Sunday, June 10, 2012

How to begin to prepare yourself for economic collapse

I think that the economy of the U.S. (and of the world) is heading for collapse.  If you don't, look at some of these links including The U.S. National Debt Clock and this graph of the national debt (exponential growth 101):

This graph isn't even up to date, our national debt has cracked $15.7 trillion.  USA! USA! USA!
If you think everything is great and will always be great that's fine (and I envy you) but I'm really not interested in debating the issue.  This is what I believe and these are the first steps I am taking and that I recommend everyone take:

1.  Educate yourself about the Federal Reserve. It's a private corporation with a huge amount of power, and as "Federal" as "Federal Express" (i.e. not at all).  Learn why many people want to "End the Fed"

The Federal Reserve
2.  Get out of debt if you have it. Don't fool yourself and think that student loan debt is "good" debt because you can write the interest payments off.  It is not good debt.  You can't discharge student loan debt in a bankruptcy.  It is no accident so many people in our generation are "wage slaves" saddled with tens of thousands of dollars of student loan debt.

My exception is my car payment.  I could pay it off right now, but at 0% interest for the next 3 years I have no incentive to pay it all off now.  I'm just going to bide my time and let inflation do its work.

3.  Get your money out of the banks.  I used a "too big to fail" bank for  10 years. Do you want to be a part of a system where the gains are privatized but the losses are socialized? About a year ago I switched to a local credit union but even now I keep only enough in there to pay my bills.

4.  Keep physical paper cash on hand.  Enough to pay your bills for the next 2-6 months. Learn about fractional reserve banking.  Think about the implications of a bank run when banks only have to keep 10% of their deposits on hand.  Also consider how you would pay for gas or food if your credit or debit cards stopped working.

Prepping: it's so hot right now

5. Stock up on things you need.  I'm guilty of buying frivolous crap as much as anyone else but make a conscious effort to get a stockpile of things you need every day.  The next time you're shopping on Amazon or at Wal-Mart grab some tools or a Solar LED Flashlight   Every time you're grocery shopping make it a goal to add a bulk case of toilet paper or some extra cans of meat or veggies you regularly eat.  Start slowly, but be consistent.  Make sure you cycle through your canned foods, eating the oldest and replacing them with newer cans so your supply doesn't expire and spoil.

6.  Consider buying "insurance" in the form of precious metals.  Mike Maloney is a good intro to investing in gold and silver.  If those metals are out of reach, look at your pennies and save every penny made before 1982 and all nickels.  If you only have $100-200 to convert to precious metals every month, consider silver bullion or buy "junk" gold jewelry for just above melt value on eBay.  I've found some really pretty 14 kt yellow gold pieces for under $150 so I can look fly and be prepared.

I know there are signs on every street corner that say We Buy Gold.  That is a good thing.  You want to be ahead of the curve.  Sell when you see signs on every street corner that say "We Sell Gold".

I know you "can't eat gold" but here's a man from Argentina who describes gold jewelry's role in their economic crisis over a decade ago.

Here's some helpful, introductory resources if you want to learn more:
The Crash Course at
The Day the Dollar Died a 7 minute video

Do you have any other suggestions? What are you doing to prepare for TEOTWAWKI?

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