According to many experts, such as John Williams, Gerald Celente, and Marc Faber, we are headed for a hyperinflationary depression.  The prospect of this is terrifying, and one would be very wise to prepare for this possibility ASAP.  But how do you prepare for hyperinflation.  Well to answer that question let us look at advice from some experts.

Economist John Williams of ShadowStats.com believes the U.S. is headed for a hyperinflationary depression that could be worse than the Weimer Republic following World War I, when people literally used money as wallpaper, toilet paper, and to start fires.  Williams predicts that at the start of the hyperinflationary period which he fears could be as early as this year, money will become scarce and the people will have to rely on a barter system.  Therefore, you should have goods that others would be willing to trade for.  Precious metals such as gold and silver are universally regarded as valuable and thus will likely be exchangeable for goods and services.  Jim Rogers suggests buying a case of your favorite liquor to use in barter, that way if the hyperinflation never comes you can always drink the liquor.

Williams says that “[t]hose who can preserve their wealth and maintain liquidity will have the ability to take advantage of extraordinary investment opportunities after the crises pass.”  This is good news, right?  But how do we achieve this?  Through financial hedges.  According to Williams there are a number of financial hedges one can take.

1)  Buy physical gold and silver.  As I mentioned above precious metals such as gold and silver are likely to hold their value in a hyperinflationary economy, unlike the worthless fiat paper currency.

2)  Invest in real estate.  Real estate also offers an inflation hedge, but as Williams warns, unlike gold and silver, it is not portable which could be a problem during a potential unraveling political system.

3)  Hold some foreign currencies offshore.  Williams recommends “the Swiss franc, the Canadian dollar and the Australian dollar as currencies likely to maintain their purchasing power against the U.S. dollar.”

Williams also mentions taking on debt, stocks and TIPS, but admits those options are riskier and thus implies that the first three are the most promising financial hedges.

Trends researcher and founder of the Trends Institute, Gerald Celente says that to survive the coming currency collapse you need to be as self sufficient as possible.  Those that are self reliant will have a much easier time than those that are not.  This could include, growing your own food, doing your own home repairs, sewing your own clothes, etc. etc. etc.  That way you will not only avoid having to barter with others but can have goods and services of your own to barter with.  Also make sure you have food and water stocked away as well as access to additional fresh water, such as a reverse osmosis water filter.  And be sure to be able to defend yourself by arming yourself or learning self defense tactics.  He also advises getting out of the stock market and like Williams advises buying precious metals.

Celente also believes that people should build communities.  This could be your town, or neighborhood, church, or a book club.  During a crisis, you will have a much easier time if you have the support of a network of like minded people to help you through. 

If you are interested in how a business can survive in a hyperinflationary environment I suggest Gerald Swanson’s book, the The Hyperinflation Survival Guide: Strategies for American Businesses, suggesting things such as developing methods for estimating the internal rate of inflation, never allowing the business’ cash to be idle, and developing an appropriate inflationary adjustment for capital replacement so that the value of the capital does not disappear.

So let us review.  To survive in a hyperinflationary depression you should:

1)  Have goods and skills that are easy to barter such as food, precious metals, liquor, etc.

2)  You should hedge your finances through precious metals, real estate, and safer foreign currencies such as the Swiss Franc.  I would also add buying goods that you use everyday such as toothpaste, canned goods, etc. in bulk now. 

3)  Become as self sufficient as possible.  Plant a vegetable garden, learn to do home repairs, etc.  A self sufficient home, aka “off the grid” away from the city would also be ideal, if possible.  Store food and water and gain access to a clean water supply such as through a reverse osmosis water filter.
4)  Be prepared to protect yourself and your family by arming yourself and/or taking self defense classes.
5)  Build communities of like minded people to work together and help each other out.

6)  Prepare as far in advance as you can.  When the hyperinflation hits it could be quick and devastating for those who aren’t ready for it.