Bury your head in the sand to avoid the truth if you like, but the United States financial system is in the early stages of a complete meltdown. We realize that’s a fairly bold statement, and we’ll provide some stark details to bolster our assertion in a few moments. For now, we want to ask you a simple question:
“Have you come up with a plan for financial survival?”
That’s sort of a rhetorical question because we know that the vast majority of citizens have adopted the ostrich approach of pretending like it’s not happening if you can’t see it. The unfortunate truth is that it is happening. Poor economic decisions by our fiscal policymakers are compounding and quickening to the point that a debilitating surge in inflation is the only logical outcome. What’s so bad about inflation? We’ve had that in good supply since the early 1970′s, right? Let’s be clear. There’s inflation and then there’s INFLATION and we have never seen the scope of what’s coming.
* For those interested in the societal fallout associated with a hyperinflationary cycle, Google the Weimar Republic in the pre-World War II Germany or Argentina in the 1980′s.
Hyperinflation simply refers to a very high rate of inflation, arbitrarily defined by economists as a monthly inflation rate of 50% or more. At this rate, an item costing $1 on January 1 of a given year will have increased in price to $130 by January 1 of the following year. Under these conditions, governments tend to fall and citizens turn to rioting in the streets to simply find enough food for the day.
If you think that hyperinflation could never come to the United States, are you willing to bet your life on it? It could literally become that serious of a situation. Consider that a grand total of three banks went under in 2007. By 2008 that number had increased to 25, and even more in the following years. Meanwhile, the government is injecting trillions of dollars into the economy in hopes of averting a full scale depression, risking meteoric inflation in the process. What will you do when the grocery shelves are empty and the dollar bills in your pocket virtually value-less?
At that point, it’s probably too late, but here is a list of things you should do before our economy ever gets to that melting down point.
Free Yourself From Financial Entanglements
In short, get rid of all the debt you can. We’re talking about debilitating, consumer debt, driven primarily by too much credit card use, that so many of us are burdened with. This kind of debt makes you a slave to banks and other lending institutions. We have to throw in a caveat here. There is a particular type of borrowing – long term, fixed rate mortgages tied to a piece of residential investment property – that actually profits in the face of inflation. Check out our affiliate company JasonHartman.com for more details. The general point is debt is bad!
Winnow monthly expenses down to a point that you could weather a national financial meltdown more easily. Evaluate where your money goes, then figure out how to weed out extraneous expenses.
Get Out of the Stock Market
Nice advice. Wish you would have taken it a year ago, right? Nevertheless, the stock market is a rigged game controlled by operators and speculators. It no longer even remotely resembles a place to grow your nest egg, and you’re playing with fire the longer you maintain such exposure of your assets.
Get Out of Retirement Plans
Since most retirement and 401k plans are based in the stock market, and the stock market is taking a beating – well – you do the math.
Stock Up on Essentials
When worse comes to worse, life becomes very simple. Food, water, shelter, protection. You might be convinced we’re raving alarmists to suggest you began laying in a stock of food, water, and firearms, but how can this be a bad thing? Even if nothing we predict ever comes to pass and you never need the stuff. So what? Now let’s assume that we’re right on target, society falls apart, and you don’t have two pennies to rub together. Not only no job, retirement plan, or gasoline for the car. Add to that barren grocery shelves and street rioters looking to clear you out of everything you have.
Remember that wars are won, through planning, before the fighting ever starts. Now is the time to begin planning for the eventuality of a complete collapse of a trusted financial system.
The Holistic Survival Team
Flickr / Alan Stanton