by Paula | 26 June 2010 | permalink | comments
Tags: personal,
Hey all, please take note — the blog has moved to rabbit-mountain.com.
I’m slowly porting over the articles one by one, so if you click an archive link that takes you to Rabbit Mountain, don’t be alarmed.
by Paula | 7 May 2009 | permalink | comments [5]
Tags: entrepreneurship, peak oil
The concept of “multiple income streams” is common among entrepreneurs and is pretty self-explanatory. It typically refers to setting up a handful of ventures that can all generate income simultaneously. For example, one might run an ecommerce website while at the same time selling products through Amazon, investing in income-generating financial vehicles, and doing consulting on a part-time basis. Lots of work and organization, yes, but the underlying principle is very sound: If one of your income streams takes a hit it’ll be a problem, not a catastrophe. On the other hand, if you have just one income stream — say, a full-time day job — and something happens to it, you’re just screwed. Think of it as income diversification.
As the post-peak world starts to take shape, jobs are becoming more scarce and people are starting to turn to self-employment to generate income. There may be some upswings along the way but I fully expect this trend to continue. In the United States, especially, lack of manufacturing capacity is colliding with lack of capital, and soon enough these will collide with skyrocketing energy costs to manifest a global clusterfuck that will hit the American middle class particularly hard, dependent as it is on wage-slave labor and cheap oil.
In this economic environment the notion of “income” will of morph into synonymity with the notion of “survival” — already this is the case for millions of people. And in the same way an enterprising middle-class person might devise multiple “income” streams, an enterprising formerly middle-class person can devise multiple peak oil “survival” streams. Really, what other choice is there?
I’ve put together a simple grid anyone can use to brainstorm potential survival streams, and to help weed out pragmatic choices from the not-so-pragmatic.
The columns are broken down into three modes of the economy everyone in preparation or pre-preparation needs to consider:
The Obama administration’s financial death sentence means a huge swath of people — perhaps most — will not be able to survive on net monetary income alone. The underground economy will grow of necessity and, no matter how law-abiding anyone wishes to be, basic survival will require doing things that are technically illegal.
Note that barter income is taxable. Any overt community bartering scheme will almost certainly draw the attention of the IRS as the federal tax base shrinks along with business activity, salaries and wages, and payrolls. Hiding barter income will also become necessary.
The underground economy mode of preparations does not get much ink but I strongly feel it is something to which everyone should be paying attention. Therefore I’ve built it into the grid as part of the full scope of survival streams brainstorming & planning.
The rows are broken down into sectors based on Charles Hugh Smith’s identification of the FEW economy:
To Smith’s FEW I’ve added M and H:
Each cell in the grid represents the intersection of a sector with a mode. For example, the first cell is the intersection of the Overt mode and the Food sector. It presents the question: What can I do in the overt economy to secure food for myself and my family? Depending upon your circumstances, your options might include growing a backyard garden, opening a small grocery, or organizing a local-foods buying club.
By way of another example, the cell intersecting Barter and Medicine presents the question: What do I have to barter in order to secure medicine/healthcare for myself and my family? Again, depending upon your circumstances, your options might include trading math tutoring for ongoing acupressure health maintenance, or harvesting wild medicinal herbs to trade with a practitioner for healthcare services.
You get the idea. The goal here is to get all options on the table, even relatively unattainable ones, in order to sort out the few that are actually do-able within anyone’s given circumstances.
Here’s a sample grid I put together. I chose to hash out options for one of the most vulnerable household types in America: a single, female condominium owner in the suburbs of a large metro area, who owns no other property and is employed for the time being.
| O Overt |
B Barter |
U Underground |
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| F Food |
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|
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| E Energy |
|
|
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| W Water |
|
|
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| M Medicine |
|
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| H Household |
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Among peakniks, condo life is typically presented as hopeless and being single as a terminal pathology. Everyone needs to marry and run off to some rural commune, and if you can’t do that you’re shit out of luck. But according to this grid, there are many options available to our single, female condo owner. Some are more realistic than others; as economic conditions change, some options will close while others open.
Different types of households will have different options. A young urban family will have different options than a middle-aged rural couple with grown children. But few are entirely lost just yet.
One last note: filling in the grid should be approached from the point of view of how to attract what one needs, not from the point of view of what one has to contribute. The point here is to figure out a diverse system for securing necessities to cover overt obligations that require actual dollars, to necessities that can be secured without dollars, to necessities that cannot be obtained legally due to lack of money, crushing regulations and the like. Contributions can come later. As Catherine Austin Fitts likes to say, put on your own oxygen mask first so you’ll be in a position to help where you can.
I’ve built a worksheet containing a blank grid for download in two formats: one in Word, and one as a PDF. If you download and use this grid I’d like to hear your thoughts — please share your experience either in the comments, or by contacting me directly.![]()
Money as Debt
[YouTube playlist] How the monetary system works.
Peak Oil & Sustainability: CRM's potential impacts
[PDF] White paper from Beagle Research Group, September, 2008
The American Tapeworm
Catherine Austin Fitts, 2003. This was my introduction to finance or, as CAF calls it, the "negative ROI economy."
The Hirsch Report
HTML version
The Hirsch Report
PDF version
The Strategy of the Fighter Pilot
A special kind of military strategy, applied to business
The Truth & Lies of 9/11
Mike Ruppert, 2001 [video]. This was my intro to peak oil. I heard Ruppert's Portland State lecture the morning after its delivery on KBOO's rebroadcast.
Weblogs & New Media: Marketing in Crisis
Excerpt from Charles Hugh Smith's book by the same title.
Catherine Austin Fitts
Investment advisor, investment banker, educator, entrepreneur
Charles Hugh Smith
Author of _Marketing in Crisis,_ entrepreneur
Chet Richards
USAF Colonel, retired; author of <i>Certain to Win</i> among other books; USAF, ret.; expertise in business applications of military strategy
Jeff Vail
Energy intelligence analyst, attorney
Jim Puplava
Investment advisor, author, radio host, entrepreneur
John Robb
Author of <i>Brave New War,</i> entrepreneur, former USAF special operations pilot
Mike Ruppert
Investigative journalist (retired), former LAPD detective, entrepreneur
Nate Hagens
Former hedge fund manager, U of Chicago MBA, doctoral candidate @ the Gund Institute
A huge thank you, not just for this post but for the site and all the great information you are offering here!
I’ll let you know how I get on now that I have downloaded and printed the PDF form of the matrix.
— james samuel · 3 June 2009, 06:26 · #
Hi James, yes please do let me know if the grid works for you. I’m also interested in making it better so if you notice any tweaks or changes that would improve it, let me know that too. Looking forward to your feedback :)
— Paula · 3 June 2009, 16:44 · #
Hi Paula, I have been pondering this and my own need to generate some income after more than 18 months of volunteering in support of the New Zealand Transition Towns movement
I am slowly but steadily working my way through a process using your thoughtful offerings, and a wonderful book called The Back of a Napkin by Dan Roam – which offers a fabulous way of seeing patterns in large amounts of data, and then visualising the possibilities that arise from it.
I have also been busy developing our local Community Supported Agriculture project, that is gaining momentum.
I see many more fabulous posts from you, since I last visited. It’s hard to keep up with you! :-)
Kia kaha (be strong)
James
— james samuel · 5 July 2009, 03:27 · #
James, thanks so much for your feedback. It definitely makes me feel good to know my thought processes are of some use to somebody.
I like “kia kaha” — I’m going to start using it in my emails!
— Paula · 12 July 2009, 21:50 · #
See also these:
http://transitionculture.org/2009/07/01/what-employment-opportunities-arise-from-embracing-transition/
http://transitionculture.org/2009/01/22/the-200-artisan-skills-required-to-make-a-victorian-town-functional/
— risa b · 16 August 2009, 03:16 · #