This isn't exactly what I'm doing, but it's the same general idea as applied to the current situation in the US. I've talked about Dmitry Orlov's Post-Soviet Lessons for a Post-American Century many times in past posts.
Often when people hear about the possibility of economic collapse, they wonder: "Let's suppose that the U.S. economy is going to collapse soon. Why is this even worth thinking about, if there is nothing I can do about it?" Well, I am not a professional investment adviser, so I risk nothing by making some suggestions for how one can collapse-proof one's investment portfolio.
The nuclear scare gave rise to the archetype of the American Survivalist, holed up in the hills, with a bomb shelter, a fantastic number of tins of spam, and an assortment of guns and plentiful ammunition with which to fight off neighbors from further downhill, or perhaps just to shoot beer-cans when the neighbors come over for beer and spamwiches. And, of course, an American flag. This sort of survivalism is about as good as burying yourself alive, I suppose.
The idea of stockpiling is not altogether bad, though. Stockpiling food is, of course, a rotten idea, literally. But certain manufactured items are certainly worth considering. Suppose you have a retirement account, or some mutual funds. And suppose you feel reasonably certain that by the time you are scheduled to retire it won't be enough to buy a cup of coffee. And suppose you realize that you can currently buy a lot of good stuff that has a long shelf life and will be needed, and valuable, far into the future. And suppose, further, that you have a small amount of storage space: a few hundred square feet. Now, what are you going to do? Sit by and watch your savings evaporate? Or take the tax hit and invest in things that are not composed of vapor?
Once the cash machines are out of cash, the stock ticker stops ticking, and the retail chain breaks down, people will still have basic needs. There will be flea markets and private barter arrangements to serve these needs, using whatever local token of exchange is available; bundles of $100 bills, bits of gold chain, packs of cigarettes, or what have you. It's not a bad idea to own a few of everything you will need, but you should invest in things you will be able to trade for things you will need. Think of consumer necessities that require high technology and have a long shelf life. Here are some suggestions to get you started: drugs (over-the-counter and prescription); razor blades; condoms. Rechargeable batteries (and solar chargers) are sure to become a prized item (Ni-MH are the less toxic ones). Toiletries, such as good soap, will be luxury items. Fill some shipping containers, nitrogen-pack them so that nothing rusts or rots, and store them somewhere.
After the Soviet collapse, there swiftly appeared a category of itinerant merchants who provided people with access to imported products. To procure their wares, these people had to travel abroad, to Poland, to China, to Turkey, on trains, carrying goods back and forth in their baggage. They would exchange a suitcase of Russian-made watches for a suitcase of other, more useful consumer products, such as shampoo or razor blades. They would have to grease the palms of officials along their route, and were often robbed. There was a period of time when these people, called "chelnoki," which is Russian for "shuttles," were the only source of consumer products. The products were often factory rejects, damaged, or past their sell-by date, but this did not make them any less valuable. Based on their example, it is possible to predict which items will be in high demand, and to stockpile these items ahead of time, as a hedge against economic collapse. Note that chelnoki had intact economies to trade with, accessible by train - while this is not guaranteed to be the case in the U.S.
A stockpile of this sort, in a walkable, socially stable place, where you know everybody, where you have some close friends and some family, where you own your shelter and some land free and clear, and where you can grow most of your own food, and barter for the rest, should enable you to survive economic collapse without too much trouble. And, who knows, maybe you will even find happiness there.
At a rate of inflation equal to over 100% per year, but down from 360%, so just "marginal". Kind of like "transitory" I guess.
