Post SHTF currency

There’s a lot of guessing and theorizing about the “post SHTF” currency.
Fascinating as it may be, I believe its important to be rational, and set the record straight mostly to avoid people making wrong decisions and simply wasting money.

Other currencies: The most common thing to happen when a currency falls and looses value is to people to simply start using other well recognized ones. Mostly Euros and USD.
Many years ago I told readers that having a few Euros was a good idea so as to have eggs on both sides of the scale, since it was easy to see that if the Dollar lost value, the Euro would increase its own since they are both usually held against each other.
Those that listen back then today have 50% more purchasing power in those Euros .
Something similar but of course much worse happened here in Argentina after 2001. Everything that was ½ way expensive was measured in US dollars, not pesos. For that reason prices changed within hours and they still do, even though a bit less dramatically.
Most medium and big stores, even in fairs and markets, people will accept dollars and I’ve even see them accept Euros.
So lets suppose the dollar collapses ( no, don’t think it will) the Euro may become accepted more readily in USA. Yes I know most Americans don’t even know what an Euro looks like and the culture just doesn’t revolve around it. Guess what? You adapt when you don’t have a choice. You adapt or you fade away. Again, don’t think the dollar is about to collapse or anything, but it is losing against the Euro.
In no time a black market for whatever currency is getting accepted erupts with such force its impossible to control. Again, that happened here with the dollar. Officially there was a limit to how many dollars a person could buy, but on the streets the story was different and you could buy or sell thousands.
So, in most cases, when a currency falls, it gets unofficially replaced by another, stronger once. At least as a measure of things.

Precious Metals: They have historically kept their purchasing power through time which makes them a great way to protect your savings. Even if the price varies, it mostly goes along with inflation, to the true purchasing power mostly stays the same. There is a small variation like the one we are seeing now, where gold for example seems very expensive. Two reasons for that: 1) Inflation, official or unofficial, its there so precious metals seem more expensive 2) There’s a crisis going on, this offsets the price a bit since precious metals have historically been a shelter during crisis, this increases demand.


“What if there’s no demand for gold? Then its worth nothing at all!! JAJAJA!” Typical reality denier. The problem with that logic is pretty simple: That has never happened before in over 10.000 years of human history!
Goods & Services: Its true that seashells, coco beans and other products have been used as currency one time or another. Still, nothing ever came close to the worldwide and millenary acceptance of gold and silver.

Tools and other supplies: They have been traded a lot, but don’t fool yourself, they have been trade goods, not currency. Currency is a different deal. Don’t fool yourself into buying excessive amounts of tools hoping for a significant profit after an economic collapse. Just wont happen.
Salt for example has been used as currency, for long periods of time in some places of the world. It’s a good product and pretty resistant yet it can get ruined or contaminated in ways that it loses its attractiveness. Also, salt is pretty plentiful. Buy lots of it because its dirt cheap, has many uses and it’s an essential good, doesn’t go bad as long as its dry and you eventually use it. But I’d certainly wouldn’t buy it hoping it will be used as currency.

Ammunition: A survivalist classic but only on fiction.
The nice thing about ammo is that its actually useful, the bad thing about ammo is that its sensitive to humidity and only a nutcase would load a gun that may be used to save his life with ammo of uncertain origin and storage.
I can keep coins or even paper money in my pocket in a hot summer day, sweat all over it, its still money. If I have a handful of 9mm shells there, then buy something, goes to another sweaty pocket, then someone forgets it in the washing machine lie we often do with coins, get wet for whatever reason… I can simply clean it up and leave it all shiny, but that ammo will either ruin someone’s shot while hunting or worse, get someone killed.
Ammo is sensitive and must be kept stored properly.
I’ve shot 7,65 Argentino ammo from the 50’s in my Mauser. Some fired, some didn’t, you just never know until you pull the trigger.
Ammo going from one hand to another will become dangerously unreliable in a matter of weeks.
Its true that ammo has increased in price and that if you had cases of it, you can sell it for profit. Cases of ammo. Stored well. Ammo is not currency and will never be because it lacks the basic property actual currency needs.
Buy enough ammo for your needs, then buy some more for a rainy day, even buy extra for your grandkids if a government somehow restricts ammunition sales. Heck, buy ammo to fight a civil war if you think it will come to that. Do not buy ammo believing it will ever be currency. Better stick to precious metals in whatever for you like best.

FerFAL

Counterfeit Money

I have a couple of other longer posts going on but I wanted to share this little tip with you because it’s one that can save you a lot of money, for real.

I’m not so sure how used you are to detecting counterfeit money.
In Spain, I’ve been handed funny money IN A BANK, without the employee realizing it unitl I told her, so I suppose that at least there, people aren’t used to it.

Point is -> economical crisis -> people need money-> some genius realize they can “make” money.

So sooner or later you start seeing a lot of counterfeited money. Some is better made than other, but this will probably become a problem in due time.

After our 2001 crisis, it happen after a few months, about a year.
It already happened before teh crisis, always had some funny money around, but after the crisis you noticed an increased number of it. There was a lot of fake money around, even fake coins. (someone made a killer there, since it was very hard to tell the fake coins from the cheapo post crisis coinage)

Inexpensive gadget that can save thousands ( literally!)




http://forums.the-gadgeteer.com/photon-micro-lights-uv-purple-review.html

I started carry one of these ultraviolet LED lights. Not this particular brand, but one similar in terms of function.

Just lighting it over the bill would quickly tell you if the money was either fake, real, or maybe a good copy. I’m saying this because other things must be checked to before you can tell it’s not fake, but the light helps a lot.

I must say, I don’t carry one of these any more, and use the space for a real LED flashlight.
Why? Because after years of this, I humbly must admit that I got good at telling funny money form the real one. But don’t get too cocky, don’t think you can tell the difference too just because you think you be able to. Wait until you’ve detected about 50 counterfeit bills give or take( in actual exchanges and in payments at the cash register) before you can claim that.:) Better to be humble than loosing 100 bucks.
Now, things to look for, besides the light:

What to Look For:

1) Overall feel, the paper, the graphic quality. I’ve found fake money that had ugly quality paper. Not quality fake money, but in a rush you might not notice. Even with a home printer they can do this low quality counterfeit, so take a breath when you have money in your hand, and look at it well. Do not rush.
I remember once, I found a bill that was wrong since I first had it in my hand? Low quality and obviously fake but something else, What was it?.. After comparing it with a real one it was clear that it was 1/10 smaller. :)

2) The ink used. A real USD bill will leave a mark when rubbed against white paper ( the darker numbers)

3) The water mark. Don’t just make sure it’s there, make sure it has all the detail. I once found a fake dollar that had the watermark portrait, but with much less detail. It was hand make. Good detail, but not enough. Fake. Some look like drawn by a 5 years old, others a real work of art, making the bill probably more valuable than the real deal. :)

4) The vertical strip. Only noticeable when looking through the bill with a light in the back.
This should not only be there, but have numbers in it. I once found one that was a simple black strip inside the paper. Fake.

5) Look at the shiny ink marks, the one that sparkles a bit, it should be clearly defined, and not messed up a bit.

6) The numbers, the ones that change color when you look at it at a different angle, it should clearly change color.

7) Last the paper. Touch it, look at a lot of real paper bills trough light. The paper money is printed on is special, has a number of marks, a texture, that is different from ordinary paper.

These are basically the things I look for in money. I’m sure I’m forgetting some and there are others too, but check these, with the light to help, and you’ll avoid most counterfeit money out there.

Seems like a long list now that I look at it, but once you get used to it you check all these things in seconds.

FerFAL

Black/Gray markets

Black/Gray markets

A question I have, you have mentioned the black/gray market on a few occasions, but I have a somewhat hard time understanding it. In the US the only thing I can think of with similarity is a flea market, where you can buy some collection stuff(books, dvd's), some home-made stuff(leather belts etc) and a LOT of chinese crap they wouldnt sell in most stores. But never would one find firearms there, much less things like hand grenades. Why doesn't your police regulate and crackdown on some of the more illegal operations? Thanks, best of luck and congratulations with your new child!

Recon

I call them Black/Gray markets because they are mostly large fairs, most run illegally (rent of public space) and were a lot of conterfit, illegal and stolen products are sold.

For example in the “Larroque Outlet”, among the usual crap, Chinese yunk, etc. some stands sell stolen and counter fit clothes.

My sister’s father in law runs a transportation business and knows well that most of the merchandize that sometimes get stolen by asphalt pirates ( robberies that occur on the highways, usually away form the city and curious eyes) ends up there.

Some of these markets are like nothing you’ve ever seen.

I've been to a few markets in USA but these are totally different.
La Salada market is a case study, the thing looks like Barter town on steroids. There’s even a railroad ( in use!) running through the market.
When the train comes people move quickly away, move the stands full of merchandize that are over the rails, and once the train passes the space is occupied once again

People come from all over the country to buy stuff here and take back to re sell.


But you dont walk into the "La Salada" market and buy a bunch of grenades or guns. It’s not like Afghanistan were you buy Ak as if you’re buying bananas.

These are improvised ( VERY improvised) open air markets where you can find all kind of things, including stolen merchandize, counterfeit clothes, and such.
You can acquire weapons if you know the right ( well, actually wrong) kind of people, but you wont see any sold publicly.

This is of course illegal and not something you should be doing.
Guns you can legally buy in gunshops, so why do things the wrong way.

I suppose you have to see these places for yourself, they are hard to describe well.

“Why doesn't your police regulate and crackdown on some of the more illegal operations?”

Yesterday they showed a report on TV, on how cops of this same district “Lomas de Zamora” actually run THEIR own little market, selling autoparts of confiscated vehicles! :)

Cops don’t bust places like “La Salada”, they work extra hours there to make a few bucks.

The European Union once referred to “La Salada” as an icon of illegal commerce.

An image says more than 1000 words. I found this website with lots of pics of, “La Salada”.

http://www.sub.coop/VerAlbum.php?ALBU_ID=271

FerFAL