Some of my personal experience ----we went thru hyper-inflation in
ecuador (as fresh water lobsters farmers). It did affect us. This
was as commercial farmer though.
1. The government set minimum wages higher nearly every week. Had
we only had a sucres account - we would never have been able to keep
up with wage increases. We did have a dollar account and bought
sucres on pay day - the only reason we could continue to pay
employees.
2. When we were trying to get to the airport to ship product, hungry
peasants in large gangs blocked the roads - cash payoffs were
required to continue down the road. One time they stole the truck,
which we later retrieved in Colombia of all places. Peasants
demanded more cash than was in the bribe pocket that day...
3. Armed guards were needed to go anywhere, even into the grocery
store (one to guard the vehicle, one to guard the food at the
checkout)
4. The only way to ship anything was to pay off everyone, including
the secretary. If the secretary wasn't paid off, you couldn't speak
to the next clerk, and so on. If you missed paying off the loader on
the tarmac - your product "missed" the plane, etc.
5. Food prices for workers (who we housed on the farm) rose weekly -
significantly at times. Some of their food was grown on the farm.
6. Armed guards were needed 24/7 to keep the local peasants from
slipping onto the property to steal anything that wasn't bolted down
(water hoses, buckets, you name it). And steal they did, even with
armed guards.
7. Most of the food for the lobsters was grown on the property,
but...
8. ...the entire operation required electricity. We had our own
huge generators, but fuel prices for diesel went up continuously in
terms of the local currency.
9. The place was still under construction, and construction costs
escalated - loans were 100% unavailable.... unless the bank thought
they could raid/steal/attach money from a non-Ecuadorian currency
account (preferably a dollar account).
10. Taxes rose - although very few seemed to bother paying them,
they didn't have quite the same heavy arm of government that we have
here.
We left in the midst of the collapse of their currency, it was
impossible to do business under those conditions.
Which is why I watch the "gold" warning bell - it's ringing and
warning of hyperinflation here in the US,,,, when it unfolds I
suspect there will be an effect on homesteaders. How much will
depend in part on what level of self-sufficiency has been reached.
Some here use tractors? watch fuel costs in a hyperinflation. Some
here buy chickens? watch shipping costs & chick costs. and so on....
I figure whatever still needs to be acquired off-property is
something each homesteader needs to look at and have a plan for.
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