A financial catastrophe is a scary reality that has the power to affect all of us.
Sadly, several indicators show a potentially crippling recession isn’t far off.
Here are the challenges you can expect to face in the aftermath of an economic collapse.
The excuse given for the creation of the Federal Reserve was economic stability, but the exact opposite has happened.
Fed policy has consistently led to the creation of financial bubbles that inevitably pop.
In light of the financial crisis of 2008, the Obama administration dropped interest rates to essentially 0%, which put a band-aid on a bullet wound.
Despite Donald Trump’s tax cuts and deregulations – two measures that unchained the economy – the long overdue market correction is still coming.
Here are some of the challenges you might face.
Businesses that are being artificially propped by a bubble will inevitably contract, and possibly go belly-up entirely.
Joblessness will rise, and you might see a decline in services that you enjoy.
With high unemployment comes anger.
Civil unrest is already on the rise, and it will only get worse during an economic downturn.
The Occupy Wall Street movement (that branched out to other cities) was a response to economic hardship, but the protesters aimed their outrage at the wrong people.
They were furious at the banks, but the government was the entity that bailed them all out on the taxpayer’s dime.
Speaking of bailouts, one of the main reasons the bank bailouts were able to happen was because of scare tactics by the so-called mainstream media.
MSNBC’s Rachel Maddow even said that without the bank bailouts, there would be no economy.
This mentality is exactly the problem.
Citizens can engage in voluntary transactions without burdensome government intervention which only screws things up.
If a recession hits, the mainstream media will play their part in whipping up the public into a frenzy, especially if Trump is in office at the time.
A bank run
If things get bad enough and people lose faith in the dollar, hordes of people could pull their money out of the bank all at once.
This would spark a global crisis due to the fractional reserve banking system, which means banks are only required to have 10% of their deposits in cash.
Banks literally do not have the cash to handle a massive bank run.
In other countries that have faced economic turmoil, the banks have literally shut down so people couldn’t access their money.
If all else fails, the government might simply start confiscating assets.
If this sounds extreme, liberal hero Franklin D. Roosevelt did it when he confiscated gold with Executive Order 6102 in 1933.
He made hoarding gold a federal offense punishable up to 10 years in prison.
When the government is desperate enough, it will do whatever it wants and justify the actions later.
A smaller form of this is already happening with municipalities defaulting due to bankruptcy, particularly over bloated pensions.
Government workers were made promises, and they only received pennies on the dollar.
The government basically took their time and money.
These are just some of the problems that may crop up during a financial crisis.
Take all the precautions you can in order to weather the storm.