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Money – What Is It Worth?

I’d like you to take out a $20 bill from your wallet/purse or for you drug-cartel folks a $100 bill.  Please do so now.

For a fasinating article on the history of US money, click here.

Basically, in 1785 America backed it’s paper money with a gold standard, you could exchange your dollars for gold and vice versa.  That lasted but 76 years and then politicians realized they could just turn on the printing presses and make as much money as they needed for their own use in Washington – they dropped the gold standard and replaced it with a “fiat standard” – that $20 bill above is backed by the “Full faith and credit” of our elected politicians at that moment in history.

For $20 you can buy probably 20 plastic 1-gallon jugs and fill them up with tap water to store in your basement – each gallon of water is worth $1 let’s say.

Now imagine that an emergency has taken over America and the water stopped flowing 3-weeks ago, there is no electricity, and the police are a fond memory you haven’t seen in those 3 weeks.  You’re family wisely used the 20 gallons of water and now you have but 1 gallon left, after that you will be looking for water in a creek about 1 mile away.  You are scared of what will happen next.

Your neighbor knocks on your door and asks if you have any water left and would like to buy – you say you have just 1-gallon left.  He and his family haven’t had any good water for 3 weeks and he says he would like to buy that gallon of water from you – what do you want for it?

If you had 20 gallons left you might charge your neighbor $2 to account for your time, the jug, and the water.  Heck a personal check is fine too.

If you had 15 gallons left you want $20 for the gallon.

If you had 10 gallons left you want $100 for the gallon.

If you had 8 gallons left you want 1 ounce of gold, a $50 US Gold American Eagle worth about $1,700.

If you had 5 gallons left you want 10 Gold American Eagles worth $17,000

If you had 2 gallons left you will not accept gold or silver or paper, you won’t sell it at any price.

What I’m trying to say is that without a free market to set prices you get to charge any amount of paper money, gold, and silver you want.  But at some point money means nothing to you.

So you need to have gold and silver in your house – locked away in a safe bolted into concrete and can only be opened bio-metrically – with your thumb print.

For about $20 you can buy a test kit that easily determines if that gold, silver, platinum ring, or coin is real or phony.  For $60 you can buy a kit that contains a very accurate scale that weighs precious metals and diamonds.  If you want to survive and thrive in an emergency you need to prepare, if not someone else will be telling you what things are worth.  Are you a proactive person or a reactive person?

Barter – the new currency

Bartering will be the new currency in an emergency at some point.  Precious metals and diamonds are one thing but even those currencies will mean little as the disaster drags on.  Items that you have in your survival kit will be worth a fortune in a disaster to others.

You can be a Good Samaritan and give things away but eventually you will be sorry and wished you had bartered instead of handed out precious items/currency.

As you build your survival kit, I want you to think of items that you can use to barter for things you might need in the emergency.  Ideally, the item you want to barter is surplus to you and can easily be carried on you as you mingle in the new world order.  Therefore forget dragging an elliptical running machine to market but, instead, buy extra items that you believe your neighbors would literally die for.

I know exactly what items I’m going to buy surplus and use to barter.  I’m not about to tell you what I’m buying – you figure out your own barter currency for your neighborhood and your budget.

 

Money - What is it worth quiz

Money will be VERY important in an extended emergency, not the old money in your pocket now but precious metals, gem stones, and items for barter.
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