Financial Survival and Preparedness By Tom Marlowe
These days, everyone
is rightfully worried about a massive economic downturn precipitated by the
collapse of the US dollar. There is plenty of good evidence why everyone should
be worried about this, not the least of which is that the dollar is about to be
unseated as the world’s reserve currency.
That, plus rampant
government spending, raging inflation, and massive political and social unrest
has led to a seemingly perfect storm of conditions that will expose, in
shocking relief, the shortcomings of fiat currency. America may be exceptional, but our currency
is certainly not exempt from the market and economic forces and it is just
about time to pay the butcher’s bill. Accordingly,
every sane person and preppers in particular are scrambling to prepare for one
of the most complex and deteriorating crises in the form of a currency
collapse. You’ll need more than a
survival kit and a bug-out bag if you want to make it through. To help you in
that endeavor, we are bringing you a list of suggestions that you could own before the dollar collapses.
WHAT CAUSES THE US DOLLAR TO DECLINE AND COLLAPSE? There has been a veritable ocean of ink
spilled by pundits, experts, authorities, and common people over the years
concerning what “actually” causes the dollar to dip, decline, and finally
collapse. While it is true that the forces behind our modern economy are
incredibly complex, the causes for a dollar collapse tend to be fairly straightforward in nature. Remember, it
might be one or more of these factors together that genuinely precipitates the
dollar collapse! Don’t consider yourself and your investments safe just because
you cannot see one or more on the horizon.
War and Disaster Devastating natural occurrences like
earthquakes, hurricanes, and floods can wreak havoc on a currency’s worth as
they may impede commerce plus impair essential infrastructures. Mega disasters
can have a regional impact that has far-reaching consequences. War, as ever, is
a destabilizing force that can likewise drain unfathomable amounts of money and
tip economic balances.
Economic Slump/Recession When a recession strikes, investors may become
hesitant about the strength of a country’s economy, thus seeking more secure
investments. This can trigger an
immediate decrease in demand for that currency, consequently reducing its value.
This will in turn ripple out into other financial sectors, sometimes creating
conditions for another recession or depression and leading to the tanking of
the currency.
Inflation When inflation rises to an excessive degree,
the worth of a nation’s currency can suffer. This is because their money
holds less value as prices for commodities and services increase. Consequently,
the purchasing power of its citizens falls significantly and, in practice,
their currency has been devalued out
Social and Political Turmoil
When a nation
experiences political volatility, investors become hesitant to invest due to
uncertainty about the stability of the government. As a result, this can cause
the value of its currency to decrease. Similarly,
when blocs form in a populace that creates an environment of social unrest
and destabilizes free and plentiful trade, the value of its currency will also
suffer.
Survive and Thrive When the Dollar Implodes Of
course, it is impossible to predict exactly what will happen when the dollar or
any currency collapses, but it is certain that you must have a plan for
surviving the consequences. Having some or all of these assets listed here
on hand can give you options that others won’t have and put you ahead of the
curve in almost any situation.
Government Debt Ah, old faithful when it comes to currency
devaluation. Inflation of government debt can have a devastating impact on the
worth of a nation’s currency, as investors may worry about its capability to
reimburse what it owes. This could
result in adverse effects such as erosion in value and purchasing power. Considering
the US government is currently $30+ trillion in debt and counting, showing no
signs of slowing, well… you can draw your own conclusions.
12 Things to Own When the Dollar Collapses
1. Practical Goods Preparing for the collapse of the dollar isn’t
all about investing in alternate currencies, diversifying your stock and
investment portfolios, and engaging in other nerdy behavior. Any currency collapse
will entail very real, very pressing problems concerning your survival
necessities. If a gallon of milk suddenly costs $100, or you flat out cannot
afford to pay for gas or electricity, you’re going to have major problems that
will only send you further spiraling down the drain. Consider obtaining the
following items and laying them away in bulk, if applicable, well before a
currency crisis strikes.
2. Sustainment Technologies
Most preppers and
homesteaders already intrinsically understand the benefits of technologies that
allow you to remain self-sufficient and truly off grid if required. Solar and
wind power generation, whole house battery systems, wells, natural gas, and
more all have a part to play in maintaining your standard of living and your
safety when the economy starts to fall apart.
3. Food Stocks, bonds, gold, silver, and heaps of cold
hard cash are all great, but you can’t eat them. A currency collapse is usually
accompanied by a tremendous spike in the cost of goods, meaning you won’t be
able to afford basic staples in some cases. You don’t need a large food supply
on hand for you and your loved ones just in case of a major natural or man-made
disaster. That same food supply might become your primary source of groceries
until the economy starts to rally and stabilize.
4. Water Just like food, water is a precious resource
and even more precious than food when it comes to a basic survival necessity. What
would you do if your town is no longer able to keep the water running, or just
keep it clean and safe to drink? I don’t
think you’ll be able to run down to the grocery store and buy a suddenly
massively overpriced case of bottled water assuming you can find it at all. You want your own stockpile of potable water
on hand, along with plenty of supplies to filter and purify other water
sources, just in case.
5. Garden, Farm, or Cropland
You can see where this
is going. Having your own food on hand, ready to eat or easy to prepare, is one
thing. To be truly prepared you’ll also
want the ability to grow more of your own food, or else raise it. When times are tough and everyone has to
tighten their belt, whether they want to or not, the prepared turn to providing
the basics that they need. Even
something as humble as a backyard garden can greatly offset the economic
squeeze. If you have the land, and the
skills, to set up and run a proper farm or just grow crops on a much larger
scale, you’ll have even more food at your disposal and probably a profitable
business to boot, even if it is only on the local level.
6. Personal Luxury Items.
People will be going
without all sorts of luxuries after the dollar collapses, either from the loss
of production or simply because they cannot afford them. If you lay in a supply
of liquor, tobacco, cosmetics, and other comfort items you can become something
of a local retailer for people in need. As long as they have the coin, of
course.
7. Fuel Currency implosions have a way of greatly
disrupting the intricate workings of many industries that supply fuel to
society, and the resulting fuel shortages will further strain commerce creating
a “feedback loop” of sorts that makes things worse and worse. Having your own
sizeable supply of gasoline, diesel, propane, and other fuels needed will not
only keep your vehicles and tools operating but also provide you with a
precious commodity for bargaining when required.
8. Assets Assets, for the purposes of this discussion,
are things that are intrinsically valuable and will hold their value despite
the current circumstances so long as you have invested in them wisely. These
can serve to offset the drop in the dollar’s value or to potentially be
liquidated in order to get more cash on hand when you need it.
9. Land The value of land is obvious. There isn’t any
more of it being made, that is for sure!
In addition to making it a great asset to own in times of economic
uncertainty, land can also be used for the purpose of growing food and raising
livestock, as discussed above.
10. Cashflow Real Estate Any real estate that you own during a currency
collapse must be capable of providing cashflow or it likely is not going to be
an asset for much longer. Cashflow can come from renting it out, or possibly
even leasing it to a business. Just make
sure that you have solid tenants and lease agreements in place so there are no
surprise losses due to defaulting tenants, and consider carefully who your most
viable tenants will be in a given market.
Don’t forget you might even lease out vacant land to people who need a
place to park their RVs!
11. Foreign Currency For the more adventurous types, investing in
foreign currencies can be a great way to hedge against the dollar’s collapse. If you do your homework and select wisely,
you should be able to find some countries whose currencies are likely to not
only remain stable during a US dollar collapse, but also increase in value. Just make sure that you understand the risks
involved and have an exit strategy ready if things don’t go according to plan. Some currencies that have historically done
well when the dollar was tanking include the Euro, the Swiss Franc, and the
Japanese Yen.
12. Precious Metals Probably the quintessential asset during times
of economic woes, precious metals will surely be good to have when the dollar
tanks. Precious metals such as gold and
silver have been historically viewed as a safe haven asset during times of
currency collapses or other market volatility. Unlike stocks and bonds,
precious metals are not as affected by most market forces and can serve as a
strong hedge against inflation due to their limited availability and universal
value. Serving as both currency (if needed) and a store of value, precious
metals are also perceived as a way to protect one’s savings from potential
political risks, preserving the value of your investments well into the future
while remaining extremely liquid.
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