SURVIVAL SKILLS

Collapse of America: Economic Collapse and How to Survive it

America economic collapse
David Dawson
Written by David Dawson

The collapse of America has been a topic of concern for a long time. It has been a bold warning from reports, analysis, talks and so on. Critics have emerged with means and ways of elaborating and explaining why America should be on alert of a possible depression. Those who are fighting so hard for each American to realize the painful truth are aiming at waking up the dreaming populace.

In fact, most critics urge the American people from assuming that the financial system is going to endure functioning properly indefinitely. Those on the lookout suggest that the populace should pay close attention to get a glimpse of the mystifying America.

The all-high time costs

According to Drudge Report of 2014, the price of meat, fish and chicken ascends to all-time high, which kneecaps as well as destroys your purchasing power as an American. Your ability to feed your family diminishes, and it is all the courteousness of the Federal Reserve, which is bound to get much worse. This is primarily because of the policies that are put in place on your behalf as an American.

People who were put to power by the president destroy the value of your currency, which most of you work very hard to put in your pocket on daily basis to provide for yourself things like housing, electricity and food on your plate.

Money

What happens with food prices is just the beginning, since it is about to get much worse. Reports from the CNS news back then stated that the price index for meats, poultry, fish and eggs increases enormously. From the archives, in January 1967 BLS tracked this measure and the index for eggs, fish, poultry and meats was 38.1.

However, as of January 2014 the measures was 234,572 and by May the same year it had hit a top of 252,832. The index for the aforementioned foods had risen by 7.7% over the year. According to the Bureau of Labor Statistics, the abovementioned foods had risen to all time high.

In May, consumer prices did rise. Back then consumer prices recorded their high-pitched increase in fifteen months as general and progressive increase in prices continued accelerating from bizarrely low levels. Gasoline on the rise too within the same time spans which had much to do with the unfolding crisis in Iraq.

Basically, a byproduct of an illegitimate war in the Middle East, which was engineered by the Bush administration and later continued by Obama. Gasoline was set to hit new highs; six years season highs leading to a tax on the economy and a tax on the consumer.

Food, housing, and water

According to X22 report, the American Economy is shaky. The increase in food as well as housing prices is challenging uprising. This is mainly so since even an era with a low general and progressive increase in prices, it is evident that low-earning Americans spend a lopsided share of their income on food as well as housing.

Newfangled data from the Labor Department demonstrate the magnitude of the inconsistency. The bottommost 10% of the American people by income offer 42% of their spending to housing and extra 17% to food; closely 60% of their total spending conferring to the Consumer Expenditure Survey.

Consumer Expenditure Survey

By contrast, the well-off 10% of Americans devote only 31% of their expenditure to accommodation and 11% to nourishment, which is closer to 40% of total spending. Those people who face hardships to make it through are receiving a specific amount of dollars that goes to housing and food and they remain with a little.

When something goes wrong or prices go up with food, they will notice it right away, because they do not have those extra dollars. The richest Americans do not care because they have a huge amount of throwaway income so they are spending and they do not feel a thing.

This is the big difference and people are out there saying that there is no inflation, nothing is going on well, and all they see are products getting smaller. They see prices going up and if they are not going up, the products are getting smaller. In reality the prices have gone up, you can see it with cereal, you can see it with ice cream, you can see it with crackers, and you can see it with napkins and a lot of different products.

A great number of these companies are shrinking everything and you have to remember that people are still being laid off from companies. They are looking at their bottom line saying that they are not receiving the profits they once had and that they have to let people go.

Companies are announcing lay-offs, but they are not announcing numbers. When the numbers come out more and more people will lose their jobs. This is continuing because stores are continually closing and letting off people. Manufacturing has not picked up the pace.

Baltic Dry Index hitting record low

Baltic Dry Index is declining once again with five hundred and eighty three points. That means the raw material is not needed to produce goods in the factory, since there is no one out there who is buying at this time. This is a huge problem because you the Americans are going into the spring time now, into April. The Baltic Dry Index got nowhere because it is bumped up a little bit, but it is really low when compared to the other years.

Look where Americans are right now and you are going to go through spring, summer retail disaster. You went through the good time that was the holidays and it was a burst. You see in Baltimore, another city where Americans do not have the money to pay their bills. Twenty five thousand customers are looking to have their water shut off because unpaid bills. This was seen in Detroit – this collapse scenario is starting to spread across America and it is going city to city.

When did you ever hear unemployment at five and half percent and you see already two cities where they are threatening to shut off water to thousands of people who cannot make their payments. Does this look like a recovery to you? No, it does not; it looks like Americans are heading into a depression.

America collapse is already seen in California with the drought with no water in the region. You see that they are cutting back for the people not for the establishments such as the water bottling industry.

However, they tell the everyday people to cut back. Corporations can continue pumping water out and receiving the water, seriously look what is going on here. Then again, companies will do whatever they conceivably can to help themselves. The populace does not matter, they can suffer, and they do not care. This is happening all over the place, especially with the banks. Try to think what they have done; they have written amendments to place into congress, they have not passed them probably because they do not benefit them.

Signs of economic collapse in 2016 in America

As much most figure heads on Wall Street contemplate that America is heading forward. The reality is that there is more than one indicator that advocates that the United States’ economy is going to be under intense pressure. Fund managers, analysts and commission-dependent brokers will tell you that the America economy is not just stable but rock solid.

Signs of collapse

According to critics, you would have been told the same story prior to the Great Recession along with the stock market crash. Regardless of the warning signs, you will still hear the same story defined by erroneous general disposition to expect the best in all things. According to studies, the following are the most probable signs of America collapse.

  1. Government stats conceal collapse. In accordance with the government stats, inflation was maintained at 0.6 percent in 2015 during the first seven months. Regrettably, the data the government bases its argument on neglects the most rudimentary items that every American uses, including energy costs and foods. On the other hand, non-governmental measures have a different say on inflation.
    According to Chapwood Index (which observers variations in the cost of products, such as Starbucks coffee, cellphone service and home repairs among others), have recorded a rise in cost of living in San Jose. From the technical definition of inflation, it seems collapse has begun in America.
  2. Wages falling for low-income Americans. When will America collapse? Is a question that most people in the U.S. have a hard time figuring out? Probably it’s when an average American can longer afford the increasing living standards. Consumer spending account for about 70% of the country’s GDP. According to BLS, unemployment and underemployment rate remains above ten percent.
    In addition, American labor has not experienced any development as far as their labor is concerned. Nelp.org states that wages of the American workers have deteriorated, especially when you factor in the general and progressive increase in prices. Research indicates that Americans are experiencing reduced economic security.
  3. Most people have little or no money in the U.S. Stats indicate that Americans have little money and some have none apart from the fact that they cannot spend a dollar extra. According to research, about 34% of the adult populace has no emergency funds. This simply means that most earning people cannot keep up with rising cost of living and have unexpected expenses.
    Half of Americans report that they have savings to last them for about three months while a bigger percentage of the populace is at a breaking point. From the experts’ point of view, working people need to save at least 15% of their income for emergency funding. However, only a few individuals have been able to follow such guidelines because of the current living standards in the country.
  4. Hike in interest rate could stultify America. For about three decades, The Federal Reserve fund rate has been decreasing. Fundamentally, every American with a credit card debt or mortgage is acquainted with the reduced interest rate. However, all that is about to change. It is expected that the Federal Reserve will increase rates in the near future.
    If such will be the case, then it will be the first one after almost a decade of free, cheap money. Simply speaking, any attempts to increase interest rates by the Federal Reserve will heavily affect people who already have financial problems, such as Americans with huge student loans.
  5. Companies rely on foreign sales. The country depends greatly on foreign sales as far as the U.S. companies are concerned. An anemic global economy will without a doubt put pressure on America exchanges. The fact that America is the world’s largest economy makes it even harder for any economy to boost America to prosperity when there is the global economy anemic.
    According to BIS findings, the global financial system is fixed firmly and stably to the American borrowing rates. An increase in interest rates could significantly and effectively surprise developing economies and at the same time immobilize the developed ones.

You can read more about such signs on usanews.com

When will America collapse?

The abovementioned facts and figures have elaborated the possibility of a collapse in the American economy. The oil industry is presently undergoing a collapse. Other industries that can literally feel the collapse are fast food and brick and mortar. It is certain that if you are in one of these industries, then you will feel the collapse right upon your head.

It is not certain when things will go dark in the U.S. However, a small indication into this inexplicable world will reveal to you how certain America’s collapse may occur. At the Davos Economic Forum in January, the IMF delivered a calamitous warning concerning American’s financial system. The most surprising events that emerged after the warning were the responses of the American people. Shadow banking is one aspect that was noted by the IMF.

Dollars floating away

According to IMF, shadow banking places the whole of America financial system at risk. The Fund’s deputy chief warned that there has been a $15 trillion non-financial lending. This is said to be without the control of the necessary authorities.  IMF insisted that the laws that were put in place after the 2008 economic crisis have basically amplified the risk of economic upheaval. It is claimed that the Wall Street banks have technically lifted their perilous goings-on off their books and directly into other establishments that are not under surveillance by overseers.

Research states that a great deal of money along with the risks of government-regulated banks move into the shadows. According to Federal Reserve Chairman, it was inevitable for activities to go beyond the boundaries because of intense supervision and lack of sufficient regulatory tools. The chairman of the Federal Reserve last July said in a statement that shadow banking is an enormous encounter to which she did not have a better answer for. The IMF warns against shadow banking and the Federal Reserve admits not being able to handle the issue.

What follows an economic collapse in America?

  • A run on the financial system. An economic collapse will most certainly be followed by a run on the financial system. Americans will panic, meaning that they will be unsettled not until they have gathered everything and anything they need to survive the collapse.
  • Anarchy in the streets. A run dry of the banks will be followed by anarchy in the streets. The moment everyone comprehends that ball the money has dried out, people are going to be chaotic and lose focus on life. Americans may sort to actions that are disturbing and unacceptable.
  • Dramatic food shortages. The American food manufacturing industry functionalities are dependent on the quick as well as multiple deliveries and fast settlement of invoices. A collapse in the economy will simply kill these businesses, and there will be no one to deliver the food.
  • Homelessness will increase. Economic collapse will force companies to lay-off people from their jobs. As a result, most Americans will not be able to maintain their homes and they will be evicted leading to homelessness. From the archives, the Great Depression of 1929 to 1941 forced displaced Americans to reside in cardboard boxes.
  • Martial Law will be professed. When collapse turns the country dark, the government will most certainly declare martial law. It will be impossible to travel, particularly in regions where unrest is at its peak. Apart from travel precincts, the country will also experience deferral of constitutional rights and mandatory curfews.

How to survive a possible collapse

You need to be prepared in order to survive a collapse in the American economy. You should not assume that everything is going to be fine. The following are the most effective ways of preparing for a possible collapse.

Get your money out of those banks

One of the major signs of economic fall is shadow banking. With that said, it is absolutely ill-advised to let your money continue taking residence in a bank that is progressively planning to rob you. Make sure that your money is not shared by the big cats cross the bank. You can achieve this by ensuring that there are no automatic deposits to your account. Make a habit of paying using cash. It is a good idea to open a number of bank accounts, both with the megabanks and the small financial institutions.

Get your money out of those banks

You can also make small withdrawals every now and then until you have physical possession of your finances. As much as this is one of the most drastic measures to take, be careful not to be under Federal investigators’ radar.

Make a list of what you need

You seriously need an outstanding preparation book. You need to consider all the survival gear you will need. An economic collapse is a disaster, which needs you to be fully prepared in order to survive. You need gear for your home security, ammo, guns, water and food.

Make a list of what you need

Get yourself some good company, such as two big German Shepherds. Do not forget; however, to pack enough food for your new companions. Your survival gear list should not leave out any essentials. You are also advised to make cash purchases.

Stop those bad spending habits

It is important to stop spending money unnecessarily. This means that you need to have a specific operating capital. This way, you will be in a better position of preparing your survival gear. You need to boost your cash flow by starting a home-based business that does not actually have startup or upfront costs.

Stop those bad spending habits

Your business may not generate a lot of money; however, you will be getting just enough to settle your expenses. The good news about this kind of business is that it will be a legal tax evasion approach.

You need your own food store

This is a must have survival gear and it needs to be immediately. The most recommended food store that you can come up with should cover at least two years. You need to have a place where you can grow your own food. In case you do not know how, there are plenty of information sources online that can help you.

In addition, you need to have your personal supplies in check, including medical supplies, feminine hygiene supplies, eating utensils, toiletries, toothpaste and so on.

In conclusion

There is no lack of speculation about the collapse of the United States of America. As discussed earlier in this publication, reports have emerged and they are still emerging on the state of the world’s largest economy. The Federal Reserve has been on the spotlight. Almost every report does not have to mention, but needs to insist on the performance of the Federal Reserve.

The IMF gave a serious warning about the financial system of the U.S. These warnings along with the statements of the Federal Reserve chairman’s about shadow banking are clear indications of economic collapse. Once you are through reading this publication, you will realize how untrue you have been to yourself.

ABOUT THE AUTHOR
David Dawson
David Dawson

David Dawson is a retired security specialist with over 20 years of experience. He worked for a secret manufacturing facilities and hospitals in Illinois. David's responsibility was to protect people in case of any disaster or cataclysm that might occur. Now he keeps on doing it through teaching others about how to prepare and survive flood, earthquake or even war.

  • Marco Doss

    Anytime is the right time to start saving cash. I have a saving plan in place. I keep the money in a safe place, but also accessible in case I need it in an emergency. I save a particular percentage of my income, and never touch it.

    • David Dawson

      When prepping for an unexpected economic collapse, do the following: start an emergency fund, have cash on hand, generate an additional income source, get out of debt, and store essential survival items.

  • David Lee

    One of those long-standing advice on how to survive an economic collapse is to invest in gold and silver because they retain a significant part of their value unlike cash. I also agree with this article that having your own food store is important. During an economic collapse, supplies will be scarce and inflation would be too high. But what was not mentioned in the article is the need to store weapons as well to protect your family and food store. To prepare for an economic collapse it would be ideal to grow your own food so you can stay away from the public which can turn lawless due to desperation and hunger.

  • David Dawson

    The aftermath of an economic collapse of the world superpower is unthinkable. You can only survive if you ‘fully’ prepare yourself.

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