Frugal Homesteading Blog

Numerous New Economic Crash Warnings

Survival Blog reported that there are several new economic crash warnings, coming from the banking sector and economists alike. Because of tightening credit and reduced access to money, banks are reducing existing credit card limits and credit lines by $2 trillion. This will have a ripple effect on consumers and the economy, as those who use their credit cards for daily expenses and even gasoline are cut off from their cash flow crutches.

The People for a Perfect Economy site puts the chance of an economic crash at 100 percent, and the numbers they’ve crunched say that at current rates, our economy can limp along to about 2010 or 2015. Economist Mike Montagne has been working with this information since before Reagan’s administration and, unfortunately, seems to know exactly what he’s talking about.

Our monetary system, based on debt and with loans lent at interest, is unsustainable. The economic squeeze we’re feeling would be completely preventable in an interest-free economy. However, more and more money in our economy (as a nation and as individuals) is going to service debt and is not being spent on production, invention and agriculture, which would contribute to prosperity.

Learning how to survive economic collapse is imperative. Best case scenario, there is a mild recession or prolonged economic downturn, and we all weather the storm as best we can. In the worst case scenario, banks close, people can’t get their money, the stock market collapses and we have a disaster of unprecedented proportions. Either way, learning how to best protect your family and survive through challenging economic times is critical.

The following resources are meant to be a starting point for your own research and planning.

• Survival Blog is an incredible hub of information on surviving any imaginable disaster and preparing for the unknown. Author James Wesley Rawles advises getting your finances and homestead or retreat in order for the coming economic crash.
• The Second Great Depression 2007-2020, a book by Warren Brussee, includes investment advice for a prolonged economic downturn, with predictions backed up by facts. However, he stops short of forecasting a worldwide economic collapse.
• America’s Financial Apocalypse: How to Profit from the Next Great Depression, by Stathis, discusses the current economic climate and what has brought us here. He shows how America’s middle class has become eroded and we will soon be left with the very rich and the working poor. America’s second great depression is a foregone conclusion for this author.
• Homesteading Today Forums have thousands of threads on every imaginable homesteading topic, from raising chickens and livestock to canning food at home. This is a great resource for those interested in more self-reliant living, which will become ever more important in the coming months and years.

Are you expecting a mild recession, prolonged depression or total economic collapse? What preparations are you making, and do you have any resources to share?