Prepare for Difficult Years

The question is how fast they will come.

We could see a slow, but relentless, failure of our financial system and our political system.That is certainly happening right now, and there doesn’t appear to be anything that will stem this relentless drift into the abyss.

We could experience a massive shock that unleashes a series of knock-on effects that change society overnight. We have never been as interdependent as we are now, and that has left us astonishingly vulnerable. Iran could close the Strait of Hormuz and cause the price of oil to shoot through the roof. Unicredit in Italy could fail and take the rest of Europe and the US with it. Japan and China could choose to sit out the next bond offering by the US, causing the Federal government and the economy to come to a crashing halt.

The one thing that has disappeared is the possibility that normalcy will return – or that the situation will stay the same. That isn’t going to happen, and you should prepare for that. Now.

  • Have cash, gold and silver. When the system crashes, or just ‘resets’, you’ll be glad that you had some.
  • Have no variable rate debt. Interest rates may begin to take off this year. If your debt is subject to changes in interest rates, you will be severely hurt.
  • Get your head on strait. Love God. Love your neighbor. Read your bible. Be mentally and spiritually ready for anything that might happen.
  • Have a plan.

Michael at the Economic Collapse blog, has written a great article about this here. He thinks that complete disaster will take time. I’m not so sure, but I hope that he’s right.

How should people prepare for the difficult years that are coming?  I get asked about that a lot.  Once people really examine the facts, it is not too hard to convince them that an economic collapse is coming.  But once they accept that reality, most of them want to know what they can do to prepare themselves and their families for the hard times that are ahead.  Well, the truth is that it does not have to be complicated.  Many of the things discussed throughout this article are things that most of us should be doing anyway.  Now is not the time to be splurging on luxuries or expensive vacations.  Now is not the time to be going into large amounts of debt.  Instead, we all need to get back to the basics and we all need to do what we can to become more independent of the system.  Just remember what happened back in 2008.  Millions of Americans lost their jobs and millions of Americans lost their homes.  Now experts all over the globe are warning that another great financial crisis that could be just as bad as 2008 (or even worse) is coming.  Those that don’t take the time to prepare this time are not going to have any excuse.

But there is also a lot of sensationalism out there.  There are some people out there that claim that the economy is going to collapse all at once and that we are going to go from where we are now to some type of a post-apocalyptic “Mad Max” society almost overnight.

Well, that is just not going to happen.  We are not going to wake up next week in a world where we are all fighting each other with sharp pointed sticks.

Just like anything else, an economic collapse takes time.  I like to describe what is happening using an analogy from the beach.  When you build a mighty sand castle, it is not totally destroyed by the first wave that comes along, right?

Well, it is the same thing with the U.S. economy.  It was the greatest economic machine that the world has ever seen, and it is most definitely in decline.  But there are stages to that decline.

The “wave” that came along in 2008 did a huge amount of damage.  Our economy has not recovered from that.

Now another wave is coming.  But that will not be the end.  There will be other waves after that.

Eventually, this thing is coming all the way down.  Someday America will be such a horror show that it will be hard to believe that it is the same place that many of us grew up in.

Read the rest of Michael’s article here.

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