By Michael Snyder – 18 Aug 2013
The next great economic crisis is rapidly approaching, and most people are
going to be totally blindsided by it. Even though the warning signs are
glaringly obvious,
most Americans continue to believe that our “leaders” know what they are
doing and that everything will be just fine. But what will happen when the
next great financial crash happens and trillions of dollars of “paper
wealth” disappear into thin air? What will happen when the coming credit
crunch causes economic activity to dramatically slow down and millions upon
millions of people lose their jobs? This shouldn’t sound far-fetched to
you. Remember, this is exactly the kind of thing that we saw back in 2008,
and the next great financial crisis is likely going to be significantly
worse. Our economy
is in far worse shape
than it was back in 2008, and government dependence
is now at an all-time
high even though most Americans are still enjoying
debt-fueled false prosperity. We are living in the largest debt bubble in
the history of the planet, and when it bursts we are going to experience a
crippling “adjustment” to our standard of loving. Some people understand
this and are busy preparing for what is ahead. It has been estimated that
there are
approximately 3
million “preppers” in the United States, and that number is
growing all the time. Unfortunately, most Americans are not preparing for
the coming economic depression and they are going to bitterly regret it.
So what does preparing for the coming economic depression look like?
Well, it doesn’t have to be complicated. Most of the things that you should
do are just common sense.
But there are some people that take things to extremes. For example, a new
National Geographic series is featuring a family that is actually
constructing a “Doomsday
Castle“. The former U.S. Army officer that is building this
unusual home
is trying to prepare
for virtually every type of disaster that he can imagine…
“Meet Brent Sr., the leader of the six-person family. Brent is a former
Army Infantry Training Officer who is heading up the
project to build an EMP (electromagnetic pulse)-proof medieval castle
in the woods of the Carolinas.
“According to National Geographic, Brent is teaching five of his 10
children survival skills.
“The unfinished, fortified castle that Brent Sr. is building an idea
he got during the Y2K prep craze will be able to sustain an EMP-event
that could wipe out a power grid, but will also survive natural
disasters like hurricanes.”
He even plans to train his family members to use crossbows and a catapult to
defend against potential home invaders.
Not many people out there are going to take “prepping” to such extremes.
But even if you don’t plan to build a “Doomsday Castle”, that doesn’t mean
that you should be doing nothing.
Sadly, most Americans are quite ill-prepared for a major economic downturn
at this point. In fact, most Americans seem to be doing almost nothing to
prepare.
Just consider the following statistics. Most of these numbers come from
one of my previous
articles…
-According to a survey that was recently released,
76 percent
of all Americans are living paycheck to paycheck.
–46
percent of all Americans have less than $800 in savings.
–27
percent of all Americans do not have even
a single penny
saved up.
-Less than one out of every four Americans has enough money stored away
to cover six
months of expenses.
-Each year,12 million
Americans take out high interest payday loans.
-In 1989, the debt to income ratio of the average American family was
about
58 percent.
Today it is up to
154 percent.
-It is estimated that
less than 10
percent of the U.S. population owns any gold or silver
for investment purposes.
–44
percent of all Americans do not have first-aid kits in
their homes.
–48
percent of all Americans do not have any emergency
supplies stored up.
–53
percent of all Americans do not have a 3 day supply of
nonperishable food and water in their homes.
–One
survey asked Americans how long they thought they would survive if the
electrical grid went down for an extended period of time. Incredibly, 21
percent said that they would survive for less than a
week, an additional
28 percent
said that they would survive for less than two weeks, and nearly
75 percent
said that they would be dead before the two month mark.
Those numbers are absolutely appalling.
When the system fails, most people are going to be completely blindsided by
it and millions upon millions of people are going to absolutely freak out.
Don’t let that happen to you.
So what are some basic things that you can do to get prepared for the great
economic storm that is coming?
The following are a few of the things thatNicole Foss
suggests…
1) Hold no debt (for most people this means renting)
2) Hold cash and cash equivalents (short term treasuries) under your own
control
3) Dont trust the banking system, deposit insurance or no deposit
insurance
4) Sell equities, real estate, most bonds, commodities, collectibles (or
short if you can afford to gamble)
5) Gain some control over the necessities of your own existence if you
can afford it
6) Be prepared to work with others as that will give you far greater
scope for resilience and security
7) If you have done all that and still have spare resources, consider
precious metals as an insurance policy
8) Be worth more to your employer than he is paying you
9) Look after your health!
I think all of those are great pieces of advice.
In addition, below I have posted some of the things that I personally
recommend. The following is an excerpt from one of my previous articles
entitled “25
Things That You Should Do To Get Prepared For The Coming Economic Collapse“…
#1 An Emergency Fund
Do you remember what happened when the financial system almost collapsed
back in 2008? Millions of Americans suddenly lost their jobs, and because
many of them were living paycheck to paycheck, many of them also got behind
on their mortgages and lost their homes. You don’t want to lose everything
that you have worked for during this next major economic downturn. It is
imperative that you have an emergency fund. It should be enough to cover
all of your expenses for at least six months, but I would encourage you to
have an emergency fund that is even larger than that.
#2 Don’t Put All Of Your Eggs Into One Basket
If the wealth confiscation
in Cyprus
has taught us anything, it is that we should not put all of our eggs in one
basket. If all of your money is in one single bank account, it would be
easy to wipe out. But if you have your money scattered around a number of
different places it will give you a little bit more security.
#3 Keep Some Cash At Home
This goes along with the previous point. While it is not wise to keep all
of your money at home, you do want to keep some cash on hand. If there is
an extended bank holiday or if a
giant burst from the
sun causes the ATM machines to go down, you want to be able
to have enough cash to buy the things that your family needs. Just ask the
people of Cyprus how crippling a bank holiday can be. One way to keep your
cash secure at home is by storing it in a concealed safe.
#4 Get Out Of Debt
A lot of people seem to assume that an economic collapse would wipe out all
debts, but that will probably not be the case. In fact, if you are in a
tremendous amount of debt you will be very vulnerable if the economy
collapses and you are not able to find a job. Just ask the people who were
overextended and lost their jobs during the last recession. So please get
out of debt. Many debt collectors are becoming increasingly ruthless. In
many areas of the country they are now routinely putting debtors
into prison.
You do not want to be a
slave to debt
when the next wave of the economic collapse strikes.
#5 Gold And Silver
In the long-term, the U.S. dollar is going to lose a tremendous amount of
value and inflation is going to absolutely skyrocket. That is one reason
why so many people are investing very heavily in gold, silver and other
precious metals. All over the globe, the central banks of the world are
recklessly printing money. Everyone knows that this is going to end very
badly. In fact, there is already a push
in more than a dozenU.S. states to allow gold and silver coins to be used as
legal tender. Someday you will be glad that you invested in gold and silver
now while their prices were still low.
#6 Reduce Your 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.
#7 Start A Side Business
If you do not have much money, a great way to increase your income is by
starting a side business. And it does not take a lot of money – there are
many side businesses that you can start for next to nothing. And starting a
side business will allow you to become less dependent on your job. In this
economic environment, a job could disappear at literally any time.
#8 Move Away From The Big Cities If Possible
For many people, this is simply not possible. Many Americans are still
completely and totally dependent on their jobs. But if you are able, now is
a good time to move away from the big cities. When the next major economic
downturn strikes, there will be rioting and a dramatic rise in crime in the
major cities. If you are able to move to a more rural area you will
probably be in much better shape.
#9 Store Food
Global food reserves have reached their lowest level
in nearly 40 years.
As the economy gets even worse and global weather patterns become even more
unstable, the price of food will go much higher and global food supplies
will become much tighter. In the long run, you will be glad for the money
that you put into long-term food storage now.
#10 Learn To Grow Your Own Food
This is a skill that most Americans possessed in the past, but that most
Americans today have forgotten. Growing your own food is a way to become
more independent of the system, and it is a way to get prepared for what is
ahead.
#11 Nobody Can Survive Without Water
Without water, you would not even make it a few days in an emergency
situation. It is imperative that you have a plan to provide clean drinking
water for your family when disaster strikes.
#12 Have A Plan For When The Grid Goes Down
What would you do if the grid went down and you suddenly did not have power
for an extended period of time? Anyone that has spent more than a few hours
without power knows how frustrating this can be. You need to have a plan
for how you are going to provide power to your home that is independent of
the power company.
#13 Have Blankets And Warm Clothing On Hand
This is more for emergency situations or for a complete meltdown of
society. During any major crisis, blankets and warm clothing are in great
demand. They also could potentially make great barter items.
#14 Store Personal Hygiene Supplies
A lot of preppers store up huge amounts of food, but they forget all about
personal hygiene supplies. During a long crisis, these are items that you
would greatly miss if you do not have them stored up. These types of
supplies would also be great for barter.
#15 Store Medicine And Medical Supplies
You will also want to store up medical supplies and any medicine that you
may need. In an emergency situation, you definitely would not want to be
without bandages and a first-aid kit. Over the course of a long crisis, you
do not want to run out of any medicines that are critical for your health.
#16 Stock Up On Vitamins
A lot of preppers do not think about this either, but it is very important.
These days, it is becoming increasingly difficult to get adequate nutrition
from the foods that we eat. That is why it is very important to have an
adequate store of vitamins and other supplements.
#17 Make A List Of Other Supplies That You Will Need
During any crisis, there will be a lot of other things that you will need in
addition to food and water. The following are just a few basic things that
it would be wise to have on hand…
– an axe
– a can opener
– flashlights
– battery-powered radio
– extra batteries
– lighters or matches
– fire extinguisher
– sewing kit
– tools
This list could be much, much longer, but hopefully this will get you
started.
#18 Don’t Forget The Special Needs Of Your Babies And Your Pets
Young children and pets have special needs. As you store supplies, don’t
forget about the things that they will need as well.
#19 Entertainment
This may sound trivial, but the truth is that our entertainment-addicted
society would become very bored and very frustrated if the grid suddenly
went down for an extended period of time. Card games and other basic forms
of entertainment can make enduring a crisis much easier.
#20 Self-Defense
In the years ahead, being able to defend your home and your family is going
to become increasingly important. When the economy crashes, people are
going to start to become very desperate. And desperate people do desperate
things.
#21 Get Your Ammunition While You Still Can
Your firearms will not do you much good if you do not have ammunition for
them. Already there are widespread reports of huge ammunition shortages.
The following is from a recent
CNS News article…
“The run on ammunition has manufacturers scrambling to accommodate demand
and reassure customers, as many new and seasoned gun owners stock up over
fears of new firearms regulations at both the state and federal levels.”
Don’t just assume that you will always be able to purchase large amounts of
ammunition whenever you want. Get it now while you still can.
#22 If You Have To Go…
Have a plan for what you and your family will do if you are forced to leave
your home. If you do have to go, the following are some items that you will
want to have on hand…
– a map of the area
– a compass
– backpacks for every member of the family
– sleeping bags
– warm clothing
– comfortable shoes or hiking boots
#23 Community
One of the most important assets in any crisis situation is community. If
you have friends or neighbors that you can depend upon, that is invaluable.
The time spent building those bonds now will pay off greatly during a major
crisis.
#24 Have A Back-Up Plan And Be Flexible
Mike Tyson once said the following… “Everyone has a plan until they get
punched in the mouth.”
No plan ever unfolds perfectly. When your plan is disrupted, what will you
do?
It will be imperative for all of us to have a back-up plan and to be
flexible during the years ahead.
#25 Keep Your Prepping To Yourself
Do not go around and tell everyone in the area where you live about your
prepping. If you do, then you may find yourself overwhelmed with “visitors”
when everything falls apart.
And please do not go on television and brag about your prepping to a
national audience.
Prepping is something that you want to keep to yourself, unless you want
hordes of desperate people banging on your door in the future.
*****
For much more on prepping, I would encourage you to check out thedozens of excellent
websites out there that teach people advanced prepping
techniques for free.