Thanks for all the info you share. My question is about inflation and how some things jumped in price. In particular I was wondering about ammo prices and the cost off a new car. I can do the math but was wondering what the actual jump in dollars was taking everything into consideration.
The way hyperinflation works has a few similarities whenever it goes out of control. For imports (or products that require a minimum amount of imported materials to produce) the price stays the same as it does abroad in relation to the more important currencies that haven’t gone down the drain.
In our case it was the dollar. Houses, cars, electronics, guns and ammo. It all stayed in dollars. Even today, in most cases those are priced in dollars. A new Glock costs 850 USD here. I’ve never since any gun store or shooter bother with how many pesos it is worth. Of course as the exchange rate changes you need more and more local currency to keep up, 1:3, 1:3.5 1:4 The exchange rate is the actual index of how poor your getting. Since prices (even in pesos) keep up with the dollar, the exchange rate gives you an idea of how poor the country and its population gets. Even for locally produced goods like meat, they are internationally priced as well because they can always be sold to Europe and other foreign markets. The peso goes up or down in relation to the US dollar? Local prices follow according.
If something like this ever happens in US, of course the currency of comparison will be the Euro. No one cared about the European currency a couple years ago, but people sure took notice in October 2009 when it reached 1 Euro: 1.5 USD. As of right now the exchange is 1.27 which isn’t that bad. If it ever gets to 1:2 , know that it will soon go up to 1:3 or 1:4 as people rush to a safer currency. 1.5 was pretty bad for a country like USA.
Regarding ammo prices, as I said before they are priced in dollars and local brands, even though priced in pesos, keep up to the dollar and then some. Ammo here is usually twice as expensive as in USA. Again that’s another number to keep in mind and go buy.
No matter if its South America or Africa, a good index to somewhat guess the price to expect after an economic collapse is the price in foreign currency x 1.5 or some cases x2. This is because a) it has to be imported and usually the government going to hell tries to protect its industry with heavy taxation to imports b) Scarcity. Few people can pay expensive prices, so the product is somewhat scare. Hey, if you can pay for that you probably have money, so why not pay more?. This is why a Glock costs 850 bucks and ordinary cars costs easily twice as much as in USA. This means that maintaining the same lifstyle level will be more expensive in the collapsed country than in the one that didn't go down. How can this be explained? Most people wont be living up to those standards. Most people will be poor, and the elite left wont care much one way or another, the thin line in between will often leave the country or stay strugling.
Because of all this, gold and silver are of particular interest to survivalists. Right now since we are already involved in a global crisis, gold price is affected also by both increased demand and the belief that its safe ground to stand in the future as well. Because of this silver is still a precious metal that protects your savings against devaluation but you’re not paying that much prime as you do with gold.