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10 Things to Do on the Day The Economy Collapses

C. Davis by C. Davis
March 1, 2015
46

“Most of us are so used to running out to the supermarket or to Wal-Mart for whatever we need that we never even stop to consider what would happen if suddenly we were not able to do that. Already the U.S. economy is starting to stumble about like a drunken frat boy. All it would take for the entire U.S. to resemble New Orleans after Hurricane Katrina would be for a major war, a terror attack, a deadly pandemic or a massive natural disaster to strike at just the right time and push the teetering U.S. economy over the edge.” – Steve Quayle (Source)

Plus the current debt ($18 Trillion) is nearly as much as the country produces in a whole year. In the short run, the economy and voters benefit from deficit spending. In the long run, a growing Federal debt is like driving with the emergency brake on, further slowing the U.S. economy. At any point, debt holders could demand larger interest payments to compensate for what they perceive as an increasing risk they won’t be repaid. When this happens, the United States will have to pay exorbitant amounts just for the interest.

So don’t be totally surprised if one day you hear it on the news, and the next week you’ll lose your job or you can’t sell anything or you go to the store just to find out that bread costs $40 and all your money will go into buying food, preventing you from paying you credits, bills or rent (this happened a few times – see Irish Famine – Ingenious Foods People Made During Famines).

1. Redistribute Your Money

If all of your money is in one single bank account, you might end up with none if the bank goes bankrupt. The day the economy collapses, go to the bank and withdrew a large part of your money and move them into different bank account (other banks). Keep part of them in cash and part of them invest it (buy) in something that doesn’t devalue (2).

2. Buy Something That Doesn’t Lose Value

Gold doesn’t lose value as normal currency does. In fact in an economic crisis it can gain value. In 2008-2009 at the height of the financial crisis, gold demand was so great that the national mints could not keep up with it. The flow of historic gold coins from Europe was also insufficient to meet accelerating demand both there and in the United States. And when the demand is high and the offer is limited… guess what? Yes… the price will rise!

So buying gold the day the economy collapses may not only assure you won’t lose money, but also gain value.

3. Sell

No matter if you own a business (and have large stocks) or simply if you have something in the house you no longer need and want to sell on the internet. Now it’s the time. Because after a week you won’t be able to sell anything, or if you do, you’ll get a percent of the price. Make a discount just to be sure you can sell fast and easy.

4. Consolidate Your Job Position

You know better what this means to you. It can be: settling a dispute with your boss, colleagues, or doing a job you previously postponed for days, or inviting your boss for dinner (Hope this doesn’t mean you have to kiss some a$$). When that person who makes the decisions has to fire some staff, just make sure the rational and emotional arguments are on your side. You know better what and how to do. Be smart, not vain!

If you own a business or you are your own manager then consolidate the business! This can mean renegotiating contracts with providers or making new partners.

5. Get Out Of Debt

If you are in debt you will be very vulnerable if the economy collapses. If you lose your job and you’ll be unable to pay your credits, you may end up on the streets. You do not want to be a slave to debt when the next wave of the economic collapse strikes. If you have to sell one of your cars just to pay your debt, then do on in the day the economy collapses.

6. Re-plan Your Future Investments

I know a few people who lost a lot of money back in 2008. Some invested huge amounts in businesses that were supposed to work big time, but instead they end up with a worthless investment. So if you plan on investing in something (like a house, a market house, etc) it’s better to wait or buy small.

7. Cut Off Expenses

“A lot of people claim that they can’t put any money toward prepping, but the truth is that we all have room to reduce our expenses. We all spend money on things that we do not really need. Those that are “lean and mean” will tend to do much better during the times that are coming.” – Michael Snyder (Source)

Re-negotiate your phone, cable or internet subscriptions. Anything that can be reduced without affecting your survivability.

8. Make A Back-up Plan

Well, in case nothing works, and everything collapses you should have a prepared plan like a bug out location where you can grow your own food and live without much outside help. Not completely isolated, since you’ll have better chances of surviving in a community (see – 30 Lost Survival Ways from 1880). Whether it is your family, your friends or a group of people that you know, make sure that you have some people that you can rely on.

9. Secure Your Home against Looters (in the first two weeks)

OCOKA is a military term that stands for:

– Observation and fields of fire

– Cover and Concealment

– Obstacles

– Key Terrain

– Avenues of Approach

When setting up home defenses OCOKA should always be kept in mind and each principle addressed. Following these five key principles, you will greatly improve your security and survivability. This is one of the things that I’ve learned from a well-known army officer vet Steve Walker, for whom I have all the respect in the world. Watch his video and learn quite a few efficient and unconventional fast-tips about protecting your family in time of war or social chaos.

10. Providing Food for Your Family

The day the economy collapses, make time, go to the closest supermarket and buy some long term emergency foods or simple: white rice, grains, canned foods, etc. Without food you are not going to survive. More so, just like gold – food is one of the best currencies in a crisis, and unless it spoils you have absolutely nothing to lose. People will trade ANYTHING for food.

During famines people ate a lot of “nasty” stuff, and even resorting to cannibalism (no kidding – a lot of times).

Yang Jisheng (China Famine – Survivor)

“People ate corpses and fought for the bodies. In Gansu they killed outsiders; people told me strangers passed through and they killed and ate them. And they ate their own children. Terrible. Too terrible.” (Source – The Guardian)

And don’t think that this can’t happen in US. People die of hunger every day. More so, no country has the economic power to save 320 million people in case SHTF.

Preparing for an economic collapse or food crisis means preparing for at least one year. But crisis may last up to 7 years and it can be wiser to have the means to produce your own food rather than stockpiling. One of the best ways to do that is by building a system totally independent from the environment.

And this CAN be done.

I have something you need to watch. It’s much better than I am at explaining the threat. Watch it and learn why you need your own sustainable food source and how you can build your own ecosystem capable of producing food in any crisis.

You may also like:

Ingenious Foods People Made During Famines

EMP survival and preparedness guide (Video)

Turning Flour into Hardtack Biscuits With Over 100 Year Shelf Life

What’s the #1 Killer In Any Crisis?

7 Actions to Take Immediately Following an EMP Strike

Tags: economic collapseFood Crisisinvestprotect your familyreserve food
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Comments 46

  1. DocOutlands says:
    8 years ago

    I don’t think the Argentines had a lot of time to withdraw their cash on the day their economy collapsed. ALL these steps should be started well in advance of a collapse of any sort. That way, your neighbors won’t see you breaking your pattern. That way, you won’t be exposing yourself and your family to panicky unprepared people who all wait until “the day of” to try and take these steps. That way, you’ll be thinking clearly and be able to analyze the moves you should be making…

    Did you like this comment? 82
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    • Splish_Splash says:
      2 months ago

      YES, it seems to me most if all these things should be complteted or almost the day the economy collapses!

      Did you like this comment? 1
      Reply
  2. jedi says:
    8 years ago

    Going to a supermarket after an. Economic collapse is not right. It be the worst black friday ever i think people would die fighting over loaf bread. Get food before collapse.

    Did you like this comment? 41
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    • Omega 13 says:
      2 years ago

      Back in 1983, Hurricane Alicia hit Texas with little warning. Since it was a “quiet” hurricane season and we hadn’t had one in years, few prepared for it. I remember driving my mother to a grocery store to pick up supplies. I did see two women fighting over a last loaf of bread. Pepperidge Farm, one of those teeny little loaves you’d make cucumber or paté sandwiches with.

      We found supplies at a liquor store. Canned food, soda, booze, crackers. After a few days I was sick of caviar and stilton cheese.

      Since then I had always prepped for hurricanes, and now I’ve done far more.

      Those two ladies fighting over bread stuck in my head.

      Did you like this comment? 28
      Reply
  3. Dick says:
    8 years ago

    What would be wiser? To payoff your mortgage when the shtf and not have the debt? Or to pay off your mortgage with dollars that are worth less according to the term of your mortgage? Assuming that there is no interest rate escalation clause on the debt.

    Did you like this comment? 10
    1
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    • shadows_edge says:
      7 years ago

      If you have a fixed rate your interest shouldn’t change so i would focus on the credit cards or other debts of that sort

      Did you like this comment? 7
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      • okey says:
        3 years ago

        well if the crap hits the fan that bad i’ll keep my money and the credit card people can turn me over to a collection agency cause they ain’t getting paid to the crisis is over the best thing to do if you can is never use or have credit card and or get in debt to start with

        Did you like this comment? 13
    • Julie says:
      3 years ago

      In my opinion, if it is within reach to pay off your mortgage, then it would be better to do that than pay off unsecured credit. If you can’t pay your mortgage after the economy crashes and you lose your job, the bank can foreclose on your house. Credit card lenders may be unhappy, but they can’t normally force the sale of your house.

      Did you like this comment? 23
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    • MaryBeth says:
      2 years ago

      When the SHTF event happens, it will not just be you. Do not worry about your debt. After the 2008 collapse (a relatively mild event) it took banks up to 10 years to complete foreclosures and banks really did try to work with people. Also, if there are no stores and no supplies, who cares about your credit score. You will have to realign your priorities quickly. Get cash, gold and other sellable items. Worry about feeding your family. If we have an economic collapse, and not an EMP the country will recover in 1 to 2 years. Focus on what you need to do in that time. Start now laying in basic food and “money” needs.

      Did you like this comment? 11
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    • Southern Scott says:
      8 months ago

      If we enter hyperinflation you will be able to pay off your mortgage with highly inflated dollars. If there is a huge disaster such as a really fatal pandemic am emp or a collapse of the power grid nobody will be collecting bills anyways. In a total economic collapse where the banks fail the feds will end up owning the mortgages and evicting millions of people will be a nonstarter. Look at recent history. I would get as debt free as possible but don’t spend your cash reserves.

      Did you like this comment? 1
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  4. JoeBlow says:
    8 years ago

    You won’t be able to do any of those things if you wait until “the day of the collapse.”

    Did you like this comment? 28
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    • Ms. Bee-Tree says:
      4 years ago

      It seems like some people are discussing multiple events. The article referred to economic collapse not an EMP or SHTF event. Completely different scenarios calling for different actions.

      Did you like this comment? 10
      2
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  5. Every Dickhead says:
    8 years ago

    Don’t forget to call your broker and scoop up all the put options you can. Might as well make a killing while the ship goes down, huh? Am I right, or am I right?

    Did you like this comment? 2
    9
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    • Wapitiman says:
      7 years ago

      Yep! Nothing is as soul-satisfying as taking advantage of other people’s hard times.

      This gives new meaning to Jesus’ admonition to “Love one’s neighbor as oneself!”

      Did you like this comment? 11
      1
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  6. IAMDLOGAN says:
    7 years ago

    Really! Where do you folks come from? You write things on the net that you fully do not understand…NONE of the things that you have written should be tried on the DAY OF COLLAPSE. If you have not already accomplished these things…please, get a 6 pack of something, a big bag a chips, and maybe a pizza from the freezer, turn on the TV and sit back and watch what is coming to YOUR neighborhood soon. Leaving your home and going into TSHHTF is the most stupid thing I have ever heard. Wait, you did say Re plan your investments… I agree… on the day of collapse you should sit quietly and re plan you now nonexistent portfolio.

    Did you like this comment? 29
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    • JJ says:
      7 years ago

      Thank you for exposing many advisers that don’t know s**t about collapse.
      Go get food???? If you don’t have food and supplies for years–not months–you have had your head up your ass.

      Did you like this comment? 21
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  7. Linda S. says:
    7 years ago

    I don’t understand taking your money out of one bank & distributing into several others. I never leave any money in the bank except enough for the 2 bills that I can only pay by automatic withdrawal. For however long we can still use cash I will do just that. And yes, prep every day!

    Did you like this comment? 23
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  8. Harry Merkin says:
    7 years ago

    Is this becoming a parody site?
    Who writes this drivel?

    On the day of the collapse, you can TRY to get as much of your money out of the bank as possible. If it’s safe, go to the store and buy as much non perishable food as you can. Gather trusted family and friends together and get ready to protect from looters.

    Portfolio? Really?

    Buy Gold? Should be tasty to eat.

    Get out of debt? With what job? Have you seen Venezuela?

    I won’t even address the rest. Google “Walmart cleaned out in hours”

    If SHTF and everyone knows (and they will) it will be a matter of DAYS before all the weirdos, criminals and gangs start Nutting out. You need to pay off debt NOW. You need to prep NOW. There is truth at the beginning of this article. We have a debt that WILL NEVER be repaid because the morons in Washington don’t know how to stop spending. It’s not a matter of if, but WHEN.

    Did you like this comment? 33
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    • Hello World says:
      3 years ago

      Well now has happened. How are all of u doing this far??? It’s winter still here and do growing food outside is a no go for at least 3 more weeks.

      Got some cash, silver, guns … got 2 months worth of food for a family of 4. My husband still has a job and works remotely in IT…
      He doesn’t think it’s as bad until yesterday when I told him to go get groceries. Shits almost gone. He realized at that moment. Still didn’t get $$$ out. I’m over 40 and we live in a home that’s on 2.5 acres, we are pretty prepped. However I’m worried I will get the virus. My immune system sucks.

      However, I Own a 105 yr old stove with a gas and wood ability. Keeps our home warm and can cook w/o electrical. Have our own well and propane tank. Guns, ammo, meds . I’ve been a prepper even when I lived in the city

      got this place when I had heard rumors of an economic bubble collapse happening in 2020 or 2022..
      Only 8 neighbors on our road and all live within their means and are survivors for most part. Only thing killing us right now is debts. Got 3 yrs before were outta debt. But could make min. Payments if I had too.

      How’s everyone else faring??

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    • okey says:
      3 years ago

      well if the crap hits the fan that bad i’ll keep my money and the credit card people can turn me over to a collection agency cause they ain’t getting paid to the crisis is over the best thing to do if you can is never use or have credit card and or get in debt to start with

      Did you like this comment? 2
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    • Govtgirl says:
      2 years ago

      Harry,
      I realize that the Prep Now message cannot be said too often. However, you and others who ridicule suggestions, should back off. These are merely possible responses. They may work in some areas and not others. Perhaps the gold suggestion is a little far-fetched and we should be focusing on more basic things, but in certain economic hiccups, it might be brilliant. And if it’s temporary, put options might be brilliant.
      I think it is important to try to think clearly about things.

      I had a friend who owned a little house and had a modest clerical job. Somehow she got the idea to buy a vending machine thinking it would supplement her upcoming retirement. She borrowed money on her house to do so. It was a disaster. She could not fix it, when the novelty wore off at one store, she had to find another store that would take it and pay to have someone move it. Big fail.
      Know another person who heard someone mention a stock that sounded good. Bought a bunch in retirement and lost much of his nestegg.
      Just prep and try not to do anything stupid.

      Did you like this comment? 4
      Reply
  9. Dave says:
    7 years ago

    If economic collapse (within two hours) then purchase items on line with credit cards. Items to include wood burning stove, solar panel system, food, bicycles and other needed items.

    Ensure delivery date is within four days…you may get lucky should others delay actions or system delays.

    If system does not fail then can pay off credit cards on your time table and be better prepped when it will happen.

    Dave

    Did you like this comment? 11
    2
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    • Jan Bo says:
      6 years ago

      The idea of Amazoning a bunch of stuff to be delivered is brilliant!!!!
      Our Amazon warehouse is a few miles away and we often get things the next day.
      Best idea I have seen in two years.

      Did you like this comment? 10
      Reply
  10. Littlebit says:
    7 years ago

    Pay your credit cards. Why? The court system will not be working after an EMP. It is all run on computers as is the CC. There will probably be no one working for the CC company as they cannot pay them. There will probably be no one working for the courts. Same reason. They would have to get to your area to file if they could file. Get your house paid for, one car paid for and hunker down.

    Did you like this comment? 14
    Reply
  11. lucybird says:
    6 years ago

    1-6 are crocks of crap if economy crashes you wont have time to do those things and telling someone to move their money to another bank is pure stupidity it will all be gone before you could do anything about it

    Did you like this comment? 15
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    • Scrot says:
      6 years ago

      Agreed… Nonsense!

      Did you like this comment? 9
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    • Dan says:
      3 years ago

      Agreed. It is already too late for most of those things as you already see in most stores. Even Amazon and the delivery services may stop if things get really bad.
      CC are unsecured debt, so that would be the only debt to dump.
      Mortgages are far more important, and not something to dump.
      Even gold and silver now have ridiculous premiums and spreads, so you will pay dearly for them now.
      A few months ago the premium on silver was 50-60 cents per oz. Now they are $3.50-3.60 per oz, 6-7 times higher.
      The only way to redistribute bank cash is to withdraw as much of it as possible before you can’t get it any more.
      Just moving it to another bank or account is useless.
      Convert it into gold and silver if that works for you.
      There will be withdrawal limits, just like in Greece, so learn from them.

      Did you like this comment? 8
      Reply
  12. Scrot says:
    6 years ago

    Nonsense… buy gold NOW, while the dollar still has some purchasing power… if you wait, your finances will be no better than nothing. Wermacht Republic, Zimbabwe, Argentina, etc.

    Did you like this comment? 6
    1
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    • Festus says:
      2 years ago

      Weimar Republic. “: )

      Did you like this comment? 2
      Reply
  13. ZimbabweDollars says:
    5 years ago

    Sell? Are you insane? Just stop and think for 10 seconds. If today I have something worth $1,000 (~17,000 pesos) and tomorrow hyperinflation craters the USD by a factor of 1,000, whatever I have on hand is now worth $1,000,000 (17,000,000 pesos). If I sell day 1, I have $1,000 (1/17)

    Did you like this comment? 5
    1
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    • Cas says:
      5 years ago

      Your logic is enormously flawed

      Did you like this comment? 4
      1
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    • Omega 13 says:
      2 years ago

      No, something is worth only what someone else is willing to pay for it.

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  14. Lee says:
    5 years ago

    Banks won’t likely be open the day SHTF. Those people will be out like everyone else trying to buy groceries and other supplies. I think you’ll find the banks doors locked.

    Did you like this comment? 11
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  15. LadyVal says:
    4 years ago

    I would like to ad who is going to come take your home if the SHTF if you don’t pay your mortgage? Everyone will be in survival mood. No one to take anything except the crooks, gangs, etc.

    Did you like this comment? 13
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  16. MaryBeth says:
    2 years ago

    Bill Bonner has a great book “When the ATM’s go Dark.” It is a great read. He has long believed that our nat6ions overwhelming debt will lead to an economic SHTF scenario, which he lays out and helps plan for. It really dovetails nicely many of the prepping ideas I have found on this website. A new Great Depression is going to come faster than a solar EMP event (I hope!!!) Like all of your other prepping this is about thoughtful planning and consistent carry through. But start preparing now. Our national debt is $22Trillion, and the only way to get control of that is either lowering interest rates (which are already zero) or shockingly high inflation followed by currency devaluation.

    Banks and financial institutions have long made money by assuming that the American people will sacrifice to pay off their debt because we see debt repayment as a moral imperative. In 2009, 2010 and 2011 how many corporations stopped paying debt, however? It was seen as a sound business move. Your moral responsibility is to you family, friends and community FIRST.

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  17. James says:
    2 years ago

    Do what you need to do Now before it’s to late!

    Did you like this comment? 4
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  18. red says:
    2 years ago

    Thank you, well said.
    There are sites that teach how to fast for times of famine. Fasting 16/24 will increase testosterone and knock out estrogen in men. Half of that fast is when asleep.
    Carbs to our ancestors were treats, not something to depend on. Carbs cause a spike in blood sugar and will crash, leaving you feeling weak.
    Study what has estrogen, like clover, and if male, try to avoid those foods.
    When travelling, southwest and Mexico American Indians carried chia if they could. Chia will not cause a blood sugar spike. Only a tablespoon a day will carry you thru. Aztec warriors took only chia to eat (1-2 tablespoons a day), and Tarahumara still live on it before and during distance competitions (100 miles, race includes scaling cliffs freehand). California chia is native from Baja California across the southwest in the lower desert. Tarahumara prefers the mountains. Both are day neutral. Mexican (hispania) is very good, but a long day bloomer. All are great in hidden gardens. niio

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  19. dz says:
    2 years ago

    what does the word “Prepare” really mean? As in taking actions in advance of a situation? This is what the online Merriam Webster dictionary posts:
    ————————————————————————————-
    prepare verb

    pre·​pare | \ pri-ˈper \
    prepared; preparing
    Definition of prepare
    transitive verb

    1a: to make ready beforehand for some purpose, use, or activity
    prepare food for dinner
    b: to put in a proper state of mind
    is prepared to listen
    2: to work out the details of : plan in advance
    preparing a campaign strategy
    3a: to put together : COMPOUND
    prepare a prescription
    b: to put into written form
    prepare a report
    intransitive verb

    : to get ready
    preparing for a career
    ————————————————————————————-

    Do you notice the common denominator of “prepare” is doing things in advance of when needed, not after. If you are maintaining situational awareness and taking precautionary preparations in advance, then you may very well become another of the panicking masses scrambling and competing at the last minute to try and salvage and grab what you can from whatever sources that may still be available.

    Not me, when SHTF and the panicking crowds are starting to roam and search, I will assess the situation and then if I deem it still safe I may “carry” while making one very short and quick run to the nearest ATM, local stores, and gas station (to top off gasoline and propane tanks), while staying tuned to the news on a radio. Then head for home, secure everything as best we can, then hunker down and keep an eye out for any chaos that may come our way. If I was positive a real, long duration SHTF situation occurred, I do like the idea of quickly placing a lot of online orders for delivery, but actually receiving anything ordered will also depend on how long those sources remain operational, how much on-hand stock is available, and if the delivery trucks are able and willing to make it to your delivery location.

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    • red says:
      2 years ago

      dz: I get coffee and gallon-size tea bags from WalMart delivered. Like anything else, now is the time to do it, especially coffee because most places in the world where they raise it got heavy frost and blizzards. Chia jumped 2 bucks a pound, but the season is long over for now. niio

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      • dz says:
        2 years ago

        yes, I expect coffee prices to soar very soon, glad I’m well stocked. I also keep a close watch on the prices of fresh chicken, beef, and pork. Beef and pork have been very volatile for several months, but chicken has been fairly stable. I am still getting boneless, skinless chicken breast for around $1.89 to $1.99 per pound, but ground beef has fluctuated from around $2.00 to $5.00 per pound, going up and down, up and down, for several months now, so I loaded up when it went down to $2.00 per pound and now I’m glad I did because two weeks later it jumped back up to $4.50 per pound. I am in the San Diego area for those who want to compare to other areas prices.

        Did you like this comment? 1
      • red says:
        2 years ago

        dz: G. beef jumped to 3/lb and may rise more. Chicken here is 65c/lb for legs. The skin is the healthiest part! Fat is next. A boneless shoulder roast today was 3.75/lb at a Mexican market down the road. Hey, there’s water in the river! 🙂 this is the first time I saw that since I came home to AZ.

        How do you handle gray water? Kitchen gray water if put in a compost pit should not smell. It’s high in nitrogen, and things in the compost will consume it and neutralize it. Compost tea is a major in the garden. niio

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    • dz says:
      2 years ago

      Correction: …If you are NOT maintaining situational awareness and taking precautionary preparations in advance, then….

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  20. dz says:
    2 years ago

    correction: …if you are NOT maintaining situational awareness and…

    Did you like this comment? 1
    Reply
  21. dz says:
    2 years ago

    As former President Ronald Reagan put it: “Freedom is a fragile thing, and it’s never more than one generation away from extinction. It is not ours by way of inheritance. It must be fought for and defended constantly by each generation, for it comes only once to a people. And those in world history who have known freedom and then lost it have never known it again.”

    Did you like this comment? 1
    Reply
  22. Kathie says:
    10 months ago

    I am a 78 year old Senior living in the city (no family)onSocial Securiy and SSI lessl than $850 a month…cannot buy gold/silver, debt $3000. I will believe the Lord will sustain me……He is my Provider!

    Did you like this comment? 1
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  23. red says:
    5 months ago

    Well, good information even in good times. Debt, just added a lot more, but have mortgage insurance and homeowners insurance. Those bases are covered. Medical is via the VA, As long as liberals aren’t allowed to implement the nazi medical for social security recipients, we should be fine. Should say, implement is AGAIN. That was one of the first things conservatives cut out of the democrat’s health care fiasco. No matter how old we get, we’re to have health care, not told by der feuror soros to hike down to the doctor’s office for that that final shot to save social security and Germany…Er, I mean America.
    niio

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