Are You Prepared for a Financial Crash?
Greece has been on the verge of an economic crash for many years; as a result, their debt crisis is spiraling out of control and has many financial experts concerned. It appears that Greece is about to default on its enormous debt, leading to their abandonment of the Euro. Following recent developments in Greece this past week, financial markets around the world saw dramatic downturns. Many U.S. hedge funds have already been hit with big losses. With Greece facing imminent bankruptcy, the largest in history, there are other financial troubles that indicate a financial crisis in the U.S. could potentially be close at hand.
On the tail of the economic crisis in Greece, the Governor of Puerto Rico, Alejandro Garcia Padilla just announced that they are unable to pay back their $73 billion debt. Gov. Padilla has asked Congress to allow Puerto Rico to file bankruptcy, an unprecedented move that the White House supports.
The dire economic situations facing Greece and Puerto Rico only emphasize the fragile worldwide financial system. Leading analysts are warning that many economies are vulnerable to a financial crash. Josh Earnest, White House press secretary, said on Monday, “Robust growth and economic stability in Europe is clearly within the U.S. economic interest but also in our national security interest, as well.” Of course, Greece and Puerto Rico are only two of the many economies that are on the verge of collapse. The United States is currently $18 trillion in debt, an absolutely mind-boggling sum and it continues to rise.
Clearly, it is time for Americans to take heed and prepare for the very real possibility that we could be facing the effects of a global financial crisis in the near future. While there is no reason to panic, it is certainly prudent to prepare.
Preparing for a Financial Crisis
The first step in preparing for an economic crash is to create an action plan. This plan can help you move forward with your preparations and will keep you focused if there is a collapse of the U.S. financial system. Steps that you can take to become more self-reliant should be included in your plan. For example, do you know how to grow your own food? Have you ever cooked over an open fire? The more you can do for yourself, the better you will be able to face any type of disaster.
Start Your Emergency Fund
Cut back on any unnecessary expenses and begin building your emergency fund immediately. This fund can help you finance your preparations, but it can also be used to purchase precious metals. Many people believe that when the economy crashes, bartering and the use of gold and silver will be the only means of acquiring the things you need to survive.
Food and Water
Whenever there is a disaster, food and water are the first things that will be in short supply. In the event of an economic collapse, it is very likely that food supplies will be cut off and these items will be hard, if not impossible to find. In order to protect your family, stocking up on food and water should be one of your priorities in preparing for a financial crisis.
