Historical experience indicates that economic downturns typically bring falling food prices. In the Great Depression, the value of the dollar rose and food prices crashed. In the United States, the price index for “food at home” fell from a pre-Depression peak of 48.3 in 1929 to a Depression-era low of 30.6 in 1933—a 36 percent drop. Even though mild price inflation resumed in 1934 with FDR’s abandonment of the (domestic) gold standard, food prices remained depressed below their 1920s level for the entire Depression decade.Those who held cash were therefore well-positioned to continue feeding their families even if they faced unemployment, as 25 percent of American workers did by 1933. While overall production—especially of durable and capital goods—did drop markedly during these years, the economy did by no means grind to a halt. Enough grocers, butchers, and restaurants survived to ensure ongoing, orderly food markets.A simple cash hoard thus would have sufficed for sustaining a family through episodes of hardship, with the added advantage of portability and negligible risk of sudden or massive losses in value due to inflation.
Proverbs 6:6-8King James Version (KJV)Go to the ant, thou sluggard; consider her ways, and be wise: Which having no guide, overseer, or ruler, Provideth her meat in the summer, and gathereth her food in the harvest.
In the United States, the price index for “food at home” fell from a pre-Depression peak of 48.3 in 1929 to a Depression-era low of 30.6 in 1933—a 36 percent drop. Even though mild price inflation resumed in 1934
What makes this even scarier, is that most farms are owned by big Ag, controlled by computers via satellite with one guy sitting in his kitchen controlling it all.Granted, not all, but by 2025 the majority of farmers left will be simply maintenance for the vehicles.What happens if we have a massive solar flare/EMP? Look for that three day supply at the grocery store to empty out the first day, looting the next day, pandamonium to follow.Of course that'll always happen if people panic, and with the Internet down, power off, cell towers going off line because battery backup failing.It won't be pretty.
Exactly!There are multiple steps from the ground where the food is grown to the dining room table, and a big distance between them... which is why I contend, "you can't eat gold and silver to survive".If the SHTF, and I had a big farm and two guys showed up to trade for an elevator of grain - one with a tanker truck of diesel and the other with a pile of gold bullion - it'd be an easy choice, I'll take the diesel. When there isn't anything to buy with gold, it's just "pretty to look at."It is a rather curious thing, the bigger farms might grow 3 or 4 different row crops in rotation, and that's it. A little backyard garden might have a dozen or more crops, maturing at all different times or seasons.Under the right market conditions, one can make an awful lot of money, while the other might keep you alive for months, if you stay put.But... if you need to move, and the cars/trucks don't run, a trained horse, with saddle and bridle is priceless.
Tis true, gold is burdensome in weight, and you can't eat it. If SHTF and the future for recovery is a long way off, that gold won't get you anything but hungry, while food and antibiotics do carry far more value value, as does a skill or a dozen skills.If I stumble onto someone broken down on the road and can repair their mode of transportation, I can set my price.But a pound of gold will do neither of us any good if neither of us can't fix his buggy.Sometimes the most obscure or innocuous of items may carry high value, a travel sewing kit, a toothbrush, tobacco a reloader with ammo, powder, caps and shells could put you into business, and again, you could name your price, or you could barter it off for a cow.Fuel may seem expensive now, but just imagine the price it would bring if there is none?I agree, gold and minerals won't be worth dirt if SHTF. I don't know if it'll happen in my lifetime, but I guarantee you, it will come one day.