An Economic Collapse is one of the scariest things that can happen to a country, and it also has devastating effects on the world as a whole. The world is changing. That's a statement that might not seem like much, but it's true. Many changes are happening to the world as we know it, and there will be more in the future. It is a common misconception that economic collapses only happen in third-world countries.
The reality is, when an economy suffers from too much debt and not enough growth, it will eventually collapse under its weight. In the past century alone, we have seen several major global economies come to a grinding halt: Japan (1989), Mexico (1994), Argentina (2002) ' Egypt (2011).I know you are likely wondering what to do if there is an economic collapse.
No one knows for sure when or how the next financial crisis will occur (no matter if it's a recession or not), but we can prepare our finances in advance and try to reduce our exposure by diversifying.
In this blog post, we will discuss everything you need to know about an Economic Collapse. First, we'll talk about what causes an Economic Collapse and then follow up by talking about how to survive after one takes place. If you're interested in learning more, please read on!
What Happens When An Economic Collapse Occurs?
Inflation: When the price of goods and services rises, it causes inflation. The amount of money you have in your wallet will not be enough to buy as much food or clothes because prices are higher, leading to a fall in demand for these products. This leads to unemployment, decreasing production and investment since people don't have any spending power; they won't allow themselves new items or services.
An example would be when oil was $100 per barrel then quickly became 300 dollars per barrel due to speculation on the market affecting supply chains around the world, leading us into an economic crisis globally that has had long-term consequences.
Inflation also makes borrowing more expensive as interest rates rise over time, making it more challenging to buy a house or have any credit.Economic collapse can ruin the future of a promising country, and it can lead to higher levels of unemployment, crime, social unrest, and civil disobedience.
In the United States, consumer spending makes up 70% of GDP, with 40% on necessities such as groceries or gas.This means if people don't have these things, they will be low on money, leading to a shortage in food supply and an increase in prices for goods when inflation kicks into high gear.This is just one example, but economic collapse has far-reaching outcomes across all aspects of society, from agriculture to manufacturing and construction industries. It also leads to increased poverty levels because people lose their jobs, thus making them unable to purchase anything even at lower prices.
Economic collapses are usually caused by a government or central bank's failure to maintain its currency's value during high inflation levels.When prices rise faster than incomes and public confidence falls (known as hyperinflation), people try to spend their money before it loses more value, leading to shortages.
Hyperinflation is often followed by social unrest, including rioting such as those seen recently in Brazil. It also makes paying off debt difficult because wages don't keep pace with inflation rates; there may not be enough money available for basic.
The 11 worst cases of hyperinflation: Zimbabwe, Germany post-WWI, Hungary 1956 and 1920s equivalent, Venezuela 2013 to present day, Sudan 1983 - 1985, Bolivia 1980 - 1981 and Peru 1990+ & 1971.
The other seven are not as bad but still worth mentioning; Argentina 1976, Brazil 1988, Yugoslavia 1989, Poland 1923 – 1924, Russia 1992, Israel 2007.
These 11 examples should be enough testimony for what may happen if we don't take action soon on our financial situation.
Signs of economic collapse
These are the signs of an economic collapse one should look out for :
Economic collapse is the ultimate doom scenario for any economy and society. It can bring about a domino effect in which businesses, banks, and other financiers all go bankrupt due to a lack of revenue from consumers or investors.
This leads to people losing jobs and spending less money, causing more companies to close down their operations because they can no longer afford it. When that happens, no one will be left with enough resources to keep things running like before when everybody was buying stuff and spending money despite not purchasing food on occasion. This could lead to a significant drop in standard of living and widespread poverty if nothing is done in time.
A lack of revenue coming in from consumers or investors leads to people losing jobs and spending less money which causes more companies to close down operations because they cannot afford it anymore. This can lead to widespread poverty if nothing is done in time.
How do you survive an economic collapse?
1. Build a stockpile of food and water
You need to have a stockpile of food and water. It would help if you bought things like canned goods, bottled drinks in plastic bottles, or boxed foods with long-lasting shelf lives. You can store these items for years without worrying about spoilage as long as they are kept at the right temperature. If you live near freshwater sources such as lakes, streams, or rivers, filling up your bathtubs might be a good idea!
Likewise, if you don't want to use traditional containers but still need something relatively airtight that's easy to fill quickly (and doesn't require tools), consider using large garbage bags - fill them up one by one, and voila! Water storage is swiftly done.
2. Keep your car in good condition - make sure it's always full of gas, check the tire pressure, change the oil regularly, etc.
Your car needs to be in good condition at all times, but especially when the gas station is empty! This can be tough if you live near an area with a high risk of economic collapse. The best thing you can do is keep your car in tip-top shape and always have plenty of extra fuel on hand at home - that way, if it's possible to get more fuel during an emergency, then you'll still be able to go for many miles before running out.
If possible, also consider installing a solar panel kit such as this one so that your vehicle will run even longer when there are no other sources of power available (allowing for maximum safety!).
3. Store cash for emergencies
It would help if you had cash for emergencies. If you don't, you won't have access to many resources during times of crisis, like an economic collapse or other natural disasters. Money comes in handy for many different things, from paying for food to buying new clothes. In an economic collapse, it could be used as a means of exchange to barter with other people for goods and services.
4. Have an emergency plan with your family, so you know who to call if something happens
An emergency plan with your family is essential because it could be challenging to contact them during a crisis. Create an emergency plan with your family -Include the phone numbers you want everyone in the group to have and share -Choose who should take care of each of your children if something happens to one or both parents.It is also wise to let all members know that they're part of this plan to be ready when the time comes.
5. Keep your car in good condition - make sure it's always full of gas, check the tire pressure, change the oil regularly, etc.
It is vital to keep an extra gas can in the trunk for emergencies to avoid potential fuel shortages when an economic collapse strikes or any other natural disaster. Ensure your car has a spare tire and know how to change it if needed. Keep your car tuned up by going through regular maintenance schedules such as oil changes, tune-ups, inspections, etc. This helps in a smooth journey if need be of moving to a safer place during a disaster.
It is vital to have a set of jumper cables inside your vehicle, so you're prepared should someone else break down nearby who needs some help with their battery or alternator while on the road or if your car is broken amidst an economic collapse.
6. Copy all necessary documents (passports, birth certificates) and store them somewhere other than your home if they are lost or destroyed by fire or flood.
It is also a good idea is to make digital copies of all your important documents and place them in the cloud. Suppose you are unable to access this information. In that case, it will be difficult for anyone else to steal from you or make fraudulent transactions on your behalf if they do not know which account belongs to you during a natural disaster. You can also make hard copies of the most crucial documents as a backup plan if you need to show some documentation before crossing borders or accessing specific services during an economic collapse.
Documents are necessary more so after a natural disaster, life must continue, and the need to present your documents for job application is essential.
7. Get out as much information from banks as possible before shutting down their servers during an economic collapse.
Banks are set to close their servers during an Economic Collapse or Any other Natural disaster. Make photocopies of bank statements and keep them at work or someone else's house.This is a precaution the banks take to avoid fraud and identity theft, but it also means that you will not access your account for days or months, depending on how long the financial crisis lasts.
You must get any information from your bank statements as soon as possible because they may shut down before you know what has happened. Make photocopies of all your documents at work (or someone else's) house so that if something happens where there is no power, these copies can still be accessed by employees without using electricity.
It's hard to imagine life without the modern comforts of electricity and running water. But what if you lost your job, couldn't pay rent or mortgage, and had no food? What would you do then?
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