A financial meltdown produces devastating results in any economy. Historically, the effects of a major financial meltdown include lack of food and basic supplies, civil unrest and hyperinflation of a country’s currency. When a nations’ economy melts down, things begin to fall apart very quickly. Unfortunately, most people are caught completely off guard when a financial collapse occurs, and they suffer through grievous and even life threatening consequences. Fortunately, there are steps that you can take to prepare for a financial collapse.
Build Up an Emergency Food Supply
When a financial crisis occurs, the food supply chain can collapse very quickly. Today’s food supply systems depend upon complicated and intricate methods to function efficiently. Any breakdown in the supply chain can totally disrupt the food distribution system. For example, the lack of fuel for the delivery trucks can leave food spoiling in the warehouses. Additionally, the modern “just in time” inventory system leaves stores with only a short supply of food on hand. Stores will usually run out of food within 24 hours in a crisis situation.
So, it is important to start building up an emergency food supply as soon as possible. Remember, that when the first signs of trouble occur, there will be a run on the grocery stores. Food, water and other necessities will quickly disappear. The resulting scarcity of these basic necessities will cause rampant inflation. Prices will sky rocket for even the most simple of items. You can protect yourself by storing up a supply of food, water and other necessities that will provide for your family for several months.
Provide for Self Defense
When a financial meltdown occurs, a civil society can break down very quickly. Since a financial meltdown is usually accompanied by shortages in food, utilities, and other necessary services, people become desperate. Unfortunately, these hungry, desperate and unprepared people will do anything to survive; including murder. Just look at what happened when the economies of Argentina and Venezuela collapsed. People rioted in the streets. Gangs of thieves roamed the streets looking to steal anything of value. Therefore, you should have a means to protect what you have.
Today, firearms are by far the best means of self-defense available to citizens. If you choose to utilize firearms in your self-defense strategy, budget a little bit monthly to build up your ammunition store. Make sure to buy a variety of firearms including several rifles, shotguns and pistols. Remember, you can never have too much ammunition on hand. In addition to its value for self-defense, ammunition is also a very valuable commodity if the currency completely collapses into a bartering system, and can help hunt for food. Also, it is very important to become proficient in the use of the firearms that you own. You don’t want to wait until a time of crisis to start learning how to use your weapons.
Protect Your Wealth
The most devastating result of an economic collapse is the corresponding devaluation of currency. Look at the hyperinflation that occurred in Zimbabwe, Venezuela, Argentina and the Weimar Republic. Hyperinflation involves rapid inflation rates accompanied by a rapid printing of money by the government. When this happens, a countries currency becomes increasingly worthless. Inflation was so bad in Zimbabwe that the government had to issue $100 trillion dollar bank notes. In the Weimar Republic, the cost of a loaf of bread had gone from 250 marks to 200,000 marks between January and November of 1923.
Some preparedness experts recommend investing in precious metals in order to sure-up currency against hyperinflation. The problem with this strategy is the extreme volatility of commodities markets and low returns. This strategy will, in fact, make your portfolio riskier, rather than safer. A better strategy is to put all the resources you can into getting out of debt so that you can afford to save and invest. If you have the money and the energy to manage it, investment real-estate is a far safer non-currency investment with far higher returns than gold, oil, or other commodities.
The key to surviving an economic collapse is to prepare for it ahead of time. People who take even the smallest steps of preparation have an enormous advantage over those people who are totally unprepared.