Hope I didn't scare you too much with my last letter about
financial collapse. Remember, you are one of the people
who is preparing for a disaster to strike. That means that
you will be ready when the time comes, although you may be
one of the only ones.
That should give you some much-needed assurance. You won't
have to go to a FEMA camp with everyone else so that you
can survive. When your neighbors are depending upon the
government, you'll be able to depend upon yourself and no
When that financial collapse comes, it's going to affect
a lot of things. How many aspects of daily life it
affects will depend a lot on how serious the collapse is.
Just go here to see how a food crisis can come from the
collapse of the US dollar (and how you can survive):
Of course, the longer it takes for the collapse to come,
the worst it will be when it finally gets here.
Politicians think that they can just put it off
indefinitely – but for them, indefinitely equals when they
While there are many things you should expect to happen,
here are the top five:
1. Money will become worthless
Runaway inflation always accompanies a financial meltdown.
The money you have so carefully saved over the years will
become worthless in a matter of days.
People will stop accepting American dollars in payment for
goods and services. Why would they accept worthless paper,
when they might not be able to spend it? Bartering will
become the normal way of doing business when SHTF.
The items you have stockpiled will be worth much more than
their current cash value. You can barter a roll of toilet
paper or a can of chicken. You can't barter with worthless
Gold and silver will retain their value as well. Actually,
precious metals will increase in value astronomically.
However, you may not be able to cash in on that increase
in value until the crisis is over and things return to
some semblance of normalcy.
2. The supply chain will break down
With the loss of income, companies won't be able to pay
their bills. Since most businesses operate on a net-30
basis, after those thirty days, their suppliers will
realize they aren't going to get paid. The next step will
be to cut off credit.
This will be the onset of a domino effect. One business
will fold because it can't pay its bills. That will cause
financial strain on its suppliers. If enough of the
suppliers' customers fold, they'll run out of money and
go bankrupt as well.
It won't take long before businesses all over the place
will be closing their doors. Oh, it might take a few
months for that to happen, but that's really not all that
A general breakdown of the supply chain means that the
things that we buy on a day-to-day basis won't be
available. We'll go to the grocery store and find the
shelves empty. It will become harder and harder to buy the
basic necessities for survival.
That's why you're building a food stockpile. You're going
to have to depend on it – and the other survival gear you
are stocking up on – because you won't be able to find
anything in the stores.
3. Utilities will become unreliable
With the reduction in income, utility companies will have
to find ways to cut costs. The first place will be in
replacing outdated equipment and performing preventative
maintenance. These are great when the money is there to do
them, but a burden when it isn't.
With reduced maintenance, you can be sure that there will
be more blackouts, brownouts and times when the city
water service is shut down. How much that happens will
depend on how long and how severe the collapse is.
As the crisis continues, these problems will increase in
frequency and duration. There will be more and more
problems caused by these services going out.
The only solution is to have alternate means in place so
that you can get by without electrical power and city
water. Many preppers install solar power systems, wells
and wind generators to prepare for this eventuality.
4. Riots and lawlessness will become common
Countless thousands of people will lose their jobs. Being
unprepared to face the situation, they will be angry and
scared. That will increase when they find that Big Brother
isn't going to be there to help them out.
Mobs of protesters will become commonplace. Those mobs
will quickly turn violent, as people vent their anger and
fear. Rioting, vandalism, looting and destruction will
become the expressions of that mob.
A funny thing happens with mobs. Those who are peaceful,
law-abiding people in everyday life will commit all kinds
of crimes. People who never even got a parking ticket may
do some of the vilest, most violent things, all because of
mob mentality and the unruly emotions of that mob.
The only way to deal with a mob is to avoid it. I realize
that is easier said than done, but that's what you have to
do. If you ever find yourself in a mob situation, flow
with the mob and gradually work your way to the edge. Once
there, you can slip quietly away.
5. Police and emergency services may abandon their posts
If the financial crisis gets bad enough, there may not be
enough money to pay police and other emergency services.
While most police officers are people of integrity, who
would want to go to work, putting their life on the line,
when not getting anything in return?
Those police officers and other first responders can
easily reach the point where they say, “I'm better off
When that happens, the mob violence will become worse.
Mobs that realize that they don't have any risk from the
police are the worst. Being totally unchecked makes it
even easier for them to become violent.
The only protection in such a case is to be ready to
protect yourself and your home. Having firearms and
knowing how to use them then becomes an important part of
So, there are five things that we need to watch out for
when the financial collapse comes. While you can't control
everything, you can control your actions and reactions.
By prepping now, you can be ready to feed your family,
even when the supply chain goes down. Stockpiling food is
part of that, but there's more you'll need to do. And
that's what we'll talk about in a couple days!
Until then, keep on prepping, and don't forget to check
out the ways you can survive a resulting food crisis: