Black Market Shopping -- Urban Survival Techniques

This is the third in a series of Urban Survival Techniques essays about Protecting Yourself in case of economic or monetary collapse. This urban survival techniques article based on GT's street smarts discusses how it will become necessary to deal in the black market when TSHTF.

The black market is really the free market. A free market is where you can buy and sell whatever you wish. Governments don't like that. Those in control of a government at any particular time always have some agenda as to what should be available, and how, or not be available at all or who should be able or not to be able to buy and sell what is available. That is always for some so-called “moral” reason, to ensure that those in government get their cut, or to protect the profits of those contributing to keeping the particular government in power. Such interference invariably leads to black markets arising. In normal times, black markets are confined mainly to illegal products and activities such as drugs, gambling, and sex. When TSHTF, government will start controlling everything. That control will create shortages of even legitimate products and services. That, in turn, will lead to a massive increase in black market activity. You won't even be able to get many “legitimate” vital products and services in the above-ground aka white market. You're going to have to learn to deal in the black market.

The second in the series is Avoiding Trouble for Urban Survival.

One of the most important and civilizing activities in a society is trade. Free and open trade, when allowed, has resulted in huge benefits to everyone. Unfortunately, governments are congenitally unable to resist interfering with free trade. The result is always black markets. The U.S. dollar (and other currencies) will finally collapse because they are worthless fiat paper. It is only a matter or time. When people finally realize that has happened, there will be an explosive boom in the black market. Participating in the black market will be the only way you will be able to ensure your urban survival.

You may not want to get involved with the black market. Sorry about that; you won't have a choice < That is, if you want to survive.

When a financial meltdown occurs, the banks will close. People won't be able to the money they have deposited.. As Argentinians discovered back in about year 2000, their ATMs will say something like perdoneme (sorry, you are S.O.L.). They were able to survive only by barter, writing I.O.U.s, whatever. They had to operate outside of the established marketplace. That's the only way they could get food and other items they needed.

You may have already participated in the black market. If you have ever bought illegal drugs or paid for sex, you've participated in the black market.

There can be a lot of violence behind the scenes in the black market, but most of the dealers observe an unwritten rule where you can kill your competitors and other dealers, but keep the customers out of it.

Every day, if you are in or near a busy commercial area, and you observe carefully, you may see some drug transactions. The businessmen, and even the secretaries and other minions, want drugs and they are willing to pay a lot of money for them. But these customers don't want the violence that comes with the drug trade. That is handled out of sight of the customers' view. A drug transaction is very quick. It happens so fast that if you're not looking for them, you'll miss them. Somebody drives up to somebody else standing on a street corner. In less than thirty seconds, the deal is done. Drugs for cash. You will see this expand to include all kinds of products and services when the financial -- money, credit -- collapse creates chaos and shortages.

While the potential for violence and getting ripped off or worse is there, it probably won't be a major factor for most people. The likelihood is that black market will be more civil than you might imagine.

How will the black market expand? Say that the local grocery stores and drugstore have been cleaned out. People will still be looking for food, medicine, and other supplies. The store parking lots will become places for people to meet for bartering. Those in the neighborhood are accustomed to going to those places to shop, so naturally they will turn into open air markets.

As it gets more difficult to buy things you need legally and openly, participation in the black market will increase. In Italy, the black market has become so large, it has been estimated to comprise about 1/3 of the entire economy.

In Italy, even things you would expect to be done in the white market, are done black market. for example, a lot of light manufacturing, is done by hundreds of thousands of individuals in garage workshops. Those having real good garage workshops or machine shops can achieve quite an output that matches the quality of many mass-produced products.

In the U.S. and other countries, “private” drug labs (really private) can manufacture or process all sorts of illegal drugs. The products can range from “meth” and “crack” to "rufies" (Rohypnol), the “date rape” drug, and more. “Legitimate” drug companies don't want to make such products as “roofies” because of potential legal and product liability problems. But, there's no problem getting what you want on the street.

There is probably ongoing research by the those in drug trade as how they can use gold and silver instead of suitcases full of $100 bills. A funny story related by GT is that he says he once was watching a cop shaking down a drug dealer. The cop took the cash and jewelry, almost everything. He didn't take a Krugerrand (a gold coin) that the dealer had. The cop didn't recognize the coin as being gold, so the dealer did some fast talking, telling the cop that it was nothing more than a cheap copper good luck charm. Since most people have not seen golds of any kind since 1933, it is highly probable that they won't recognize gold coins as gold, but will just assume that they are copper. Anyway, as GT related it, the cop, to show the dealer that he wasn't all bad, let the dealer keep his "good luck" charm. On the other hand, that was some years ago. Things may have changed by now, so fast talking wouldn't help. The cop would probably take the coin along with everything else.

You will have to participate in the black market even if you have prepared by buying precious metals and food and other things you will need. Even if you have a misguided reluctance to break arbitrary government laws, you will eventually have to buy (or sell) something in the black market for your survival.

No matter how well you may think you have prepared, you cannot have thought of everything. You will have to trade to get some things you need. There are a couple of ways you could be “encouraged” to enter into black market transactions. You might develop a medical need or you might want to help out a neighbor. Medical needs do not necessarily have to be emergencies. You might have forgotten something you should have added to your survival disaster kit or to your survival first aid kit. It could be just something as simple as aspirin Pepto-Bismol. It is the simple things that you often tend to forget. You might have forgotten to put something on your preparedness checklist, but if you need it, you want it. If the stores have been cleaned out and closed due to looting, where will you find it? You'll find it on the black market out there, somewhere.

The next situation leading you to get into the black market is that you want to help a neighbor out. You have prepared but, naturally, they haven't. How best to help them?  Don't  just give things away if you want to help someone.  You may intend the help to be for one time only. If you just give him stuff, the neighbor may expect you to help out for free every time he needs something.  Things could go bad.  If you refuse to give away more, you could end up in appearing in front of the local people's commissar trying to explain that you not really a hoarder.

Trading instead of providing charity will work out better for both of you. Both of you will have to trust each other and work with each other in a mutual relationship.

You and your neighbors may not have much to trade. One thing you can trade is mutual protection.  Trade mutual protection from looters, especially the government.  That is a basis on which to build trust. Trusting each other is important because both of your lives, and those of your families, may depend on that trust. What better way to begin trust than by  entering an agreement to protect each other?

When the economy collapses, there will be some take time for the black market to begin functioning. That will be a dangerous period. Since you probably have not yet established trusted relationships, what do you do to stay safe?   Watch and wait to see how the black market evolves. As in all markets, there will arise ways of discovering who you can trust and who you can't.  In the beginning, you will see some people ripping others off. They don't realize that they are going to need to develop long-term relationships to operate in the black market.. Rip-off artists always get very short term advantages. But, sooner or later, in the black market, their greed will get them killed. Or others will no longer try to deal with them and they will go hungry.  Finally, in their desperation, they may do something that will get them killed, after all.

Since both your life and the lives of those you will be dealing with are on the line, your word must become your bond.  If you are in a situation where your life depends on keeping your word, not keeping even small promises can eventually become very self defeating.  It is very easy to promise small things. But if you break those promises, your reputation for trustworthiness declines.  Your life depends on who trusts you, so you could have thrown your life away by breaking a promise.  It gives others a very good excuse to be wary of  dealing with you.

How do you know who to get involved with? Before getting into any deal, ask yourself: "Will I regret this? What's the upside? What's the downside?" If you have any doubts, try not to enter the deal. More deals will likely come along later. The regret or damage from a bad deal can last your lifetime.

In the black market, there is usually no option to get a refund or to have the seller make good in some way if you feel you have been ripped off. If you buy a what you think is bag of dope that turns out to be talcum power, the best thing to do is to consider it a learning experience and resolve not to deal with that dealer again. If you seek recourse or revenge you will likely open a can of worms. You will most likely encounter some violence that you don't want. Trying to correct things could risk your life.

Naturally, none of us have crystal balls, so take what you have read here about operating in black markets as things to consider. If any of it sounds reasonable, possible, or likely, then add that information to your mental store of urban survival techniques.