How to Survive Hyperinflation
Hyperinflation is a very scary prospect, and is when a sudden and extreme increase in inflation occurs and a currency loses its value. What this means to you is that your money will be essentially worthless because the price of goods and services will be so outrageous. For instance, say you live in an apartment complex that charges you $1000 a month in rent. If hyperinflation occurred your landlord may have to up the rent to $10,000 a month just to pay his bills. If you could not pay you may be evicted under a force majeur clause in your lease (a clause that unbinds initial agreements when a business is faced with unforeseen and dramatic circumstances). Then you could be homeless...Dont think it could happen? Surely lets hope not! But the fact of the matter is that it has happened before in the US and a significant number current day economists predict that at least some degree of hyperinflation is just around the corner. At any rate it is best to prepare yourself and your family with these steps:
- Difficulty:
- Challenging
Instructions
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Have a plan to get to a safe shelter. If hyperinflation were to occur and you do not own your home, or you rent, you should have a plan in place to get to a relatives house, preferably relatives with several acres of land. If you do not own your dwelling you risk being kicked out from an inability to pay increased rates. You will want to have family you can stay with in the event of this, and the more remote your relatives are the better...as unfortunately there may be a lot of new homeless persons that do not have family to turn to looking for shelter.
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Compile all your important documents and stash some cash. If you do have to leave suddenly, to go to a relatives, you will want to secure all your important documents, valuables, and some cash in one place. That way you can get up and go in a hurry if you need to. Do not forget to include a first aid kit in this stash, especially if you have kids!
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Protect your savings. Hyperinflation threatens to make the US dollar worthless, so consider converting your savings to:
- Gold/Silver: international standard of wealth, maintains its worth through troubled times
- Swiss Francs: all Swiss Francs are backed by gold, and Switzerland has never been invaded throughout history! So this is a safe bet for a secure place to stash your savings through a depression. Also opening Swiss bank account is easier than you think and not only for the super rich, as movies and TV would have you believe. -
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Buy the necessities. If hyperinflation were to occur, the cost of basic goods would sky rocket, leaving the unprepared without food. Buy enough canned goods, and other non - perishables to sustain your entire family for a good while.
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Also, and this is very important, buy seeds of edible plants that flourish in your local area. No one really knows how long hyperinflation could last, and an extensive vegetable garden could really help you in times of need.
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Prepare, and know you have done everything you can to prepare...and then do not worry obsessively and hope for the best!
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Comments
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Swiss Francs are now tied to the Euro, NOT backed by gold!
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I hope this doesn't happen.. but Friends be forewarned.. how to protect yourself in hyperinflation.
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love u Michel! How to create a fear where no basis exists. Like "How to prepare when the super-volcanoes reappear!" Err... sure, there's a 'risk', but, err, like, the last major super-v thing was kinda 60 million years ago. Now, into your article, perhaps include risk = consequnece vs likelihood. Then it may make just a little bit more liveable. You do have far more likely risk of death by road accident than hyper-inflation rendering you homeless. But it don't stop you going out on the streets, nor lobbying for fewer cars. Keep up the spirit - we neeed you;-).
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MyJB
Mar 21, 2009
This is a supportive article that gives us hope that we can weather the storm of recession. Thanks for the tips on how we can make it through this. 5*
