Survival: economic collapse can make cash useless. While you can’t pay in dollars or any other regular currency, all the world economy is in deep depression, panic is uniform, and food is scarse, you will need to find the way out of the disaster and survive. Learn about economic collapse survival in this article.
The United States economy is also called a Free Market economy, in theory.
This implies that the financial system of the United States supports the law of supply & demand. Goods and services with high demand and low supply are worth more. The ones with low demand and high supplies are basically totally unnecessary and cost merely nothing.
The US economy isn’t a complex system. The financial markets are being self-regulated, self-correcting, and, to tell you the truth, they pretty much coincide with economics’s basic rules.
In the contemporary world, people are used to trading paper money thought of as a certain value. Nonetheless, some people argue that paper cash has basically zero worth, but that is totally incorrect! Anything has as much value as some person is willing to exchange for it.
For example, let’s imagine I can buy a gallon of milk worth 3.25 dollars at my local grocery store because the cashier believes my 3.25 dollars of paper money is a pretty exchangeable thing and acknowledged for everyone. Thus they can use it for their needs.
In other words, the dollar paper (or any other currency) reflects the cost of the product or service. Even though everything is so easy at first glance, some difficulties result from this system. For instance, when authorities simply print out an extra amount of paper dollars – a process that is called inflation. Or, for example, the authorities did not print out enough paper money and caused deflation.
Why Does the Government Need to Print Extra Amount of Dollars?
Indeed, the obvious reason is simply that the government makes mistakes! The Federal Reserve (otherwise known as Central Bank) looks after the dollars available for use. After that, it adjusts the Prime Interest rate. They adjust it down to urge banks to get more or adjust it up to acquire less from the Federal Reserve System.
If the Fed in the US needs to fight inflation, they increase the interest rates. This then draws money out of general use as banks pay huge interest payments on the loan back to the Fed, thus eliminating circulation dollars.
If the Fed needs to get rid of deflation or stimulate the economy, they can bring down interest rates; this drives more demand for money and simple lending, which motivates the economic activity to go faster!
The general assumption is that the Fed has the best interests for the US’ economy: it is believed that their goal is to do all the best for the economy and the States’ people.
When political powers are present, the Fed Chairman is selected by the President. The Fed may lower interest rates for political reasons. To keep the easy money pumping money flow into the economy, a cycle gradually leads to death.
Many accept that is the thing that’s been going on in the course of recent many years and months. Some time ago, the Treasury sold bonds to pay for government financing – to pay everything for our perpetual deficit spending. However, selling bonds has an impact on a huge part of our public debt foreign governments. Such Asian countries as China, Japan, South Korea, and so on. Or, for instance, Britain.
These nations loan money to our government and get the interest paid back as revenue. Such large-scale loaning of this sort has lead to over 20 trillion dollars of public debt (and counting)! Because of this consistently increasing debt, these nations are beginning to stress their capacity to repay this debt. Every congressional budget cycle, we borrow more to pay off our old debt.
China, Japan, and the others have scaled back their purchases of our treasury bonds. We keep on spending more than we take in…
But Where does Cash Come From?
The technique as of now is called monetization. This process implies that we are making dollars to pay off our debt: it’s a quite neat trick.
Our Federal Reserve is loaning cash to banks at an extremely low-cost rate. The banks are purchasing the Treasury bonds, which pay higher interest than the Fed is charging the banks. These bonds are a route for the banks to cash from the Fed and transfer it to the Federal Treasury. This, afterward, gives our Government the dollars they need to keep spending.
Also, the banks get some revenue with totally zero threats! They basically go about as a money-laundering operation for the Federal Government.
For what reason do they do this? There are two explanations:
- Most importantly, banks need to bring in money to exist.
They bring in their money by loaning cash. The Federal Government has never reneged on a Treasury bond yet. Hence, it’s an extremely protected venture.
Indeed, the banks realize the Government will venture to such an extreme as to get more cash to take care of the bonds. Only the weak companies “borrow to pay off debt, “and they can only borrow so much.
- Besides, the Government can borrow as long as they have the purchasers of the bonds.
What’s more, the Federal Government manages the banks, so if they’re not working together, the Government has strategies for making their life an actual hell.
Today the Fed’s buys and transfers are mostly electronic and momentary. The Fed states that they will buy a bond, and the Treasury prints more cash, then moves it into the Government coffers.
How Much Cash Does The Central Bank Have In Reserve?
We are unable to tell you the answer: no one knows. By law, the Federal Reserve cannot be audited or observed. The thought is that the Fed is autonomous of political parties and the Government. If the Fed could be audited, then political-pressure factors could be put on it by opposing parties.
On urgent occasions, this could give an exact image of the Fed’s reserves. This thus may cause people to panic, cause bank runs, even affect the process of elections.
The thing is that the measures are taken to preserve the Fed’s independence also provide a way to control it by a responsible political party. Although many might want to see, the Fed audited – the outcome could bring down the whole nation.
All this is an economic crisis waiting to happen. The house of cards that we, citizens, can only hope is being managed correctly. Here we can not be self-reliant, only nation-reliant. Make sure to notice that “hope” is a key factor. Some uplifting news is that the US dollar is the world reserve currency. There is a lot of wealth in the world wrapped up in our paper dollars, in our currency.
On the off chance that the remainder of the world actually drops the dollar as a worldwide currency – our dollar will go on like the Russian Ruble. What a pity.
Fortunately, most other currencies of the world are even less dependable than our own! Even though China currently has a bigger economy than the US, nobody confides in their cash.
We are truly the best of the worse! It’s evident to any free-thinking character who has cognitive skills that this whole schema is full of danger and instability.
What Will Happen if The Coming Economic Collapse Occurs?
It’s simple. The dollars we each have in our bank accounts, our 401Ks, our wallets… they will get completely unworthy, almost useless, because of the process of hyperinflation.
A real economic collapse has happened to many nations over the recent 30 years:
- Iceland, Russia
- Zimbabwe, Bolivia, Nicaragua
- Mexico, Peru
- Poland, Ukraine, Bosnia, Romania
Furthermore, in the US, we could observe these as well: a few times since our establishment, most prominently soon after the Revolutionary War, the Great Depression, and during the Civil War. Also, the Federal Reserve still didn’t exist during these events.
So what happens when paper cash becomes worth simply the useless paper? What is your monetary breakdown survival plan? What will we use cash for?
Remember that goods and services are material. Many will continue to exist after the coming economic collapse.
How To Get Prepared For the Economic Collapse?
One key guideline to remember: don’t confuse money dollars with value. Money dollars possibly have value if they can be exchanged for something with genuine worth – things, for example, foods, instruments, equipment, fuel, handtool items, and so forth.
However, imagine a scenario in which nobody will take dollars in exchange. What turns into the new collapsed economy’s money currency? What will the coming economic collapse look like?
The new economy will at present work under the principles of market interest – no getting around this. This is a law of nature.
The more something is in demand, the more worth it has, the more people will pay to get it. But what will people use in the future as money if dollars are worthless?
The Barter Economy
The Barter Economy is the natural development of the supply and demand schema when the dollar comes up short. This basically implies that people will exchange actual goods instead of paper money. Not all tangible resources and goods will have a similar worth.
For example, fish holds a specific value as a food supply; however, a fishing rod will be much more valuable and worthy. What crucial material resources and goods will help one make it during the survival economic collapse?
Those who have survival food will have power, while those who have heirloom seeds may have even more power and ‘money’ for the long term perspective. Eggs hold worth, yet chickens have more worth. Did you catch the thought?
Water usually has worth as it is 100% needed by everyone, and water WILL continue to have worth in value as droughts and contamination remain to waste the water stockpilings. The same goes for food storage and foods.
The resources worth is also determined by whether they work for a short term or a long term perspective.
Food is crucial: ‘long shelf-life’ foods will serve for the long term. Some basic, durable products that will hold worth include hand tools, for example, saws, drills, axes, knives, and so forth. Rope, wire, paracord, solar panels, batteries, chargers, nails, generators, solar panels, survival stoves, building materials.
Make sure to acknowledge that some products and things are half breeds – both applicable to short term and long term perspective. For example, vehicles have a long-term perspective; however, they are just as valuable as access to fuel, which is a short-term value.
We Have Found Some Exceptions
Firearms have long-term value. Nonetheless, the accessibility to ammo is of short-term worth. This should restrict the general value of the firearm, isn’t that so?
Not actually, firearms represent an extraordinary case! A stacked gun can mean the difference between life and death: this gives it a definitive value to the individual. More value than food, water, or some other common good, because some people will rather use firearms not as self-defense but as a threat. In other words, on account of a less selfless individual, a stacked gun can fill in as a coercive force. Firearm makes one able to acquire tangible resources that may actually belong to another person, giving the gun value equivalent to whatever it can get in this less-than-moral style. This is something to remember when exchanging with somebody with an AR-15 behind him or her. Some problems might arise, huh. Don’t be so self-reliant. Get a gun…
Regardless of whether you don’t have a gun, ammo is also a significant always-needed good! So you could begin storing loads of it to get ready for the upcoming economic collapse.
Even A Small Bullet or Cartridge Could Be Exchanged
A solitary .30-06 rifle cartridge can make a lot of difference. The difference between a family eating for the whole week or drawing seven days closer to starvation.
A 25 dollar box of 525 .22 Long Rifle cartridges speaks to long periods of small game on the lunch table. Giving basic proteins, for example, squirrels, bunnies, snakes, and so forth.
One main idea to acknowledge: the rifle cartridges actually speak for long periods of having food, regardless of whether you don’t claim a rifle. Try to discover somebody who does and exchange them for something of equivalent worth!
Ammo is an incredible method to prepare for an economic collapse world. Rifle and gun cartridges will consistently have value if you store them right; one strategy to utilize it is to arm yourself with guns using very common cartridges: the more common, the better.
The most widely recognized gun cartridges are 9mm, 38 Special, and .45 ACP. The most popular rifle cartridges are .22 Long Rifle, 7.62x39mm, and 5.56x45mm.
Another crucial segment that would imply a lot of value is medication, like survival antibiotics and medical supplies. At the point when the economic collapse starts, people’s access to meds will lessen; nonetheless, people will keep on getting sick, maybe even in much bigger numbers than previously…
Even over-the-counter medications will become incredibly crucial. Some basic drugs and clinical supplies to load up on include:
- aspirin, cough syrup, flu medication, acetaminophen
- anti-infection creams, antihistamines creams, and pills
- bandages, gauzes
- alcohol for disinfection, H2O2
- oral thermometers
Or then again, spend some money on great first aid kits, and you’ll be all set.
Shouldn’t Something be Said About Vices During Economic Collapse?
People’s addictions won’t just disappear if the world has fallen and economic collapse has happened. Some addiction attributes could be utilized for the deal: cigarettes, beer, hard alcohol, and if your after-collapse location is in Colorado, all things considered, you know…
What About Gold After The Economic Collapse Will Come?
Precious metals have been utilized as investments or money for ages. How do precious metals charge in an after-economic-collapse world?
These resources will be totally unusual in terms of barter. People will, of course, value gold and silver, even in an after-collapse world. Nonetheless, this worth is extremely long-term and fairly hypothetical. It depends on the idea the world will return to its previous form sooner or later after the economy collapses; by then, the gold (or any other type of precious metals) can be traded for money.
Survival Gold has no quick value:
- You can’t eat it
- It can’t get a fish or shoot a deer by having gold.
- It can’t ensure you or your family the safety by gold.
In any case, some people will take it in exchange. The best advice here is that extra attention should be practiced if you tell all of your neighborhood and some other people you have gold. Without a doubt, in case you attempt to exchange it, you will discover somebody with an AK-47 after your home and family!
Once there, I will rid you of the remaining gold by force if necessary.
Gold and silver are extraordinary investments as a barrier against inflation, yet just as a support, it assumes the money dollar actually has some worth. On the off chance that the dollar flops totally, gold is almost pointless. The people who do need it are the same folks you would prefer not to meet.
The barter economy will start on Day One of the coming economic collapse. What are you going to do on Day Two to support your families? Better to start loading up today before it’s past the point of no return.
Remember: Plan, Modify, and Succeed!
How do you survive the economic collapse?
Here are a few general rules to reduce the number of negative consequences of economic collapse:
- Stock the food provisions important to support life (find the right place!)
- Make your own food. For example, you can attempt to grow some food by yourself, like potatoes or tomatoes. Gardening is our everything. Moreover, one can trade smth for such products or prevent themselves from food shortages.
- Make connections with other survivalists so you can form small survival-retreat groups during the economic collapse to fortify yourself and gain more power; plan to share
- Be prepared to ensure your family in a safe place to live.
- You may need some firearm in order to be assured that you can see defense yourself.
- Have several dollars as cash on hand, rather than a credit card knife, just for emergency preparedness
- Keep all documents safe.
- Get out of debt or possibly start an emergency fund with your fellows to gain power.
- Maybe have some precious metals for later use…
What should I stockpile for an economic collapse?
First of all, during an economic collapse, one will have to stock up on the important things:
- vice-related things in order to trade them: cigarettes, alcohol, possibly drugs (for medication purposes, of course)
- medication (bandages, pills, creams, thermometers, etc.), first aid kit
- durable food resources
- firearm (guns), and self-defense things (like a great survival knife)
- hand tools (axes, hammers, and so forth)
One could also stock up on personal sanitation and hygiene things, such as towels, toilet paper, tampons and pads for ladies, cleansers, and different things you use each day. What non-food things do you buy routinely?
A cool idea is to take a look at the “Piero San Giorgio” youtube channel, where he discusses the things you will require during survival in circumstances of economic collapse. Piero is an author of many survivalist books.
What happens if the economy collapses?
If the U.S. will experience economic collapse, you would almost certainly lose access to credit, as banks would become closed. Demand would overwhelm the supply of food, gas, and different necessities. On the off chance that the economic collapse influenced local governments and utilities, at that point, water and electricity may presently not be accessible. Global panic all over the nation will instantly arise. Eventually, we will end up in a barter economy just like in bygone eras.
How long can an economic collapse last?
Well, it is hard to forecast. It will start with recessions that are a part of every economic cycle. A recession is a situation when there is an overall decrease in the activity of the economy. The next (future) step, after the crisis, is the collapse. It all depends (how long will it last) on the future policies that the government would like to implement and the way how people will react to these policies.
For example, take a look at the cases of Argentina and Greece, Venezuela, which are currently struggling with an economic collapse. No one knows when Argentina, Venezuela, and Greece, or even Russia will come out of the crisis-collapse. For example, in Venezuela, the whole process started in 2013 and is still ongoing, while the financial crisis in Greece -the debt crisis was held only for one year – 2007-2008. But still, they somehow do survive.
Was there an economic collapse in the history of the United States?
Well, for example, there was an economic collapse where the US citizens observed severe, long-term depression with high bankruptcy rates and high unemployment -the Great Depression in the midst of the 20th century.
As of the latest events, in 2008, the US experienced a housing market crash or, in other words, a stock market crash. When the housing market fell, many homeowners defaulted on their loans. These defaults spread these problems throughout the whole US financial industry. The fall of 2008 is considered to be the most terrible financial crash in the US when the major financial stock market lost more than 30% of its value!
What would happen in the future economic collapse?
It would all start with the recession. Prices all over the US would fall drastically. Businesses would fail; everyone will be in an emergency situation. People will experience inflation, lack of supplies. Due to a lack of supplies and inflation, there will be an economic crisis. After that economy collapses, as a rule, but you, my dear friend, already know what to do.
Check out recent news and information about what’s going on in the rest of the world. Make sure to find a safe place for you and your family near grocery stores, get ready with your emergency supplies, think of everything one may need: food storage, hand tool supplies, precious metals for future trading. If you are successful enough, get out of debt, start an emergency fund, wait till that all ends.