Becoming the Bank in TEOTWAWKI
By: Deleted for OPSEC
Several very knowledgeable people have discussed a great many topics regarding preparedness in case of an economic catastrophe in our country. Whether it is inflation, deflation, or stagflation, the economic impact on our currency could be severe. That is why, in tandem with all my preps including a paid off, well-stocked retreat with a water filtration system, solar/wind power generators, fuel and farming gear and all the necessary supplies, I have also positioned myself to act as an interim bank/mercantile/co-op for day-to-day purchases until a new currency is established by the government. There will probably be a period, albeit a short one (I’m guessing 6 months or so…maybe longer) where US dollars will not be the preferred medium for exchange. I feel that some will barter directly for food with whatever goods or services they may have, but what does one do when they do not possess something that the other party covets or desires? It will be necessary for something to serve as a “store” of value.
The biggest problem is though, that whatever is used, it will need to be available in several small denominations and be easily recognizable to all. People tend to gravitate towards the familiar. The closest thing to our old beloved dollar will be pre-65 coinage, recognizable .999 silver bars/coins and our current 75/25 nickels and pre-82 pennies. Gold will also be coveted, but only for larger purchase in my opinion, as even a gram of gold will far exceed the purchase price of most goods needed for day-to-day living expenses. After assessing the demographic surrounding my retreat, I discovered that I had about 1,000 people in a 10 mile radius. I then established what the current AVERAGE dollar amount is for Americans to have for cash-on-hand at any given time. After pouring over several statistical analyses regarding this issue, I’ve found that that number rests between $80-$100. That basically means that for each person (man, woman and child), you would need 2-3 ounces of silver or a gram and a half of gold for each person. Your base coinage numbers would be at coinflation.com values.
The key to all this, is to not just put aside one ounce and one gram increments of bullion. You need that dollar value to be reached with a diversified breakdown of coinage and bars that allow the populace to be able to make multiple purchases with their $80-$100 worth of currency. This is where 90% dimes, quarters, half dollars, fractional bullion and quality base coinage come into play. Let’s take my 1000 person populace as an example. To serve as the “bank” for that amount of people, I have put aside these denominations:
30 ounces of gold consisting of:
(200) one gram bars, (50) 1/10 oz coins, (12) ¼ oz coins, (6) ½ oz coins, (10) 1 ounce coins and one 100 gram bar.
2200 ounces of silver consisting of:
500 ounces of Premium bars ranging from 1-10 ounces
500 ounces of Silver Eagles
500 ounces of Premium Silver rounds (Engelhard, Johnson Matthey, Maples)
$1000 face of 90% coinage ($500 in dimes, $250 in quarters and $250 in half dollars)
$2500 of base coinage consisting of:
$2000 in Nickels
$500 in pre-82 pennies
The above amounts are worth somewhere in the neighborhood of $127,500.00 at today’s “spot” value. That means, I am a little more than 25% above what I need to operate as an interim “bank”. That additional 25% will be necessary, as you still have to have additional liquidity to provide security for your “bank” and provide extra (float) money for those that wish to secure extra funds through collateralization or outright sale of their goods. People will still want “loans” to help get them through, and this will mean that if one wishes to act as a “bank”, they need to be prepared to lend and take in collateral for the loan, or be willing to act as a “mercantile” or “co-op” as people will not have a lot of money, but may also have goods that the “bank” can buy and then re-sell to others in the community. You won’t be able to act as our current-day, money-grubbing, greedy banksters do. You will need to be a staple of the community, helping others and acting as a “conduit” for exchange in a noble manner. Anything else will lead to a good old-fashioned tar-and-feathering or worse…and rightfully so. You will still have to have excellent security too, as banks have been, and always will be…TARGETS. Do not take being a bank for your local community lightly. You are definitely breaching OPSEC in many ways by acting in such a manner. However, SOMEBODY needs to do it, but you better be damn sure that your neighbors are as committed and endeared to you as you are to helping them.
Another necessary item will be a VERY LARGE BUILDING with a stock yard to serve as your center for exchange. I would definitely recommend that you build it in such a way to house a myriad of goods and products. Everything from food to livestock, to material goods such as guns, ammo, and medial supplies will need to be stored there. You will also need, of course, a vault. You’ll have to work hard, but being the center of exchange for a community has its benefits as well. When you are just a consumer, you eventually run out of money. When you are the bank/mercantile/co-op, you have continuous flow, and can make a small amount on each transaction to be able to maintain and even grow your wealth…even in a bad time. This is not a license to fleece people by any means, but most people will not begrudge you a reasonable profit for the services you provide to the community as long as you are compassionate, charitable, and friendly to all who patronize you. I am sure others will have more to add to my thoughts, and I welcome all your ideas, criticisms and additional input to becoming the “bank” in TEOTWAWKI.