort into building productive assets.  Assets that produce more and better food, energy, water, and things locally.

How?  By slowly replacing expensive imports with local alternatives.

The key to doing this successfully is to do it in a way that improves your life.  A way of producing food, energy, water, and things that makes it tangibly better.

Productive, Local Assets

Let’s look at growing food (the same is true with water, energy, and locally produced products) as an example:

If you foodscape your yard to produce organic food, don’t just grow high caloric staples. Those foods are inexpensive, and the labor you put into growing them often exceeds the value you get.


Instead, grow the foods that radically improve the quality, freshness and variety of the food your family eats.  Eat better.

Not only that, experiment with new things.  Push the boundaries of what’s possible. Grow heirloom melons and try to grow new types of potatoes (there are over 6,000 varieties available).  Plant fruit trees and berries that can yield for decades.  

Further, take the time to build systems that simplify the process of growing this great food.  Soon, you’ll find that many of your neighbors will be doing the same, based on your example.

In time, you’ll find that the degree of dependence you and your neighbors have on the global system that’s clearly in decline is too little for worry.

Sincerely Yours,



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  • R. Saunders

    I agee with your message encouraging people to become resilient and connected within your community. But your comment regarding financial assets concerns me. Not because it is wrong, but it is incomplete. Conventional paper based assets will fail. However, hard assets such as physical gold and silver will protect personal wealth. They have since the beginning of time when fiat currencies fail. If you live in a climate that prohibits year round food production, some silver Eagles or Maple Leafs will get you through a cold winter.

    • illoura

      R. Sunders,

      I am no financial anything, but I think there is a point at which you will gain little with coins (whatever kind) when nothing is available to buy with it… not that I advocate no coinage at all, but want to mention that there are many, many, who are convinced that gold confiscation is part of our future too. It takes a lot of steps to both acquire and then protect such wealth, when in spending it, you may make yourself a target to several types of groups through confiscation or outright robbery.

      Cold frames or a greenhouse, a root cellar (or basement or garage), home jarred foods, canned items, dried produce, even a fish pond/aquaculture, keeping chickens or rabbits or goats, and bartering items (as well as a skill set that can be bartered) could all go a long way toward resiliency thru winter without using coins.

      I’m just saying it’s not resilient to rely on ONE thing -there are always alternatives and diversity can be a better bet.

  • Logan Smith

    On the topic of experimenting with new things that push the boundaries, Janaia and Robyn of Peakmoment TV have some great conversations of what others are doing on this topic of local investing. One of my favorite conversations is with a community organization in Washington that identifies as LION (Local Investment Opportunities Network). If you are interested in this topic I’d encourage you to check it out. :) Cheers!

  • Marcus Wynne

    And spend some time getting out and learning the local wild plants and animals that thrive in your area, and do things to integrate your local eco-system into your growing area. I spent half the day walking the local woodland in a park with a Tom Brown trained Scout gathering medicinals and edibles. Awesome green salad with garlic-mustard and ramp (great with grilled meat); also gathered young wild nettles to make a tea and tincture out of to facilitate recovery from allergies (cat dander and hay fever). Didn’t cost a cent, and I discovered that you can encourage these plants to grow wild on the edge or within your garden space and harvest them for medicinal and/or eating purposes.

    Very cool day, and a good positive resilience step: What did you do today to enhance your personal resilience?

    cheers, m

  • Jeannie

    I’ve been hot on inventory taking lately, with resiliency as the stock. I started with assets and liabilities of my available physical space ,the content, potential and flexibility to change there in. Next was inventory of me( sorely lacking in technology) then was my community…this turned out to be the most advantageous of it all. I know a ton of people and each one knows a ton of valuable( resiliency wise) stuff. I,ve plugged hedge finders and derivative dwellers into my formula and can find no place where those skill sets have any value at all. maybe as physical labor but probably not …they function as liabilities much like bad weather, potato bugs or wood eating termites in the foundation of the house. So, I ask you, am I overlooking the benefit of hedearivitives and if so where.