Friday, September 21, 2012

Life After the Dollar Crash - a Survival Guide

2013 may be the year when you will adopt a radically new way of life, whether you want to or not, and most won't. And for those who don't, it will be forced upon them: adapt or perish.

In my previous blog titled THE IMMINENT DOLLAR CRASH AND SOCIAL DISINTEGRATION (, referring to a hyperinflation scenario, I gave a simplified outline of the cause, and a 10-point summary of what will likely happen to you when the dropping hits the fan. In this Part 2 of 3, I will offer a formula as to how you can deal with it after it has come to pass, but better yet, how to prepare yourself for it before it happens.

Before I get into this, I should mention the factor of the PetroDollar, the dying throes of which could march the globe into World War Three, which I will discuss in the next blog - Part 3 of 3.

For this current blog, I will restrict the discussion to the domestic strife that will consume America after the Dollar Crash.

Let me recap what will happen to the average American, when, not if, the U.S. dollar plunges to, say, 20% of its current worth, then offer a remedy to each of the ten consequences I listed in the previous blog:

1. [Your pay check will be worth next to nothing.] If your current income is, say, $24,000 per annum, its real worth will have sunken to $4,800 per annum, or only $400 per month. Another way of looking at this is that everything will be five times as expensive, with gasoline costing $20 per gallon at the pump instead of the current $4 per gallon. Food prices will be likewise, that is, if there is any food available on the shelf at all, since, given the high fuel cost, the transportation system will likely have ground to a standstill. My advice is to seek an alternative that can quintuple your income. Easier said than done of course, or else everyone would have done it, with or without the hyperinflation. The catch is that such a route would be risky, and you may lose even what you currently have if it fails. I'm talking about investment in those industries or businesses that can keep up with the inflation, or even stay ahead of it. Top on my list are solar panels and food-plant seeds, which will be in great demand. More on this later. For those who do not want to take the risky route, I would suggest to use your current income to purchase those things you will need in the event of a crash, and/or those non-perishable items that you will buy in the future anyway, with or without a crash, such as dried or canned food or rice or spaghetti or even ramein. Also, the essentials such as flash lights, a large magnifying glass as a fire-starter, water containers, water purification tablets, first aid kits, camping equipment, solar panels, wind turbines, rechargeable batteries, all-electrical appliances, an electric scooter, etc. These item can only increase in value, whereas whatever money you have left behind after the crash may not be worth the paper it is printed on.

2. [As the USD is printed out of thin air, your life-saving could evaporate back into thin air.] For those with savings in the form of cash in the bank, my suggestion would be for them to convert it into a more secure currency, e.g. the Canadian dollar, or better yet, gold, and keep it "under your mattress". In the case of hyperinflation, one of its immediate causes, and its immediate effect, is a massive bank run, i.e. everybody trying to withdraw their cash at once, which could force the banks themselves to collapse, and your bank account into worthlessness.

3. [Given the skyrocketing cost of doing business, many companies will fail and fold.] If you work for one of these companies, you will likely lose your job, so analyse its survivability in such a scenario. There are companies and industries that will survive the crash, or at least better than others. Get a job in these industries and your employment will likewise be more secure. In general, any industry that relies heavily on burning fossil fuels, for example, will fold. So if you work for a shipping company using 18-wheelers or air-freight, chances are that they will close and you will join the unemployment line-up. If you work for a local food co-op, on the other hand, it might even get better, if you use the barter system rather than cash.

4. [There will be massive unemployment, perhaps up to 50%.] The important thing here is that if there really is such high unemployment, it would mean that the government has gone bankrupt, and no welfare payments would be forthcoming. You're on your own. So, whether you are currently employed or not, when it comes to the crunch, you cannot look to your government to look after you, or to even to make sure that your most basis needs are met, such as food stamps, much less medicaid. What I would suggest that you do then, especially if you have nothing to barter with for food, is to be able to grow your own, and to have enough unperishable food to last you the initial three months. Instead of saving in cash in the bank, I would save in food in your cellar.

5. [The government will default on social security payments, pension payments, government employee salary payments including that of the military, medicare payments, etc.] Bear in mind that the government has an unfunded obligation to the people, basically a public debt, of over $55 trillion a year, and rising. If the government declares bankruptcy, it could default on any and all payments. We have all heard of people working for companies with financial difficulties who have not received a pay check for weeks or months. If the company folds, of course they won't get paid at all. For all people in civil and public service, including the police and the military, the government is the employer. If the government goes bankrupt, they could stay on out of patriotism, but they wouldn't get paid, and for the retired, they may not receive their pension. As for seniors on old age security and/or pension, they may have to count on their children to support them, who in turned may have lost their own governmental support. Again, my advice is to save up for this rainy day, in real tradable commodities, not in cash, and if in cash, let it be in a secure currency.

6. [Your gasoline cars will be as good as static metallic sculptures rooted to where they are parked.] There may come a day when the country from coast to coast will be littered with gasoline cars that no one would steal, even if they were BMWs or Ferraris with keys in the ignition. The kind of vehicles still in use would be bicycles or electric scooters. Not even electric cars may be prevalent, since the grid may have gone down, and solar panels won't recharge them for all intents and purposes. And of course, if the grid is down, solar panels and storage batteries will be needed. So these are what you should purchase with your money while it still has some purchasing power.

7. [Since the transportation system will have ground to a halt, grocery shelves will empty within days.] Check out your grocery stores and see how much of the food on shelves is imported. You can eliminate them from your life-after-crash. This leaves locally grown food. So, grow your own, or get into the local food production business, which is the kind that will have a future. Bear in mind that if you have food to sell, you will not be paid in cash, much less on credit. And if you live in some enclave in the depths of a major metropolis, such as Los Angeles or New York City, you may have trouble feeding yourself. So, consider moving out to somewhere with at least enough land for a vegetable garden, or a greenhouse.

8. [The water distribution systems could also fail, in which case people living in the depths of a major metropolis, especially one in arid regions, such as Las Vegas or Phoenix, may go as far as dying of thirst if not hunger.] I would move out of these cities while there is still a transportation system by which you can do so, because after it has ground to a halt, to walk out will not be an option. Where to? Somewhere with fresh water year round, of course.

9. [Other than fuel prices going out of reach, the electricity grids too may fail, and people living in those areas with severe winters may freeze to death.] If you live in, say, Montana or Minnesota or Missouri or even the New England states, you would be well advised to move down south, southeast or the west coast, anywhere with mild, survivable winters. Imagine a winter in Chicago without heating.

10. [There will be robbing, looting, rioting and home invasions - in general an overall disintegration of the American society as we know it.] For this reason alone, a major metropolis is not a good place to be, especially when the police forces may not then be operational. I would move out to the country and ride it out, with a good defense system for good measure.

No time to be polite. Though I hope that you have found the above helpful, I have to add, "Ignore it at your own peril and that of your children."

Anthony Marr, Founder and President
Heal Our Planet Earth (HOPE)
Global Anti-Hunting Coalition (GAHC)


wolfiesmom2 said...

Already have a head start on surviving this mess, and know as hard as it is now, it could get much worse..I have thought out several different scenarios and plans to stock pile and survive in a rural area..the urban areas will be too dangerous. Thanks Anthony, gives some people who are listening some food for thought...I will miss my computer :(

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