If the economy collapses, you will lose access to credit and banks will close. Demand would outstrip the supply of food, gas, and other necessities. If the collapse affects local governments and utilities then water and electricity might no longer be available.
A U.S. collapse would create global panic. Treasuries will plummet and interest rates skyrocket. Investors would rush to other currencies. It would create not just inflation but hyperinflation, as the dollar (or the euro) lost value to other currencies.
If you want to understand what life is like during a collapse, think back to the Great Depression. The stock market crashed on Black Thursday. By the following Tuesday, it was down 25%. Many investors lost their life savings that weekend.
It all happened before your time? Correction, scores of countries have suffered an economic collapse in the last 30 years. The most devastating was the collapse of the Soviet Union which brought similar collapses throughout Central Europe. My wife, still in her 50s has survived three economic collapses.
Brace for one out of four people unemployed. Wages for those who still have jobs plummet. Gross domestic product is halved. Tens of thousands hit the road in search of work.
Having some extra food and water is a good idea in general, particularly if you live in an area where bad weather can affect your daily life. To prepare for an economic collapse, however, you’ll need to have months of rations on hand. Stockpile enough food, at a minimum, to survive a season without any incoming produce grown yourself. Store enough water for several months use and make sure you have multiple ways to purify future water supplies.
Stockpile medical supplies as doctors may be in short supply after a major collapse. Another thing that may be in short supply is electricity. Get all the things you’d need for a power outage, including ways to cook food and keep warm (or cool if it’s summertime).
You probably won’t be able to stockpile much food for you and your loved ones. A more sustainable option is to grow your own food. Growing your own food takes quite a bit of trial and error to reach a point where you can live off your own produce, which is all the more reason to start sooner rather than later.
The more you rely on electricity to accomplish your daily tasks, the more you’ll be behind when the power goes out. Solve this problem by learning to do as many daily activities without electricity as possible; get candles and other light/heating alternatives in.
If the market tanks, you may still have some time to buy your way out of a sticky situation before inflation hits or the economy collapses altogether. Keep a hefty sum of cash on hand at all times so that you can make an emergency purchase. You never know when you might have to use it, especially if the electricity is out and no credit and debit card transactions are possible.
In a total collapse, you’ll want barter items. Try to have a little bit of each so you’re prepared for every possibility. Get out of debt as fast as you can! You don’t want to owe your creditors the money you need to survive.
Lower your bills and try to spend less at the store so you can spend your money on more important things. Getting in the habit of eating right and exercising is very important for preparing yourself for a survival situation. When the economy collapses, chances are you’ll be burning a lot more calories simply trying to survive than you normally do.
After an economic collapse, there are going to be a lot of desperate people out there who won’t think twice about breaking into your home and taking your supplies so they can feed their families. Reinforce your doors and windows, set up alarms so they don’t catch you off guard, and put up solar-powered motion lights and cameras to deter them.
Countries that experience an economic collapse typically see a spike in kidnappings as well. Kidnapping a person of wealth and demanding a ransom is one way for desperate people to acquire money when no other means of acquiring money are available. It isn’t only the wealthy that are at risk as desperate kidnappers will take anyone in the hopes that someone will pay the ransom.
Even if you can afford to continue feeding your pets during an economic collapse, there’s still no guarantee that they will be safe. Domesticated animals make for much easier targets when one is hungry.
When people are desperate and angry, they often start rioting. People take advantage of the chaos to get away with all sorts of crimes from robbery to vandalism to murder. If caught up in a riot, it’s essential to make your way to a less crowded area or indoors as soon as possible.
In desperate times, robbing a person’s car is typically safer than robbing a person’s home since the individual being robbed is much less likely to be armed inside their vehicle than they are inside their home.
Due to factors such as no garbage pickups, unclean drinking water, the spread of disease, inability to afford medications, and a spike in violent crimes, people tend to visit hospitals frequently during an economic collapse. This leads to hospitals becoming overcrowded and unable to take care of everyone who walks through the door.
Going to the fuel station to fill up may not be a possibility. Vehicle fuel will likely be rationed if it’s even available in your area. Of course, without gasoline escaping a dangerous location or situation becomes much more difficult.
More and more people turn to criminal activity during an economic collapse. In addition to desperation, another factor fuelling gang activity during times of economic downturn is the fact that gangs know the city will have fewer resources available to combat their activities.
In an attempt to curb some of the violence and chaos that ensues after an economic collapse, the government (regime) will likely enact martial law and turn over the governance of the people to the police and military. In some ways, this could make life safer in extremely desperate times. In other ways, though it would rob you of your most fundamental rights and create a power-grab that the government may never bring to an end. Could it happen? It does in other countries why not yours too?
About the Author
Michael Walsh is the author of over 70 published book titles. He has also ghost-written (book edited) over 40 books, novels and biographies for writer clients. He offers professional help for writers: editing of website content, books, novels and marketing content. You write it HE rights it.
Michael Walsh is available for Freelance work – contact links below