How to Prepare for an Economic Collapse

      1 Comment on How to Prepare for an Economic Collapse

United States of America

National debt has cross $17 trillion and continues to rise.   By end of 2014, likely the debt will be higher that $18 trillion.   Obama has no will, no plan, and has taken no serious action to confront the national debt.   The national debt does not include all future obligations of social security, federal retiree benefits, veteran benefits.   The states of California and Illinois have debt which are unsustainable.  My biggest worry for my children is that they may grow up during a great depression.  Of call the countries listed here, I’d rather be in the United States than any other country.  The United States is very capable of providing its own food.  Has vast resources.  The United States is likely to be the last of any country to enter the next great depression, due to all the tools it has available.  But if and when the United States does enter a great depression, the rest of the world will be drag down.  I pray and hope this never occurs.

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How do you prepare yourself and your family for the prospect of an economic collapse?  Here are some recommendations.

  1. Stay out of debt — Do everything you can now to get out of debt.  If you are carrying debt when entering an economic collapse, you are likely to lose everything – your home, your retirement funds, and a comfortable future.
  2. Build an emergency fund — It is recommended that single people have at least 3 months of cash to pay their bills.  Families should have 6 to 12 months of emergency cash.  Building up a cash reserve allows your family to have a buffer against illness or job lost.  In an economic collapse environment, it is very possible that you will need to move to a different location to take a new job, escape civil disorder, or to live in an area that produces food.  An emergency fund will give you the bridge to a new live.
  3. Save a portion of your investable assets in gold and silver coins.  10% of your investable assets in physical gold and silver is a strong hedge against hyperinflation and economic collapse.Avoid those services which rely on discretionary income, such as travel agent, tour guide, trade in collectibles or art,
  4. Start a part-time home based business, which can be your fallback job during an economic collapse.  The home-based business should be some type of service that will be valuable even in a bad economy.  Services such as home repairs, gunsmith, plumbing, electrician, HVAC service, auto repairs, medical care, tutoring, accounting, legal advice, and other direct services will be needed even during an economic collapse. Avoid those services which rely on discretionary income, such as travel agent, tour guide, trade in collectibles or art,
  5. Get rid of your toys — And acquire tangible assets.  What good is a jet ski, boat, beach house, time share, RV, or other expensive toys, if you have insufficient retirement funds or no stored foods.   If you have the opportunity, sell the toys.   But guns, ammo, gold, silver, and long-term stored food.uscrises300x250
  6. Gear up now – Get all your gear now.  When an economic collapse occurs, the acquiring phase of your life ends.  And the consumption of your stored goods will occur for 5, 10, or 15 years.   Stock up on camping equipment, guns, ammo, garden tools, home repair tools, sewing machine, home canning supplies, home security devices, and what ever you might need to enable a home based business.
  7. Be able to produce food – Have your own garden, if possible.  If not possible, at least store garden seeds.  Being able to raise chickens or rabbits for food is a valuable way to provide protein for your family.   Connect with local farmers ahead of time to formulate barter deals.   If you are an accountant, offer to do the taxes for local farmers in return for food.   Or some connected to whatever home-based business you might be able to run.   Understand what wild foods are growing near your home.   Learning to hunt, trap, or fish near your home is a way to feed your family, when without an income.   The benefit that many families had in the 1930′s great depression is people were still connected to the land.  Most families in the 1930′s had a garden and did home canning.  Gardening and home canning require many seasons of practice before it become sustainable.  So start today!
  8. Attend to any outstanding health issues.  If you have any pending surgeries or dental care events, get it done as soon as possible.  If and when an economic collapse occurs, your access to health care can be severely limited.   It is important to have good dental hygiene.  Stop smoking and stop use of any tobacco products.   Address any addictions to illegal drugs, prescription medicines, and alcohol.   Addictions are a path to ruin before or after an economic collapse.   Build up of store of medical supplies, over the counter medications.  Consider learning about natural remedies that you might grow in your garden.
  9. Build relationships now.   Build strong connections to your family, friends, and neighbors.  You will need them during an economic collapses.   A strong network can help you find a job.   Can help you find a missing part for your equipment.  Can help find customers for your home-based business.   Can be your safety net, if all else fails.   Country cousins are especially valuable, since they will likely be able to obtain and grow food, where a city slicker cannot.
  10. Build a food reserve.   Having 6 months or more of stored food will provide a buffer against job loss or illness.   Start with canned foods until you build up a store of 6 months, and then rotate actively.  Then after having 6 months of canned food, then start to acquire long-term store food in the form of dehydrated or freeze-dried food.   Bean, rice, and wheat, if properly stored, can last for 10 or more years.   The biggest 2 worries during an economic collapse are food and shelter.
  11. Payoff a piece of property.   If you are able to pay off the mortgage of your home before an economic collapse, you will be far ahead of everyone else.  During an economic collapse, homes are actively foreclosed, families are turned out to the street, and homelessness rises.  This was demonstrated in the 2008/2009 panic and recession.   In a great depression, unemployment can reach 25% or more.   Especially valuable will be farm land, where you can grow and sell food.

In Closing

Governments will not give you advanced notice of a debt, bank holiday, or other very bad economic news.  Governments will kick the can down the road as far as possible.  Instead of confronting the problems when small and manageable, they will wait and delay until the problem is beyond anyone’s control.   Bank holidays and gold confiscations occurred in the US in the 1930′s.   If another great depression occurs in the US, expect that all measure will be taken to fund the government.  This includes taking your retirement fund, bank account haircuts, and cuts to social security benefits.

Learn from the Japanese economic collapse of the 1990′s.  What Americans Should Understand About Japan’s 1990s Economic Bust

I hope and pray an economic collapse does not come.  It will be a dreadful experience, regardless of how well you are prepared.  Do some web search on what it is like to live in Argentina or Greece today with high unemployment and hopelessness.

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SOURCE : survival5x5.com

1 thought on “How to Prepare for an Economic Collapse

  1. Bruno Martini

    Hi guys,
    I am very concerned about the future……i knew thiswould happen soon or later.
    Bunkers? i dont know. I would go live in mountains…..natural shelters…..(grottos…tunnels, rather than shelters underground. they are too easy to spot.
    I also believe in large conunities……i wach you and you wach me….union is power. any one agree? i would like people who share my opinions contact me soon.

    Reply

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