What would you do if you knew that hyper-inflation would be upon us by this summer? Stop and think about it a bit. Would you buy some basics now? Would you sharpen your skills at finding discounts? What if gas went to $8.00 a gallon by this summer? How would that affect you? Would you buy a super efficient car? Would you sell your second car and try to car pool? Would you still take a vacation? How would it affect the type of vacation you would take? Would you add insulation to your home? Would you try to get a second job to help pay higher costs? Would you finally put in a garden? These are a lot of “what if’s” but I’m trying to think of them.
Just in case. I read a disturbing article tonight about the risk of war with Iran. The author thinks it’s very likely to happen early in 2012.
You’ve heard about the saber-rattling in the Gulf of Hormuz. Some say the US has started the fight by imposing sanctions, causing the currency of Iran to deflate in a huge way. Some say Iran is building a nuclear weapon. Some say that the US is preparing to go to war with Iran. Some say if the Gulf of Hormuz is closed it would drive oil prices very high. Some say a war with Iran would drive oil prices to $200 a barrel. That translates to $8 a gallon for your gas tank. Who knows how long that price could stay high?
Whenever gas prices are higher, the cost to transport goods to stores is that much higher. Then there is the increased cost to industry for the power needed in manufacturing. Our economy and world economy would not handle such price increases well. And our infamous national debt would increase by trillions from this new war.
Consider if you could do a few things to help your family in case this happens. I think it’s smart to try to find ways to cut your energy usage and increase your home insulation. That will help you no matter what happens or doesn’t happen. Learning to cook more meals at home, planning a garden for Spring, buying basics on sale, are all wise things to do, in my opinion. They will help you come what may. I wouldn’t get extreme about it or spend too much money; just use common sense.
Click here to read the article I read at ChrisMartenson.com for an assessment of the risk of war with Iran early in 2012. I hope all of this will evaporate and you can call me a worrywart, but I believe in keeping an eye on world affairs to be prepared. Click on labels below this post for ways to do that.
Some of the most helpful tips, in my humble opinion, is Shrink Your Energy Bills with Targeted Home Improvements.
Update: I changed the title of this post to reflect the nature of the ideas here. The actions suggested, lowering your energy costs, gardening, cooking more meals, etc. are really frugal. Being frugal is not a bad thing. It just means getting the most value for your money, time, and energy. To me that’s just being smart. I hope you see it that way too.