There’s no more denying it. We are on the precipice of an economic crisis that will dwarf the Great Recession of 2008. Between the careless, excessive printing of fiat currency and the impending hyperinflation, the value of the dollar is undeniably crashing. However, I believe  that agorists are in a position to not only safely weather the storm, but even thrive if prepared. Let me share with you where we are at, what we can expect, and what we can do to protect ourselves and our families from the coming economic dumpster fire.

In a recent article by senior analyst at goldsilver.com titled “Higher Inflation is Coming – The #1 Way You Can Prepare,” Jeff Clark discusses 5 realities of the current inflation situation. The first point he talks about is that higher inflation is practically guaranteed. Inflation is caused by excessive federal debt and deficits. He quotes, “Debt levels over 90% of GDP are linked to significantly elevated levels of inflation.” As of the end of 2020, the federal debt was 127.3% of GDP! In regards to deficits, it should be no surprise that the U.S. Federal deficit level is the largest in history. This is another compelling indicator that crisis is on the horizon.

The second reality that Clark discusses is the rate of inflation. Based on historical data, there have been three instances of hyperinflation in the United States. All three scenarios played out over the course of two years or less. Between 1915 and 1917 inflation rose by a factor of 17 from 1% to 17%. In 1945, inflation rose from 2% to 14% in 1947. That’s seven times in one year. Finally,  between 1972 and 1974, inflation rose from 3.2% to 11% or a factor of 3.5. Based on this information, Clark extrapolates that we could now experience an inflation rate between 6-28.9%!

The third reality Clark touches on is that most investors don’t have any experience dealing with this magnitude of inflation. What he means by this is that the last period of hyperinflation occurred long enough ago that the majority of investors are not old enough to have lived through it. The majority of non-investors or the general population will be prepared even less. He warns that panic could be a real possibility. Since the Federal Reserve “actively seeks” an inflation rate exceeding 2%, chances are they will do little to stop it. Inflation is often referred to as a hidden tax and a goal of their economic policy.

Realities four and five that Clark discusses in his article are how investors can protect themselves during the pending period of hyperinflation. Based on current data, he compares the current status of a few popular assets such as stocks, real estate, bitcoin, commodities, gold, and silver. All of the assets besides gold and silver are generally at all time highs and he doesn’t believe these investments will properly hedge against the inevitable crisis. Gold and silver on the other hand tend to perform well during periods of inflation. Especially silver which is extremely undervalued at the moment.

To understand some possible scenarios for what is in store for us, one only needs to go back in time and take a look at some history. In Mike Maloney’s book, Guide to Investing in Gold and Silver, he starts out by differentiating between real money and fiat currency. A subject the majority of the population is absolutely clueless to. He goes on to highlight some of the earliest examples of when fiat currency failed. The earliest example happened in Athens, Greece. Around 680 B.C. in Lydia, is when people began minting gold and silver into coins. Gold and silver had been used as real money for some time, but turning them into small coins allowed for convenience and uniformity. This economic system allowed Athens to flourish and grow. However, it wasn’t long before they started mixing in other metals such as copper when they began to engage in expensive wars and needed more funding. It took about two years for their once sound money to debase itself into useless, worthless currency and this eventually led to the fall of Athens.

A similar situation happened in Rome. By A.D. 284, Roman coins were basically “tin-plated copper or bronze.” During this time the Romans invented welfare and around 20% of the Roman population was receiving government assistance. This gives us a glimpse into the state of the economy at that time. Sound familiar? What soon followed was the first documented example of hyperinflation. Over approximately fifty years, the price of gold rose 42,400 times! What resulted was a return to a barter system.

Could we end up with a barter system pending the collapse of the U.S. dollar? I think it could be possible, albeit temporarily. While I agree that investing in real money such as gold and silver is smart and safe, these authors fail to take into account the rapidly growing cryptocurrency economy. I think most of us would agree that cryptocurrencies are the future of economic commerce and the solution to inflation. However, I’m not so sure we are set up for this new economic system on a daily global use scale were the crash to come in the immediate future. The majority of the population is not prepared with the means or the knowledge to function in a crypto society yet. We’re getting there, but we’re not there yet. Therefore, a barter system could more than likely be implemented in the mean time. In either scenario, I believe that agorists, armed with their knowledge of markets and countereconomics are poised to do well during this difficult time.

So what can we do to prepare? Precious metals in physical form are obviously important to have on hand, but what else? Think about what people will need once their dollars are virtually worthless. Things like food, clothing, and services such as car repairs and other trade jobs. My husband and I have a homestead and raise chickens and turkeys. We already barter for grassfed beef, plants, and trees. Now is the time to plant a garden, hone a new skill, and most importantly, if you are not yet familiar with cryptocurrency, NOW is the time to learn.

Don’t get caught off guard and swept up in the panic of hyperinflation and the devaluing of U.S. currency. Learn about real money! We are on the cusp of some major global changes. Knowledge is power, and the time to prepare is now.

Countereconomics IS the way of the future and the future is closer than it may appear.