Darn, that’s a scary concept, isn’t it? The concept of spending millions of dollars for a haircut? A hundred million dollars for a loaf of bread? The cost of staples going up and up – and up! – so rapidly that you’ll have to bring your money in a wheelbarrow?
Relax, at least a little. Experts at the Federal Reserve Board (or the Bank of England, or the European Central Bank) will make sure that doesn’t happen. Won’t they?
In any event, you need to be prepared. Here’s how to prepare for hyperinflation.
- First of all, know the warning signs
- Don’t trust the mattress
- Gold and silver
- And move beyond your borders – at least with your money
- Finally, barter can be your friend
Hyperinflation is defined as rapidly worsening inflation: so rapidly that you find prices of everyday items going up daily. (One simple definition – if stuff doubles in a year or two, you’re looking at hyperinflation.)
But if you’re in the middle of it, you might not be able to see it while it’s happening. It’s a good idea to save receipts and take a monthly look back at staples. Does gas go up by 10% each month? Does bread actually double in price over a period of a year?
The worst place for your cash, according to just about any economist, is under a mattress. Even if you’re unlikely to get much interest from a typical savings account – what happens to the value of $1 sitting under your bed while the cost of everything goes up and up?
It’s still ONE DOLLAR. And it buys less and less. Scary, no?
We talked about buying Gold and Silver on this site before. Here’s a link: It’s a good idea to see what exactly you do have in precious metals and…this next point is key…whether any of that is spendable.
For instance, if you walk into the local store with a one-ounce gold coin and you’re looking to buy bread with it, you’re not likely to get change back. It’s a really good idea to have silver and gold – both – in as many spendable denominations as you can.
We’re not advocating going offshore with your assets. BUT, if you’re listening to the stuff about gold and silver, make sure you also get coinage in denominations that aren’t your own currency, too.
We LOVE the concept of the barter economy, and you need to start working with your potential barter network NOW, before the economy goes in the toilet.
Speaking of toilets – is there a plumber who can do some work for you in exchange for a batch of canned vegetables from your garden? If you’re a writer, can you offer to write web content for someone who can give you some firewood in exchange?
These types of transactions can be very beneficial – especially in a down economy.
Are we really heading into hyperinflation? Well, who knows…but, if you want to be certain that you’re prepared, take some precautions now and you’ll be prepared later.