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What are some practical ways that we can begin to prepare for the coming hyper-inflationary times?
Never in the history of our country have we been so in debt and have so much money in the system. I am not debating that inflation will come, because in my mind, that is the only consequence that is feasible, so how do we prepare for it and how will the hyperinflation manifest itself in the everyday person's life?
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inflation
voted interesting: marcand, buddawiggi
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There are generally four ways that you can prepare for hyper-inflation.
1. Buy items that do not lose value, or if do, not for long. Things like paintings, real estate (even now, when the market is dropping), collectibles, and antiques. These items tend to gain value in hyper-inflation and not lose the value they already have.
2. Stock up on gold, silver, or platinum. Gold is an actual item, and you cannot make more of it when you run out. All of those items have never been worth zero, and never will.
3. Learn to price your services in barter. Most people in US provide services to one another, and do not create tangible goods that they take/use/dispose of. In hyper-inflation, where the currency goes up in value on a daily basis, set up a price that is based o what is available for that day. For example, if you are a plumber, set your price to fixing a pipe to either fixing your auto transmission, or to the purchase of 100 rolls of bread for that particular day.
4. Whenever you have money, spend it on something tangible. When Russia was going through hyper-inflation, people survived by using their money as soon as they got it by purchasing cars, refrigerators, real estate, stereos--anything that actually has a use. Sure, you will lose money on depreciation, but you will actually have something to use, resell for later, or use for barter.
1. Buy items that do not lose value, or if do, not for long. Things like paintings, real estate (even now, when the market is dropping), collectibles, and antiques. These items tend to gain value in hyper-inflation and not lose the value they already have.
2. Stock up on gold, silver, or platinum. Gold is an actual item, and you cannot make more of it when you run out. All of those items have never been worth zero, and never will.
3. Learn to price your services in barter. Most people in US provide services to one another, and do not create tangible goods that they take/use/dispose of. In hyper-inflation, where the currency goes up in value on a daily basis, set up a price that is based o what is available for that day. For example, if you are a plumber, set your price to fixing a pipe to either fixing your auto transmission, or to the purchase of 100 rolls of bread for that particular day.
4. Whenever you have money, spend it on something tangible. When Russia was going through hyper-inflation, people survived by using their money as soon as they got it by purchasing cars, refrigerators, real estate, stereos--anything that actually has a use. Sure, you will lose money on depreciation, but you will actually have something to use, resell for later, or use for barter.
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voted helpful: matzevolt, buddawiggi, beast1oh1, cynthiag
Thank-you for your well thought out answer!
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There are many practical ways to protect yourself from hyperinflation. Hyperinflation effects both goods and services. So to avoid over paying for these things there are some key things you can learn to do.
1. Garden: Even if you have a small space outside or an apartment there are plenty of ways to grow some basic produce. The cost of seeds is around $1 and the yield is high for most plants.
2. Make your own laundry detergent: http://www.google.com/url?sa=t&source=web&ct=res&cd=1&url=http%3A%2F%2Fwww.thesimpledollar.com%2F2008%2F04%2F09%2Fmaking-your-own-laundry-detergent-a-detailed-visual-guide%2F&ei=an0dSve4IM6fmAeNmaC0Bg&usg=AFQjCNGcDbm5V4Cqsg_m27IJvS_1k2nkDw&sig2=sWgYeRcPuEmSiDBHswmUxA
The article points out after the instructions that you can save $0.30 per load or more depending on what you pay now for detergent. There is also no need to pay for fabric softener. You can simply use white vinegar instead. The smell does not linger but the cost is much less.
Etc.
What I am trying to say is that there are many things we can all do like learn how to do basic maintenance on our vehicles and garden that can help us avoid overpaying large corporations or big businesses in the future.
1. Garden: Even if you have a small space outside or an apartment there are plenty of ways to grow some basic produce. The cost of seeds is around $1 and the yield is high for most plants.
2. Make your own laundry detergent: http://www.google.com/url?sa=t&source=web&ct=res&cd=1&url=http%3A%2F%2Fwww.thesimpledollar.com%2F2008%2F04%2F09%2Fmaking-your-own-laundry-detergent-a-detailed-visual-guide%2F&ei=an0dSve4IM6fmAeNmaC0Bg&usg=AFQjCNGcDbm5V4Cqsg_m27IJvS_1k2nkDw&sig2=sWgYeRcPuEmSiDBHswmUxA
The article points out after the instructions that you can save $0.30 per load or more depending on what you pay now for detergent. There is also no need to pay for fabric softener. You can simply use white vinegar instead. The smell does not linger but the cost is much less.
Etc.
What I am trying to say is that there are many things we can all do like learn how to do basic maintenance on our vehicles and garden that can help us avoid overpaying large corporations or big businesses in the future.
tags: money
voted helpful: buddawiggi, cynthiag
I loved the laundry detergent link and the reminder that we might want to look outside the box.
It's true that our National debt is more than it's ever been, but when compared to our Gross Domestic Product, we actually aren't in that bad of shape.
What I'm trying to say is that as our production increases (and inflation) our ability to pay off debt increases. So the amount of debt we have has definitely increased, but our ability to pay it off has actually increased faster than our debt. *I'm not trying to justify our National debt, I just want to put it in perspective.
According to How to Survive the Next Great Depression, gold and silver will be valuable, but because they will "hold" their wealth, people will not trade with them. Does that make sense? If we go into hyper inflation and/or another Depression, people will hoard their gold.
Anyway, if you are looking for practically ways to survive hyper inflation, I would stock up on food storage. Supposedly during the Great Depression you could trade a cup of oil for 100 pounds of potatoes. With hyper inflation, it will take a while before our incomes go up to match the inflation- so having food now would definitely help out. The main thing with hyper inflation is to survive, so start thinking about what you won't be able to afford anymore.
Buy bikes, to get around. Plant a garden, can your own foods, have plenty of hygiene items, and a well stocked first aide kit. Start thinking of a trade that will be invaluable during times of hyper inflation. Like health care professional, mechanics, etc.
*I do think that printing all this money and getting into so much debt gives us a good shot at going into hyper inflation, and even if it doesn't happen, it can't hurt to have food storage and be self sufficient.
What I'm trying to say is that as our production increases (and inflation) our ability to pay off debt increases. So the amount of debt we have has definitely increased, but our ability to pay it off has actually increased faster than our debt. *I'm not trying to justify our National debt, I just want to put it in perspective.
According to How to Survive the Next Great Depression, gold and silver will be valuable, but because they will "hold" their wealth, people will not trade with them. Does that make sense? If we go into hyper inflation and/or another Depression, people will hoard their gold.
Anyway, if you are looking for practically ways to survive hyper inflation, I would stock up on food storage. Supposedly during the Great Depression you could trade a cup of oil for 100 pounds of potatoes. With hyper inflation, it will take a while before our incomes go up to match the inflation- so having food now would definitely help out. The main thing with hyper inflation is to survive, so start thinking about what you won't be able to afford anymore.
Buy bikes, to get around. Plant a garden, can your own foods, have plenty of hygiene items, and a well stocked first aide kit. Start thinking of a trade that will be invaluable during times of hyper inflation. Like health care professional, mechanics, etc.
*I do think that printing all this money and getting into so much debt gives us a good shot at going into hyper inflation, and even if it doesn't happen, it can't hurt to have food storage and be self sufficient.
source(s):
http://www.imf.org/external/data.htm
How to Survive the Next Great Depression
Microeconomics 7th edition by David Colander
http://www.imf.org/external/data.htm
How to Survive the Next Great Depression
Microeconomics 7th edition by David Colander
Your comment about trading food items intrigued me...thanks!
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