Hyperinflation Risks Of The Coronavirus
The coronavirus is all over the news today, and as a result of my reading, I learned a new ‘catch-phrase’: Flu-conomics. Then I start wondering: is this threatening pandemic leading us to hyperinflation?
So can a medical pandemic lead to hyperinflation? The financial costs can be devastating. The stock market alone has seen its biggest losses since the 2008 global financial crisis. The cost of treating infected people, the massive business losses due to cutbacks, the tourism industry taking a beating, school closings, etc. can be financially devastating.
Hyperinflation gravitates to a period of economic turmoil or depression. We seem to be leaning to that kind of period in time. And if it should occur, most of us won’t last a month in a government collapse brought on by hyperinflation which can be brought on by a global pandemic such as COVID-19.
Hyperinflation In History
Hyperinflation is a term to describe rapid, excessive, and out-of-control price increases in an economy. While inflation is a measure of the pace of rising prices for goods and services, hyperinflation is rapidly rising inflation.
Although hyperinflation is a rare event for developed economies, it has occurred many times throughout history in countries such as China, Germany, Russia, Hungary, and Argentina.
An indication of economic catastrophe for a country is the inevitable collapse in the value of its currency, otherwise known as hyperinflation. Cases of hyperinflation abound throughout history
- The most well-known example of hyperinflation was during the Weimar Republic in Germany in the 1920s.(a loaf of bread cost 200,000,000,000 marks)
- The most recent example of hyperinflation is in Venezuela. As of 2019 that country had in excess of $100 billion dollars in foreign debt.
- In Zimbabwe during 2019, poor economic policies by the government caused hyperinflation there.
Sometimes, governments that are acutely in debt with no way to increase their income levels will start printing money in order to pay off the number value of their debt. Say your country owes someone several billion dollars. All you would have to do is print out several billion dollars of currency. How easy is that?
Hold on there! The problem with this is that, because every currency today is a command and not backed by any particular commodity like gold, the increased supply will decrease its value. And that is where the problems will start.
What’s Your Emergency Preparedness Plans
You know, with all that is being said about prepping all over the net, less than one percent of our total population is actively getting ready for a worst-case scenario. That’s amazing considering that you can buy basic survival supplies in the big box stores.
As I have mentioned several times on this site and others, even if you give most people
the information they need, they won’t take action. They might say they’re going to do it, but they’ll never follow through.
Do you know why they never start? Because they’re still expecting the government to bail them out.
That’s right: The vast majority of our population has learned how to be dependent on the government. George Orwell’s Big Brother is there to take care of you.
That’s actually rather amazing to me, considering FEMA’s track record. After Hurricane Katrina, they did a horrible job of responding and helping the people out. Later, when Hurricane Sandy came along, they didn’t do any better.
Of course, the media covered up the fact that they didn’t do any better after Hurricane Sandy. They didn’t make a big deal out of it as they did with Katrina, but it was still a disaster.
FEMA didn’t even start putting out requests for bid until a couple of days after Sandy struck, and they had several days’ notice that it was going to hit NYC! How’s that for government red tape?
You see, the government really isn’t prepared to deal with any disasters, let alone one of nationwide proportions. If the government itself should collapse, then there won’t be any help coming. Yet people will still expect someone to support them in a crisis.
Too many people have become dependent upon the central government for everything. That’s one big thing that makes preppers different from everyone else. They don’t depend upon the system; they’ve decided to depend upon themselves.
When all hell breaks loose such as a pandemic that might lead to a hyperinflation scenario, the dependents will rise up in anger and protest. It’s only after that doesn’t do any good that they will start to take any action for themselves. That crowd of angry people will turn into a mob and start destroying things because they’ll feel they’re out of options.
These people won’t have any way of taking care of themselves or their families. So, they’re going to do what they’ve been taught to do. They’re going to expect others to take care of them. If the government can’t, they’ll look for whoever can.
You need to be ready for that time. You may have to defend your home, and you may have to bug out. I can’t tell you now which it will be. All I know is that things will get ugly fast if the dollar rapidly loses its value.
I have to say, things aren’t looking good. The government and the country are more polarized than ever. There’s a new crisis in Washington every month and now we have this pandemic thing going on. Where will it end?
Eventually, the government could run out of money. It’s not about the debt ceiling; it’s about people being willing to loan money to the government. With all that’s going on, the US government is losing trust fast.
That’s why we need to be concerned with such things as a survival kit of some kind along with some survival knowledge. I don’t know about you, but I don’t want to be one of those people depending on FEMA to take care of me. I love my independence too much for that.
I’ll take care of myself.
An Economic Scenario
So how could this run-away inflation start? It begins with a run-a-way effect on the value of a particular item. Such as a gallon of gasoline cost 2 dollars at the beginning of the process, it can start costing 50, 500, 5000, and even 5 million dollars of the currency to buy that same gallon. Soon, everyone’s savings become completely worthless, and unless you prepared beforehand, your up that creek without your paddle and completely, and utterly broke.
However, for Western countries, this seems like an unlikely event. However, since 1971, we as U.S. citizens have been able to utilize our green-backs as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. Government
Combine that with our $20 trillion-and-climbing debt, and this coronavirus thing and you get a potentially disastrous situation such as hyperinflation.
So, if we find ourselves in a situation where the inflation rate is starting to climb into double-digit levels, we want to be emergency prepared for a situation where our money isn’t worth the paper it’s printed on.
Hyperinflation preparedness can be broken down into three different time spans – what to do leading up to the crisis, short-term ability to bug out and survive the potential wave of chaos and violence, and have some long-term asset production and survival tips in your back pocket.
Survival Strategies After A Collapse
How are you going to prepare for hyperinflation?
You need a plan of attack for when disaster strikes – where are you going to go both financially and physically?
How are you going to get there?
Long-Term Survival Tips
If you’ve practiced your emergency preparedness accordingly, a post-money life may not be so bad. If you’ve stocked first-aid items, food, water, and basic luxury goods such as needed tools, you’ll more than likely have everything you need to get started.
If you developed a skill, begin offering your services to your neighbors. We may be in a bartering economy and you will need to learn some bartering skills.
High-value trade items might include weapons, ammunition, food, drugs, tobacco, medicinal, coffee, alcohol, and marijuana.
Develop Essential Survival Skills
People need certain things to survive and thrive. Your job is to provide them with the items or services that allow them to do that. This includes carpentry, blacksmithing, farming, or you as an educational resource.
If you own arable land to produce food, start fertilizing it, preparing it, and get it ready to plant it for the growing season. Your existence may now depend on your assets to start producing value.
Bugging Out For Survival
Mobility is absolutely key if you feel the need to get out of town. Also, the usual bug out bag with food and supplies will be necessary.
A car that has some off-road capabilities is a wonderful asset to have. A small stash of extra parts for it – like extra tires – and some extra fuel will provide you with a safe ride to your out-of-town destination. (Remember, gas has a 6-month useful life expectancy, so change out stored fuel regularly.)
Bring your knowledge and the bartering items and any other materials for a productive life that you haven’t already moved to your destination with you.
Before Hyperinflation Preparedness Tips
It might be a good idea to consider some of these long term emergency preparedness ideas before we come anywhere near an economic collapse situation.
Invest in a getaway piece of land. Land that can be productive such as having a water source and farm ready land. People are going to have food issues and will need to eat. Pigs and chicken raising are also high-value assets to keep on your land for fertilizer and food.
The ability to get away from high-population areas that will be the center of a lot of chaos will increase survival chances a dozen times over.
You may want to invest in foreign assets such as real estate and maybe keeping some of your money in a foreign bank that is not depending on our own economy.
Investing in one of these new digital currencies such as Bitcoins might be of interest to you. they are not tied to any particular country or their currency, however, be warned. They are extremely volatile, so venture into digital coinage very carefully, as you can very easily lose everything overnight ‘quick’.
Do not forget the internet if you still have access to it. The digital business offers limitless ways of making a living via your own niche startup or some meaning full employment.