Survival is no different, the only difference is that the items that you are purchasing now will be used at a latter date and time. It is best to purchase them now when they are plentiful and the prices are relatively inexpensive. When inflation picks up more than it has already, you will be happy that you were able to attain certain survival gear for the price you did.
Inflation? Why? In the 2008 financial crises, the banks and other major companies like insurance giant AIG were going down and possibly into bankruptcy. The banks wanted to get bailed out of their bad investments into mortgage back securities as people could not make payments on their homes and foreclosures were happening everywhere.
The federal reserve initiated the TARP program (Troubled Assets Relief Program) in which they 'printed' up 787 billion and gave the money to the banks and other companies (some of it was 'lost'). Then in August 2010, the economy was still not picking up (stock market was going down) so the Obama administration and the federal reserve initiated another bail out program called Quantitative Easing 2 or QE2.
These bailout programs are debasing the US Dollar and can be seen in the price of energy and food. Everyone that goes grocery shopping sees this. It also costs more to fill up you gas tank compared to a few years ago. That is because the US Dollar and most currencies around the world are being 'debased' or counterfeited by their governments. They can do this legally and take care of their banker friends, but you or I will go directly to jail for this type of action.
You just need to look at the price of Gold over the past 10 years to see inflation. It is a 'hard asset' and cannot be counterfeited or debased. It has been a monetary asset for thousands of years and is seen as currency in every country around the world.
Here are some facts that add up to economic uncertanty going forward:
- Unemployment over 9%
- Unstable residential real estate market
- Foreclosures at a record high
- High vacancy rates in the commercial real estate market.
- Small businesses closing (look around at the local strip mall)
- Cost of food and energy going up.
- Higher taxes (coming in 2013 after the 2012 election)
If you hear that the government needs to do another 'stimulus' type of program where they need another 600, 700, 800 billion to get the economy going (like Obama American Jobs Recovery Act of 477 billion), inflation is sure to go up and the overall economy will get worse, not better. The people that get the short-term government supplemented jobs will be fine for a few years, but everyone else will be paying more for food and energy. That takes money out of their pocket for other disposable income items like the movies, cloths, home improvement, etc...
The bottom line is that we should all be proactive and purchase survival items now instead of when everyone wants them. Thinking and being ahead of the crowd is smart thinking. When there is a rush at the stores, you'll be at home watching them on the tube.
Best of luck to us all that prepare now.
