I have a recurring vision in which years of labor (counted in dollars) evaporate overnight.
As it is, Americans do not save much money. But save they do. Right now there are literally billions of dollars in 401(k) plans and other retirement vehicles.
Do you believe me when I say that it can all go away in single moment — one sudden flash of economic destruction?
Believe it — because it’s true.
When that happens, your 401(k) won’t be able to save you. It won’t even be able to provide you with a cup of cold water to drink.
This is why it’s so important to avoid putting your trust in currency.
Currency is simply a convenient way for measuring value… to facilitate the trading of goods and services. It is not a fortress to trust in.
Why hoard dollar bills if they’re all going to go up in smoke? The answer is… you shouldn’t. Much better to exchange the dollars you save for physical goods.
For instance, put some shelves in your house or basement where you can store canned food items. These items are cheap. But after the dollar collapses they’ll be worth far more to you than they cost now.
As Thayer Watkins writes in his economic history of Germany, the results of post World War II collapse and recovery were not pretty: “The net result was an economic disaster and the creation of near-famine conditions.”
My advice: Get a good food collection going so you’ll have food enough to last for 6 months or a year. This is an affordable way to give yourself a buffer during which you can recover and figure out how you will live in the new barter-based economy.
Oh, and don’t forget drinking water. You never know what might happen to our water treatment facilities in a major dollar collapse. You can live on water for about 40 days without food. But you can only live about three days without water. If I had to have one or the other, I’d pick water every time.
Another thing: Make sure you have modes of transportation apart from your car. If dollars are worthless, America may not be able to acquire oil, and many Americans will quickly run out of gas. How will they get around?
Answer: bicycles, inline skates, scooters… basically anything with wheels that is powered by a human.
Do you have a good bicycle? Would you be able to ride it if you had to? If you answered no to the first question, then get a bike. You’ll need one. If you answered no to the second question, then you might consider getting into shape… enough that you can ride a bike for a few miles if you had to.
If you don’t like to ride a bike, then get a pair of inline skates (Rollerblades). These can get you around quickly, even if you have a bag slung over your shoulder to carry things.
Have plenty of blankets and warm clothing if you live in an area that experiences cold weather. It’s possible that our traditional methods of heating will go away in the wake of a dollar crash. That means no natural gas to fuel furnaces. And that means cold houses. And that means you better have some thick blankets and warm clothing available. You might freeze without it.
It is possible I have overlooked some things. In case I have, simply review in your mind what you’d like to have in case money became worthless. Then use your money to buy those items now so you’ll have them for later.
Remember: Money in a bank or retirement vehicle that you intend to use for a comfortable lifestyle in your old age may not be worth anything at all after a currency collapse. Better to have real tangible goods on hand that can actually support and improve your daily living.
Don’t be scared. Be prepared.
P.S. An easy way to store food is with Food Insurance’s freeze-dried food supplies. The #10 cans last up to 25 years. Find out more at: http://clickora.com/foodbuckets