What Can You Sell Tomorrow To Buy Groceries?
In Weimar Germany in 1922-23 the German Mark was worthless for buying food.
However, the Deutsche Mark (gold coin) could still buy food.
In Cuba in 1959 Gold coins could buy a meal, one meal.
In Crimea, the banks were closed, and no one could get money out to buy groceries.
Soooo, what do you have right now, that you could sell, to buy groceries?
Definition of an Asset
With these questions starting off this blog, an asset would be defined as something you can trade for food.
Right now, that is bank credit, or something convertible to bank credit.
Right now, the banks are open and your credit cards work.
Right now, stock and bonds, and precious metals can easily be converted into bank credit.
But, lets say that the banks close. What then?
What do you have that you can trade for food?
What do you have that you can trade for cash?
What will the grocery store accept?
The problem is that we are too used to credit cards, and if not that, cash.
We do not have much in the way of barter, and if the coin shop doesn't have any cash, you aren't selling your gold.
And if the banks are closed, stocks and bonds are just imaginary pieces of paper.
(At least Weimar Marks were paper, and you could burn them for heat)
Which things are assets?
Of course, cash, the printed paper stuff, will be the #1 asset. Not money in the bank, but paper in your hand. To many people are programmed to take it, so for the first moment after the banks close, cash will be king.
And, of course, right up there with cash is food. Food will put food on the table!
Now, what else do got that you can sell?
Those Jet-skis on the trailer? The dirt bikes? Toy haulers? Those may sell if someone has cash. But they will most likely sell at fire-sale prices.
There is almost nothing that will sell for what you bought it for. The only things that will are necessities.
If things have gotten "fiery but mostly peaceful" bullets will be a good thing to use for barter. Guns will sell easily.
But, truly, almost nothing bought from the big box store will sell. They were trash when you bought them, they are still trash.
I hope the time is short
It usually is. The time between one thing being used as "cash" and the next thing being used as "cash", is short by necessity. People need to buy food.
During the great depression, people used wooden nickels. They actually made coins out of wood and used them as cash. (because there wasn't enough money floating around to serve as cash)
These are all rumors, but it looks like The US Treasury is getting set to replace the FRN (Federal Reserve Note) with a commodity backed dollar. I hope the rumor is true, however, there may still be a time when the banks close, and the new dollars are not available.
All the things i have said apply to the Euro too. Except i haven't heard of any rumors about a new Euro.
For this coming time, i really suggest you stock pile some cash. Paper, in your hand. Cash will be king. (for a while)
Do not pay your rent with these, that will just be throwing away money. (giving it to the bank, that just closed the doors on giving you your money)
I also suggest you have a month of food stored up.
Food is the number one thing that you would buy with your stored dollars.
So, buy it now, when it is cheap and easy to get.
And, if none of the things happen, then you can just simply eat it.