How To Best Prepare Yourself For The Coming Financial Crisis
Sara Tipton
ReadyNutrition.com
June 19th, 2018
Many financial analysts believe the United States economy is in a dire situation. Peter Schiff, who accurately predicted the 2008 recession has come out and declared we will all live through another Great Depression, only this time, it’ll be much worse than before. But there are ways to prepare for such an event, and we’ve gathered some helpful tips and tricks to help make the process a little more smooth.
“The bad news is, we are going to live through another Great Depression and it’s going to be very different. This will be in many ways, much much worse, than what people had to endure during the Great Depression…This is going to be a dollar crisis.”
“When you are talking about the magnitude of the debt we have, that extra money [raising interest rates] is big. That’s going to be a big drain on the economy to the extent that we have to pay higher interest to international creditors…a lot of this phony GDP is coming from consumption, while the average American who is consuming is deeply in debt and they are going to impacted dramatically in the increase in the cost of servicing that debt…given how much debt we have, and how much debt is going to be marketed the massive increase in supply will argue for interest rates that are higher.” -Peter Schiff
According to Financial Times, it is becoming clear that the global monetary policy is now caught in a debt trap of its own making. Continuing on the current monetary path is ineffective and increasingly dangerous. But any reversal also involves great risks. It stands to reason that the odds of another crisis blowing up continue to rise.
So how can you forecast this economic disaster and best prepare? For starters, you should pay off as much debt as possible. There are many reasons for this, the obvious being if it truly belongs to you and you have the title in hand, no one can take that property from you. Pay off your unsecured debts first and as quickly as possible, however. Credit card debt will become more expensive as interest rates rise, making those already only able to make a minimum payment stuck choosing between a credit card payment or another bill. Make sure you stop putting things on a credit card in order to pay it down with the goal of eliminating that debt. Cut things out of your budget if you must to pay things off. A good tip from Surviopedia is to tackle your debts one at a time starting with the smaller ones. Once the smaller one is paid off, apply the money for those payments to the next biggest debt, paying it off early. Once things are paid off, you’ll also have the added benefit of having extra money to buy things of value that can be used as currency during a crisis, such as gold, food, or ammunition. Remember, when paper money is of no value, food or ammunition could very well be a powerful form of currency as bartering for goods and services inevitably returns.
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