Will the debt ceiling be our demise?
Is the US economic collapse coming?
What about a worldwide economic collapse?
Will this be the Great Reset?
If so, what can you do to prepare?
First, let me say this, the smartest and wisest action you can take is to slow down… don’t panic… and think it through.
That’s what this post is about.
If you’d rather watch your content (instead of read it), check out my YouTube video on the same topic, otherwise just keep scrolling.
Here it is as well.
Also, let me remind you…
I’m not an economist.
I’m just an average guy with some common sense sitting around speculating and reading the writing on the wall.
The writing on the wall says…. Inflation is coming.
Gas prices say… it’s already starting.
Hyper-inflation might be coming.
You need to be ready.
How about a total worldwide economic collapse?…
Well, I don’t think we need to worry about an economic collapse quite yet but…
You never know.
Besides, any preparation for inflation and hyperinflation would actually help in the event of a total total economic collapse so it won’t hurt to explore the idea a little.
So how do you prepare for (and make sure you’re ready for) inflation and hyperinflation?… Especially if you’re an average person who will feel it and NOT a billionaire.
Trust me, the billionaires don’t care.
They’re thinking… if inflation is bad enough it’ll be sweet! I might get to be to be a trillionaire.
But before we dive into what the average Joe should be doing to get ready for the inflation that’s coming… let’s take a moment to consider what we’re actually talking about here.
What is Inflation?
Basically, inflation is when prices go up for whatever reason.
If a bike cost $100 last year and it’s $102 this year. That is inflation.
That is actually 2% inflation, the $100 price went up to $102.
2% inflation is actually what the US Government shoots for.
It’s considered not just normal, but necessary.
So What is Hyperinflation?
According to Wikipedia, Hyperinflation is when the inflation rate is 1,000% or more per year.
That would mean your $100 bike would cost $1,000 a year from now.
Yikes!
Easy solution… Don’t buy the bike, right?
But that inflation rate means that this increase in prices would be happening to all prices of everything everywhere.
In this example, instead of spending $25 to fill your tank with gas, it would cost you $250 or more!
So maybe buying the bike today so it’s cheaper than it will be a year from now is a better strategy.
(Then you can ride the bike and save on gas.)
But what causes inflation and hyper-inflation?
There are many factors. I won’t’ get into them all in this post.
But what we’re looking at in the near future and what you need to prepare for is the inflation (and possibly hyperinflation) that will be caused because we’ve printed too much freakin’ money.
By “we”, I”m referring to the USA or more specifically the central banking system.
I’m not going to go into why or how this works, there are a gazillion YouTube videos on the topic.
It’s supply and demand.
It’s economic policy.
It’s a thousand different things.
But here’s the deal and what you need to know in a one sentence.
The more money the government prints, the less it is worth, and the more inflation goes up.
That’s it in a nutshell.
I know times are tough.
Printing money and passing out checks feels great in the moment, but it’s kinda like going on a 6-month drinking binge when your significant other walks out on you.
It feels good.
It helps you forget your current situation.
But after 6 months the problem is still there.
IF you’re lucky (and I mean very lucky), you didn’t do anything stupid to make the problem worse.
Realistically though, you probably DID make things worse and your binge had unintended consequences.
That metaphor is a great picture of where we are economically right now.
All this printing of money out of thin air is going to have some consequences, we just don’t know exactly how it will play out.
I’m from Florida and when a hurricane is coming we know it’s on the way… but we don’t know exactly how it will affect us, our house, our community, or our neighborhood.
We DO know it will have an impact and we DO know that if we prepare for it properly, we can expect less damage.
So with that thought in mind, let’s go over how you can prepare for the upcoming hurricane called inflation and maybe hyper-inflation… and maybe (but hopefully not) a total economic collapse!
I’ll be making a few assumptions moving forward.
The main one is I’m going to assume you’re not rich.
If you’re rich, you should consult your rich person financial advisor and I’m sure your strategies will look much different.
You know one thing for sure though, your financial advisor is going to make some serious commissions from you in the next few years.
Another option if you’re rich is that you could invest heavily in real estate, gold, or silver.
Historically speaking, those seem to always go up.
That way, after inflation has done it’s damage, you can sell all those assets and be back on the top of your money pile… it will just be a significantly larger pile!
That’s the safe way.
If you like a little more risk and you fall into the rich category, you could throw all your money into cryptocurrency and just see what happens.
Now the real advice for the rest of us.
For those of you who are NOT rich and fall into the average category like myself, here are some things you can do to prepare for the inflation that is coming soon.
Again, I’m not a financial advisor, I’m just some guy with a website that made a blog post about it.
I strongly urge you to consult with somebody who has a certificate or license or more letters behind their name before you take any action.
Think of me as your buddy at the bar.
Yes, I may have some interesting thoughts, but don’t bet the farm or your family’s financial security on anything I have to say.
Tip #1: Empty your Coffers – Don’t save too much cash!
As inflation goes up, the value of a dollar goes down.
A $100 today may have the purchasing power of $10 in the future.
So cash is NOT king in this scenario.
That’s why your grandpa says “when I was a boy a gallon of gas was a nickel and I could take your grandmother out on the town for a quarter”
Um.. that’s great grandpa.
Empty your coffers of cash.
What do you buy you ask?
I’m glad you asked, that leads us to:
Tip #2: Stock up on Non-perishables to use and trade.
In the event of inflation or hyperinflation, canned soup or vegetables or a package of pasta may cost five to ten times what it does now (or more).
The same can be said of everything.
A $10 package of toilet paper may cost $50 or more.
It could be much more. What happens if it’s $500 or $5,000?
You’re probably thinking, “that’s ridiculous” and to that I would say…
Um…. Yeah, that’s kind of what makes hyperinflation suck!
If hyperinflation happens, prices could get outrageous or “ridiculous” very quickly!
But if you stock up on supplies now, you’ll lock in the current price and potentially have a great commodity for trade in the future.
Some of the best things to have for trade and barter during hyperinflation include batteries, food, alcohol, condoms, cigarettes, medicine, propane gas, coffee, duct tape, baby supplies, lighters, etc.
Just think of things that we take for granted but are necessary.
If it falls into those categories, it could be a great item to stock up on as long as it’s non-perishable.
If the thought of a garage full of toilet paper and non-perishables bothers you and you have the money… it might be time to form a new habit and install a bidet so you can cut back on toilet paper.
But that’s all I’m going to say about that.
Tip #3: Consider investing in Precious Metals such as Gold and Silver
If you do have a little extra cash and would like something that holds value but doesn’t take up as much space as toilet paper then consider buying some physical gold or silver.
Personally, I like silver because the value is lower and it would be easier to trade for smaller items in the event of a worldwide economic collapse.
Right now, an ounce of gold is over $1,700, whereas silver is a little over $25 an ounce.
It would be much easier to trade silver in an economic collapse situation than it would be to trade gold because it can be traded in smaller denominations… plus it won’t put a target on your back for thieves.
I won’t get into cryptocurrency here, but that’s one thing you may want to consider too.
It’s much more speculative but on the plus side, since it’s digital it can be traded in exact denominations down to thousands of a penny.
If you’re interested in buying physical gold or silver and have never bought it before, I buy mine online from APMEX.
Tip #4: If you’re thinking about a new car or home, buying before inflation happens is a great strategy.
I normally say if you have your car paid off, drive it as long as you can.
But if you know you’ll be getting a new car in the next few years or you think you’ll need lots of repairs, it may be a great time to buy something reliable.
That $20,000 car may cost $100,000 or more after inflation starts.
Buy it now and lock in the price and also get rid of some of your cash reserves.
Be sure you get a fixed interest rate if you finance, which leads us to tip #5.
Tip #5: Convert Adjustable Rate Debt to Fixed Rate Debt
I never recommend adjustable rates for any kind of debt… EVER!
But if you do have some loans structured like that, now is the time to refinance to fixed rates.
This post isn’t the time to get into all the reasons why so you’ll just have to trust me.
Get everything on a fixed interest rate that doesn’t change, even if it means your monthly payment could go up a little.
Otherwise, someday down the line your monthly payment may go up dramatically.
Again: no adjustable rates, balloon payments, or anything else.
That way you can budget better because your payment will not change.
Adjustable rates got a lot of people in financial trouble during the 2008-2009 crisis, so unless you want to be one of those people who only learn from experience and not from history, then switch all your debt to fixed rate debt if you haven’t already.
Tip #6: Start increasing your self-sufficiency/grow your own food (garden, solar panels, farming, etc.)
Being self sufficient…. ahhh, there is some kind of beauty in that thought.
But growing your own food and/or raising your own animals, is not something you can learn overnight.
Sure, you can learn a bunch of stuff in books, on blog posts, and from YouTube videos, but it’s still a learning process.
You have to learn about the vegetables you’re growing, the soil, the weather, the animals, etc.
Learning happens when you DO something… not when you hear about how to do it.
Plus, it takes time for a garden to flourish.
Now is the time to start working toward self-sufficiency and growing your own food.
Raising some animals if you have space to do so is a great idea as well.
Don’t just think about bacon, fillet mignon or other cuts of meat either… the right animals can give you milk and eggs… as well as meat.
If you have the space, cows (or goats) for milk and chickens for eggs can be just like passive income in a the event of an economic collapse or barter economy.
It’s like getting paid everyday with something valuable you can trade for goods and services.
So start growing some crops, learning how to farm, and raising some animals.
Even if we don’t experience inflation, hyperinflation, or an economic collapse, those are still good skills to have.
Tip #7: Don’t retire early!
Normally it’s not worth it to put off retirement because you really don’t get that much more money per month by waiting.
However, IF inflation is coming, like I think it is, every dollar you bring in every month will count.
Consider waiting until you’re 70 to take retirement and social security so you can lock in the highest fixed income as possible.
If hyperinflation happens, it’s not going to matter anyway.
But depending on the inflation rate, a little more each month could make a big difference if we only experience moderate inflation.
Tip #8: Invest in some Vacant Land
Right now is an incredible time to buy some vacant land.
Buying land BEFORE inflation and BEFORE the great reset is the secret.
For one thing, you’ll have some land which is always a good investment.
You could always build on it, farm on it, raise animals on it, etc.
Or, you could always sell it.
As a real estate asset, it will hold it’s value so it’s a great place to park money until the dust settles.
Also, if you’ve followed me for any length of time, you know that I’m a huge fan of land investing and it even made my list of the top ways to flip money.
If you buy land right, you’ve already got equity and potential profit in it as soon as you take ownership.
That means if inflation pushes the price up, it will just make your investment worth even more and multiply your profits even further!
The key is to make sure you’re buying it right to begin with.
For more on how to buy land for cheap and flip it into bigger profits, check out this video.
Okay, Tip #9: Dig Your well BEFORE your thirsty by creating additional income
Unfortunately, people don’t look far enough down the road.
That’s why I taught all my kids to play chess.
Learning to think a few moves ahead is one of the main keys to success in this world.
When inflation happens and your salary doesn’t change (and it won’t), that will be the time you realize you are very thirsty and need a water well.
The problem is, it may be too late to start digging the well and creating additional income.
If you can figure it all out, it’s certainly still going to be more difficult by waiting until that time.
That’s why there’s a phrase and I’m pretty sure somebody wrote a book with the same title…
“Dig your well BEFORE you’re thirsty.”
Knowing that you’re going to need more money and additional income in the near future, now is the time to start working on creating additional revenue streams.
Now is the time to dig your well.
It takes time to build up side income and get solid revenue coming in, just like it takes time to dig a well.
So if you want to start doing that, I encourage you to check out what we’re doing and let us help you start digging a well that will spit out revenue every month!
Tip #10: Fortify Your Defenses
(just in case things get super bad)
If hyperinflation occurs with the US Dollar, we’re going to have some serious issues and things could get really bad.
I’m not an extremist, but we really could be looking at a US economic collapse and possibly even a worldwide economic collapse.
The reason is, the US Dollar is the fallback currency for many countries that are struggling.
The most recent example is Venezuela, which has been struggling with hyperinflation in the last few years.
To combat this hyperinflation, the local people have started to use the US dollar for currency because it’s much more stable than the Venezuelan currency.
This has caused the US Dollar to start growing in dominance in Venezuela.
But if the US dollar experiences major inflation or hyperinflation, it could have an impact on not just the United States, but on other countries as well.
Venezuela isn’t the only country who uses the US Dollar to bring a level of stability.
Considering the fact that the US dollar isn’t backed by gold any longer, it really only holds it’s intrinsic value because people continue to believe in it’s strength.
If you’ve ever been an entrepreneur or in business, you know that beliefs of the masses are fickle things.
Beliefs come and go about as often as the weather changes.
As I’ve said before I’m not economist … nor am I a sociologist…. But the fact that our US dollar is valuable basically because people currently believe and accept that it’s valuable is very worrisome to me.
If you thought what happened recently with Gamestop and the Robinhood investment app was crazy exciting… just imagine how fast things will roll when the dollar starts losing it’s value.
Momentum is a real thing.
Panic is a real thing.
It could get real ugly real fast.
Tip #11: Get and maintain a current passport
I hate to say it would get bad enough that we all need to run….
But hey, I call it like I see it…. you might need to run.
I love our country but if it gets unstable, I’m not going to keep my family in a dangerous and volatile situation.
Make sure your family all has passports that are current. This will help facilitate getting out should it ever get that bad.
You may be thinking it will never get bad enough that you’ll want to leave but to that I would argue that you have either never been in a country that wasn’t real stable or you’ve never had friends who have fled countries that were unstable.
In fact, if that’s how you feel you’ve probably lived much of your life in a bubble and are a bit naïve.
I had a friend whose parents put him and his brother on a boat and sent them off never to see them again in hopes they would make it to America and find safety.
He was 10.
His brother was 8.
I have 4 children.
Do you know how bad things would have to get for me to put them on a crowded boat with strangers and send them off on a prayer and hope that things would be better for them?
It would have to be bad. Real bad.
But yet, similar stories like this happen all over the world everyday.
So if you’re puffing out your chest and saying to yourself “I’ll never leave America!” then you probably need to take a moment to really think about what you would do in a worst case scenario.
We are living in the greatest economic experiment of all time.
Printing trillions and trillions of dollars in less than a year ends in only 1 or 2 ways.
Option 1: It leads to a rapid rise in inflation.
Option 2: We accidentally find a way to rewrite basic economic theory.
That’s inflation, hyperinflation, and a US economic collapse in a nutshell.
Check out one of our other awesome posts below so the google algorithm serves our content to more people!
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God Bless,
Jason and Daniele
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