The way financial experts and CNBC analysts have been acting over the past month one would conclude that the United States economy is booming again. As the Federal Reserve injects at least $85 billion a month into the economy, the stock market remains above 14,000. Heck, the anti-gold people were filled with glee and thrilled to see gold plummet over the last several days.
Is the economy improving? Three answers: no, positively no and far from it.
Although the current administration and Keynesian economists would like to dismiss it, the near $17 trillion national debt is a major burden on the overall economy. The interest payments on the debt alone will take up a significant chunk of the federal budget in the next several years. The labor market is in a crisis, the cost of many items is rising and the market would collapse if the central bank went, to quote David Stockman this week, fishing.
Even the words from the former Reagan budget director would make anyone want to place an order of razor blades:
“There is no way a deficit doesn’t become a tax increase sometime down the road. We are burying the next generation in debt. The whole system is out of kilter,” explained Stockman. “As we get down the road and finally the day of reckoning comes and we have to begin to manage this debt, which is totally out of control. We’re going to be taxing everybody.”
The U.S. is far from a recovery. One major element of the political discourse is taxation. Politicians like to say that if the government just taxed the rich more then it would help the economy and assist significant portions of the population. Again, this will not spur a recovery.
So with no light at the end of the tunnel what should someone do to protect themselves from an economic collapse? The American people can undergo a number of actions to protect their wealth, defend their family and save the household. Here are 12 ways to do so.
1. It may be cliché to offer this suggestion now but purchase precious metals. With these low prices, it’s a perfect opportunity to start accumulating gold and silver bullion. Gold is money and is a perfect alternative to fiat money (U.S. dollar, euro, etc.).
2. Acquire foreign currencies to offset the demise of the U.S. dollar. Some of soundest of the unsound currencies in the world are the Swiss Franc, New Zealand dollar, Australian dollar, Singapore dollar and the Chinese yuan renminbi.
3. Start taking money out of your bank account and store it in a safe or some other place in your home that is secured and out of sight. With the confiscation of money by the financial institutions in Cyprus, it could come to a hometown near you. Take out little bits at a time and be careful.
4. Look into any other forms of alternative currencies. Although bitcoin’s bubble popped, it’s still wise to study it and consider buying a small amount. Other alternative currencies could be local currencies, the Community Exchange System, Ven and Liberty Dollar.
5. Being debtless may seem to be everyone’s dream, but when the economy collapses it’s absolutely crucial to be out of debt. This includes student loans, credit cards, a lease and other consumer debt. Interest rates will inevitably rise and the system could be in total disarray. If you don’t owe anyone anything then you’re safe and no one can bother you.
6. Take the time to understand how the U.S. got into this mess in the first place. By studying economics, particularly from the Austrian persuasion, and politics then you’ll have the knowledge of how to survive the pending financial doom. Some of the recommended authors would be Murray N. Rothbard, Ludwig von Mises, Milton Friedman, Peter Schiff, Ron Paul, Jim Rogers and much more.
7. Make a list and check it twice. Decide what you need and what you don’t need. This wouldn’t necessarily have to be for the collapse, but this is a good method for your day-to-day lifestyle to save money. This way, you will refrain from blowing through your reserves.
8. Start constructing a survival kit, storing food and water and anything else you need to have in the event of an emergency. By attaining filtered and non-filtered water and a long-term food supply, you won’t need to depend on heading to a grocery store where there will most likely be no food items and beverages.
9. Knives, ammunition and any other tool that can protect your home and family. These tools are useful in gathering items from the outside. An assortment of knives, including a Swiss Army knife, should always be in the home at all times.
10. A backpack should always be ready at the front door or stored somewhere convenient in your home. The backpack should be filled with all of the necessities: personal hygiene essentials, water, food, medical supplies and self-defense equipment.
11. A radio is handy to have to get information from the outside (don’t forget a lot of batteries too!)
12. Remain calm and maintain a positive state of mind. An economic collapse is dreadful for anyone to suffer through, but by not panicking and continually talking about the negatives can hurt your chances of survival and even recovering in the future.