Tuesday, October 14, 2008

inflation ahead strategies

INFLATION AHEAD STRATEGIES
Inflation ahead. Duh, right? The Federal Reserve is no longer interested in creating credit by the billions. That was so six months ago. Hundreds of billions lost its flavor last month. Now nothing will satisfy the beast except trillions. The US can't use another trillion? Let's slop some of that into the European banks. They can use it! First the Dot Com's. Then housing. Now the banks. Nothing to sell here except inflation. So you see, the American work ethic is alive and well. We import credit and paper for fun and profit.
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All this is going to lead to inflation. Inflation that screws you over. A few of us grow all our own food on land with low taxes and without a mortgage. And don't need supplemental income or a car. The rest of us ( 99.999% ) are going to feel the pain. Food and energy and shelter doubled in the last few years. Of course your income didn't go up more than a token amount. And that was just the warm up period. The coming inflation won't be offset by pumping oil from new mega-fields. It won't be offset by Unions demanding cost of living increases. There are plenty of workers and far fewer jobs that will be available. Real wages will drop.
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What can you do? You can't really save up on precious metal to counteract inflation ( the paper gold and silver that outnumber actual bullion has given us a low price environment but without the actual supply available to purchase ). You can't stockpile enough of anything to totally insulate yourself. Of course, you should try to do both as much as possible. More importantly, you need to decrease your expenses. You need the ability to shift limited funds from one area to another. I can halve my land payments if food prices doubles. I'm currently budgeted for gasoline at twice the current price. Of course, that is only a short term solution. Then I can eliminate land payments altogether ( having a paid for lot means no rent although it also means I couldn't get to work from there- this strategy is for when you join the ranks of the permanent unemployed ) as well as gas expenses.
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The important thing to realize is that you can't win in the coming inflation. You can only plan ahead of time for fall back positions. All the way back to living in a hovel on junk land poaching game and gathering wild edibles. You are investing now for a more comfortable retreat. Don't invest and you are living in your car ( with an empty gas tank ), freezing in the winter and slowly starving. Much better to have the basics ( paid for land, stored grain and legumes, shelter, guns and ammo ) where you are legally able to squat. A long slow collapse means the government is around to harass you. Junk land, trailer, wheat and surplus bolt guns. A few thousand bucks now for a life time of security.
END
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5 comments:

SurvivalTopics.com said...

This is another reason why the more self-sufficient you are the better.

Anonymous said...

Rawles has it right: Tangibles trump paper, every time. That is where our real safety will be in the mega-inflation: good farm land (NOT junk land-which doesn't produce squat), guns, ammo, tools, extra mags, etc. - Fredling

Anonymous said...

i don't know, sounds too easy: guns, silver, wheat etc...

of course, not that it won't help, it will.

gee, the older i get the more grateful i'm for a freakin' hot shower everyday.

a sponge bath is almost as good as long as it's hot water... but, damn a hot shower just makes me function better mentally...

Nightshift said...

Junk land is better than no land. It is cheap insurance against homelessness...is that a word? Anyway, you store food, maybe do some container gardening. Jim, you could do a small shaded raised bed even in the desert.

Hot shower? Have you read Jim's "Free" "Homesteading for under $3000". Download it. All kinds of ways to take a hot shower on the dirt cheap. Tons of great ideas and a few laughs too.

I'm looking hard for land right now. I will spend more than $500 but not as much as alot of folks. I can get a few acres for under 10k with luck in my area, maybe less. It will be a weekend "camp" till things get bad. No debt on the land and improvements is the plan.

Rawls has a good site, and has posted a couple letters from me in the past, but keep in mind he is high end prepping where Jim is uhh....spending alot less.

Anonymous said...

Nightshift, Despite the fact that Rawles doesn't publish my most valuable and insightful comments, I still read him first every day..

Old fart