Economic Collapse is Coming
Do you know how to protect yourself from an economic collapse if it happens? What do you think would be the best course of action for preparing for and surviving a complete collapse of the economy? I don't mean to scare anyone with this article but I think there is a good chance that the economy will collapse sometime in the next 5 years, for a number of reasons. What you need to do is prepare yourself for a possible meltdown of the economic system. If you do and the economy does collapse, you'll be ready for it. If it doesn't happen, at least you were prepared!
Why the United States Economy Could Collapse in 2013
First, you must understand why an economic collapse could happen right here in the United States. The problem is simple - too much debt. The United States has been running large deficits for years now and it is finally starting to catch up with them. They have been using borrowed money to finance their expenditures for years - we call this deficit spending.
The crash on the US economy could happen very soon for a number of reasons. First, the United States relies on borrowed money to fund themselves, as I said above. People who lend us money include countries like China and our Federal Reserve Bank. But what happens if China decides to stop lending us money?
The collapse will happen when the United States cannot pay its debt anymore - they will either default on their payments OR print money to fund it from Ben Bernanke and the Federal Reserve.
The First Sign of the Coming Collapse - Rising Interest Rates
They have absolutely nowhere to go but up. Interest rates are simply the cost of borrowing money - the Federal Reserve has lowered them to zero to try and get the economy going and encourage people to buy homes.
This also allows our government to pay less interest on the debt each year, so they can fund other things like wars and paying for programs.
However, what will happen when interest rates rise? This will cause the United States payments on the interest of their debt to rise dramatically. We will then be forced with the very hard decision of making cuts to other things, so we can afford to pay the interest on the debt.
Peter Schiff Explains the Problem
When inflation picks up - and it will as the Federal Reserve bank is printing money - interest rates will be forced to rise. Also, the Federal Reserve might have to raise rates to starve off inflation. This will cause banks to fail, says Peter Schiff, an economist and expert on the topic.Credit: Sadhillnews.com
Is Hyperinflation in the United States Possible?
Many people out there, Schiff included, feel that Hyperinflation is a strong possibility. What this means is that the Federal Reserve will keep printing money, which will cause people to lose confidence in the dollar and cause prices to skyrocket. Things such as gas and food could triple in price overnight if this happened.
Hyperinflation in the United States is a very strong possibility because of our humongous national debt. It's currently 16 trillion and growing each day, and with President Obama re-elected in 2012, it looks like there is no signs of this turning around any time soon. What will happen is the United States will monetize the debt - have the Federal Reserve print money to help pay off the debt.
What to Do When Inflation Rises Fast
The first thing you want to do when inflation starts to pick up is make sure you own hard assets - things that are real. Real Estate, farmland, gold, silver and oil should all do extremely well over the next few years. You want to get out of United States stocks and especially fixed-income, because inflation will erode the value of these investments.
Thankfully there are a number of great economists out there for have seen this coming for a while and have warned people. They offer great advice on exactly what to do during an economic collapse in the United States.
The Real Crash by Peter Schiff is the first book I would strongly recommend. Schiff has great credibility because he correctly predicting the 2008 housing collapse - in 2007. He gives plenty of tips on what to invest in and how to survive this decade. His other book Crash Proof is also a must-read.
The Crash Course is another great book which goes even deeper into the problem.Author Chris Martenson explains how this collapse is inevitable because at one point economic growth will just not be possible anymore. He explains how our worlds resources and economy are connected to one another. He explains how exponential growth combined with an economy that requires infinite growth is just not possible in the long run. It's an amazing book!
How to Survive During Hyperinflation or a Great Depression
What your going to need to survive is plenty of non-perishable food, because during hyperinflation their will most certainly be massive food shortages. You need to get a good survival or disaster kit that has enough food, water, first aid and other supplies to last you at least a month, maybe even up to 6 months.
I sincerely hope that an economic collapse in the US does NOT happen, but the odds are against it in my opinion. The US has run up such a large national debt that I don't see any possible way they can pay it off, but to print money. This will result in massive inflation and possibly hyperinflation, which has happened in numerous countries in history including Germany, Zimbabwe, Argentina, etc.
Remember, if you don't prepare and it DOES happen, you and your family will be safe. If you DO prepare and it doesn't happen, then you'll just feel a little stupid - but you'll still have essential food and supplies you can still use. I wish you the best of luck in surviving an economic collapse!