Today's contributor is Fernando "FerFAL" Aguirre. Many of our readers have expressed interest in hearing accounts from those who have lived through economic collapse. FerFAL experienced the hyperinflationary destruction of Argentina's economy in 2001 and continues to blog about his experiences and observations of its lingering aftermath. His website and his book Surviving the Economic Collapse offer windows into the probable outcomes to expect during a collapsing economy.
“How can I prepare for an economic collapse?” is one of the most common questions I get. It usually takes me a second to start to explain how complex such a question is. It’s like asking an auto mechanic, “Say, how do you build a car?” or asking a computer engineer, “What’s all that stuff inside my laptop?”
I do have some first-hand experience in this matter, though. The economy in my country, Argentina, has gone through various crises, but none as large as when the economy collapsed in 2001 after a decade of apparent prosperity. The currency devaluated, and Argentina defaulted on its USD$132 billion debt, the largest default ever. The middle class took to the streets after bank accounts were frozen, and the president was forced to resign, escaping the presidential building in a helicopter.
What I’ll do is, provide five quick foundational steps, based on what I know, for you to follow so as to be better prepared if something like what happened in my country ever happens in yours.
Step #1: Secure a percentage of your savings in bullion.
Step #2: Stock up on food.
Step #3: Acquire the essentials by putting together a survival/emergency kit.
Step #4: Improve your personal and home security.
Step #5: Embrace a different mindset. (become more positive, more active - survive!)
Some common questions regarding hyperinflation:
How quickly does it happen?
These events occur fast, but there are warning signs
How does the populace react?
Violently, as you’d expect when your life savings are stolen from you.
What happens to the capital markets?
The stock market dropped like a rock, then shut down.
Does violence and crime become an immediate concern?
Yes it does. While stores were the more common targets, houses were looted, too. The best thing to do was stay home, have a defendable position and be armed.
http://www.chrismartenson.com/blog/preparing-economic-collapse/57744
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