Tuesday, November 16, 2010

Preparing for Inflation

Inflation is coming.  I feel it in the air.  Commodity prices are insanely high.  Oil prices are rising.  That all means the cost of producing and transporting basic necessities like food and clothing are going to go up dramatically.  Sooner or later, manufacturers and producers have to pass that cost on to the consumer.  When you add in the effects of a weak and watered down dollar, the coming inflation could be pretty dramatic.

The best thing we can do is prepare.  We don't panic.  We don't hide.  We get ready.  If you do not already make storing up 6 months to 1 year of basic food a part of your emergency fund, then please begin to do so now.  You will be glad you did.  I will discuss the subject in more detail in IOU NO MORE 2.0, which should be out early in 2011.  But for now, if you have any questions about starting a Food Bank, then send us an email and we'll be glad to answer them.

I recommend buying some extra clothes as well.  Watch for sales, clearance racks, etc. and buy some extra jeans, jackets, sweaters, sweatshirts, shoes and the like.  This is especially true for articles made from cotton.  Cotton prices have shot through the roof and are headed to the moon.

One more thing, while I'm thinking about it.  Plan now to grow at least some of your own food next year.  

B and I have already begun our 'storehouse' and are mostly done.  We feel very good about our readiness.