This might sound too simple to a lot of you, and excuse me if I’m a little organized… haven’t slept all night due to researching candidates in our upcoming local elections.
I heard of Austrian Economics through Ron Paul, and still understand very little to be honest. And like everyone else, I’m trying to figure what I as an 18 year old attending community college with a part time job… can do to best secure prosperity.
Many people within the school of thought seem to believe hyperinflation is either very likely, or inevitable even. So…
what should I do with the little money I have? And according to this school of thought, what is your reasoning? Hopefully I’m not challenging everyone too much!
Well this bank bailout business, aka open fraud, should scare the crap out of anyone who thinks hyperinflation is coming. The politically connected only engage in open fraud when the jig is up, however they are opposing the federal reserve audit so there must still be some time left, interpret that how you will. To prepare for hyperinflation you need to make yourself valuable to other people, start a agorist (under the table cash) business now if you can. Use that income stream to start buying silver and gold. Here is my priority list.
Weapons: .223 rem rifle I recommend keltec su16c (it folds up small and is affordable). Short barreled shotgun mossberg or remington.
Dry goods and water, get them now while we still have division of labor.
Trade goods, spices, cigarettes, seeds, etc. This is up to you whatever you feel is marketable.
I have told my family to buy property, which we have. I have argued against saving dollars, and have even suggested that we store any savings in Europe (which is still inflating the money supply, but I don’t think at the same degree the U.S. is). Unfortunately, my family does not trust me enough to save in gold. But, we have invested in property.
This is the last step. You can’t eat gold and silver. Stock food, a gun and ammo, and some kind of generator and its fuel first. Once you have a 6 month supply, then turn your dollars to precious metal. Silver is the money of peasants, gold that of Kings and Governments. Gold will do better if you just need to invest and already have the pre requisites. Gold and Silver will have to emerge as money in any hyperinflation. This could take a year or two. You have to survive that first. Gold and silver will serve to store some value for future purposes, like in 5 years after a hyperinflation. Division of labor will break and the immediate concerns will be food and fuel, if you have some you will probably have to defend it from those who don’t early on.
Be careful though, allocate appropriately. The central banks still have enough power to delay this for another decade or two.
Well, I haven’t been sure if I totally subscribed to the Austrian School but these answers are completely rational and I trust you all know what you’re talking about. How could central banks delay this? I won’t ask you to explain further if I don’t understand the response lol
And what do you mean by allocate appropriately? As in the rifle? lol
Work hard, save money, don’t take on debt, buy necessary goods in bulk (including socks and underwear), learn first aid, learn how to use a needle and thread.
Most importantly, stop being a consumer, and start being a producer/investor.
Don’t waste your money on gold or silver unless you’ve got a sh’load of money that you don’t know what to do with.
If the SHTF for real, like serious economic collapse, your first response has to be “How am I going to survive?” Gold and silver are powerless to help you in this regard.
Others suggest getting a gun (or several) which is probably not a bad idea. You need ammunition, too. Get some ammo of various caliber, you can trade that if need be. Stock up on non-perishable foodstuffs: canned goods, dehydrated stuffs, noodles, rice, beans, chocolates, etc. Diversify: I am long Whiskey, Levi’s and cigarettes: all of which will serve you better than gold in the short- to medium-run, if the SHTF for real.
Flashlights, batteries, ropes, hand tools (hammers, axes, saws & blades, fasteners/nails, etc.) duct tape, pliers, wrenches, etc. Leave the compound mitre saw behind. Get some matches and lighters. Keep 5-10 gallons of emergency fuel in your garage (but be sure to rotate it occasionally) just in case you need to get somewhere in a hurry. Buy a tent. A tarp. A good pair of boots.
Finally: have a plan. Know where you will go and how to get there in case of emergency. What if you have to stay put for a long period of time? Keep a kit with some of the above items in your car, just in case. And have a backup plan. Communicate this plan to the people you care about.
Ah, the rifle does make sense. Unless I’m going to have National Guard or others representing those left in control at my front door, wondering if I have weapons.
Speaking of that… how many here believe that this is a diliberate move towards enslavement? Talking about your classic New World Order type stuff.
And thank you very much everyone. A lot’s been cleared up for me.
This is interesting, and I’ve heard this before. But, as a debtor, this doesn’t make much sense to me (well, I am not a debtor personally, but my family members are). My dad owes ~$60,000 for his two houses in mortgages and loans (plus, whatever he hasn’t paid off in one of his houses), but the interest rate is fixed. If there is hyperinflation, what stops him from paying it off with a $1,000,000 bill (just an example; not saying that hyperinflation will necessarily get to that level)?
You don’t want to gamble with your equity like that. Not to mention, buying things with debt, hoping for hyperinflation to make the payments, is exactly the sort of mentality people need to break.
I agree that if you are banking on whether or not there will be hyperinflation you should not rack up massive debt. On the other hand, if there is hyperinflation then any debt you hold will become considerably easier to pay off. Besides, some investments will require loans (I consider all of our houses investment opportunities, since we can pay them “relatively” quickly by renting them out, and then start churning out a profit). But, I agree that people should not spend beyond their current abilities to pay just because there might be hyperinflation down the road.
I still think commodities, such as corn, rice, wheat, soybean, and silver and gold, will be a better investment during hyperinflation. What is going to happen when people default on their mortgage because they can’t pay it off, or when people can’t afford to make their rent payment, because they’ve lost their job or because their income doesn’t rise at the same rate as inflation?
It’s strictly speculating. Some people will speculate and win, many will speculate and lose. It takes big coconuts to speculate in the middle of a crisis, I don’t do stuff like that.
The people who will speculate and win, have exceptional knowledge and skill at speculating. The average schmuck, is a clueless bozo who wants to ride on the casino economy rollercoaster. Not different from your average stock market investor. Ants scurrying under the toes of Titans.
I agree with David Z. Look at smokes, booze, medical supplies, tools etc, as potential barter items. You can’t eat gold or silver. But you can use seeds yourself if you don’t trade them. Get dual purpose goods, and let the coincidence of wants sort themselves out later.
That is my point. My mortgage will be relatively little during hyperinflation, since the interest rate is fixed. In other words, if my mortgage is $30,000 and hyperinflation is so much as to devaluate the dollar to the point where they’re printing $30,000 bills (just an example; it could be any figure), then my debt will become easier to pay off. It will screw over the bank which loaned me the money, without a doubt (they will lose a lot of wealth).
The case is that it’s speculation. You might build a large debt, and then there is no hyperinflation, so now you have to go bankrupt. So, I agree that impending hyperinflation is not a signal to “run wild”.
Well, this is always a possibility, but I’m guessing that the cost of renting a room would go down, as total income decreases (the demand curve shifts). But, at this point, it becomes irrelevant, given that I can pay my mortgage which brand new fiat bills. At this point, I’d use my property grow food for my own consumption.