Skip to comments.Grid-Down Collapse: Hard Assets Soar In Value
Posted on 11/06/2012 11:40:32 AM PST by blam
Grid-Down Collapse: Hard Assets Soar In Value
November 5th, 2012
By all accounts, the residents of many hurricane stricken areas of the north east are in the midst of a collapse. While FEMA, the National Guard and private relief organizations are in place and providing some level of assistance, the fact of the matter is that for tens of thousands of Americans, the world as they knew it has completely collapsed around them.
What we are witnessing are the immediate after-effects of what is referred to as a grid-down scenario, where utility infrastructure like water and electricity, transportation infrastructure like food and gas delivery, and commerce infrastructure like electronic banking and brick & mortar trade are no longer functioning.
In some areas there has been a total breakdown in emergency response. Without communications it has become impossible for emergency responders to be contacted. For all intents and purposes, law and order broke down within just a few hours of Hurricane Sandy passing over the east coast. Likewise, medical response was unavailable due to overwhelming demand put on the system by hundreds of people reporting simultaneous emergencies.
Almost immediately after the worst of the storm passed, people in the hardest hit areas began to realize how bad things were. Within 72 hours we had complete chaos. People were fighting for gas, digging through trashcans and standing in FEMA supply lines for hours at a time just for a bottle of water and an emergency ration kit.
The hunt for resources had begun.
Looters were hitting grocery and convenience stores, thieves and armed robbers were breaking into personal residences, and tempers flared.
With essential supplies running low and government support lacking, black markets have sprung up to fill the gap.
What has been theorized in previous commentary about what becomes money when the system collapses, became a reality over the last week.
When it hits the fan the only things of value will be the hard assets in your physical possession.
In one report, the cost of a bag of potatoes jumped to $7, up from $3 before the storm hit. The cost of the box of matches appears more than three times the usual cost, and the loaf of bread is more than double the usual cost. (NBC)
I waited in line for 2 hours to fill up a 5 Gallon gas container. Im willing to sell it for the right price and will deliver! $25 per Gallon OR Shoot us your best offer!! (The Daily Sheeple)
Just got back from trying to deliver 2 generators to Long Island. 220 mile drive one way. Deal was brokered, $7000 cash, for a business owner to open his shop. (SHTF plan)
This is crazy, its like post-apocalyptic scenarios, you know with this gas. Its as important as food and water to people. Its a dogfight out here (CS Monitor)
Residents in the Queens neighborhood of the Rockaways are using anything they can get their hands on to protect their homes after Sandy devastated their area, including bows and arrows Locals say they are arming themselves with guns, baseball bats, booby traps even a bow and arrow to defend against looters. (Liberty Blitzkrieg)
The largest number of complaints are related to increased gasoline prices, he said in a statement, but consumers also have reported possible gouging for emergency supplies like generators and hotels raising rates due to high demand, as well as increased prices for food and water. (Huffpost)
[Editor's Note: During the first economic and financial panic to hit Greece in 2010, citizens of the country scrambled to convert their currency to gold when they thought the system was about to go under... A large portion of Greek commerce has since moved into underground markets.]
Prices at which the Greek Central Bank is selling one ounce gold equivalents are as high as $1,700 (40% over spot), and prices on the black markets are even higher. (Zero Hedge)
Arguing the right and wrong of price gouging is off no consequence. What matters is that prices for key supplies will rise exponentially as their supply dwindles. This is a natural effect of rising demand, especially if that demand is driven by panic buying.
Food, gas, clean water, batteries, self defense armaments, shelter, clothing, ammo, precious metals and related preparedness supplies are a must-have in any grid-down scenario. First and foremost you can use these and other supplies to survive or at the very least, remain comfortable. Second, you can use these items for trade as their value soars.
The north east will recover in due time, just as New Orleans did after Hurricane Katrina. This emergency is limited in scope and the government was already actively employing emergency response plans prior to the disaster. However, as we have seen over the week since Sandy struck, there is simply no way for government to be able to manage a crisis that is spread over a wide area and involves tens of thousands of victims.
What weve learned is that when it comes down to it, those in areas affected by a disaster will have no one else to rely on but themselves.
Having key supplies and tools prepared in advance of an emergency is absolutely critical to your well-being and survival.
Look what is happening right before your eyes and take heed.
You either prepare and stand on your own beholden to no one or you become dependent on others to provide your basic needs and become thier serf. Me I dont want to be beholden to anyone for providing what is needed for me and mine. I certainly dont want to have to kiss some gubberment third class bureaucratic to try and coax some help from them, I dont want some jack booted thug herding me in line and telling me where to stand, sit, eat or sleep. And last but not least I dont want to be shut up in with a bunch of zombies and have to worry about not only trying to get basic necessities but having to fight to keep what I manage to get.
Its your choice you can prep or you can stand around on a bridge waiting for FEMA to bring you a bottle of water, a MRE, a warm banklet and a kiss for your boo-boo and maybe you can even get your picture as you stand there on the national news.
For those who are just starting or are old hands at prepping you may find my Preparedness Manual helpfull. You can download it at:
NOTE! THIS IS A FREE DOWNLOAD. I DO NOT MAKE ONE CENT OFF MY PREPAREDNESS MANUAL!
For those of you who havent started already its time to prepare almost past time maybe. You needed to be stocking up on food guns, ammo, basic household supplies like soap, papergoods, cleaning supplies, good sturdy clothes including extra socks, underwear and extra shoes and boots, a extra couple changes of oil and filters for your car, tools, things you buy everyday start buying two and put one up.
As the LDS say When the emergency is upon us the time for preparedness has past.
Or as the bible says: A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.
NIV Proverbs 22:3
I also like to recomend FReepers ChocoChipCookie Blog The Survival Mom (Please Blog Police let this one slide!) Where you can get lots of useful information like:
There is no greater disaster than to underestimate danger.
Underestimation can be fatal.
What really ticks me off is,
with all this news coverage and footage,
NOT ONE window shutter did I see!
Here in S FL, I go to great lengths to make sure I have shutters for every opening. And not seeing one shutter, in NJ, just tells me they didn’t do anything to prepare.
Well,that’s what you get when you choose to live in a large metro area where your entire existance depends on the actions of someone else.
Dang. You’re already here. Not used to FR working this fast!
Plea for underwear on Staten Island
Wonder if I shouldn’t stock up on some items to sell back east?
If someone will pay $7,000 for a generator I could fill a U-haul with some and other items, wait just outside a storm and bring in the necessary items for cash.
There isn’t any law against that is there?
now that's just sad. Even a poor person should be able to put together a 72hour kit much less a 7 day kit without much cost. There's still a lot of prepper training needed by this country, that's for sure.
How many would actually take such “training” if it were offered?
There’s really no one that isn’t aware of the need,
they just either don’t want to bother with it,
or it is against their “religion”. The religion of state worship.
Does anybody know if lead foil will protect electronic devices from EMP? Say, about 1/32” thick?
You’d be better off looking up that Youtube video about making an emp proof cabinet out of a standard office supply cabinet.
Are you a member of Gougers and Profiteers Local 1313?
True there are even a few FReepers who see no ned in prepping.
Free family preparedness “class” right here:
What has been the most illuminating lesson of all of this has been the speed and timing of this journey into anarchy and chaos. Even before the initial shock wore off the looting of electronics and alcohol was in full force. This gave way shortly to a transition to the search for basic survival goods and shelter. The desperation peak was reached in less than three days and only then did people recognize that government was powerless to help them and they had to take necessary measures to allow themselves to move forward. People regretted that they weren't even minimally prepared to take care of themselves and their loved ones. A tough way to learn!
No one is trading their gasoline for gold in NYC.
This logically leads to one of the most important rules of prepping: G.O.O.D = Get Out Of Dodge. This implies a plan and place to carry it out.
I got dibs on the Cheerios. ;)
I’d never even consider selling it, but I’m willing to donate some of it. Calling local Salvation Army and Red Cross offices now...
Underwear: Many sent clothes but they didn’t think of underwear. They would be hesitant to send “used” underwear but would send clothes they didn’t wear anymore or clothes children had outgrown.
I’m not sure Johnny wears them so he might not see the necessity for them.
People who have no house left lost their clothes along with everything else.
Rule No. 1. is don’t live too close to a large body of water. 2. Have a bug out bag with supplies for at least 3 days. 3. Have a gun and ammo for self defense. 4. Store water and food, then other supplies.
If people don’t follow those rules, they could be in serious trouble just like the ones in the northeast.
Wow. You are really organized.
Mine are just in boxes and stacked.
Thanks but I’ve got a 3000 Watt portable generator I’d like to protect. I have a metal can that I keep some smaller devices in. I’ll still check out the video though ‘cause it sounds better than what I have now. Thanks again.
>> “And not seeing one shutter, in NJ, just tells me they didnt do anything to prepare.” <<
They don’t need to prepare, they have ‘Boma to give them your stuff.
LOLMAO; they’re yours! (Best laugh I’ve had today.)
I’ve always said if you are thirst enough you be surprised how much gold you will be willing to give for a bottle of water.
The key words you’re looking for are “Faraday cage”.
You can make one in any size with wire mesh, a frame, and a grounding wire.
>> “What is this ‘underwear’ of which you speak?” <<
.Dass da pants what you wears down below the crack o’you ass to pleases yo rump thumpa.
Decoration for your beltline when you pants are down around your knees.
We live in NYS and many houses don't have shutters, and on the ones that do, they are simply decorative. Long and short of it, we simply don't NEED shutters.
There's a problem when people start judging others for not doing something they don't need to do just because the person doing the judging needs to do it.
It's legalism at it's finest.
Your judgment is wrong and unjustified. You don't have any idea who prepared and how and cannot make that determination because someone didn't do what YOU thought they should have.
Get over yourself.
I think there’s still plenty that would take a class - I personally had no clue until a few years ago. Thanks to helpful folks like you and Kartographer and some other FRiends, now we’re good to go for about 8 months, not including barter foods/items. But you know, like that tv show, I’d definitely pay a few dollars for an expert to give us an onsite assessment of how good we’re doing, so I see a strong market in that type of individalized service.
That's the first thing I noticed when I saw all the photos. At least a lot of the homes looked to be built on stilts, albeit some were enclosed.
And next time there's a freeze, should we condemn all the Floridians for losing their fruit crop because they didn't prepare by having cold hardy plants growing instead of citrus?
Hey maybe we should go into business! ;-)
Let me relate a friend’s experience with attempting to register voters at a gun show.
Either the people were already registered, or they were too paranoid about getting their name on a list.
You think your standard prepper would hire some “preparedness assessment” business to come out and take an inventory of his stuff?
No way. Too much chance of it being a gov’t front group that wants to know where the stuff is in order to confiscate it.
How do you expect me to find resupply sources? ;-)
We are so tied into the ‘grid’ there’s not much the government doesn’t know or that they can’t find out. If George only knew how much he was right.
You’re crazy. LOL
I wish I had a basement so I could store everything.
Right now I have plenty here in the house but, I also have three different storage lockers with art, furniture and back up supplies.
There are geographically diverse and I should be able to get any of them at some point.
Lead foil is good for gamma and beta radiation. EMP is an "Electromagnetic Pulse", much like when a close lightning strike destroys everything electronic. A steel box is best for EMP protection. It can drain static electric charges and protect the contents from magnetism.
Ammo boxes would offer better protection than nothing, but a gun safe would keep a radio device safe.
These shelves which I bought online, were the best investment I've made recently, next to my firearms/ammo stockpile.