The wait for the next economic collapse is over. Major currencies all over the planet are in a “death spiral”, many global stock markets are crashing, and economic activity is beginning to decline at a stunning rate in quite a few nations. Over the past 16 years, the emerging market debt bubble has grown from 9 trillion dollars to 63 trillion dollars.
Yes, you read that correctly. Now that emerging market debt bubble is imploding, and as a result emerging market currencies all over the globe are in “complete meltdown”. In fact, at least 20 different currencies have fallen by double-digit percentages against the U.S. dollar so far in 2018, and nobody is quite sure what is going to happen next but many expert sounding the alarm about the upcoming global economic collapse. The financial crisis has engulfed countries across the globe — from economies in South America, to Turkey, South Africa and some of the bigger economies in Asia, such as India and China. A number of these countries are seeing their currency fall to record levels, high inflation and unemployment, and in some cases, escalating tensions with the United States. When I say that the world has been on the greatest debt binge in human history since the last economic collapse, I am not exaggerating one bit.
The emerging market debt bubble is now three times larger than it was in 2007, and it is seven times larger than it was in 2002. Since the stock market crash are not happening here in the United States yet, most Americans do not really seem to be concerned about this economic crisis at this point. But that is a mistake.
The economic collapse has started with the weaker nations, but ultimately what we are witnessing is an “unraveling” of the entire global financial system… I am entirely convinced that we have reached a major turning point. For several years it has seemed like things have been getting “better”, but it was largely an illusion. Our ridiculously high standard of living was financed by the greatest debt binge in the history of the world, and it was inevitable that a day of reckoning would arrive. Now that day of reckoning is knocking on the door, and our society is completely and utterly unprepared for what is going to happen next.
How will the next economic collapse look step by step? Where will it start? When will it start? What impact will it have, and how will the world look after the global economic crisis and the Next Great Recession?
Regarding how it will play out, Cezary Graf notes that Trump and Federal Reserve policy will lead to financial collapse around the world. The economic collapse has already started. The Turkish lira is plunging, the Argentinian central bank has increased interest rates to the cosmic level of 60%, and Iranian inflation is skyrocketing.
However, these are minor players. The crucial years will be 2019 and 2020 when the deadly cocktail will be served for India, Pakistan, China, Japan, and the European Union, among others. In 2020, the United States and the dollar will also be hit; however, the magnitude will be significantly limited, in contrast to what many are currently saying about the upcoming dollar collapse. In 2022, after the next global financial crisis, the United States will be in the best shape of all major countries. I am ready to take bets.
It is very naive to expect that after the 2000 dot-com bubble burst and 2008-2009 economic collapse, that the third one will again start in the US.
From a conservative point of view, the US currency and bond supply are perhaps still too high, and rates may still be too low, however, despite its peculiarity, the dollar and US debt are the most popular US exports.
During the next two years, when major emerging markets will be struck by various crises, we will have massive capital flows into the US. This will include the dollar itself, the US bond market, the US stock market, and US real estate.
Two major trends can be expected:
1 – A massive human migration crisis. Emerging market countries’ citizens will be displaced because of economic reasons. And yet again, the US under the Trump administration will manage it relatively well.
2 – A massive chunk of the capital pulled out of emerging markets will be channeled to the most robust cryptocurrencies. The devaluation of EM currencies, the dismantling of the SWIFT system, and the pursuit of new investment solutions by private, corporate, and public parties will be the main causes of this great money migration.
Cezary Graf states that the value of cryptocurrencies will rise substantially from mid-2018 levels, thus making potential returns from other capital allocations much less attractive. Ignoring this is the manifestation of a deep misunderstanding of where the world is now and where it is going.
This will be the first crisis with the crypto option on the table.
What is a ‘Cryptocurrency’
A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency and arguably its most endearing allure is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Cryptocurrency Benefits and Drawbacks
Cryptocurrencies make it easier to transfer funds between two parties in a transaction; these transfers are facilitated through the use of public and private keys for security purposes. These fund transfers are done with minimal processing fees, allowing users to avoid the steep fees charged by most banks and financial institutions for wire transfers.
How can you prepare for an economic collapse?
Let’s face it, we can’t fight an economic collapse, we can’t really run from it either. Even if it were to be isolated to one country, such as in Venezuela, our savings would be very little in any other country, effectively trapping us and turning us into financial crisis refugees. The only thing we can do is prepare for an economic collapse and be a little more frugal when the going gets tough.
So let’s take a look at the next steps you can take to prepare for an economic collapse.
1. Learn simple economics so you can identify early warning signs
The list I provided above on economic collapse red flags to look out for is not a complete list, there are an endless amount of warning signs that you will be able to see if you regularly view financial news on the stock market’s performance and the nation’s economy.
Basic understandings of economics will help you in not only noticing an early downturn, but will help you identify possible safe havens for your money and economic minefields that you should avoid.
2. Cash is king
When you have cash, it’s buying power that many might lose. When I mention cash, this also refers to money in the bank. Just make sure that whatever investments you have, you are able to quickly liquidate them should you need to and secure the cash. I would recommend not having investments in anything that takes longer than a week to withdraw. As you have seen in the past, an economic recession can set in in the blink of an eye and some resources may not be valid for liquidating due to early bankruptcy.
Savings and checkings accounts should always carry a certain amount of emergency money as these can be withdrawn quickly. This is much better than having all of your money in a term deposit account that provides restrictions on when you can withdraw your money.
Also try to have a set amount of cash on hand, especially if you are picking up warning signs of a recession. This amount of money will be able to act as an emergency stash until you can withdraw the money in your account and have your assets liquidated.
3. Start being more frugal with your monthly bills
When you have no money coming in, the worst thing to have is money coming out on expenses that you really don’t need. Start minimizing your bills by going through them each month with a highlighter and seeing where most of your money is going. Is there a way to limit that? Perhaps the power is a little higher than it should be and the air-conditioning or heater is being left on?
Practicing sustainable methods such as organic gardening, generating your own power and utilizing your own space is a great way to also lessen monthly expenses and become more self-reliant in case of an economic collapse where regular comforts might not be reachable in the same manner as we are used to. You can invest in solar panels or grow your own produce to supplement your food expenditures. This is also a growing trend as a lot of people are pushing towards self-sufficiency and off-the-grid methods.
Why should I can my own meat?
If you’ve ever tried to buy food in bulk but realized you don’t have nearly enough freezer space, you’ll find that canning your own meat can be great for storage. There’s no need for freezing or refrigeration. Canning can also be great for when you want to give away food as gifts during the holidays.
4. Water. If you’re dependent on your local municipality for water, what will you do if a lack of spare parts shuts down the water system for a week or two? If the situation is dire, you can get by on about one quart of water per day. However, ideally you should prepare to have at least one gallon per person per day for at least two weeks, preferably four. You should also purchase a heavy duty filter to purify additional water. Top-of-the-line water filters that will purify up to 13,000 gallons cost roughly $250.
5. Food. In the opening days and weeks of the crisis, the last place you’ll want to be is anywhere near a supermarket, fighting clueless hooligans or hoards of looters and panicked people. Some of the cheapest food available on a cost per calorie basis is white rice. And while canned food is preferable to dry, dehydrated, and freeze-dried vittles because it’s ready to eat and doesn’t require other valuable resources to prepare such as heat and water, it’s also much more expensive. That being said, while there may be occasional utility disruptions due to a lack of spare parts, I don’t expect catastrophic failures. You should have at least a six-month supply of food on hand.
A grand encyclopedia of country Carnivore’s Bible , weather wisdom, country remedies and herbal cures, cleaning solutions, pest purges, firewood essentials, adobe making and bricklaying, leather working, plant dyes, farm foods, natural teas and tonics, granola, bread making, beer brewing and winemaking, jams and jellies, canning and preserving, sausage making and meat smoking, drying foods, down-home toys, papermaking, candle crafting, homemade soaps and shampoos, butter and cheese making, fishing and hunting secrets, and much more. Carnivore’s Bible : Traditional Skills for Simple Living
Remember: Even if the food shortages fail to manifest themselves or are quickly extinguished, the food you store will come in handy if you find yourself unemployed and unable to afford, say, $30 for a loaf of bread.
6. Medications. If you need prescription medications, make sure you have enough to get you through until the supply chains are restored. Make sure you always have an extra bottle or two of aspirin, cold medicine and vitamins. You should also have a decent first-aid kit and, if at all possible, a supply of antibiotics on hand.
What is The Lost Book of Remedies? The Lost Book of Remedies PDF contains a series of medicinal and herbal recipes to make home made remedies from medicinal plants and herbs. Chromic diseases and maladies can be overcome by taking the remedies outlined in this book. The writer claims that his grandfather was taught herbalism and healing whilst in active service during world war two and that he has treated many soldiers with his home made cures.
How does it work?
The premise is that many modern day medicines work on the basis that they treat the symptoms and not the cause, but contained within The Lost Book of Remedies are a number of tinctures and tonics made from plants and leaves that will treat the cause of the illness, thus eradicating the disease altogether.
The book is a direct copy of the little notebook carried around by the author’s grandfather when treating his patients. However, the illustrations of the plants have been updated to photographs so that they are easier for you to identify.
7. Barter items. When a national currency fails and the normal supply chains breakdown, the local economy carries on and products become available via the black market. The only difference is that instead of using dollars, people will begin trading with others for needed goods and services. Proven options for bartering during times of economic distress include: whiskey and other alcohol, coffee, cigarettes, chocolate, salt, batteries, ammunition, and butane lighters.
8. Defense. Even now, when seconds count, the cops are only minutes away. And you can bet that if the economy collapses your local police will be hours away. That’s because they’re going to be overwhelmed trying to keep some semblance of order — especially if you live in a large metropolitan area. After Argentina’s economy collapsed at the turn of the century, crime skyrocketed. In fact, rapes increased by 165%, car thefts climbed 248%, robberies climbed 4159%, aggravated assaults rose 5597%, and burglaries increased by an incredible 512,100% (!). That is serious stuff, folks. So, more than ever, protecting your home, family, and yourself is going to be your responsibility. Learn how to use and safely handle a firearm. Then invest in at least one handgun and at least 500 rounds of ammunition, preferably more. My entire family, including my 16-year-old daughter, has taken multiple handgun classes and I consider those courses to be among the best investments I’ve ever made. If you aren’t comfortable with purchasing firearms, then make sure you have alternative defense options on hand such as pepper spray because the odds are good that you’re going to need it.
9. Generate an additional (collapse-proof) form of income
Our writer from Venezuela was an engineer, but started making cheese, learned to use a CNC crafting and cutting kit and became a freelance writer for various websites as a way to find alternative income when his country’s economy collapsed.
Many try starting an at-home business to ensure they have a bit of extra cash each month aside from their normal job, and as a fallback when times are tough and they have faced job loss. Of course, those skills would have to be ssential skills required in a collapse, which could be things such as sewing, gardening, building, repairs, selling your own foods, accounting and other things that households would regularly require.
Yes, if you haven’t started preparing you’ve got a lot of work to do.
Yes, making sure you’re properly prepared to weather the storm that will ensue from an economic collapse is a relatively expensive endeavor. But that money you’re spending is an investment in your future.