Disaster Planning Interesting Stuff

The Stages of Economic Collapse (Guest Post)

By Chelsy Ranard

Photo Credit: Money Heap via Photopin (License)
Photo Credit: Money Heap via Photopin (License)

The stock markets are currently at record highs, inflation is manageable, and unemployment is down. For many this seems like our economy is doing great and has some steady momentum to keep moving upward. This may be the case, but this is also what our economy looked like just before the financial crisis in 2008 that led to the recession. This was the worst financial crisis since the Great Depression of the 1930’s.

What will happen if our financial situation in the U.S. plummets even further? Every day our national debt goes up by 2 billion dollars per day on average. As a country we are over 18 trillion dollars in debt. A major economic collapse doesn’t seem that far-fetched once it’s understood how little our dollar really means. What does this mean for the probability for economic collapse and what to do if it happens?

How will an economic collapse happen?

When/if the economic collapse happens, it will happen in a chain of events. The key events will consist of a major collapse in the stock markets and sudden deflation of assets followed by a dramatic inflation that will cause a crash of major currencies. The trigger that will cause the major collapse in the stock market is unknown, but it is a popular notion that the decline has already begun. This is difficult to predetermine. In the past, the stock markets, inflation, and unemployment rates were manageable. There weren’t any big red flags that said, “Caution: Economic Collapse Ahead,” to warn us against it. There wasn’t a discernible point in which anyone knew a big collapse would happen, so it makes sense to say we won’t see one this time, either.

Is an economic collapse in our near future?

We are at risk for an economic collapse at any moment. It’s incredibly difficult to measure exactly when a financial crisis will start, especially since the financial issues of the past haven’t been a steady decline but, rather, a sudden nosedive. Is history repeating itself? The financial market is an incredibly vast and involved industry so it’s difficult to decipher and decide if we are in danger of a collapse in the near future.

What can be done to prepare for economic collapse?

20 year gold price history in US Dollars per ounce
20 year gold price history in US Dollars per ounce

To be prepared for an economic collapse is to understand what will happen when a major crash happens. After the key events happen, a more direct chain will ignite. This chain will have a direct effect on lower and middle classes especially. This will cause increased unemployment, food shortages, homelessness, rioting, and monetary loss of assets due to decreased value in the dollar.

When this happens, it will help to have a secondary source of currency such as gold or silver. The prices of gold and silver will still be valuable, even more so, in the event of an economic collapse. The need for a stockpile of resources will be necessary such as non-perishable food items, medical supplies, protection, etc. as the demand for these items will plummet and, therefore, won’t be readily available on shelves anymore.  Picture the Great Depression and multiply the severity.

How can we recover?

Economic recovery isn’t something that will be up to each specific citizen. There will, hopefully, be a gradual increase in the stock market but it won’t take full effect on the economy for years. Although one can make comparisons to the Great Recession in 2009 or the Great Depression in 1929, the situational differences create an issue with predicting not only the circumstances and probability of another economic collapse, but also how that economic collapse will recover. We don’t know what type of collapse is coming, or when the big one is coming. And when it does, will we be able to recover at all?

chelsy-ranardAuthor Bio: Chelsy is a writer from Montana who is now living in Boise, Idaho. She graduated with her journalism degree from the University of Montana in 2012. She spent time working seasonally in Alaska over the past five years, enjoys spending time with her animals, and wishes she could wear Xtratuf boots every day. Follow her on Twitter!

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5 replies on “The Stages of Economic Collapse (Guest Post)”

Just last week the Fed raised bank-to-bank interest rates for the first time in almost a decade. But is it too little too late? The stock market’s reaction was less than stellar. A lot of people were expecting economic collapse in 2015…and every other year since 2008. The question is, how long can they keep kicking the can down the road? Yes, the bankers are in full control, but they wouldn’t be if the people educated themselves. Our only hope at this point seems to be education. We have to earn our way out of this mess. I just hope there’s still time…

The worst part is that the bankers and folks in charge know precisely what they’re doing and exactly what’s coming… it’s the vast majority of American’s who choose to keep their heads in the sand and ignore the now obvious fiscal cliff.

At this time of year there is so much to do on the homestead that my computer time is restricted to business. But I always take a minute to check in on you and this post was enough to provide extra inspiration to get out and do the next project. Sometimes the heat brings on thoughts of “this can wait”. This post is a simple but effective reminder that we need to “make hay while the sun shines”.

That’s it? That’s the whole article? I really don’t want to sound so critical, but what in the world is that supposed to be? No facts, no references. But lots of maybes, could be, possibly, kinda, sorta, and no one knows. I didn’t even see anything that related to the title. It’s obvious that the author did her best to write about a subject that she is totally unfamiliar with, and put it in a few short paragraphs. You can get a lot more info than this by simply doing an Internet search.

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