Should smart preppers (and others) be holding onto cash, or should we be turning that cash-- and even more so, the electronic "money" in bank accounts-- into hard goods? Goods we will need if money loses what little remaining value it has.
If I knew when/if hyperinflation will hit, the answer would be easy: Get stuff now.
I've done a little of that anyway. I'm hoping that doesn't turn out to be a mistake (at least I don't have credit cards to max out). If TSHTF I won't be needing that money to pay for those things, which I also won't be needing, anyway.
But I don't know when/if there will be hyperinflation, and I don't believe anyone who says they do know.
I'm still holding onto my crypto-- but an EMP would erase all that as effectively as the Feral Reserve has erased the value of dollars. And much faster. If I thought an EMP was likely, I'd be spending it.
I'm also hanging onto my metals (and I know I should be getting more).
Speaking of metals, I've acquired more "liberty seeds" recently-- but not as many more as I'd like. I suppose I could convert those back into FRNs if I need to-- and soon, probably more than I paid.
What do you think? Are you preparing for hyperinflation, or do you think that's just a paranoid fantasy? Are you keeping "extra" cash and electronic bank funds or are you using them to get things you can actually use, no matter what happens?
EMPs can't "erase" crypto.
ReplyDeleteIf the computers are all gone, I'm not sure it would do any good to know you have some crypto somewhere.
DeleteEven in the extraordinarily unlikely event that "the computers were all gone," it would be even more unlikely for them to remain gone permanently -- And when they came back, the information would still be there and crypto would be a lot easier to get going again than the traditional fiat systems run by governments that almost certainly went out of existence at the same time the computers did. In that sense, already having some crypto might be a very good thing financially.
ReplyDeleteWhich is not to say there's not a good case for turning your crypto into usable goods, trade-able metals, etc. at any given time based on your estimates of which way its value is going to go and what you might need more than you need future wealth.
For example, I just used some of mine to buy a tiller and more heirloom seeds so that I can dramatically expand my garden (Biden says the US won't be having food shortages, but I expect price increases to accelerate at the very least). I was planning to do that next growing season, but it seemed like a good idea to accelerate, even if the crypto I bought the tiller with may be worth twice as much six months from now. I expect to end up saving money on food this summer, fall, and winter and after that, and to improve my skills so that when and if the garden (and hunting prospects) are all I've got, they're enough.
I also occasionally spend some crypto on metal. I don't expect hyperinflation or societal collapse tomorrow or next week, but I like having some silver put away just in case Bad Things happen.
I'm trying to garden more seriously this year, but the lack of water in this area is always a big problem for growing green things... beyond the wild edibles. And I suck as a gardener.
DeleteI've always sucked as a gardener too, but I'm getting serious about it this year, no slacking off and studying before I plant. I enjoyed HELPING in the garden as a kid on the farm. So far I've got two varieties of lettuce, two kinds of peppers, green onions, tomatoes, radish, and squash already sprouted and going pretty strong, and I just put in peas, green beans, cucumbers, spinach and corn. Canteloupe and pumpkin going into the ground in the next couple of days. This fall, I plan to do potatoes as well.
DeleteFortunately, too LITTLE water isn't a problem around here, and we get two, maybe even three growing seasons depending on what you're planting. I'm hoping to get reasonably right with this batch, and then hit it hard in the summer for a nice late fall harvest -- while I'm waiting on that, I'll be getting a pressure cooker and learning to can.
Now if I just had a hunting license and a smoker ... coming soon!
Our last freeze date is usually around the middle of April, and I usually jump the gun a little... to the detriment of what I plant. I'll try to be patient this year.
DeleteAbout metals... anyone have any ideas about how to induce retailers to accept silver?
ReplyDeleteSeveral years ago I used silver at a few retailers. Local businesses, not national chains. I would just ask if they'd accept silver, and drop an ounce into their hands (letting them feel the solid weight drop into their hand from a few inches seems to help). Then I'd tell them what a similar coin of silver would cost right now, saying that the spot price is lower because you can't actually get physical silver for that price, and let them decide. I also told them I'd always be willing to trade for it back anytime. Some did want it. Now I'd rather keep the silver so I haven't tried to see who would take it recently..
DeleteFor the most part, they'll probably only start accepting silver on any scale once fiat becomes so worthless that they can't depend on it to buy the things THEY need.
ReplyDeleteEven most retailers who accept crypto at this time are doing it through third-party services like BitPay which take your crypto and pay the retailers in fiat.