Part 2 - Cash (Ensuring your family survive and thrive during the next financial crisis)

INTRODUCTION
Please refer to my previous article entitled Ensuring your family survive and thrive during the next financial crisis for an overview of this series of blogs.

In this blog I am going to focus on the need to keep a wad of cash stored under the mattress, behind your bookshelf or wherever you deem necessary.

It's already started
We are currently witnessing what I believe is the beginning of the end of our current financial system as we know it.

• In the past month, 3 European banks in Spain and Italy have been purchased for the huge sum of 1 Euro a piece.
• Venezuelans are cannibalizing each other because their currency isn't worth wiping your rear end with anymore.
• Puerto Rico has gone backrupt.
• Illinois is bankrupt and will be closely followed by New Jersey.

When you see a cockroach in your house, you can be sure that there is an intrusion somewhere under your floorboard, behind your wall, in your roof or in your garden. You get the picture...

All the financial institutions and sovereign currencies have huge dependencies on each other which means that if one goes down (of any decent size), they all go down.

In the past we have seen some countries currencies blow up due to hyper inflation (e.g. Weimar Republic) however, there was never as much global dependencies, asset cross holdings or the 1.5 quadrillion derivatives market (highly dependent on interest rates being somewhat normal) which didn't even exist.

So let's agree, keeping a bit of dry powder in the form of paper currency is not a bad idea.

Getting prepped

In that case of a credit freeze or banks lock down on cash withdrawals, keeping a stash of cash will get you out of a hole temporarily. Please be aware though, there are of course inherent risks with holding physical cash:

• Counterpart risk
  • Hyperinflation
  • Government Bankruptcy
  • Stores refusing to accept
  • Government demonetizing your cash
• Theft

Having said all that, I would imagine if there is a credit freeze or the banks have a daily withdrawal limit (Like the ones Argentina and Cyprus already implemented), stores and other people will still accept cash temporarily.

I wouldn't put all my eggs in one basket though. I would be inclined to keep 5-10% of your overall wealth/survival fund in cash. We will be moving onto a new monetary system whether it's cyrpto currencies, the SDR or something else. Don't be alarmed though, we move onto a new monetary system every 40 years or so. It's just par for the course.

If you have spare savings in the bank, now might be a good time as any to withdraw it and store it at home.

Be your own central bank.

Where to hide your cash?

Sales of safes globally have risen dramatically since last year because of negative interest rates and other concerns about our current financial system.

As well as conventional safes, people are also buying "hidden safes" to store their wealth.

There are a lot of places to hide your cash. I will leave this one up to you to plan, there are plenty of videos on youtube.com dedicated to this topic.

Remember though, this is a 5 part series, you need to read through my other blogs to get the big picture here. You need to be hedged with food/water/supplies, precious metals, crytpos, cash and have a community. Your life will be a lot easier if you prepare properly and hedge your bets.

Albert Einstein once said "A great thought begins by seeing something differently, with a shift of the mind's eye".

We are entering into a new phase of human history whether we like it or not.

There will be a massive transfer of wealth, fortunes will be made, fortunes will be lost. Make sure you and your family are on the right side of this trade.