EFAM | Escape From America Magazine

Insulate Yourself from the Coming Economic Collapse

protect yourself from what many see as inevitable

Most Americans are still operating under the delusion that this “recession” will end and that the “good times” will return soon, but a growing minority of Americans are starting to realize that things are fundamentally changing and that they better start preparing for what is ahead. These “preppers” come from all over the political spectrum and from every age group. More than at any other time in modern history, the American people lack faith in the U.S. economic system. In dozens of previous columns, I have detailed the horrific economic problems that we are now facing in excruciating detail. Many readers have started to complain that all I do is “scare” people and that I don’t provide any practical solutions. Well, not everyone can move to Montana and start a llama farm, but hopefully this article will give people some practical steps that they can take to insulate themselves (at least to an extent) from the coming economic collapse.


But before I get into what people need to do, let’s take a minute to understand just how bad things are getting out there. The economic numbers in the headlines go up and down and it can all be very confusing to most Americans.

However, there are two long-term trends that are very clear and that anyone can understand….

#1) The United States is getting poorer and is bleeding jobs every single month.

#2) The United States is getting into more debt every single month.

When you mention the trade deficit, most Americans roll their eyes and stop listening. But that is a huge mistake, because the trade deficit is absolutely central to our problems.

Every single month, Americans buy far, far more from the rest of the world than they buy from us. Every single month tens of billions of dollars more goes out of the country than comes into it.

That means that every single month the United States is getting poorer.

The excess goods and services that we buy from the rest of the world get “consumed” and the rest of the world ends up with more money than when they started.

Each year, hundreds of billions of dollars leave the United States and don’t return. The transfer of wealth that this represents is astounding.

But not only are we bleeding wealth, we are also bleeding jobs every single month.

The millions of jobs that the U.S. economy is losing to China, India and dozens of third world nations are not going to come back. Middle class Americans have been placed in direct competition for jobs with workers on the other side of the world who are more than happy to work for little more than slave labor wages. Until this changes the U.S. economy is going to continue to hemorrhage jobs.

The U.S. government has helped to mask much of this economic bleeding by unprecedented amounts of government spending and debt, but now the U.S. national debt exceeds 13 trillion dollars and is getting worse every single month. Not only that, but state and local governments all over America are getting into ridiculous amounts of debt.

So, what we have got is a country that gets poorer every single month and loses jobs to other countries every single month and that has accumulated the biggest mountain of debt in the history of the world which also gets worse every single month.

Needless to say, this cannot last indefinitely. Eventually the whole thing is just going to collapse like a house of cards.

So what can we each individually do to somewhat insulate ourselves from the economic problems that are coming?….

1 – Get Out Of Debt: The old saying, “the borrower is the servant of the lender”, is so incredibly true. The key to insulating yourself from an economic meltdown is to become as independent as possible, and as long as you are in debt, you simply are not independent. You don’t want a horde of creditors chasing after you when things really start to get bad out there.

2 – Find New Sources Of Income: In 2010, there simply is not such a thing as job security. If you are dependent on a job (“just over broke”) for 100% of your income, you are in a very bad position. There are thousands of different ways to make extra money. What you don’t want to do is to have all of your eggs in one basket. One day when the economy melts down and you are out of a job are you going to be destitute or are you going to be okay?

3 – Reduce Your Expenses: Many Americans have left the rat race and have found ways to live on half or even on a quarter of what they were making previously. It is possible – if you are willing to reduce your expenses. In the future times are going to be tougher, so learn to start living with less today.

4 – Learn To Grow Your Own Food: Today the vast majority of Americans are completely dependent on being able to run down to the supermarket or to the local Wal-Mart to buy food. But what happens when the U.S. dollar declines dramatically in value and it costs ten bucks to buy a loaf of bread? If you learn to grow your own food (even if is just a small garden) you will be insulating yourself against rising food prices.

5 – Make Sure You Have A Reliable Water Supply: Water shortages are popping up all over the globe. Water is quickly becoming one of the “hottest” commodities out there. Even in the United States, water shortages have been making headline news recently. As we move into the future, it will be imperative for you and your family to have a reliable source of water. Some Americans have learned to collect rainwater and many others are using advanced technology such as atmospheric water generators to provide water for their families. But whatever you do, make sure that you are not caught without a decent source of water in the years ahead.

6 – Buy Land: This is a tough one, because prices are still quite high. However, as we have written previously, home prices are going to be declining over the coming months, and eventually there are going to be some really great deals out there. The truth is that you don’t want to wait too long either, because once Helicopter Ben Bernanke’s inflationary policies totally tank the value of the U.S. dollar, the price of everything (including land) is going to go sky high. If you are able to buy land when prices are low, that is going to insulate you a great deal from the rising housing costs that will occur when the U.S dollar does totally go into the tank.

7 – Get Off The Grid: An increasing number of Americans are going “off the grid”. Essentially what that means is that they are attempting to operate independently of the utility companies. In particular, going “off the grid” will enable you to insulate yourself from the rapidly rising energy prices that we are going to see in the future. If you are able to produce energy for your own home, you won’t be freaking out like your neighbors are when electricity prices triple someday.

8 – Store Non-Perishable Supplies: Non-perishable supplies are one investment that is sure to go up in value. Not that you would resell them. You store up non-perishable supplies because you are going to need them someday. So why not stock up on the things that you are going to need now before they double or triple in price in the future? Your money is not ever going to stretch any farther than it does right now.

9 – Develop Stronger Relationships: Americans have become very insular creatures. We act like we don’t need anyone or anything. But the truth is that as the economy melts down we are going to need each other. It is those that are developing strong relationships with family and friends right now that will be able to depend on them when times get hard.

10 – Get Educated And Stay Flexible: When times are stable, it is not that important to be informed because things pretty much stay the same. However, when things are rapidly changing it is imperative to get educated and to stay informed so that you will know what to do. The times ahead are going to require us all to be very flexible, and it is those who are willing to adapt that will do the best when things get tough.

Reprinted with permission from the Economic Collapse Blog.

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10 Comments

  1. sammy entre September 2, 2010 at 7:05 pm

    Most of the advice/comments come from the Chicken Little Syndrome. Life
    is as it is because corporate America likes it that way and when enough
    newbies in business get their focus, the old CEOs will lose their jobs,
    tens of millions of new companies will be born in America, out-sourcing
    will become a dinosaur like IBM electric typewriters.

    Water is plentiful world-wide where people are near bodies of water. The
    fact the Socialist and Communist national leader would rather their people
    not have clean water or sufficient food speaks for itself; those people need
    to be gotten rid of. Clinton’s idea of keeping one’s enemies close to one’s vest
    with China is a huge error as the Arab nations’ wars. America must get out
    of Iraq and Afghanistan, transfer all that money to American small businesses
    and let the idiotic religious radicals fight among themselves.

    People need not buy land, if they have a purpose for land, they can
    settle on it for no cost……….and storing non-perishables is the Mormon
    way of fending off logic. Those 10 items are both old as the hills and
    some of them are flat out naive, so 60′s ish.

    • Ola,O September 7, 2010 at 4:59 am

      The advice is only for the wise to discern and plan ahead, all these issues raised are what I have known and tried,tested and found out to be real. In Nigeria for example I have many plots of land, grow my food dug my borehole and as a Small and Medium Enterprises Consultant I know what it means to have your own business because salary will not make anyone rich only business. Pls President Obama should know this secret of reducing the American debt profile,reducing jobs being outsourced abroad, reducing trade deficit etc

      To the witer good write up, more power to your elbow

    • Pamela January 18, 2011 at 9:35 pm

      Ok, Sammy, you can be a grasshopper or an ant. Apparently, you want to be a grasshopper AND a Sheeple at the same time. No problem. Just remember, you can’t eat smugness.

      Another fine product of the Dumbing Down of America.

  2. Bill Sanders September 6, 2010 at 4:24 pm

    Good article. I am 55, divorced and live alone in a condo in sunny Florida. I am not about to move to a cold place! I am concerned about the quality of the food and water available to me. I have taken steps to protect myself, but really have no land on which to grow a garden. Nor am i inclined to collect rainwater. Nor am I going to buy land or get off the grid. I am slowing down physically and it’s all I can do to sell used centrifuges to my clientele. I appreciate specialization. I do my thing to make money and let others do their thing. But I hear what you are saying. What if others stop doing their thing? Well, I think that educated Americans (and immigrants) are always looking for new ways to make money. And the best, most honorable way is to meet others needs. If the government would stop handing out massive amounts of money to people who are not working, many of those people would be forced to meet the needs of their neighbors – or perish. And that is as it should be.

  3. Tmok October 31, 2010 at 9:35 am

    The US economy is in a bad way, in part due to the fact that the US economy uses energy inefficienctly, namely with high personal consumption (especially of imported oil and gas). I refer specifically to “peak oil” and Olduvai Theory (Dr Richard Duncan). All politicians and economic analysts ought to have these enscribed upon their hearts. There may be plently of oil in the ground, but if it is too dispersed and costly to extract, then such reserves are of little use. In the USA, oil is obtained at high cost from the Gulf of Mexico. The Saudi Arabians have off-shore oil wells and have invested in nucelar reactors. It goes without saying that if there were plently of oil on land, nobody would go to the trouble of undertaking offshore drilling for oil and gas. As Olduvai Theory clearly shows, World population has risen approximately exponentially in synchronism with the leading part of the peak oil curve. We are now at the top of peak oil. What should now happen is that World population should shrink in synchronism with reduction in available oil and gas if energy per capita is to be maintained, i.e. human civilization kept stable. However, such synchronism is not likely to occur withhout civil war turmoil and great suffering. The USA has prepared; that is the purpose of the FEMA camps in the USA. Starvation will probably reduce population in other parts of the World.

    I have personally campaigned long and hard for the World to switch from an oil & gas economy, to a Thorium-based economy to try to avoid the aforementioned collapse. Amongst politicuans and so forth, there is little interest. Molten salt Thorium reactors were demonstarted at Oak Ridge USA in the 1950′s and worked well. They can produce energy cheaper than coal. There is enough Thorium in the World to supply the WOrld with present levels of energy obtained from oil & gas for 10000 to 100000 years. Yet the World embarks on pointless wars and squanders remaining resources on pointless private consumption rather than addressing this key energy issue. However, few share my positive vision of hope for a better future for mankind. As economist Lyndon LaRouche has correctly pointed out, we are now at the verge of the worst economic collapse in history becuase the physical economy has become detached from the monetary economy; many economists do not even undretsand the distinction which Lyndon LaRouche has so clearly elucidated.

    If Bed Banenake of the Federal Reserve generates more new money, there will be a hyperinflationary crash akin to the Weimar Republic in the year 1923; this is becuase the physical economy is contracting in synchronism with peak oil, whereas pumping in new money which is merely used to maintain general consumption merely dilutes the value of equisting money to cause hyperinflation. A successful result of the recent quantitative easing in the USA would have provided benefit had it improved the physical economy. However, by giving the quantitative easing to banks to improve their balance sheets in a monetary domain does nothing to improve the state of the real physical economy and therefore has merely had a generally inlfationary effect has felt by all struggling US citizens on modest budgets. This arises because President Obama is in the hands of Wall Street. Wall Street has a poor understanding of the real physical economy and livs in its own little bubble; this was precisely the problem in the 1930′s when Wall Street lost contact with non-urban USA. The US political system does not allow for the constructive and valuable suggestions that come from Lyndon LaRouche and similar enlightened people to be implemented, such that the US political scene is paralysed from taking the correct decision. In consequence, the US economic system will collapse, and will send an economic tsunami around the rest of the World.

    It is not too late to act. The following steps must be taken:
    (a) fixed exchange rates should be adopted between countries to stop the flow of “hot money” around the World which is so destructive and destabilizing;
    (b) Glass-Steagall must be enacted immediately to tie the monetary system the real physical economy again; this will destroy the useful and unproductive gambles such as hedge funds and derivatives products; such products are constructs of a financial services sector which comsumes great wealth but contributes very little to the real physical economy; personnel made redundant from Wall Street would be able to be redeployed to do real work to improve the real physical economy in the USA;
    (c) USA military effort must be curtailed drastically to save resources and the terminal economic drain on the US economy;
    (d) funding for molten salt Thorium reactors should be given as a very highest priority; solar energy schemes and wind turbine projects should be halted immediately as they stand no hope of generating sufficient quantities of energy cheaply enough to keep present society ongoing;
    (e) support to exploit US gas reserves for the benefit of the USA should be given a very high priority; and
    (f) Transport vehciles need to be made very much more energy efficient; unnecessary airtravel should be drastically curtailed.

    My suggestions above are reasonable and practical. Their effect would go much further to addressing the real issues than proposals by the author of the paper (Evans-Pritchard) which merely scratch at the surface of the economic crisis and yet proposes no concrete solutions. What we need in US Government is politicians of far higher calibre and integrity than what we have ssen in recent years. The quality of US politicians has hitherto been generally appallingly low in recent years.

    In a World of peak oil, Keynesian economics simply does not work. The fact that certain contemporary economists have been awarded Nobel prized on account of their Keynesian deliberations beggars belief and merely paints the Nobel prize in a rather dim light.

    Thank you for kindly reading my comment. I am not working for LaRouchePac but value the very sensible advice and analysis that this organisation is offereing in the present difficult circumstances.

  4. Shhh… January 9, 2011 at 3:43 am

    As usual good articles fall on deaf ears. And as for the 1st poster, what the heck are you on?

    • David February 9, 2011 at 11:00 pm

      Food has been increasing in price at 1% PER DAY in America. The poop is hitting the fan. Wait for the blowback. It should be interesting to watch (if you’re prepared).

  5. David Boudreau March 13, 2011 at 10:30 am

    Very good info!!!!! I’m sure you already know this, You need to add the Feds roll in all this, they have spent another 14 Trillion dollars giving most of it to the rich, true some went to buy US bonds but add this to our deficit now we have near 28 Trillion of debt thats twice our GDP. How can tha ever be paid back ?

    The big one is coming and I can’t get out (no money) Had it but spent it trying to save other family members, now were ALL stuck ! I’m too old and in poor health, thankfully the VA takes care of my health care and some expenses,( I’m 100% but still walking around for now) SSI takes care of the rest. I know I should get out of here before the bust, cause I know there will be a time when that might be very hard to do or even ILLEGAL ! . Actually you can’t leave the USA now without a passport ! I tried to go to Canada ….no can do without your government papers (how can I type that with a GERMAN accent) grin

    I hope you don’t mind me pasting your article around to my friends fore you have explained it butter than I.

    Thanks much !

  6. Frank January 7, 2012 at 2:19 am

    Wow!

    what a great informative article. The non perishable items are important. i put a link to a site that sells food that has a 25 year shelf life. Just add boiling water, great product i tried it myself.

    thanks

  7. olde reb September 29, 2012 at 12:29 pm

    Have you ever wondered how Ben Bernanke could conceal $4 BILLION profit from Congress and the people EVERY DAY??? It is from the auctions of Treasury securities. Essentially, it is theft from the American people. Profit of the Fed belongs to the government. That profit is undoubtedly used to fund the New World Order agenda promoted by the CFR and Wall Street.

    The auction accounts are handled EXCLUSIVELY by the FRBNY and have never been reported or audited. Read below for details or the footnoted article for a comprehensive mathematical analysis of the Fed Ponzi scheme.

    Ben is a lackey for Wall Street and his job is to keep the banks (owners of the Fed) from bankruptcy. Everything he has done confirms this.

    Maybe your senators or membership would be interested in the information, but congress-critters receive lavish campaign contributions from “financiers” and also insider information that contributes to their net worrth. Their inclination to investigate may be dampened.

    Read it and weep

    From the original source.
    Reb

    * * * * * * * * * * * * * * * *
    Open letter to my Senators

    RE: THE FEDERAL RESERVE HEIST
    or
    HOW BEN HIDES $4 BILLION FROM CONGRESS DAILY

    Dear Senator

    Mr. Ben Bernanke told the Senate Banking committee that the government must take action (deficit spending) to prevent an economic collapse. Did he tell Congress that every dollar of such spending would be profit for the Fed that would be hidden by the FRBNY in apparent violation of the law ??

    A popular concept is that the government will “borrow” from the Federal Reserve. This involves giving a Treasury security (bill, bond, or note) to the Fed as collateral and the Fed will credit an account of the government in the amount of the security. The government then spends the (book-entry) funds while the Fed (theoretically) holds the collateral; i.e. deficit spending. Voila !! Additional (fiat) money has been injected into the economy of the Nation which, as expressed by Mr. Bernacke, MAY stabilize the economy.

    Observe that the Fed holds the collateral. When the collateral matures, government must pay the Fed to redeem the security. The fiat money spent by government must be re-acquired and paid to the Fed. But the government has already spent the money and the bank account is zero.

    So the Fed can sell the collateral at the Treasury auctions (if it has not already been auctioned). If the funds went to the government, the Fed would essentially give up the security. Bankers are not known to generously give up money.

    Also, if the funds went to the government, they would be used to pay off the debt of the security that had been issued and that would negate the existence of the debt and further it eliminates any inflation from the currency in circulation being increased. Since this does not happen, the funds from deficit spending cannot go to the government.

    The Federal Reserve Bank of New York has the responsibility of handling all accounting and funds for Treasury auctions. The funds from deficit spending go into the FRBNY but they are not recorded as coming out. These items are not included in the ANNUAL REPORT TO CONGRESS nor are they disbursed in any government record

    Receipts from the 2010 Treasury auctions totaled $8.4 trillion. $7 trillion was used to roll-over preexisting securities (without increasing the national debt) and $1.4 trillion was received from deficit spending as detailed above. That $1.4 trillion ($4 billion every day–7/52) disappeared in the catacombs of the FRBNY.

    Profit of the Fed legally belongs to the government. Concealment of funds belonging to the government is identified as embezzlement and subject to one year incarceration per count. Ref. 18 USC section 641. Nonpayment of monies belonging to the government is a separate crime and subject to five years incarceration. Ref. 18 USC section 1001. Anyone knowing of such an offense who “relieves, comforts or assists the offender…to prevent his apprehension, trial or punishment, is an accessory after the fact.” Ref. 18 USC section 3.

    Should members of Congress reflect on their involvement ?

    Respectfully,
    John Doe
    oneconstituent@home.us

    Conclusion: The Fed is wanting more money to bail out the owners of the BOG and NY banks from their fraudulent derivative gambles and construct a fraudulent claim on the entire wealth of the nation while your constituents get ripped off and enslaved.

    [NOTE: This letter is excerpted from, and documented in, RIP OFF BY THE FEDERAL RESERVE, http://www.scribd.com/doc/48194264/rip-off-by-the-Federal-Reserve-revised ]

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