Most people look at rising oil prices and think, “100 bucks to fill the tank...brutal”. 

I understand that.

But oil is so much more than just the gas in your tank.

Oil is energy, and it sits underneath nearly everything in modern life. 

When the cost of energy rises, the impact eventually works its way through the entire system.

Food gets more expensive because it has to be grown, processed, refrigerated, and trucked. 

Housing gets more expensive because materials have to be manufactured and moved.

Travel gets more expensive.

Consumer goods get more expensive.

Business operating costs rise.

The point is that energy costs do not stay neatly contained in one part of your budget.

…and this is happening at a time when the average American and Canadian family is already under pressure.

Household debt is high.

Credit card balances are high.

Housing costs are high.

Food costs are high.

…to name a few…

So when energy costs rise sharply, it is not hitting a strong, comfortable, financially resilient middle class - it’s hitting people who are already stretched thin. 

Now, if you are reading this, chances are you are in a stronger financial position than the average person.

You have probably worked hard and deserve to be, and aren’t likely to be the type of person who misses a mortgage payment because gasoline goes up another few bucks a gallon.

But what about your children?

Under this trajectory (and beyond just how expensive life has gotten), what kind of world are they faced with building their lives inside?

What kind of economy will they be expected to navigate?

Will things get so bad that crime is rampant and they have that to worry about, too (desperate people do desperate things…human nature).

As the successful person you are, you probably have plans to help your children with a down payment (which is quite common nowadays). 

You may be able to cover an emergency expense for them if the need arises.

But will that be enough if the cost of everything keeps rising exponentially relative to what they are able to earn (and what you have saved)? 

That is the part that responsible families need to think about.

The assumption that your children will be able to build the same kind of life, in the same place, under the same rules, with even a remotely similar quality of life is becoming increasingly unlikely.

But hey, however unlikely… maybe it all works out and things take a turn for the better…? 

I hope it does.

But hope has never paid a single one of my bills, and truthfully, this “hope” takes wishful thinking to a whole other level.

If you have worked hard to build a good life, protect your wealth, and give your family a real foundation, then it makes sense to ask a simple question:

How much of our future should be tied to one country, one currency, one tax system, one banking system or one political environment?

Speak soon,

Mikkel

PS. Take this as a reminder that your family’s cost of living is tied to systems you do not control. If you want to understand your options before things get any worse, take the time to carefully read this important letter. If you have a family you love and have built a life worth protecting, do yourself and your loved ones a favour and do it now. 

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