You’re probably tired by now of people claiming the next major financial crisis is right around the corner.
But among them is Peter Schiff, the one who predicted with great accuracy the recession in 2008.
According to him, we are going to experience another Great Depression in the near future, just that this time is going to be much worse.
The good news is there are ways in which you can tackle this to a great extent, therefore not feeling completely overwhelmed by what’s to come.
“The bad news is, we are going to live through another Great Depression and it’s going to be very different. This will be in many ways, much much worse, than what people had to endure during the Great Depression…This is going to be a dollar crisis,” Peter Schiff warned.
And the Financial Times said the global monetary policy is lured by its own flawed bait, which is a kind of economic suicide.
To walk the current monetary path won’t give any beneficial returns and it’s becoming exponentially dangerous.
On the other hand, reforming the system would also mean great risks, so the possibility of another crisis erupting is at its highest and will continue to climb the ladder.
“When you are talking about the magnitude of the debt we have, that extra money [raising interest rates] is big. That’s going to be a big drain on the economy to the extent that we have to pay higher interest to international creditors…a lot of this phony GDP is coming from consumption, while the average American who is consuming is deeply in debt and they are going to be impacted dramatically in the increase in the cost of servicing that debt…given how much debt we have, and how much debt is going to be marketed the massive increase in supply will argue for interest rates that are higher,” Schiff explained.
Now, let us focus on how you can escape the clutches of an impending economic collapse.
- Repay as much debt as possible until the crisis hits
It may sound strange, but let’s assume the world won’t fall in chaos right away (and money become worthless), then with the inflation rate through the roof you won’t be able to pay for your belongings anymore.
If you are entitled to something and you cover the debt you own for that particular purchase, then nobody will come looking for you to take it away.
With the booming interest rates, credit card rates will soar and will force most Americans to choose between paying that debt or paying the bills or buying food and essentials.
To cover your existing credit card debt, you should first start by not putting anything on it any longer, and instead focus on returning what you owe.
Survivopedia explains how taking one debt at a time starting with the smaller ones is key to repaying debt effectively.
Once you’ve taken care of the smaller ones, it’s time to either use the extra money to cover the heftier payments or to stack some more essentials on the side.
Once everything is paid off, you will have plenty of additional income for purchasing what really matters during a crisis to assure your survival.
Consider things like gold, silver, food, ammo, and even Bitcoin.
We don’t know yet how the world will turn out once money have no value, so food and ammo are your safest bets of obtaining something you need.
And since a one-world currency that would overtake all fiat paper money was predicted since 1988, and Bitcoin is seen as a potent crisis currency, it might be good to stack some as well.
- Think beforehand and stack essential items and supplies that would remain valuable during a post-apocalyptic scenario
It’s widely known that storing food for when disaster strikes can partially assure the survival of you and your family.
However, you should also have ammo in mind, both as a form of ensuring a solid defence, but also as a potential form of currency in a world where money is worthless and all store shelves are empty.
Next on the list are rifles and pistol cartridges. Store this properly and they will have real value in a post-apocalyptic world.
First of all, a loaded gun will help you hunt for food or defend against a violent attack.
If you saw the chaos coming and have piled up ammo, then you will rest assured knowing that you can overcome some of the hurdles that will arise.
Even if you don’t own a few guns, someone else will, and that ammo you’ve stored could turn into a valuable means of exchange.
But don’t get any of the fancy stuff. Instead, aim for the most common of cartridges to increase the odds of someone having a gun that can spit the lead you’re offering.
When it comes to pistol cartridges, the most common are the 9mm, 38 Special and .45 ACP.
As for rifles cartridges, the ones you come across most often are the .22 Long Rifle, 7.62x39mm and 5.56x45mm.
Once you acknowledge the great potential of ammunition during a SHTF scenario, you will want to stack up.
To make this work in your favour, seek a safe and dry storage unit and keep your little “savings account” to yourself to not risk any unwanted robbery or assault.
Looking at it from perspective, rifle cartridges could tend to your food supplies for months if you come across the right people to trade with.
- Practice your DIY skills on essential recipes
It will be of utmost importance to have the know-how of preparing things like biodiesel or vegetable oil.
If you look at the recent crisis in Venezuela, among the first things to vanish off the shelves were corn and seeds, because this is exactly from what vegetable oil is extracted from.
The majority of privately owned, oil producing companies, were seized by the state, which led to an exponential decrease in civilian supplies, since the state is now using the resources to control the military or sell them on the black market.
Why is vegetable oil so important? Because once you have used it for cooking, it can easily be turned into fuel or to boost the overall heat generated by woodstoves.
Making biodiesel is also a great skill to have. This type of fuel will keep your vehicle or generator running.
And you can even convert vegetable oil into biofuel. Here’s how.
To wrap it all up, these are the three essential things that will mitigate the effects of a sudden economic collapse: little to no debt left, alternative stores of value that can serve as currencies once paper money have no use anymore, and the knowledge to produce things of real value during a shtf scenario.
With these in mind (and at hand) your chances of survival will likely increase.