Monday, July 6, 2009

Preservation of Assets

From Sam:
you haven't said much about what the labels on the canned goods should read, My thinking, they should read, maple leaf, krugerrand, eagles, and a case of yuans.
I would love to hear your thinking on the preservation of assets.

From prairie2:
there are lots of books on how to protect your assets from society's meltdown. The problem is that they all work from a set scenario of the author's choosing. While there is always something to be gained from prudent planning there is the "best laid plans of mice and men..." factor to be dealt with.

Knowledge is the one thing that can't be taken away from you and the only real safety is in numbers. That being said you might be able to gain more friends in a real crisis if you can feed them, than if you have a safe full of Krugerrands to trade for a loaf of bread. Still, I would act prudently in regard to any assets, you can't eat paper either.

2 comments:

Jude Rene Montarsi said...

Sage advice! " That being said you might be able to gain more friends in a real crisis if you can feed them, than if you have a safe full of Krugerrands to trade for a loaf of bread. Still, I would act prudently in regard to any assets, you can't eat paper either."

Anonymous said...

I've always thought that the idea that a safe full of gold will somehow protect you in a total meltdown to be kind of silly. You can't eat gold and if it comes to a total meltdown the people that have food will know the value of it and your gold will not buy near what you hope it will. If there is a total economic meltdown the rules will change so much that none of us can imagine what it will be like. To a certain extent knowing how to hunt, fish at a subsistence level will be important but that also means being in an area where there is game and fish to be caught. Maybe you can use gold coins as fishing lures?

I'd be interested in a study of how gold has done in the various panics we have had from Howard Ruff to the present day and how you would do in paying retail for your gold coins and selling them wholesale?

Energy will be the tough one, how to provide heat and light if there is even a short term meltdown, how do you keep enough diesel or petrol (the stuff ages and goes bad) safe and usable? Don't have an answer for that one and I don't think most people do.

Food, everyone should have a good larder and water for at least a few weeks of no power. Information will be critical, a few books on subsistence living, growing things, storing things, and basic medical care might do more for you than a hundred pounds of gold.

Then comes the nasty part. If you have food and water after things fall apart someone is going to want it and want it without trading something of value for it. You will need someway to protect yourself and your loved ones and your supplies.

In someways this reminds me of a conversation I had with a B-52 crew member years ago. The short version was he didn't care that it might be a one way mission since if they did go on a nuclear mission there would be little or nothing to come back to.

I feel the adjustment is coming, I don't know when but it is closer than it was five years ago and it will be painful but it will not be the end of civilization as we know it, we will still have power, still be able to buy gas (if we can afford it), there still will be food supplies in the long run. Any interruptions will not be longer than weeks or a month or so. The real changes will be in what happens to banks, meaning our savings and retirement funds. Our houses will become a place to live not an "investment" and while painful; with work it will be better for all of us in the long run.