Thursday, December 23, 2010
Look, there's nothing magic about this. When you make more of something its value declines, whether that something is computers or dollars. As the dollar sinks in value investors will leave it and head for commodities which is why we're seeing oil and food already beginning to inflate. And those are just the beginning.
Assuming that you can keep your job, inflation isn't necessarily a bad thing. Any loans you have will get really cheap and if your salary goes up with inflation it will be a whole lot easier to pay them off.
The problem is that inflation will hit the things that we absolutely need to live the hardest and it will suck away any increase in income if you can't find a way to get around these necessities. Food, fuel and clothing will become incredibly expensive while house values and other assets collapse. The secret to having a chance of surviving this thing is to become as independent of the need to buy food, fuel and other essentials as possible. In other words grow it, make it and conserve it.
If you haven't started storing up food, start. If you haven't got a garden all planned out and ready to go for next spring, start. If you haven't been really working on ways to become as fuel efficient as possible, start.
How to become fuel efficient? Do you have access to wood? Get a wood stove. Learn to cook outside on a fire with dutch ovens. Build a solar hot water heater and a gravity fed shower. Learn to live without air conditioning and make sure that your house is capable of providing good ventilation by installing a whole house fan. The less you need to buy, especially of the essentials, the less inflation can affect you.
Learn to preserve food. Learn to sew. Learn to do your own repairs on just about everything. Try to divorce yourself from the things that you can't support with a way scaled back society.
Time is running short, of that I'm convinced. Even if I'm wrong I don't see the down side to learning to live more simply and more efficiently. There's something about working in closer cooperation with the seasons and the ebb and flow of time that's just...comfortable.