Just finished talking to family over Skype, about the coming collapse and the need to be prepared. The three-hour long conversation made me even more aware how crazy (and, perhaps, pretentious) I must sound.
Some of the points I raised:
- The economy is not going to get better, as so many people expect; it is going to get much much worse.
- The reason it will get worse, is because the national debt exceeds $40k per every man, woman, and child. There is absolutely no way that we can honestly repay that debt, which leaves the government two options: (1) honest default — we tell our creditors “sorry, we can’t pay” or (2) we can inflate our way out of it, destroying the value of our currency, and the economy, in the process.
- Prepare yourself and your family. Buy food, ammo, batteries, razor blades, clothes and footwear. The prices are already going up, and this trend will only accelerate. Sugar, rice, coffee, other foodstuffs increased in price from 30% to 60% from last year. We are not seeing the full effects, because the Albertsons and the Safeways are “eating” some of the increases by operating on ever-thinner profit margins, but eventually they will have to pass them on to the consumers.
- Cut whatever expenses you can, and sell whatever you do not truly need. Use the money to buy the basics (see above), and if you have cash left over, invest it into something that will not lose value, like silver and gold.
- If you own a business, now is the time to reevaluate everything. Cut expenses to the bone, shed any activities that are only marginally profitable, do more with less. Yes, sometimes this means laying off employees. If you are barely keeping your head above the water now, you will surely drown when things take a turn for the worse.
- If you have a house, sell it even if you will just break even. Don’t wait until it’s completely worthless.
- Even if you think I’m nuts, at least consider the consequences of your actions (or inaction) under the two scenarios. If you prepare for the worst, and the economy improves, you’re not any worse off — you’ll just eat through your food reserves, and laugh at my silly predictions that didn’t come true. If, however, you do not prepare, and the economy collapses, you may find yourself unable to feed your kids.
If you haven’t already, Google “Peter Schiff was right” and watch some of his latest videos. Then, by God, do something about it.