How to overcome and prepare for hyperinflation
The next depression will be 20 to 30 years and make the first depression look like a picnic. Hyperinflation will be the beginning and the true economic impact will take a very long time to correct. These steps will help you weather the economic storm.
Pay off your debt – As prices increase keeping up with payments will be extremely difficult. Too much debt will force you to lose your home, vehicles, and you will struggle to make ends meet. You will need all the money you make just to buy food. Avoid large homes, credit card debt, excess student loans, and new car purchases.
Buy tangible goods – While gold and silver play a role in shifting to a new currency don’t overlook things you can use in the shorterm. Barter will be popular again and having long term food storage, kerosene, medical supplies, seeds, and luxuries like toilet paper or chocolate can help you when there are shortages. In the mid term gold and silver will be very important but don’t over look the basics of daily life.
Invest in things that are inflation resistant – Invest in economic sectors that can raise their prices or adjust their value as the prices increase. Treasury Inflation-Protected Securities (TIPS), commodities (like oil and metals), and real estate are generally safe bets to overcome inflation. Make sure your loans have fixed interest rates. Expect to pay extremely high interest rates (in the 20% range) and expect to put much larger down payments down.
Strengthen the family – Family ties and local communities/churches will help those that are struggling (sorry government programs will not be there to help; think Katrina). Those on fixed income or welfare will be the hardest hit by economic problems. The traditional family unit has stood the test of time for good reason. Grandma and grandpa will be moving in and you might need to take care of your siblings too.
Sumber : google
