This guest post is By Jason in Virginia and entry in our non-fiction writing contest .
We all prep for our own reasons. Oh, certainly it’s for the benefit of ourselves, our family, our friends, our nation, our faith, posterity, all of those have some hand in what we do. But we all prep for our own thoughts and reasons and fears. We, each of us, have our own personal, private nightmare of what will push our society over the already thin line from civilization to savagery.
For some its natural disasters, others a war to end all wars. Peak oil, martial law, pandemic, there are as many reasons to prep as there are uncertainties in our world. Fortunately, the basics of prepping overarches much of what we are preparing for.
For instance, whether martial law is declared, or a new superflu strain ravages the population, you will need to stockpile food. Whether the Iranians pull off an EMP attack or the West coast is rocked with a 9.5 earthquake, you’d best have water ready to go. Nevertheless, each scenario has its’ own unique set of circumstances, its’ own nuances, if you will, that have to be taken into account and prepared for specifically.
We try to prepare for as much as we can, but each of us has a nagging thought in our mind, that one situation we consider to be the most likely scenario, the one whose warning signs we know, whose effects we’ve researched and studied, the one who’s repercussions make the blood run cold in our veins. For me, that scenario is Hyperinflation.
Let me first qualify by saying I am not an economist. I don’t work for the Fed (thank God) or any ratings group in any way associated with pegging the economy, inflation or deflation. I did attend Virginia Polytechnic Institute (better known as Virginia Tech, HOKIE NATION!!!!) for four years, where I majored in Beer Pong and minored in Radford girls. At the end of four years, they gave me a degree in Business in exchange for my leaving campus (I still think I got the short end of that stick).
Following a stint in the service and a tour in the desert, I returned and used my G.I. Bill benefits to lounge around Old Dominion University where I got my Masters in Fantasy Baseball, emphasis on Player Personnel and Deadline Trades which they mistakenly spelled Business Administration, emphasis on Contract Management and Acquisition.
So I’ve taken a enough classes and studied enough theories to be classified as functionally stupid on the topic. Inflation, in a nutshell, is a continual increase in the purchase price of tangibles (things you can hold in your hands that have value, either in a denominated manner, or for what they can produce or provide for you). This causes the value of the currency you hold to decrease concurrent with the inflation rate.
The money you hold in your hand is worth less today than it was yesterday, because you need more of it to purchase the same unchanged item that you did yesterday. Take a 25 pound bag of rice, for example. Three months ago, you paid $15.00 for it. You ate it, it was good, you ran out, you go back to the store to buy another bag. Now the same bag is $16.00. The bag itself is the same. It’s still rice.
Measurements haven’t changed, twenty-five pounds is still twenty-five pounds. There hasn’t been some rice blight in Thailand or South Carolina to create a shortage, making it subject to the law of supply and demand. The rice is not worth more, your dollar is worth less. Now, imagine this multiplied by 2,500. Not good.
The wealth of an entire nation can be wiped out via hyperinflation in the relative blink of an eye (just ask the Germans in the Weimar era). Your purchasing power is non-existent. The dollar is now recognized world-wide for what it is: Green paper with lies printed on it. The dollar is removed as the worlds reserve currency, spiking prices higher and exacerbating the domestic problem. Stores are cleaned out as people rush to dump there useless dollars into anything that they can actually use. I could go further and on and on, but the Pack is a smart group of people. You all can follow through to the logical conclusion.
So what have I done to prep for this, beyond the beans bullets and band-aids that are standard for any scenario? Glad you asked:)
I created and filled my “Hyperinflation Safe”.
The hyperinflation safe contains what I consider my best bet to weather the initial onslaught of the problem. Let me say that there is no set “endgame” for hyperinflation. In the “global economy” we live in, there are too many variables (in my opinion) to try to predict how it will all shake out in the end. If I were betting worthless dollars, I would put it on the development and implementation of a universal currency. For those familiar with the Biblical book of Revelation, you’ll see and understand the obvious apocalyptic logic of that conclusion, but that’s an entirely different discussion. My goal with the safe is to get through the first 1-2 years of the death of the dollar. Here is what I have to do that with:
- A Safe (obviously). Don’t over think on this one. A simple, fireproof safe that can easily be lag bolted into concrete walls or studs for security should be sufficient. Let’s face it, if you are somehow overrun by looters/thieves, facing torture, you are going to give up the combination. The safe should be something that can be hidden and secured from a smash and grab in your absence.
- $2,000 in greenback dollars. This is in addition to any other savings you may have. Mine is denominated in 25% hundreds, 25% fifties, 25% twenties, 25% ones. Hyperinflation will happen quickly, but you will not go to bed with everything normal one night and wake up to greenback bonfires the next. There will be warning signs. International Bank Runs, Domestic Bank Runs, Domestic Bank Failures, Temporary Suspension of FDIC, increased Quantitative Easing with limited effects, stock market runs on commodities and an accompanying rapid increase in the price of gold, silver, and copper. When you see a combination of these, and through prayer or contemplation and discussion with those important to you, it may be time to burn through this cash while you still can. Use it to shore up whatever holes exist in your preps. There’s a bad moon ‘a risin (Creedence Clearwater was awesome).
- 25 1 ounce Silver Canadian Maple Leafs. Some may prefer American Eagles, either way, I consider them comparable. This is to hold and maintain some type of purchasing power for larger situations. Silver and gold will spike in this time. Personally, I went with the 1 oz silver because, one, I can’t afford the price of gold and two, after the complete destruction of the dollar, prices in relation to the price of silver, will normalize and deflate. 1 oz of .999 silver, 2 in a pinch should help you handle any major purchases you find yourself in need of.
- 3 5 ounce silver bullion bars. The purpose of these is two-fold. It is designed as a denominated holder of wealth to either get my family back on a solid track after the crisis, or two, to get us out of a serious and real jam. I don’t condone it, and I hope not to have to, but a well placed bribe has bought many men, women, and children out of dire straits and back into safety.
- $50 in face value of pre-1965 us minted “junk silver” coins. For your everyday purchases in the transitional economy. Think of this as your one and five dollar bills of today. The small change, if you will, to acquire the day-to-day things we may need more of as the situation drags on. My father collected and accumulated these over YEARS. He split it amongst his kids when he thought we were smart enough to understand what having it meant. Man my old man is a sharp one…
- Vehicle titles. The DW and I own all three of our vehicles, free and clear. There will be no justified “seizing of assets” for them. They might be STOLEN by thieves or the government, but we have legal claim to them. It may not mean much in the end, but it is better than nothing.
- Social Security cards. Proof of citizenship in a martial law scenario, or accompanying heightened oppressive government situation that may develop under hyperinflation, is NOT something to be taken for granted. Ever. Birth Certificates. Same as Social Security Cards.
- Passports. Never voluntarily become a refugee. Rule number one of prepping right? Key word is VOLUNTARILY. You never know where this crazy world might take you. If it happens to take you to a border crossing, a passport and one of those 5 oz bullion bars might just keep you moving in the direction you’re heading.
- Taurus Millennium Pro .45. This is not a gun debate about how its better to have a Glock or a Kimber. This is what I have and the firearm I am comfortable with protecting myself and my family as a last resort firearm when I can’t get to any of my other weapons. It is fully loaded safety off with a round in the chamber, ready for emergency use. Folks, hyperinflation can and does lead to starvation, famine, and desperation. I don’t have to tell you how folks can get when placed in that situation. If it comes down to you or me (and I pray God it doesn’t), I’m doing everything in my power to make sure it’s you, and not me.
- 3 extra clips for the Taurus Mil Pro. All filled with…
- 3 full 50 round boxes of Federal .45 Hollow Point rounds.
- A large, waterproof bank bag. You can generally get these from any bank. I got mine free from my local credit union by just asking. If this is an “empty the safe and run” situation for me, I can literally sweep all the safes contents into this bag and be gone.
As a final note, I built up my silver holdings over time, buying the 1 oz coins first in ones and two’s as I could afford it, generally one per pay period. The bullion bars were purchased after the coins, also in ones. The junk came from my old man. Normally, I would advocate acquiring these the same way we acquire our other preps, built up over time. However, silver is currently on a dip. If you can, I’d recommend getting as much as you can now.
Finally, everyone has to make their own way and their own decisions. I know my Hyperinflation safe may now work for everyone, and some folks won’t see a use for it at all, but it makes me sleep a little better at night, and if all else fails, all that silver will make great ammo for my slingshot :)
This contest will end on October 10 2012 – prizes include:
- First Place : $100 Cash.
- Second Place : $50 Cash.
- Third Place : $25 Cash.
Contest ends on October 10 2012.