This week’s events have severely shaken the confidence of many in the U.S. economy, our currency, and world wide markets as a whole.
Many politicians seem certain that times will get a lot worse. Even Jim Cramer and other uber-investors seem to be pointing toward a very bad time for our nation.
This situation got me thinking. Though we hope it never happens, how does one begin to prepare for an economic collapse?
Well, doing some Google searching, I found it surprisingly hard to find good advice on surviving a great depression or economic collapse.
One article that I found useful was EHow.com’s How to survive a total economic collapse:
Surviving Economic CollapseStep 1
Read. Educate yourself. Read everything you can on how to survive a total economic collapse. See the Resources section, below. Start with “Financial Reckoning Day: Surviving the Soft Depression of the 21st Century” and “Empire of Debt: The Rise of an Epic Financial Crisis“, both by William Bonner, for a historical perspective and very well-written analysis of the current situation. Also read “Empire of Debt: The Rise of an Epic Financial CrisisCrash Proof: How to Profit From the Coming Economic Collapse” by Peter D. Schiff and John Downes, and “The Great Bust Ahead: The Greatest Depression in American History” by Daniel A. Arnold.Step 2
Plan. Make a plan for how to survive a total economic collapse. List your debts and assets. How quickly can you pay down your debt, while still purchasing necessary supplies? Your goals should include no debt and the procurement and storage of valuable assets. Your preparation timetable should be as short as possible.Step 3
Nix debt. Pay off debt and avoid new debt by paying with cash instead of credit cards. Concentrate on paying off high-interest debt, loans with adjustable rates and unsecured debts first. Sell expensive vehicles that have loans to pay off what you owe, and buy cheaper replacements using cash. In order to survive a total economic collapse, you need to have assets, not liabilities.Step 4
Buy Silver. Change liquid savings into silver and gold. If you’re wondering “will silver go up“, yes, it always will. If the dollar collapses, having precious metals will preserve your money and it can be used as currency or exchanged for a currency with value, such as Swiss francs. As the dollar continues to lose value, silver dollars preserve their value or go up in value, thus protecting your assets in the event of a economic recession, allowing you to financially survive a recession or depression.Step 5
Invest wisely. Re-evaluate your stocks and mutual funds. In order to financially survive a total economic collapse, your investments must be secure. Consider putting some of your stocks into gold (GLD) or opening a precious metals IRA with Sterling Trust Company. Research stocks that will survive a total economic collapse through the Daily Reckoning Day website.Step 6
Store grain. Purchase goods and valuables such as guns for hunting and personal protection, and basic food supplies such as whole grains and legumes, which are easy to store. Invest in water purification bottles and tablets, and keep some bottled water on hand to meet immediate needs in the event of a shortage. All of these will make it more possible to survive a total economic collapse.Step 7
First aid. Prepare a First Aid Kit, sewing kit and other practical necessities of daily life to aid in survival of a total economic collapse. These are good things to have on hand anyway, for regular daily life as well as unforeseen emergencies.Step 8
Get to know your neighbors and build a community wherever you are. In the event of total economic collapse, life will become very local and survival will depend on working together with others, beginning with families.Step 9
Grow some of your own food and raise animals for meat. Chickens and rabbits are small and easy to tend. Chickens provide eggs as well as meat and are excellent sources of protein and fat, both critical for survival. In economic downturns such as a recession or depression, being able to produce food is a important skill to have.Step 10
Learn how to barter, and stock items to trade. Think about necessities (wool blankets, soap, boots, duct tape, ammunition) as well as luxuries (chocolate, tobacco, alcohol).