(Birch Gold via Alt-Market)—Historically speaking, inflation/stagflation has always been a disastrous affair. One is hard pressed to find any legitimate examples of a country that experienced an aggressive inflationary event that came out better for it. A rare scenario would be one in which a nation inflates to fund a war that they then win, but usually negative consequences still happen later down the road.
The problem is that the effects of inflation can be subtle and far reaching, quietly creeping up on a population until suddenly there’s a tidal wave of societal crises. In the US (and much of the western world) we are already witnessing elements of inflationary disaster; there’s a good reason why around 60% of Americans now have a pessimistic view of the future, with a majority of people saying life is worse for them today than it was in the past.
These kinds of dark sentiments usually coincide with inflationary or deflationary pressures. Inflation in particular can be devastating because it represents an ever expanding hidden tax on the life of each citizen. Not only that, but the cure is often worse than the disease, with central banks instituting interest rate hikes that continue longer than most people expect. Eventually they lead to an engineered deflationary kick in the gut for the economy. For a time, prices will remain high on an array of necessities while wages stagnate, consumer demand shrinks and businesses go bankrupt as borrowing becomes impossible.
A system might be able to absorb this shock as long as it is not burdened with immense debt. In the case of the US, we are HEAVILY burdened with over $33 trillion in national debt (officially) and over $17 trillion in consumer debt. The damage from stagflation and the central bank response will be greatly amplified by this.
So what should we expect when things go truly bad?
Widespread Labor Strikes
Labor strikes tend to occur in inflationary environments because, at least initially, demand for labor is high, giving labor more leverage against business owners. When people know they can easily jump into another job tomorrow the temptation is to leave their current job at the drop of a hat today.
Strikes were a common crisis in Weimar, Germany and Yugoslavia among other nations, in some cases because of legitimate labor concerns and in other cases because of communist provocateurs. The stagflation of the 1970s led to what is known as the “decade of strikes” in the US, with labor seeking higher wages to offset rising prices. The strikes sometimes resulted in better wages, which then in turn only lead to even higher prices as production shrinks and the costs are transferred to the consumer.
Wages are stagnant in the US today, even after the minimum wage unofficially doubled due to labor shortages. Labor demand is high (for now), but the difference in our era compared to previous inflation events is that the vast majority of labor is focused on superfluous markets. It’s not as if manufacturing is a major component of the US economy anymore. Rather, most employment is in the service sector.
No one really cares if McDonalds workers or Walmart workers or Hollywood writers go on strike. This does little to affect their daily lives. What it does do, though, is wear down the business sector over time until a portion of employers eventually downsize operations. If you have enough strikes and businesses can’t find workers in certain regions, they will close up shop and cut their losses. There were multiple incentives for major manufacturers to leave the US for places like China in the 1970s and 1980s, but the constant union strikes during that period played a large part in the decision.
Today, you will have retail and food deserts; places where no businesses will dare set down roots because they can’t keep their stores staffed. In the end, the jobs disappear entirely.
Rising Crime And Government Lies
Speaking of retail deserts, spiking crime rates are another factor that drives employers away from certain neighborhoods and cities.
Obviously this is a situation we are seeing play out in the past couple of years, but the interesting thing is the level of disinformation and denial that public officials have displayed in response. There has been a conspiracy among certain state and local governments (Democrats) and the corporate media to dismiss or hide the rising crime problem in the US. The most important aspect of this has been the oddly timed overhaul for the process US cities use to report crime stats to the FBI and to the public.
It’s just a coincidence I’m sure, but starting around the beginning of the covid pandemic there was a shift in procedures for criminal data reporting within the federal government. That change has allowed a number of cities to withhold complete crime stats until the new system is finished; this means that some cities will not be reporting reliable stats until 2024-2025.
So, when a leftist journalist says “Gee, conservatives keep complaining about rising crime in San Francisco, but crime is actually going down…” this is a lie. Cities like San Francisco are simply not required to provide full criminal reports for another year.
The crime rate is not only a symptom of high prices. That is a part of it, but the atmosphere of chaos that surrounds inflation also acts as a kind of signal to the mentally unstable and morally corrupt. Bad people will slither out of the woodwork because they view the instability as good cover for their criminal activities. With enough crime overwhelming police, a larger percentage of miscreants are likely to escape scrutiny and prosecution.
More Looting
Again, this is happening right now, but it is generally limited to short bursts in compact urban settings. As inflationary heat boils over, looting will become a daily occurrence and it will move away from retail areas into residential and suburban areas.
The fascinating thing about looting these days is that if you have one man stealing from a store, he is considered a criminal. If you have a group of people stealing from a store, suddenly they become “activists” that are fulfilling their “right to reparations.” There is a political weaponization of looters going on, usually on the side of the far-left, in the midst of inflation. The looters are not looting because prices are higher and they need the resources, they are looting because inflation gives them an excuse to loot and political elements are encouraging them to do so.
Population Migrations
Inflationary effects can move awkwardly through an economy, with some places far more damaged than others depending on how local governments respond. The worst governments will react with higher taxes and red tape in order to offset falling revenues in other areas. They will also reduce public services in order to save money, and this includes reductions in police funding even in the face of higher crime.
Don’t wait for a stock market crash, dedollarization, or CBDCs before securing your retirement with physical precious metals. Genesis Gold Group can help.
As people realize they’re living in a dead zone that is draining their bank accounts dry and giving them nothing back, they will try to leave if they can. In the US, people have migrated by the millions away from blue states in the past few years, but this was more to do with them escaping covid mandates and lockdowns than escaping economic malaise. The next wave of migrations will happen because of financial decline (as well as the crime that comes with it).
This happens during most economic crisis events. It was common during the Great Depression to see Americans moving around like nomads to places they thought had more work and more prosperity. Men would leave their families for jobs across the country so they could send money back home. The homeless spread out from urban areas into the countryside to beg for food from farmers.
During inflation, the cost of relocation can be debilitating. There will come a point when moving will be impossible. Until then there will be a swell of populations flowing like water from one place to the next seeking relief from the storm. Expect to see nomadic cultures return to the US with RV caravans, tiny home meccas, tent cities and Hoovervilles (now called Bidenvilles).
Balkanization
In the former Yugoslavia, economic disaster accelerated existing social and political divisions to the point of national breakup. These kinds of conditions might be a ways down the road for the US, or, they might be a lot closer than you think. In our case, the divisions will be between the people that want to continue going down the path that is taking us to oblivion, and the people who want to stop and reverse course.
It might seem like insanity, but a large part of the American populace still thinks the direction we are going is beneficial. They think the destruction of western culture is part of the greater good, that economic calamity is a means to an end and that they will be largely unaffected. There are also people that are just plain stupid and don’t realize that they’re supporting policies which will end up biting them in the posterior.
Inflation creates chaos, but it can also bring clarity. That which is truly important moves to the forefront of the public consciousness. The depraved rise to the surface of the water like so much putrid ocean froth, and people figure out quickly who they want to live with and who they want to live without. Entire subcultures will form and separate to survive and thrive while other groups will try to stop them. Conflict is probably inevitable (as it was in Yugoslavia) but the point remains: Inflationary crisis has the ability to change everything.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.