PrepperNomics 107: An Overview

PrepperNomics 107 is a series that we’ve been running, written on a regular basis by our economics guru Paranoid Prepper. We called it 107 because his concepts area a bit more advanced than the 101 level would indicate. He’s covered a lot of topics so I thought I would take this opportunity to showcase what he’s done so far, to give you a good chance to catch up on any of the articles in the series you may have missed.

Salty

PrepperNomics 107

The PrepperNomics Basics – Evaluating Collapse Scenarios:

PrepperNomics 107: The Markets Are Falling! The Markets Are Falling! – Beans, Bullets, Bandages & You

I hate giving stock market advice, but in the past couple weeks I have heard some really stupid, apocalyptic, reactions to the recent market gyrations.  So many people want there to be something wrong, that trying to be rational is difficult.

PrepperNomics 107: Examining Economic Collapse – Beans, Bullets, Bandages & You

One of the themes that constantly comes up on prepper forums is the likelihood of “Economic Collapse”.  This seems to be viewed as almost inevitable by many preppers, due to the handling of the US economy by the government, or “banksters”, or aliens from Pluto, and implies a complete societal breakdown with riots, marauding hordes, and bankers being hung from lampposts (not recommended if you ever want a loan in the future).

PrepperNomics 107:  Derivatives are going to destroy the World!! (Or, Not) – Beans, Bullets, Bandages & You

We’ve all seen posts on forums and other references talking about how huge the Derivatives Market is and how supposedly dangerous it is.  The amazing thing to me is the folks posting, clearly don’t know what a derivative is.  Despite that impediment, they have no problem concluding the derivatives are all going to go bad at the same time, bringing destruction to all of us.  Usually, the folks trying to scare you into doing something are trying to sell you gold, or their book on how to avoid the next financial crisis.

PrepperNomics 107:  What Preppers Need To Know About Inflation – Beans, Bullets, Bandages & You

The typical layman’s understanding of inflation is simply more money, chasing the same or fewer goods, resulting in rising prices.  There is an assumption behind this however, “all other things being equal”.  Unfortunately, things are not likely to be equal, and it is important to understand some of those “other things” in order to understand inflation, or deflation which is the term for falling prices.

PrepperNomics 107: Why do prices fluctuate so wildly? – Beans, Bullets, Bandages & You

Today I would like to discuss why prices go up and down, using our favorite market, the gun and ammo market, as an example.  When prices are stable, we are in “equilibrium”.  Suppliers are able to service existing demand without having a lot of leftover capacity.  Customers are happy.  Suppliers are happy.  Everything feels right.  We have a balance between supply and demand.  Yin and Yang are in harmony.

Banking, Currency, Wealth & Barter PrepperNomics:

PrepperNomics 107:  Understanding The Money Multiplier vs. Fractional Reserve Banking For Preppers – Beans, Bullets, Bandages & You

Have you ever wondered what banks do with the money you deposit?  They keep a portion of it on hand to service folks who need to make withdrawals, but the bulk of it is loaned out.  If you take a loan for a house, a car, a business, or a credit card, the source for the money for that loan…

PrepperNomics 107:  Bartering in the Post-Apocalyptic World – Beans, Bullets, Bandages & You

Barter makes sense in the absence of a functioning currency. Currently we have a functioning currency, but in a SHTF scenario, perhaps we won’t. To most people that seems pretty remote. To not have a functioning currency, not only must the US dollar cease to function, but no other currency like the Yen or the Euro be available as a substitute.

PrepperNomics 107:  Examining Precious Metals For If The SHTF Or If It Doesn’t – Beans, Bullets, Bandages & You

The subject of precious metals comes up often in prepper circles, either because of lack of confidence in the current monetary system, or because of a belief that precious metals will reassert themselves as mediums of exchange in a post-apocalyptic world as “real” money.

International PrepperNomics: 

PrepperNomics 107:  Free Trade – Beans, Bullets, Bandages & You

Free Trade: What it would mean if China decided to sell the bonds it has accumulated.  The subject was an offshoot of our free trade negotiations with China, causing debt. The debt is a result of our ongoing trade deficits.  Solve the trade imbalance, and the debt will take care of itself. Read on for more…

PrepperNomics 107:  Understanding Chinese Holdings of US Treasuries – Beans, Bullets, Bandages & You

I briefly referred to Chinese holdings of US Treasury securities in my post on Economic Collapse. Since that time the administration has begun negotiations with China over trade. These negotiations are likely to go on for some time, but that hasn’t gotten in the way of everything from a stock market reaction to articles in the Prepper Media saying its TEOTWAWKI.

Prepping Specific PrepperNomics:

PrepperNomics 107: A Look At Mutual Assistance Groups (MAG) Contracts – Beans, Bullets, Bandages & You

I wrote previously about how I had formed a family based Mutual Assistance Group (MAG). Most preppers think of a MAG as an unrelated group that is working together before and after SHTF. In fact, some people argued that my family based MAG was not a MAG at all, despite the fact it is planned to support up to 20 people.

PrepperNomics 107:  Budgeting for Preppers – Beans, Bullets, Bandages & You

In an earlier post on Supply Categories, I outlined the categories I use for planning and inventorying supplies. We can use those categories for preparing a Prepper Budget.