What Does an Economic Crisis Mean in America?
An economic depression is a serious, normally longer term drop in economic activity, and generally describes a depression lasting a minimum of two years (Investopedia, 2016). However, other sources disagree with the minimum duration in order for economic activity to be deemed a recession (or a depression). No matter how long, the actual economic activity during a depression is usually reflected in employment, GDP, income, production and even retail sales (Hall, 2003). This means it is normally visible in day-to-day life by every day citizens. More people have had trouble paying their bills, and most of America is living paycheck to paycheck right now. The real unemployment rate has been speculated to be as much as 40 percent or more, however, it is truly hard to measure the real unemployment rate.
Depressions normally happen extremely sharply and start so quick; and they normally recover very slowly. Depressions can cause massive defaults on debt. They can lead to deflation and the collapse of the dollar. Consumer spending usually noticeably declines and people begin wanting to save more money. The decline in spending leads to a decline in construction and also goods production and people begin losing their jobs. The number of foreclosures is also very high in proportion to the degree of economic downturn. It is common for Presidents and politicians to preach terms of relief and plans for economic reform during a depression or recession. Unfortunately they sometimes develop before (and other times during) a war. In the 1930s, during the great depression, the unfortunate economic decline spread throughout the world since many other countries were tied into the gold standard (History, 2015). Usually, the cost of nearly everything begins to increase in a depression, including: the cost of rent, the cost of electricity, and even the cost of food. Additionally it is normal for the value of currency to drop (those who have been hording the American dollar will find the dollar worth much less than silver or gold).
What Would Cause the Next Great Depression?
There are many legitimate culprits to the start of a recession or depression (great or small). In order to identify the potential causes of the future, we must study the causes of the past depressions and recessions in the United States. Bank failures are a very common cause, alongside a serious decline of confidence in currency (whatever the standard money currency may be, such as copper or paper dollars). Bubbles are created and expand in all types of markets and industries, and as these bubbles burst: the economy collapses (such as the business boom in 1785, the land speculation bubble of 1797, the decreased investment in the railroad industry in 1853 or the housing market collapse of 2008). Even a financial crisis in another country can lead to a depression in the United States. In fact, other countries often have several things to do with an economic crisis in the United States. Other causes of depressions and recessions include: trade restrictions, fluctuations in the price of commodities required by the American people (imports), as well as the products provided by American people to other countries (exports). And of course, notoriously, stock market crashes can send the economy into an instant depression.
Many people for years have speculated there being a significant tech bubble. Additionally, it could easily be suggested that there is a space bubble. In the 1930s, there was a stock bubble. There are always bubbles, the trick is to identify them ahead of time and avoid them like the plague. It is smart to understand however, that it is many times very hard to identify a negative trend, like a bubble, as it is developing…therefore the much smarter plan is to simply be prepared for any economic downturn and the collapse of the dollar.
Surviving the Aftermath of an Economic Depression
An economic depression is very gray scale, very black and white and extremely depressing. People cannot afford the things they used to be able to spend on, and the necessities become harder and harder to attain. The most intelligent way to survive an economic depression is to prepare to be as self-sufficient as you can. This means, having your own reliable food supply, clean water, and alternative currency. The currency will make it easier to trade for the commodities you require, much like our ancestors of the early country settlement would do to survive. People will not care as much for the American dollar, when a dollar buys them a lot less. Instead, people will want to ensure their family is fed, gas is put in the car, and that the necessary medicine is attainable.
The best way for surviving the next economic depression is to have a plan. The worst plan would be to run to Wal-Mart the second the crisis develops. Instead, you should already have the things you will initially need and a plan to provide yourself the things you will need in the near and distant future, even if this means trading for some of these things: you will need something to trade with. It is a good idea to learn how to stock and preserve an emergency seed bank, so you could grow your own emergency garden in the event of a crisis…at least your family will be fed.
Here are two really great seed banks we recommend on amazon:
It is also very wise to setup your own water purification system. It may be unlawful depending upon your area to collect rainwater…however, certain city ordinances may allow it, especially in the event of an emergency. You should always remember though, sometimes chem trails can leave certain pollutants in the clouds, which end up in the rainwater, so a proper purification system is required in order to ensure the collected water is clean and drinkable. Click here to learn how to create your own water purification and filtration systems.
Next up is the electricity, which is something you can preplan. Many people turn to gas generators to ensure electricity in a short term emergency; however, this is much less practical for long-term use in an economic downturn. Instead, it is wise to consider solar power. There are solar powered generators, and also more serious solar panels systems which can be used to provide electricity like normal. Electricity means heat, and speaking of heat: it can be hard to afford new clothing in an economic crisis…so pre-planning some winter weather clothing is a wise idea to ensure your family does not go cold in an unfortunate winter.
Alternative Currencies to Use in an Economic Crisis or Apocalypse Situation
Smart survivalists will prepare for a great depression or other economic crisis and collect more reliable currencies and commodities (since commodities make excellent currency in catastrophes or end times). It is a simple matter of determining the most valuable resources for an economic aftermath. The best currencies for the collapsed dollar are the resources most desired by other people.
Let’s go over a full list of valuable currencies during an economic depression or apocalypse:
Ammonium Nitrate (can be used to make gun powder)
Black Pepper Corn & Salt (can be used to make gun powder)
Sugar (can be used for food, cooking, and making gun powder)
Many investors are jumping into stockpiling silver and gold in order to remain independent from an economic collapse in the United States. Silver might be worth 4 to 50 times what it is worth today, in an apocalypse, therefore precious metals will be especially valuable. And additionally, skills and trades become invaluable commodities, especially necessary survival skills.
Recommended Barter Guide by Business Gurus Karen Hoffman and Shera Dalin
Hall, R., 2003. The NBER’s Recession Dating Procedure. National Bureau of Economic Research. Retrieved from: http://Nber.org
History, 2015. The Great Depression. The History Channel. Retrieved from: http://history.com
Investopedia, 2016. Depression. Terms and Definitions. Retrieved from: http://investopedia.com
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