OK, we are having high inflation. What now?

There is inflation of food, at least. I’ve written a fair bit about this in the last month or so. This is now being reflected in the press. The nominal inflation rate is 5% in the USA and 3% here, but the real rate is higher. This is reflected here in house prices. Houses are not gaining that much more value: they are fairly inflated around NZ. But the dollar is losing value in lockstep with the kiwi dollar.

What am I doing?

Not much.
– I have moved my pension funds into a conservative position, but I am within a few years of retirement, so I needed to that anyway.
– We planned to renovate Casa Kea when we got it and we will have that finished, God willing, by September. Most of the big things are bought.
– We are avoiding debt.
– I am revising how I work so I can continue to sustain this, God willing, until I’m 70.

That’s it. Son two mines some kind of cyber currency when he is not gaming, because it pays his power bill. But what else to do? Nikolai Vladivostok says the main thing now is to hold onto your plan and courage and let things average out. He’s referring to hot stocks or the bitcoin, where people are piling into it.

This is called FOMO (Fear of Missing Out). If everyone online is boasting about how they made a killing on bitcoin, for example, the natural human impulse is to go buy bitcoin so that we, too, can make a killing – only to find that the easy money has already been made.
This is not a recommendation against bitcoin. Rather, it is a general warning to avoid chasing after yesterday’s winners, whatever they were.
Unless you are highly competent, neither should you go chasing after tomorrow’s winners. The best bet is to diversify and let the future take care of itself.

I don’t: I don’t have a graphics card in my main machine. Intel processors work well in linux, and are able to run GIMP and Darktable. A graphics card is overkill.

Peter Grant is prepping. He lives in Texas, where having a cellar full of food makes sense. We find that we throw out food we don’t eat fast: last time we were up in Central we had tins (expiry date 2014) that had exploded. But we live in an agricultural area and are able to pay for what we need.

He’s also selling things he does not need. He has some silver. Your mileage will vary here. Silver and gold are not yet means of exchange. locally: that may change.

I’ve been warning for years (to the displeasure of some of my readers) about what’s coming, and – as we’ve seen over the past few months – it’s finally arriving as we speak. You don’t have to believe me; you can just go down to the supermarket, or the gas station, or the auto dealer, and compare prices today to what they were at the beginning of this year.

I’m worried enough about our prospects that I’m now actively seeking to protect our family against inflation as far as possible. I’m going to keep a cash reserve, because it’s always useful, but apart from that I’m going to invest any spare cash in building up reserves of things I know we’re going to need and use in future – food, laundry detergent, medications, etc. If I buy them now, I don’t have to buy as much of them in future; and I can get them at current prices, rather than at nosebleed-level inflated prices when my income won’t have risen to match cost increases.

I’m also going to try to “inflation-proof” our reserves (apart from our essential store of cash) as far as possible. I’ll be looking for a store of value rather than an investment (they aren’t the same thing). For example, the one-ounce silver coins I bought in 2015 have appreciated in value by well over 50% today. If I’d kept the dollars I used to buy them then, those dollars’ purchasing power would be over 50% less today than it was then (in terms of real inflation, not the flawed, manipulated official rate of inflation). In other words, that 2015 purchase has kept pace with inflation. I can get 2021 dollars for it today that will approximately equal (in purchasing power) the dollars I used to buy it six years ago. Even if I can only afford to buy one silver coin at a time, I hope that what I buy today will also hold its value and its purchasing power into the future.

I think stores of value like that will become very, very important in future.

Now if you really want to be scared: consider this — money is now electronic, It ain’t gold or gold certificates. I get paid electronically, and my favourite coffee shop won’t handle cash. But computers are vulnerable: there are backdoors carved into most OSes and (if you are smart and use Linux) the very chip has backdoors. Hackers now have generic means of taking down networks. And this makes things more vulnerable..

But in this case, if you’re President of an increasingly weak government over an increasingly fracturing population, what do you do? Anything you can in order to keep control, even if it means building in dangerous backdoors to critical products.

Which brings us back to money.

Money is essential to society as it is now configured. A breakdown of the electronic systems that control the flow of money would, at minimum, bring utter chaos. Matt Bracken famously asked this question nearly a decade ago: “What if a cascading economic crisis, even a temporary one, leads to millions of EBT (electronic benefit transfer) cards flashing nothing but ERROR?”

We saw what three days without gasoline shipments did on the East Coast. That would be nothing compared to what we’d see if the money system broke down.

We have a stash of cash at home. The coins are very useful right now, as the laundry is out of action, so we are using laundromats. I need to start carrying some small bills, Because when the computers go down you can revert to cash and paper ledgers.

If you still have them, and if they are still legal.

What else could happen? Well, we could start using a coin as currency. Venezuela as moved its currenty to the bitcoin, and there isa barter blockchain coin being run out of Porirua. Nikolai, again

A have a half-baked idea. Maybe quarter-baked.

The trouble with cryptocurrencies is that few are actually being used as currency. Instead they’re being used for speculation. Transactions that are made, are often transferred immediately back into fiat.

The original inspiration for bitcoin is yet to be realized – unimpeded trade across borders using a stable currency subject to no government control or manipulation.

Perhaps we could get things moving by making a gentlemen’s agreement to use a particular coin or token for trade within the dissident sphere.

The small sums of money that change hands here are mostly for books, subscriptions and small donations, and much of it is used by the receivers to purchase books and subscriptions from others in the sphere.

What if we agree upon a single coin that we all try to use when transacting with each other, disregarding (to a reasonable extent) its fiat value?

Yes, arbitrage would be possible, but good faith also exists. I’d be prepared, for example, to offer my books for a certain number of tokens even when this would be less than the USD equivalent on the day, on the understanding I could use those tokens to purchase books or subscriptions from others on the same terms.

Utopian perhaps, but if we’re talking small amounts, not wildly so.

My suggestions?

  1. Keep sensible rules going. Save, keep out of debt, and don’t gamble on hyperinflation.
  2. Buy for cash, not credit, but if you need it, get it early. This means you will have to prioritize things.
  3. Expect medical costs to increase and the state system to be emergencies only. So double your emergency savings.
  4. Use tax appropriate long term saving: Kiwisaver in NZ, The various pension rules elsewhere.
  5. Semper gumby. Keep some cash as in banknotes. Have some other forms of value. Support local initiatives.
  6. In tough times, you need family. Your kids are your wealth. Invest in them: support them.

And mistrust the official narrative. To quote Adam.

The absolute number one sign that you should have children is the clear fact that the system makes it so hard for us to have them. From abortion on demand, to contraception and allowed open fornication, to the dissolution of marriage, to the fueled and funded war between the sexes, to the family courts, and to open propaganda that white people are selfish if they breed, the system is doing everything in its power to ensure that we don’t have offspring.

It seems to me, when objectively considering this information, that one of the very best ways today to fight against the globohomo overlords is to do exactly what they don’t want us to do. To have kids and to raise them outside the system. Yes, this is hard. They have deliberately made it so. But the future belongs to those that show up for it, and showing up means having kids. If this is too hard for you, too risky for you, then so be it. It was hard and risky for my great great grandfather to sail a cargo ship up and down the east coast of Australia. But he did it, and here I am.

Thanks to this week’s discussion it is now very clear to me how important this is. So I thank all of you for that clarity. This doesn’t mean that I will ever have children. But understanding why the system is so against us in this way is more than half the battle. Information is power. God bless you all.

The storm is coming, and at the end of it I don’t think we will have a social welfare system. Because we won’t have an economy that can support that. The poor and frail will rely on their family, the church, and charities.

Plan accordingly, and above all plan.

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