Economic Collapse 101: Ten Ways to Prepare for the Unknown

Economic Collapse 101: Ten Ways to Prepare for the Unknown

By Len Penzo

Economic Collapse 101: Ten Ways to Prepare for the Unknown

By Len Penzo

Most folks are really good about making sure they have the proper amount of insurance for their home and automobiles. But when it comes to ensuring the survival of their family in rough economic times, well … not so much.

It’s no secret that recent volatility in the world financial system has more than a few people openly talking about the threat of an economic collapse — and I’ve been explaining for several years now why I believe an economic collapse is inevitable.

If history is any guide, the good news is that it won’t result in a complete breakdown of society. Argentina has suffered through multiple collapses of its own economy through the years and life goes on — but it remains less than idyllic there.

Nobody can say exactly how the collapse of the “almighty” US dollar will unfold, but you can bet that most people will be unprepared if and when it happens. If we’re lucky, it will happen one weekend after the-powers-that-be announce a bank holiday followed by a complete fully-controlled system reset that results in significantly lower standards of living for everyone.

If not, collapse will be much more chaotic …

The worst part of any such chaotic, unplanned, economic collapse occurs in the first few weeks after the initial event that precipitates the crisis. It could be an extremely volatile and scary time — especially in major metropolitan areas — as people caught unprepared end up roaming far and wide, searching for the most basic of necessities, and doing whatever they must to ensure their survival until a new currency is eventually established that helps repair the broken supply chains.

Until that occurs, however, most people will have to rely on the black market for almost everything, but life will go on, and goods and services will continue to be traded — just far less efficiently than before.

How long will it take for things to get back to a relative state of normalcy? That’s anybody’s guess, but I’ve been preparing under the following assumptions:

A collapse of the US dollar will not — repeat, WILL NOT — result in a Mad Max end-of-the-world scenario

Supermarket shelves will remain empty for six months

With that in mind, here’s how you should consider preparing for a collapse — in order of descending importance:

Water. If you’re dependent on your local municipality for water, what will you do if a lack of spare parts shuts down the water system for a week or two? If the situation is dire, you can get by on about one quart of water per day.

However, ideally you should prepare to have at least one gallon per person per day for at least two weeks, preferably four. You should also purchase a heavy duty filter to purify additional water. Top-of-the-line water filters that will purify up to 13,000 gallons cost roughly $250.

Food. In the opening days and weeks of the crisis, the last place you’ll want to be is anywhere near a supermarket, fighting clueless hooligans or hoards of looters and panicked people. Some of the cheapest food available on a cost per calorie basis is white rice.

And while canned food is preferable to dry, dehydrated, and freeze-dried vittles because it’s ready to eat and doesn’t require other valuable resources to prepare such as heat and water, it’s also much more expensive. That being said, while there may be occasional utility disruptions due to a lack of spare parts, I don’t expect catastrophic failures.

You should have at least a six-month supply of food on hand. Remember: Even if the food shortages fail to manifest themselves or are quickly extinguished, the food you store will come in handy if you find yourself unemployed and unable to afford, say, $30 for a loaf of bread.

Warmth.  Although I live in a warm weather climate, I realize many people don’t. If you live in an area with extremely cold winters, make sure you have a sufficient supply of wood or heating oil on hand.

Medications.  If you need prescription medications, make sure you have enough to get you through until the supply chains are restored. Make sure you always have an extra bottle or two of aspirin, cold medicine and vitamins. You should also have a decent first-aid kit and, if at all possible, a supply of antibiotics on hand.

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