One of the most frightening prospects for the future economy is the possibility of hyperinflation. Hyperinflation is a scenario in which the cost of basic goods and services rises much faster than the ability of ordinary wages to keep pace. During hyperinflationary times, simple shelter, food, and utilities can cost more than the average person makes.
Some common signs of hyperinflation include rapidly doubling prices at the supermarket, a falling dollar value, the refusal of lending nations to extend credit, and a huge national deficit. Some experts believe that over the next two to three years the value of the U.S. dollar will fall by as much as 75%. Other signs of hyperinflation already in place in the U.S. include increasing federal deficits and unstable commodities pricing.
How can you prepare for a collapse of the dollar and survive hyperinflation should it happen in the U.S.? Here are some basic hyperinflation strategies:
Create an Alternate Shelter Plan
If you rent, or if you still have a mortgage on your home that you can’t pay off, you will need to know where you can go for safe shelter. The best option is to arrange to move in with a relative with acreage in a remote area: someone who owns his or her home outright. Make sure everyone in your family knows where you will all meet up and live in the event of a financial catastrophe that results in the loss of your home. When hyperinflation hits, mass confusion or hysteria can break out quickly, so it is important that everyone in your family knows well in advance where to go if they cannot go home.
Compile All Your Important Documents in a Zip Lock Plastic Bag With Some Cash
Keep this bag in a safe location where you can grab it quickly. Keep a first aid kit nearby too. In the event of hyperinflation, you may have to leave home quickly, and you might not have time to run around gathering birth certificates, id cards, passports, vehicle registrations, etc., but you will need to have all of these documents with you to prove who you are. Many people who have lived through catastrophes such as war, hurricanes, and other natural disasters have said that if they could only do one thing differently, it would be to gather their documents this way and keep them handy. Once you have left home and cannot return, getting your documents together again can take months, and in the event of hyperinflation, you may never be able to get the back.
Convert Your Savings to Swiss Francs or to Gold or Silver
If you have substantial savings, you might not want to convert everything to precious metals, but you should be aware that in the event of hyperinflation U.S. dollars will become worthless, so your savings won’t do you any good if it is all tied up in USD. Swiss francs are backed by gold so their value is not tied to the dollar, and opening a Swiss bank account is not as difficult as most people imagine. Switzerland is also a neutral country unlikely to experience huge upheavals in the event of U.S. hyperinflation. You shouldn’t keep more than three months worth of pay in a liquid savings account: everything else should be invested in something that will retain its value no matter what happens to the dollar.
Canned goods, dry goods, fuel, matches, soap, and even seeds of crops that grow easily in your part of the country are all worth hoarding. If hyperinflation never hits, all of these items keep well and can be used at a later date. What’s just as important is that you will be able to trade such items for other things that you need more easily than you will be able to use money. Things retain value: If you need matches you need them whatever the dollar is worth. So stockpile things that can be used for trade like toilet paper, matches, ink, and fuel too.
Wean Yourself Off of Public Utilities
Of course this is difficult, but any steps you can take in this direction are worthwhile. Buy and install a simple woodstove. Buy a solar cooker (available at any outdoor sports store), some kerosene lamps and some long burning candles, several solar flashlights, a kerosene camp stove, a generator, a water purifier (also available at camping outlets), and warm clothing and blankets. In the event of hyperinflation, public utilities may shut down or simply become unaffordable. The truth is that in the U.S. the public infrastructure that delivers electricity, water, and gas in so dated that chances are good you will need to learn to generate much of this for yourself whether hyperinflation hits or not, and there’s no time to get started like the present.
Keep the Trunk of Your Car Packed With Emergency Supplies
In the event you need to leave in a hurry, it’s good to have blankets, some canned and dried food, bottled water, matches, a change of clothing, toilet paper, towels, and a first aid kit already packed up in the trunk of your automobile. A solar cooker costs less than $20 online and is another good item to keep in your trunk.
Consider Buying a Weapon
It’s horrible to have to think this way, but if you’ve never used a gun and don’t own one, this might be a good time to learn about and to buy and register a legal weapon. A hunting license is a good idea too. In the event hyperinflation hits, you may need to defend your household, and your survival might depend on your ability to find and shoot small game for food.
The prospect of hyperinflation is terrifying. Currently, many people are not preparing for it simply because they just don’t want to think about it. Having a plan in place, stockpiling necessities, converting your savings to precious metals or Swiss francs, becoming more self-reliant, and organizing your affairs to facilitate a quick exit if necessary are all steps you can take today that will keep you ahead of the chaos should hyperinflation strike.