Think You’re Prepared For The Next Crisis? Think Again.
No plan of operations extends with any certainty beyond the first contact with the main hostile force.
~ Helmuth von Moltke the Elder
Everybody has a plan until they get punched in the mouth.~ Mike Tyson
Scottish poet Robert Burns aptly penned the famous phrase: “The best laid schemes o’ mice an’ men /Gang aft a-gley.” (commonly adapted as “The best laid plans of mice and men often go awry.”).
How right he was.
History has shown time and time again that the only 100% predictable outcome to any given strategy is that, when implemented, things will not go 100% according to plan.
The Titanic’s maiden voyage. Napolean’s invasion of Russia. The Soviet’s 1980 Olympic hockey dream team. The list of unexpected outcomes is legion.
Dwight D. Eisenhower, the Supreme Commander of the Allied Expeditionary Forces in Europe during WW2, went as far as to say: “In preparing for battle, I’ve always found that plans are useless but planning is indispensable.”
This wisdom very much applies to anyone seeking safety from disaster. Whether preparing for a natural calamity, a financial market crash, an unexpected job loss, or the “long emergency” of resource depletion — you need to take prudent planful steps now, in advance of crisis; BUT you also need to be mentally prepared for elements of your preparation to unexpectedly fail when you need them most.
Here are two recent events that drive that point home.
Lessons From Hurricane Florence
A family member of mine lives in Wilmington, NC, which received a direct hit last month from Hurricane Florence.
Being an avid “prepper” who has lived on the east coast all his life (i.e., well-experienced with the late summer/early autumn hurricane season), he was MUCH more geared up for this storm than his neighbors. He also had nearly a week’s advance notice to top off his preparations as the media tracked Florence’s trajectory since its formation off of the west coast of Africa.
But as ready as he thought he was, he still found he was vulnerable in places he hadn’t anticipated.
While he and his family made it through the storm all right in the end, he experienced numerous failures in his preps throughtout. Here are just a few:
- Climate-related corrosion — despite careful efforts to store his emergency gear responsibly, he discovered the humid North Carolina climate had ruined several parts of equipment. The alkaline batteries in the emergency radios had exploded, corroding the terminals and rendering the devices useless. Similarly, the wick controls on several kersosene lanterns had rusted to the point of inoperability. The lesson here? If you live in an area that experiences excessive conditions (heat/cold/humidity/mold/etc) for even part of the year, you must check your gear regularly to ensure it’s still functional.
- Incorrect assumptions — Several components did not work as expected when deployed. The “universal” gas line purchased in advance to connect his collection of camping stoves to a large propane tank simply didn’t fit. Similarly, his Gas Tapper siphon failed to work, which he was hoping could help neighbors refuel their generators by tranferring gas from their cars. But in every case but one, it simply didn’t work. The takeway? If you haven’t tested a specific piece of gear in advance, under non-emergency conditions, assume it won’t work when you need it.
- Random fate — Sometimes, as Burns said, plans just go awry. In this case, a diesel truck had been configured to act as a generator and provide electricity to key appliances (freezer, fridge, etc) should the power go out for a prolonged period — which it did. But as random fate would have it, the starter motor failed. The truck sat there like a big useless brick during the blackout. Fortunately, there was another vehicle in the garage set up similarly that did work. The lesson? Always, always have backups in place for any resources that perform an essential function.
Lessons From The Nevada Desert
The 30+ Peak Prosperity members who spent last week at a defensive firearm training program in the Nevada desert received a similar ‘reality check’.
Most who attended already owned firearms and had invested previous hours at their hometown range honing their shooting skills. Or so they thought.
What they realized is that shooting at a stationary paper target under controlled conditions is easy. But that maintaining the same accuracy and precision under stress is hard.
Simply adding time-pressure makes shooting well exponentially harder. At a distance as short as 5 yards, hitting the target center-mass repeatedly is an easy task when untimed. But put on a 1.5-second time limit to shoot — which leaves little time for aiming and spikes the adrenaline — and suddenly the misses multiply.
And of course, using a hangun in an acutal altercation is orders of magnitude more stressful than what we experienced. Low lighting, a moving target who may be armed and/or actively attacking, endangered loved ones, the threat of being seriously injured/killed — these factors will undoubtedly handicap your proficiency to a MUCH greater extent.
We did one simulation drill clearing a home, opening doors that may or may not have bad guys behind them. The added uncertainty and awkward ‘real life’ obstacles resulted in a lot of misses and accidentally killed bystanders. Thank god it was just a simulation.
The hard-hitting insight delivered during this experience is: If you haven’t stress-tested your gear and your skills under the same conditions you plan to rely on them in, you’re woefully unprepared. And to think different is dangerously deluding yourself.
For those of you with preparations in place — in case of a home fire, a week without access to the grocery store, a grid-down event, etc — have you actually done a ‘dry run’ to explore how smoothly/poorly your plans work?
How Ready Are You, Really, For A Financial Crisis?
Here at PeakProsperity.com, we’ve been vocally warning about the high risk of another global financial crisis on par (or worse) than that seen in 2008.
Quite honestly, we’ve been warning about this for a long while, as markets have powered higher. While that’s been very frustrating to endure, we see the market’s manic melt-up as further reason to worry — as the fall from today’s heights will be much more painful.
And we may finally be seeing the onset of a correction. Wall Street’s ‘Fear Gauge’ is suddenly spiking, signalling that traders expect increased volatility along with falling prices:
October 5, 2018, 9:53 AM PDT
The scariest Halloween costume imaginable pales in comparison to a Friday inversion of the VIX futures curve.
A severe sell-off in technology stocks has pushed the front-month VIX futures contract to a premium relative to the second-month contract.