I’m convinced that our economy is in the early stages of complete collapse. The collapse won’t happen over night but will be a drawn out process due to the policies that are being legislated into the economy and the current system. The reality is that since our economy and financial system is dependent on continuous and ever-expanding growth, we are doomed to collapse. Our economy is over-leveraged and depends on continuous growth and inflation. In 2008 the growth stopped and thus we collapsed temporarily. Now, the Fed injected trillions to jump start the economy temporarily and put off the complete collapse, but this has fixed nothing. The trillions will not result in real growth, just a temporary boost. Next time even more trillions will be required and more after that. It is impossible to continue expanding since we’ve reached max expansion. The result is absolute contraction. It is unavoidable. So, how do we prepare? What should we be doing now, while we can?
Let’s look at a couple of practical ways you can prepare for economic collapse that is undoubtedly coming.
Invest In Precious Metals
While you shouldn’t put all your eggs in the precious metals basket, gold and other precious metals tend to shine during times of uncertainty. When the US dollar is shown to be absolutely not a safe haven, the true safe havens will come to the surface, namely precious metals. Gold has and always will be considered money and best of all it can’t be printed by central bankers. Keep some of your assets in physical gold and silver that you keep hidden on your property. Do not keep it somewhere else that you don’t have access to and especially not in a bank safety deposit box. Buy your physical gold and silver in cash, don’t tell anybody about it, and hide it somewhere where only you know where it is.
Invest In Tangible Goods That You Need
Extending this theme of investing in real assets, let’s now look at tangible goods and consumer products that you need both now and in the future. Why stock up on consumer goods? Well, you need them and always will so that means their value doesn’t really matter. You will consume them eventually. Instead of buying them down the road, you’ve already invested your money into these assets.
If you consider money and the purpose of money, it’s purpose is to be transferred into consumable goods that you need. Typically you transfer some of your money immediately into consumable goods or you save it so that you can use it later on to transfer into consumable goods. Think of investing in these products as simply transferring into consumable goods immediately. This removes the risk of keep money in paper assets which is a very smart thing to do in a potential economic collapse.
Furthermore, if inflation materializes, you will actually realize a gain by buying goods cheaper now than when they will be more expensive down the road. The “gain” you make on this transaction is also tax free! It’s a win/win situation with zero risk.
Items to consider:
- Freeze dried food
- Water – the most important asset you can have
- Toiletries
- Tools
- Clothes
- Shoes
- Razors
- Liquor
- Guns and ammunition
Transition Out Of The Financial System Where Possible
You want to remove as many of your assets from the financial system as possible. How much of your money is nothing more than a digital entry in a database that you view via your online bank account? In a collapse, this money might disappear. Move your assets out of paper assets that are in the financial system and into real assets as described above. This means stocks, bonds, savings. Now, you should keep some money in the financial system, but only a small chunk of your overall net worth. Think of this as another form of diversification.
In 2008, we were told that the entire financial system almost went under including banks, money markets, etc. The reality is that nothing has changed since then so the risk is still there. Make sure you mitigate this risk.
Educate Yourself Further
It’s important that you read quality websites and information on the reality of the American economy. Continue your reading and education and prepare accordingly. By reading this, you are ahead of 90% of the masses that will be completely unprepared for an economic collapse.