Economic Collapse

Economic Collapse

In an economic collapse, the national economy collapses. Economic activity falls in the long term, poverty grows and the social order is falling apart. There are protests, riots and maybe even acts of violence. Sometimes the cause is a deep recession where society still functions almost normally (only is poorer). But it can also be a lot worse. Prepare for the worst, but adapt your actions to the current magnitude of the collapse. You can prepare for an economic meltdown by securing yourself financially, storing essentials, and tracking economic indicators.

Financial preparation

Invest emergency capital. 

If you live month-to-month and lose your job during an economic downturn, you could find yourself unable to pay your house payments and living in poverty. Finding a new job to continue earning income becomes difficult. Save enough to last six months.

  • If you want to pay off your debt, save up about $900 and use all your remaining income to pay off your debt. When the debt is gone, you can save more money for your emergency capital. 
  • Don’t save your emergency capital in your checking account lest you be tempted to squander it. Look for a form of investment that involves little risk but earns interest. Put the money in a savings account, for example.
  • In a full economic meltdown, you won’t have access to your checking account because the financial system collapses. Your money may also be useless or worth nothing. Therefore, also bet on other goods that you can trade during an economic collapse, such as alcohol, precious metals (gold and silver) and petrol.

Always have cash in the house. 

It may be difficult for you to liquidate the emergency capital you have invested. For example, you have to sell bonds. If you have invested your money for a certain period of time, you may be fined if you ask for it back before then. If you have a savings account with an online bank instead of a physical bank, it may take a few days before you can withdraw your money. It’s important to have cash on hand, either from your savings account or in a box at home. This allows you to bridge the time until you can liquidate your emergency capital. 

Find another source of income. 

Work from home as a second mainstay. If you lose your job because of the economic collapse, it becomes difficult or even impossible to find a new job. If you have an alternative source of income, you can keep your house and not become poor. Base your home business idea on your skills. Do something you love to do. Consider how likely it is that people will use your service during an economic downturn. People need necessities like clean water and food more than an interior decorator. 

  • Offer people something for their home, like cleaning, tidying up, cooking, or decorating the house. 
  • Sell ​​goods that you make yourself, such as a baked item, customized clothing, or jewelry.

Pay off your debt. 

During a financial collapse, many people will lose their jobs and homes. To be prepared for this, you should pay off your debt as soon as possible. Then if you lose your job, you don’t have to worry about how to pay your bills. The worst debt is credit card debt. With high interest rates, credit card debt can cost you dearly. 

  • Create a budget to track your income and expenses. Plan so that at the end of the month you have money left over to pay off your debt. Lower your expenses and find an additional job to generate more income
  • Create an amortization schedule. There are different methods. Be consistent with whatever method you choose. 
  • You can rank your debts from smallest to largest, regardless of interest, and pay off the smallest first. That creates a certain momentum. 
  • You can also use the “laddering” method. You pay off the debts with the highest interest rates first. This makes the most mathematical sense because you pay less interest in the long run. 
  • During an economic meltdown, your creditors probably have better things to do than take care of your debt. Currencies may be badly depreciated or completely useless. Maybe debt isn’t worth anything anymore.

Store the essentials

Store water for emergencies.

During an economic downturn, electricity and water may be cut off or you may not be able to pay for them. But you need clean water for drinking, cooking and washing. You can buy bottled water or store it in your own containers. When you run out of water, you can purify contaminated water.

 

  • Store at least 3.8 liters of water per day per person for at least three days to two weeks. Include pets as well.
  • If you store water in your own containers, you should first wash them with dish soap and water and disinfect them with a solution of 1 teaspoon of chlorine bleach to 1 liter of water.
  • To make water safe, you can boil it and run it through a clean piece of cloth, a kitchen towel, or a coffee filter.

Store groceries.

Your typical weekly shop will dictate what you should stock. You need durable foods that don’t need to be refrigerated and provide you with the nutrients you need to survive. If the worst comes to the worst, your diet will be very unfamiliar, but you’ll be glad when the time comes. 

  • Buy groceries that don’t need to be refrigerated or frozen so you don’t have to worry about power outages. These include canned foods, peanut butter, and beef jerky.
  • Buy foods that are high in nutrients and easy to store, such as dried fruit, nuts, beans, canned meat and vegetables, and powdered milk.
  • Don’t buy snacks that expire quickly. Prefer to buy pasta and pasta sauce, soups, sugar and honey for storage and baking, dried fruit, coffee, tea and hard candies.
  • Store infant formula as needed.
  • Also buy food for your pets if you have any.
  • Place a can opener in your storage.

Plant yourself a garden. 

So you always have fresh, nutritious food to supplement your emergency stock. In an economic crisis, the cost of living may rise sharply. Having a garden can save you money on groceries. You can also live as self-sufficient when there are food shortages due to the financial collapse.

  • If you’re short on space, you can create a raised bed.
  • If the soil in your garden is poor, you can purchase topsoil or topsoil. Add peat moss, composted manure, and plant fertilizer.
  • Choose vegetables and herbs that are easy to grow, such as beans and peas, carrots, greens like lettuce, collards, spinach, and cabbage, potatoes and sweet potatoes, squash, tomatoes, broccoli, berries, and melons.

Create an emergency kit. 

This is a compilation of household supplies you will need in an emergency. You won’t be able to buy these items during an economic downturn, so it’s important to have them on hand. Store them in a container that is easy to carry in case of evacuation. 

  • Place car keys, blankets, matches, a multi-tool, maps, a flashlight, a battery or crank-operated radio, spare batteries, more matches, and a cell phone and charger in this box.
  • Have disinfectant-ready.
  • Photocopy important documents, such as a certificate of occupancy, the deed of ownership of your home, passports, birth certificates, and insurance papers.
  • Make a list of emergency numbers and numbers for your relatives.
  • Place baby items in the box, such as baby food, diapers, and bottles.
  • Also think about things for your pet like food, collars, leashes and food bowls.

Think of a first aid kit and medication. 

You can buy a set or put it together yourself. Make sure that all necessary utensils are available. Put personal items inside, like medicines for you and your relatives. Check the set regularly so that nothing is used up. Also check expiration dates and replace expired medication.

  • Place a first aid guide in the first aid kit.
  • Place dressings and bandages inside, such as band-aids of various sizes, sterile pads and gauze, adhesive plasters, elastic bandages, and sterile cotton balls.
  • Also include accessories such as latex and non-latex gloves, ice packs, a thermometer, clips for splints and bandages, tweezers, scissors, and hand sanitizer.
  • Medication for cuts and injuries, such as an antiseptic solution such as hydroperoxide, an antibiotic ointment, calamine solution for stings or poison ivy, hydrocortisone cream for itching, and an eyewash solution are also a good idea.
  • Put contact lens solution in as needed.
  • Also consider medications such as pain relievers and fever relievers such as aspirin, acetaminophen or ibuprofen, antihistamines for allergy sufferers, decongestants for colds, anti-nausea medications, anti-diarrheal medications, antacids and laxatives.

Preserve food

Preserve meat and fish. 

In an economic collapse, food could become dangerously scarce. If you want to store meat and fish early, you need to know how. If you preserve it, it stays fresh and edible for much longer. In addition, it can be stored at room temperature. This is useful in the event of a power failure.

Pickle meat.

You use salt to kill microbes that are causing the meat to go bad. For every 45 kilograms of meat, you need 3.6 kilograms of salt, 60 ml of nitric acid, and 1.4 kilograms of sugar. Apply the mixture directly to the meat. For bacon, leave it on for seven days for every inch of thickness. For ham, leave the mixture on for a day and a half per pound. After curing, you can rinse off the salt under running water and let the meat dry.

  • If the outside temperature rises above 4.5°C, you need to let the meat sit in the fridge or cold room.
  • If it freezes outside, you can let the meat sit for another day.

Smoke meat.

When you smoke with wood, not only does the meat taste better, it also protects it from pests and spoilage. When you smoke with cold smoke, you smoke the meat without cooking it. Place the meat in the smoker, turn it on, and let it smoke for 10-20 hours. You can buy a smoker or build your own.

  • Use aromatic wood to make your meat taste better, like hickory, mesquite, apple, cherry, pear, or cranberry-apple.
  • Do not use wood from conifers, royals, nettles, maples, and holly.

Dehydrate meat. 

You need a dehydrator for that. If you don’t have one, you can also use the oven and dehydrate the meat on a low heat for a few hours. Use an inexpensive cut of meat, like the brisket. Remove greasy parts. Cut small strips against the grain. Season the meat with salt and pepper and marinate in diluted barbecue sauce overnight, if desired. Place the pieces on a wire rack and place in the oven at 75°C for 2-6 hours.

  • Line the oven with foil to make it easier to clean.
  • Hold the oven door open with a wooden spoon to allow air to circulate.
  • Freeze the meat before you cut it to make it easier to cut.

Preserve fruits and vegetables.

You heat fruit in jars to remove the air and prevent spoilage. Choose one of two methods: water bath or pressure. The right method depends on the form and type of fruit you want to preserve. The water bath is ideal for jam, jelly and acidic foods such as tomatoes, berries or cucumbers in vinegar. For staples like meat, beans, and other vegetables, it’s better to work with pressure. For your own safety, always stick to proven recipes

Preserve with the help of a water bath. 

Find a deep pot with a lid, support that fits inside the pot, jars, lids, ties, and a jar server. Make sure that the jars and lids do not have any dents or cracks, because then the preservation will not work and the preserves will spoil. Heat the glasses in a water bath or in the dishwasher. Prepare your recipe and fill the hot glasses with food. Place the lids on the jars and submerge them in the boiling water. Make sure there is 1.5 to 3 centimeters of water above the glass. Leave the jars in the water bath for the length of time your recipe calls for. Take them out with a glass lifter and let them cool for 12 to 24 hours.

  • The lids should neither curve up nor down when you press them down. If they bend or come off easily, then the jar wasn’t sealed properly.

Preserve with pressure.

You need a pressure cooker. As with the water bath, you need to check the jars for nicks and cracks and heat them in boiling water or the dishwasher. Prepare your food according to the recipe and fill the hot glasses with it. Place the jars in the pressure cooker and seal. Release the steam according to the manufacturer’s instructions. Apply the pressure specified in the recipe. Adapt the recipe to your altitude. In the end, remove the jars from the pot, let them sit for 12 to 24 hours, and check the seal.

Secure your home

Decide on a shelter.

A free-standing shelter is a separate structure that is immune to natural disasters and weapon or human attacks. An internal shelter is a space in your home that protects you from natural elements or other threats. During an economic collapse, power outages may occur and looters may threaten you. Protect yourself.

Create two power sources. 

One could be solar energy. Mount solar cells on your roof and lay the system discreetly in the ground. Alternatively, there is a generator in the basement. This will help you in the event of a complete power outage. Hide your power source in the ground to protect it.

How big should your shelter be?

 The size depends on how many people need to be protected and how much food you are storing. An adult needs 10 cups of water and 1,200 calories a day. In addition, every adult needs ten cubic meters of natural atmosphere to have enough air to breathe. You need a ventilation system that lets in fresh air and filters it. If you plan to stay in the shelter long-term, you can invest now and make it big so there’s enough space for everyone. If it’s just going to be a short-term living space, it doesn’t have to be that comfortable.

Keep your shelter location secret. 

Protect yourself from others who were unprepared and want to take what you have. Don’t let your neighbors see how you set up the shelter. You can look for a secluded spot, but it can be harder to reach later. If you want to set up your safe room at home, you should keep the entrance secret. That way others don’t become suspicious.

Buy self-defense tools.

 Such tools are not usually deadly. You can use it to repel an attack by eliminating the attacker. You can use everyday objects, like a baseball bat or keys. However, they are not as effective as items made for self-defense.

  • You can spray pepper spray in the attacker’s face and have time to run away.
  • Stun Guns electrocute your attacker.
  • Tasers® deliver two small bursts of electricity at a distance of 4.5 meters.
  • Sonic alarms are small objects that emit a high-pitched sound to let others know you’re in trouble.

Set up an alarm system. 

Wireless alarm systems are easy and inexpensive to install and maintain. They notify you when a burglar breaks into your house. Hidden cameras allow you to monitor places inside and outside the home where a burglar might be. There are systems that you can install inside and outside the house that notify the police at the push of a button. Child monitoring systems show you when your child leaves or enters a certain area in the house.

Get a gun license and buy guns. 

With weapons, you can defend yourself or hunt. With a crossbow, you can easily aim and shoot. She’s also quiet and doesn’t startle people or animals around you. A ranged rifle allows you to hunt from a distance. A machete will help you kill and fend off a dangerous animal. A slingshot is good for chasing small animals. Get a gun license. Buy yourself a gun. Also show others how to shoot, reload, covert fire, and cover fire in case of emergencies. Be sure to get your gun license if you need it for the gun you want.

  • Store the right ammo and arrows for your weapons.

Get necessary tools. 

The right tool decides whether you survive whatever disaster or not. Not only do you want to protect your home, you also want to be able to build anything you need.

  • Buy bolt cutters so you can cut fences and wire.
  • Picks, shovels, axes, chainsaws, and hacksaws allow you to dig, gather wood, and cut.
  • Ropes and cords are important to build simple but also complex survival systems.
  • Tarpaulins are important for ground cover and weather protection.
  • You need nails and plywood to build and repair.
  • Large garbage bags are suitable for collecting garbage.
  • Gasoline is used as fuel or as an ignition aid.
  • You can cook with a gas stove.
  • You can catch fish with a fishing rod.

Prepare your family

Make the situation clear to everyone.

All must help you in your preparations for an economic collapse. Provide information about what is happening and tell them what to do. Everyone needs to take the situation seriously. Otherwise, people are mentally unprepared for the economic collapse.

Make sure that everyone is prepared for themselves. 

Inform each relative that you have prepared: financially, with necessary items, food, and shelter. Tell them to do the same. Make sure everyone has a bag of essentials that they can pack easily if they need to leave the house without warning. The bag should contain everything you need to survive 72 hours to a week.

Teach your relatives how to survive. 

Your closest relatives should know how to safely use weapons, practice first aid, hunt or plant food, and maintain the shelter. If they can’t already, take the time to show them. You never know when you need to be able to rely on them.

Work with other relatives or a group. 

Include not only your closest relatives, but also other relatives, neighbors, or a community group in your preparations. Make sure these people are reliable and working for the best of the group. You’ll be safer and work more efficiently if you can make the group larger.

Foreseeing a financial crisis

Watch the financial markets.

Quiet markets tend to get better. However, if the market becomes unsettled, meaning prices rise and fall significantly, then a recession could be imminent. It means nothing if the market is having a bad day. However, big ups and downs in the markets are a red flag that points to a recession.

Look at the global capital market returns over the last ten years. 

Global bonds are bonds issued by governments in several countries at the same time or in the form of large multinational bonds. If yields on such global bonds have fallen over the past ten years, this is an indicator that investors are withdrawing their money and preferring to invest in safer forms of investment. This happened before the 2008 financial crisis. A sharp drop in global 10-year bond yields means investors think a financial crisis is imminent.

Watch out for oil prices. 

The fluctuation in oil prices has a macroeconomic impact. When oil prices rise, so does gross domestic product. This is the quantitative representation of a nation’s activity. When it increases, the value of goods and services also increases. When oil prices are high, it bodes well for the global economy. The reverse is also true. When oil prices fall, so does gross domestic product and the financial markets suffer.

How are inflation and economic growth related? 

Economic growth leads to inflation. When demand increases, prices rise and unemployment falls. When unemployment falls, wages rise. When wages rise, people spend more, which leads to price inflation. When economic activity slows, so does inflation. Therefore, when the prices of goods and services fall, it is a signal of a recession.

Keep an eye on commodity prices. 

These include, for example, gold, wood, beef, or natural gas. Changes in prices can affect the EU economy and the value of the euro. Higher commodity prices mean higher inflation. This in turn correlates with economic growth. When commodity prices fall, inflation slows, which is a sign of a recession.

About The Author