Real Goods Are The Real Money

By: Tom Chatham

We have seen the massive drop in the Baltic Dry Index over the past few months indicating shipping of bulk materials around the world is slowing down to unprecedented levels. We have seen the shutdown and mothballing of hundreds of locomotive engines in the U.S. just over the past few months indicating goods and raw materials are not being shipped in the normal volume as in years past.

We are seeing hundreds of stores run by major retailers being shut down around the country indicating people are not buying goods at the same rate as in years past. Most of our manufacturing ability has been shipped overseas to lower input costs. It has been reported that as many as 15% of the farmers in the U.S. will go out of business this year.

This all means two things. People no longer have the means to buy at will and the amount of goods available will continue to fall until there are severe shortages in the system. The lack of production and distribution will insure that the standard of living of most Americans will drop in the coming months as supply is outstripped by demand in a collapsing economy. As indicated above, the collapse is not coming soon, it is here now.

When goods become scarce, it does not matter what the cost is if you have no money to get them. The lack of basic goods in the economy will be the straw that breaks the American illusion that everything is just fine. It will happen just as sure as the sun rising every morning. It will be a slow process where you notice more and more empty shelves and certain brands become out of stock for longer and longer periods. No production and no shipping carriers means no product on the shelf in time.

When this happens it will not matter to people if we are in deflation or hyperinflation, they will suffer the same in either case due to lack of goods and lack of a medium of exchange with which to maintain their living standards.

If society has the goods it needs at the local level it does not matter what mechanism people use to trade for those items. The trade will happen and living standards will be maintained. Money can be printed at will but real goods must be made from scratch with labor and raw materials. Real goods determine your standard of living and not necessarily the amount of money that exists in society.

Because of this the ability to store and produce real goods at the local level are the only solution to a collapse in the medium of exchange in a country. It is happening now. Fiat money is becoming more worthless by the day and goods are not being produced and shipped as normal. This can only end one way if nothing is done to curtail the lack of goods that people need.

It does not matter if money is little pieces of paper or plastic cards, if the goods are not available the result is the same. The ability of government entities to control either money or goods is a way to control society and force compliance from the people. This is the reason for calls for a cashless society. The government can control money all they want but if they have no control over real goods in a community they really have no control over society.

Real goods trump money of any kind when it comes to everyday living. If you have a years worth of goods stored in your home or the ability to produce them locally, it does not matter if you have a million dollars or no money at all. It does not matter if the store shelves are full or empty. It does not matter if goods are being produced and transported. If you have access to those goods you have what you actually need and not paper promises to get them at some future date for an unspecified amount.

When people think about economic collapse they almost always think about how they will get the money they need to buy stuff. They do not realize that real goods are the actual key to getting by in those dysfunctional times until it is too late. Economic collapse almost always goes hand in hand with the lack of physical goods. You can do without the money but you cannot do without the goods.

In times of monetary dysfunction, real goods become the actual currency society relies on to survive day to day. Real goods can be traded and sold when fiat money is useless. Real goods are the real currency of the world and now is the time to realize that before the monetary crisis prevents the acquisition of those resources. A pantry full of food is worth more than two million in a frozen bank account.

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Posted on January 28, 2016, in Economics, Preparedness and tagged , , . Bookmark the permalink. 19 Comments.

  1. This is the result of Obamacare and other bad foreign trade polices that our current Administration is responsible for!

  2. Absolutely great article, and I wish people could see the light you have shown and make preparations. If we were all self sufficient in at least food production so we could feed ourselves then the collapse would not sting so badly. Again, great article and thanks.

  3. In response to Jan Smith (must be a cousin) you really can’t believe this situation is Obama’s doing. I’m not a fan but let’s be realistic; we did not get in this shape in the last few years. This goes way back & it doesn’t matter what administration is pulling the strings. We just need to do everything we can to get ready.

    • THANK YOU Linda for making sense. These people that just want to blame Obama for everything just pi$$ me off. Our system has been on a downward spiral for years before he ever came into office. By the way I am not a fan of his either, And Jan can you explain how Obama care relates to China not shipping us goods? That would be a interesting correlation.

  4. Every administration has played a part since Wilson’s. However, Obama is responsible for increasing the national debt by TRILLIONS – more than ALL presidents since Washington combined. I think it’s easy now to finally see this was intentional with malice aforethought.

  5. Agree with article and we now need to get extra items that we use daily, I suggest buy extra new pairs shoes and go to thrift stores and buy good used work clothes, ditch the dress clothes unless necessary for work, and other useless items (ex: nik naks, stuff relatives don’t want, un used furniture, sports equip., etc) in the times ahead. I ditched books except for DIY and first aid, home remedies, etc. Cut off friendships with all who aren’t on board, incl relatives for security reasons later. Get with like minded for bartering and defense. One big Q: why has it taken the globalists this long since Wilson, to do an end run, get the guns, and enslave the masses? Some of the globalists are in their 90’s now. This is the reason why others think we are nuts: because decades have passed and we still live normal lives.

    • I think the reason it has taken so long is that the globalists needed time to gain control of all important assets in the world and time to condition the masses so there would be little or no resistance to the coming changes. The fact that a large portion of the electorate is now seriously considering electing either a marxist or a self proclaimed socialist as president says the brainwashing is about complete.

  6. Berean Betty:

    Presidents only spend what Congress allows them to spend. CONGRESS controls the purse strings, not Presidents. It’s just easier to point the finger at one guy rather than at 535 that are the real problem.

    And while Obama (not a fan of him for many reasons) has steered the ship while running up the largest increase, in dollar terms, in history….would you like to guess which president ran up the largest increase in percentage terms ?

    St. Ronnie Reagan. Took office with a 900 billion debt, left with a 2.7 trillion debt. “Reaganomics” was “cut taxes, keep spending and put the difference on the national credit card.

    AGAIN…..Congress could have manned up and stopped it, but choose not to do so. So 200 years to get to the first trillion, and 35 years to get 19 times that. Either the money is getting a lot more worthless (and that actually IS part of it), or we have a REAL problem. (and that is the most of it)

  7. Anyone that doesn’t place the majority of the blame for the debt runup on Obama and the Democrats is a fool. They did it; they’re guilty. Democrat=criminal.

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