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Economic Collapse: How To Prepare For?

millions of Americans say that they believe that the United States is on the verge of a major economic collapse. How to Prepare for an Economic Collapse?

All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. The information in this content is not advice on financial, investment, tax or other matters. You should always consult your own financial, legal, tax, accounting, or similar advisors.

How to Prepare for an Economic Collapse

How in the world is someone supposed to prepare for an economic collapse?

After a recent report released, economist now warn of a “Massive Wealth Destruction.” during his recent media appearances, Marc Faber, has warned about a fall in the US economy, stating,

“I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”

What is saddening is that most Americans are already aware of this but are doing nothing about it. According to Faber and other renown experts such as Peter Schiff, Donald Trump, and Robert Wiedemer, the fall will be fatal. Far worse than the last financial crisis. The question is what is your level of preparedness? The vast majority of the American population wouldn’t even last for a month before running out on what is in their bunkers.

The things that we are used to doing, things that make life easier will be soon wiped away, where are you going to turn to? What will you do with all the money you’ve got? How will ensure the safety of your loved ones?

These are some of the questions you need to answer now before it is too late. The economy is already galloping towards deadly mires and you need to be prepared for the worse that is yet to come.

Predicting a major economic fallout may be difficult. Thus, the fall out in the US economy will happen so quickly. If you look at the dollar index, it has risen for 9 months and recent data shows that it hit 12-year high compared to the Euro. But as it is the case, some things never change.

Economy recovery is still in doubt

It is the time that American wake up to the reality that the economy has not yet recovered. In spite of the Federal Reserve has raised the rates and it looks like things are getting better – most of the companies having very high debt. Under the surface, when interest rates are going up – their chances to recycle this debt are getting lower and may lead to disastrous affects.

Going back in history, the worst day for most investors in US, September 17, 2008. Investors panicked and withdrew almost $140 billion from the Money Market Accounts. Money intended to run the day-to-day business operation.

Take a wild guess, what if this had continued for a week?

Probably, the economy would have collapsed.

The Great Depression is something else to keep in mind. This financial crisis started in 1929 and would last for 10 years. October 24, 1929, the Black Thursday was the kickoff. Traders sold a total of 12.9 million shares of stocks. In a usual market, this is unheard of. It was triple the usual amount. The effect would continue and over the next 4 days with the stock prices falling by 23%. this would result in what is now known as the stock market crash of 1929

Could It Happen Again?

This is the question that so many have been asking. Could it happen again? If it does, then when? Preparing for the financial crisis may be challenging. It not possible to predict what the future holds. However, looking at the common indicators, for sure, there may be a hit or more in the future.
Generally, financial markets take turns of events and are highly unpredictable. In the same case, they are completely volatile.

It's Not Only About The Economy

Compared to what was seen in the Great Depression, the fall this time could be worse. The lifestyle of many American citizens would turn dramatically. Unemployment would be at its highest peak because the current unemployment rate would quintuple from 5% to 25%. To illustrate this, you need to look at what happened in the last depression.

The combination of some the of factors could lead to this human terror and could cause terrible and debilitating circumstances. Effects that could be felt for a long period to come.
Natural disasters form one of the common events that would to this great fall. Hurricanes, tornadoes, among others such as volcanic eruptions. Also in the same case, the possibility of war could lead to this fateful event. Nuclear meltdown among other factors. Basically, there are so many events that would point out to this fatality and in every manner, you need to be prepared for it.

What Will Happen If The US Economy Falls

No economy in the whole wide world can fall in an overnight. Therefore, the US economy will take some few months before taking the plunge. First of all, the currencies will be worthless, not just in the US but in the whole world too.

During this period, the stock in the US will have fallen by 90%. Now according to Marc Faber, the stocks in the U.S and many places all around the globe are in high volatility…..“A bank-fueled Bubble.” Though he doesn't point out the exact time of the fallout in the stock market, he warns of the outcomes being fatal.

“For the last two years, I've been thinking that U.S. stocks are due for a correction,” he adds that “But I always say a bubble is a bubble, and if there's no correction, the market will go up, and one day it will go down, big time.”

“The market is in a position where it's not just going to be a 10 percent correction. Maybe it first goes up a bit further, but when it comes, it will be 30 percent or 40 percent minimum!”

Upon realizing this fall, the world could step in to buy its assets but by then, it would have already been too late for anything. Their stock will have already fallen by about 95%. thus ascertaining that currencies will be worthless. On such case, even the greatest defensive stocks would consider as a bad choice.

Access to credit may not be possible. Banks will close. The fatality in this is that the demand will certainly outstrip the supply of food, gas and other basic commodities. This could be worse if the fall affects the local governments. It would mean that some of the basic necessities would not be available such as water, electricity among others.

People all over would be panicking. Therefore, self-defense becomes paramount. The would be a complete overturn of the government system where the traditional economy would take over.

Globally, things could get worse. A global panic would peak. Demand for the dollar and U.S Treasury would plummet. The overall effect is that the interest rates would skyrocket making investors rush to other currencies. By then, hyperinflation would have kicked in as the dollar would be so cheap.

Perhaps, it would be better if you knew exactly what would cause the country to suffer the collapse. Factors such as the dollar losing sharply would lead to hyperinflation while the gold price would increase dramatically. Alternatively, the banks could shut down by a condition called bank run. This means that withdrawals and lending would be difficult. Some people even believe that the US economy is driven to ruins by a powerful group, the president, the federal reserve, or even an international conspiracy. This presents a dreadful situation since the economy would collapse in as little as a week.

How You Should Prepare For An Economic Crisis

Preparation for the economic fallout to begin with, will not be that simple. Reason being its completely to predict the time for the fallout. It will come without warning!

As the years roll, things are going to get messy, progressively worse. It will not be a single event. Rather, as the predictions point out, it will be a series of event. Wave after another wave. A blow after another! All these will be punctuated by moments of the great crisis.

How will you start?

Well, preparations will be different and will largely depend on whether you are talking about the long-term, mid-term or the short-term effects.

Once again, let’s travel back in history. When the crisis of 2008 hit, most Americans were engraved. The greatest danger being the fear of losing their jobs. This would, of course, mean that they would be able to pay up their debts and bills.

If you can be able to recall what happened during the last recession, millions of Americans lost their jobs. Sadly, that went away with their homes too because most lived by the paycheck.

Surely, losing all your money and having a shelter over your head taken from you is the worst thing that could ever happen. You do not want that to happen. Therefore, it is safer to have an emergency fund that could cover you for up to six months. If you’ll that extended, good for you. A conventional investment can be a physical gold – gold prices expecting to drastically increase in such case. Remember – the banks and other financial institutions may not open their doors, and therefore it's better to hold the gold in a secure and safe place at your home. You can buy bars or gold coins which is very popular as investment.

Plan Of Action

Having a solid plan of action will help you in determining what course of action to take. It also increases your chances of surviving the great fall. Basically, experts advise that getting out of your debt now could save you.

You should start cutting all the non-essential expenses. The excess from the cut-out should be a saving to recover from all the debt. Therefore, in case of the economic collapse, you need to make sure that you have plenty of money saved up. If you are on a paycheck regime, then you are completely vulnerable.

Cutting your expenses will not help you that much. Streamlining the money into a powerful course will help you. Make sure that with the money you have, there is an emergency fund. To survive a major catastrophe, you need survivor instincts, knowledge and most of all, wits and helping one another.

Stay Cool 

However, even if there is a hot debate about the value of money by the time the collapse is happening, it is good that you have some. At the beginning phases of the collapse, banks may have the establishment of the bank holidays. Therefore, this would mean that withdrawals would be difficult. With no money in hand, survivability becomes inhibited. In this initial stages, having money will play a major role in determining how people buy and sell.

Keep a healthy state. Stay up in a top physical state. Know the basic survival skills such as the self-defense skills. If it is possible, you could find the areas where the population is low to live. All this will increase your survival chances in case the collapse happens.

We Don't Believe It!

Stay cool – we are still not there, not even close. We all hope situations like can be prevented by the relevant people – and a scenario like the one above would not take place at all.