We Scared Ourselves

Yesterday's post about dealing with hyperinflation got us scared. So we will tell you about two action steps we are beginning to implement immediately.

The first step is to lay in a one year supply of non-perishable food and basic consumable items. We will maintain this inventory and rotate the stock. Our inventory consists of things like 100 pounds of rice, 100 pounds of flour, 100 pounds of oats, and so forth.

We imagine several benefits from this programme. First, is that it is probably one of the best uses of cash. If stuff explodes in price, we will regret hanging on to our little dollars. Second, it provides an emergency ration we could use to keep being reasonably well fed if shortages should develop. Third, it will lay in a stock of useful 'trade' items such as food, soap, razor blades, etc. More than once a neighbor has knocked on the door asking for a roll of toilet paper. Next time we'll ask for a jar of herring, or whatever, in return.

The second step is to keep an eye out for things that are 'too cheap'. There is much liquidation going on as many businesses fold. This makes for a plethora of odds and ends that get sold below cost at places like Big Lots (and even Wal-Mart from time to time). Additionally, more good, cheap stuff is pouring out into our neighbour's lawns during rummage sales. It's an art to know when to pounce and 'buy it all', and when to avoid buying something one won't use and probably can't parlay into something one will.

We suspect the coming hyperinflation is going to turn a lot of people into peddlers. It's a tried and true survival strategy in hard times. It's also a way people can work together - swapping an extra candle for a chocolate in order to maintain a modicum of creature comfort in a dark hour.