Why Prepare?

I love to travel.  I got the bug back in 2001 when my mother, sister and I visited Italy.  While it wasn't my first international trip, it was my first real glimpse at how other people live.  Up to that time, my only other international travels had been to Canada and touristy Caribbean hot-spots via a cruise which really didn't give me the true flavor of a different culture.  One thing that I noticed is that, here in the U.S, everything is super sized.  Huge grocery stores, huge refrigerators, big houses, big yards, big cars, and generally just lots of stuff.  The Europeans go to the market multiple times a week, many even on a daily basis.  The majority don't have big homes. They do not have the Costco to stock up in mass quantities, at least that I saw. 

Gone are the days where much of our population was more self-sufficient: growing our own food, cooking, canning, hunting, building, and sewing.  For most of us those only stories from the days of our grandparents and great-grandparents.

Let me pose to you a question: what would you do if you could not get groceries at the grocery store for a week?  What about if you couldn't get groceries for two weeks?  Four?  What if you couldn't afford the food once you got there? 

What types of situations might make this an issue?

1.  Natural Disasters - the Red Cross, FEMA, and other entities all recommend having a minimum of three days supply of food, first aid, water, light, and more.  We never know when an earthquake, flood, storm, or other disaster might deprive us of the ability to head to the store. In my opinion 3 days is very short sighted.  Just days ago we had a uncharacteric snow storm here in the Puget Sound, with temperatures hitting the low teens.  People all over the area had power outages lasting more than 3 days!  I remember the "Inaugural Day Storm" on January 20, 1993, where over 600,000 people lost power; some in outlying areas didn't get power back for weeks. (My boss at the time lived out past Black Diamond and didn't get her power back on for nearly 2 weeks.)

2.  Inflation/hyperinflation - I won't pick Zimbabwe or even Germany's Weimar republic as examples of hyperinflation.  Germany's situation occurred after WWI, and Zimbabwe is a third world country.  I'll pick a country with more relevance: Argentina.  Argentina is not a third world country; at the beginning of the 20th century it was one of the richest countries in the world. It is one of the G-20 major economies and is currently considered an upper-income country. In 2001 Argentina's economy melted down (not for the first time either).  Government statistics show their current inflation rate at over 10% but many private analysts tag it more than 15% .    According to an article in the BBC News, "A deep recession foreshadowed economic collapse in 2001. This left more than half the population living in poverty and triggered unrest."  Internet site http://www.tradingeconomics.com/ has a charting tool that spans multiple years.  It shows that in 2001 inflation spiked to over 40%! (See attached chart). Can you afford even a year with everything 40% higher? I can't.

3.  Food Shortages - http://www.dailyfinance.com/ has an article, that is not even a year old, by Bruce Watson where he quotes popular investor Jim Rogers.  Jim says "a severe food shortage is on its way." Jim spoke with CNBC in an article by Antonia Oprita, and said "Sometimes [sic] in the next few years we're going to have very serious shortages of food everywhere in the world and prices are going to go through the roof."  WorldNetDaily's website has an article that states there may even be a government cover-up of a world food shortage.  The article goes on to say that, "Stores have only an average of 72 hours of inventory on hand and very few families are capable of producing their own food, so even a temporary shortage of food supplies could be catastrophic."  This statement recalls to me news footage of empty grocery store shelves hours before a hurricane or storm is scheduled to hit the gulf coast region.  We've seen the footage where everyone heads for the store for food, water, batteries, beer, and whatever else they can grab that is left.

Below is a 6+ minute video from the National Inflation Association (http://www.inflation.us/) that outlines some of their theories on food shortages in our grocery stores.  They believe that not only are food shortages an issue, but firmly believe we will see hyperinflation within a few short years due to the U.S. economic condition. 

On the bright side, we CAN do things to prepare and be ready.  If nothing happens and life goes on, same-old-same-old, then we simply use up the resources we've gathered.  Nothing lost; peace of mind gained.