How Will We Survive When Money Fails?

            If you’ve read my posts here for any length of time, you know I don’t delve much into political issues or current affairs. As the late Paul Harvey used to say at the beginning of his “The Rest of the Story” broadcasts, “You already know what the news is…”


            But there are undercurrents to be aware of, and they affect our attitude and actions regarding preparedness. Many things in our world are not as they seem.


            For example, what’s our money worth? Does anybody really know? What should be our outlook on money and wealth? It takes lots more money to get by than it used to. There never seems to be enough. Money makes the world go around, as we so often hear it said.


            Are you familiar with the fractional reserve banking system? For every dollar in the bank, the bank can create ten dollars out of thin air to lend out. Plus, they draw interest on those dollars. It’s easy to create money electronically, and that’s not even considering the stock market or the murky virtual world of derivatives.


            Somewhere recently I heard a statement made that essentially says the economy went from financing capital for business to financing financial arrangements. I think in polite company it’s called “creative accounting.”


An article entitled "Our World Balances on a Sea of Debt" appeared in "The Telegraph" recently, and it’s worth noting because it’s an easy to understand primer on our money system.


The blurb at the beginning says: "The banks that control the world’s supply of money are no better than counterfeiters–-and their system of juggling debt has left the global economy teetering on the brink of ruin. Convicted fraudster Darius Guppy offers a provocative personal view."


            If you’ve read this far, you’re no doubt wondering where this is going. Simply this. If our so-called money is an illusion, why don’t we think of wealth in terms of goods or commodities? We may be wealthier than we realize.


            Granted, to get along in society today we have to play the game. You can’t buy a fast food hamburger for lunch today without forking over paper and coins or swiping a card with an electronic representation of currency. As long as there’s still faith in doing things this way, play the game as long as you can.


            But one day the shell game will be seen for what it is and we won’t be able to buy, sell, or trade as we’re accustomed to today. What will we do when money fails? Will we have no choice but to be slaves of those in power?


            As this relates to survival and preparedness, have things that are of real value. You can’t eat gold. What’s of value for you and your household? What might be of value to others?


It may be difficult to negotiate with goldif you have it, so have some silver on hand. Have plenty of food for yourself and your family, or at least have the means to get food when you need it. Have ammunition, cigarettes, coffee, liquor or other barter items. Swapping services is another matter.


            Our understanding of what is of value will change in times of trouble. For example, the bank might not think my house is worth anything, but I’m glad for a roof over my head. If I’m living in a shipping container someday, that will take on new value to me, which it wouldn’t have had before.


            As the economy has demonstrated in the last couple of years, we’re operating under a changing set of rules. How long can it go on? What’s keeping the system from collapsing right now?


The rules we’re playing by are bound to change even more. In fact, there may no longer be any rules. It’s a question of when, not if.


How prepared are you for such a time? Do you have items of real value to help you survive?



Author: John Wesley Smith

John Wesley Smith writes and podcasts from his home in Central Missouri. His goal is to help preppers as he continues along his own preparedness journey.