What Happens If The Economy Collapses?

What Happens If The Economy Collapses?I was asked what would happen if the economy collapses, and the answer is not one that most people want to hear.  I say this because everything in America revolves around the almighty dollar.  We work hours for it, or we receive it for free from the government.  People beg in the streets for it, and we use it as entertainment in the casinos.  The truth is that there is not one single thing we, as a nation do, that is not associated with money.  Without the exchange of currency the greatest economy the world has ever known would come crashing down with a thud loud enough it will echo into the next century.  If you are wondering what will happen if the economy collapses I could easily write an article about how Washington D.C. would react, or what would happen during the death flush of the dollar, as it died and retreated from the world stage….but I will not.  What I want to do is write about what will happen to you, the reader of this article because what  would happen if the economy collapses would become very personal…very quickly.

The end of The United States Economy may very well start in California.  I say this because they are on a crash course of spending beyond their means and Washington will simply tell The Fed to print more money, and soon the flushing of America will begin.  For the sake of convenience this story will evolve quickly and it will start with you hearing the story in the background, on a radio that talks about how California will no longer be able to meet their obligations.  We will be told that the default of the California would be catastrophic to America, and the citizens will hear nothing but this on the daily news until the prevention of a failure is ingrained into the mindset of Americans.  Washington will come rushing in to bail them out and somewhere along the path towards our economies destruction there will be digital truckloads of money handed over to stabilize the situation in California.  The collapse of our economy will have begun…but the masses will merely shake their heads and head off to work like they have done for years not knowing that their entire existence on this planet is about to change.  California will only be the first of the bail outs for the states…but the process of America spiraling towards financial disaster will have begun.

The birds will chirp, the sun will still rise…but because America can’t control its urge to “print” money, the price for “stuff” will start to rise because of the all-encompassing word “inflation.”  The dollar will start to buy less and less at the gas pumps, soon to be followed by meat becoming so expensive it will become increasingly a challenge for a family to afford to have it on their menu.  Utility bills will creep up and the rise in cost of other basics will be met with yet an other round of news stories that are only static in the background of our day.  Without going into the reasoning behind inflation… the dollar will simply lose its purchasing power and the word “hyper-inflation” will join the daily newscasts, and yet Americans will still faithfully march off to work everyday.

Then it will happen.  You will hear of a day on the stock market that will have everyone talking about how it is just like a few years ago….or how much money they are losing.  The average American will yet again be glad that the sudden decline of the market does not affect their life…and yet again…they will march off diligently to work and their daily life.

As the days turn into weeks we will hear the news more and more about how the economy took a huge hit and whose fault it was and why…and yet the full impact of what is going on will still not have hit the average American who is still grumbling about how expensive everything is becoming because of inflation.  So…to quell the masses we will hear yet ANOTHER story on the news about how The Fed has decided to print yet more only…and this time the amount being “printed” will be staggering and unprecedented.  Life will still go on and prices will start to rise yet again.

Who knows how fast, or how slow it will happen…but the term “hyper-inflation” will now be part of our vocabulary so let’s explore what this really will mean to the average person just trying to keep food on the table for the family.  To understand what this term means let’s look at the basic definition;

In economics, hyperinflation occurs when a country experiences very high, accelerating, and perceptibly “unstoppable” rates of inflation. In such a condition, the general price level within an economy rapidly increases as the currency quickly loses real value.

Note the phrase “unstoppable” because that is what happens before the next and vital moment in the death knoll of our economy.  What will then happen is that the value of the dollar will plunge, which makes the cost of everyday items too expensive to purchase anything.  A loaf of bread could cost $50.00, or a can of corn could be so much money that to afford a single meal would rapidly become out of reach for the millions of unprepared Americans.  Hyper-inflation will set in and the economy of America will begin the death spiral towards a point that revenue for the government will cease, because nobody will be able to afford to buy anything.  Once the tax revenue ceases for the government…the total end of society, as we know it will have arrived.  The similarities of what is happening now is alarming when compared to history.  A perfect example is Prewar Germany in the early 1900′s, when the common citizen could use a wheel barrel to carry their cash to buy a loaf of bread.  When that crisis hits the American currency there will only be only two things a person will be able to do;


  1. Wait for relief and support from the government that caused the problem
  2. Live off the items that they stockpiled in preparation for the crisis

I know that many people think I am weird, or I am a conspiracy theorist…but I really do not care.  If I am wrong and nothing ever happens I will simply have a house full of the vital things needed to live my life.  Whether it be an economic crisis, or a world war, or a simple plague that alters the face of society….I will be ready and if I am wrong….who cares.  I just know that if something were to happen at this very moment I will be as ready as possible.

What I ask you to do is quietly walk around your home right now and take inventory of what you have and what you will need to survive if there was no chance of replenishment.  How long would you be able to meet the requirements for your loved ones for the basics of food, water and shelter?  How long would it have to be before you would be forced to go out into a society in turmoil, and stand in line for a meal?  How long could you sustain life for your “clan” if there were no such thing as currency, and what would you need to do to survive?

America, as a whole has never really dealt with a crisis from coast to coast simultaneously.  What I have seen by the government’s reaction to isolated events like Katrina and Sandy offer me little hope of a government that will be able to take care of my loved ones, so that is why I prepare.  What happens if the economy collapses is something you should at least question, and if you think it could never happen to you….and those you love…..then you are a fool.

One last question?

Are you a fool?


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