While the mainstream media propagandists continue to push the lie of a robust recovering economy, the fact is, we are in some serious fiscal trouble. Economies around the world are crashing, countries are drowning in record amounts of debt, and governments continue to pile on new debt like there’s no tomorrow.
What is an Economic Collapse?
Economic collapse, in its simplest definition, means a sudden and severe drop in currency value, leading to a financial crisis. It usually happens when the country’s economic activities are mismanaged or when an unexpected event throws the country into chaos. Some examples of such events are terrorist attacks, natural disasters, political upheaval, severe social unrest, financial bubbles , a collapse in government, and pandemics.
A look at Prior Economic Disasters, Depressions and Market Collapses
Throughout the history of the world, there have been many instances where countries have experienced an economic collapse, leading to severe consequences such as hyperinflation, high unemployment rates, and poverty. In extreme cases, economic collapse can even lead to a societal breakdown, with people experiencing shortages, social unrest, and struggling to survive.
The earliest recorded economic collapse occurred in 176 BC when the Roman Republic experienced a severe financial crisis that eventually led to massive inflation and debasement of the currency. The government’s response to this crisis was to issue more coins with decreased silver content, resulting in worsening hyperinflation and a sharp decline in the purchasing power of its citizens. This eventually led to social unrest and political instability, eroding the strength of the Roman Empire over time.
Another significant economic collapse occurred during the Great Depression of the 1930s, triggered by the stock market crash of 1929. During this period, businesses failed, banks collapsed, and unemployment soared to unprecedented levels worldwide. The depression had far-reaching negative consequences, some of which ultimately led to World War II.
The most recent collapse occurred in 2008 when the subprime mortgage crisis shook the global financial markets. The crisis began with predatory lending practices by mortgage lenders, high-risk borrowing by homeowners, and the buying and selling of risky loans between financial institutions. When homeowners began to default on their mortgages, banks and insurance companies suffered huge losses, and trust in the financial system evaporated almost overnight. As a result, governments worldwide were forced to intervene to avoid a total collapse of the financial system.
As history shows, it’s not if but when! Therefore, preparing for an economic collapse is vital to your survival, especially in today’s world, where the global economy is interdependent. Any event, even those in other parts of the world, can have a ripple effect on other countries. This article will provide tips on how to prepare for economic collapse.
Are we heading towards an Economic Collapse?
At some point this debt train is going to come to a screeching halt; when that happens we are going to see panic and chaos like nothing we’ve ever seen before.
As we’ve been covering for some time now, a look at the numbers and data shows we are heading for a potential disaster. From a series of high profile banks going bust to record inflation combined with major supply chain shortages, our economy seems to be heading right off the cliff.
The world, especially the United States, is drowning in debt.
The United States, once the world’s shining example of fiscal security and responsibility, has become shackled by a record amount of debt. We are literally drowning in debt.
Over the next ten years, experts think that debt could balloon to over $50 trillion. While that might seem like an insurmountable amount of debt to recover from, the fact is, we have already surpassed that number many times over.
When factoring in unfunded liabilities like Social Security, Medicare, government pension plans and Obamacare, the true debt number is actually much higher. Estimates put the real number somewhere between $222 trillion to $250 trillion.
But it’s not just the government, people are borrowing at record levels as well.
- Household debt increased at the fastest pace in 15 years, partially due to huge increases in credit card usage and mortgage balances.
- Credit card balances rose more than 15% from 2021, the largest annual jump in more than 20 years.
- Total Consumer Debt is now over $2.36 Trillion, an increase of 7.3 per cent in Q3 2023 compared to last year.
The overall Economic numbers are downright Scary!
- Silicon Valley Bank Collapse causing fears of market contagion and Bank Runs
- Stock & crypto markets crash, U.S. debt to soar past $50 trillion within 10 years as Biden to Raise Taxes
- Commercial Real Estate Collapse Latest Warning Sign to Prepare for Major Economic Troubles
- Food Shortages: American Food Supply in Real Danger, expected to get worse in 2023
- US inflation surges as economy becomes top preparedness threat
- U.S. money supply, which measures safe assets households and businesses can use to make payments, has fallen abruptly since March and is negative on a yearly basis for the first time since 2006.
- Mortgage payments as a share of income have doubled from 13% to 26%, and the savings rate has plummeted to almost zero.
- Total household debt increased by 8.5% in 2022 and now stands at a record $16.9 trillion. That’s $2.75 trillion higher than it was pre-pandemic.
- Sales of commercial mortgage bonds have taken a nose dive, plummeting about 85% year-over-year as commercial real estate investors are bracing for what looks like a wave of defaults throughout the commercial real estate industry.
What can you expect during a major Economic Collapse?
- A Run on the Banks: One of the first things you will see is a run on the banks. People are going to be panicking, and they will be doing everything they can to get their hands on cash to buy extra supplies.
- Chaos in the Streets: Once the banks run dry, you will see people turn desperate. The moment they realize the money is gone is the moment you will see widespread chaos sweep throughout the country. Riots, looting, and widespread violence will break out, making self-defense one of your primary concerns.
- Martial Law: When things start to go bad, I believe you will see the government declare a state of emergency or Martial Law. When this happens you will see things like travel restrictions, mandatory curfews, and the suspension of Constitutional rights.
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