With the bankruptcy of Detroit and the coming financial meltdown of various cities across the country, many are concerned that the United States government is also on the verge of complete collapse. It is no surprise, though: $17 trillion national debt, $122 trillion in unfunded liabilities and expenditures, a crumbling fiat currency and a bloated budget.
At the present time, the federal government embarks upon three options: tax, borrow and print. Right now, the American people are taxed too much. Washington borrows too much money from China, Japan, Russia and elsewhere – the U.S. borrows nearly 50 cents of every dollar it spends. Federal Reserve Chairman Ben Bernanke has the printing presses on during all hours of the day, including Christmas, but he concedes that he’s “not literally” expanding the money supply.
The utter demise of the U.S. government has been predicted for quite some time now. Although when the Democrats are in power, their base likes to deny it – ditto for the Republican Party – it is inevitable that the White House and Capitol Hill will come crashing down. The only thing is that it’s just a matter of time and a question of when.
“I think it’s unimaginable, it could be so devastating, and could bring a strong, worldwide run on the dollar,” stated retired Texas Republican Congressman and three-time presidential candidate Ron Paul on the Federal Reserve’s damage to the economy and the dollar. “We are in uncharted territories. I think we will see changes in our economy and our country almost equivalent to the change that occurred in the Soviet system. I think it will bring down our empire, we won’t be able to afford our welfare state, and we won’t be able to afford taking care of the world…”
In the meantime, there doesn’t seem to be any respite whatsoever. President Obama is still continuing with his anti-free market rhetoric, his persistence in the expansion of government and his love affair with government stimulus, debt and spending. Congress isn’t any better either as it is putting forth legislation that hurts the economy, spies on the American people and doesn’t address any of the fundamental issues hurting the nation.
With that being said, how does one even begin to prepare for the collapse a nation’s economy and the foreseeable insolvency of the U.S. government? Here are six ways to prepare for it:
As the overall economy dwindles, so does the nation’s currency. Since the inception of the Fed in 1913, the dollar has lost 90 percent of its value. Inflation will become rampant and the dollar will be comparable to the Weimar Republic and Zimbabwe. This means, households have to start investing in alternative currencies, whether it’s currencies from other nations, precious metals, bitcoins and other forms.
The ones that will protect you the most will be:
- Other precious metals
- Swiss Francs
- Australian Dollars
Any alternative will be strictly market-based in the future, which means it would be difficult to agree upon a set currency after the status quo has reached its final curtain. If the U.S. instituted a market-based currency right now, we wouldn’t be in this mess.
Not being in debt is crucial to preparing and surviving the economic collapse. What if they begin to place people inside of a debtors’ prison? What if the creditors demand all of their money back instantly? Not owing anyone anything will be a tremendous aid to trying to work through the collapse and succeed at the same time.
Perhaps the empire will fall next year or in the next decade. Regardless, it’s a good idea to start developing a trade. By learning the skill sets of plumbers, carpenters and cooks, you won’t have to depend on the expertise of other individuals. Instead, you can build, fix and prepare without the assistance of your fellow man.
Understanding Real Economics
Take a little bit of time out of your day and head on over to Mises.org. Once there, start to read the works of Ludwig von Mises, F.A. Hayek, Murray N. Rothbard, Frederic Bastiat and Henry Hazlitt. Others may disagree, but perusing Thomas Sowell and Milton Friedman will also assist in your endeavors to learn economics (there is a battle between the Austrians and Chicagoans over primarily monetary policy).
You can either prepare your own or purchase one that is already made. These kits should include first-aid kits, water, food, compass, a Swiss Army knife, money, radio and other important items. There should be two: one in the home and one in the trunk of the car (if applicable).
Just in case, you should always take small bills from your bank account and place it somewhere safe. If the financial institutions break down, similar to what occurred in Cyprus, a significant portion of your money might be confiscated and you will get pennies on the dollar. Little by little, you can protect your wealth (if there is no inflation, but that is impossible).