What would you do faced with 50% inflation?

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Alaskajohn

Alaskajohn

Bugged out
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Oct 2, 2020
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Alaska
As a "prepper" are you prepared for how you would manage under a daunting 50% inflation rate? How would you heat/cool your home, feed the family and pay the bills? Would your big fancy home and SUV be foreclosed on? Would your employer still be able to afford to keep you on the payroll?

Tough questions. We aren't immune to the fallout from the world financial Ponzi scheme in the US/Canada/Europe.

Poll shows Argentines expect inflation to hit 50% in next year
 
We have plans that at the first sign it is happening we will pull the trigger on the big ticket items that are on our wish list to use the money we saved for them before its value drops.

Our investments in the market will shift to companies that produce products that fill basic needs.

The thermostat will be adjusted up/down an will wear sweat shirts and blankets to stay comfortable.

Ben
 
Over the past few years we established a flock of birds to produce eggs and offspring for food. We have plenty of seeds to grow produce. The wood stove will keep the house warm and there is plenty of firewood in them those hills, and plenty of that is standing dry due to the fires the past couple years. Aside from that, in my opinion I would just stop buying things that are "nice to have" and let the extra from the monthly check grow for emergency purposes.
It wont be fun, but we could get by for a while.
 
Since the foundation of prepping is preparing for a situation where you have to already have, make or otherwise acquire the necessities of life without being able to buy them...

What I would do would be same as for any other large scale longer disaster. Live off my preps and skills.
 
Build a sixteen acre warehouse, and fill it with cheap Tequila and wild women. Or just move to: "The Mustang Ranch".

My experience is that it is "easier" and "safer" getting wealthy in an inflationary period, then any other. Outstanding credit, high leverage, and large gonads, is all you need. Just don't get greedy. Have a target, don't move the target. A year before you think it will slow, buy a lovely homestead in Alaska.......pay cash. Live happily till it is time to die. Hell.......might as well be happy to move to whatever comes after earth.
 
A lot of things like the roofing metal I bought earlier this year have already gone up 50% or more since January. I paid $2.03 a linear foot. Last I checked prices a month or so ago it was up to $3.35 a linear foot. Gasoline was $1.99 in Jan and now it was $2.99 last time I was off the property. I could easily cite more examples but you probably get the idea. Thankfully I saw the writing on the wall and bought both metal and fuel the week before prices went crazy!
 
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Sourdough said:
Have a target, don't move the target. A year before you think it will slow, buy a lovely homestead in Alaska.......pay cash. Live happily till it is time to die. Hell.......might as well be happy to move to whatever comes after earth.
Click to expand...

That was the plan I came up with and I paid cash for that old homestead 6 plus years ago. I have been spending our two grown kid's inheritance making the place more sustainable with some thoughtful upgrades paid for with cash, so I can sustain with very little cost basis. I have a few other tricks up my sleeve, but the plan is to fly under the radar of hyperinflation by living extremely frugally with sustainable infrastructure, productive crops, subsistence activities and a boat load of preps purchased during the time of plenty for these lean years to come. My next upgrade this summer might get me year-round running water, but do we really need such luxuries? Probably not. Bathing from a bucket isn't all that bad.
 
Biggkidd said:
A lot of things like the roofing metal I bought earlier this year have already gone up 50% or more since January. I paid $2.03 a linear foot. Last I checked prices a month or so ago it was up to $3.35 a linear foot. Gasoline was $1.99 in Jan and now it was $2.99 last time I was off the property. I could easily cite more examples but you probably get the idea. Thankfully I saw the writing on the wall and bought both metal and fuel the week before prices went crazy!
Click to expand...
The last couple weeks installing the drywall in my garage I have been moving around 4 empty 5 gallon gas cans. Yesterday I finally remembered I had set them aside to take and fill with fuel the end of December while the prices were still low. I forgot. I am rather pissed at myself for that lack of preparedness. I even have the fuel stabilizer bottle sitting next to the gas cans, I was prepared, just forgetful. Gas is about $3.30 a gallon here, in December some places were under $2.00.
:cry: :cry: :cry: :cry:
 
I stored about 330 gallons we still have about 275. But we are using it steadily with running AC and the irrigation pump. I NEED to install 4 more solar panels ASAP. Pretty sure I have everything on hand to do that except the cleared space. Need to remove 100ish trees first and they are neither small or huge and another 100 would really open up the panels already installed to the afternoon sun..
 
I'm thinking about buying 1 more set of metal shelves. I have enough but not the right sizes, I have found that the 4'X2' work better for my application than the 4X18", so I would be retiring on, don't know what I would do with it, might move it outside?
 
We had a bear of a time finding more metal shelving for the new basement. The minute Sams got in the gorilla shelves, they'd be gone. I like them because they are really big and hold a ton of weight. Settled for some that we could get, about half the capacity, but seem ok. Prices on shelving have gone up big time, good to hold on to what you have.
 
Neb said:
We have plans that at the first sign it is happening we will pull the trigger on the big ticket items that are on our wish list to use the money we saved for them before its value drops.
Click to expand...
The first sign it is happening?? What are you looking for? IMHO, it IS happening now. There have been several shortages on goods and the prices don't seem to be stopping anyone from buying. What does that tell me? It tells me that people see the writing on the wall. It may not be a complete 'panic' situation now, but it is close. TP is still on the shelf, so 'panic' hasn't hit that level yet, but those (like many on this forum) can see it happening before our eyes and are buying whatever they can now. If you wait too long.....you won't be able to buy those 'big' ticket items b/c there won't be anything left. It's getting that way right now for many prouducts, especially with anything that has a computer chip or motor.

It may not be an overall 50% inflation rate currently, but I'm preparing now for just that. I'm spending cash like a drunken sailor.....just not on things a drunken sailor would spend on. I'm still investing in the market, b/c typically the market will keep pace with (and even beat) inflationary pressures. We are purchasing those things now that have been on our wish lists for a very long time. Unfortunately many of those purchases also come with a lot of work. So, we've been busy working and spending. When this year is in the rearview mirror, hopefully we can look back and be proud of how much we accomplished this year.

As far as energy prices, next month we will be meeting with someone to discuss geothermal options. That should save lots of money moving forward, even though the initial investment will take 4-6 years to pay for itself. I can live with that. That timetable may be even shorter if inflation really takes off.
 
I think Rebecca said it best in one of her posts about South Africa. The banker told her mother to buy "things". Anything tangible, so she would have goods, and not cash. I would throw in with Sourdough. I would buy more liquor, and maybe TP. Neither will go bad, and both are great barter items. That would be the best way to avoid hyperinflation.

We don't have any big ticket items other than cars and house, so nothing to cut back on there. I am close to retirement, and my wife is already retired, so we don't go anywhere, or do nearly as much as we used to. Our lifestyle is much more reserved.

My biggest concern would be the maintenance medication we all take. We have been very fortunate that insurance has covered the lion's share of the cost, but if that changed and drug prices skyrocketed we could be in trouble. Good post. Makes you look around and seriously look at where you could cut back if needed.
 
I could do without the liquor and the tp stocking. We have both, but I'd recommend to newbies to get the three B's (beans, bullets, and bandaids). I know how to make a fruit wine, but so do many people around here. We were just talking with a cousin who said she still has a couple of catalogs in her outhouse. We worry about med price, too, my husband is dependent on many meds.
I was happy this year that my five year old veg seeds worked fine. I seed started all our vegetables, and provided plants for two other family gardens this year. The only thing I used new seeds for was for cantaloupe and lettuce. Those old ones didn't come up.
Food. Stack it to the rafters. Then do it again.
 
Just was discussing the child credit with husband. I know most on here do not have kids at home under 18, but we raise three grandkids so we do. We were surprised last year when husband retired, that we recieved $2K per child at tax time. Stunned, really.
So it's been announced it's changing up this year. Starting in July, people will receive a monthly child credit instead of getting it at tax time. And for kids six and up it's gone to $3K each kid a year, more for under six years. So the total will be divided into monthly payments.
I will not be surprised if the majority of people will be really mad at tax time that they are not getting their extra ten thousand dollars or so for their kids because they are getting some monthly. Probably going to think the monthly payments are just a new stimulis or something.
This is not to be confused with the earned income tax credit. Ha.
 
angie_nrs said:
The first sign it is happening?? What are you looking for? IMHO, it IS happening now. There have been several shortages on goods and the prices don't seem to be stopping anyone from buying. What does that tell me? It tells me that people see the writing on the wall. It may not be a complete 'panic' situation now, but it is close. TP is still on the shelf, so 'panic' hasn't hit that level yet, but those (like many on this forum) can see it happening before our eyes and are buying whatever they can now. If you wait too long.....you won't be able to buy those 'big' ticket items b/c there won't be anything left. It's getting that way right now for many prouducts, especially with anything that has a computer chip or motor.

It may not be an overall 50% inflation rate currently, but I'm preparing now for just that. I'm spending cash like a drunken sailor.....just not on things a drunken sailor would spend on. I'm still investing in the market, b/c typically the market will keep pace with (and even beat) inflationary pressures. We are purchasing those things now that have been on our wish lists for a very long time. Unfortunately many of those purchases also come with a lot of work. So, we've been busy working and spending. When this year is in the rearview mirror, hopefully we can look back and be proud of how much we accomplished this year.

As far as energy prices, next month we will be meeting with someone to discuss geothermal options. That should save lots of money moving forward, even though the initial investment will take 4-6 years to pay for itself. I can live with that. That timetable may be even shorter if inflation really takes off.
Click to expand...

There are signs the current inflation is transitary.

New home sales have dipped. Inflated wood and copper were driven by home building surge. Meat products are still feeling effect of the Kung Flu and extended unemployment benefits etc.

We are going with that theory and cashing out our copper stocks since they have jumped lately.

One sign I would look for is when things that go down in price starts to go up. Electronics is something that has historically gone down in price. But I don't want to drag this thread down into an argument over if we have hyper inflation or not. Just sharing my thoughts on the question posed to me.

Back to what we do?

The dehydrated canned beef The Princess has been collecting have always been costly even when on sale. But if we did did have 50% inflation, the long term storage food stuffs may look like a cost effective alternative.

Ben
 
Morgan101 said:
I would buy more liquor, and maybe TP. Neither will go bad, and both are great barter items. That would be the best way to avoid hyperinflation.
Click to expand...
Until someone walks in on your stash and thinks you have quite a problem on your hands.:LOL:

I think anything you can stock now that you know you're going to use and won't go bad, is a good bet. Take advantage of sales and clearance priced items too. Unfortunately storage space is a big problem for a lot of folks, and now is not a good time (cost wise) to try and build an extra storage building.
 
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