What truly backs the paper currency of the US? Well, in the past it has been gold, the silver, but now…. what supports our currency?
Seems like nothing really does, by the way the federal reserve prints it like Post-It Notes. So, is it imminent that our current economy will completely fail rendering the US dollar worthless? I believe so.
Think about it this way. There is a game, Monopoly. It has paper money that is supported by absolutely nothing. Yes, I know it’s just a game, but follow me here. The current US financial system is now mostly electronic, kind of like credits in a video game. The use and value of which is dictated by 2 things; 1) the global markets, and 2) what the government and federal reserve make it worth. The 2nd part of this is done by printing more money, selling or buying US treasuries to put more money or pull money out of circulation, and by inflation.
So how do you prepare for the event that may or may not take place? How do you prepare for a total economic collapse? Well, you hear tons of people preaching about precious metals. You know, gold, silver, and the like. That’s all well and good, but then you have to look at the fact that the prices keep going up. When you think you almost have enough money to buy gold, for example, the price goes up a little more. Same thing with silver, except silver is already more attainable price-wise and the values move more than gold does, which is a definite plus. But what else can you invest in that will take the place of our current currency?
Have you thought of what people will need? Look at the scare going on with gun control. Look at the prices of firearms and ammo on the secondary market. It’s crazy. So, with that said, investing in some powder and lead may be a good idea. Think about it. You need food. The guy across the street has plenty, but he needs ammo for his AR-15. You happen to have a surplus of 5.56 or .223 ammo. See where I’m going here?
Alcohol is another great bartering item. What do people like to do when they celebrate? Drink. What do people like to do when times are tough and they need an avenue to escape for a bit? Drink. Now, I’m not saying to go and buy up all the liqour you can and sell it to the neighbors. However, if you know how to make liquor or beer and you do a decent job of it, you may have a nice little bartering item that will get you all the food and ammo you need… or other services you may need like medical attention and such.
It never hurts to have a skill to barter with either. For example, here in Oklahoma City, there is a guy with a tree trimming service. He is always willing to barter his service for other goods.
I, for example, have carpentry skills. I’m always willing to barter my skills for various items, whether its cash, gold, silver, firearms, ammo, or just something interesting. There are a lot of people out there willing to do just that.
Money is already tight, people. The consumer price index (CPI) is not accurate, and hasn’t been for several years. You should know this when you go to the grocery store to get milk and it has gone up in price by leaps and bounds. Gas prices have sky-rocketed well beyond anything else. However, the federal CPI reports are 1.5% or so.
When you factor in gas, milk, and other commodities that are left off the CPI reports, inflation is actually closer to 12%. That’s huge, folks. So, when things look grim in your pocket book, I want you to remember 2 Kings 4:1-7. It reads:
2 Kings 4:1-7
New International Version (NIV)
The Widow’s Olive Oil
4 The wife of a man from the company of the prophets cried out to Elisha, “Your servant my husband is dead, and you know that he revered the Lord. But now his creditor is coming to take my two boys as his slaves.”
2 Elisha replied to her, “How can I help you? Tell me, what do you have in your house?”
“Your servant has nothing there at all,” she said, “except a small jar of olive oil.”
3 Elisha said, “Go around and ask all your neighbors for empty jars. Don’t ask for just a few. 4 Then go inside and shut the door behind you and your sons. Pour oil into all the jars, and as each is filled, put it to one side.”
5 She left him and shut the door behind her and her sons. They brought the jars to her and she kept pouring. 6 When all the jars were full, she said to her son, “Bring me another one.”
But he replied, “There is not a jar left.” Then the oil stopped flowing.
7 She went and told the man of God, and he said, “Go, sell the oil and pay your debts. You and your sons can live on what is left.”