Are YOU Ready for Hyperinflation?

 

How to prepare for rapid, excessive and out-of-control price increases…

As we all know, inflation is already happening. We’ve seen that gas has doubled since January 2021 in the U.S. so it’s on the rise again.

Hyperinflation, however, has not hit us yet. It is a conundrum facing central banks as they struggle to provide ultra-accommodative policy to help economies recover from the Covid crisis. Commodity prices have spiked and we are facing severe supply constraints, driving up inflation rates from Europe to the U.S.

There are very affordable things that you can still get now. The advice is to stock up on these things now before we become “Venezuela.”

The first item is food. This doesn’t mean you should go crazy on food, but we should have canned food in stock that will last a long time and that your family will eat. Foods such as beans, canned meats, canned tuna and white rice. You want to have canned food on hand in case you can’t go to the grocery store or can’t grow it. Try getting things that don’t have to be cooked a lot and get a variety. If you have a large freezer, it is advisable that you stock up on the canned foods first, then get your freezer stocked up.

It’s really good to have bottled water around but some kind of water filtration system will become necessary in an emergency situation. A lot of people don’t realize you can drain your hot water tank and use it for the toilet and for cleaning. You can even drink it in a pinch.

Medical supplies is next. Bandaids, neosporin, cough medicine, cough drops, anti-itch medication, burn cream, aloe with lidocaine which helps the pain from a burn situation. Anti-diarrheal medication will come in handy since you’ll be eating different foods than normal. Build up your prescription medications. Try to pick up your prescriptions a day or two before they expire — this gives you 1 to 2 extra doses per month. You will be surprised how quickly that adds up and give you extra medication on hand. Also, having extra medication on hand can be used for bartering during an emergency situation.

Stock up on lots of blankets. Blankets to cover up the windows to keep the cold air from coming in. Blankets to cover up the doorways or stairwells. If you lose your heat, you have to stay in the most interior or warmest room in your house and use blankets to cover up the areas. Another idea is to get a tent or two. If it gets really cold and you lose your heat, you can set up the tent inside your house and your body heat will stay in the tent. Electric blankets don’t use a lot of electricity and can be run with a small generator.

Get yourself some basic tools so that you can fix things around the house. Plyers, screwdrivers, wirecutters, hammers, a small ax, a hand saw.

When it comes to clothing, you don’t need a lot. You can survive with 2 shirts, 2 pants and 2 underwears. Make sure every family member has 2 pairs of shoes and extra pairs of socks. You might have to go up to 2 years without being able to buy underwear or socks. Jeans are clothes that will be hard to get.

Have some kind of fuel source. A generator may not do you very good for very long. A grill, with propane and charcoal as well will provide an alternate heat source to heat up food or boil water. Make sure you have extra propane tanks and keep them full.

The worst things get, the more we will have to deal with pests. In order to keep them away from our homes and our food, we have to stock up on mouse traps and bug spray.

Diapers — cloth diapers, that is. We all witnessed our share of meltdowns last year during the toilet paper and diaper shortage due to Covid. It’s not necessary to stockpile a room full of disposable diapers. Have some disposable, but get a package of 12 cloth diapers with the pins and the rubber pants to have as a backup in case you can’t get the disposables any more.

Start paying attention to the things you use every day. Things like glues and tapes that may come in handy in an emergency situation.

In an emergency situation, just getting yourself cleaned up can change your attitude. Get bars of soap ( they last longer) to have on hand and can also be used to barter. Get soaps that you can use for your body, your hair, and even for dishes and laundry. If you travel a lot, save the hotel bars — those are also good for bartering.

Make sure you have reliable transportation. If you have a car, make sure its tires are good and it’s up to date on its repairs and maintenance. Have alternate transportation such as a bicycle with a basket to carry items around.

A basic “how to” book on how to repair things would be a handy item to have when we don’t have the internet available to look up things.

This may sound like are headed for some version of Armaguedon. In truth, hyperinflation can be catastrophic to a nation. It has happened in Ancient Babylon, in Egypt, China, Rome, various leading nation states in Europe, and some experts believe it will eventually hit the U.S..

While there hasn’t been a case of hyperinflation in a developed country in over 100 years, the smartest guys in finance are deeply worried. Better to be safe than sorry — just saying.