Economic collapse is a terrifying possibility. It will almost certainly happen and when it does, it will hit harder than any natural disaster. Preparing for it should be one of your top priorities.
I hope that our previous article about financial collapse hasn’t damaged your confidence about your ability to survive. Remember, you are one of the people who are preparing for a disaster to strike. That means that you will be ready when the time comes, although you may be one of a very few who are.
If you’ve been following our tips, you won’t have to go to a FEMA camp with everyone else to survive. When your neighbors are depending upon the government, you’ll be able to depend upon yourself and no one else.
When that financial collapse comes, it’s going to affect a lot of things. How many aspects of daily life it affects will depend a lot on how serious the collapse is.
Just go here to see how big the collapse of the US dollar is expected to be (and how you can survive):
Of course, the longer it takes for the collapse to come, the worse it will be when it finally gets here. Politicians think that they can just put it off indefinitely—but for them, indefinitely equals when they leave office.
There are many things you should expect to happen. Here are the top five:
1. Money Will Become Worthless
Runaway inflation always accompanies a financial meltdown. The money you have so carefully saved over the years will become worthless in a matter of days.
People will stop accepting American dollars in payment for goods and services. Why would they accept worthless paper, when they might not be able to spend it? Bartering will become the normal way of doing business when SHTF.
The items you have stockpiled will be worth much more than their current cash value. You can barter a roll of toilet paper or a can of chicken. You can’t barter with worthless paper money.
Gold and silver will retain their value as well. Actually, precious metals will increase in value astronomically. However, you may not be able to cash in on that increase in value until the crisis is over and things return to some semblance of normalcy.
2. The Supply Chain Will Break Down
With the loss of income, companies won’t be able to pay their bills. Since most businesses operate on a net-30 basis, after those thirty days, their suppliers will realize they aren’t going to get paid. The next step will be to cut off credit.
This will be the onset of a domino effect. One business will fold because it can’t pay its bills. That will cause financial strain on its suppliers. If enough of the suppliers’ customers fold, they’ll run out of money and go bankrupt as well.
It won’t take long before businesses all over the place will be closing their doors. Oh, it might take a few months for that to happen, but that’s really not all that long.
A general breakdown of the supply chain means that the things that we buy on a day-to-day basis won’t be available. We’ll go to the grocery store and find the shelves empty. It will become harder and harder to buy the basic necessities for survival.
That’s why you’re building a food stockpile. You’re going to have to depend on it—and the other survival gear you are stocking up on—because you won’t be able to find anything in the stores.
3. Utilities Will Become Unreliable
With the reduction in income, utility companies will have to find ways to cut costs. The first things to go will be replacing outdated equipment and performing preventative maintenance. These are great when the money is there to do them, but a burden when it isn’t.
With reduced maintenance, you can be sure that there will be more blackouts, brownouts and times when the city water service is shut down. How often that happens will depend on how long and how severe the collapse is.
As the crisis continues, these problems will increase in frequency and duration. There will be more and more problems caused by these services going out.
The only solution is to have alternate means in place so that you can get by without electrical power and city water. Many preppers install solar power systems, wells and wind generators to prepare for this eventuality.
4. Riots and Lawlessness Will Become Common
Countless thousands of people will lose their jobs. Being unprepared to face the situation, they will be angry and scared. That will increase when they find that Big Brother isn’t going to be there to help them out.
Mobs of protesters will become commonplace. Those mobs will quickly turn violent as people vent their anger and fear. Rioting, vandalism, looting and destruction will become the expressions of that mob.
A funny thing happens with mobs. Those who are peaceful, law-abiding people in everyday life will commit all kinds of crimes. People who have never even received a parking ticket may do some of the vilest, most violent things, all because of mob mentality and the unruly emotions of that mob.
The only way to deal with a mob is to avoid it. I realize that is easier said than done, but that’s what you have to do.
If you ever find yourself in a mob situation, flow with the mob and gradually work your way to the edge. Once there, you can slip quietly away.
5. Police and Emergency Services May Abandon Their Posts
If the financial crisis gets bad enough, there may not be enough money to pay police and other emergency services. While most police officers are people of integrity, who would want to go to work, putting his or her life on the line, while getting nothing in return?
Those police officers and other first responders can easily reach the point where they say, “I’m better off staying home.”
When that happens, the mob violence will worsen. Mobs that realize that they don’t have any risk from the police are the worst. Being totally unchecked makes it even easier for them to become violent.
The only protection in such a case is to be ready to protect yourself and your home. Having firearms and knowing how to use them then becomes an important part of your survival.
Now you know five of the things that you need to watch out for when the financial collapse comes—and that you need to prepare for. While you can’t control everything, you can control your actions and reactions.
Keep on prepping, and don’t forget to check out the US Currency Collapse Survival Guide:
By prepping now, you can be ready to feed your family and keep it safe, even when the supply chain goes down.