Welcome Preppers and Survivalists,
George Benjamin Luks
A few weeks ago, I wrote a 'Weekly Dose of Doom and Gloom, with a Part Two about some of the actions your family would need to take if you're preparing for a nuclear war.
This week, I would like to make some suggestions for preparing for an economic event.
I have to take some liberties.
First, like nuclear war, there are a wide range of possible economic events such as your spouse losing a job to the whole dang world being gripped in a financial panic! for your family to possibly prepare for.
We could have a depression leading to a financial collapse (on a family scale) or hyperinflation leading to a financial collapse (on a global scale).
You might want to update your family's threat analysis
With that said, ...
Preparing for an Economic Event
The usual preps are, as always, the priority.
Most folks would think that you and your family need a remote self-sufficient homestead stocked with multiple years of supplies such as ammunition, night vision devices, advance medical supplies, and ...
You and your family are going to need a free and clear piece of property. This could be a mortgage-free home, that you currently live in; a paid-off vacation home, inherited from your grandparents; an inexpensive house, in a small (almost dying) rural town; an older duplex, located in the 'big' city, that's paid for; a piece of junk land, with a travel trailer, both bought cheaply and paid for; or ...
Either way, the objective is to have a secure place to rest your weary head that's paid for.
No matter where you plan to live, you have to ask yourself about possible employment 'cause you and your family are going to need to buy stuff during the event.
Let me explain.
After the 1930s "Great Depression" and World War II, some of the rural areas of these United States did not recover from the effects of the depression until the 1950s. Yep, the 1950s
I have to stop there, for now, because I lost my train of thought
I have had the opportunity to live through some financial difficulties where money became worth-less.
When these situations return, you and your family will want to have a couple of base camp water filters, such as the Katadyn Drip Ceradyn (40.000 gallons) or the Berkey Water Filter System (6.000 gallons) to filter your water.
There is the possibility; municipal (city or county) water will degrade through worker sabotage or work stopages, lack of money for water treatment chemicals (chlorine, fluoride, potassium permanganate, or ..), or lack of needed maintenance on the water plant and water distribution system.
Of course, ...
If you're like me, you can make your money go further by purchasing the filter elements and building a home-made filter, either filter element Ceradyn or Berkey will work.
Alph Rubicon: Daire - Home Made Berkey [or Katadyn] Water Filter
Depending on the precursor to the economic event, hyperinflation or depression, will determine how much food your family will need to store.
During a hyperinflation or plain ol' high inflation period, food prices increase, so more of your money goes to buying food. During a depression, prices drop, so less of your money will go to food purchases.
Sooner or later food shortages will occur.
Store as much food as possible.
Needless to say, long-term food storage, such as white rice, dried beans, hard red winter wheat, oats (quick or traditional) are the inexpensive foods to purchase for any longer-term event. Of course, you and your family will need to pack them for long-term storage.
Even though the economic event is going to happen, it's still a matter of "When" it will happen.
As you're buying your family's food storage, you and your partner will need to learn how to cook this food (and introduce it to your family). A low cost method is ... Wait for it!
Your local library in the cookbook section.
Needless to say, ...
"If you take a daily medicine, you need to get yourself some extra medicine.
Destruction of production facilities, transportation hubs, and ...
You will also want to stock up on a year or two worth of multivitamin for you an your family; trust me, two years.
Needless to say, you will need to read
Chapter13: Surviving Without Doctors"
Except for the destruction of production facilities, transportation hubs, and ..., this advice applies to an economic event.
You might want to make sure to store two years worth of multivitamins.
Take care of any outstanding medical conditions that you have money to correct, like your bum knee, cavities, new glasses or bifocals, and ...
Next, some folks would suggest storing advanced medical supplies, such as prescription antibiotics and pain killers.
I would caution against this; unless, you or your partner know a health care professional that will assist you in using these medications in tough times.
Remember, doctors and nurses have killed, unintentionally of course, millions of people, and they're trained professional. (O.K. maybe not millions, but definitely thousands of people through mistaken diagnoses)
Lastly, your family is going to need a quality first-aid kit because you're going to be doing more to save money such as splitting wood, tending a garden, changing your vehicles motor oil, and other physical activities.
Most folks will think their family is going to need a gun, and they are right. You and your family are going to need to purchase (and learn how to effectively use) a revolver or pistol. You will need a minimal amount of ammunition, probably about 100 to 200 rounds of quality defensive ammo for your handgun.
Next, you will need a quality concealed carry holster for your handgun, so you can carry it when you and your family are out and about.
If you purchase a pistol, you will need a couple (more like five to ten) spare magazines.
Oh, don't forget the safety training.
During an economic event, more than likely, you and your partner will lose your jobs, have your hours reduced, or some other negative financial event will happen.
I suggest, you and your family look at building some kind of alternative employment such as your children baby sitting (if they're responsible enough and old enough), producing a cash crop (like raising hens for eggs), starting a side business (handyman, yard service, cake baking, quilt making, and ...)
O.K. I'm going to stop because you get the idea.
Next, you're going to need some emergency cash, under the mattress, just in case a banking holiday is implemented, your bank pulls a bail-in, or the bank goes out of business.
How much is going to be up to you and your family. Just remember, you're going to need a safe place for that cash.
Now, some people will tell you to take your money out of the stock market and buy gold and silver.
Really, do you know the historical average price of gold, here's a graph same for silver
(Dang it!!! You'll have to go here for gold, and here for silver. Scroll to the bottom of the page and 'check' Multi-Year Gold: 1975-2014 and Multi-Year Silver: 1985-2014 to see the graphs) : - (
This is the reason why I liked Mr. Pento's book, The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market He didn't give the stock answer 'Your Family Should Own Gold and Silver.' Mr. Pento (I believe) correctly pointed out that it's a little bit more complicated than that
* Metals, Agriculture, and Energy
- mid-tier mining in stable countries
- exploration and production oil companies
- and (you'll need to read his book ; - )
* Short (metals, energy)
* Long (dollar funds, utilities, muni-bonds)
* and (you'll need to read his book ; - )
In other words 'No Auto-Pilot' on your investments
Almost lastly, I would like to add that you and your family have a method of communications such a radio or library card at a library with internet access.
That old standby, a mailbox.
You're going to want to communicate with friends, family, and potential employers.
Toys and games for your children, cards for the adults, books galore, and other stay at home stuff because it could get dangerous out there during an economic event.
I didn't want to write any more but, I came up with one more item.
Power and Power Production
We are tied to the electrical grid and the natural gas lines that come into our homes.
While you have the cash. Look at ...
* increasing your home's insulation
* installing a wood-burning stove
* sealing drafts around windows, doors, and other protrusions
and the old stand-bys of ...
* updating your home's windows to a higher R-value
* installing insulating curtains (cheaper)
* turning down the thermostat in the winter and wearing warm clothing
* turning up the thermostat in the summer and wearing cooler clothes
I'm stopping, for now. See you on Wednesday.
Len Penzo - Brazilian Hyperinflation: A Reader Explains What Life Was Like
Len Penzo - Brazilian Hyperinflation: A Reader Explains What Life Was Like, Part Two