Becoming The Bank In TEOTWAWKI: “Everything Will Be Based On Real and Tangible Assets”
June 18th, 2014
It has happened. The event that we have all talked about for so many years has come to fruition. The banking and monetary system, after many years of bail-outs and market manipulations, has finally collapsed. Many have plans to “bug out” to the safety of their isolated retreat where they plan to hunker down and weather the financial tempest that surrounds them. I have to admit that this is probably the best short-term plan to survive, but what do you do when your supplies run out? What will the long-term solution be, until a new monetary system is established? How could someone position themselves to be part of the solution rather than waiting for the solution to come to them?
Several very knowledgeable people have discussed a great many topics regarding preparedness in case of an economic catastrophe in our country. Whether it is inflation, deflation, or stagflation, the economic impact on our currency could be severe. That is why, in tandem with all my preps, which includes a paid off, well-stocked retreat with a water filtration system, solar/wind power generators, fuel and farming gear, and all the necessary supplies, I have also positioned myself to act as an interim bank, mercantile, and co-op for day-to-day purchases, exchanges, and loans, until a new currency is established by the government.
There will probably be a period, albeit a short one (I’m guessing six months or so but maybe longer), where U.S. dollars will not be the preferred medium for exchange. I feel that some will barter directly for food with whatever goods or services they may have, but what does one do when they do not possess something that the other party covets or desires? It will be necessary for something to serve as a “store” of value.
The biggest problem, though, is that whatever is used will need to be available in several small denominations and be easily recognizable to all. People tend to gravitate towards the familiar. The closest thing to our old beloved dollar will be pre-65 coinage, recognizable .999 silver bars/coins, and our current 75/25 nickels and pre-82 pennies. Gold will also be coveted but only for larger purchase, in my opinion, as even a gram of gold will far exceed the purchase price of most goods needed for day-to-day living expenses.