Tuesday 3 April 2012

Just In Time: When the Trucks Stop, America Will Stop (With Immediate and Catastrophic Consequences)


Most Americans take for granted the intricate systems that make it possible for us to engage in seemingly mundane day to day tasks like filling up our gas tanks, loading up our shopping carts at the local grocery store, obtaining necessary medications, and even pouring ourselves a clean glass of water. When we wake up each morning we just expect that all of these things will work today the same way they worked yesterday. Very few have considered the complexity involved in the underlying infrastructure that keeps goods, services and commerce in America and Panama flowing. Fewer still have ever spent the time to contemplate the fragility of these systems or the consequences on food, water, health care, the financial system, and the economy if they are interrupted.

A report prepared for legislators and business leaders by the American Trucking Associations highlights just how critical our just-in-time inventory and delivery systems are, and assesses the impact on the general population in the event of an emergency or incident of national significance that disrupts the truck transportation systems which are responsible for carrying some ten billion tons of commodities and supplies across the United States each year.

A shut down of truck operations as a result of elevated threat levels, terrorist attacks, overall road-blocks or pandemics would, according to the report, have “a swift and devastating impact on the food, healthcare, transportation, waste removal, retail, manufacturing, and financial sectors.

So too would events such as an EMP attack or a coordinated cyber-attack that could shut down global positioning systems and the computers responsible for inventory control. Another potential scenario that is more likely now than ever before is liquidity problems within the financial system stemming from currency crisis or hyperinflation. All of our just-in-time delivery systems are built upon the unhindered transfer of money and credit, but when credit flow becomes restricted or money becomes worthless, no one will be able to pay for their goods. Likewise, no one will trust the credit worthiness of anyone else. This is exactly the scenario playing out in Greece right now and the consequences on the health care industry in that country have left many without life saving drugs. When there’s no money, no one will be transporting anything.

The effects of a transportation shutdown for any reason would be immediate (in some cases, within hours) and absolutely catastrophic.

Excerpted from the American Truckers Associations report

Food

  • Significant shortages will occur in as little as three days, especially for perishable items following a national emergency and a ban on truck traffic.
  • Consumer fear and panic will exacerbate shortages. News of a truck stoppage—whether on the local level, state or regional level, or nationwide—will spur hoarding and drastic increases in consumer purchases of essential goods. Shortages will materialize quickly and could lead to civil unrest. (We’re seeing this in the UK right now)

Water

  • Supplies of clean drinking water will run dry in two to four weeks. For safety and security reasons, most water supply plants maintain a larger inventory of supplies than the typical business. However, the amount of chemical storage varies significantly and is site specific. According to the Chlorine Institute, most water treatment facilities receive chlorine in cylinders that are delivered by motor carriers. On average, trucks deliver purification chemicals to water supply plants every seven to 14 days. Without these chemicals, water cannot be purified and made safe for drinking.

Health Care

  • Without truck transportation, patient care within the truck stoppage zone will be immediately jeopardized. According to Cook, many hospitals have moved to a just-in-time inventory system. In fact, some work from a low-unit-of-measure system. This means that essential basic supplies, such as syringes and catheters, are not ordered until the supplies are depleted. These systems depend on trucks to deliver needed supplies within hours of order placement. Internal redistribution of supplies in hospitals could forestall a crisis for a short time; however, in a matter of hours, hospitals would be unable to supply critical patient care.
  • If an incident of national significance produces mass injuries, truck transportation is the key to delivering urgently needed medical supplies necessary to save lives.
  • Hospitals and nursing homes will exhaust food supplies in as little as 24 hours
  • Pharmacy stocks of prescription drugs will be depleted quickly. According to the National Association of Chain Drug Stores, most of the nation’s 55,000 drug stores receive daily merchandise deliveries by truck.

Transportation

  • Service station fuel supplies will start to run out in just one to two days. An average service station requires a delivery every 2.4 days. Based on these statistics, the busiest service stations could run out of fuel within hours of a truck stoppage, with the remaining stations following within one to two days
  • Air, rail and maritime transportation will be disrupted.
  • A fuel shortage will create secondary effects. Without access to automobile travel, people will be unable to get to work causing labor shortages and increased economic damage. Without cars, many people cannot access grocery stores, banks, doctors, and other daily needs. Public bus systems will cease to operate as well, preventing many disabled and elderly people from accessing these necessities. Without fuel, police, fire, rescue and other public service vehicles will be paralyzed, further jeopardizing public safety.

Waste Removal

  • Within days of a truck stoppage, Americans will be literally buried in garbage with serious health and environmental consequences. Further, without fuel deliveries, many waste processing facilities will be unable to operate equipment such as backhoes and incinerators.
  • Uncollected and deteriorating waste products create rich breeding grounds for microorganisms, insects, and other vermin. Hazardous materials and medical waste will introduce toxins as well as infectious diseases into living environments. Urban areas will, of course, be significantly impacted within just a couple of days.

Retail / Manufacturing / Economy

  • Replenishment of goods will be disrupted. Many of the nation’s leading retailers rely on just-in-time delivery to keep inventory levels as low as possible. Similar to the low-unit-of-measure hospital inventory system, these stores rely on frequent deliveries to replenish basic goods. Often, delivery of a shipment is not triggered until the current inventory is nearly depleted. Without truck deliveries, retailers will be unable to restock goods, including consumer basics such as bottled water, canned goods, and paper products.
  • Consumer behavior during emergencies triples the rate of inventory turn-over. Since many large retail outlets typically keep inventories as lean as possible, problems often arise quickly during truck transportation slowdowns that occur from crises such as hurricanes.
  • Just-in-time manufacturers will shut down assembly lines within hours. Major American manufacturers, ranging from computer manufacturers such as Dell and Compaq to major automakers such as GM and Ford, rely on just-in-time manufacturing. Without truck deliveries, component shortages and manufacturing delays will develop within hours

Financial Sector

  • ATM and branch bank cash resources will be exhausted quicky. In today’s fastpaced, high-technology economy, consumers access cash 24/7 from 370,000 ATMs nationwide. JP Morgan Chase, the nation’s second largest consumer bank, replenishes its 6,600 ATMs via armored truck delivery every two to three days. Given the increase in ATM activity that occurs before and after any type of crisis, ATMs would run out of cash much sooner.
  • Small and medium-size businesses will lose access to cash.
  • Regular bank functions will cease.

While an event that disrupts truck transportation systems may be unlikely, recent history suggests it is fully plausible and the blowback can be devastating. A day after Hurricane Katrina ravaged New Orleans, panicked government officials stopped all transportation flow into the region, forcing hundreds of trucks loaded with emergency supplies like food and water to wait for permission before they could enter the area. As a result, thousands of residents of the city were left without items essential for survival. It took days before truck routes were re-opened and supplies were allowed to flow. Government officials acting on limited information, lack of knowledge and personal politics were responsible for restricting the flow of goods into New Orleans, potentially killing hundreds of people in the process.

What this incident demonstrated is that when the trucks in America and Panama stop, all commerce and delivery stops with it.

Now consider what may happen if the emergency is more widespread, affecting not just a city, but the population of an entire region or the United States in its entirety.

Wednesday 1 February 2012

Is Now The Time To Move Away From Major U.S. Cities

As the U.S. economy falls apart and as the world becomes increasingly unstable, more Americans than ever are becoming "preppers". It is estimated that there are at least two million preppers in the United States today, but nobody really knows. The truth is that it is hard to take a poll because a lot of preppers simply do not talk about their preparations. Your neighbor could be storing up food in the garage or in an extra bedroom and you might never even know it. An increasing number of Americans are convinced that we are on the verge of some really bad things happening. But will just storing up some extra food and supplies be enough? What is going to happen if we see widespread rioting in major U.S. cities like George Soros is predicting? What is going to happen if the economy totally falls to pieces and our city centers descend into anarchy like we saw in New Orleans during the aftermath of Hurricane Katrina? In some major U.S. cities such as Detroit, looting is already rampant. There are some sections of Detroit where entire blocks of houses are being slowly dismantled by thieves and stripped of anything valuable. Sadly, the economy is going to get a lot worse than it is at the moment. So is now the time to move away from major U.S. cities? Should preppers be seeking safer locations for themselves and their families? Those are legitimate questions.

According to a recent Gallup poll, satisfaction with the government is now at an all-time low. Americans are rapidly losing faith in virtually every major institution in society.

Anger and frustration are rising to very dangerous levels, and we are rapidly approaching a boiling point.

When people feel as though they have lost everything, they get desperate.

And desperate people do desperate things.

In many communities in the United States today, crime has become so terrifying that people are literally sleeping with their guns.

The following is a story from Rancho Cordova, California that one of my readers recently sent me....

When I first moved here, it was not a bad place, it was quiet and clean.

However, over the past three years this place has gone to the dumps there are thugs and unruly people everywhere.

I have prevented two car break-ins by scaring these thugs away.

While I was home on thanksgiving weekend, someone decided to break into my apartment.

They trashed my place stole all my items and even took my law enforcement (LE) vehicle to include my equipment.

I m sure they had been watching me for a while because they did not take items that contained my identification.

Thank god, I had my weapon with me.

In many areas of the country, law enforcement resources are being dramatically cut back due to budget problems at the same time that crime is rapidly rising.

Right now, the city of Detroit is teetering on the verge of bankruptcy. Officials there recently announced that due to budget constraints, all police stations will be closed to the public for 16 hours a day. From now on, they will only be open to the public from 8 AM to 4 PM.

But in Detroit the police are needed now more than ever. The following is what one British reporter found during his visit to Detroit....

Much of Detroit is horribly dangerous for its own residents, who in many cases only stay because they have nowhere else to go. Property crime is double the American average, violent crime triple. The isolated, peeling homes, the flooded roads, the clunky, rusted old cars and the neglected front yards amid trees and groin-high grassland make you think you are in rural Alabama, not in one of the greatest industrial cities that ever existed.

The population of Detroit is less than half of what it used to be. Over the past few decades people have left in droves, and large sections of the city are in an advanced state of decay.

Not too many people want to buy homes in Detroit now. At this point, the median price of a home in Detroit is just $6000.

Detroit has become a very scary place. 100 bus drivers in Detroit recently refused to drive their routes out of fear of being attacked on the streets. The head of the bus drivers union, Henry Gaffney, said that the drivers were literally "scared for their lives"....

“Our drivers are scared, they’re scared for their lives. This has been an ongoing situation about security. I think yesterday kind of just topped it off, when one of my drivers was beat up by some teenagers down in the middle of Rosa Parks and it took the police almost 30 minutes to get there, in downtown Detroit,” said Gaffney.

But it is not just Detroit that is having these kinds of problems.

In Cleveland, over 50 percent of all children are living in poverty and abandoned houses are everywhere.

The city has already demolished about 1,000 homes, and there is a plan to demolish 20,000 more homes. The following comes from a recent CBS News report by Scott Pelley....

Perfectly good homes, worth 75, 100 thousand dollars or more a couple of years ago, are being ripped to splinters in Cleveland, Cuyahoga County, Ohio. Here, the great recession left one fifth of all houses vacant. The owners walked away because they couldn't or wouldn't keep paying on a mortgage debt that can be twice the value of the home. Cleveland waited four years for home values to recover and now they've decided to face facts and bury the dead.

Down in St. Louis they have a different problem. In some of the worst areas of the city, roving packs of wild dogs are a serious threat to children that are walking to school. A recent report by the local CBS affiliate in St. Louis described the situation this way....

...Lewis Reed is sounding the alarm. "I’ve witnessed packs of dogs, 10 and 15 dogs running together, and I’ve seen all these dogs I’m talking about they don’t have collars, they don’t have tags, these are truly wild dogs," he said.

Reed says stray dogs are terrorizing the north side. "It’s obscene that parents have to walk their kids to school, in some parts of the city, with a golf club to fend off wild dogs."

How would you feel if you had to fend off wild packs of dogs as you walked your child to school?

These kinds of conditions can be found out on the west coast as well.

For example, there is an area of San Francisco that is known as "Hunter's Point" that is an absolute nightmare. In Hunter's Point, over half of the population lives in poverty and more than half of all children live in a home where there is no father present. The following is what one reporter discovered on a visit to Hunter's Point....

Abernathy and I cut through the complex, tromping over an expanse of dirt and concrete toward the northeast end of the development, where a row of apartments looked down from a grassy hill. We paused next to a vacant, boarded-over unit to take in the scene: A stream of ****, piss, tampons, and toilet paper spewed from a dark hole in the sidewalk, poured down the hill, and formed a sort of **** lagoon next to the street. Weeds, about six inches tall, were growing in the little lagoon.

Raw ****, obviously, is not cool. Beyond the fact that it smells and looks nasty, fecal matter provides a haven for dangerous bacteria, most notably E. coli, a virulent pathogen that can sicken and even kill humans, especially infants.

When conditions like this reign, it is a prime breeding ground for crime.

In major U.S. cities all over the United States, drug dealing, gang activity and prostitution are on the rise. The following comes from a recent article in the New York Times....

In November, a terrified 13-year-old girl pounded on an apartment door in Brooklyn. When a surprised woman answered, the girl pleaded for a phone. She called her mother, and then dialed 911.

The girl, whom I’ll call Baby Face because of her looks, frantically told police that a violent pimp was selling her for sex. He had taken her to the building and ordered her to go to an apartment where a customer was waiting, she said, and now he was waiting downstairs to make sure she did not escape. She had followed the pimp’s directions and gone upstairs, but then had pounded randomly on this door in hopes of getting help.

In some major U.S. cities, the gangs have virtually taken over. In an article entitled "City of Ruins", Chris Hedges described what life is like today in Camden, New Jersey....

There are perhaps a hundred open-air drug markets, most run by gangs like the Bloods, the Latin Kings, Los Nietos and MS-13. Knots of young men in black leather jackets and baggy sweatshirts sell weed and crack to clients, many of whom drive in from the suburbs. The drug trade is one of the city's few thriving businesses. A weapon, police say, is never more than a few feet away, usually stashed behind a trash can, in the grass or on a porch.

As I wrote about the other day, the FBI says that there are now 1.4 million gang members inside this country. That number has increased by 40 percent since 2009.

Organized criminal behavior by groups of young people is on the rise all over the nation. Just check out this video which shows a flash mob robbery happening in Montgomery County, Maryland.

Sadly, this is just the beginning.

This country is still enjoying a tremendous amount of prosperity. We still have a very high standard of living compared to most of the rest of the world.

So how nightmarish are things going to get when the economy gets really bad?

Wednesday 25 January 2012

How growing numbers of American 'preppers' are getting ready for Armageddon

When Patty Tegeler looks out the window of her home overlooking the Appalachian Mountains in southwestern Virginia, she sees trouble on the horizon.

'In an instant, anything can happen,' she told Reuters.

'And I firmly believe that you have to be prepared.'

Ms Tegeler is among a growing subculture of Americans who refer to themselves informally as 'preppers.'

Prepper's stockpile

Ready for anything: Chuck Izzo, a "prepper" sits in his basement where he stores wood pellets to fuel his woodstove, an alternative heat source in his home

Some are driven by a fear of imminent societal collapse, others are worried about terrorism, and many have a vague concern that an escalating series of natural disasters is leading to some type of environmental cataclysm.

They are following in the footsteps of hippies in the 1960s who set up communes to separate themselves from what they saw as a materialistic society, and the survivalists in the 1990s who were hoping to escape the dictates of what they perceived as an increasingly secular and oppressive government.

Preppers, though are, worried about no government.

Ms Tegeler, 57, has turned her home in rural Virginia into a 'survival center,' complete with a large generator, portable heaters, water tanks, and a two-year supply of freeze-dried food that her sister recently gave her as a birthday present.

She says that in case of emergency, she could survive indefinitely in her home. And she thinks that emergency could come soon.

'I think this economy is about to fall apart,' she said.

Food stockpile

Stocking up: Dennis McClung, of Mesa, Arizona, filled his basement with food to ride out the end of civilization, which he believes is coming December 12

A wide range of vendors market products to preppers, mainly online. They sell everything from water tanks to guns to survival skills.

Conservative talk radio host Glenn Beck seems to preach preppers' message when he tells listeners: 'It's never too late to prepare for the end of the world as we know it.'

'Unfortunately, given the increasing complexity and fragility of our modern technological society, the chances of a societal collapse are increasing year after year,' said author James Wesley Rawles, whose Survival Blog is considered the guiding light of the prepper movement.

A former Army intelligence officer, Mr Rawles has written fiction and non-fiction books on end-of-civilization topics, including 'How to Survive the End of the World as We Know It,' which is also known as the preppers' Bible.

Warehouse storage

Emerging market: Best Prices Storable Foods in Texas has seen a surge in customers looking to fill their pantries and basements with nonperishable foods to ride out any fall of civilization

'We could see a cascade of higher interest rates, margin calls, stock market collapses, bank runs, currency revaluations, mass street protests, and riots,' he told Reuters.

'The worst-case end result would be a Third World War, mass inflation, currency collapses, and long term power grid failures.'

HOW TO STOCK UP LIKE A PREPPER

You don't have to own a fallout shelter and believe society is on the brink of collapse to store some extra supplies in case of a natural disaster or other emergency. Here are a few suggestions from the federal government:

  • Food - Three day supply of non-perishable food that requires no heat or refrigeration and little water to eat. Consider MREs (military rations), peanut butter, canned fruits and vegetables, canned ready-to-eat soup and energy bars. Be sure to include a can opener
  • Water - One gallon per person in your household per day. Keep enough for at least three days.
  • Light - Candles with matches and flashlights with fresh batteries
  • Communication - Battery-operated on hand-crank radio with NOAA weather radio function
  • Health - First aid kit as well as an prescription and over-the-counter medication you regularly use
  • Sanitation - Spare toilet paper, paper towels and plastic garbage bags
  • Documents - Be sure to keep important documents and family photos together in an easily-accessible place in case you need to leave home

A sense of 'suffering and being afraid' is usually at the root of this kind of thinking, according to Cathy Gutierrez, an expert on end-times beliefs at Sweet Briar College in Virginia. Such feelings are not unnatural in a time of economic recession and concerns about a growing national debt, she said.

'With our current dependence on things from the electric grid to the Internet, things that people have absolutely no control over, there is a feeling that a collapse scenario can easily emerge, with a belief that the end is coming, and it is all out of the individual's control,' she told Reuters.

She compared the major technological developments of the past decade to the Industrial Revolution of the 1830s and 1840s, which led to the growth of the Millerites, the 19th-Century equivalent of the preppers.

Followers of charismatic preacher Joseph Miller sold everything and gathered in 1844 for what they believed would be the second coming of Jesus Christ.

Many of today's preppers receive inspiration from the Internet, devouring information posted on websites like that run by attorney Michael T. Snider, who writes The Economic Collapse blog out of his home in northern Idaho.

'Modern preppers are much different from the survivalists of the old days,' he said.

'You could be living next door to a prepper and never even know it. Many suburbanites are turning spare rooms into food pantries and are going for survival training on the weekends.'

Like other preppers, Mr Snider is worried about the end of a functioning US economy. He points out that tens of millions of Americans are on food stamps and that many U.S. children are living in poverty.

'Most people have a gut feeling that something has gone terribly wrong, but that doesn't mean that they understand what is happening,' he said.

'A lot of Americans sense that a massive economic storm is coming and they want to be prepared for it.'

So, assuming there is no collapse of society -- which the preppers call 'uncivilization' -- what is the future of the preppers?

Ms Gutierrez said that unlike the Millerites -- or followers of radio preacher Harold Camping, who predicted the world would end last year -- preppers are not setting a date for the coming destruction. The Mayan Calendar predicts doom this December.

'The minute you set a date, you are courting disconfirmation,' she said.

Ms Tegeler, who recalls being hit by tornadoes and floods in her southwestern Virginia home, said that none of her 'survival center' products will go to waste.

'I think it's silly not to be prepared," she said.

'After all, anything can happen.'