Economic Collapse

great depressionEconomic Collapse – The Next “Great Depression”

The potential for economic collapse has become increasingly more likely in the U.S. and the world. Our national economy has become significantly more fragile due to the existence of  huge financial institutions and companies worth billions of dollars that can bring entire national and the world economy to its knees when they fail.  Long forgotten are the stories told by many of our grandparents of the turmoil and strife that resulted from the Great Depression of the 1930s. As a result, most people fail to consider how they will survive and lack the required skills to survive in the event of a major economic downturn.

Landslide Into a Depression

Most of us can remember vividly, the near economic collapse resulting from the U.S. housing market bubble. This event in the summer of 2007 put the world economy into a tailspin and was the primary cause for the U.S. recession from 2007-2009. The government’s solution: Bail out companies that are “too large to fail.” The federal “bail-out” program provided loans totaling over $900 billion dollars, with almost $400 billion going to “government-sponsored” companies or government agencies. This is risky business when the government itself is dealing with unprecedented levels of debt and operates under a crushing budget deficit.

Being Ready for the Impending Economic Collapse

You need to prepare NOW! It is only a matter of time, based on current trends before the U.S. economy reaches a breaking point and plummets into total economic collapse. The result to the average American is the same as with other disasters; when you are unable to obtain basic necessities of living, chaos ensues.

One of the best things you can do to survive economic collapse is to become debt free. Regardless of the value of currency, if you don’t owe anyone money, your dollars (regardless of devaluation) will go further.  Unfortunately, our generation has fallen prey to a desire for instant gratification. We have been taught that it’s ok to be in debt so long as our FICO score is good and we maintain a “good” debt to income ratio. This belief is fallacy and preppers should strongly consider living on a zero balance, cash based budget.