Sure, things on the stock market and across the economy seem bleak as the government has promised to spend $7.6 trillion dollars to prevent a 1.144 quadrillion derivatives implosion. Remember, however, that America is the land of opportunity where enterprising minds are always developing new solutions to the problems we face.

It should be well noted that none of these enterprising minds seem to be working on Wall Street, which we might as well call Wal-Mart Street with the current price of stocks, nor are these innovative minds members of Congress. Consider the following playlist of videos, Money as Debt, which shows the error of fractional reserve economics.

“Everything that is really great and inspiring is created by the individual who can labor in freedom.”
- Albert Einstein

One of the common occurrences in times of economic turmoil is the emergence of local barter economies. This allows trade to continue at a local level while business at state and national levels may be economically impaired. A good example of this may well be brought to us by two Milwaukee, Wisconsin suburbs as they will be meeting next Wednesday in order to set up a locally-based currency which can be used to barter and buy goods from local businesses.

Such barter economies tend to protect local groups of people from enduring the full extent of economic hardship related to economic downturns. This, of course, assumes that the goods needed by that barter economy can be locally produced.

With local production of needs in mind within the barter economy, in order to improve odds of success during large scale economic collapse or in the face of a rapid inflation of the dollar and other world currencies which I predict will happen so that banks can cover their deposits and governments can pay debts, a local barter economy must do two main things: Produce what it needs locally and Place the value of its currency, in the event that a local barter economy creates a local currency, in something tangible, such as gold, silver or commodities required for life. The act of local production ensures prosperity in times when shipping channels are inoperable and tying of their barter or local currency to real-world commodities helps hedge against inflation or hyper inflation of currencies, such as the Dollar which are not pegged properly to commodities and precious metals.

With all of this in mind, and in preparation for the possibility and, ever increasing likelihood of economic hardship, readers in their local communities may well wish to form neighborhood barter associations and watch groups to improve their probabilities of survival in an economic collapse. Furthermore, individuals undertaking such actions should pay keen attention to the abilities of themselves and other group members to supply needed skills and goods in the event of monetary collapse or the unavailability of shipped goods and commercially-bought services.

Certainly, I do hope that such preparations are never actually needed, if they are, one should be as prepared as possible in order to implement such an economy in short order for the protection and benefit of neighbors and friends. Similarly, if such times get tight, a network of barter economies may well be in order such that one barter economy can provide goods or services to another which lacks the ability in order to do so itself. Such basic arrangements will prove most helpful in the event of a severe economic downturn.

History shows us that many communities turned to farming and barter during the Great Depression. Should such a collapse happen again, it would be wise to be prepared. Some thoughts to consider include the following:

• In an economic collapse, energy may be hard to come by, therefore:
  • Electricity may become unreliable; you may wish to invest in solar cells to supplement energy use, or to look at natural methods of heating as well as non-electric means of baking, opening cans, etc.
  • Natural Gas and Water may also become unreliable, therefore someone if someone in your area has a well, make sure there is enough capacity for the group and be prepared to drill additional wells if needed.
  • Implementing grey water systems may also be in order so that you have water available for crops, plants and secondary uses.
  • Gas and Diesel will become difficult or impossible to find, be prepared to have alternate transportation methods at hand (bicycle, horse, etc.)
• Food and goods also become hard to find in a depression, therefore:
  • Make sure you have spare items of anything you will likely either need or need to replace.
  • Owning some land is a good idea, furthermore; make sure you have crop seeds in hand before the downturn hits, otherwise, the feed and seed stores may be sold out.
  • For goods that you commonly need, or commonly replace, be sure you have a local source of production or a barter arrangement with someone who does produce such things.
• When local governments, state governments and the federal government become bankrupt, they may no longer be able to offer effective protections of right to property and life, therefore; the ability to defend oneself becomes necessary.

While these may seem like extreme steps to take, in the event of another Great Depression, the persons having made such provisions will be well prepared to deal with the situation at hand. I certainly hope such preparations are not needed, however; If our economy does fail, don’t count on anyone else, including government, to make these provisions for you.

I fear, given our current status of economic decline, time for preparations will be limited. Talk to your friends and family, share what you know to be true, face the fears and prepare for what may come. Many will say that my tinfoil hat has slipped off, but to them, I respond with the words of General David M. Shoup:

Tags: alternate currencies, Barter Economy, gold standard, money as debt, survival preparedness, Surviving the Depression