Poor Man Survival
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A Digest of Urban Survival Resources
In a prolonged crisis — especially one where the very fabric of
society starts to unravel — money as we know it will likely lose all value. But
then how will you be able to purchase goods and services? Well, if that
happens, it’s back to the good ol’ barter system.
Which begs the question, what types of items make good barter?
There are some pretty obvious things on this list from The
Survivalist Blog — ammo, for example — but there are also a few other items you
might not occur to you as particularly valuable. Until the stuff hits the fan,
that is.
So take notes and perhaps add a few of these miscellaneous goods
to your emergency storage. You never know when they may come in handy.
Many
people don’t know this. It wasn’t long ago when Americans were forced to use
cardboard, wood, leather, clam shells and even fish skin as currency.
During the 1930’s, as a substitute for government-issued money,
Americans turned to local currencies to continue trade -- what they called
“scrips.”
So popular were these scrips (numbering in the hundreds,
probably even thousands), the U.S. government even considered issuing its own
national scrip -- a parallel currency to the Federal Reserve Note. Secretary of
the Treasury, William H. Woodin, none too keen on the idea, shut down the
conversation.
Rather, he ordered the U.S. Bureau of Engraving and Printing to…
wait for it… print more Fed notes. (Surprise.)
As we move through our era’s Depression, history is rhyming in
interesting ways.
Our rise of the Sharing Economy, for example, isn’t anything
new. For obvious reasons, it surged in popularity during the Great Depression.
Our school’s history textbooks largely ignore this, but Americans did more than
just tighten their belts and wait out the storm. They mostly came together.
According to Thomas H. Greco Jr. in his book New Money For
Healthy Economies, “people began to establish mutual support structures,
like workers’ cooperatives, many of which would recycle and repair donated or
broken items. People learned to share what they had, and to by-pass the market
and financial systems. Most of these measures were considered stop-gaps to be
utilized until things ‘got back to normal,’ but in some of them there seemed to
be the promise of more permanent improvements. One of these ‘stop-gaps,’ which
was intended to address the problem of the dearth of currency in circulation,
was the issuance of ‘scrip.’”
Today, along these lines, we have Uber, Airbnb, Craigslist,
Couchsurfing, eBay, Upcycling and much more. All of these have created an efficient
peer-to-peer marketplace to offset much of what has been lost in the old
economy.
Couple that with the rise of today’s form of “scrip” (see:
cryptocurrencies) and you’ve got yourself a mirror image of what happened
during the Great Depression -- and many great currency crises of history.
“History,” Greco Jr. goes on, “is full of examples of successful
local initiatives aimed at providing exchange media, but the Great Depression
of the 1930's saw this done on an unprecedented scale. There were literally
hundreds of scrip issues that were put into circulation by a variety of
agencies, including state governments, municipalities, school districts,
clearing house associations, manufacturers, merchants, chambers of commerce,
business associations, local relief committees, cooperatives, and even
individuals. These issues went by different names, depending on who issued them
and the circumstances of their issuance. Common scrip types were certificates
of indebtedness, tax anticipation notes, payroll warrants, trade scrip,
clearing house certificates, credit vouchers, moratorium certificates, and
merchandise bonds.”
When most people hear the term “black market,” they immediately
get visions of guys with guns moving heroin across State borders. But that’s
only part of the dealings which happen outside of the purview of the State.
They also think that the government needs to “do more” in order
to crack down on these types of illicit activities. Reality is, though, it’s
often government action which puts the incentives in place for these activities
to thrive. The government usually creates so-called 'Black Markets' in the first place, often fueling smuggling operations. This has happened with alcohol, drugs and now with tobacco and terrorists have capitalized on such profits to fuel their enterprises. In other words, government greed and stupidity creates mayhem in the first place!
What we don’t talk much about his how black markets -- like the
ones which popped up during the Great Depression -- save lives where central
planners fall short. The more peaceful, voluntary activity constricted by the
State, the more individuals find clever ways to sidestep the State’s arbitrary
walls to feed their families.
Fortunately,
today’s Sharing Economy is dynamic and efficient as ever. And decentralized,
anonymous and censorship-resistant alternatives to Uber, Airbnb, eBay and the
like are being built right under our feet.
How the Black
Market is Saving Two Countries From Their Governments
Shaun Bradley
Ever since governments began banning and licensing different
parts of the economy, the black market has made sure people still have access
to the things they need. Unstable governments always turn on their own citizens
using price controls, heavy taxes, and even the threat of imprisonment to prop
up their failing systems. As conditions inevitably deteriorate, as they have in
Venezuela and Greece, the underground
economy becomes invaluable to those living through the crisis.
Markets
Survive in Venezuela
The shadow economy refers to more than just the trade of illegal
goods. A grey market, for example, provides legal products distributed through
illegal channels. Since basic things like toilet paper, medicine, and even food
have disappeared from store shelves
in Venezuela, the peer-to-peer network has become the only reliable way to
secure life’s necessities. In desperate situations like this, the existence of
independent merchants can mean the difference between life and death
Even the value of Venezuela’s currency has started to move away
from the government’s control. At one point, the official exchange rate was fraudulently set at 10 bolivars
per U.S. dollar, while on the black market it was trading at 1,000 to one. This
action hurt millions by suppressing wages across the country
and eroding any remaining trust. Inflation has quickly become the most imminent
threat
to the Venezuelan people, stealing the value of their labor and savings. For
years, the bolivar has experienced hyperinflation, increasing the
cost of living almost exponentially.
The State’s desperate response was to institute price controls, but
that has only led to shortages across the board. Luckily, the unregulated
markets have been able to determine the true value of goods and provide vital
support
for the struggling communities. Many people think that so-called price
gouging
is unethical, but isn’t it better to buy what you need at twice the price than
to not be able to get it at all?
Black
Markets Amid Greek Fiscal Mayhem
Greece is going through a transformation of its own -- but in
response to a very different set of circumstances. The Greek people have
endured a series of tax
increases and pension cuts over the past several years to fund debts owed
to the European Union. These austerity measures have created a dire situation
for those trying to secure their financial independence. The result has been
widespread tax evasion, which has helped grow Greece’s underground economy to
nearly 25% of the country’s
GDP.
Surprisingly, it’s not only the poor who are utilizing the
shadow economy in Greece, but also the professional
class.
Those earning large amounts of money are subjected to extremely high tax rates,
driving many business owners and entrepreneurs to either seek better
opportunities abroad or take steps to
conceal their income.
By persecuting the most successful members of society and not
allowing them to keep what they earn, authorities are only encouraging
disregard for the law. Without the grey market in Greece, many more skilled
workers would have already left the country. Even though the black market is
consistently blamed for taking
away
tax revenues, it ironically may be the only thing keeping the debt crisis from
spiraling even further out of control.
Scarcity
and the Consolidation of Power
Scarcity is more than just a mindset; it’s a harsh reality that
people born in developed nations rarely see firsthand. But any time a bankrupt
government seizes control over their citizens’ lives and the economy, the end
result is always despotism. The consolidation of power into the hands of a few
is rationalized during chaotic times but ultimately puts the rights of all
citizens at risk.
Just last year, Venezuelan law enforcement carried out raids
that killed
245
people. There was no accountability regarding whether the shootings were
justified, but reports claim that many of the victims posed no threat and some
were even killed after being taken into custody. Such violent crackdowns are
the inevitable result of governments attempting to maintain control amid the
chaos of broken economic systems.
In 2011, Robert Neuwirth wrote
a report for Foreign Policy that highlighted the importance of this
untaxed, unlicensed, and unregulated global marketplace. He called it “System
D.”
“They say that inventive, self-starting, entrepreneurial
merchants who are doing business on their own, without registering or being
regulated by the bureaucracy and, for the most part, without paying taxes are
part of ‘l’economie de la débrouillardise.’ (Literally 'Economy of
Resourcefulness') or, for street use, ‘Systeme D.’ This essentially translates
as the ingenuity economy, the economy of improvisation and self-reliance, the
do-it-yourself, or DIY, economy.”
The nanny state has done an excellent job attacking anything
outside of the government’s jurisdiction, but a lack of regulation is what
allows for the most rapid growth and productivity. Legislators notoriously overestimate their influence on
the millions of people they attempt to rule over, but ultimately, grassroots
decisions made by individuals have the greatest impact. People who rely on
their own skills and reputation rather than a bureaucratic stamp of approval
are labeled criminals, but they’re the ones providing real value to society in
many cases.
Our
Black Market Future
Merchants in these off-grid markets are often associated with
danger and violence, but in reality, they provide the purest form of voluntary
transactions.
Negative aspects, like organized crime, are only made possible
because of the profits created as a result of prohibition. Without the State
intimidating the public at gunpoint, there would be no incentive for people to
seek out the services of nefarious organizations.
These organic free markets are only strengthened with the
circulation of assets like cash, bitcoin, and precious
metals. Anonymity mixed with technology is empowering people in ways never
imagined. The adoption of cryptocurrencies is bringing the shadow economy into
the digital age and expanding its reach internationally. This new economic
system represents a very real threat to the current financial and political
structures.
However, innovators in this environment have to be careful, and
after the Silk Road was taken down, real legal implications became apparent.
Most famously, Silk Road co-founder Ross Ulbricht was sentenced to life
in prison and targeted specifically for challenging the existing system.
The growing progression towards decentralization he attempted to
catalyze is on a direct collision course with the central banks and their war
on cash.
As the public’s faith in fiat money continues to wane, there will be more and
more opportunities to show the benefits that come from peer-to-peer networks
over central planning. Those who recognize the inherent extortion of the old
system have to lead by example and educate others, regardless of which tactics
of intimidation are deployed against them.
Escaping the Rat
Race with Your Own Business-CD ROM
Yours for another revolution,
Bruce ‘the Poor Man’
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