Now you're getting into some interesting territory.
Many are calling for the USD to lose value, and yet there's this theme that having actual dollars in your hand will be a godsend in a panic. Kind of a dichotomy, at least on the surface. I'm thinking that it means that regardless of the bigger picture and what the USD will buy in International goods, in a SHTF situation people will go with what they know.
And the fact is (like it or not) is that people are familiar with USD. So if electronic, virtual 'paper' money isn't available (hey, I just made a huge joke.... 'paper' money), real dollars bills in ones hand will be especially valuable.
And yes, I am quite familiar with the argument for Precious Metals, in fact I am a proponent... however I can see a case being made that implementing a Gold/Silver backed system will take time, and in the heat of a panic real,dollar bills will be in demand for transactions person to person.
September 15, 2010 10:21 PM
Indeed. Dont doubt it for a second. The first couple weeks or months, cash will be king. How long it be of use will depend on the type of crisis, but even in a fast devaluation collapse the fist week or so when banks close and everything is clearly going to hell, people emptying the AMTs and such, cash will be a godsend. I recommend one or two months worth of expenses in cash stashed in your house as a minimum.
If you combine cash with a strategic location to go to when times are uncertain, your toolbox of opportunities gets even more interesting.
I often recommended Uruguay as a plan B or C location. I happen to be in Uruguay right now.
With 1000 bucks you can rent a 200 USD/month condo in Colonia, and use the othe 300 to live ok. That means your 1000 USD gets 2 months wort of time if you have a go to bag ready, a pasport, and another 1000 bucks or so for a last minute plane ticket. Other locations may be closer to your country and offer similar bnag per buck. The important thing is at least knowing they exist and preferably visitng them once or twice to see how its like.
This brings us back to the Nomad,2nd theory that says you can work your way out of most problems if you have a gun, a bottle of water and 1000 bucks. 2000-5000 looks even better, and it doesn´t hurt to throw a credit card in that little stash, but the point is valid if you ask me.
I”d add to that the holy triad of EDC; a mutlitool, a good LED flashlight and a lighter.
If you have those six elements with you, you can face a broad specture of emergencies, and the money and credit card will probably be the most useful ones.