The Underground Economy and Silver

By: Tom Chatham

Many people have heard of the underground economy and some even use it today to some extent. It encompasses those that work off the books to earn money. It makes it possible for some that earn a little money to keep most of it by not reporting it and having to pay taxes on it. It is not much money that they save in taxes but to those that earn it, it makes a lot of difference in their lives. It is their way to survive in a system that is stacked against them.

With the economy becoming worse every month for the producers in society, a new system will need to take over when the current one becomes untenable. Those that see the writing on the wall need to take the steps now to prepare for this change so they are not forced to utilize the state run system that will follow. As bad as it is now, when the economy fails, the government will move to control all commodities and transactions. This will be the mark of the beast system many now talk about. No one will be able to sell or buy without the government knowing what you are doing.

This is the next stage of the government control grid that will tighten the reigns of power even more in the elites favor. With total control of everything sold, the government will be able to deny resources to selected groups or individuals that do not comply with government rules. This will be the mechanism to subdue the population and force compliance of the masses for the enrichment of the leadership.

You will not be able to buy more than your delegated share of goods. You will not be able to stockpile extra resources. You will not be able to buy restricted products that can be used against the government. You will not be able to save any substantial amount of money for later use. You will not be able to shop around for the best prices as the government will set the prices you will pay for everything. You will be totally controlled by the government according to their desires.

The only way to avoid this outcome is to have the ability to buy and sell outside of government control. This means you will need to be a part of the underground economy or black market as some call it. This ability to buy and sell outside of government scrutiny will enable you to retain some of your freedoms. This is one of the weapons needed to fight a tyrannical government and win.

The ability to buy goods and services outside the normal channels allows you to negotiate the price you are willing to pay and to find the products you want to buy. It allows you to get the things you want, even if it is government controlled or restricted. It is the free market at its most basic level.

To have an underground economy there are four things that are necessary to insure it functions properly.

Producer- This is the person who produces the product or service that the market place requires. This person can sell directly to buyers in the local economy but often requires someone else to sell in distant markets.

Middleman- This is the person who brings products and buyers together. He buys from the producer and transports the products to distant markets to complete the sale of goods.

Buyer- This is the end user of the goods and services. The buyer dictates what the demand is in the market.

Medium of exchange- This is the payment method used in commerce. A robust market requires a payment system that is agreeable to all parties.

The producer is the person that creates goods from raw materials and creates usable items that are in demand. This can be anything from food to tools and furniture to weapons. The producer has the skills needed to make things that others cannot. The middleman is necessary when products must be transported to distant markets that producers do not have the time or means to reach on their own. The buyer dictates what products or services are wanted in the marketplace. They are the end user and establish demand.

The medium of exchange can be anything agreed upon by the market place. It can be paper, rocks or metals. The most used medium over the ages has been gold and silver. They are easy to carry and are easily recognized. These metals are scarce and cannot be produced out of thin air as other things can. This gives them the stable properties that make a good medium of exchange.

It has been said that gold is the money of kings, silver is the money of the rich and barter is the money of the poor. Today you might say that gold is the money of the rich, silver is the money of the producers and barter is the money of the poor. Gold is expensive and difficult to use except in large transactions. Silver is less expensive and more available to most people. It is silver that holds the most promise for future trade in the underground economy.

The utilization of silver to transact business allows the buyers and sellers in society to control commerce and the distribution of wealth rather than the government. The possession of gold, silver, products or skills are the hard currencies that allow society to prosper. These hard currencies prevent the mis-allocation of wealth and resources that occur when a government entity has the power to print a substitute that can be exchanged for real wealth. The ability to print and control this substitute allows government to control commerce and the business system and the population with it.

The ability to leave this substitute system which is fraught with corruption allows society to prosper at a rate set by society and not the government. In the future it will be necessary for anyone that wishes to retain any freedom to utilize the underground economy to maintain a reasonable standard of living not controlled by the government. This must be accomplished by the cooperation of individuals in society that understand the need for this kind of system.

With the steady corrosion of value in the dollar today, it is imperative for groups to form and set the standards for the underground economy of the future that they will depend on to survive outside the confines of government. There are many barter groups around the country and this is a good start but more needs to be done in the short term to coordinate the system.

There is a need to determine what skills and products are available and what the price in silver will be. A standard price/value scale needs to be determined to act as a universal starting point for commerce in the underground economy when full implementation occurs. The pay rate for labor, the cost of farm products, the value of wood and timber products etc…, all need to be discussed now while there is time to coordinate this system nationwide with various groups.

A good starting point is 100 years ago when gold and silver were the primary mediums prior to the FED taking control of the system. Back then a good annual income was about $600 a year. An acre of land sold for about one silver dollar. Eggs could be had for around 20 cents a dozen and butter 25 cents a pound.

This starting point is just that, a starting point. Some products will command a higher price in some areas and labor will be higher in some markets. The free market will adjust these local rates once the system is under way. Those that desire to operate in this type of free market need to know now where the products and skills can be located and everyone that is able needs to begin the process of storing the necessary silver to trade in this system. Those that lack the funds to store silver will need to insure they possess skills to trade or have the means to produce a product to sell.

One benefit of accumulating silver at this time is the fact that it is under priced relative to past value. Six hundred silver dollars is equal to a years pay in 1900 but can be purchased for about ten thousand dollars at this time. Those that see this type of system as necessary in the future have the opportunity to save for future purchases at a discount now.

When the current system fails and the government attempts to gain even more control over the population with a new system, those that wish to continue operating in the free market need to have the mechanism to do so. It is likely the government will outlaw any system that they do not have complete control over. The ability of the bankers to force the population to use their money at the value they set will leave many in a desperate situation they cannot escape and find difficult to survive in. An underground economy utilizing silver as the primary medium of exchange will give many the means to live outside the government system and continue living as free men rather than slaves to the system.


Posted on May 20, 2014, in Economics, Preparedness and tagged , , . Bookmark the permalink. 3 Comments.

%d bloggers like this: