This story has been out for a few weeks now but it’s important to re-visit it in case you have not heard of it, or just need to hear it again.
The people that run Overstock.com are preparing for change. We’re always told to embrace change after it happens, but rarely told to prepare for it. What change is Overstock.com prepared for? They are preparing for the collapse of the dollar and the temporary collapse of the U.S. banking system.
How would that be possible? Right now, we trade pieces of paper called Federal Reserve notes or digits on our debit cards for goods and services of value. The dollars are backed by the full faith and credit of the U.S. Government; a government that can’t balance a budget or stay under debt ceiling. So right now, we trade stuff of value, goods and our time, for paper or digits on our card because we have confidence in the system. When that confidence is lost, then we have problem. No one knows for sure what will trigger that.
So imagine a crisis that shuts down the banks for a short time. Your debit and credit cards won’t work. Would you be able to buy food? If you have cash, would you get to the store before the shelves clear? If the banks are closed, would the stores even be open? Are the stores prepared for cash only buyers? Will the stores accept gold and silver?
There’s a lot of unknowns including the timing of any crisis, so it’s probably a good idea to have some food on hand. It’s probably a better idea to have some storable emergency food on hand. The shelf life can be anywhere from 15 – 25 years so you won’t have to worry about spoilage in the near term. Plus, it comes in portable containers if you have to be on the move.
Here is a recent interview of Patrick Byrne, CEO of Overstock.com on the Ron Paul Liberty Report. After that, is a short talk by Jonathan Johnson, chairman of Overstock.com