Investing for the apocolypse
The electrical grid is down, bombs are falling, and the government has collapsed. There are riots in street, and you need access to your money immediately to protect your family. The banks are empty, you can’t cash out your 401K, the “equity” in your home is inaccessible, and all your stocks are worthless. The decades spent working to acquire capital are pointless in the face of societal collapse. Everyone is finally equal. Apocalyptic scenarios are not impossible and there is much to learn from the true nature of our over financialized economy. Investing is about building and preserving wealth, not dollars. It takes just one major societal disaster to realize there’s a big difference.
Stagflation is not your friend
Preserving one’s wealth from the corollaries of inflation has become essential for the modern man. In an economic environment where purchasing power is perpetually eroded, the prudent investor needs to find alternative assets to place his capital. Between speculative price bubbles and indebted governments, the prospect of placing bets on traditional markets has become increasingly risky. Long gone is the guarantee of price appreciation in stocks or real estate, as well as the perceived safety of treasury bonds. When recessions loom, inflation persists, and instability reigns, where does one ride out the storm?
The financial system is contingent on a top-down approach where the purveyors of currency attempt to convince everyone that acquiring their worthless currency is equivalent to actual prosperity. Any method of enterprise, occupation, or financial gamesmanship is enough to create habitable environments for everyone under this system. The confidence in the system and its currency is only thing keeping it alive. A large portion of wealth is unrealized profits, and an even bigger chunk is backed by debt. Take away all the valuations by means of digits on a screen and you just have a bunch of stuff with varying intrinsic value. True value comes from something’s ability to produce. In a world with no internet, a bag of apple seeds is far more valuable than 10,000 shares of Apple stock.
The central banks understand this principle, that’s why they degrade their own currency. All the things with little or no tangible value must appreciate in price or it will be unwanted. The powers that be will ensure inflation despite the reduced production of goods and services. It was never about the economics; it was about the continuation of a corrupt manipulated system that favors a few at the expense of everyone else. They convinced us all to work for depreciating money, save it in institutions that degrade it further, and then trade it for financial products with even less real value. All the while, they buy up all the real stuff and prepare for inevitable collapse.
Bitcoin and 5.56 Ammunition
Preceding the apocalypse, the controlled economies of the world will chug along unimpeded as the currency slowly disintegrates and stock valuations reach new highs. The system is quite capable of lasting forever if the spoils are worthy enough and the neophytes are sufficiently comfortable. The crooked monetary system has gone on this long. With the unconditional confidence of the people and no major disasters, it will go on to the end of time. However, in the hypothetical End, the big losers will be the ones holding the bag. Apocalyptic warlords will not care how many Lamborghinis or Fabergé eggs you have. Worth will be recognized in its original state as the value that something contributes to survival contrasted with the expense of carrying it around.
No one knows how we’ll transact in the new world, but it will be imperative to rebuilding civilization. Physical coinage derived from manual labor is possible. It could be as simple as bottle caps, or seashells, maybe even blood or gasoline. A medium of exchange needs to be scarce, easily transferable, and difficult to counterfeit. Ironically, the best form of currency that meets this requirement is cryptocurrency. And no, it does not need internet connect to transfer or hold. Bitcoin has proven to be transmittable over radio waves. There is only a specified amount in existence and each unit cannot be replicated. The value of which is yet to be determined and based on the circumstance could be invaluable. Of course, the real equalizer in new wild west will be the same as the old west. With sufficient guns and ammunition, any item could be yours with the right amount of convincing.
The Meanest of Production
The winners of the current and succeeding society are and will be the owners of the means of productions. Those with the ability to produce their own energy, food and security can weather any storm. Independence has always been true wealth and prosperity. Whatever you can’t produce yourself should be easily acquired by means of trade or force. Those without the stomach or strength to forcibly acquiesce goods from their neighbors, should probably work on finding and being better neighbors. Skills both tangible and social are essential in every environment. Investing in oneself is the best offense and defense in the game of survival. Bettering yourself physically, socially, psychologically and circumstantially is the true investment strategy.
Dystopia surely has it perks for those most capable. A person’s circumstance before the fall of civilization is totally unimportant if it doesn’t help after. The financial investments we make today can and probably will appreciate in relation to the dollars we work for. If you believe in the inevitable downfall of society then put your money in weapons manufactures or bunker construction. Also, there are plenty of pharmaceutical companies that create wonderful products for the losers among us who wish to expedite their demise and numb the ensuing pains of collapse. We have power as consumers and investors to allocate our fake currency towards real societal detriments or benefits. Do you invest in MacDonalds and Hims, or psilocybin and gyms.
We can invest in ourselves and our fellow man to produce a society worth saving. The businesses we put capital towards will shape the future of enterprise. The skills we acquire and teach each other will contribute to communities that are built to survive any disaster. The economic principles of true value derived from work will catch up with us eventually. Practice now what we will ultimately learn the hard way. We either learn from history or become it.