Hyperinflation Series: Fighting Fire with Fire

Many moons ago (I think nearly 11 years) my hubby and I decided to go to Walt Disney World for a delayed honeymoon. As a part of our Land/Cruise package, we were given about $300 in the form of a gift card that we could purchase any of our food with as well as any items that the restaurants sold.  We did such a good job in budgeting the use of this card while we were there that we found ourselves still with about $100 left the night before we were to board on the cruise ship. In essence, our gift card would be useless and expired as soon as we left the park. So, my husband,

in one of his rare less-than-brilliant moments, decided that he wanted to use the leftover credit on some Cinderella steins at Cinderella’s Castle. I think it only took me a couple of years to finally donate those things to the local Salvation Army store.  My point in telling you this story is that soon, this is very similar to the position we all be in with the U.S. currency we presently hold. It’s called hyperinflation, and I firmly believe it’s in our own backyards, circling around to our front doors.

I firmly believe that if folks understood this, and they understood that their paychecks will soon not be able to purchase even the most basic essentials, I’m positive that they would start looking at ways to maximize their dollars right now, while they still DO something for them. While this may sound a bit overly dramatic, I assure you that it’s based on extensive research and experience in recognizing the looming hyperinflation that is an imminent threat to our nation right now.  Yes, I said, right now.  This shouldn’t sound like a new alarm to anyone reading this. Although I suspect we tend to block it out because we’ve been hearing it so much.  But don’t you think it would be an absolute shame to needlessly suffer simply because those who love us warned us “too much?”  How ironic is that!

As proud as I am to live in this country I believe we all have to realize that we are not the exception to the empirical rules of financial law…we cannot spend our way out of the debt that our nation is in.  IF debt was the only problem, then maybe such a move could be accomplished—but only because it was a lucky gamble. In this case though, it’s not a gamble—it’s an illicit manipulation and those who have the most to gain are definitely aware of the consequences. What does this mean? Well it means absolute bankruptcy. It means a halt to food stamps, unemployment benefits, critical municipal services, Medicare, Medicaid, and Social Security income. It means that folks who have IRA’s will all suddenly feel like they work for Enron in its last day.    It also means empty grocery stores, rationing of essentials, but even if you aren’t a part of that ostensibly elite group of manipulators, you are not left without a map.  There has NEVER been a time in history in which a nation has been able to sustain debt in excess of 15% of their Gross National Production.  Never.  The death warrant on a healthy economy has already been signed, sealed, and delivered, folks.  The only thing we can do is prepare for the consequences and I’m telling you today that using coupons is one of those ways that you can do so!

Regardless of the calories you expend at work, the numbers of hours you clock in, or the floor number of your office, you do not have any control over the value of the dollar in your paycheck.  Unless you are receiving a 13% raise every 4.3 weeks, you are not keeping up with the REAL cost of living increases.  This 13% represents an average of the increase of all of the “necessities” which we purchase on a regular basis.  So, are you in a losing game right now? Yes—BUT only if you ignore the problem.  If you take advantage of what tools that are available out there to help you combat hyperinflation, then you will make it through until the spiral death resets our economy.

First of all, let’s be clear, no one can presently cure hyperinflation of the U.S. dollar. Like I said before, we’ve already picked up the wrong end of the stick and the other end must follow. We can improve its impact, but the fact remains that there are trillions and trillions of dollars printed and in circulation. These dollars only exist to create the illusion that money is aplenty. Again, money is only worth what it can buy. And right now there are too many dollars chasing too few items to buy.  That may not ring true to those of us who never see such an abundance of dollars in our checking account. And I’m sorry to say, that’s exactly what the Federal Reserve is counting on—for you to only see things from your immediate point of view.  The uneducated have always been the most valuable tool of the maniacal. But, what we can do is get focused—not on the value of the dollar, but what that dollar can STILL do for us now.

No, coupons aren’t the answer to living during hyperinflation, but they are indeed an ideal solution for those who have the foresight to make use of them now! Seriously, if I could come to each one of your houses and speak to you for just a few moments about the importance of this tool in preparing yourselves against the disaster of hyperinflation, I would do it.  It’s that important to me. But, unfortunately, such a labor—regardless of how passionate and well-intended I may be motivated—is simply not realistic.  And so today, I try once more to get you mentally accept and act on this great tool—not to manipulate you, not because I have this pompous sense of having to be right all of the time—but seriously, because I am positive that I see things pretty clearly right now, and I KNOW that the coupons can help you and those around you very quickly, abundantly, and that they won’t be able to help for many more years. So I say, get while the getting is good! Once the financial collapse has undeniably occurred, the paper the coupons are printed on will be worth no more than the paper the currency is printed on.

Last month I was able to purchase over $950 worth of groceries and my total out of pocket was just under $204.00. How?  Well yes, coupons had a key roll in that, along with a store special.  But we should also take note that part of the reason why I can do that now is because so many products are at artificially low prices. We’ve all come to accept that there are “loss leaders” at grocery stores—you know those items which are such a ridiculously low price just to entice you into the store? Well, considering that I got three grocery carts full of stuff last month for free or cheap, I’d say that’s a whole heck of a lot of loss leaders, wouldn’t you? Just like the present rate of inflation, money printing, and national deficit, this is NOT something that can be sustained. The more I can get for “free or dirt cheap” the more the rational side of me gets a bit concerned because I know that what goes up, must come down.  When it finally hits that there are too many useless pieces of paper aka currency, chasing after too few products, the stuff is really going to hit the fan. The knee jerk reactions to this kind of a problem are price fixing and rations. When that takes place you then have a black market. No matter what, unprepared people go hungry.

So, I have a proposal for you folks.  PLEASE allow me to teach you how to effectively use coupons now, while you can.  We have a class coming up the end of this week on Saturday.  After that it will be on August 21st.  However, I’m giving everyone fair warning—the prices of all webinars are increasing in prices the first week of August, so be sure you get registered to which webinars you’d like to attend, now. Our nation's hyperinflation nightmare isn't going to pay much heed to empty excuses later.  I know, 100%, that I can help ANYONE get ready for tougher time through this completely, kick-butt coupon boot camp! it's about time that we all get a bit more serious and focused and fight fire with fire. I hope to see you there!

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Preparedness Pro's picture

You know, Al, folks like you puzzle me. Let's just say for a second that I'm wrong and don't have 15 years experience in the international finance scene; what harm does it do for people to become more independent in their food and necessity supply? Or is it that folks just have a problem with me being correct?
Perhaps if you looked at my previous articles "Hard Core Financial Preparedness" you could be a bit more educated on the reality of this scenario. Also, let me share a couple of quotes from so-called experts as well...
“We will not have any more crashes in our time.”
- John Maynard Keynes in 1927

“I see nothing in the present situation that is either menacing or warrants pessimism… I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress.”
- Andrew W. Mellon, U.S. Secretary of the Treasury, December 31, 1929

“[1930 will be] a splendid employment year.”
- U.S. Dept. of Labor, New Year’s Forecast, December 1929

“While the crash only took place six months ago, I am convinced we have now passed through the worst — and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us.”
- Herbert Hoover, President of the United States, May 1, 1930

As you can tell by the dates, these were all predictions from so-called authorities that assured us we would never repeat the mistakes of the past. So, how do you think they did?

Bottom line, you and these other sources are quite incorrect. Betting on them does not give comfort--only a delay in preparedness.

I completely agree with Kellene above. There is never a bad time to become more self sustainable. The more we count on wallstreet and the government the more complaicent we become. Its a form of control, but people are too blind or don't care to see it. To many people are addicted to the "entitlement syndrome" and those are the ones who will be up a creek without a paddle when all this comes to fruitation.

The writing is on the wall, it is your choice if you chose to read it or not.

I encourage people to become more independent, and I can’t imagine why anyone would want to tardy.

I also agree that experts can be wrong.

However, if your quotes from the 1920’s and 1930’s were meant to illustrate a connection between the Great Depression and our current economic condition, please note:

The two main factors which led to the Great Depression were over-indebtedness and deflation (Source: Irving Fisher, Econometrica, 1933).

Hyperinflation did not exist during the Depression, just as it does not exist today.

These factors are currently preventing hyperinflation:

Prior to the financial meltdown, job growth was about 1% a year. It is now it’s falling by 4.2%. Consumer spending growth (70% of our economy) averaged 1.4% a year prior to the crisis and is now shrinking at a rate of 0.7%. Bank loan growth rates were growing 9.6% before the crisis; now they are shrinking by 1.8%. China needs at least 5% annual growth just to keep up with an expanding population and can not afford to cut exports.

These factors are subject to change.

Preparedness Pro's picture

Al, even if none of these quotes were relevant to the great depression, all of the quotes made have been proven to be incorrect.

My point being that those who are in the know, also have the idea that they possess a duty to keep "us" unenlightened. Bernanke knows what's up. BP knows what's up. All of the members of the World Bank definitely knows what's up. And the media even know in many cases what's up, but have chosen to play by the rules of the informed instead of the ethics of their world. The hyperinflation information shadows them everywhere they go and they can and do spin it anyway they can--just like what you've shared with us. Whereas the rest of us have to proactively hunt it down and verify it and then put it through the "sniff test". If something smells bad, then there's a reason...and typically that reason always follows the money. I have a belief that is something is truly dog poop, no matter of Febreeze is going to change that from the organic matter that it is. My success has come by following the money and also applying a sniff test to it all. And as such, I'm very, very comfortable in the information which I've presented in this article regarding hyperinflation, and will continue to writing about it this week.

I find your assertion that hyperinflation does not exist today to be a morally repugnant statement, lacking any virtue of believability. Whether we like to believe it or not, we are in a Depression right now...not a recession. And I am willing to bet that I must be prepared for a financial collapse within any time in the next 5 years. I'm frankly surprised that it hasn't been declared as of yet.

I've had very modest success with clipping coupons for two main reasons:

First, the deals that you can find in Utah and other parts of the country are simply unavailable in my neck of the woods. They don't exist, or are very rare, and I've looked. Hard.

Second, my family simply does not eat the food that people buy with coupons! The vast majority of it is processed food or "junk" food, in my opinion. If we ate Cheerio's, I'd have it made!

So, I am really looking forward to reading this hyperinflation series, and any suggestions you have for people like me!

Preparedness Pro's picture

Madam, I've heard those exact same responses several times from folks all over the U.S. I think that the snag is that you may have an incomplete system that you're operating from. If I can help someone in a small town in rural Ohio, I'm quite positive I can help others. At present, I am electing to not eat any processed foods. This fact does not curb my ability to save at least 70% on the other items I purchase.

About 5 years ago, Elder Dallin H Oaks came to our stake conference in Spanish Fork and stated that the next big thing that would happen would be a "total collapse of the economy". He then stated that after that happened he would return to tell us the next thing that would happen. He told us to prepare for it. Elder Oaks also stated that we were to follow the prophet only, because the time would come that even some of the GA's would not be in accord with the prophet, and the only way to remain safe would be to follow the prophet only!

As we can see, he gave us ample time to prepare. I've asked around my ward to see who remembers what he said. No one thought that was of any importance, they don't remember it. They all will just blather on about him telling us to be kind to one another, pay your tithing, etc. Oh really?...He didn't. I was there, and he pushed over and over prepare, prepare, prepare. Get your houses in order, and..."Total Financial Collapse"

I'm going with Elder Oaks on this one...Our money will be worthless. Hyperinflation here we come. I'm purchasing like crazy at discount prices all the things we need. I make many things to make our purchasing dollar go further. Our date nights are spent with preparedness. OK...Every day is spent in preparedness. This while working full time and baby sitting grandchildren. Don't tell me how busy you are and just can't seem to find the time. Your right...I just can't seem to find the time to watch hours of TV, hang out at the mall, go to lunch with my friends, go on vacations, read novels all summer, and why? Because I know what is coming, and I'm to scared to stand still and do something of little consequence when my families lives depend on it.

Kellene, keep telling them the truth!

Preparedness Pro's picture

Keep at it Katie, but try hard to stay committed to peace in your preparedness, rather than "being scared." You'll think more clearly and you'll lean better how to do what you need to with what you've got.! Take care!

When you say some of the GA's would not be in accord with the prophet, are you referring to the the 12 apostles or the seventies or both?

Al, .The thing that makes this period of time the scariest is the multiple dominoes that are being vibrated into wobbling. It doesn't matter which one falls first, once any one of them fall ALL the others will follow . Inflation or deflation are only two.Any of them will result in worthless money, no income, empty shelves in All stores not just Grocery stores. Though that will be felt the fastest. What are the rest of the dominoes? Well try War in the Middle East, whether we are involved or not. Stagnation of Bond sales necessary to refinance debt if that is not maintained The Fed will print money , inflation will result. Losing status as the world reserve currency (already starting) A new Chinese rating Co. already calls US bonds as Junk. Increasing Natural disasters in diverse places earthquakes tornadoes hurricanes fires, lets not forget extreme cold in southern areas , excessive Moisture , drought . All which have affected food production in the last few months, so we are looking at less food available for higher cost.And we haven't even touched on the stupidity in Washington D.C. (dimwit central) that will kill any hope of recovery. But will add greater pressure on all financial resources.Oh yeah our open border problem, illegals working American Jobs.And also the threat of attack from the peaceful Muslim religion.

Whats my point? Arguing about whether Inflation will happen or deflation is redundant.




Whatever it is, it comin' folks and it's gonna be a doozy.

Thanks for another thought provoking article worthy of sharing with my friends & family. We'd be taking your class again on sat., but one of our daughters is getting married. We'll be on for Aug. 21st.
Your insite is right in line with others and even if it's not, it is wonderful to be like the farmer who can sleep at night!

Preparedness Pro's picture

Kristine! Congratulations for such a happy day this weekend!!

most of us preppers are simple folks and just trying to do the best we can. Yet AL attacks Kellene. Al agrees we should prep but only for the right reasons. Gosh you silly folks are preping for all the wrong reasons (sarcasm)
Gosh how did we survive and prep without Al's guidance. He has proven he knows more than Kellene in comments. Oh... maybe not!

I have done my homework for the last five years. Hyperinflation is at our door. I do not believe one word coming out of Bernanke's mouth. I have been made fun of by family and friends, but it doesn't matter to me. All I can say is "you had your chance." I cannot see why people refuse to wake up and see what is actually going on. Do you realize that the national guards are having a hard time getting ammunition, do you know that 700 border employees were completely replaced last year, are you aware that in Nevada the equipment used to help the clouds produce more water was dismantled because "government funds were low." Who doesn't need WATER??? These all came out of the local newspaper, but people refuse to believe it even when they read it. Put the puzzle together - it isn't hard to see what is going on. The pres knows exactly what he is doing as he slowly cripples America.

“I find your assertion that hyperinflation does not exist today to be a morally repugnant statement.”

Facts are morally neutral. Hyperinflation is a form of inflation in which the price of goods increases by at least 50 percent a month. A recent example of hyperinflation is the 2,100% annual inflation rate for Brazil in 1993.

That is clearly not happening in the U. S. today.

Indeed, the U. S. inflation rate for 2009 was -0.34%. This is deflation, the polar opposite of hyperinflation. Through June, the U. S. inflation rate for 2010 was 2.065%.

There are a host of potential problems to worry about and prepare for. Mental preparedness requires the ability to clearly see and understand reality. Hyperinflation may or may not occur in the future, but to claim that a 2.065% annual inflation rate is hyperinflation is simply false.

Preparedness Pro's picture

I agree with you that FACTS may be void of morality. However, that's the puzzling part of your passionate assertion. You seem committed to debunking any notion that hyperinflation exists while relying on misinformation for your foundation. As such, I feel that is irresponsible in light of all of the evidence--perhaps not irresponsible to yourself, although it will cause me concern to think of "al" enduring unnecessary challenges when the time comes, but it will pain me that much more to think of any of your family members that could be assisted.
Since you are a reader on this site, does it go to reason that you are still interested in preparedness, per se? If so, then I guess I don't care what compels you to do so--so long as you do completely. Or are you just one of those folks who goes around stirring things up and trying to convince We the People that the emperor is actually wearing clothes?

Preparedness Pro's picture

Oh, and by the way, I realize your definition of hyperinflation--but I believe you're missing something critical--it doesn't matter if the goods are increasing 50% a month--you also have to look at the value of a dollar. The goods increasing so much, is what happens once the value of the dollar is seen for what it is. As I said in the article, hyperinflation IS COMING. You're trying to rely on the facts as you believe them to be right now. But the problem is, even if those were reliable facts, they do nothing to determine that what I'm saying is coming, will somehow be avoided.

Preparedness Pro's picture

"al"--even though your definition of what is hyperinflation is a bit off, I think even this meets your requirements. see: http://alertnet.org/thenews/newsdesk/LDE67A0Y0.htm I'll share one of the sentences with you.
"Wheat prices have risen by nearly 70 percent since June after Russia suffered its worst drought in 130 years and are at their highest since 2008, when the last major food price rally sparked protests and riots in a string of emerging nations."

Folks, Al has his facts correct. Today, inflation / hyperinflation is not a problem. The world wants to hold US dollars preferentially to other currencies or tangibles. But that could quickly change. If a majority of people lose faith and confidence in dollar bills, then they will trade them for something else. That "something else" may be gold, silver, food, new cars, land, euros, swiss franks, ammunition, etc. When everyone is buying and few are selling, the price goes up quickly and dramatically. This is known as inflation.

The prepping community has long predicted the collapse of paper money and the rise of tangible goods. But preppers are a very small part of the world population and have little influence on the economic events around us. But Kellene is correct also. If you believe that prices will start to increase drastically, turn your paper money into tangibles now. If you are absolutely, 100% convinced that hyperinflation will occur, borrow as much money as possible today and pay it back with inflated dollars later.

Personally, I don't know what the future holds. But it seems wise to have prudent preparations for any eventuality. Buying food and other tangibles at today's low prices seems prudent even if inflation does not occur and extraordinarily wise if it does.

I don't pay attention to the figures that the news media comes up with. I pay attention to my output for food, clothing, shelter and my utility bills. I look at how much I have left from my paycheck after all of my expenses are paid. The media may say the economy is doing good, but what about your electric, water, gas, phone, cable, property taxes, and insurance going up? When is the last time you bought Macaroni and Cheese for 25 cents, or a loaf of bread for 25 cents? Couponing frees up money for me! I can buy that book I want to read. I can buy that chocolate cake I see in the bakery showcase. If I see a great deal on an item I know I'll need, I can buy more than one. And if there's a rebate on the item I bought with a coupon, that makes my day!

I have been reading on this subject for about a week now and it does cause me a great deal of concern as to how this will all play out, supposedly this will be a "melt down" in 2015 according to one video I watched. While I plan to stock up I have a hard time trying to figure out if money is no good, my paycheck is no good... how will we be able to pay for things like our utilities, doctor visits, etc. I don't think AEP is going to accept a silver or gold nugget as payment for services??? It's puzzling and I hope there will be more info. out there in the future on not only stocking up which we should all be doing anyways not just for hyperinflation but for preperation for loss of job, national disasters, local disasters such as we had here in Ohio with the after effects of Hurricane Ike 2 years ago with loss of electricity throughout our city for 3 days.

Anna in Central Ohio

Inflation has been holding steady if you discount the food and energy sectors. Which is how the government counts inflation. But I need both food and energy every month and not a new LCD TV or the latest smart phone. I know that sugar is costing twice as much per pound as it did a year ago. I know because I shop. I know my what my electricity cost every month. Cause I read the bill and compare my usage and costs every month. I am on a fixed income so every dollar counts.
I'll do my best to prepare for both deflation and inflation. I'm hoping for the best and preparing for the worst. I think a collapse is coming ala Argentina. If I'm wrong well I won't buy groceries for a couple of months and take a "Road Trip" and still have a years worth of food/goods for any "Oh Poo" moments. Any way it happens I win.
I can deal with a flood, a tornado, a snow storm or a volcano. I have heat, water and food for myself and my family. I can smoke, salt, "corn", can or pickle almost any kind of food. I'm building networks with my neighbors.
That's the best, get to meet new folks and find conman ground. I'm loving it. I may not save my family, I'm trying, but I have new ground of others I can save. The neighbors feed my bunnies while I'm on vacation I'll take care of their dog while they are at work. Simple and nothing subversive just being a good neighbor. It really is that simple.
I hope to take the coupon class, but it will be next month. Heck it's cheap at twice the price. I figure I can make up the cost of the class in a month or 2. I do have the Loss leaders, and buying in bulk down, that I have learned from Kellene, I just got to get a handle on coupons. A couple of times I have hit it on coupons, and to watch that register start subtracting is awesome.

Preparedness Pro's picture

I respectfully state once again Mike, that hyperinflation is already looming. All is not well. For centuries (from Roman times on), a man could work a full week and still earn enough for a full suit, shoes, and a meal. This is not the case any longer. This is a key indicator of hyperinflation. But we haven't seen the worst of it yet.

Al has what he believes to be fact. Unfortunately, they are no more "facts" that the so-called "facts" that compel people to pay way too much income tax. But that will have to wait for another thorough, highly detailed article.

Preparedness Pro's picture

Just a reminder folks...while a difference of opinion is welcome on this site, personal insults and contentious comments will not be tolerated, nor will they be published.

No matter what folks, keep prepping and what ever you do : Never feed a troll.

Even if Kellene is wrong. Local disaster happen. Be it a Hurricane or a power outage. I have never read or heard someone complaining they had to much food, fuel or survival stuff on hand(candles, generators, radios etc.)
When I hear someone say they prepared to much for a disaster, or that they did not gain Peace of Mind, or that they could help out family and neighbors. Then I may think about not prepping. Actually no I'll still keep preping.


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