Economy Collapse: Nine Dangers Often Seen Following an Economic Collapse
While an economy collapse can take numerous forms, there are certain signs often indicate a nation’s economy is in danger. Then history has shown that when a nation is no longer solvent the resulting peril is widespread and deadly.
Signs an Economic Collapse May be imminent
Despite all the dire warnings and predictions on many…most…survival and preparedness sites, of an impending collapse of the US dollar and the country’s economy, so far we’ve dodged that bullet. However, throughout history events and actions taken by nation’s governments have all too often preceded an economic depression or outright collapse. These signs are:
- Trade deficits
- Famine (which almost always follows war and revolution)
- Resource depletion
- Hyperinflation (caused when the government prints money with nothing to secure it)
- Economic embargoes and blockades
- Banking holidays (closed banks), confiscation of private accounts, and issuance of new money
- Hoarding of precious metals like gold and silver
- Other forms of exchange emerge like jewelry and alcohol
Dangers that Follow When an Economy Collapses
Historically, certain threats to a nation’s citizens almost always occur when their economy collapses, and despite government assurances to the contrary, life is full of peril. Here are nine dangers seen after an economic collapse:
- Gold confiscation – following bank closures at the beginning of the Great Depression, the Government confiscated all privately-owned gold in exchange for fiat money (basically green toilet paper).
- Famine – as seen in China from 1852 to 1870 where over 100 million people died of starvation after an internal uprising and war.
- Collapse of infrastructure – without money to pay workers, utility companies and municipalities struggle to maintain service leading to loss of power, clean water delivery and waste disposal.
- Epidemics – With food shortages and improper disposal of waste come illness and disease.
- Rioting – When people are hungry and the store shelves are broken, citizens who blame the government will often begin rioting.
- Martial law – In an effort to control the populace, governments will often institute repressive laws meant to quell any negative response by its starving citizens.
- Crime increases – Anger, frustration and fear will lead even the most law-abiding citizens to turn to crime to acquire those things necessary to feed themselves and their children.
- Police become criminals – When municipalities are unable to pay their police, history has shown that those who were once defenders of the law will begin breaking the law to provide for their own. Following the economic collapse in Argentina it was common for police to man illegal checkpoints where they would demand bribes off motorists.
- Murder and assassinations – One reason for nations making it illegal to own guns is because the ones who get blamed when the economy collapses are the politicians and leaders. The economy of Germany following WWI was a total mess, leading to political instability and attacks on many politicians.
What Can You Do to Avoid the Dangers of an Economic Collapse?
While it sounds redundant to repeat this again, being prepared may be the only chance you have. Of course, when a Government sees the signs of an approaching economic collapse they are going to take measures to ensure the survival of the elite and the ruling class.
In the United States these steps often take the form of Executive Orders signed by sitting presidents that bypass Congress and establish laws about the rights of the Government in the event of martial law. Current Executive orders give the government the right to take control of:
- Transportation – Road, rail, air and water travel
- Communications – Phones, radio and television, and internet
- Food – Confiscation of all food resources, even the right to enter your home and take any “extra” food you may have
- Law enforcement
Alarmingly, with the current world finances and economies so interdependent, when the economy collapses the next time, it could be a global collapse meaning any recovery could take decades or longer.
Do not rely
on governments to help you in the future.
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