THE ONLY WAY TO PREPARE IN A VOLATILE ECONOMY
The recent Equifax data breach was unprecedented in many ways.
It was massive. As many as 143 million Social Security numbers were compromised. Birthdays, credit and debit card numbers were also stolen.
Also, it’s suspicious to me how long it was kept from the public. Most experts recommend that the best way to protect yourself after this breach is to freeze your credit, if you already haven’t done so. Perhaps those on Wall Street and at the Fed felt that all Americans freezing their credit at once could put the economy in danger? Sounds plausible to me. Meanwhile, they all put us more at risk, allowing private information to circulate for months before the public was notified.
It’s a Symptom
I believe that this most recent breach is a symptom of the inherent weaknesses in our current monetary system.
We’ve reported on
“Black Swan Events” before, where all commerce could freeze in a matter of hours. (You can read that article by clicking here - it is a must read and something all Americans must understand.)
In short, it won’t take much for something like the Equifax breach to produce
a full-scale Black Swan Event. If one of these events caused merchants to be unable (or unwilling) to process electronic payments, things will get ugly fast.
Looking at the calendar, I get the feeling that this kind of crisis may be imminent.
October – Harbinger of Chaos
Fall – particularly the month of October, tends to be rife with emergencies.
Two of the biggest financial crises in American history – the Great Recession and Great Depression, both became dire in the month of October.
You can read our in-depth study on why crises tend to strike in fall here:
Article: Avoid This Pride Before the Fall
With our economy booming then busting roughly every 7-10 years since the Great Depression, I believe now is the most urgent time to prepare for economic crises.
Invest in the Tangible
So what is the best way to prepare in times of economic uncertainty?
You need the things that you can still use even if our way of commerce is shut off, like a tap. And it will likely happen that fast, without much notice.
Having money in the bank, stocks, bonds, and credit will most likely be meaningless and useless. Cash may be briefly useful, until inflation kicks in and essential goods are scarce. Bottom line: cash will not save one from starvation.
To properly invest in our future, we have to think about
If grocery store shelves are empty and they quickly clear within a day during an emergency, the only
thing of value is the food we have stored up. Buying emergency food now also saves any cash or bullion you might trade for food at inflated prices. That last sentence bears repeating. Buying emergency food now also saves any cash or bullion you might trade for food at inflated prices. Patriot Pantry food storage has a shelf life of up to 25 years which means that its value is protected against even normal rates of inflation.
Bottled water will disappear from grocery shelves in much the same way. In a Black Swan Event, water utilities may shut off the taps. This happens quickly if there is a long-term power loss. Even left on, you can’t trust that it will be treated properly. Why would these companies operate honestly if they can’t expect payment? That’s why
water filtration also adds tangible value to your preparedness plan.
In addition to water utilities being spotty or off, the electrical grid may go down the same way. Investing in alternative sources of power like solar is a good hedge against a Black Swan Event for this reason.
Finally, you’ll want items for barter. Silver, copper and gold are popular – they represent tangible value in its clearest sense. But how good is gold when food and water are hard to come by? That’s why
we recommend stocking up on things many people can’t live without. Alcohol, tobacco and the most popular vice – coffee – all make great contributions to the tangible value of your preparedness plan.
In summary, physical assets are your best bet
against a fragile monetary system.
I hope you’ve found today’s Survival Scout to be insightful and gives you ideas for your own planning. We’d love for you to share them with us, especially on our social media pages!
Have a great weekend friends! Take stock and build on your home’s tangible value!
MPS Preparedness Advisor
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Read other Survival Scout articles or last week's:
Without Practice, Plans Are Only Intentions.