The Fed seems to be in panic mode and it is not going to end well. I did not expect Bernanke to do QE3 because it won’t work just like the other QE’s didn’t work and we are going to see some very nasty inflation in food and energy and it was already going to be bad before the Fed’s actions of printing forever. Ever watch a smart person keep doing the same thing over and over believing this time it will be different or “this time it will work!”. I think that’s where we are with the Fed!
We can’t control the Fed but we can control how we spend and react and for the short-term (next six weeks). You should stick with whatever you had already planned to purchase. I think we should have that long on food buying. If you need any petrol based products like propane and kerosene you may want to move up your purchase in time if you can, because I think every week we are going to see rising fuel prices. Don’t sweat it if you can’t swing it with the money you have on hand and stick with your original budget. I’ts not like higher fuel or food prices are a surprise if you have been reading this blog and others!
Don’t panic by silver or gold as I suspect the PTBs will try and keep the price down by raising the margins traders must keep on hand just like they did when silver bounced up to $50.00 an oz. I’m buying an electric rototiller and not even thinking of getting any silver for at least a 2 weeks and closer to a month and I’m fairly well set on the basic day to day needs. Be ready to buy the things you will need and turn those greenbacks into a tangible good that you can use or barter/trade. This will be a great time to get some bargains as folks who did not prepare try to sell things of they don’t need for cash to get food and fuel. Ironically there is often a cash money shortage in a hyperinflation environment.
If you have plenty of grains stored you don’t need to worry about paying a $100 for a loaf bread. Because the grains or flour you have stored you got at $15.00 for 50 pounds. That’s an extreme example but if bread in the store only doubles or triples in price you can see how valuable that stored flour or grain has become in an inflationary environment. Same for every thing else you have already got put away for a rainy day.
Some people will try and game the system trying to buy up all they can on credit because debt becomes “cheap”. I don’t think that is a good idea because by the time the green backs get to you at the bottom, the dollars have lost so much value that you are stuck. Your creditors will come and take those or any items of value to re-pay your debt. If you can payoff any existing debt great, but it will probably take most of whatever dollars you get just to survive and maintain no matter how well you have prepared.
People have survived inflation and Hyperinflation before and you can survive this environment just like they did in the past. Hyper inflation usually can’t last very long, usually 2-3 years at most it burns out and people find a new form of money. You can’t afford to waste or blast off all over the place trying to get everything at once. Stay methodical and work your plan!