Tuesday, May 22, 2012
Emergency planning part 2: Hyperinflation
The second major threat is hyperinflation. This is where the money supply is expanding so rapidly that prices are going up on a daily basis, perhaps hourly. The best thing you can do in this situation is to understand that hard items that are useful tend to hold value. 1) Paper currency goes up so fast that you must spend it immediately. Then you trade for what you need. 2) Gold and Silver will be more of a stable currency. Experience has shown that hard commodities like gold can be used to purchase other hard commodities, like clothes, shoes or weapons. Hard commodities are not as useful when attempting to purchase consumable items like food, water and fuel. 3) A six-month supply of food is recommended. Back up water, fuel and even gas is recommended. For example, I keep the two gas cans in the garage full. I empty them into the cars at the beginning of each month then I re-fill them. I have a spare propane tank for our gas grill. I may purchase a 2nd backup. Dehydrated food can have a shelf life of many years. REM (Ready to eat meals) can also be a good supplement. 4) Begin a vegetable garden if you do not have one. Expand if you don’t have one that provides extra supplies on a yearly basis. Any and all food will be in demand. 5) Gas and fuel of all types will be in demand. Alternative forms of transportation may become necessary. Bicycles can provide this on a limited basis. 6) If hyperinflation does hit the US Dollar, the barter system will replace money. You will need to become proficient at exchanging items. Everyday items will be extremely expensive. Shoes, clothes, soap and toiletries: Yes, toilet paper. Many will disagree with this statement, but our President has placed the U.S. on the strategic defensive. This means that anyone living in or near a major city is now in the front line. With all of the financial problems in Europe and the U.S., things can easily spin out of control. People will fight over scarce resources. We are already beginning to see this. (Wisconsin is only a minor example) The question is how far will it go before it settles down? Hopefully, none of this equipment will be needed. I do attempt to make things as inexpensive as possible, not to mention useful even if things DON’T become extreme. If anything does, at least you may have some equipment that is in demand and is readily tradable for something else. At best, it just may help save your life.