We are so accustomed to whipping out our plastic cards to pay for everything most people do not carry much money. Think about how much you have on you now. How long would you last without going to back for more cash? Could you fill you tank with gas? Could you buy a week’s worth of groceries? Probably not. How long do you expect to survive in a disaster? You probably would not make it out of the disaster area.
What to Expect During an Economic Crash
It is also widely expected that in the event of an economic crisis the government would freeze assets, including investments, retirement accounts and bank accounts. They could even go as far as to seize assets after designating certain people as a “domestic terrorist”. Millions of people will suddenly not have access to billions of dollars worth of assets that they were planning on for their retirement or their existence.
Unless there is a total collapse of the US economy, cash will still have some amount of value. You have probably heard that “a dollar won’t buy what it used to”. Well, that may be even more true in a disaster situation. Without government oversight, the essentials of life will become a commodity that goes to the highest bidder. There is no ceiling on how high some essential items will go for.
Scammers and con artist are a real threat after a storm. Merchants will dramatically raise prices and take advantage of the unprepared. Desperate people will do and pay outrageous prices for what they used to obtain for a fraction of the cost. Large amounts of cash will be a requirement in almost every disaster situation.
Another real danger is something called hyperinflation. This is where the value of money is lost daily and possibly hourly. Something that costs $1 can suddenly cost $10 or more. This can suddenly take hold and the economy will run wild in a very negative way. Russia is suffering this now. Food is fast becoming too expensive to buy as wages do not keep up with the inflated prices of food and other key products. Long periods of this type of hyperinflation will collapse an economy and could lead to riots and even war.
Will We Revert Back to the Money of Centuries Ago?
Will we revert back to a barter and trade society? Very possibly. To a hungry person what is more valuable a $100 bill or a can of corn? To a person who is trying to feed their children what is more valuable a bar of gold or a box of macaroni and cheese? In dire circumstances these may be real choices that people will have to make.
It is highly recommended that you store items that could be used for barter. Vacuum sealed jars of macaroni and cheese, powdered milk, flour, spices and medical supplies will all be barter items. I even keep matches as a barter item.
Then there are the skills that will become valuable. Trades of all types will become valuable. Carpenter, medical of any kind, military, woodsmanship, camping and hunting will all be skills that someone will want to barter for. Look now for things that you can do that will be worth trading in a WROL situation.