Posted on 12/27/2021 8:06:19 PM PST by blam
How is it possible to survive a nation with inflation rates of 20%/month and 1700%/year? The answer? The underground economy. This is the level of hyperinflation we have found ourselves with here in Venezuela, and considering the spread of inflation worldwide, it would be well worth the prepper’s time to glean what we can learn here.
Virtually everything you read dictates inflation on this scale necessitates civil war.
Yet Venezuela hasn’t seen this. Why not? Why are the streets not being taken by armed civilians?
While the main reason revolves around 20 years of disarmament and anti-self-defense teachings, I would argue that there is a second reason we haven’t delved into full on anarchy as well: our underground economy.
Underground economies keep people fed.
I’ve lived in four different and fallen South American countries, and it’s been the underground economy which has kept people going in each case.
When I used to work in the Venezuelan oil industry, our salary was taxed heavily just like everyone else’s. As expected, these taxes can quickly make it hard for a family to pay its bills.
But the underground economy? It’s completely unregulated.
I know guys with a hot dog cart who make much more money than engineers down here. And this isn’t new – our world has been like this for many years now. The guy working with the hot dog cart doesn’t pay taxes. He doesn’t pay rent. And usually, (and this is a now an “accepted” practice) these street vendors will run a wire from some nearby pole for their music and lights.
This man is a member of the underground economy. And he is just one of many.
Our stated hot dog vendor is not an isolated case either. He is part of what is keeping this country alive. In all probability, it is the men of this underground economy who likely comprise over half of our GDP here in Venezuela.
More than half of the money generated here is a result of men such as our hot dog vendor. Of course, much of this money also comes from the cartel and Russian mafia, but the point remains: it is the underground economy which is keeping the people of Venezuela (somewhat) fed.
More overreach, more underground.
One thing is for sure. The larger and more bloated the government control is, the greater the underground activity. “Irregular” business is the answer to these controls. It’s simply to be expected – especially in Latin American countries.
I believe I don’t need to explain why.
The government has seized the right to own foreign currency, trapping you in your hyper-inflated national fiat currency? A booming forex black market will spring up, regardless of how hard one attempts to stamp it out.
Store shelves are empty? Well, I know a guy who knows a guy that can get you a 20 kilo pack of cornmeal flour for a bit of arepas (a Venezuelan bread). (You should also check out our FREE Quickstart Guide to help you figure out how to keep a properly stocked larder to help your family ride out troubled times…)
Corruption and trafficking of certain items was already a way of life here. These statist thugs just came into the equation to incorporate it further as a part of our lifestyle. How else do you explain that a simple Venezuelan pilot of a former State President can buy himself a 200 million dollar yatch? Unless this guy works for pleasure and his surname is Onassis, I find that highly suspicious.
Need further proof? The rumor in Caracas is that Ferraris, Lamborghinis and other luxury cars are being brought in for the corrupt elite. And all paid for by our tax dollars.
You can still prepare for this though.
Yes, rampant corruption and government overreach is bad, but it doesn’t have to hit your family as hard as it could if you’ve made some preparations beforehand.
For Venezuelan preppers, getting rid of these insane controls actually worked. It kept us alive.
I sold the inflated money I earned and then bought food, and everything else we needed in the black market. It was the only way we could make it.
But one thing I’ve realized is that there are some underground services which are more profitable than others (outside of the truly criminal). For the prepper considering how he is to survive an underground economy during an economic crisis, one may want to consider the following list of occupations I’ve seen perform well here in Venezuela…
Fumigation
One of the most attractive business you can develop in an underground economy is fumigation. Sure, you need a machine and chemicals, and unless you really know what you’re doing, you can face problems, but this is something most don’t like to mess with. The end result? A lot of potential.
Local regulations do impact some of the people down here with this job, however.
Fast Food
I’m astonished about how extensive this income source is for families all throughout Venezuela. Yes, I do know we Venezuelans love hot dogs, hamburgers, shawarmas, and the like, but it’s simply ridiculous to see the excessive amount of fast food businesses flourishing near my home.
I can’t figure it out, and neither can anyone else.
The best I can figure is this: people like to eat.
In the Venezuelan underground economy, almost every business related to food is going to put food on your table as well. Honestly, these people do so well (such as our previously mentioned hot dog man) that I’m to get my own deep fryer to delve into the market on fried chicken.
Machine Repairs
It doesn’t matter the machine here. If you’re skilled enough to repair it, congrats. You’ve the makings of an incredible underground business. I’ve written about this extensively in the past, but whether it’s HVAC, small engines, cars, sewing machines, farm equipment, or anything else, you will never be short on business in an underground economy.
A prepper should seriously consider becoming knowledgeable in at least some aspect of machine repairs.
House Repairs
Every single house owner will sooner or later need to repair something that is outside of their range of experience. I’ve found here that if your fees are reasonable, you work fast, you do good work, and you arrive on time (a rare combination for a contractor, I know), you will get multiple jobs from the same customer.
I’ve also discovered that the suburbs seem to have more money in their pockets than do many of the other neighborhoods in Venezuela. If you’re going to delve into the world of underground house repairs, that may be a profitable market to dive into.
When the normal economy dies, the underground economy thrives.
The Venezuelan people have been through a lot. Hyperinflation, famine, rampant corruption and crime – we’re not new to any of it. Yet despite all this, people still had to find a way to keep bread on the table and in their family’s tummies. And the underground economy was the way we did it.
That’s the way things have played out here (and are continuing to play out), and will be the way things happen in other collapsing nations as well. The prepper needs to not only be prepared for disaster, but prepared for this form of black market as well.
Strange, he didn’t list diversity trainers or CRT hiring consultants in his list.....
another person reminded me about coffee
which is great
but i guess i didn’t consider it a smaller item but you can fit decent amounts of cans and bags in a relatively small footprint on shelves.
Coffee is on my shopping list as well. I have #10 cans of freeze dried stuff, but the bulk of my current storage is just normal canned goods. Also have a lot of peanut butter (cheap and dense). Think that lasts for a decent amount of time. It may not taste good after a year but would still be a dense source of proteins and calories. Prior to moving I did have a years worth of food, but had to chunk most of it. I miss those super pails.
Get your own freeze dryer. When we have canned goods about to expire, we freeze dry them too.
A wide selection of “Barter” and a
Good skill set.
.
Will be OKAY.
Yes, some repair skills like welding, plumbing and electrician work are probably real potential underground economy money makers. Also really advanced first aid skills will be important.
I don't see the US descending into chaos very quickly. Yes, I see certain lawless cities or portions of cities becoming “no-go” zones. However, a massive statewide economic breakdown would take many months to a couple years and allow folks to stock up on things (although they might be expensive.)
There was a prepper who survived the Bosnia civil war and claimed that the absolutely best trade good/skills were,
(1) Medical skills, medical drugs and first aid supplies
(2) Charged batteries were another supper needed trade good.
(3) Ammunition and firearms were supper tradable items. A good skill would be casting lead bullets and being able to reload ammo. There ways to create primers from volatile chemicals and recycled primer cups.
(4) Anything that was consumable alcohol (wine, beer, distilled spirits)
(5) Safe water and food (it is always good to have a means of either boiling or chlorinating water
Also there are stories from the siege of St. Petersburg/Leningrad during WW2 on what people need to survive for extended periods of time.
Even though the article says, (The government has seized the right to own foreign currency), I read an article that was a transcribed interview with a Venezuelan who had just come to the US and he said things got better when they got a hold of and started using US dollars.
“The prepper needs to not only be prepared for disaster, but prepared for this form of black market as well.”
I didn’t choose Beau as my ‘Apocalypse Partner’ for no reason!
Between the two of us, we’ve got the skills we need to get through just about anything.
Not that I’m asking Mother Government to continue the beatings...
I guess being a “pest control” dude or “Hot dog Stand” guy might not be such a bad thing :)
Pre-1965 dimes, quarters and half dollars. Avoid silver dollars, the alloy is a bit different. Silver fractionals work well too but US coins are easily recognizable.
1/10 oz gold fractional are good for large purchases but command too high a premium today.
Just my two cents, pun unavoidable.
This is my choice too and I think the best one.
“Soylent Green”,
“The Road” and
“Mad Max” are compelling
Movies But I’ve gotten a
Bit Slower lately.
" How is it possible to survive a nation with inflation rates of 20%/month and 1700%/year? The answer?
The underground economy.
This is the level of hyperinflation we have found ourselves with here in Venezuela, and considering the spread of inflation worldwide,
it would be well worth the prepper’s time to glean what we can learn here."
"Virtually everything you read dictates inflation on this scale necessitates civil war.
Yet Venezuela hasn’t seen this. Why not?
Why are the streets not being taken by armed civilians? "
Read the full article and he posted comments for more information, and/or go to the OP source.
Then, be thankful for our Constitution and the Bill of Rights.
Steely Tom ~ Thanks for that. I should have known; the dollar is the world's "reserve currency."
What gets used when (not if, under this cabal in power) the dollar becomes worthless?
Showing up with rolls of silver advertises that you have a stockpile to be robbed.
Showing up with a small handful of old coins that your mother or grandmother left you, and saying as much with tears in your eyes, doesn't make you much of a target.
Actually, there are a lot of unlicensed, non-permitted businesses in the US. Including food vendors. The fact that it’s illegal doesn’t stop it.
In some cities, there’s a whole network of food smugglers, who deliver home-made food from unlicensed kitchens, for a price. Sometimes one of them will use the money they make to eventually get a licensed food truck and go legit, but a lot of them just focus on staying under the radar and try not to get caught.
Sewing needles are a good one to stock up on. You can fit hundreds of them into a pill bottle, but they’re essential for both clothing repair and for stitching closed wounds.
Wedding bands are another method. Get plain gold bands, preferably in your size, as close to spot-price as you can find. If people see you pull the wedding ring off your finger and use it to barter with, you look like just another desperate person. Nobody needs to know you’ve got 3 more in your pocket.
Until the smash and grabs start hitting hot dog stands. Easy target at the window. Closed in with one or two doors. Food and cash for the taking. Drive the entire business away and sell it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.