KEYWORDS: money, government, gold, system, crash, banks

Why the Crash?

May 31, 2003

DO 867January 1980

—Book Condensation by Gideon Valor of How to Prepare for the Coming Crash, by Robert L. Preston.


1. A SHORT INTRODUCTION EXPLAINS THAT A TREMENDOUS ECONOMIC CRASH IS ABOUT TO DESTROY THE ENTIRE FINANCIAL STRUCTURE OF THE U.S., followed by a depression of a magnitude never before experienced. The author describes briefly the scenario as cities become jungles‚ plagued by disease, riots, looting & mass starvation. According to the author, the overall mechanism of the crash was put into gear in 1913, & is now past the point of no return. Those who are in control know that troubled times are ahead, but think that they will be able to control events & turn them to their own advantage, as they did in 1929. However, they will discover that they have created a Frankenstein monster that will turn on them & destroy them, along with society as we know it.

2. THERE IS A BRIEF EXPLANATION OF THE ORIGINS OF THE MONETARY SYSTEM, recounting how man started off bartering goods of value, which gradually gave way to various metals (which did not deteriorate, as did cows, for example) as they became more aware of their many uses. One of the most useful was found to be gold, as it was hard to find, had many uses & soon became very valuable.

3. "IT WAS VALUABLE BECAUSE IT COULD BE USED TO BUY SOMETHING that its owner wanted & it could always be converted into something of value & use itself—a ring, silverware, a gold watch—then it could be melted down & used again as money, having lost none of its value. This knowledge of the usefulness, & thus the value of gold & silver made it the standard of exchange of the world."

4. HE THEN EXPLAINS BRIEFLY HOW BANKS STARTED, storing these metals & issuing receipts for the amount of metal in storage, which became the paper representative of the valuable gold & silver on deposit in the bank. "The paper issued was only a receipt‚ only a representation of the money. The paper had no real value. You could not use it as you could use the precious metals to make various items of value & of use which could always be converted back into the form of coins without loss should there ever be a need. Paper dollars have no intrinsic value, it is only what they represent that has any value."

5. THE AUTHOR TRACES HOW BANKS GRADUALLY FOUND THAT THEY ONLY HAD TO KEEP ABOUT 20% OF THE ACTUAL DEPOSITS ON HAND at any given time, as people very rarely wanted all their money at once. Because of this the banks started loaning money out to businesses‚ etc., who often put a large part of it back in the bank‚ which the banker lent out again, thus effectively creating money out of nothing, as most of the loans that he was making were, in fact merely bookkeeping entries.

6. THIS WORKED FINE AS LONG AS NO ONE DOUBTED THE BANK'S ABILITY TO HAVE ENOUGH CASH ON HAND to cover all the actual withdrawals requested. If however, enough people for various reasons‚ thought that the bank was in trouble & couldn't honour its commitments, then they all withdraw their money. This is called a run on a bank, & if the bank can't come up with the requested money, it is forced to close.

7. THIS IS WHAT HAPPENED ON A LARGE SCALE IN THE '20s & '30s (& is still happening today). To prevent this from happening again on a large scale, the banks have joined together to form an insurance pool, each placing a certain percentage of its deposits in reserve in this master pool. Any of the banks can draw on this master pool of ready cash to cover a temporary crisis. This pool is known in the U.S. as the Federal Reserve System & the Federal Deposit Insurance Corporation. But even they only actually have $1.40 on hand for every $100 of deposits, so that if every one were to withdraw all their money on the same day—or even in the same week—it would break every bank in the nation!

8. CENTRAL OR GOVERNMENT BANKS: THE MOST IMPORTANT DISCOVERY IN THE HISTORY OF BANKING CAME WHEN BANKERS REALISED THAT EVEN KINGS & GOVERNMENTS RAN SHORT OF MONEY occasionally. One of the first bankers to loan money to the government was a German who became known as Rothschild (so named for the "red shield" that he hung over his door) who started lending to the prince in power in the late 1700s & who soon found himself a part of the national finance business (a Jewish businessman).

9. TO COVER HIS LOANS TO THE GOVERNMENT IN THE EVENT THAT THE PRINCE IN POWER WAS KILLED or decided not to pay back, he would also loan money to an opposing king to whom he could call for help if need be. To further protect himself, he convinced the prince to give him control over the banking of the nation. He said, "Give me control over the nation's currency & I care not who makes the laws."

10. THESE BANKS THAT LOANED TO THE GOVERNMENT BECAME KNOWN AS CENTRAL BANKS. Rothschild then sent his five sons to the major cities of Italy, Austria, France & England to set up similar banks, which soon became powerful in the same manner; all the while cooperating with each other & not divulging their business secrets to outsiders.

11. AS AMERICA GRADUALLY BECAME RICHER & RICHER, THE EUROPEAN BANKERS BEGAN TO BUY INTO THE LARGE AMERICAN BANKING FIRMS, notably the Rockefeller & Morgan firms, as well as Kuhn, Loeb & Co., all located on Wall St. in New York. During this time the European bankers had formed an international conspiracy whose goal was to unite the world into a central government & eventually gain control of the wealth of the nations. …

12. THEY BELIEVED THAT SUCH CONTROL WOULD ENABLE THEM TO END WARS, share the wealth more evenly & gain political control of the world. They used their influence primarily on teachers, preachers & the media to promote this theory. At the outset of the Russian Revolution, several American bankers headed by Paul Warburg‚ secretly financially supported Lenin, as he overthrew the Czar. Warburg had been sent to the U.S. by the European bankers to help the U.S. bankers establish the same type of "fraternity" that was operating amongst the banks in Europe‚ so that they could gain control of the finances of the U.S. government.

13. BY 1910 THE GROUNDWORK FOR SUCH A GROUP HAD BEEN LAID BY THESE BANKERS, in the utmost of secrecy, & became known as the Federal Reserve Banking System. Despite some opposition, the Federal Reserve Act was passed in 1913, effectively creating the FRBS. One of the opponents, Henry Cabot Lodge Sr., said at the time: "The bill as it stands seems to me to open the way to a vast inflation of the currency. … I do not like to think that any law can be passed which will make it possible to submerge the gold standard in a flood of irredeemable paper currency." Charles A. Lindbergh, Sr. told the Congress: "This Act establishes the most gigantic trust on Earth. … The new law will create inflation when the trust wants inflation. … From now on, depressions will be scientifically created."

14. FEDERAL RESERVE BANKS: THESE ARE THE RESULT OF THE FEDERAL RESERVE ACT & are theoretically owned by the Federal Government. Each bank in the country that joins this system must deposit a certain percentage of their reserves in a central fund on which they receive a small interest. This fund, along with the Federal Government's portion, form the master pool to cover the temporary cash shortages that were mentioned earlier. These funds are held in 12 banks spread throughout the U.S. These 12 banks, in effect, operate the Federal Reserve System & make enormous profits in the process.

15. NO ONE REALLY KNOWS WHO ACTUALLY OWNS THESE BANKS as they are private, & in 50 years they have never published a government-audited financial statement. What they are doing is, in effect, as illegal as robbing a bank, but no one can stop them. It is in the process of creating these huge profits that they are destroying the country. The way that they are doing it is as follows: As the Federal Reserve has the right to print money (at a cost of $1.50 per $1,000), they can easily print money whenever they want to, & then loan it to other banks at an interest.

16. THIS IS AS COUNTERFEIT & AS VALUELESS AS IF IT WAS PRINTED IN A GANGSTER'S BASEMENT, except that they have a license, & the gangster doesn't. But the result on the economy is the same, as this money is not backed by gold. Originally, the Federal Reserve System (FRS) was not allowed to print more than four paper dollars for each dollar of gold that the government possessed, but as the government kept spending more, they had to borrow from the Federal Reserve who had to print more‚ so that in 1971 there were 25 paper dollars in circulation for each real dollar of gold in the Treasury.

17. EACH TIME THE FR PRINTS & LOANS MONEY TO THE GOVERNMENT IT COLLECTS ABOUT 6% INTEREST on the loan‚ which, for example, on the 1971 national debt of 400 billion dollars amounted to 20 billion dollars paid for by the taxpayer to the international bankers who own the stocks in the FR banks. Each time the dollar is further diluted with these counterfeit dollars, those who know it raise their prices to cover it. Those who are buying then demand more for their goods & services.

18. THIS IS CALLED THE INFLATIONARY SPIRAL. The inflation is the increase in currency without any increase in value behind it. The economy is very much like a rubber balloon which has a lot of stretch, but as you keep stretching it, the walls get thinner & thinner until finally it pops. As the FRS keeps adding useless dollars, it brings the balloon closer to bursting. When an economy gets to the stage that there are only four cents of gold backing each dollar (as the situation is presently) it is obvious that the balloon will not stretch much further. Therefore, it is easy to see that the crash could happen any time.

19. AS EARLY AS 1959 PEOPLE BEGAN TO SENSE THAT THINGS WERE GOING WRONG & began hoarding silver coins, despite the politicians assurances that all was well. President Johnson assured the people that silver coins would always be used & that there was no point in hoarding them, yet less than two years later, they had been largely replaced by worthless nickel plated copper coins! The worst thing about this inflationary spiral is that it robs the needy & rewards the money-baron who created the monstrosity! When the government tries to slow down inflation, the day of reckoning catches up, businesses start to slide, unemployment rises & the government gets frightened & pumps more money into the economy, making the situation even worse.

20. DISCOUNT RATE: WHEN BUSINESSES WANT TO GROW. THEY BORROW FROM LENDING INSTITUTIONS, who in turn often borrow from the Federal Reserve. These loans from the FR are controlled by what is called the discount rate (i.e., the percent of interest that the FR charges on the loan). When the rate is raised‚ then the banks cannot afford to lend to the businesses‚ & when it is lowered, the banks can borrow & loan more to the businesses. Thus by finding out what the FR is doing with its discount rate, you can tell if they are trying to prop up or cool down the economy. They cannot eliminate inflation‚ only try to control it.

21. WHEN INFLATION IS NOT HELD BACK, THE ECONOMY FINALLY GOES BERSERK, as the money finally becomes worthless & no one will take it. Banks‚ factories & businesses close, cities become jungles, riots occur, etc. It has happened before, & will happen in the U.S.—only this time it will be worse, largely due to the fact that large segments of the population have been brought up without any morals, & they will imitate the worst scenes of violence that they have seen in movies & on TV. These are the conditions that await us, as there is no way to stop the coming depression.

22. THE "EXPERTS" OF THE FR KNOW THAT EACH STEP THEY TAKE TO CONTROL INFLATION confirms the worst fears of the people, who react by tightening up on their spending. Although this would result in more unemployment—& eventually prices would start to come down—it would be a good sign, as in effect it would really be the "air" leaving the inflationary balloon.

23. BUT THE POLITICIANS FEAR DECLINING PRICES & so pump some more "funny money" into the economy, only making matters worse, & so the cycle continues. Eventually they realise that the situation is going to require more drastic measures. One solution often resorted to then is price controls. However, other nations who have sound currencies (i.e. they do not spend more than they can earn) see through this deception & will give you less of their currency for yours, as is happening with the U.S. dollar today. For example, why should the Swiss, whose franc is backed by 82% gold, exchange their franc against the dollar, which is backed by 4% gold (1971 figures)? (Even less today!)

24. DEVALUATION: THE NEXT STEP TO COMBAT CONTINUED INFLATION, AFTER PRICE CONTROLS, IS DEVALUING THE DOLLAR. This is usually done in stages‚ so as to not panic people & so that foreign interests will keep accepting the currency. It is usually worked out in secret, months before. This devaluation inevitably raises the cost of living in the long run, as all foreign goods become more expensive.

25. IN SUCH A SITUATION, THERE IS ALWAYS AN ASTUTE GROUP OF OBSERVERS WHO SEE WHAT IS REALLY HAPPENING, & when it becomes inevitable that the economy is going to crash, they will sell their assets & start storing up for the hard times ahead. They are like squirrels storing up for a long winter, & who, if they store the right kind of nuts, are bound to profit from the crash.

26. ANOTHER GROUP, MUCH MORE DANGEROUS, ARE THE NON-PROFESSIONAL SPECULATIVE INVESTORS, people who have a little extra cash & who dabble in investments. Collectively, they own a large amount of stock, & as they cannot afford to lose their money, they are very jittery. They do not buy into a company because of faith in that company, but rather because of what they think will happen on the stock market. These people will dump their stock on any little negative occurrence, causing the market to go down, & disrupting governments' economic plans. The situation is ripe for such a mass dumping to occur now, as anything could set it off.

27. PLANNED PANIC: APART FROM THIS "ACCIDENTAL PANIC‚" THERE IS THE "PLANNED PANIC." In 1929, before the crash, the international bankers removed their money from the stock market & put it in gold & silver. They were thus able to profit from the depression in two ways: Primarily, they were able to buy up with their "proper" cash, many of the major industries whose values had dropped.—And secondly, they were able to persuade the government to pass a lot of emergency legislation that effectively socialised America, increasing the cost of government & deficit spending, thus increasing the national debt & the ensuing interest on that debt to the FR.

28. IT IS EASY TO SEE THAT DEPRESSIONS ARE TO THE ADVANTAGE OF THE INTERNATIONAL BANKERS who have ready cash at their disposal & who take advantage of the situation while the rest of us are destitute & desperate! As Murray Rothbard, one of the foremost experts on economic depression puts it, "Central banking works like a cozy compulsory bank cartel to expand the banks' liabilities. ... So now we see at last that the business cycle is brought about, not by any mysterious failings of the free market economy, but quite the opposite: By systematic intervention by government in the market process. Government intervention brings about bank expansion & inflation, & when the inflation comes to an end, the subsequent depression adjustment comes into play."

29. A PLANNED PANIC & "CRASH" COULD EASILY BE INSTIGATED BY A FEW PEOPLE ACTING TOGETHER, such as the Rockefeller, Kuhn-Loeb & Morgan groups. All they would have to do would be to raise the FR discount rates forcing the smaller banks to call in their loans. This would create a climate in which several small investors would start dumping their stocks, which would snowball. Coupled with this would be the recall of all short term loans to stockbrokers (24 hour loans). When this happened in 1929, the market crashed the next day!—Despite all the government assurances to the contrary (as it was doing in 1929) the crash can happen at any time. The question is not if, it is when?


30. THE AUTHOR PREDICTS THAT THERE WILL BE PRICE CONTROLS, followed by devaluation of the dollar, which will finally result in foreign powers not accepting them, & everyone will want to unload their dollars. The panic will start & the deception will be over! Whether it is engineered or not‚ the result will be the same: A crash! Only this time it will not be just a depression; it will be anarchy!

31. THERE WILL BE NO JOBS NOR FOOD‚ PEOPLE WILL BE VERY ANGRY at a system that they are at the mercy of, but which they cannot understand or control. There will also be widespread destruction & looting, as the major metropolitan areas will become totally without law & order. The National Guard & police will be mobilised, of course, but will not be able to stop the looting everywhere. Long-laid plans by minority militant groups will be encouraged by the sudden breakdown of law & order, & they will begin their all-out attack on the society that they have come to hate.

32. CITIES WILL BECOME INFERNOS as the utilities are sabotaged & public services break down. In such conditions, the worst tendencies in everyone will be manifested as they struggle to survive. Before it gets too bad, martial law will be declared, which will only aggravate the problem, as there will be widespread desertion amongst the troops as they are asked to turn on their own countrymen. This will prove the ideal time for a foreign enemy to attack from without.

33. IT WILL NOT BE AS SIMPLE AS MANY THINK TO MAINTAIN LAW & ORDER, as the U.S. of today is much different from the U.S. of 1930. Disease will run rampant & there will be a great deal of starvation in the death-traps that are the modern cities of today. If the step-by-step process that supplies the cities with food is interrupted or broken for only a few days‚ major shortages could develop‚ compounded by panic buying that could empty the supermarkets in a matter of hours!

34. WHAT FOOD SUPPLIES THERE ARE COULD WELL BE CONFISCATED to feed the military, & in a matter of days cities could be almost totally without food. Just as surely as death comes to us all‚ both great & small, so will the inevitable destruction, cruelty & horror of the next depression! It cannot be prevented‚ only prepared for!


35. OF COURSE, EVERYONE WANTS TO KNOW WHEN IT WILL HAPPEN. No one knows the exact day or hour, but there are several who know the general time period in which it will occur. There are two approaches one can take as to the causes of the coming depression—the accidental & the deliberate. The author believes that it will be triggered by the conspiracy of international bankers in an attempt to gain control of the world & run things as they think they should be run. This has been thoroughly detailed in the author's book Wake Up America. He believes that they want to do it before May 1st, 1976, their 200th anniversary. A captured communist document (whom the conspiracy have supported) revealed a 20-year plan to take over the U.S. culminating in 1973.

36. BUT EVEN IF THE DEPRESSION IS ACCIDENTAL‚ the economy is so fragile & shaky & artificial that almost anything could set it off, as the panic psychology is already present in the minds of many people. He estimates that in the beginning of 1973 the dollar would be devalued at least 50%‚ & that this could touch off a panic. In forecasting the crash, there is no point in watching the stockmarket, as by the time there are telltale signs there, it is too late! (There was a crash in '73, & it continues!)

37. THE TWO THINGS TO WATCH are the FR discount rate. If it is going up, get ready, because the economic screws are being tightened & could precipitate a crash at any time (i.e. above 5%). Another telltale sign are the remarks that the Administration are making. If they are talking about the economy a lot, even if it is reassuring, it means that there are a lot of pressures on it. The more they deny any large problems & the need to take strong courses of action, the more that you can count on them to do something serious. (Rate now 12%!)

38. FOR EXAMPLE, ON SEPT. 6TH, 1949 IN ENGLAND‚ the Chancellor of the Exchequer, Sir Stafford Cripps denied categorically that the English pound would be devalued, calling it absolute nonsense. On Sept. 18th, the pound was devalued, & Cripps dismissed his deception by stating that "No responsible minister would have done otherwise." You can also almost always be sure that any major economical action taken by the government or the FR bank will be done on the weekend. Be careful not to leave yourself economically vulnerable over the weekend.


39. THE DEPRESSION CANNOT BE STOPPED. There has never been a nation in the world that has issued a bogus currency & gotten away with it. The System that we have today is not new‚ & like all those that have gone on before & were identical to it, it too is subject to the same result. It is important to prepare for it now, as panic strikes overnight! Within hours, many of the alternatives that lie open to you could be closed.

40. IT IS FAR BETTER TO BE READY YEARS TOO SOON than to be one day too late! The time to prepare is now! When the crash hits, all your investments won't be worth the dust of the Earth! The most important item that you will need is food, not only for your family's needs, but also to use as money. If you follow the steps listed below‚ you will be ready for almost any kind of disaster, both man–made & natural.


41. STEP 1—WATER: BUILDING YOUR SURVIVAL NEEDS is similar to building a house. You must go step by step with the most important things first. Next to air, your body needs water. You can get along a long time without food, but not without water. About 4 liters a day per person is a survival amount, & 2 liters if you are not doing much activity. This is the most vital part of your survival program‚ & the most inexpensive. Do this first—& do it now! Store enough for two weeks. (At least!—Or know a source!)

42. STEP 2—MEDICATIONS: NEXT TO WATER, SPECIAL MEDICATION IS VITAL for those who need it. Get an extra supply from your physician & rotate it, so that you will eventually have a year's supply on hand. (—Or trust God's healing!)

43. STEP 3—STOCKPILE: SET ASIDE FOOD FOR AT LEAST A TWO-WEEK PERIOD. It could be the most important investment you will ever make. Below is an excerpt from the U.S. Dept. of Agriculture Bulletin "Home & Garden," number 77, entitled "Family Food Stockpile for Survival" It is a nutritionally sound program for a two–week period:

44. "STOCKPILE FOODS SHOULD BE IN CANS, JARS OR SEALED PAPER OR PLASTIC CONTAINERS. Select foods that will last for months without refrigeration & can be eaten with little or no cooking. Whenever possible, choose cans & jars in sizes that will fill your family's needs for only one meal. This is especially desirable for meat, poultry, fish, vegetable, evaporated milk, & other foods that deteriorate rapidly after a container is opened.

45. "PROTECT FOOD IN PAPER BOXES FROM RODENTS & insects by storing boxes in tightly closed cans or other metal containers; leave the foods in their original boxes. Keeping these foods in metal containers also extends the length of time they can be stored.—When you put in new supplies, put them at the back of the stockpile; keep older supplies in front."

46. STEP 4—FIRST AID: DISCUSS THESE MATTERS WITH TRUSTED FRIENDS, as there is strength in unity, & work out a plan for mutual assistance & cooperation. Take Red Cross courses in First Aid & Civil Defense courses in survival, or at least get their brochures & study them.

47. STEP 5—DEFENSE: PREPARE TO DEFEND YOURSELF, your life & your property, especially if you live in a large city. These will be the facts of life or death. As weapons can be dangerous to you as well as to the enemy, become familiar with the one that you choose. As you will not be an aggressor, you will not need a large powerful long-range weapon. A small rapid-fire .22 rifle would be the best‚ as it does not have much recoil & is light enough so that women & children could use them if they had to.

48. KEEP A LOT OF AMMUNITION ON HAND. The weapon could also eventually be used for hunting. Make sure that whoever is to handle it is thoroughly instructed by an expert. A local gun club could help you. When not in use, make sure that it is unloaded & stored where no child could reach it.

49. STEP 6—FIND A RETREAT HOME: MOST LARGE CITIES WILL BE VERY UNSAFE in times of depression. There is no financial advantage to owning your own home‚ particularly in an unsafe urban area, as values will drop drastically. You would be better to move at least 300 km from any major city to a semi-isolated area & find a simple but comfortable retreat home.

50. A SMALL RURAL COMMUNITY WITH LOW PROPERTY VALUES WOULD BE BEST. Mobile homes, cabins—the choice of retreat is up to you. Fix it up to suit your needs & have it well-stocked, & spend some time there on weekends to get used to it, as it could be a real haven for the future. By attending the local church, you can meet some of the locals that you might need in the future & have good spiritual fellowship.

51. STEP 7—TWO YEAR FOOD SUPPLY: ONCE YOU HAVE FOUND A RETREAT, YOU WILL WANT TO START PREPARING TO LIVE THERE for one-two years with no outside supplies. A safe water supply will be a necessity, which could be furnished by sinking a well‚ as water is often found 10–20 meters below the surface. You will want to have a substantial number of seeds as growing may be the only way of supplying your needs. Check into all the different factors involved: soil variations, fertilisation, etc., & get enough extra seeds that you can barter with them, as they will become quite valuable.

52. ONCE YOU HAVE YOUR GARDEN FOODS‚ there are three ways to preserve them: Freezing, drying & canning. Freezing is not practical‚ as you have to depend on electricity. Canning is rather specialised & needs some experience. The oldest method of preserving—drying—is perhaps the most dependable in an emergency as it requires the least preparation. All the requirements for the two week storage plan are applicable, but large quantities of other foods will also be necessary for a long-term program.

53. WHEAT: IT SHOULD BE GRADE NO.1 with a protein content of at least 11.5% & a moisture content of 10% or lower‚ & should be cleaned of foreign particles for human consumption. It could be stored in clean metal or plastic containers with lids that are airtight. With a mixed diet of other foods, an adult will need about 140 kg of wheat a year.

54. FLOUR: FLOUR STORED GOES STALE AFTER A YEAR. Store in clean airtight plastic or metal containers, with a bay-leaf inside that will maintain flavor & discourage insects. Wheat grinders are available at most health food stores to convert wheat into fresh flour & wheat germ. An adult needs about 45 kg a year.

55. MILK: CANNED MILK WILL LAST ONE YEAR, if it is turned every month or so. Powdered milk should be of the top grade & of the lowest moisture content possible. Storing in heavy plastic bags is good, & as much air should be removed as possible & the bags heat–sealed (or purchase it in sealed cans). Thus stored, the milk can keep up to two years. An adult needs about 35 kg of powder milk a year.

56. BEANS: ALL TYPES OF DRIED BEANS, especially soybeans which are an excellent form of protein. They can be stored in the same manner as wheat, & about 70 kg of beans per adult is sufficient for one year.

57. SUGAR: WHITE STORES BETTER, but raw is more nutritious. It should be stored in the same manner as powdered milk, & if hardened, can be softened by putting an apple slice in it upon opening. About 30 kg per adult per year is needed.

58. HONEY: GOOD SUGAR SUBSTITUTE. 25 kg per year per person is enough. Pure crystalline honey that has no water added will keep indefinitely.

59. PEANUT BUTTER: THIS IS HIGH IN PROTEIN & can be used in many ways. Mixed with powered milk it makes a tasty energy bar. It should be of top variety & not mixed with vegetable oil, & should be turned every two months to avoid settling. 25 kg per person per year is adequate.

60. CANNED GOODS: 2 cans of soup, 2 veg.‚ 1 meat‚ 2 fruit per day for a family of 5.

61. MISC. ITEMS: 6 cans of baking powder, 4 gallons of Clorox for water sterilisation, alcohol, ammonia, antiseptic solution, aspirin, Band-Aids‚ bandages, a laxative‚ cotton, ear drops, Epsom salts, Lysol, paregoric, safety pins, sanitary napkins, shampoo, thermometers, toothbrushes, toothpaste, tweezers, water purification tablets, various health aids, axe, basic hand tools, emergency cook-stove & fuel, emergency light & fuel & mantles, emergency heater, fishing equipment.

62. FLASHLIGHT & EXTRA BATTERIES‚ light bulbs, paper plates & cups, pens & paper, portable radio‚ rifle & shells, sewing supplies, shoelaces & wheat grinder. You will also need an extra supply of blankets, boots, coats, dresses, pillow cases, sheets, shirts, shoes, stockings, towels, trousers & under garments. This is not meant to be a complete list by any means, but just to give you an idea of what a big job it is going to be getting these things together. Remember it is better to be ready years too soon than one day too late!

63. DEHYDRATED FOODS: THESE ARE VERY CONVENIENT for those who don't want to be bothered with planning food storage & rotating food, packaging it, etc. They have distinct advantages:

(a) Because almost all the moisture is reduced, they are concentrated & the bulk is greatly reduced. Good for limited storage space situation.

(b) They are very light & can be moved by anyone in an emergency.

(c) They are usually packaged in nutritionally balanced food programs.

(d) Usually they have a variety of foods & flavors, which is appealing.

(e) They are properly packaged so that spoilage is at an absolute minimum.

(f) They can be stored indefinitely until you need them.

Their disadvantages are that they are more expensive, & they need a good supply of water, but they should have a place in any storage program.

64. STEP 8—BANK ACCOUNTS: DO NOT KEEP MONEY IN A SAVINGS ACCOUNT IN ANY KIND OF BANK! Leave only enough in a checking account to cover your monthly bills. Safety-box deposits as well as bank accounts can be confiscated by the President or absconded by a bank official or a mob! There is not enough money in any bank to cover all withdrawals, should a panic occur. Maintain there only enough paper currency to meet your immediate needs.

65. STEP 9—CONVERTING PAPER CURRENCY: HE RECOMMENDS BUYING SILVER, because at the time of writing, gold was unobtainable by Americans. Get gold if possible—silver, if you can't afford or obtain gold. Don't let people know that you are buying coins, & keep them in several hiding places, under your own control. A hidden floor safe, installed by you, is a good place. Make sure that someone else trusted knows where they are.

66. STEP 10—INVESTMENT: TO PRESERVE YOUR LIFE SAVINGS you will need something that still has value to use as money. Silver (gold) will have actually gone up in value, relative to the depreciating value of other forms of wealth. Silver (gold) is your best money protection in the coming crash. The author doubts the degree of safety that your silver (gold) would have even in the Swiss banks during a financial crisis. It is possible to buy silver (gold) in pure silver ingots & coins of all sizes.


(1) Life Insurance: Stay in the 5–year bracket.

(2) Mortgages: Foreclosures are high in a depression. Also, owning commercial property is bad news in a depression. The fancier & more luxurious the property, the sooner it will probably be vacated.

(3) government bonds: Avoid them like the plague! The government is always broke, & putting in your hard-earned dollars would be like throwing gasoline on the fire!

68. (4) LAND: YOU DON'T WANT TO OWN A LOT except for some well–situated agricultural land. It will devalue terribly, & you would do better to buy some for next to nothing with your silver (gold) after the depression hits.

(5) Stocks, etc.: A real loser, as many of these companies won't even be around! Resist a temptation to make an easy buck, or you might lose them all!


  1. Warn others to get ready for the coming crash. But don't try to convince them if they will not listen. "A man convinced against his will is of the same opinion still." Many will not believe you or want to prepare for any emergency.
  2. Do not panic. Follow the 10-step plan step by step. Do what you can as fast as you can. Think out any plans concerning moving, changing jobs, etc., carefully. Look before you leap!

70. THE BUDGET DEFICIT INCURRED IN THE FIRST FOUR YEARS OF THE NIXON ADMINISTRATION was over 100 billion dollars, more than twice the amount of debt incurred by the U.S.A. from its founding in 1776 to 1940, a period of 164 years! Obviously there is no intent of running a financially sound government. Nixon tried to avoid the inevitable by trying to pull wealth out of an empty hat. It cannot be done. Wealth must be made from something of value, only nothing can be made from nothing. Just before the 1972 election, the FR lowered the discount rate & boosted the money supply in an effort to make the economy look good.

71. THERE IS THEN A SHORT EXPOSÉ ON THE TEACHINGS OF JOHN MAYNARD KEYNES, creator of Keynesian economics: "The man most responsible for the present financial mess of the U.S." Keynes' early writings after WWI advocated the traditionally sound precepts of economics (i.e., balanced budgets, gold standard, etc.)

72. HOWEVER, 10 YEARS LATER, KEYNES HAD REVERSED HIS VIEWS & WAS ADVOCATING THE PRINTING OF INFLATIONARY MONEY, & regulating the employment rate by controlling the discount rate, thereby controlling the amount of money flowing into the economy. In the U.S. this policy, when followed, gave the FR the power to control inflation. This latest "General Theory" of Keynes was nothing more than a carefully disguised plan to break down the capitalist System. It is interesting that although he came forth as a capitalist economist, he advanced an economic program that he knew would bring about the financial destruction of the capitalist nations that would embrace it.

73. AS HE SAID IN HIS FIRST MAJOR WORK: "Lenin is said to have declared that the best way to destroy the capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly & unobserved, an important part of the wealth of its citizens. ..." Lenin was certainly right! There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, & does it in a manner which not one man in a million is able to diagnose." (Economic Consequences of Peace, pg.235.)—The greatest tragedy is that Nixon embraced Keynesian economics as the official economic policy of his administration, & led the nation down the path of economic suicide! (—& every President since!)

74. THOSE BANKERS IN CONTROL THINK THAT THEY WILL BE ABLE TO USE THESE PROBLEMS as a lever & excuse to bring about more controls & finally a world socialist government. However, once the economic volcano has exploded, there will be no controlling it! Nothing can be done to prevent this, & the only thing to do is to follow the 10-Step Plan‚ & warn others!


(The following footnote is by Dad!:)

76. BY ALL MEANS‚ PREPARE ALL YOU CAN, but trust the Lord & don't worry! "Fret not thyself for tomorrow. Sufficient unto the day (today) is the evil thereof. Seek ye first the Kingdom of God & His righteousness, & all these things shall be added unto you." (Mt.6:34,33.)—Amen! PTL!

77. JESUS NEVER FAILS!—Are you trusting Him? Even death is sweet with Jesus! If you love & trust Jesus, death is only the gateway to the next life, a new & glorious new World, Heaven on Earth, the Kingdom of Christ, where there will be no more of these sorrows, but Eternal peace, plenty & happiness for all forever!

78. ARE YOU ALREADY A CITIZEN OF CHRIST'S KINGDOM?—The perfect & loving Government that will never fail nor fall!—You can join His Kingdom right now by receiving Jesus this very moment! Just believe in Him, confess you're a sinner & need Him, & receive Him into your heart now by just asking Him to come in! "Behold, I stand at the door & knock: If any man hear My voice, & open the door, I will come into him, & will sup with him, & he with Me." (Rev.3:20.)

79. THEN YOU'LL REALLY BE READY FOR THE COMING CRASH!—For no matter what happens, He'll take care of you!

80. "CASTING ALL YOUR CARE UPON HIM: for He careth for you", "In all thy ways acknowledge Him, & He shall direct thy paths", "Thou wilt keep him in perfect peace, whose mind is stayed on Thee: Because he trusteth in Thee", "Fear thou not; for I am with thee: Be not dismayed; for I am thy God: I will strengthen thee; yea, I will uphold thee with the right hand of My righteousness"' "For I the Lord thy God will hold thy right hand, saying unto thee, Fear not; I will help thee"‚ "For me, to live is Christ, & to die is gain!" (1Pet.5:7; Prov.3:6; Isa.26:3; Isa.41:10,13; Phil.1:21.)

81. —AND EVEN IF YOU DIE, YOU'LL JUST GO TO BE WITH JESUS IN HIS HEAVENLY KINGDOM FOREVER with all of us who love Him! Warn others of the Coming Crash, but tell them most of all of Christ's Coming Kingdom & how they can join it here & now just by receiving Jesus!

82. GET READY FOR THE CRASH BUT MOST OF ALL FOR CHRIST! He's coming soon!—Are you ready for Him?—You are if you already have Him in your heart! Ask Jesus in today!—Tomorrow may be too late!—With Jesus you're ready for anything!—Crash‚ death & Heaven! Hallelujah!—And you'll have Heaven in your heart right now! GBAKY!—In Jesus name, amen!—love—D.

Quotes from Dad:

83. "AMAZING ISN'T IT, THAT GOD MADE GOLD SO USEFUL & necessary, from ancient times to the present, as well as beautiful & attractive! God has always put considerable value on gold in the Scriptures, some on silver, but mostly on gold. ... Gold has kept its value over all these centuries & really better than anything else outside of actual real estate." (243:24.)

84. "SO PAPER MONEY IS A FAIRLY NEW THING IN WORLD HISTORY, which our clever capitalistic governments quickly latched onto as a much more convenient means of exchange than actual metal coins‚ & a far easier & cheaper way to manufacture worthless money & cheat the people. … As long as people were told by the government that the government would be ready & willing to exchange the paper thing for the real thing at any time that they desired to do so … the people were persuaded to accept this paper substitute for the actually valuable metal coins." (243:36.)

85. "AND ABOVE THIS TOWN—THIS IS THE FIRST TIME that I felt anything 'evil'—above this town—were these big faces floating around! Great big dark evil looking faces!—Like they were in charge of that town & the shops & stuff. It was sort of like their game … they were the ones that were doling out the money pieces that you play the game with ... like monopoly, or something, & you went around buying up stuff. But everything kept dwindling & dwindling & dwindling!" (284:23,24‚51‚52.)

86. "THE GREEN PAPER PIG IS EXPANDING JUST LIKE WHEN YOU BLOW UP A BALLOON. There's actually no more balloon than when you started. It is just getting thinner & thinner & filled with more & more hot air & stretching further & further until it bursts." (327:19.)

87. "THE ONLY PEOPLE WHO WERE BENEFITTED by the depression were the ones who had lots of money, cash. The depression really favored big business. The strange thing that's happening now is that the inflation is picking up speed right along with the depression, just the opposite of what happened in the Great Depression. This time they're not only going to have a big depression or economic collapse, which in days past benefitted the big money boys, but it is also going to bring about the collapse of big investors, governments‚ everybody. It's going to take the money down with it.—And capitalism!" (327:8:13.)

88. "ONE OF THE FOREMOST SIGNS OF THE DEMISE OF ALL THE FAMOUS WORLD EMPIRES was when they began to adulterate their metal coinage. They began to reduce the actual valuable metal in the coins to much below what is said on the coin. In other words, the governments were literally cheating the people. ... In 1965 & 1970 they eliminated all of the silver from "silver" coinage in the U.S. ... Guess what the actual metal value of a 25-cent piece is now?—One cent. ... They've not only cheated the people on paper money, which is really worth absolutely nothing, but also on the hard currency!" (730:40,41,43.)

89. "WELL, CAN YOU IMAGINE WHAT WOULD HAPPEN IF SUDDENLY NOBODY IN A CITY THAT SIZE (New York City) got paid & they couldn't buy their food, or the water stopped running, & the sewage stopped flowing & the lights went out? Now what do you think would happen?—Riots brother?—No!—There'd be war! I mean there would be absolute chaos, total bedlam! People would be slaughtering each other for food!

90. "THAT'S THE KIND OF SITUATION THAT COMMUNISM & COMMUNISTIC LEADERSHIP THRIVES ON. They just wait for a situation like that & then furnish the leadership for the rebel army. And what I & Jeane Dixon both have seen was the Blacks as a result ... taking over the country. ... In all the major cities of the U.S. over half the population is black. ... And when the trouble comes & the crash comes, the economic crash, & the bankruptcy comes & nobody gets paid, [the militant poor will] going to go out with their guns & their knives & get food by force. ... [T]hey're going to have guns & knives & bullets & bombs to do it with, bombs. … That poor black army & navy is not going to protect the white rich if it comes to civil war!" (373:23,24,27‚30‚40.)

91. "GOVERNMENTS ARE NOTORIOUS FOR PLAYING DOWN the possibilities of impending disasters & threats of doom such as augured natural cataclysms, economical crises, political dangers ... the people might worry unnecessarily & be distracted from the daily hypnotic grind of the zombie treadmill & rat-race that is leading them to their doom!—They seldom ever warn them that their economic system is about to collapse, or their corrupt government about to crumble. ... After all, this would be a reflection on the System's efficacy & cast considerable doubt on its credibility." (269:6,9,14,15.)

92. "WHAT IF RUSSIA WERE PLANNING TO TAKE ADVANTAGE OF THE SITUATION, KNOWING SOMEHOW THAT AMERICA'S MONETARY SYSTEM was about to collapse & therefore weaken the whole country? If the dollar collapsed, America would absolutely collapse. When she collapsed financially, she'd be in a state of absolute chaos. That would be the smartest thing in the world to do, to take advantage of America in a state of collapse & absolute chaos for an invasion. ... What a perfect preparation for any proposed rocket attack on America! The Money Explodes! The Dollar Explodes! Inflation Explodes! And War Explodes! The Lord apparently gave me the dream to warn us that the pig is about to explode & is going to destroy the monetary system & with it the financial system & with it virtually the whole capitalistic system, & Russia is probably preparing to take advantage of the situation to destroy America.

93. "WELL, OF COURSE, DYING AMERICA IN ITS LAST DESPERATE DEATH STRUGGLES, what would it do? What was causing it to collapse? If her money had collapsed & she was out of oil, what would become the only valuables in the world? If America's whole system was collapsing & suddenly gold & oil have become the only things that are worth anything, the only commodities with standards of value & usefulness, what would the Americans do as a last act of desperation?—America would try to attack the Arab countries & grab the oil & the gold. ... As a result‚ America & Russia would be going to war & destroying each other, which would work out just like we have seen it before. ... So praise the Lord! Boy, I tell you we are without excuse, the Lord has warned us so much!" (294:31–35,38-41.)

94. "THE CHAIN BROKE! It's headed for a crash! ... If even one link, like oil, breaks in the chain of their economic system, it can cause a sudden depression in their economic system or a sudden panic or a sudden collapse of their whole System!" (284:41.)

95. "RUSSIA IS SMART ENOUGH TO SEE WHAT'S HAPPENING or about to happen—& who knows, she may even be helping to engineer it! Russia has long sought to engineer the collapse of the economic system. What better way to help the collapse of the capitalistic system than to explode its monetary system & its banking system, its whole financial system?" (294:37.)