(Tia goes over possible scenarios regarding financial hyperinflation where using gold and silver jewelry as opposed to coins and ingots in case of confiscation. Homemade MRE’s are brought up as well to set up now in case of hard times.) 

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Russ: darling….

Tia: uh-huh.

Russ: we’re working on this evening currency collapses.

Tia: uh-huh. Peso, whoosh….

Russ: right.

Tia: Lira, whoosh, pound is teetering a little bit, Deutsche Mark is rising, American dollar is having problems.

Russ: okay. Now hyperinflation, are we going to see that in scenarios A, B or C or all three?

Tia: hyperinflation, a little in B and a lot in C.

Russ: okay. Now what I’m seeing or what I’m reading here is that it’s possibly the government trying to fix the national debt by monetizing it.

Tia: uh-huh.

Russ: in other words hyperinflate the dollar, then devalue it and issue a new dollar thereby wiping out the debt and us.

Tia: uh-huh, pretty much so huh?

Russ: okay.

Tia: whose idea is that though?

Russ: one of the contributors to this magazine.

Tia: oh, about the government….

Russ: well it’s been done before.

Tia: uh-huh. When was it done last?

Russ: well let's see, let's take Uruguay for one thing.....

Tia: uh-huh.

Russ: being as we're working with their currency lately.

Tia: yes, I heard about that.

Russ: I would assume that that’s exactly what they did at one point.

Tia: uh-huh and it’s been done many times. Sometimes it works, depends on the economic situation, sometimes it doesn’t work. If you take the Deutsche Mark in the 1920s, they tried that and it made it worse.

Russ: they tried to issue a new one then?

Tia: uh-huh.

Russ: and it made it worse?

Tia: yeah and they were issuing new ones so often it may be even more worse.

Russ: hmm okay.

Tia: yeah, you'd have Deutsche Mark’s that were okay one day but the following day were absolutely worthless.

Russ: now our dollar bills are backed by gold right?

Tia: uh-huh, to a certain extent yes.

Russ: okay but that gold amount they're backed by goes down….

Tia: uh-huh.

Russ: and that’s why we....our values become less valuable.

Tia: that’s correct.

Russ: okay cool. So what about all the gold that we have in Fort Knox?

Tia: uh-huh.

Russ: that’s sitting there to back up our dollars then right?

Tia: that’s correct.

Russ: okay. Now, in looking at the future we need food, fuel, water and communication.

Tia: uh-huh.

Russ: then we can start working on putting money aside in coins or precious metals.

Tia: uh-huh.

Russ: okay. Now in Cambodia, when the Keymer Rouge took over….

Tia: the Khmer.

Russ: the Khmer Rouge, thank you…..the country collapsed.

Tia: uh-huh.

Russ: but people still used gold and silver at current market prices they received over the radio to buy goods and supplies.

Tia: uh-huh.

Russ: I'm assuming we can do the same thing.

Tia: yeah but the thing to watch out for is if they make precious metals illegal….

Russ: right.

Tia: then you are in really deep trouble economically wise.

Russ: you mean like FDR did with gold?

Tia: that’s right. So what you do is you buy gold jewelry.

Russ: hmm, Johnny?

John: uh-huh, got it.

Russ: the man over there.

Tia: uh-huh, Mr. Gold Dealer.

Russ: okay, that’s a good idea.

Tia: because that way they can’t take it away from you whereas coins and stuff they can take away from you.

Russ: okay, now on the currency with situation A, you mentioned that we don’t have a problem with the collapse.

Tia: no.

Russ: okay, that's merely.....we’re working with the same currency we're working with now?

Tia: uh-huh.

Russ: just it's less valued or something?

Tia: yeah.

Russ: that’s how it is?

Tia: uh-huh, less valued on the economic international market.

Russ: okay, so in other words, the money I make at work….

Tia: will still buy the same amount in your country…..

Russ: right.

Tia: but if you wish to buy foreign goods, they'll cost more.

Russ: oh I see. But won't that encourage more domestic manufacturing?

Tia: uh-huh.

Russ: that’s good then.

Tia: yes.

Russ: bad for the world, good for us.

Tia: uh-huh. It's good for many things.