Economic Meltdown 2015 - Preparing for an Economic Collapse in 2015

Economic Meltdown 2015

Preparing for an Economic Collapse in 2015

Stes de Necker

If some economists are to be believed, 2015 will be the year when all the chickens will come home to roost. Most prominent among these theorists is David Levy, whose grandfather had correctly predicted the Great Depression of 1929.

David Levy, who is the chairman of The Jerome Levy Forecasting Center in New York, is of the opinion that 2015 will mark the start of another major recession that will last for a considerable amount of time.

Levy is not the only economist who is predicting an economic collapse in 2015, Professor W. Thompson of Indian University also projects that the economies world over will see a downturn in 2015.

Aftermath of an economic collapse and how you can survive it. Events that may certainly happen in the aftermath of an Economic Collapse. 

Martial law: 

Considering the widespread impact of a collapsing economy on the sentiments of people, it is expected that all governments will use all available legislation to its advantage.

Travel restrictions: 

An economic meltdown can trigger travel restrictions, including suspension of passports. It will also cause travel restrictions to be put in place.   

Confiscation of wealth: 

A catastrophic economic collapse can make governments to take extreme steps, which also includes confiscation of wealth. The laws passed by the European Union give it the authority to confiscate bank accounts through bail-ins.

Although real estate and precious metals are not covered under the rule, it doesn’t mean that they are safe.

Governments around the world have been known to make some difficult decisions whenever their economies are in dire straits, and 2015 can turn out that point of time in history.

Shortage of food: 

An economic collapse can lead to shortage of food in the world. The food industry is expected to take a severe hit as it survives mostly on small profit margins.

These were a few events that are likely to occur after the global economic collapse.

As was the case with previous economic crashes, people who could see the tide coming were not only able to save their fortune, but also use the bearishness of the market to their advantage.

Although the mainstream media will make you believe that the economy is on a solid footing, the ground reality is starkly different.

It is everyone’s prerogative to take the right steps and save prepare for an economic catastrophe.

Here are some suggestions that can help you prepare for an economic crash:

Get out of debt

One of the first and foremost steps you should take to secure yourself is to get out of debt as quickly as you can. I know this is easier said than done, but difficult times call for difficult measures.

Paying off your mortgage in a short span of time might not be possible, but you can at least try to get rid of your credit card debt or any car loans.

The lesser your debts, the better position you will be in to deal with the economic depression.

Save for the rainy day

People who have been contributing to a rainy day fund are better prepared for dealing with the economic crash. If you don’t have enough savings to help you brave the winds of a financial collapse, start today.

You might need to make substantial contributions to compensate for the lack of contribution that you should have made earlier.

Although having a rainy day fund won’t mean that you will see through the crisis without having a steady source of income, it will definitely buy you time after the initial shock.

If you have any liquid investments (financial) now is the time to seriously consider buying gold. Gold will always secure you a safe harbor in difficult times.  

Practice frugal living

To deal with the downturn in economy, you will need to make some major lifestyle changes.

If you have got used to living on credit, now is the time to change that and start living frugally.

From shunning your credit card to brown bagging your lunches, you need to put in an effort to save every penny that you can.

You also need to look for alternatives to the products that you use on a daily basis.

Food prices will sky-rocket and investing in a garden can be a great idea.

Learn new skills

Surviving an economic collapse will require patience and perseverance from you. 

You need to hone your existing skills and learn new ones to improve your chances of gaining employment. 

Learning new skills will also help you compliment your primary source of income.

Research about the winners

In the economic crisis of 2007-08, many investors were not only able to secure their investments, but also make a profit because they were armed with the right information. 

If you don’t want to take any major risks, staying away from the stock market can seem to be a pretty simple idea.

However, if you want to cash in on the downturn in the economy like Warren Buffett, John Paulson, and Jamie Dimon did during the recession of 2007-08, you need to start looking out for stocks that will grow in the next economic crisis.

There is a lack of awareness with most people about the impending financial crisis.

People who get most of their news through mainstream media might not even get to know about the crash until it actually happens. 

It is important that we spread awareness and help everyone prepare for such a catastrophe.