by Joseph | Oct 10, 2011 | Preparation, Sharing
So, What is Hyperinflation?
For years, I really didn’t fully understand much about the economy and how it worked. I just got a paycheck, deposited it into my bank, and paid my bills. When prices went up, usually I got a raise at work so I really didn’t notice too much difference with how much money I had left over each month.
Of course, that was before I felt the call to prepare, and began really grasping things that were going on. We’re still learning on the journey but, certainly there is a much-better understanding of some very important difficulties – and why we must prepare.
Over the years, I’ve heard people state they have confidence that our Government leaders will ultimately make the right decisions regarding our economy. While I certainly pray for our leaders and believe most of them serve with good intentions, I simply have lost confidence in the way “politics” is now impacting the decision making process.
It has become obvious to more-and-more people that we are heading for very perilous times. I have started discussing the need to prepare for economic collapse, and especially the potential for hyperinflation.
I will love thee, O Lord, my strength. The Lord is my rock, and my fortress, and my deliverer; my God, my strength, in whom I will trust; my buckler, and the horn of my salvation, and my high tower. Psalm 18:1-2
In order to really understand how to best prepare (and especially what we will discuss in the days ahead), you need to have a solid grasp on what hyperinflation is. In simple terms it is tied into inflation levels that are extremely high and out of control. They are well beyond the norms of inflation.
As a result of hyperinflation prices increase rapidly. This causes many of complex concerns. There are basic things we all need and those seem to what the price increases hit the hardest.
For example when you go to fill your car up at the gas station you may find that it has jumped by several cents per gallon. Sometimes those jumps are as much as ten cents per gallon overnight too. This can increase the budget in your household for fuel substantially.
We all have to eat and the cost of food continues to increase during hyperinflation too. When you buy food items at the grocery store it is going to be much more than before. Due to the increased costs of supplies it also means you can plan on paying more when you dine out.
One of the other significant areas of the budget where you will see increases are in utilities. Most of us have seen several spikes and increases in the costs of utilities over the past couple of years. It is tough due to the fact that we need water, heat, and cooling available to us. We also need electricity so we feel that we are at the mercy of such companies.
Due to hyperinflation it is very hard for many households to make ends meet. They find their costs for necessities goes up and so they have less disposable income. For those on a fixed income or low income who were just getting by it is now virtually impossible.
Households are cutting out extras and that is why so many businesses are having problems too. When a household can barely meet their required expenses they aren’t spending on items that they consider to be wants or luxuries any more.
The terminology that experts use for hyperinflation is… a period of time when the cycle of inflation continues to grow so rapidly that there isn’t any real balance in sight for it.
When you have an increase in costs that is very fast, there is no controlling it, and prices are continually increasing with large jumps you have more than inflation to deal with – it is hyperinflation. It is very unusual but it does happen and it is something that the US dollar could be heading towards.
In order for hyperinflation to be present without a doubt one of two things must occur:
- If the accumulated inflation rate of the past 3 year period is equal to or more than 100%
OR
- The accumulated rate of inflation is more than 50% over a one month period of time.
Even though there are historical standings of hyperinflation hundreds of years old, no one studied it and gave us solid information about it until 1956. A book by Phillip Cagan called “The Monetary Dynamics of Hyperinflation” was a huge release that showed people some of the reasons why it happens and to give them an understanding of the process.
A great deal of what is found in this book has been given credible backing by economic specialists. They have studied the foundations of the US dollar and the economy. They don’t argue with what Cagan offered in that very enlightening book.
However, that doesn’t mean our Nation now has all of the answers of how to prevent high inflation and hyperinflation from occurring. The good news though is that the government and all citizens have access to information that can help them to identify the signs that may indicate that hyperinflation is going to happen.
It can help use to take action that will change the course of history. Most people don’t think much about economics or the economy of the USA when things are going well. When they turn the other way though people are fun of panic over it and they are ready to place blame.
Taking responsibility for the economy is a role we all need to step into. Too often citizens feel that their hands are tied and they have to make do with what is going on. Yet they have decisions about buying commodities such as gold, reaching out for credit that is offered, and how they will handle their own finances in tough economic times.
Have Faith in God. Pray for our Leaders.
by Joseph | Oct 8, 2011 | Preparation, Sharing
“Do not fear, for I am with you; Do not anxiously look about you, for I am your God. I will strengthen you, surely I will help you, Surely I will uphold you with My righteous right hand.” Isaiah 41:10
The economic climate is something that influences each and every one of us. In the past several years the economy has been in a downward spiral that has caused numerous people to be worried about the future. Fear is widespread in the marketplace, and many individuals have lost their hope and joy. Those who have placed great trust in the government, capitalism, savings, or even their career, are now struggling to find direction.
Obviously, with the economic difficulties, there are high rates of unemployment, entrepreneurs are closing their businesses, and new company ideas are being placed on the back burner for now. Numerous people are struggling just to get by financially and a lot of families are heavily in debt. Even kids and young adults are struggling with discouragement and have doubts about their future opportunities.
The housing market has tanked, and foreclosures on an all time high. Hard-working individuals are losing their homes and families are struggling just to pay their monthly mortgages. Shelters for the homeless are over-crowded and even the non-profit charities and ministries that try to serve people are running low on money and supplies that they can offer to help.
So with all of that to deal with, now we hear financial experts share concern about inflation. Since our Country has had limited exposure with this type of financial peril, some people may not be completely aware of the difficulties presented by inflation – and especially hyper-inflation.
Now, for this article we will not get deep into simple inflation. Instead, we are talking about a financial shift so massive that we can see prices double in a very short period of time. An impact so strong that price of goods can be drastically altered in a few months, a few weeks, or in some parts of the world less than a day.
Economic studies have typically included the understanding of inflation. What the experts are stating at this point in time is that we are headed down a path that is going to take us into hyperinflation when we certainly want to get into a recession.
Some people accept that throughout history we just have to allow the economic climate to go through these cycles. Occasionally it is good and at other times it isn’t. Nonetheless, there is adequate information and facts now that shows by correctly understanding hyperinflation, what causes it, how to take action, and especially how to recover from it, the US dollar can easily be secured.
As a Nation we are fortunate that there have only been two documented times in history when hyperinflation has occurred in the Country. Yet, many analysts absolutely believe it is on our horizon so we would be wise to prepare and make adjustments to avoid it, or lessen the impact.
All of us out there have been dealing with the tough economic times. These difficult times have been an element for everybody from the top to the bottom of the financial scale. In a time of global economic values and online companies that deal all over the world it is even more significant that the value of the US dollar is maintained.
As you learn more about hyperinflation you can certainly stop feeling like you are at the mercy of the government or society to assist you in getting by. What you will certainly even realize is that numerous individuals blame the government for not being more supportive or helpful to hurting families, however the increased government assistance programs can actually be a catalyst in triggering hyperinflation instead of reducing it.
Gaining a better understanding of the dynamics might help you to diminish panic feelings about what is going on with the economic climate. It can certainly even help you to see why extending more credit, printing more cash, and even diminishing taxes aren’t solutions that can help our economic difficulties.
There are no simple solutions either to slowing inflation or stopping hyperinflation completely. Of course, there are many theories and opinions out there and there are likewise those who believe we can easily master from the mistakes of the past in terms of how the economic base of money in the USA is operating. Unfortunately, with diverse opinion, political gridlock, and global responsibilities, the responses are far from certain.
In future posts, we will continue to discuss preparation strategies and offer tips to help you navigate the difficult times. For now, a simple strategy we offer is to begin developing a long-term food storage program. If the dollar does collapse, you certainly don’t want to be paying $25 for a roll of toilet paper. Get it now, while your dollar has some value.
by Joseph | Oct 1, 2011 | Preparation, Sharing
Arise and shine for the light has come, and the glory of the Lord is risen upon thee. Isaiah 60:1
Today, we want to share a devotion we received and hope it will give you encouragement. It is time to Rise Up! It is time to set aside fear! It is time to move forward with boldness and courage!
Times are very tough, and fear is impacting in a lot of lives. We are beginning to see the challenging times that we have been preparing for. God hasn’t just prepared us to store food so we can eat during a global food shortage. We have been called for a purpose. We are to be overcomers, untouched by recession and all that we read or hear in the news. God holds our future and we are safe and secure in the palm of His hand.
It is time to step-it-up-a-notch and move to a higher place and take a higher position. When a solider has been hurt and wounded in battle, he may be slumped over and walk with a limp. However, after a time of rest and recovery, he can walk straight and stand up tall. The Lord is calling us to rise up and stand tall.
We are living in challenging times and what used to work, doesn’t work anymore. For instance, there was a time you could put ten dollars worth of gas in your car and drive all day. Those days are over and so is casual Christianity. You can’t go very far on ten dollars; it takes $80 to fill my tank and it takes more to fill my spirit. A ten minute prayer time or a ten minute time in the Word will not work.
I believe we are living in a time when we must know God and His Word like never before. You must know who you are and realize the authority God has given you as His child. You are a citizen of the Kingdom, a joint heir with Jesus Christ, and therefore you should be living by a higher standard. The kingdom of God is at hand. He has put His Word in our heart and He expects us to use His Word to speak life into dead things, and hope into hopeless people. This is a time to arise and shine for the light has come.
Encourage those who have fear. Share the Good News of a loving God who has offered His Grace and Mercy, and will never leave us or forsake us!
by Joseph | Sep 22, 2011 | Preparation, Sharing
I’ve shared on this blog, that I believe we are headed for great difficulties. It is important that we prepare for the chaos that will impact our lives.
Many who are now engaged in the “Prepper” movement, are pushing action based on fear. That fear is significantly adding to the problems, and creating all sorts of conspiracies. It seems that everywhere you go now, you can hear someone speaking about some outlandish conspiracy theory. The worst part is, the conspiracies and fear grow exponentially. The fear captures many people, destroys hope, and ultimately becomes bondage. Society becomes unstable, which obviously, will create more need for preparation.
So, with difficulties surrounding us from every side what can we do? I mean, there are wars and rumors of wars, famines, and earthquakes in various places – and that’s just the beginning. It seems that all over the planet, you hear of devastation. For many people there seems to be nowhere to turn.
I’ve often thought about the scenarios that we face, and wonder to myself : Where can I go to be safe? I’ve thought about underground, heading into seclusion, and even other Countries. The reality is, there is potential difficulty with any place you go.
Some who are reading this article will be frustrated with my ultimate resolution, but it’s the only safe place that I can offer with absolute certainty. The only place that I know of where you can have safe refuge, is in God. He will never leave us or forsake us.
“It is better to trust and take refuge in the Lord than to put confidence in man.” Psalm 118:8
God is your refuge. He is the only one who knows the answer to your present difficulties and fears. Take refuge in Him and the answer will quickly come on how you should prepare.
In the refuge of the Lord, the enemy cannot touch you, taunt you, or discourage you. You are safe under the shadow of His wings. Find the secret place every day. There you can find rest for your soul and strength to overcome the trials of these difficult days.
Psalm 112:7, “He shall not be afraid of evil tidings, his heart is firmly fixed.”
by Joseph | Sep 18, 2011 | Preparation, Sharing
Part of emergency preparedness involves having money available during the situation, and having a backup of all your financial data for when the crisis has passed. Think about how terrible it would be to survive a particularly bad situation, and then find out that all your financial information was lost. There are different steps that you can take to minimize a financial emergency when things go wrong, and to plan for your future.
Now, while there are certainly potential scenarios and risks of banking collapse and global financial meltdown, this writing will not address that level of preparedness. This post will make an assumption that current banking and legal tender remains somewhat solvent and available. We will share more on the potential of massive financial collapse in future posts.
Money is an important part of good emergency preparedness, since banks may not be open and access to funds electronically may not be available. So this means that cash may be the only form of payment accepted at stores or in other situations. If that should be the case, then you will need to have a supply of emergency cash that you can access if there is a large-scale problem. This money should include coins for pay phones and it should be hidden in a safe place in your home.
After the situation has been resolved, then the next step is fixing the problems and confusion that occurred. Your emergency preparation should have involved making backup copies of all relevant data related to your finances. On an external drive, you should regularly backup any recent transactions made online, and your credit card information. The idea here is that even if there is a massive power surge that fries your computer, followed by a power failure, once things have been restored to normal you should be able to hook your external drive to an unaffected computer and recover all your data.
Another important step to being prepared for an emergency is having financial records and important contact numbers and names of people in a safe place. In fact, this information should ideally be stored in more than one place, in the event that the first location is compromised. Safe locations could involve an external hard drive, a safety deposit box, a home safe, or some other hidden location. Once the situation has been resolved, these records can be accessed and used to make a quick transition back to normal, and they can often suffice as evidence in case the original data has been lost or damaged.
To be successful with your emergency preparedness, you need to anticipate a great deal. It is hard to predict exactly what will happen in a major crisis, but basic steps you take should involve setting aside some cash and making a backup of your financial information. So much can be lost in such a short period of time that it is well worth it to invest a bit of effort in making sure that should the worst occur, you will be more likely to walk away from it unscathed.
by Joseph | Sep 13, 2011 | Preparation, Sharing
In the difficult and turbulent times we are facing, families are changing. In many ways the change is ultimately very good. I believe it is pushing families to be more cohesive and sensitive to each other. Families are somewhat forced to draw closer together in order to work through the tough times and fears. Obviously, family congruency is an important part of the preparation process.
I have heard many stories of how my grandparents raised their children to help around the homestead. It seems to have been common practice (and necessity) that families worked together to maintain the farm – and to survive. Times were tough, and families drew on the strength of each other to get through the turmoil.
With our modern improvements and advancements in technology (such as television, internet and cell phones), family ties have been impacted. Also, there is a catastrophic falling-away from the moral principles, teachings, and values that governed our homes. The divorce epidemic in our society has destroyed the peace and stability of the family unit. Children who once had the influence of their mother and father, now were getting influenced and guided by care-givers outside the home.
As a result of our moral decline, today many adults are simply ill-prepared for the difficulties that we now face – and will become increasingly intense. The first devastating impact will occur as our economy continues to deteriorate and force us to make difficult choices for our survival. The modern family that has been flush with entertainment options and toys, will likely find new economic challenges. A growing number of families will be forced to alter their entertainment habits (out of necessity) which may actually bring families together for alternative activities.
Another factor is the growing need for families to work together on multiple-family living space. Every week, I am hearing more-and-more families are being forced to have relatives move-in with them in order to cut expenses. Adult children are returning home in order to save on expenses. Certainly, it creates some discomforts – but, it does force families to revisit their relationships and work together for survival.
The fears of the unknown, are creating stress and hardship on everyone. Parents are struggling to hold things together, and kids are wondering what will happen in the future. It’s a painful time, but… a great opportunity for families to draw closer and feel the security of their love for each other. Things are not quite as difficult when you feel like you have someone with you regardless of how tough it gets. That’s where family comes in. (more…)
