Post SHTF Community Economies Part II
Salty’s Note: This is part two of an article that Jerry wrote for the prepping community at large, presenting some ideas about what a post SHTF community might look like and things that one might see or want to advocate if caught in such a situation. It includes tools that he has used for some of his characters in his prepping and post-apocalyptic themed novels. You can read Part 1 by clicking HERE.
The Post SHTF Community
If there is any chance or plan to bring additional people into the community that have not already set up their locations and supplied them for long term use after the disaster starts, provisions should be made to have stocks available of every items the new people might need to equip and supply them for a set period that will allow them to survive until long term renewable supplies of necessities are again available.
While many prepper communities have no intent to allow anyone not already a member of the group to join after the events start, there is a very high likelihood that some members could arrive without enough additional supplies for people they bring with them (even if that is against the rules of the group), or the community decides to bring in outside people to join the community to have necessary or wanted skill sets, equipment, supplies, or other reasons, that probably will not have what they need to survive the early stages of the event.
So one, or preferably more distributed warehouses might be constructed and stocked with appropriate supplies to provide for these people, they would be expected to provide barter and trade items, most likely labor or specialized skills, in exchange. The items could also act as a community reserve if it turns out no people are added to the community, but circumstances arise that destroys individual or group supplies and the people need help.
But after a while, though this system will most likely continue as one part of the local economy, there will come a time when some type of currency will be chosen to make commerce much easier.
The First Choice
That first choice of currency or currency equivalents will be chosen by more or less agreement among the residents of the community. It might even be based on precious metal coins from the start, whether actually used or just values set as benchmarks. But I am almost certain that unless a government reforms and begins issuing a currency of some type, gold and silver coins will become the accepted currency for many transactions, especially those that are done over a distance, are multi-part, very large, or are otherwise difficult without using a portable currency.
At some point, to facilitate the transition and acceptance of the coins, there should be a bank of some sort established, possibly as part of the trade and barter ‘store’. Again, a lone individual could do it if they already have quite a bit of PMs in usable form, or the local government could sponsor it, or people just get together and do it once the necessity becomes obvious.
Percy’s Example
In Percy’s Mission, Percy helped get the process started by providing coins and declaring that he would accept them for what he had available, and pay with them if a person was inclined. In doing so, he simply used the existing local banker and bank building, and suggested a list of equivalencies he would like to go by for various items to equal specific amounts of the precious metals. He kept it simple to make transactions easy.
One thing in the story that might or might not be warranted by a group pre-planning this, was that Percy actually deposited physical coins with the bank, and made arrangements for labor barter agreements to be converted to gold, and even to write modified checks denominated in the precious metal coins for payments, stating he would accept them as well.
Using the standard checks and adding the denomination after marking out the ‘dollars’ preprinted on the checks, signing the check, and using a thumb print as a secondary means of identification, Percy made doing things as close to possible as they are currently. A new account signature card was created for each person that wanted to keep their precious metals in a bank for safety, as well as using the other features Percy created. The card had the account number, the holder’s signature, and thumb print for reference.
The group might decide to keep it strictly a depository with drawing rights against one’s own coins, or do some other system of helping get the coins in circulation and trusted so people will use them.
Guidelines
One thing I would do, if setting up a bank, that if loans are going to be done to help out people get things they need, that strict banking guidelines be set up. No creation of credit by redeposits of loaned out coins, and a strict limit of available coins for loaning. Probably not more than ten percent. So whatever gold there is that gets deposited is all there is.
While pre-1965 circulated US 90% silver dimes, quarters, and possibly halves, along with US Mint one ounce Silver Eagles and 1/10, ¼, ½, and 1-ounce US Mint Gold Eagles would be the best available hard currency, it would be a very good idea to have several reference works on both US and international coinage, particularly pertaining to each country’s historical and bullion silver, gold, and platinum coinage, commemoratives, medallions, awards, and metals. Also any other precious metal items produced by the various governments.
Similar types of references should be on hand to help identify private mint products produced from the various precious metals. Again, from fractional ounce and gram measured wafers, to 100-ounce and 1-kilo bars, to commemoratives to 400-ounce gold delivery bars.
While the other currency coins, especially numismatic versions; and the non-currency precious metal items would not be used as currency due to the difficulty of doing conversions, and their historic value in the case of the numismatics, they can be used just like governments use gold bullion in the form of 400-ounce good delivery bars as part of their store of wealth.
Paper Money
When it comes time to issue a paper or non-PM coinage, these bullion forms of PMs can be used as backing. And, if necessary at some point, the true bullion items can be melted and coins minted for the community to use if there are not enough of the coins already in circulation. Equipment should be obtained beforehand to be able to produce the coins.
Once this goal is achieved and has proven workable and accepted by the community, commerce can begin to occur much like it does today. There would still be trades and barters, as some people would prefer them anyway. But with an accepted currency in circulation, things are much easier.
The best of all possible PAW worlds is if a group sets all of this up beforehand, to make it immediately usable to the community members after a disaster becomes apparent that it is actually a true PAW event. That includes having a trading post ready, trade goods ready, and a bank ready with precious metal coins.
But, under no circumstances activate the use of the PM coins for transactions if there is still a government in existence. It is illegal to create your own currency. And even using existing US coinage will be considered you own currency if you set values to it that are not identical to those marked on the various coins. It is too big of a risk. For true PAW situations where the infrastructure is pretty much nonexistent, there are a few items that need to be considered for long term survival. Though it is not strictly an economy issue, there are elements to it that do affect the community’s economy. That is the need for certain staple food items, and a few other non-food items.
Staple Foods
First and foremost is salt. It would behoove a community to make prior plans on where and how they will obtain a continuing supply of salt. It might include agreements with producers (not just suppliers) of salt, especially small scale operations, to provide the community with salt if it is clear they would likely survive a disaster and be able to continue to produce salt. This may be very difficult to do for some time until a regional economy develops and such necessities trigger production again.
An alternative is to go ahead and scope out sources of salt that would not be too difficult for the community to access and produce their own salt. There are actually several places around the country that have some type of salt deposit that can be mined without too much trouble. And if there is a source for salty water in the area, salt can always be obtained by evaporation.
Another major need is sugar. Probably the best solution to this is to grow sugar beets and produce your own, if possible. Or even sugar cane if the community is in an area where it can be grown.
But if this is not feasible for some reason, provisions as for the salt should be planned for and set up. Sugar cannot be mined, but if a small producer can be found and either arrangements made to get sugar from them in the PAW, that would be good. If it is not likely they would survive or be able to operate, then making plans to use the resource yourself every few years to obtain large amounts of sugar at a time is wise. Although it is in no way a necessity, people do have their habits and addictions. Like sugar, tobacco can be grown and processed in many places, especially if the community has several large green houses. I would not try to produce large amounts, but having at least some tobacco and the means to process it and turn it into pipe tobacco and cigars could be a very good way to get some high end trade goods.
Spices, Coffee, Tea and More
Spices are another difficult problem. Most come from outside the US. And stocking enough for truly long term situations is difficult. I would suggest a community do everything they can to cultivate someone that would have the means for travelling the world to obtain spices and bring them back safely to the community for their own use, and to use for regional barter and trade for the advantage of the community.
The other alternative, which is probably more practical, is to have specialty green houses to grow the various critical herbs and spices the community needs and wants. If the production is high enough, the products would be great for outside barter and trade, but might have to be restricted for community use.
Three like items are coffee, tea, and chocolate. Very little is produced in the US. If trade agreements can be set up the same way with the spices, then getting them would be great. But, again, at least in the mid stages of the PAW, growing your own would probably be easiest. Like the herbs and spices, having green houses with appropriate climate control will allow the community to grow their own limited amounts. Again, they would be luxury trade goods for the community, with outside trade only if there is excess production.
Though probably out of the scope of a small community with no access to the oceans, international trade transportation outside of North, Central, and South America might not need to be dealt with, but land based, and even some forms of air based local and regional transportation of goods should be planned for to facilitate the movement of goods into and out of the community when the goods become available.
Going Postal
Another subject only related to a community’s economy is postal services. The ability to reliably transfer written documents from one area to another to facilitate commerce will eventually become necessary. Having a highly flexible plan to start up some form of postal service in the PAW will make this much easier, and far quicker to implement that trying to create one when it is already desperately needed.
The same for other types of long range communications apply, such as radio and telegraph networks.
Any of these special situations could be community run, or be a PAW business for one or more of the community residents.
A couple of much easier to handle needs for the community that impact the economy are firewood and other fuels. Either as a community project or an individual business, the growing of a group of large coppicing firewood orchards would produce a steady source of firewood for community use and outside barter and trade. Not difficult to do, but it would need to be started immediately.
Likewise biodiesel, methane, and fuel alcohol production. If a group of large Yellowhorn tree orchards are planted now, they would be available to provide oil for biodiesel production without having to plant oil crops every year. Production equipment can be obtained and stored, as well as the chemicals needed for biodiesel production. Large quantities can be stored, but provisions need to be made to obtain more later, as for salt and sugar.
If the community waste system is set up to get the waste to the methane generators, as well as all animal waste, enough methane could probably be produced to run the biodiesel operation and the stills. This may or may not be practical for the community, but the biodiesel option should be considered.
Just my opinion.
Jerry D Young
Jerry D Young
About the author: Jerry D Young is an Author, Prepper, Consultant, Philosopher who resides in Nevada. He has written over 100 books, many of which are available at this link:
“I have been a prepper for more than 50 years. I believe that the Boy Scouts and Girl Scouts have had it right for decades…”Be Prepared.” Unfortunately, we, as a country seem to have gotten away from that philosophy. There has been a disconnect from the “Old Ways so profound, some people don’t really understand where their food comes from.
That’s not a problem until the “System” fails. Be it from a hurricane, earthquake, tornado, flood or even a closed road or train route. The system is designed to get JUST what is needed to the stores JUST when it’s needed. So if the “System” fails, then the things we need…the things we believe will be there aren’t. That’s when being a prepper makes sense. Being able to be self-sufficient for the the time needed until the “System” recovers…regardless of how long that takes.
That’s why so many of my books incorporate the theme of “Being prepared.” Hope you enjoy them!”