A few weeks ago, I was talking about rising egg prices and rising gold prices as being a concern. Preppers should take heed because it’s in our mindset to think ahead of the sheeple and to prepare for the coming hard times whether they’re largely unpredictable (such as with some natural disasters) or all but inevitable (as with inflation).
And as much as I want to believe that the new administration is going to fix some of our problems, I just don’t see anyone doing what’s necessary to fix our monetary woes. The debt, like it or not, is going to continue upward, which means you and I are going to pay more for the many goods and services we require. This is why I continue to encourage like-minded folks to buy the items we all know will be useful when times get truly difficult.
But to understand why inflation is such a problem, I recommend watching the following video from a guy I’ve been watching for a while now. Although a fairly long video, I believe he does a good job explaining precisely how inflation is destroying your life and what he suggests doing about it…
If I remember right, his primary recommendation is to buy traditional assets, such as stocks, bitcoin, and real estate, which is probably still a better choice than hiding money under your mattress. Perhaps surprisingly, I don’t recall him recommending precious metals, though it has been a while since I watched the video. Regardless, as a prepper, I would absolutely be investing in alternative money options, which include gold, silver, and bitcoin. (Of course, I’m not a financial advisor, so do consult one before investing in anything!)
The reason for alternatives should be obvious to anyone paying attention: as the value of one asset (US dollars) diminishes due to inflation, the value of alternative assets rise (gold, silver, bitcoin) not because of a zero sum mentality, but because of investor confidence. And I believe we’re seeing this shift now. Granted, these things ebb and flow, so it’s a long game that we’re betting on with such alternatives.
That said, the financial system is more complex than what I detailed above, and governments will surely do all that they can to hold onto their power (such as the introduction of CBDC as an example) but the inevitable consequence is still the same: the death of the US dollar as we know it.
But as much as I’m down on the future of the US dollar and, to a lesser extend, the United States, there is hope. The same guy in the video above, Tom Bilyeu, truly believes that we can grow our way out of the hole we’re in, largely as a result of gains in productivity, especially artificial intelligence. I’d say that’s remains to be seen, but I do wonder just how AI will dramatically alter our society over the coming years. In some ways it will be good, other ways it will be bad. Perhaps much like the discovery of nuclear fusion was decades ago.
In any case, I also believe there is another asset class that only preppers understand at the moment: all the equipment and supplies that will be useful when times get tough. Although I discuss it all in my book, Sold Out Forever, and in a different way, Crisis Preparedness Guide, the short of it is that you should also be investing in items that people will need if, for example, China closes down our supply lines.
I’m not talking about a larger television or a faster computer, but things like batteries, solar panels, and medications. You should focus on shelf-stable food, defensive options, and first aid items, colloquially known as “beans, bullets, and band-aids.” Add fuel, whether that’s gasoline, diesel, propane, kerosene, firewood, or some combination of the above. Think about all the personal hygiene items that keep us healthy.
To be clear, people need food, water, mediations, and hygiene supplies. They want safety (in the form of bullets), convenience (in the form of power through solar panels, batteries, fuels, etc.), and comfort (in the form of equipment that makes life easier, entertainment, and items that keep life from being miserable).
Examples of equipment that makes life easier or from becoming miserable include:
- ways to wash clothing or dishes when the power goes out
- clothing that keeps you from getting drenched in the rain or your socks from becoming soaked
- box fans and air conditioning
- hand tools (or power tools), chainsaws, etc.
- gardening tools
I think you get the idea. Equipment and supplies are the asset class that I believe most of us preppers can and should focus on because they’re largely lesser expensive than gold and bitcoin, and they’ll be used at some point. Of course, I wouldn’t go out and buy a whole garage full of gardening equipment if you live in a condominium complex and never expect to garden no matter what happens. You must have some common sense with your preparedness purchases, so I can’t say for sure what you’ll need, but I can make my recommendations.
Good luck.
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