Thursday, May 23, 2013

Cash is King

We recently had some power outages in my area and I ran to the local auto parts store to pick up some starting fluid to try to get my generator going. Yes, total fail there- both not having my generator in good and not having starting fluid on hand.
But anyway, the power was out at the auto parts store and they had a sign displayed:

They were writing tickets by hand and couldn't take credit cards because their computers were down. Well, not all their computers, they had one register up, running off a big truck battery, to look up prices. They could sell you anything in the store providing you had the cash for it. No cash, no sale.

In a localized power outage it's not a big deal, you drive to the next locality or town. But in a more global power outage, like a EMP strike, a power grid hack or failure, a big earthquake that knocks out infrastructure or civil unrest the area affected could be widespread. That's when you really need to have cash on hand if you want to purchase any goods or services. Waiting until there is a power outage is too late.  If it's a serious financial collapse, perhaps having some silver coins on hand would be a good idea as well. If people lose faith in paper money they'll likely still place value on hard currency like silver coins. For a few days anyway.  If it's something that will affect currency stability for years, people will quickly lose their faith in paper currency, then precious metals.  An item is only worth what someone is willing to offer for it, and a man with no food or water is unlikely to want anything but.

Stay safe out there!

1 comment:

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