(Image created by me)
For some, the thought of society not resurrecting itself after a financial meltdown is completely unthinkable. After all, the US didn’t disintegrate after the Great Depression. The Great Recession of 2008 didn’t produce any breakaway republics from our states. However, there’s always the chance that a financial catastrophe will wreak enough havoc that the country will effectively cease to exist, at least for some time.
The Nature of the Collapse:
The primary factor in determining when society will get back on track after a financial meltdown will be the nature of the collapse itself, as well as its scale. For instance, if peak oil has been reached and the collapse is due to the disintegration of the oil industry, combined with no viable alternatives, there’s an excellent chance the collapse could be for the long term.
However, if the collapse is not total, but something more along the lines of the Great Depression, everything could be back up and running within a few months (although it would take years for the damage caused to be erased).
The Actions Of Our Neighbors:
Take a look at the world scene. What do you see? There’s a war over there. Starvation on this side. Disease ravages those nations over there. It’s not a peaceful time. It doesn’t take an expert to see that. If the US were to collapse under its own financial weight, there is no end to the nations who would exploit that to their own advantage, unless they were similarly hobbled by a disintegrating global economy. However, if an enemy were to invade during a financial crisis, things could go from bad to worse very, very quickly.
What Does A Collapse Look Like?
Would you know a financial crisis if you saw it? Would you know it was time to take your money out of the stock market if you saw warning signs? Would it even be worth it to pull your wealth from the system? The 2008 recession came with warning signs that most missed. Would you be able to tell that things were about to head far, far south?
The truth is that most of us wouldn’t know the warning signs of an impending financial disaster if it hit us upside the face. In fact, it can be difficult to tell what’s going on even during the midst of the meltdown. Between media doublespeak, government assurances and the ever-increasing amount of incorrect opinion online, you need a rough guideline for how such a collapse will unfold, from beginning to grisly end. Here’s a rough outline of what might occur.
Everything’s fine – It’s business as usual. However, there’s a rotten secret at the core of our golden apple. Things aren’t as fine as they seem. There’s a sentiment of entitlement. There’s a feeling that everyone should have what everyone else has, even if they haven’t earned it.
Increasing disparity – Now things become a little different. Despite any wealth redistribution policies that might come into play, the disparity in earnings between the richest and the poorest in the nation, even between the richest and the middle class, continues to widen. That vast gulf has been seen before, in the 1920s, right before the massive market crash we know as the Great Depression.
What’s more, the wealth disparity is even higher today than it was then, despite the minor correction of the market we experienced as the recession of 2008.
Now, a few other things will happen:
An increasing number of citizens will begin relying mostly or entirely on government assistance, rather than earning a living wage. This is due to a number of factors, including reduced hiring (amidst skyrocketing corporate earnings), an entitlement mentality, and more people staying on government assistance programs for longer periods of time.
The reduction of the American dollar’s value and a slow distancing of it from the mainstay of international trade. Today, the dollar is the single most used currency in the international world, but it won’t always be that way. In addition, the value of the dollar has already dropped significantly due to manipulation by the Feds.
Corporate subsidies from the government will dry up. The bailouts of GM and Dodge during the recession incensed many Americans, despite the fact that they saved a lot of jobs. However, those are only the most blatantly obvious expenditures of the government in supporting businesses. Corporations large and small rely on government subsidies to remain profitable today, and as the government’s debt mounts and ability to pay dwindles, those will dry up.
Now things really start to get strange. Once society degenerates to this level, you’ll see things like the government confiscating firearms as banks and mortgages fail faster and faster. Without an ability to earn money, citizens will have no way to meet their financial obligations, much less put food on their tables. Riots are not just possible, but likely.
Eventually, the nation begins to look like a wasteland out of some post-apocalyptic vision. The power grid begins to fail, and rolling blackouts are widespread. The country’s roadways begin to deteriorate, and entire neighborhoods within cities transition from peaceful places to live to slums.
How long might all this take? It’s already started. In the beginning, it’s a long, slow slide into desolation, but it picks up speed alarmingly as things move along. In fact, it becomes a cyclical process that feeds on itself. The more things fail the faster others follow.
What’s the underlying cause here? Experts point to any number of things. The entitlement mindset is certainly a factor. Government spending and increasing debt do nothing to help. Personal debt is also at an all-time high. What’s the single factor that connects the dots here? Money. Hinging our entire civilization on the concept that money somehow carries value is what has doomed it.
For those of us living in the modern world, money seems as natural as breathing, but the fact remains that despite currency’s long history of use, it hasn’t always been the basis for human existence. In fact, for the vast majority of our species’ history, money didn’t exist at all. It’s a relatively recent development, and basing our entire society on it is an even more recent advent. In short, we’ve doomed ourselves by our insistence on believing that cash is king.
That begs the question – even if the economy does return to its pre-crash splendor, do you really want to be part of it? Only you can answer that question. You need to learn to stockpile food, water, weapons, ammo, medicine, and more. We’ll be covering how to do just that in the other sections of the blog. For now, let’s continue to look at what changes you might face in this new world, including finding a place to live, bartering, and more.