
Inflation is pretty much a built-in part of our current economic system. Every dollar that comes into existence is borrowed from somewhere – eventually leading up to the ‘Federal Reserve’ – a private entity which collects interest on ALL U.S. dollars.
Since more dollars are always coming into the system (the system would actually collapse without this) there is a sort of built-in inflation. For various and sometimes complicated reasons, some periods of our history (and no doubt our future) involve even higher inflation (than ‘normal’).
The effects of this include a more rapid erosion of the dollar’s value or purchasing power while the effective prices of things go higher.
The Federal Reserve tries to control inflation (the devaluation of the dollar) in context with the economics of the times. One might say that they are actually manipulating it.
Because there is SO MUCH debt now (everywhere), ‘they’ have to keep interest rates (the price of borrowing money) and inflation under especially tight control or else the whole thing goes bankrupt (debt defaults?).
In fact rates have been lowered all around the world to near zero (and negative!). Why? To keep the charade going – to keep the borrowing going – propping it all up.
The question is how long will they be able to control it all, given the gargantuan debt? How long will others buy our debt when rates are essentially (almost) zero here right now? “Full faith and credit” and all that? Ya-right…
UPDATE 2020
This blog post originally published during 2017 (as you can see from the comments dated below) when I asked the question to our readers about inflation resistant assets.
However I am re-publishing today because I have a feeling that we’re about to see inflation (currency devaluation) which may be devastating for many people.
I’m not an economist. This is not financial advice. Rather it’s an observation of what I feel is inevitable. The party’s over. But most people don’t know it yet.
The system was ready to collapse before the Wuhan virus hit. But since then, we all know what has happened up until now.
Real unemployment in the US is around 24%. More than 30 million people here have recently filed unemployment claims. Main street businesses are crushed. Many small to mid size businesses are largely damaged or gone. Even many big businesses are going bankrupt as we speak. Production is essentially broken or non-existent right now to a great extent.
Many TRILLIONS have just been thrown at the problem as a temporary band-aid. TRILLIONS MORE will be spent soon. Shortages are becoming commonplace. Prices for these these things are going up at the same time people are losing their jobs and income while government devalues the dollar by spending TRILLIONS upon TRILLIONS.
It feels to me like we’re going to see inflation hit our currency as its value is devalued. In other words, if you’re holding cash, it’s going to be worth less – perhaps much less in the future as buying power diminishes.
Inflation Resistant Assets
So, what to do?
Okay, so, back to the question at hand. If we were to anticipate that at some point in our future real (much higher) inflation will kick in, then the prices of many, most, or all goods will likely go up, and up, and up.
So what are the things, the assets, the goods, the products that might be better to get your hands on now, before inflation might go higher or get out of control?
What are the assets that are inflation-proof or inflation-resistant in the context of preparedness?
I’m not suggesting that you go out and start a shopping spree, but it makes for good discussion to hypothesize the practical assets that might be good to have before any onset of inflation (currency devaluation)…
UPDATE: A few of your bullet points from the original discussion during 2017:
In no particular order of perceived importance…
- Gold and Silver
- Get out of debt loans where interest rises with inflation
- Food (any and all)
- Land (productive farm land)
- Land (just about ‘any’ land)
- Plant food producing trees, etc..
- Seeds, heirloom (in other words, grow your own food)
- Firearms & Ammo
- Canning equipment
- Food preservation equipment (any)
- Everyday consumables
- Work boots and heavy-duty work clothes
- Alternative energy source or sources
Note: With the presumption of inflation, we might simply say that EVERYTHING will go up in price, so this list could essentially include ‘everything’. However I’m curious about what might be especially prudent to acquire before hypothetically high inflation sets in. In other words, might some ‘things’, assets, etc.. go up higher than others and which of them might be a better ‘investment’ now rather than later?
The obvious assets are gold and silver. They are real money that will maintain value through the bad economic times.
The less obvious assets are the things you will actually need in the event of hyper-inflation or any other disaster – food, weapons, and barter items.
The even less obvious “assets” are survival skills – how to grow food, how to repair the house and appliances, how to fix cars, how to make hooch. Basically any skill that enables you to take care of your family, or produce extra income to support the family, will only increase in value as times get tough.
Couldn’t agree more with you Bobcat. Skills are the real thing-can’t be confiscated or stolen, weights nothing and will produce assets (honey and wax for a beekeeper or fresh produces for a gardener etc.)for life. Goods can be lost, stolen or just be used-up over time.
Good Productive Farm Land
Land has always provided wealth for kings, dukes and barrons for thousands of years.
A good piece of property with good security, well water, low population and the ability to grow food, raise animals for consumption and a conservative population with a small intrusive county and state government. Becoming very rare.”Sounds like Shangri-la”.
A well built, secured home with alternative heating and electrical generating ability.
Light bulbs, filters, gas, propane, diesel or anything necessary to maintain must have items like auto mobiles, gardens, work clothes, generators, etc.
Stay healthy and fit since medical cost will only rise.
Medicine, first aid supplies, prescription glasses or any other life sustaining needs that can be stored.
If high inflation occurs the basics such as food, shelter, taxes, medical needs will take priority over other needs. Wishing one had a pair of work boots or gloves after the money has run out is not the time to start thinking about it.
The best return on investment can be found in SEEDS, land to grow the food on, and the knowledge of how to grow the food, preserve the food, and save seeds for the next growing season. I’ve been working on this for the past 8 years and feel pretty secure in the fact that I grow enough food to keep myself alive.
Goatlover, I am with you. Seed-saving and feeding ourselves will be the difference between survival or Fema camps, I think. This year I am planning my garden differently, going for more carbs and calories, deep dark, heavy nutritious greens, more winter squashes (they keep well, especially the Lakota), and more beans for drying. Seed-saving is quite easy if you let your plants mature enough to harvest ripe seeds. So gratifying too.
Heirlooms rule!
Now is the time to load up on ammo, magazines, guns etc. These are really durable, shelf stable items that hold for years. You can rest assured that in the next ten years or so, we are again going to be under an assault on our 2ndAm. rights.
You might need those thing sooner if the left keeps up their attacks. I think the left will take us into a hot civil war, right now its still cold. Obama is now being tied to a shadow government that he established before leaving office. This guy can not just go away!!
I am your future 3 years from now and you are exactly correct.
Bullets, beans and Band-Aids.
Very true, like minded friends is extremely necessary. Many hands make light work and the cost of needed tools can be shared. Also focus on ammunition more than the firearms themselves (if you already have a few needed choices). Firearms will still be around decades after ammunition for them has been depleted.
Great topic – thanks Ken !
we have a trio of like families, 6 adults, all abutting…so we have that covered as well.
total land area of 125ish acres as well…
Get out of debt! Invest in an acre or two of land, buy some seeds, and grains, canning equipment like pressure canner, water bath canner, stock pots, quart and pint jars and lids, gardening hand tools, firearms and ammo. A bushel of wheat weighs 60 pounds and costs today about 8 or 9 dollars from the farmer. A sealed bucket of wheat is only 40 pounds but costs $40.00 to $70.00 depending on where you get it (since a bucket of wheat is only 2/3 of a bushel that weight differential puts a bushel of wheat costing $53 – $93 in a bucket.) The second best investment I ever made was back around 1999-2000 when I bought about 5,000 pounds of mixed grains (buckets of 7-grain mix, hard red wheat, barley, oats, corn, rye etc… but mostly wheat). At that time I paid about $12.00 to $15.00 a bucket when wheat was about $3.50 a bushel from the farmer. I could not afford to buy that same grain today in buckets since it costs nearly five times or more than what it did then. The cheapest I ever paid was back in 1995 for several bushels from a farmer down the road. It was soft red wheat and cost me $2.25 a bushel. The down side of this was that I had to winnow all the dirt and garbage out of the wheat and put it up in jars myself. I still have a couple cases today. Canning equipment is a long term investment since most of it will last a life-time and it is not getting any cheaper. Gardening hand tools, seeds, guns and ammo should be self explanatory. A lot of folks say buy gold and silver. This is a delicate but explosive and arguable topic but never-the-less, there is some historical credence to that assertion, but only in a broad sense and only for those that are in control of the money system. Even if gold and silver were used as legal tender, but in today’s America it isn’t and because of that I don’t see gold and silver as a viable investment for the lowly commoner like myself. The people who have a monopoly on gold and silver can just as easily deem it unlawful to own or use anytime they want. Plus, I have a problem paying $1,400.00 for something with a face value of $20.00 or $50.00. When the price of gold and silver comes down to be more in line with the face value of the coins then I might consider it. If America were to ever go back to an honest money system, then I might consider it. While I do have a small stash of gold and silver eagles and a bag or two of silver dollars, I’ll be damned if I’m going to spend them on something of lesser value from what I paid for them. What for example, pay 15 silver dollars for a $15.00 bottle of wine when… Read more »
Interesting; I’m planning on retiring in a little over a year and have been massaging this exact question.
Remembering you asked; “So what are the things, the assets, the goods, the products that might be better to get your hands on now”
Goods/Products; My simple answer is this; make a list of the everyday things/consumables you use (everything you use), most of us have done this, and fill, fill, fill OVER FILL the Deep Pantry with these items, the cost and availability of some/most will continue to rise, or the supply ‘may’ dry up on some. And for crying out loud, do NOT forget the TP & Gin LOL
Assets; are NOT consumables (stuff we use), things like Gold/Silver and Land are assets that will rise in cost and continue to do so, Money in the bank, a savings account, cash are not assets. Although I don’t like Gold and Silver, I do agree ‘some’ is a good idea. As far as land/home in my 50+ years of buying/selling I have never lost money on those “investments”. So if you do NOT own a hunk of dirt, ya might look into it, “they” are not making any more dirt and the price WILL always grow.
Skills are not an Asset in the sense of ‘cash’/inflation; but a must know if one wants to fight inflation with “doing it myself” skills are a must, I will agree with the proper skills one can cut down the “cost” one pays and charge others for their skills, but I will argue that skills are not a tangible asset BUT are assets for sure
Unfortunately there are some “items” that we cannot “stockpile for inflation, Taxes, Insurance, Haircuts, ETC. will continue to rise forever, the hard part is to plan for those….
NRP
@ CrabbeNebulae
Haircut….. I did that once, was NOT a good thing to do; it was so bad the late wife actually shaved my head, THAT was even worse… HAHAHA
Thank God for making hats…
NRP
NRP–
Do they still make flowbees? haha
hook it up to yer generator and you’re set!
dude
Just looked it would seem they still do!
I’ve noticed a sharp increase lately in FD foods. Maybe it’s just supply and demand now that the left is starting to panic. But one Augason item we enjoy went from $34 to $57 in a year. Given their long shelf life, that would be a good inflation hedge.
What about refrigerant? People in the dead of summer will do almost anything to get the AC working again. Thanks to the low-functioning trash at the EPA, a jug of R-22 is going for >$500 now, R-12 for $700, if you can find it. Even R-134a is highly restricted here in Cali requiring a $15 deposit on each 12 ounce can. Then there is all the new-fangled azeotropes like 410a and 404a. You can’t just top-up a leak, it all has to be removed and weighed in with virgin refrigerant. And even those new ones are on a short list for replacement. The stuff keeps forever. Bans and regulations seem to change yearly.
Also propane! My fuel of choice, especially here in LaLa land where our boutique-blended gasoline goes rancid in 90 days and eats non-metallic engine parts. Propane is great, stores forever, not messy, easy to stack on a shelf.
+1 on R22. Banned from manufacture and import as of this year. Only reclaimed is available. Even if you dont have the skills to recharge your system, it would be nice to have on hand incase you have a small leak repaired, and wont have to pay the huge premium for refrigerant after the tech does the repair.
@ McGyver
OK OK, you had me there… My Quote “yes I still, and probably always will, dislike CA.”
You just sent me back to the “I HATE California.” HAHAHA
“Did you know that effective 01 January 2017 it is ILLEGAL to sell a transformer based battery charger in California or Oregon?”
Sorry McGyver, but ya just can’t fix stupid in the .gov… Remembering they are the same people (EPA) that shut down ALL underground Nat-Gas storage in CA. yes-sir you guessed it, ALL Nat-gas in CA is now “real-time” supplied.
NRP
Yes, that was a result of the Porter Ranch leak last year. This happened because an emergency containment valve that failed in **((1979))** was abandoned at the bottom of the well and forgotten about until primary containment failed 35 years later.
In this case gross negligence on the part of Sempra Energy and their predecessors is 100% to blame. Consider that, along with the tragic NG explosion that took out a whole neighborhood in San Bruno a few years ago, and I almost can’t blame the state for handcuffing them.
Stopped clock, twice a day, and all that.
What?! Really?! Transformer-less of any size power supply?? This is nearly unbelievably over-the-top with Nanny State control. We have politicians who believe they are electrical engineers and know best for us all (although I’m not a CA resident…)?
So when I cross the border to California during my upcoming trip, are they going to be searching my vehicle for any power supplies that I might have with a transformer inside? (tongue-in-cheek)
@Ken: You know, of course that when a 12 volt battery drops below a certain SOC that the solid-state chargers won’t even turn on. I wonder how many million of tons of otherwise salvageable lead-acid batteries will end up discarded into the environment… Yay progess!
Oh yes… our “Agricultural Checkpoints”. Who are those clowns in the official-looking costumes? What has been their purpose since the med-fly scare thirty years ago? A few years ago I found myself being grilled, Nazi-style by one of those checkpoint fools. I maintained that it was none of his business “where I was coming from?” Things got a bit heated. But he backed down real quick when I mentioned unlawful detention and involvement of real police. Alas, I probably wouldn’t try that with the Federal checkpoint on North 15 in Rainbow. They’ll just disappear a guy. America!
Maybe NRP and Lauren are right. Maybe it’s hopelessly gone.
Mc just think of it this way just more lead for casting bullets !!!! Really nasty way to get lead but that’s life ,,,I for one am tired of California BS , wasn’t there a movie about the monkey wrench gang? Never saw it but was told about it ,,doing little things to wreck the system, are we at war with the SNOWFLAKES and leftist in gov ?? Where has freedom gone??
Oldhomesteader here,, DW is not to blame for this post DH did it
As I started reading your post, I thought you were going to say the skills to barter successfully. Which would include reading body language, etc..
I’m kind of on the fence about gold and silver. In that it is only worth what someone else is willing to give you for it. And you cannot eat gold.
When I got my FD or DH food on sale it was a little more expensive than fresh back in 2010, but cost me 25% less than fresh, 6 years later. It is inflation proof after a few years in the 3 to 20 year term storage.
Growing your own home garden with heirloom seeds used generations after the first investment of seeds or wild gathered food is inflation proof since there is no price on it.
Salvaging in junk piles and finding free giveaways are inflation proof. I got board lumber, my computer, crabapples, apples, squash, electrical wiring, nails, and fix up furniture/cabinets this way for free.
Libraries are free for borrowing books on survival, gardening, homesteading, etc.. Just don’t be late turning in books. Fines probably will be inflated year after year. Getting info on the internet still costs for internet service, always inflationary.
Water can be non-inflationary if it comes from a spring or a hand pump well. I’m lucky to have an artesian well nearby–free fresh water.
Land can be inflationary or deflationary, so I don’t count it as I have seen with Detroit, farmland, and even my own property yo-yoing all over the place in assessments over the last few years. I think it has to do with banks lending practices, the economy, and the demand.
For products to trade, I like the 3 T’s .Tobacco,toilet paper and tampons. Indefinite shelf life and everyone is going to want at least one of those items.
Land and skills. Gold and silver might have value, but only if those you’re trying to pay put the same value on it. Currency is based on trust, not intrinsic value. Precious metals have no intrinsic value, but that’s another argument.
So land, skills, and the ability to restock your assets. Land is for making food and other products that someone might want. In order to have livestock or a garden you must have land. You must also have the skill to grow your food and/or raise livestock, or whatever you use your land for. Sooner or later everything else will be gone.
This is a subject (inflation proof assets) i have been working on for years. These are:
1. Planting fruit trees, peach, plum, blueberry, pear, pecan, apricot – to name a few
2. Planting asparagus, sweet potatoes, garlic, onion
3. Planting grapes, black berries,
4. Raising cows, chickens, ducks, pigs
5. Catfish, perch,
All of these are eaten, self renewable and I do not even have to barter for them. This is my basic plan
Tissue Paper….never goes bad!
Need money? Sell some at a flea market. That stuff has doubled in price!!
Smash them, pack them in a 55-gal drum and close it up!
Sugar, salt, spices in bulk.
Spices 8-years ago where about $2.00 each. Now they are $3.00-$5.00 each.
Diversification is important in investing as well as having priorities to invest in . We will need water,food,clothing and shelter in order to survive . Those would be my first priorities .These needs can probably best be met by owning your own land that can provide you with water and have arable ground to grow your own food. That was our goal.
I suggest investing in work boots and other clothing.Another area is to invest in the equipment to can and preserve food that you will grow in your garden . Another area to invest would be in nails,screws,fencing materials,plumbing parts and a wide variety of hand tools . The list would be different for each of us because we are a diverse group.
Another of our goals is to have enough cash to pay 1 year of property taxes . We also want some cash to use in extreme emergencies.Remember your friendly bank is only open 1/3 of a day 5 days a week and closed on holidays. In a martial law situation cash may be outlawed and replaced by government script .
Gold and silver would be at the end of my priority list . In the 1930’s FDR confiscated gold from American citizens, it can be done again .
BLUESMAN
The pm confiscation was accomplished because the populaces was rather naive for that era. They truly did believe in their .gov’s, then. All one has to due is read papers from that era. Not stating that everyone was gullible but enough that it was easy to enforce.
@ BLUESMAN and Antique Collector
I will have to restate my position on stockpiling PMs. I think they are a FANTASTIC investment.
Formed Brass and Copper covered Lead is a GREAT investment. Worth 100 times the current investment cost if TSHTF. Even now I have a brick (10-50 round boxes) of 22LRs that I paid $18 for, and they are how much now? IF you can find em…..
NRP
Hi when you say cash, are you saying greenback dollars or fiat currency?
Bob.
They can only confiscate your gold and silver if you let them. Why would you even admit you have any. Precious metals have been used in trade for thousands of years and always will be. Government “cash” is just paper. Backed by nothing.
Lots of great lists already posted. I think of inflation-proof as any asset that will increase in value faster than the rate I could earn interest or other income on that money if it is invested elsewhere. To narrow it down further, the best choices are those things that increase in price faster than average price increases in the economy.
Real Estate (in most places)
Food (including food-bearing plants, trees, seeds and livestock)
Useful Education (formal and informal – including trade school & books)
Alternative energy sources (to combat ever rising utility costs)
Good fishing/hunting equipment
Personal Security items & training
Paying down debt – inflation equals higher interest rates so minimize debt
Equipment that pays for itself with increased output or efficiency that exceeds your investment (planting, harvesting, canning/drying, building/repairs, etc…)
I agree with everyone here, especially about holding land that is productive. The only reason we have any gold or silver is if something happens to the dollar, or the economy crashes, or whatever, and we still have to pay taxes on our land. Thankfully, we are debt-free but there will always be taxes. Also, the first thing that came to my mind as far as tangible goods, is good fencing materials. Come next month, God willing, I am going to town on all the fencing materials we might possibly need for the next few years.
Oh, and add to my list cocoa, coffee, and TP.
DJ5280
Depending on your type of terrain you will be fencing, you can use field & stock fencing(330ft per roll),it is more pliable. What I am looking at for replacement(or addition)is welded/tied 2×4 horse fence(100ft roll).
Field & Stock the best I have found is ‘red brand’, it has been awhile but once upon a time AMERICAN made. Yes, it will cost more $$ but well worth the dollars. Ours fence went through two major HOT fires, and the metal did not degrade like most fencing materials will from extreme temperatures.
Thought would give you a heads up to save $$ by checking out what is on the market before you purchase.
Antique Colllector….My thanks! Great info and will definitely check it all out. Looking to fence off mostly garden and small fruit areas. Aaaand…just want to have it around for the future, if needed.
DJ5280
If you purchase “T” posts buy the 7 1/2 to 8 ft++, and order the heavy duty posts. Also a good “T” post puller, you never know when you will need it for moving things around. Post driver, better have two, and plenty of the “T” post clips(lots of baling wire-jic).
If you like barb wire, keep a couple of rolls on hand jic.(& band-aids lol)it bites all the time–I should know.
Great topic Ken. We like to think that our little piece of heaven on earth will supply us with most of what we need but of course that is a bit of a lie we tell our self. As we age we can do less for our self. And of course we can’t make our own shoes but we can make moccasins, we can’t make our own prescriptions but we can try to learn alternatives, we can’t make our own sugar but we can tap maples. We can’t grow coffee here on the prairies but we can learn to roast wheat or dandelion roots. What I am trying to say is the best thing to invest in is skills & some tools to use with the skills. Of course seeds, & dried foods like rice, beans, wheat will also be very handy. One thing I have noticed that has really inflated in the past couple of years has been canning supplies like jars, & snap lids so I would suggest a stock of them. Even used jars have really shot up in price in our area.
I agree. No one besides a billionaire can cover all the bases for the future and not even these resources are enough (think medical, dental, weather problems, …). I have quite a lot of the needs covered for a few years, but even I get frustrated by all the holes I see for a sustained future unless I can organize the entire community for miles around me. So, unless you can be satisfied with the progress you have made in prepping and fighting inflation/economic problems, you will never be happy. But keep the fight going and have faith and hope.
Gold and silver may be a good barter item,but if they become worthless, they’ll pour into good bullets.I’ll also hammer mine out into useful items.Also lots of toilet paper.Lots.Good trade item.Also need lots for myself.Seeds,yes.Heirloom preferably.Skills,definately an asset.Most posters here seem to have a good handle on things.Good to see.
Its late, and i skimmed the comments.
IMHO – Food and water first. Education and skills. Being a DIY of ALL and not mastering any perfectly – but, enough to “pass” is always a good thing. The more you know, the more you grow, and the more you can take care of self and the ones near you – the better off you’ll be.
Growing food is one thing – preserving is another. Anyone can toss a seed in dirt and water the dirt… knowing what else to add to the dirt is always the educational and skill part. Etc… After your harvest – you must save some… Preservation – educational and skill… Etc. I could go on. We all know Water and Food is the most important… If we don’t hydrate and eat – we can’t continue… I would say Heirloom seeds, salt, and water are the most important, everything else is up to you, and your priorities.
Shelter. But, if 2/3’s of the world were to be gone – there would be plenty of ‘shelter’
Didn’t know you could buy skills. maybe I read the question wrong
Hi Poorman,
If not outright buy them , I think in some cases you can spend to acquire skills. Taking classes in everything from self defense to 1st aid, getting shooting lessons and paying to practice at a range or club, buying books such as Back to Basics, even buying foods to practice canning (knowing you may not get it right at first). To me, any of those are inflation fighting investments. :)
Everyone talks about bartering. However, to be SUCCESSFUL at bartering, skills are needed, skills of a salesman, etc.
Skills can be purchased via training classes. Not all training is free!!! If you attend a tactical shooting class or foraging class it will cost money, but you will develop new skills!!!
Agreed, if you have disposable income going to some classes may be the best use of your money. I went to a 3 days beekeeping class this month and next I have a 2 days applied permaculture gardening one. April is bushcrafting etc. After practice makes perfect.
A question for y-all;
Are Firearms an Investment that are “Inflation Proof”?
NRP
every=never
try typing with a kitty laying on your arm which limits your ability to move your hands. Until you have HAD ENOUGH!!! &^%$() cat.lol
Well since you mentioned it, YES, purchasing TP is an inflation fighter, the “cost” of everything (IMHO) will NEVER come down on 99.99% of products we all use.
I truly believe that having a years, or more, worth of “everything” one uses is a GREAT way to fight inflation. FYI, reported inflation rate was 2.5% last year, I feel it was a LOT more but ya know the .gov and their numbers.
Ken asked “Best Assets To Buy That Are Inflation Proof”, in all reality anything you have in your hot little hand is inflation proof, being that you already have it BEFORE the price goes up. SO yes that Deep Pantry’s continence is a fight against inflation, or basically any other “item” you already own before the price goes up. So I will admit Ken hit us with a trick question for sure….. BUT in the meaning of the article, I know we are on the same page.
FYI, money in the bank, ahhhh not so much, TP in the closet ya bet-ya it is.
NRP
NRP,
Not in good times, but they pay dividends in bad times! You only have to look at those who panic bought after Sandy Hook and now those same rifles are sell for half today. Damn Capitalism!!!
@ GaryMan
Agreed, BUT, those that buy in “panic” should know better, so of course the value will decline.
As for “Not in good times, but they pay dividends in bad times!” I personally feel that those that believe the “Bad Times” are over…. Well good luck, heck even read the MSM about what’s going on in the world, not just our own backyard, frightening. Then add the hyper-inflation we are heading for…. Example the Dow at 20504.45, up 1000+ in less than a month….
I don’t see the threat of the “reset” as being over by any means
NRP
NRP,
Yep, I agree. I think the bad time are upon us or soon will be. The left is far better organized than us and are willing to use violence. They don’t play by the same rules and don’t respect law and order. This is not a time to let down our guard, but double down.
While this conversation thread topic is important to consider, it’s off-topic with this article so is best discussed over on Saturday’s open-forum post… ;)
oops sorry. Reading down through the discussion column and din’t pay attention -just clicked on reply
Maybe your posts should be more timely considering major events are going on effecting the entire stability of the US government. By the way US general over Navy seals came out yesterday on NYT and said Washington is in chaos and he hopes it gets under control.
Ken is here to keep everyone in single file. Dont get out of line. You shall only discuss what we say. OBEY. Who funds this site anyway? Intel sources?
Why are you using 3 different screen names , inside, info, & dude from the same IP address?
This is an information site not FB. When this article goes to the archives people looking for it expect it to be on the subject not off on another tangent. It wastes people’s time. Post on the weekend free-for-all. People will see it in discussions and will respond if it merits a response.
BTW, Washington is always in chaos.Always! The only reason you know it is the media are trying to discredit Trump instead of covering up like they did for obama.
Not much has changed but people’s perspective.
And yes, don’t take Ken for a fool… It’s insulting and has no place here.
I have read with my own eyes an official white paper the California Air Resource Board(CARB) presented to various regulatory agencies in California.
In a nut shell they trying to develop a regulation that will limit what color of cars that can be sold and painted within the state. They are not defining color but more the technical performance of the color. The darker the color the more the car absorbs sun thus more Air Conditioner use.
Along this same line of thinking,I suspect all roofs will have to be white. Black Asphalt (racist I know) will be replaced with white asphalt.
I don’t know the time line of the car color nor do I care. I’m done with California and its over regulation and too many people!!! seriously, there everywhere, like cockroaches….most in debt up to their eyeballs, most could care less about community or for the most part sovereignty of California and/or the United States.
As a fellow Californian I concur with much of what you are saying. The fact is though color or lack of it does contribute to heat gain. As I recall from my art class in junior high, black is all colors combined and white is no colors added. There is a reason that solar water heaters are black, they absorb more heat. I’ve owned cars with black interiors and on a hot summer day you had to open the doors to let the seats cool down before you could sit on them. My wife and I once owned a nice boat with a six inch stipe of blue paint on the fiberglass hull. On a sunny day that part of the hull would get so hot on the inside of the cabin it was uncomfortable to touch.
Point being is if you are storing anything in out buildings that are not climate controlled better to paint them white and put a reflective roof on them. You will have less heat degradation of whatever you are storing in them.
Art colors and light (rays) colors are different. In physics, white light is actually the combination of all colors. When you see something that appears black, it is because it has absorbed all of the color wavelengths. None have been reflected back to your eyes. In this case, the black object is not reflecting any colors. So you are correct in that the energy (light) has been absorbed by an object that appears black. This is the same reason white objects are cooler. They reflect all of the light wavelengths away from the object, which causes it to appear white.
I am a believer in guns and ammo butt remember that gunpowder is an organic compound that does degrade if not stored properly. (cool and dry storage conditions that do not suffer from extreme temperature fluctuations.) Most important: protect from extreme heat as in a storage shed in Arizona or within a CONEX container in the middle of a desert somewhere.
Both black powder and smokeless will degrade and has a tendency to burn hotter or ignite spontaneously when exposed to temperature extremes. Knowing this, I do the following with my powder, loaded ammunition and reloads: I write the date of the reload or date of purchase on the package or box that contains actual gunpowder and try to use it all within 10 years of purchase.
Knowledge is power so pass it on. These bits of info were obtained from arson investigation reports from cities and towns within Arizona during the 1980’s and 1990’s. Fires caused by presence of large amounts of unstable gunpowder within garages, outbuildings and storage units. All said locations had no air conditioning to help moderate the temperature during hot summer months.
Toilet paper and tampons? Why not paper plates too. How will these items be replenished? Disposible paper products are terrible investments.
Cloth diapers and wash cloths are cheap and reusable.
Ben Pow
The key to bartering is not immediately needing the item you are bartering for. If you are haggling, say your not paying that much and walk away. They will almost always come back with a lower price. I just got back from Mexico and used this tactic successfully several times. I got a $24 hat for $11. I wanted the hat to keep the sun off during a tour, but I walked away willing to endure the sun. The guy ran after me and offered it for $15. I told him I just wanted a cheap hat and his cheap hats didn’t fit my larger head. I kept walking and he said $11 for the really nice custom hat. This was less than the cheap hats and it’s a great souvenir. I also got a $65 dollar silver pendant for $30. My daughter wanted it, but it was too much. She and my wife left the store to look elsewhere, but I stayed looking at some other things. The guy kept going lower and lower on the pendant. He finally offered $35, and I told him I’d give him $30 cash. He had to go ask his brother if this was ok. The brother said no. I told him I didn’t want it and started to leave. He says, “I guess I can do this if you have cash.” I had them throw in a $45 box of Cuban cigars for $20 too. He saw I was kind of interested in the cigars, but I kept refusing to buy and he kept lowering the price. I finally said I didn’t know if I was allowed to take them through customs and didn’t want to be out the money. He dropped the price again. (I don’t smoke, but my dad will love them). In all, I spent $65 for items marked $145. My wife couldn’t believe it when I caught back up to her. We passed the store later on our way to the tour bus. The guy was hanging is head and looking sad. He says, “Come back into my store and buy something so I can make some money today?”
Did that $80 you saved mean more to you than someone living in a 3rd world country? I’m sure a loss of $80 to him was much more devastating than the satisfaction you got from your “savings.” Bartering is supposed to be a fair trade between parties, not who can squeeze the most out of someone more desperate.
Yes fixed interest debt with the purchase of some thing good is a great correction.
I wonder what the reasoning for him saying get out of debt was. I ask this because I don’t know but debt has so many facets. One does not want to go broke.
With purchasing power losses of money monetary assets are the crux of the immediate problem!
This is a general theoretical answer: It helps to put things into two category pairs.
Is it?
(asset or liability) In the accounting sense and common sense, sense.
Is it also?
(monetary or non-monetary) Is the asset or liability monetary or non-monetary?
Look up the definition of monetary asset. Links are below. (For a learning exercise identify assets that are monetary and non monetary, then do the same for liabilities. Think about it.)
Non monetary assets are good. Examples are tangible things, education, books.
Monetary assets are bad. Examples are cash, accounts receivable, owning a loan of money at low fixed interest rates. Unless, you receive a huger interest payment than monetary purchasing power loss. An example is owning a 1 year loan with 100% interest. But, there is still risk if the interest is fixed and the purchasing power loss goes higher than the interest. If the interest is variable than it is not quite a monetary asset.
Often the contrary can be said for liabilities.
http://www.businessdictionary.com/definition/monetary-asset.html
http://www.accountingtools.com/monetary-asset
http://www.investopedia.com/terms/n/nonmonetary-assets.asp
http://www.accountingcoach.com/terms/M/monetary-asset
“Best Assets To Buy That Are Inflation Proof?”
Great question! That is an age old question.
Some great answers too!
Plane ticket.
That was for 0ldhomesteader.
Inflation proof stocks!
A farm with fixed low interest non callable mortgage. The farm should include all capital equipment spares and supplies stockpiled ahead paid for by said mortgage or loan. All capital must last through the episode because if it is replaced it will be at a higher nominal price. Add a few more farms and rent them? Worked in the Wiemar republic until… Maybe the farm could have finished production facilities also. Factories can do well.
But, in theory landlords could do well. But, in Wiemar the rents were controlled by laws. Yet the real mortgage liabilities evaporated.
Yet, in Argentina the farms were not allowed to export thus their products became price controlled.
With this 2020 update, I say, food, food, food. And the means, methods, and assets to produce your own to the extent that is feasible to you and your own situation.
Along the same vein, what about a chest freezer. Though it’s nearly impossible to find one right now (sold out everywhere), if you do find one, that’s something I would get.
There are plenty of “small” assets to consider (meaning, they don’t cost too terribly much). What about larger or more expensive assets to acquire?
Note: I would not suggest going into debt to purchase certain assets. Though fixed-rate loans would be preferable. Credit cards are the worst.
Ken,
This a good time to study this subject again. I look at this chinese flu situation as a test run for the future.We are now experiencing food rationing and shortages as well as shortages in many other products as well. To top it off there are thousands of businesses that are closed , many never to reopen again.
I think the things to buy as a hedge against inflation are things we use or need on a regular basis. The list can be large and cover much more than food items. The list will certainly vary from one person to another. You also need space to save your stuff in. You must determine between a “want’ and a “need”. Is it nice to have or do I really need the item?
I like lists, so wife and I have discussions,determine needs,make lists ,examine the budget and make decisions and move from that point forward. When products get scarce,prices increase and we see that right now especially in food products.
We have a window of opportunity right now and I fear it is slowly closing. If you have the financial means to invest in things that you need ,do it soon.
Interesting repost of a good thought provoking article Ken.
Did a quick reread of the comments, WOW we thought it was bad 3 years ago.
Look see where we are now, and headed in the next year or so.
I still believe consumables are the best way to go, yes TP and Gin. HAHAHA.
Blue said to kick in some additional Dog Food.
A question, how many out there are already seeing higher cost on food goods?
I personally have seen close to 10% on most goods, even more on vegetables and the sorts. Some meats are simply not available so cant say.
NRP & Blue
We were at Walmart yesterday. I was kinda shocked at the rise in prices on the few things I looked at. Hamburger is $350/lb, and scratch and dent stuff was at prices way beyond what I would have paid for it new (this is stuff like boxes of mixes that got smushed).
Interestingly, milk has remained steady in price, or even decreased a little. Canning jars and lids have not increased.
Milk and eggs are generally relatively local–within a couple hundred miles at most. So the prices on those are going to be locally effected.
Also remember that Waldemart will gouge wherever they are legally allowed.
Here is our Report In March 2020 we purchased 40 lbs of Chicken breast for $36
May 2020 We Purchased the Same exact 40lbs of Chicken breast $49 thats a 26.5% increase in one month… get ready folks were in for a bumpy ride…
Here’s another question…
If you have a 401K or IRA, how might you shift your assets (broad asset class suggestions?) to advantage a time of inflation — to protect what you have or perhaps grow it during inflationary times of dollar devaluation?
Remember rule of thumb – not all eggs in one basket – diversify because it may not work out the way you expect…
For those with a slightly higher risk tolerance, a self-directed IRA might be helpful. They’re not for everyone, so do your research.
Ken,
As, I’m really pessimistic, I’m preparing to invest in a Gold ETF and a S&P ETF that shorts the Market.
Up to this date, since about 2000 I have been 100% invested in residential single family and multifamily residential properties
One could be credit lending institutions such as credit card companies. As inflation increases, the cost of things increase therefore people will stupidly put more money on their credit cards. Therefore they will have higher balances to make monthly payments on.
Example: a $300 purchase one year may be $350 for the same items a year later. And since most people don’t pay off their balance in full each month, they will have a higher rolling balance. Therefore pay interest on a higher balance which will generate greater profit for the credit card companies. This is not even taking into account increased credit card inter est rate which will occur in an inflationary environment.
Just a thought is all..?
Inflation IS interest, paid to the Federal Reserve. Debt is the primary way that new counterfeit money is introduced to the system.
JMHO
The value of nothing will be safe.
We are headed into uncharted territory re government manipulation of everything.
Assets that may have been considered safe may well prove to be our undoing.
I have never put a lot of faith in predictions or discussions like the future plans like the 2030 or whatever, but you really need to wonder about this crap going on and where it is truly headed.
Governments, in trouble from their past policies, in trouble from this virus and pushed by the government needs to save us crowd will start taking peoples business, property, equipment,
There will be no other choice for them other than theft from industrious and prudent individuals and business.
IMHO
That will be the spark that lights the fuse.
Think about it,
You live in the country,
You have a huge garden and some acerage,
You have livestock, supplies put back, are largely unaffected by the insanity going on,
These government people coming around to take your swab for their universal testing see this and report back to you,
Next thing you know you have a court order stating that you need to appear before some “local authority” before you can even balk you are ordered to produce food for the “greater good” to give shelter to needy and to be inspected regularly,,,,,,
You going to just roll over and say yes massa????
So tell me again,
Exactly what is a safe asset?
Historically nothing is safe, but we do the best we can. I’d rather prepare and be wrong than stand with my mouth open hoping the .gov has something to put in it.
Where you live has a lot to do with your availability of choices or none at all. S**t happens, and it is how we get through the obstacles of govt overreach through this pandemic and conquer our problems. Some states are more overreach and taxing than others and why people leave.
I know it is devastating for many who cannot get their businesses back, as I had during 2008, I lost 2 of them I had running which left me in poverty, but I pulled myself up and through 10 years. I paid off my debts to the losses. I didn’t file bankruptcy like many other did, I lived like a wildwoman and got a job cleaning S**t out of outhouses that made me vomit, dumping stinky ripe fish guts, etc., to pay the inflationary CCard interest of 18% bearing down on me. You see I did a dumb thing, I borrowed for my businesses. Now I am debt free, and it is survival places like MSB and Dave Ramsey that helped me through the survival of bad times. Lesson learned.
Stardust
I remember your undesirable jobs just to pay the bills & food on the table. Also the crews that thought you had lost you mind when you offered to help them believe it was gardening or finding wild edibles.
The best one I recall is the tree that went down over the house. You got your chain saw out to start removing it. Believe it became your fire wood for the next season.
A C
Yeah, lol, Funny you remembered. I had a lot of stories to tell, that tree on the roof, and getting down with me sliding off the roof to my doom until the heat from my A** stuck my pants to the edge that kept me from falling off, then composing myself over to the ladder I almost missed. For us ladies, a hot A** is an “As-set” to our feminine ways. Firewood that almost took my A** ended up heating it with the wood stove. 😜
Yes, 2008-2009 was a wake up call I needed. I knew some basics about personal finance but never paid attention to it. As a result I had most of the debts that the average American has. CC debt (on several cards), car loan, mortgage, and student loans (around 100G). Then in 2008 after almost being downsized, I got gazelle intense for the next several years and knocked them all out. I have not carried a CC balance in several years now. If I buy something, I pay in cash or use the CC ( if more convenient) but have the cash on hand to pay the total CC balance.
Ohhhhhhh what a wonderful feeling having no debt. I literally did the debt free scream when that last debt payment was made.
2020 update: Several months into the covid 19 affair:
I am selling one of my 9mm Glock clones to a friend that is raising some beef cattle. The gun will be sold at a discount because he is a friend and I am trading for some beef later this Fall.
I will not be a hermit going into the future as I have been trading finished products, goods and services for other goods and services from other deplorable types that raise vegetables and livestock. Develop an expertise in an area of knowledge and keep those connections open with other like minded folk.
This website is an example of that. There are those that are master gardeners, farmers and those that raise livestock along with those that have a body of deep knowledge in other areas. My area of knowledge comes in handy prior to hunting season.
I admire the Jack-of-all-trades yet now I realize that I have expertise in a few areas that are now in high demand. I suspect most of us are that way.
I moved what I could control to a stable value fund, didn’t lose as much as others but had a steady gain the last few weeks.
Food. I remember collecting any food from the wild and growing a garden for my supper during the last recession years when I was as poor as a church mouse. That was all I ate. I never took food stamps or food bank supplies, and worked some undesirable jobs to make money. I was on dial-up for access to MSB for a long time–the only one in the county. LOL. Because I did this, I saved money to pay off my CC bills and mortgage, and buy a large supply of dehydrated/freeze dried/ canned foods. Perfect conditions to use it now.
Although Ken you are right in getting out of debt, I did it and money now rushes in like a water fall. I am retired now, my assets are used in trading stocks where instead of a bank paying me their “high” yield of 1.5% APR a year, I earn 2 to 4% of my account in as little as 15 minutes. This is where I see ways to fight inflation. Not for most, but works for me.
No more money worries and no more poverty I used to live in, but it took perseverance. I look back on those days as old folks did the great depression. I know what kept them going during those hard times as I believed in the saying that helped me: “There is nothing beyond the reach of determination”.
Back in the 90’s, I bought several CD’s that paid over 5% interest. I used the last of those to pay for college expenses. A couple years ago I had a few extra dollars and looked into CD’s again. What a joke. They paid just a little more than a savings account. So I took that money and bought some Series I savings bonds. One of their features takes into account inflation and adjusts the interest rate. It is still not a lot of money but better than a savings account.
My Daddy always said to buy land, it’s the only thing they ain’t making more of.
Every time you borrow money, some one owns a part of you. You no longer are free.
Slavery in the U.S. didn’t end with the Civil War. Instead of buying humans and caring for them like working stock (mules, oxen), they sold food and housing on credit with the promise they would ” work it off “. The old Tennessee Ernie Ford song ” Sixteen Tons” lamented “I owe my soul to the company store”. As a child, I had conversations with old black men who had spent their lives as “free men” working as laborers on cotton farms. They couldn’t leave for better jobs because they were so far behind on the rent they owed on the house the farmer owned, and the bill at the “store” most farmers (they larger, wealthier ones) maintained on the farm to sell them food and supplies on credit. In the south, sheriffs would track down, arrest, and either jail them, or release them back to the farmer until the bills were paid (they never were) if they ran off.
The insatiable need for instant gratification that most folks seem to have, turns them into slaves.
Dennis,
My Dad gave me two pieces of advice. 1) buy land, you can always grow carrots and live off them. And 2) if you are ever in the mine, and smell rice cooking, get out…you dug too deep!..
Every one of my mentors told me that good producing farm ground investments will never loose. (What you do with that land might fail, but the value of the straight land will always go up.)
If you have an adjustable rate ARM mortgage, now is the time to convert it to a fixed rate. Easily done. Otherwise just refinance into a fixed rate mortgage. That way you can pay the balance off with vastly cheapened dollars once inflation gains traction.
After 2008-2009, if someone has an adjustable rate mortgage or an interest only mortgage, they deserve to lose their butts. Those types of loans should have been banned after 2009.
Those that fail to learn from history are bound to repeat it.
Security, shelter, water, food, communication.
Prepper’s priority list.
Lots of resources go into making these sustainable either in periods of economic insecurity and/or high inflation. Or to be prepared for a sustained collapse.
Was just talking with my farm helper this morning “What if everything went south tomorrow? What would we wish the most that we had bought today?”
I think the most valuable asset takes hard work, time, a little disappointment, and sometimes starting over. That is a community of loved and trusted family, friends, and neighbors. As one of the 2017 comments mentioned, the older I get, the longer things take to accomplish, and the less I can do for and by myself. Taking time to care for others, spending some of my money on their needs, helping with projects, just being a good neighbor even if not a friend, all will go a long way to improving the security of my place. That security will preserve the value of the assets I do invest in for the long term, especially knowing those assets will be used to support more than just me and whoever else might be living under my roof.
Next on my procurement list is even more propane and woodcutting hand tools, and a set of big water squirters for the neighborhood kids. Knowing that if the day comes, cooking will be communal, as will firewood gathering. Playing together will continue as before.
Don’t forget also that as we get older the fish we caught get bigger in the stories. Hehe
Food is still number one, I think. Next on our lists is procuring enough socks and good footwear/work boots to last the next few years. And I wouldn’t mind some new waterproof outerwear to stock up on either. Some of our winter clothing is showing it’s age. I also like the suggestion of more hand tools and wood-cutting tools. And more fencing. I want to cross-fence the pastures. My brain keeps screaming to get this all done by September…..by September….by September. I’m not sure why. Think the global economy will even last that long? Gonna be a crazy summer that’s for sure.
My mother passed away end of 2017. At that time I felt strongly that I had two years to do what had to be done. That would have put us at end of 2019, beginning of 2020. A lot of other people have gotten the same “instruction.” Beginning of 2020, summer of 2020, fall of 2020.
One way or another, 2020 is a turning point. It’s going to be a different situation for various people depending on their situations. People in an urban area (as I am) will likely have the problems start earlier and harder.
Lauren, you just might be made aware of more events happening earlier than those of us more rural. Where we are, people turned off the news so were not even staying home. They said the news of the virus upset them…so they ignored it all and just went about their business as usual. Most refuse to even wear masks or gloves at all. No social distancing either. I can’t imagine if anything else were to happen how people would react here. Or not react at all. It is insane sometimes how normalcy bias (?) plays out.
But I do think worse things are coming. I just feel it. Crazy, I know. I wonder if we will see a real global economic collapse this fall. Then more disease.? Sure kept most people home. No riots, etc. Global control of the people.
DJ5280
I don’t think it’s crazy at all. I’ve been feeling the tension of it all day. Yesterday, lots of people coming to the greenhouse felt to me like they had an undercurrent of almost panic. Every single one wore a mask. The social niceties were all still there, but with an unnatural brightness to them. Most of these folks are of the progressive bent. They’re the ones buying up large quantities of tomato plants. The more salt of the earth native born folks will be in a couple weeks from now, probably not worried at all, and definitely not wearing masks.
Along with having more hand tools, stocking up on wood of various lengths and sizes as well as flat iron, sheets and steel plates for various DIY projects. Because having hand tools to make or fix things does no good if we dont have materials to work with.
When we retired almost 3 years ago & moved home to Texas, we really downsized both home & possessions to simplify our lives & concentrate on enhancing family relationships to leave a legacy of kindness & knowledge for our loved ones. So we are not acquiring stuff so much @ this time as we are maintaining a lifestyle of preparedness & a mindset of precaution.
We are stockpiling food, learning new skills like ham radio & working on genealogy. We live in the “burbs” close to our grandkids so I am also storing up clothes, shoes, books for their needs. We have stored extra sheets, blankets & towels as well as clothespins, a washtub, etc. We have a burn barrel for trash in case that is needed. Faraday cage is full. Although we don’t yet need a walker & geriatric supplies, we will put those up also.
We have a friend who used to work for a car rental agency which has just declared bankruptcy & he told us the market will be flooded w/ vehicles soon & they should be cheap. Commercial refrigerators/freezers, tables & chairs from restaurants, etc will be coming on the market too. I really believe things will go get terrible w/ foreclosures, empty houses & vacant buildings, & boarded up businesses. In fact, we are having security film applied to our windows this week & are checking on solar power next.
Buckle up. Keep up the great work, Ken. This is the best place to gain knowledge & be edified in the process, friends.
In reply to the last part of TX. Yes, this site is awesome Ken. I check into this site whenever Chairman Mao isn’t blocking access.
Regards
Before this mess with cv-19 started I didn’t worry much about my stored food because the warehouses will be commandeered by govt. long before going house to house.
Now?? I’m worried!!
Not giving advice just explaining my current purchases. Excalibur dehydrator, 9 tray with a timer. Just bought a second one, my first one is almost 20 years old and working awesome.
Also canning lids/jars. I use mostly tattler lid’s but still do abut 20% of my canning with metal lids. I like the 2 quart jars for dry storage.
Food saver wide mouth vacuum sealer and a hand brake bleeder for sealing dehydrated food and dry goods.
All chainsaw supplies, extra tuneup stuff, bar oil, chains, spare bar, oil mix. Spare ethanol free fuel with stabilizer. Also starting fluid, and carb cleaner is really handy
Layer feed to make it at least thru summer for chickens, now is a great time of year to cut fresh greens for the layers and cut back on your feed bill.
If you have fruit trees/bushes. Mason bee tubes, lots of them. Just bought 400 more tubes. I just use empty #10 cans or the long pork and bean cans for tube holders. My local native bee population is exploding, almost all blooms on everything is pollinated this year. Going to have to thin apples and pears like mad to save limbs
Food Dehydrators!
+1
Awesome recommendation.
We have our 4 Nesco dehydrators are currently running non stop.
Just vac sealed 1/2 gallon of dehydrated ginger. Ginger is an amazing root that will be extremely hard to find if food shortages start to manifest.
Pro Tip:
Green tea, hot water, a little honey, a couple of ginger slices…Awesome on a cold day!
Fire For Effect!
I’m growing ginger as a houseplant. Figured I’d give it a try and see how it goes.
Black tea with ginger is pretty good also.
Thats why im glad i have about 60’ of a 200’ row of ginger, other 140’ is turmeric,,,,,,
Kula:
Is it feasible to ship ginger and turmeric to the mainland? We use so much of both, generally grown several thousand miles west of you. I would love to have some grown in Hawaiian soil, by someone I sort of know. I wonder how many others think like me.
Hola Ken! If/when you finally offer a paid membership model, will you consider an MSB marketplace to help facilitate old-fashioned commerce riding on new technology?
Maybe I can start the next up and coming “Amazon” equivalent marketplace ;)
Ya-right…
Ken…”start the next marketplace”…well , maybe not so far fetched…?
what if you were to set up yourself another site, with all the goodies discussed on here, and have links to it on here?
So I have been researching this for over month – how and when in collapse like Wiemar republic as an example… Reading a lot of ZH too.
We are currently leading into a bizzarro economic time… You will see hyper inflation on certain items i.e. Food. Then you will see deflation in other items like gasoline… This is a supply / demand pricing structure for needed assets and goods. This devaluation will collapse and cause even more trouble i.e. energy sector.
The General publik aka ‘sheeple of Merica’ have no idea about the hammer that is about to drop on them.
Basically this is a period of Deflation occurring as we speak… This precedes hyper inflation….
During this current deflationary period of time, there will be economic blood in the streets…
If you still have a fair amount of fiat currency on hand you will be able to find really awesome deals on certain tangible items during the next few months… If needed in my opinion, Make those purchases. Ken has mentioned several tangible hard assets in this article.
Forget about precious metals at this point. 1oz us mint silver dollar has a $8-10 buying premium on it above the spot price at $15/ troy ounce.
Buying Opportunity Example: Possibly unbroken, non-improved, vacant land as land owners start to freak-out and need to liquidate the land for fake fiat currency to cover the cost of loans on other properties they own…
There will hopefully be a few buying opportunities out there.
Always think MACRO not MICRO
@WC
“Bizarro”
Lol
I have a buddy that loves (over used!) that word. Every time I hear it, always makes me laugh.
Might be able to get a good deal on a set of collectible NASCAR dinner plates. It’s a multi-use item. You can eat off it. It looks great. And you can fling them at would be intruders if need be.
Anything that is a true multi use item.
IMO, nothing beats grain alcohol. 1. Drink it
2. Tincture medium
3. Antiseptic
4. Cleaner/disinfectant
5. Cooking fuel in a Trangea style alcohol stove
6. Mixed with other items, it can be used as an explosive…for removing tree stumps.
7. Placed in certain containers with an external wick, it can be used as a projectile….as an aid in igniting your slash piles when cutting firewood or cleaning underbrush.
Grain alcohol will always have value.
FFE,
You forgot the most important point……..you can make it yourself!
@Mjim
Lol
Good point!
I saw a youtube of a company that made a very nice copper still. It was small, like a tabletop version. Very cool little still, professionally made too.
Have you ever seen those?
FFE,
Um…yeah…you can buy one. (But why would you?)
Definitely food, first. Then good clothing and outerwear, including shoes and workboots. In addition to our own currency devaluation, if there is a shooting war, anything imported that’s not already affected by the slowdown in China will get very expensive and hard to find. And the price of American-made substitutes, if there are any, will also increase in price. Not sure what all of that includes, but I’m imagining my life for the next year and acquiring everything I need to live it, as budget allows.
I would definitely stock up on animal feed of all sorts. My next batch of broilers is due to arrive in July, and I will be getting their feed in place in the next couple of weeks. I saw someone advertising this season’s hay already – all cuttings, $75 a round bale. Yikes. Not as high as it gets mid-winter, but that’s a high starting price. If you need hay, you might think about locking in a supplier/price now, and hope we get good hay weather this year. I’m also planning to grow black oil sunflower seeds, buckwheat, flaxseed and blue corn, as a feed alternative for chickens, and mangels as a feed supplement for cattle. Figure that’ll stretch out the purchased feed.
Once the life sustaining and life saving preps are in order PMs will help
to get you thru the difficulty’s that are coming.
Due to price and availability I think pre-64 silver coins are the way to go.
A bag of quarters(400coins/$100.00 face value) is around $1550.00.
The premiums are going up every day.If you snooze,you loose.
IMHO.
Another thing I’m considering for my two youngest is converting a portion of their savings into silver. By the time they come of age, I’m sure the FRN that comprise their savings won’t be worth much, if anything. I’m looking at junk silver, as it seems to have less of a premium than the currently minted silver eagles. I checked your advertiser link, Ken, and silver is still available there as of today.
I’m not converting any of my FRN to PM’s, until I have my list of essentials acquired. My list includes items needed to be as close to self-sufficient as possible – tools, manual well pump, self-defense items, seed stocks, fencing supplies, wood cutting tools, etc…
Farmgirl (or anyone),
If you ever consider purchasing physical silver, I suggest getting it from GoldenEagleCoin (a long time sponsor here). If you do, tell them you came from Modern Survival Blog. Thanks.
They also sell “junk silver” coins (90% Silver US Coins)
Ken
Yup. That’s the site I was looking at in the wee hours. Very nice, easy to navigate, and reasonable prices. Planned on using your sponser link to get there again. Any opinion about the the long term value of junk vs. non-junk silver? I was thinking of the pre-1964 coins because they don’t have such a high premium attached to them, like the eagles or other minted coins do. Is there any reason it’s worth paying the high premium, i.e. more trusted for exchange or something?
Junk silver would be recognized by everyone and the dimes, quarters and halves could be easily traded and change given back. The .999 eagles are beautiful. However in the old days a coin like that was sometimes cut in two as to buy and give change. We have a jewelry scale it will weigh coin correctly as well as rings and such. Now all we have to do is hope crypto currency doesn’t take hold for some years yet.
Mrs. U
I never thought about the making change part! That would require other party to also have junk silver, and that both parties can verify authenticity of the coins. I hope there will always be people who prefer real coin over digital vapor money.
Mrs. U:
Thought you might like a little info on the silver content of junk silver.
Silver dime contains 2.25 grams pure silver
Silver quarter contains 5.625 grams pure silver
Silver half dollar contains 11.25 grams pure silver
Knowing how much silver you have is a big help when bartering or trading. Hope this helps.
BigBadCat
The grams on the silver you have listed are those pre-1964?
Know that after a certain date 64/65 silver went from 90% down to around 40%. How does one now for sure on the 1964’s which amount of silver content is in the coin?
Antique Collector:
1964 and earlier are 90% silver, and that is what I was referring to. There were war nickels with a silver content, but I don’t pay much attention to them, as the content is lower. Don’t mess much with the 40% either. Love those Silver Eagles and Maple Leafs though.
There was a pawn shop I bought some junk silver at a few years ago. Their premium was $1.00 over spot. A couple times they had 1/10th ounce silver rounds. Bought a couple. They are about the size of a dime. I don’t waste my time with silver eagles. The premium is insane.
We were able to get our 401k money out after we reached the minimum age, and not have to pay the penalty. Bought some silver bullion 1oz .
Invested in the rural piece of land. And are building a new home- stead there. With cash, the only debit we have are on the mortgages on two houses. That pay off next May. At that time we are going to sell them off?
Food is always going up, cheaper today than tomorrow. And we already have food stock piles. Plenty of water, artisan well. Plenty of land, high dry and fertile. So we have the start of a fruit orchard, garden.
Expanding our seed bank, from some that don’t work to those that don’t.
Also remembering the rule 1 is none and two is one. So tools, clothing,and anything such as major assets.
For example, one of our freezers just recently went down. A replacement was not available. But through a contact in that field who I had purchased major appliances through. Had a unit on the floor that he would sell.
I have a hoard of gardening hand tools, remember they don’t last forever, and good bartering items.
And on bartering items, the garden, orchard, chickens both egg layers and meat. Goats, pigs, cattle. We raise all and already have an income from them.
Both the wife and I have expanded our skill set. Which we also get an income from.
So in summary , water, food, shelter, tools, talent and skills. With the ability to become self sufficient.
Great ideas everyone. I’m onboard.
Speaking of folks still asleep to the situation, my son still doesn’t realize that the country is broke. They think I’m a tin hat wearer.
He is also a real estate agent and claimed that the market will drop soon, due to the virus. I believe the virus is a cover up of the economic situation that we have been in since 2009.
I own my house and thinking of selling before the market drops then buy a cheaper one when it does. My house isn’t expensive at all.I live in Iowa. I’m actually concerned about them taking us to a cashless society though. Ron Paul is a hero of mine as well as other like minded folks. Any thoughts?!
Deborah…if you are seriously thinking of selling..Find yourself a new place to live first..
One often hears of cheaper houses to be had. Sad reality is that quite often what ends up happening, is the only cheaper house out there, is yours when you go to sell..For a myriad of reasons, one ends up paying more than one expects for new house/new living quarters.
another factor…your house now…are you keen on it? on you needing wanting different features (bigger yard for garden/chickens /food storage etc)
there is a lot involved in selling (and then buying ) a house. Add up the costs…and trouble …and check if there is anywhere different you want to/willing to live? (I know there are lots of cheaper houses where i’m at, but many not in area I would recommend)
Thank you Jane
I was going to sell and hold my money for awhile. I would just hate to lose my money while waiting, due to the Gov wanting our cash.
Deborah
Also, I live in the city and thinking of moving to a smaller community. My house is on a half an acre lot. Great for gardening and thieves. I would like to grow enough for others (hungry hoards) but shoot, I’m getting old and live alone.
I have a number of US Savings Bonds that are over 15 years old. Should I cash them in and use the money for other things?
g.g.
I am ‘not’ a financial advisor.
It depends on how secure you are with other monies available to you. Since it such a personal matter only you would know whether to turn them in for spending money.
The problem with gold/silver bullion is authenticity.If you plan on using it
for person to person barter/purchases at some point you’ll need to prove
that it is genuine and for that a test kit is necessary.
Junk silver is recognizable to everyone and likely accepted by everyone.
FYI. The government considers gold bullion to be any configuration that
are coins or bars and can be confiscated in a national emergency.
Except gold coins minted prior to 1933. Why that date lord only knows.
There is so much privately held gold that it seems that it would be nearly
impossible to locate it all. Maybe they will develop a devineing rod.
NormlChuck
This would be more as a store of value for several years down the road. I’m not planning to barter with PM, as it would be an increased security risk for me and I’m trying to minimize those. I just don’t want to see all of their savings disappear in the dollar crash that’s coming.
Normlchuck
Divining Rods are only good for need,,, NOT gov greed. Thought should pass that one to you, and any dowser who follows the ethics code will know that.
Yes, there are those who are blinded by greed.
Antique Collector
I’ve only ever used divining rods to find water, or underground utility lines. Didn’t know they could be used for other things. So do people with buried caches of ‘things’ need to be concerned? I have always assumed anyone can use that method, so that would mean unethical people, too.
The devineing rod was JOKE!!!!! Good grief.
Farm Girl: There are many things that we are not “planning” on doing in the future.The day may come that barter/trade will be done under an armed overwatch.
If lack of security is a problem for you it would be wise to join or start a
MAG ASAP.
NormlChuck
Not ‘planning to do’ doesn’t mean I wouldn’t, if necessary. Just means I would focus on other barter items first. Same reason I would not go to ammo as a barter item first, unless with someone in my inner trust circle. Certain items attract more attention than others. I will always seek to minimize risks, if I can. That just seems prudent. I don’t know anyone who is 100% certain of their security; I continue to work on mine, and it’s not where I’d like it to be. Don’t know what a MAG is – mutual assistance group is my guess.
Normlchuck
OK–no harm or foul
You must remember that not everyone will get your dry sense of humor.
I did, but wanted to make sure that a few years down the road some one less knowledgeable does run around saying that they have developed this new device.
Now for more informative sharing
I used to have a little gold but lost it all in a boating accident. So, nothing to confiscate.
Sounds just like ‘NRP’ who evidently lost all his guns in a boating accident on Navajo Lake.
Yeah. Mine are at the bottom of Lake Michigan. I think it was a rogue wave that knocked over my canoe.
Land is good if you can pay the taxes every year. Consider paying the taxes ahead a few years. There will always be opportunist to swoop in during and after a war/calamity to take advantage of those that cannot pay the taxes. The Civil War is a lesson in that respect and greed knows no barrier.
Mrs. U, government will need to get money from some where. If you have a job or property you are in their sights, with stopping production this will be the first place they will raise taxes on. Even with depreciation my land appraisal keeps going higher due to demand for rural property. The aftermath of The War of Northern Aggression is the exact lesson people should study. My German FIL giving me advice at 22yrs old, had me scoop up a handful of sand. In my other hand he placed a rock and told me to wiggle my fingers. The sand slipped through my fingers and the rock stayed. He told me the sand was money, the rock was land. Money will always slip through your fingers, land won’t. His thinking was you only sell land to buy more land, advice that has work quite well for me.
Those who said food might be on to something.
Just caught a news bit on the radio (ABC affiliate) that said retail grocery prices spiked highest in 50 years in April. They recommend that folks buy in bulk as much as they can.
Think the shelves will be even emptier as we go into the summer?
Propane mentioned by others and needs emphasis. Friend has a family member who drives pressure tank trucks (propane and ammonium nitrate). Says the big depot he picks up from is operating at only 50%. With fracking fields down through combination of virus impact and collapsed fuel prices, some processors are also shutting down. Reopening natural gas wells and processing plants is difficult and can take months.
Around here there are miles of empty pressure tank train cars sitting on the sidelines. Think I’ll add some more to my reserve. Just In Case.