How to Survive a Collapsing Economy

A relevant article for a relevant time.If the economy of the country is about to collapse, you'll need to be able to identify when the economy is collapsing and your plan to survive it.

Identifying a Collapsing Economy

Before you can survive a collapsing economy, you must first identify the collapsing economy. It is not always obvious, but there are a few key signs you can look for.

1. Stock prices going down.

Over the years many people have found that the economy of the United States is not only very weak, but always on the very brink of disaster. One way of determining if the economy is going down is if your favorite stock prices are going down. For example, stock prices for retail stores go up a certain amount for each customer that enters the store each day. If you see the stock price of a retail store go down, then you can be sure that they are losing customers left and right because people are buying less. If people are buying less, that means they have less money, if people have less money then that means the retail stores have less money to buy stock, less stock means even fewer customers will go to a store; eventually the stores will be unable to buy any more stock and will be forced to go out of business. The same is true for every business, oil prices go up based on the amount of oil obtained each day, gold goes up based on the amount of gold dug up, etc. etc. etc; you get the idea. If you ever see a stock going down, then that means the business is going into a death spiral that it can not escape from, and it will take the economy with it.

2. People withdrawing large amounts of money from banks.

Despite claims to the contrary, no news service has ever suggested anybody should remove their money from a failing bank. Not only does it make no sense, the FDIC will insure your money up to $100,000. Ergo, anybody taking money out of an account with less than $100,000 is fearful that the bank will fail. Banks failing are a sure sign of an economic strategies collapse.

3. Items selling for less than what they were being sold for at an earlier time.

Not to long ago I was in an electronics store looking for a music player. As I perused the selection I took note of the price; $150 for one model, $100 for another. I decided that I did not have enough money and would need to wait. Well, 6 months later I came back and boy was I surprised! The $150 model had it's price cut to $100, a sure sign that nobody else had enough money to afford the high price. What really kicked my butt was that the $100 model was nowhere to be seen! I asked a worker what happened to it and he said the company had discontinued the music player. Right then it hit me, the company was leaking money like a sponge. Why did this occur? Because the economy was on the brink of destruction and everybody knew strategies it. Nobody wanted to buy the music players, so the companies only hope was to sell the expensive model cheaper to get a higher profit margin.

4. You see a commercial telling you to invest in gold through a certain company.

First things first, if you see a commercial telling you to invest in gold you should do it. Gold is considered an inelastic commodity, this means there is a limited amount of gold on the planet and the price will only go down during times of large discoveries of gold. Next up, all investment companies have their finger on the pulse of the economy, and if they are telling you to buy gold, they know something bad is about to go down. Of course, they won't tell you this, they just want to keep all the money to their selves. Luckily for you there is a law requiring them to release these commercials during a time of economic strategies upheaval. Listen to them, they know what they are talking about.

How to Survive a Collapsing Economy

How to Survive a Collapsing Economy
How to Survive a Collapsing Economy

Finally, we get to the meat and butter of this article, how to survive in an economy that is collapsing. Luckily for you, you do not need to wait for the economy to start collapsing to take action; if you follow the above guide you'll know when you need to act. If you follow this guide you will find that while your neighbors are starving you'll be sitting pretty on a pile of money.

1. Get all your money out of the bank.

This goes for everybody! Tell your friends, put out ads, and gets the media to start spreading the news. Once you get wind of a collapsing economy, you need to pull all of your money out of a bank as fast as possible; banks are the first thing to go and you will lose every penny if the bank fails. That brings up another fact, there is a myth that the FDIC will insure $100,000 of your money; this is false. Think about it, how can they insure $100,000 of every bodies money? They can't! The FDIC only has a fraction of the money they would need to pay off every single account in America. Do the smart thing and don't take chances, remove all of your money.

2. Put all your money into precious commodities.

Gold, oil, silver, and pig bellies. These are just a few things you should put all of your money into. Once the economy fails, money will be nothing but worthless paper. If you are able to invest in precious commodities you will be investing in very stable and and easy to predict investment. Over the years, all precious commodities have risen a very stable 1% per year; much higher than any bank account you can find. This also gives us quite a bit of insight on the future, since all precious commodities have risen in price of 1% per year, you'll know exactly how much of each you will have. Don't forget to cash out your commodities before the economy collapses, otherwise there will be no trucks to get your commodities to your house. Once the economy collapses, so will our entire transportation infrastructure.

3. Sell all stocks and bonds as quickly as possible.

When the economy is about to collapse you won't know the exact day it occurs, so if you have money in stocks and bonds you need to get rid of them as fast as possible. The only way to do this is to sell your stocks and bonds at a very low prices, most economists recommend at most 20% of the stocks value. You may think you're losing money, but really, you're saving money. Sure, you lose $500 today, but tommorow that stock could be worthless, and then you'll be sitting pretty.

4. Buy and horde as much food and other retail items as possible.

Once the economy collapses there will be no more stores, and your money won't be worth the paper it is printed on. This means you will have to buy everything you'll need before the economy collapses. Make sure you tell your neighbors to go out and buy as much as they can, you don't want them trying to break into your house and steal the last piece of bread on the block. Don't be picky when going through the store, just dump as much into your cart as possible. Even if you have to empty out every store in town, do it. While it may be expensive now, it will be a live saver in the future. 

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