Gary North

Feb. 19, 2009

In times of economic turmoil, unexpected things happen. People lose their jobs without warning. Investments fall to zero value. Plans go up in smoke.

For most unexpected disasters, having currency in reserve is a good idea. If you have $1,000 in currency, you have a cushion.

If there were a panic run at Wal-Mart and Dollar General, you might not be able to spend those bills. For such an occurrence, you would need a well-stocked pantry. If you had a month's supply of food and dry goods (remember that phrase?), you could remain calm. You would not feel the same degree of panic as someone with three days' worth.

In a crisis, a level head is a major asset.

A freezer full of food is also a good idea. But what if the power were cut off for two weeks? This could happen.

If prices are skyrocketing because of mass inflation, a full pantry will be a good investment. Eat and replenish. Rotate. Get a jump on the inflation.

If prices are falling, then use your appreciating money to stock up even more. Look for sales. The goal here is to prepare for the inevitable inflation, when the Federal Reserve pumps in even more fiat money.

Be realistic. If there were a complete collapse of the banks, all conventional commerce would cease. No trucking companies would ship goods into cities. You could buy gasoline only for currency. Gasoline stations would run out in hours. They would not be re-supplied.

If banks went down for a month, there would be panic in all cities. Violence would increase, maybe riots. Martial law would be declared. At that point, city dwellers would be at the mercy of the gangs, the military, and God.

If you expect that scenario, make plans now to move to a defendable rural area. Get out before the crisis hits. Make friends with your neighbors.

If banks were to shut down for three months, tens of millions of urban dwellers would die, all over the world. This scenario is conceivable, but it does not pay to worry about it. You would not survive unless you had made the break with urban life.

Could this happen? Yes. But the odds are remote.

It's wise to prepare against unexpected major set-backs. Currency and a stocked pantry are the best hedges for most people. Geography is the best hedge, but it is not an option for most people.

Deal realistically now with long-shot disruptions. Procrastination is foolish.

Some people refuse to plan because they are in denial. They think if they make plans, they are admitting that bad things could happen to them. Yet they buy other kinds of insurance. Why not $1,000 in currency and a stocked pantry?

I wish every church and every service club in the country would promote this. Isn't it better to take action in advance than to beg for help later?

How much help can you give if you don't have food on your table?

You need cushions. Buy them when they are cheap. They are cheap because hardly anyone buys them. If everyone tried at once, the panic would occur. The solution is education and action. This message requires time to get out.

Fact: this message will never get out to everyone. I think it will not get out to more than 20%. Maybe 5% will take action -- probably less. We should know this. In Gulf Coast cities threatened by a hurricane, all residents are never prepared. They clean the stores' shelves of food, bottled water, and batteries on the final day. (The portable generators are already gone.) This is stupid, right? Yet it happens every time. This is human nature. You should work to overcome yours.

This article is open to the public. I hope it gets wide circulatoon. I hope Web surfers find it. We need additional realistic people who will be in a position to help rather than in need of help.

If you have extra money, offer to pay to stock the pantries of your adult children. They need cushions, too.

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