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. 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

  2. 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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