If you weren’t directly affected by the last recession, there’s a good chance you probably know a number of people who were. During the 2008 economic crisis, millions of hardworking Americans suddenly found themselves in some major financial trouble. Unfortunately, many people in the United States have already forgotten how bad things were and have returned to their reckless spending and debt-loving ways. But there’s one thing we can all be sure of, and that is, at the very least, another recession is coming. It’s really unavoidable. If you study history, somewhere around every ten years America faces a recession. With this in mind, doesn’t it make sense to prepare for something we can predict is coming?
One thing you must prepare for in light of a recession is a loss of income. During the recession of 2008, millions of unprepared people suddenly found themselves out of work. While many were eligible for unemployment, the benefits were usually only a fraction of what they made at their jobs.
To truly be prepared, start finding alternative sources of income. This can be anything from starting a side business to selling things online on sites like eBay. The important thing really isn’t what you’re doing; it’s having something you can fall back on should you unexpectedly lose your job.
During the last recession, many people lost their property because they took on massive amounts of debt. When economic problems hit, the banks and your creditors are going to be going into overdrive trying to collect on overdue accounts. The last thing you need to worry about during a recession is losing your home or your property because you never really owned it to begin with. Now is the time to start paying down your debt and becoming the master of your money rather than a slave to it.
When preparing for a recession, always have cash that’s instantly accessible during a crisis. Your emergency fund is useless if you don’t have access to it. When planning for a rainy day, separate your funds. During the 2008 recession people saw their stocks dive, their 401(k) accounts disappear, and many found themselves unable to access their capital that they so badly needed. Your emergency fund should never be looked at as a money-making investment, but instead as an insurance account that is there to protect you and your family from financial ruin.
The government is tapped out! From bank bailouts to extended unemployment benefits, the government spent billions upon billions of taxpayer dollars trying to prevent the total collapse of the system. While there’s debate about whether or not any of that money actually helped the situation (in my opinion it only postponed the inevitable), the fact is the country is broke, and there simply isn’t enough money in the world to bail us out the next time things go bad.
During times of economic recession, there are always those who end up profiting from the chaos. While I don’t advise taking advantage of people, I do advise putting yourself in a position where you can at least take advantage of the situation. During the last crisis, thousands of stores across the country went bankrupt. During this process many were forced to sell off or liquidate their merchandise at a fraction of the cost. Those who weren’t burdened with debt were able to pick up essential supplies at deeply discounted prices. The same was true with housing and land. When the market is depressed, people who have money can get good deals. Your preparedness may pay off in ways you didn’t expect.
All hell is going to break loose when people wake up one morning and realize their money’s gone. Think it can’t happen? Think again!
History is filled with examples of countries that have failed due to economic problems. In 1998, Argentina’s economic crisis plunged the country into chaos causing widespread unemployment, riots, and the eventual fall of the government. The downfall of the Soviet Union in the late 1980s brought major food shortages, food rationing, and violent uprisings to the region.
I believe we are witnessing the slow painful downfall of the economy of the United States and many other areas of the world. While I believe the problems that started this mess go back quite some time, I think the banking crisis of 2008 really started to push the economy to the point of no return.
Twenty years ago, most people would have said you were crazy for thinking the U.S. financial system could collapse. Even today, most of the U.S. is either unaware or has forgotten how closely we came to a complete collapse of the financial system during the banking crisis of 2008. I’ve personally talked to major Wall Street investors who were literally hiding money under their mattresses because they believed the system was about to collapse.
Six years after the crisis that threatened to plunge the entire world into another Great Depression, very little has actually changed; in fact, I would argue things have gotten much worse.
At the time of this writing:
No matter how the government or the media tries to spin the numbers, the reality is there’s really no way out of the situation. In my opinion, we are looking at one of the biggest Ponzi schemes of all time. I believe the only reason the whole system hasn’t collapsed is because of the $17 trillion in debt the U.S. government has racked up. If it wasn’t for the debt, combined with the Federal Reserve that’s been running the printing presses 24/7, this country would look a whole lot different.
From bank bailouts and corporate welfare to a never-ending supply of unemployment checks and government assistance, this country only looks healthy because the government is doing everything it can to maintain the scam. Instead of the bread lines of the 1920s, we now have 47 million people on food stamps and half the country counting on at least one government program to pay their bills.
The real numbers that nobody wants to talk about seem to indicate the United States and the rest of the world are heading towards some major economic troubles—I believe a complete meltdown of the financial system.
A second possible cause is something called a black swan event, which basically is an unprecedented and unexpected event that can have devastating consequences. In the case of the U.S. economy, it could be something like a large-scale terror attack or possibly a cyberattack aimed at the financial markets that push our already struggling economy over the edge.
This second scenario should be most worrisome for those who haven’t started preparing because if it happens, you’re going to be in for some major trouble.
In my opinion, today’s world is not set up to survive a full-scale economic collapse. Most people still stubbornly refuse to believe the reality of the situation and continue to spend like there’s no tomorrow. I hate to say it, but today’s world is anything but stable, and during a full-scale economic collapse we’re going to see some major problems.
Inability to access money. Once the system goes, your electronic money is going with it. Access to your credit cards, ATMs and pretty much any form of electronic payment will probably be suspended almost immediately.
A rush for paper currency. While I do believe paper currency will quickly become useless, in the immediate aftermath of the collapse, people are going to be doing anything they can to get their hands on it. In their minds it will still have a perceived value, and without access to their bank accounts, people are going to be in full-blown panic mode.
This makes it extremely important to always have paper currency on hand. In the days and weeks after collapse, whatever cash you have can be used to buy any last minute-supplies you might need to survive the crisis.
Supply chain backups and stoppages. During a full-scale collapse it’s likely that nationwide delivery systems will stop. Once that happens, it’s going to be almost impossible to find food and any other supplies that you’ve grown accustomed to finding in your local grocery store. The average store simply doesn’t have enough food on hand to last more than a couple of days. Once those supplies dry up, they won’t be restocked.
Chaos on the streets. Even on a good day, people can be unpredictable. Add in an economy that’s collapsed and people scrambling to figure out how they’re going to feed their families, and I’m pretty sure you’ll be able to get a good idea of what things are going to look like.
One of the largest threats you will face during a collapse is going to be people who failed to prepare. These people are going to be desperate, and once they run out of the small amount of food they have at home, they’re going to come looking for yours.
Criminals targeting everyone. Criminals will be doing everything they can to take advantage of the chaos that ensues after an economic collapse. These people will prey on everyone, especially those who look like easy targets, and will more than likely thrive during the aftermath.
Terror attacks. When things go bad, there will likely be a large number of groups trying to land the final blow. Rogue governments, terrorist organizations and lone psychopaths will all be looking to use the situation to push their agenda.
While there’s very little we can do to prevent the world from plunging itself off the financial cliff, there are a number of things you can do on a personal level. The best way to survive a full economic collapse is to
In my opinion, the writing’s on the wall; there’s no way this doesn’t end badly. You can choose to believe media pundits and government officials who have a vested interest in artificially pumping up a failing economy, or you can learn from the lessons of the past and prepare for what’s coming.
Remember, the key to surving any type of disaster is doing your own research, identifying the most likely threats, and then doing everything you can to prepare for those threats. The choice of what you do with the information provided in this book is yours, but at the very least, consider the threats that are outlined and then figure out how you would respond to those threats in a way that ensures your surival.