HEY!
LISTEN TO THIS GUY.
HE LAYS IT OUT IN DETAIL...
One of the possible causes or effects which could lead to or result from an EOTWAWKI situation is the devaluation of our currency. I take this as a given in any discussion of the monetary situation, both now and after such a "hypothetical" event.
If you don't already have a grasp of how this works,
Please read this article. The author makes it simple and plain.
It is a multi-part article and I will update this post and any thread that follows.
Part 1)
https://survivalblog.com/purchasing-power-past-present-future-part-1-by-l-m/"...
It has been observed that gold and silver will rise to offset the loss of purchasing power to a satisfactory degree. For example before 2007 gold sold for $300-$350 an ounce. Today and ounce of gold is $1,320. This is a type of indicator reflecting the direct negative impact of inflation on the dollar. Now you need an additional $1,000 to purchase that same ounce of gold. Did gold go up in value? No! The USD lost value..."
Part 2)
https://survivalblog.com/purchasing-power-past-present-future-part-2-by-l-m/Part 2 gives (in my opinion) and excellent explanation of why the money system is failing... AND it gives very detailed references should you want more verification. If you have the mindset which likes and understand charts and graphs, DO expand and look at the several which are part of this article. They make the case for the author.
I quote the final paragraph of part 2, because it states (again, in my opinion) the present situation:
"NOTE: From 1913 until now, inflation of the dollar has been 2950%. A 1913 dollar would now be worth $.034. When I became a wage earner in 1950, I could buy a full breakfast, eggs, sausage, hashbrowns, shortstack, juice, and coffee for $0.39. This morning I paid $9.60 for the same; that is an inflation of 2460%!"
Part 3)
https://survivalblog.com/purchasing-power-past-present-future-part-3-by-l-m/This part (3) contains some frankly scary statements, with references... I won't quote them here, but it is worth reading... You are an adult now and know how to handle the truth, even when it is painful.
I will quote this section:
"There is currency, and there is money. Money is commodities. Commodities are food, precious metals, land, et cetera. Today, currency is fiat– fake. In this country, it used to be backed by silver until 1965 and gold until 1971.
..."
And this, which is the whole point of starting this thread:
"This brings us to our conclusion. You own a weapon for protection. You have fire insurance for your home. You have renters insurance for your rental. You have car insurance for your automobile and health insurance for your health. You have life insurance to pay for dragging your carcass away (and hopefully some left over for your loved ones). You have these policies to protect you from the unknown. There is now a huge unknown in the world of currency. Using money to insure against currency unknowns seems prudent. That is why you have tangibles like gold and silver.
..."
Part 4)
https://survivalblog.com/purchasing-power-past-present-future-part-4-by-l-m/This part talks about the move to a "cashless" society which, if you are not aware, is being strongly pushed by both banks ans businesses. "Why" is the question to ask...
Part of the answer to "Why" is in this quote, but only part of the answer:
"
By forcing people and companies to convert their paper currency into bank deposits, the hope is that they can be coerced to spend that currency rather than save it because those deposits will suffer from negative interest rates and/or fees."Six (SIX!) additional reasons are given in the article.
Part 4 continues with a detailed discussion of why "junk" silver and real gold coins are to be collected as part of your prepper stores.
Part 5)
https://survivalblog.com/purchasing-power-past-present-future-part-5-by-l-m/This part is a detailed discussion of why The Powers That Be (TPTB) want fiat money and denigrate commodities generally but Gold and Silver in particular.
In a nutshell, this is what is happening:
"Experts are telling you what they are about to do! Right now, today! This brings us to the end. (I think I already said that). I have paid attention and studied worldwide macroeconomics for over 35 years. This is the first time in history where we have every nation in insurmountable debt. Most all are in extreme debt, meaning that their debt surpasses their nation’s ability to produce income or Gross Domestic Product (GDP), as it is known. The U.S. has a GDP of approximately $17 trillion. Of course, you have heard that the U.S. debt is $18 trillion. And you may have heard that the U.S. unfunded liabilities, Social Security, Medicare, Medicaid, Fed Gov Pensions, et cetera is over 240 trillion. Okay, when speaking of ridiculous numbers and concepts such as the debt, who gives a hoot. There is no proof of the validity of any of these figures, nevertheless when I go to the grocery store and buy coffee I see the difference in package sizes. Remember?"
I think that is the end of this article (5 parts).
I, TWP (and others on the forum) have posted previously about why (or why not) to keep some cash in your Bug-Out-Bag. What follows is my personal thoughts on the subject:I've advised against paper currency because it is only fiat money and only worth what someone else is willing to trade for it.
NON-Precious Metal coins (No Gold or Silver content) are only slightly less useless than paper, because they have actual metal content... Pure copper pennies have real value as copper metal, pure Nickel metal coins (nickels) have value because they are made of real nickel metal. Even old "steel" pennies have more value than todays composite (copper plated) pennies.
I am not advising that you dump all your fiat money, since that would be financial adv/ice and I am not a financial advisor and I don't play one on TV (running joke for those who are in on it). However, I do think it "unwise" to put any trust in something that has no intrinsic worth. Look where it has gotten us in todays economy...
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