If a U.S. economic collapse occurs, it will happen quickly. No one will predict it. THAT’S BECAUSE THE SIGNS ARE EVERYWHERE BUT PEOPLE REFUSE TO SEE.
For example, the U.S. economy almost collapsed on September 17, 2008. That’s the day panicked investors withdrew a record $140 billion from money market accounts, which is where businesses keep cash to fund day-to-day operations. If withdrawals had gone on for even a week, the entire economy would have halted.
That meant trucks would stop rolling, grocery stores would run out of food and businesses would shut down.
Fortunately, the Federal Reserve Chairman and U.S. Treasury Secretary noticed the signal and knew what it meant. Ben Bernanke was a Great Depression scholar. Hank Paulson was a Wall Street veteran. Their bailout plan supplied enough cash to stop the panic.
Another example occurred during The Great Depression. On Thursday, October 24, the 1929 stock market crash began. By Tuesday, the market had lost 25 percent. Many investors lost their life savings that weekend. The Dow didn’t recover until 1954. That’s how close the U.S. economy came to a real collapse, and how vulnerable it is to another one.
What Will Happen If the US Economy Collapses?
If the U.S. economy collapses, you will not have access to credit.
Banks will close. That means demand will outstrip supply of food, gas and other necessities. If the collapse affects local governments and utilities, then water and electricity will no longer be available. As people panic, self-defense becomes more important. The economy reverts to a traditional economy, where those who grow food barter for other services.
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He lives with his wife and two children in a log cabin he had built, cooks outside on an open flame in a cauldron most of the time, and all of his clothes are handmade. WATCH THIS VIDEO and you will find many interesting things! Click on the image bellow and learn more about Survival things that we lost to history.
When Would the U.S. Economy Collapse?
Any of the following six scenarios could create an economic collapse.
- If the U.S. dollar rapidly loses value, it would create hyperinflation.
- A bank run could force banks to close or even go out of business, cutting off lending and even cash withdrawals.
- The internet could become paralyzed with a super-virus, preventing emails and online transactions.
- Terrorist attacks or a massive oil embargo could halt interstate trucking. Grocery stores would soon run out of food.
- Widespread violence erupts across the nation. That could range from inner-city riots, a civil war or a foreign military attack. It’s possible that a combination of these events could overwhelm the government’s ability to prevent or respond to a collapse.
- Some believe the Federal Reserve, the president or an international conspiracy are driving the United States toward economic ruin. If that’s the case, the economy could collapse in as little as a week. That’s because it’s run on confidence that debts will be repaid, food and gas will be available when you need it and that you’ll get paid for this week’s work. If a large enough piece of that stops for even several days, it creates a chain reaction that leads to a rapid collapse.
How to Prepare for a Collapse
It’s difficult to completely protect yourself from a U.S. economic collapse because it can happen without warning.
In most catastrophes, people survive through their knowledge, wits and by helping each other. Make sure you understand basic economic concepts so you can see warning signs of instability. For more, see What Not to Do in a Stock Market Crash.
Second, keep as many assets as liquid as possible, so you can withdraw them within a week. In addition to your regular job, make sure you have skills that you’d need in a traditional economy, such as farming, cooking or repair.
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Make sure your passport is current in case you’d need to leave the country on short notice. To be completely prepared, research target countries now and travel there on vacation so you are familiar with your destination.
Keep yourself in top physical shape. Know basic survival skills, such as self-defense, foraging, hunting and farming. Practice now with camping trips. If you can, move near a wildlife preserve in a temperate climate. That way, if a collapse occurs, you can live off the land in a relatively unpopulated area.
As for cash, it’s almost pointless to have it in a real economic collapse because its value might be decimated. Gold isn’t much help because it’s heavy to transport and useless in a real survival situation. But it would be good to have a stash of $20 bills and gold coins, just in case. During many crisis situations, these have been acceptable bribes.
Will the U.S Economy Collapse?
Could the U.S. experience an economic collapse in 2017? The idea sounds pretty implausible; after all, U.S. stocks are at record levels, unemployment has fallen to 4.6%, and the Fed recently raised its key lending rate. Surely these are signs that the U.S. economy is going strong?
The economic forecast for 2017 is more than bleak, and there is more than enough economic data out there to show there could be a U.S. economic collapse in 2017. Despite trillions of dollars in quantitative easing, the U.S. economy remains fragile, and not even the euphoria, hype, and optimism around President-elect Donald J. Trump will be able to resuscitate what President Obama left him.
Interest rates are going up, corporate profitability is anemic, the U.S. economy remains fragile, global growth is underwhelming, Americans are unable to find good jobs, the participation rate is near record lows, Americans are deep in debt, and have little to no emergency fund.
An economic collapse would mean Americans cut back on spending, which would undermine overvalued stocks leading to another stock market crash.