“Most of us are so used to running out to the supermarket or to Wal-Mart for whatever we need that we never even stop to consider what would happen if suddenly we were not able to do that. Already the U.S. economy is starting to stumble about like a drunken frat boy. All it would take for the entire U.S. to resemble New Orleans after Hurricane Katrina would be for a major war, a terror attack, a deadly pandemic or a massive natural disaster to strike at just the right time and push the teetering U.S. economy over the edge.”
Plus the current debt ($18 Trillion) is nearly as much as the country produces in a whole year. In the short run, the economy and voters benefit from deficit spending. In the long run, a growing Federal debt is like driving with the emergency brake on, further slowing the U.S. economy. At any point, debt holders could demand larger interest payments to compensate for what they perceive as an increasing risk they won’t be repaid. When this happens, the United States will have to pay exorbitant amounts just for the interest.
So don’t be totally surprised if one day you hear it on the news, and the next week you’ll lose your job or you can’t sell anything or you go to the store just to find out that bread costs $40 and all your money will go into buying food, preventing you from paying you credits, bills or rent.
1. Redistribute Your Money
If all of your money is in one single bank account, you might end up with none if the bank goes bankrupt. The day the economy collapses, go to the bank and withdrew a large part of your money and move them into different bank account (other banks). Keep part of them in cash and part of them invest it (buy) in something that doesn’t devalue (2).
2. Buy something that doesn’t lose value
Gold doesn’t lose value as normal currency does. In fact in an economic crisis it can gain value. In 2008-2009 at the height of the financial crisis, gold demand was so great that the national mints could not keep up with it. The flow of historic gold coins from Europe was also insufficient to meet accelerating demand both there and in the United States. And when the demand is high and the offer is limited… guess what? Yes… the price will rise!
So buying gold the day the economy collapses may not only assure you won’t lose money, but also gain value.
No matter if you own a business (and have large stocks) or simply if you have something in the house you no longer need and want to sell on the internet. Now it’s the time. Because after a week you won’t be able to sell anything, or if you do, you’ll get a percent of the price. Make a discount just to be sure you can sell fast and easy.
4. Consolidate your job position
You know better what this means to you. It can be: settling a dispute with your boss, colleagues, or doing a job you previously postponed for days, or inviting your boss for dinner (Hope this doesn’t mean you have to kiss some a$$). When that person who makes the decisions has to fire some staff, just make sure the rational and emotional arguments are on your side. You know better what and how to do. Be smart, not vain!
If you own a business or you are your own manager then consolidate the business! This can mean renegotiating contracts with providers or making new partners.
5. Get Out Of Debt
If you are in debt you will be very vulnerable if the economy collapses. If you lose your job and you’ll be unable to pay your credits, you may end up on the streets. You do not want to be a slave to debt when the next wave of the economic collapse strikes. If you have to sell one of your cars just to pay your debt, then do on in the day the economy collapses.
6. Re-plan Your Future Investments
I know a few people who lost a lot of money back in 2008. Some invested huge amounts in businesses that were supposed to work big time, but instead they end up with a worthless investment. So if you plan on investing in something (like a house, a market house, etc) it’s better to wait or buy small.
7. Cut off expenses
“A lot of people claim that they can’t put any money toward prepping, but the truth is that we all have room to reduce our expenses. We all spend money on things that we do not really need. Those that are “lean and mean” will tend to do much better during the times that are coming.”
Re-negotiate your phone, cable or internet subscriptions. Anything that can be reduced without affecting your survivability.
8. Make a back-up plan
Well, in case nothing works, and everything collapses you should have a prepared plan like a bug out location where you can grow your own food and live without much outside help. Not completely isolated, since you’ll have better chances of surviving in a community. Whether it is your family, your friends or a group of people that you know, make sure that you have some people that you can rely on.
9. Secure Your Home against Looters (in the first two weeks)
OCOKA is a military term that stands for:
– Observation and fields of fire
– Cover and Concealment
– Key Terrain
– Avenues of Approach
When setting up home defenses OCOKA should always be kept in mind and each principle addressed. Following these five key principles, you will greatly improve your security and survivability. This is one of the things that I’ve learned from a well-known army officer vet Steve Walker, for whom I have all the respect in the world.
10. Providing Food for Your Family
The day the economy collapses, make time, go to the closest supermarket and buy some long term emergency foods or simple: white rice, grains, canned foods, etc. Without food you are not going to survive. More so, just like gold – food is one of the best currencies in a crisis, and unless it spoils you have absolutely nothing to lose. People will trade ANYTHING for food.
During famines people ate a lot of “nasty” stuff, and even resorting to cannibalism (no kidding – a lot of times).
Yang Jisheng (China Famine – Survivor)
“People ate corpses and fought for the bodies. In Gansu they killed outsiders; people told me strangers passed through and they killed and ate them. And they ate their own children. Terrible. Too terrible.”
And don’t think that this can’t happen in US. People die of hunger every day. More so, no country has the economic power to save 320 million people in case SHTF.
Preparing for an economic collapse or food crisis means preparing for at least one year. But crisis may last up to 7 years and it can be wiser to have the means to produce your own food rather than stockpiling. One of the best ways to do that is by building a system totally independent from the environment.