The U.S. has amassed a huge amount of debt that can no longer be maintained. However, it is not just the U.S. other countries are experiencing collapses and hyperinflation as we speak. Look at Venezuela, which has the largest oil reserves in the world. Many countries are suffering and this will eventually spread to the U.S. and Canada.
The government and its citizens are not the only debt holders. Corporate debt has become an even larger problem. Huge layoffs have happened in the automobile and retail sectors. Example: Ford, GM, Kohls, Target, Footlocker, Sears, etc. Unfortunately, there is more to come and your job could be next.
The stock market has performed well for an unusual amount of time (over 10 years) without any healthy corrections. Some say that it has been artificially inflated for years and if it does crash, it will be similar or worse to the Great Crash of 1929.
What were the effects of the 1929 Crash?
The Great Depression of 1929 devastated the U.S. economy. Half of all banks failed. Unemployment rose to 25 percent and homelessness increased. Housing prices plummeted 30 percent, international trade collapsed by 60 percent, and prices fell 10 percent per year. It took 25 years for the stock market to recover.
Economic Collapse Scenarios
Any of the following seven scenarios could create an economic collapse.
1. If the U.S. dollar rapidly loses value, it would create hyperinflation skyrocketing the price of everyday goods (example: milk, cheese, and gas)
2. A bank run could force banks to close or even go out of business, cutting off lending and even cash withdrawals.
3. The internet could become paralyzed with a super-virus, preventing emails and online transactions.
4. 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.
5. 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. The economy is 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.
6. Natural disasters could cause a localized collapse. If Hurricane Irma had hit Miami, its damage would have been worse than Katrina. If the 2019 polar vortex breakup had lasted weeks instead of days, cities would have shut down. Many of these extreme weather events are getting worse thanks to global warming.
How to prepare for an economic collapse/crisis?
Step 1: The first step is to understand and re-learn how the monetary system works. The minute your hard-earned dollars are deposited into a financial institution. Those dollars no longer belong to you and your rights to it are diminished.
Step 2: Make your own investment decisions. In this economy, preserving what you have is the biggest challenge. Invest conservatively until you have researched and understand the risk/reward of more speculative and risky investments (stocks, etc.)
Step 3: Keep a significant amount of cash on-hand. You may consider this a risk, which it is. But keeping all of your dollars in a bank can be just as risky. Banks can close, freeze your accounts or engage in Bank Bail-Ins during tough times.
Step 4: Consider Gold & Silver. Owning physical Gold & Silver is the most ideal, but you can also purchase through a brokerage account using a gold ETF (Exchange Traded Fund). Did you know that you can buy gold or gold ETF’s in an IRA account?
Step 5: Consider Cryptocurrency. The Cryptocurrency or Digital Asset infrastructure and economies are growing rapidly. This new asset class is going to be a part of our lives whether we like it or not. Currently, it also offers an opportunity to multiply our wealth exponentially by holding the currency(s). Our research shows that the price of Bitcoin and other currencies will explode within the next 12 months, with a lot of the gains happening in 2019 alone.
Where to buy cryptocurrency with U.S. Dollars?
1. Coinbase.com
2. Gemini.com
3. Abra.com
4. Binance.com
5. Atomicwallet.io
6. etoro.com