Economic Collapse

Many people are wondering if there is a total economic collapse in our near future, something equal to or greater than the great depression. Its no wonder with high unemployment and foreclosure rates, the devaluing of the US dollar, increase in commodities and the out of control national debt.

What is this leading too?

At this point, no one is really sure what to expect;
however, with the recent injection of $600 million into the US economy,
many are concerned this will result in hyperinflation. 1 Million Dollars

Investopedia noted that hyperinflation often occurs when there is a large increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked this could lead to a major financial disaster by causing prices to increase, as the currency loses its value.

One of the most famous examples of hyperinflation occurred in Germany between January 1922 and November 1923. By some estimates, the average price level increased by a factor of 20 billion, doubling every 28 hours. And recently, Zimbabwe in 2008 prices were doubling every 24.7 hours. On January 16, 2009, Zimbabwe issued a $100 trillion bill.

Like I said, nobody knows for sure but if we are heading toward hyper-inflation you will need to take extra measures now to survive.

How to Survive

First things first:

Make eliminating debt and increasing assets your first goal.
Get out of debt and stay out of debt (if necessary get debt counseling but reduce your debt as quickly as possible).
Consider selling any valuable items that you do not need and do so as soon as possible while you still have buyers.
Increase assets as you are able - concentrate on items that you and your family would need to survive; water, food, personal items, hunting gear and personal protection, alternative currency such as gold or silver.

Next step:

Assemble first aid and sewing kits.
Take as many equipping classes that you can; such as gardening & CPR.
Get to know your neighbors - if things do get really bad you might be dependent on each other for survival.
Become as self sufficient as you can.
Learn how to barter - useful items to barter with are basic necessities such as clothing, shoes, blankets, soap, duct tape, heavy plastic, & ammunitions and don't forget specialty items such as coffee, chocolate, tobacco & alcohol.

Worst Case Scenario

If we experience a total economic collapse people will become desperate making survival in densely populated areas more dangerous for you and your family -

Have a plan to relocate to a relative's house in a remote location, the remoter the location and the more acreage the better.

Prepare a crab bag or bug out bag ahead of time to take with you. You will want to bring all the necessary items you might need if you need to stay for an extended amount of time.

What You Should take

Gather all your important documents - birth certificates, passports, wedding license, social security cards, etc.
Any valuables, items with monetarily and sentimental value such as jewel and family photos.
Bring all emergency contact information along with your cell phone and charger.
Bring a survival kit with first-aid items, non-perishable food, extra water and small amount of cash.
Keep your vehicles full of gas at all times in case you need to make a quick get away.

Recent Events

Wal-Mart CEO Bill Simon expects inflation

U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday. For the full article - click here

Peter Schiff: China to Unleash US 'Inflation Nightmare'
Tuesday, 25 Jan 2011 08:07 AM By Dan Weil

Forget about official inflation figures, which show consumer prices rose only 1.5 percent last year, says Peter Schiff, president of Euro Pacific Capital.

“Inflation is here,” he tells Yahoo’s Tech Ticker.

“The first place you would expect to see it is in commodities, particularly agricultural commodities and precious metals. That’s exactly what we’ve seen.” To read the whole article click here.

Special Note

Homeless sleeping on the ground Remember the Golden Rule: Do to others what you would want them to do to you. Luke 6:31 (New Century Version).

PLEASE be kind and merciful to others - you never know who you might be helping or if one day you will find yourself sleeping on the ground and in need of someone else's help.

Resources

Drew, J. (2009). How to Survive a Sudden Economic Collapse! | eHow.com http://www.ehow.com/how_4546748_survive-sudden-economic-collapse.html#ixzz0r3Hh5z6T

Hyperinflation. Investopedia
http://www.investopedia.com/terms/h/hyperinflation.asp