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In case of hyperinflation, break glass

Posted by John T. Reed on

In case of hyperinflation, break glass:
This is a list of dollar-denominated assets that you need to GET RID OF RIGHT NOW in case the USD tips over into hyperinflation. They are losing purchasing power by the second!
• cash—list all the locations where you have it
• EE bonds
• other US Treasury bonds
• corporate bonds issued by US corporations
• other USD denominated bonds
• bank accounts
• CDs
• cash value life insurance
• dollar denominated gift cards
• IOUs
• Pay pal accounts
• prepaid phone cards
Okay, as you can see this is a mess. Some of these things cannot be turned into hard goods by going to the supermarket. So get rid of them. Liquid hard assets area rare and wonderful thing in hyperinflation. What it horrible are things that are dollar denominated and NOT LIQUID, like EE bonds. I think maybe you need to send them to the Treasury to cash them in then you need to buy some hard assets with the cash.
Same goes for exchanging bonds Treasury and corporate bonds. So get rid of the damned things before the whole country goes nuts trying to convert dollar-denominated assets into cash then converting that into hard assets.
Any dollar denominated asset you have that is hard to liquidate may be doomed to the point that you forget about it once the hyperinflation starts.
You can suck cash out of a debit card account in a bank fast at an ATM, if the bank’s computers are not overwhelmed by everyone else doing the same at the same time.
CDs require sitting with a bank teller. Too slow.
Cash value life insurance is like cashing in a bond. you have to deal with the insurance company.
Getting IOUs paid in cash during a hyperinflation is a joke. Get rid of them beforehand.
When you have money you want to turn into hard assets where would you go to buy them? First, most people will probably run to the supermarket and drug store. I would expect lesser numbers at the hardware store or the lumber yard. Big box store will probably also be crowded.
You need to be able to haul away what you buy. So what kind of vehicle do you have. If you have enough, you could go buy a truck and use it to go to Home Depot and load up on copper tubing or power tools or appliances. But buying a truck is itself time consuming and time is a lot of money in hyperinflation. Maybe just rent one.

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