What Would Happen if the US Economy Collapses?

primitive survivors economical collapse

Experts say that ΒΎ of Americans rely only on their paycheck, and less than half could survive 6 months after a major life event destroys their finances. This means that most Americans aren’t saving up enough in case of emergencies and wouldn’t survive a long time when they suddenly go unemployed.

People think their finances are stable and refuse to admit that a worldwide economic crash is inevitable. Read our article to find out the signs of an economic collapse in the US.

Signs of an Economic Collapse

If the economy collapses, you wouldn’t be able to use credit and the banks would close. It’s going to create a global panic that will affect every institution, community, and family. Here are some clear signs that the economy is making a downfall.

Lawlessness will RuleΒ 

  • The crime rate will rise because of riots, looting, and competition for limited resources.Β 
  • Martial law may be enacted. When this happens you will see things like travel restrictions, mandatory curfews, and the suspension of Constitutional rights.

The Financial System Will Crash

  • Houses losing their value and banks writing off ba debt in trillions will cause a widespread asset deflation
  • Gas, food, and livestock prices will hyperinflate and grip the economy
  • Major currencies like the US Dollar will crash
  • The unemployment rate will rise
  • Travel restrictions will be approved by the government.
  • Bond and stock markets will collapse as panic selling causes abrupt, dramatic price declines

Food Shortages will be Rampant

Food is a basic need of every creature, and shortages are inevitable in an economic meltdown. Extreme inflation will affect suppliers, wholesalers, and resellers, so many food businesses, and agriculture will fail, and food will be scarce.

It is also worth noting that supermarkets will stock very limited food at a time. People may stampede to the local supermarkets to buy as much as they can. Some may attempt to steal and even become violent.Β 

How Close are We to a Total Economic Collapse?

Here are just a few scenarios that many survivalists fear would create an economic collapse:

  • Bank runs could force banks to close and go out of business, hindering cash withdrawals and loans.
  • Online transactions and emails will be blocked due to the internet’s paralysis by a super-virus
  • Terrorist attacks and massive oil embargo could halt interstate trucking.
  • Climate change could threaten the economy, forcing farms, utilities, and other companies to declare bankruptcy. As those loans go under, it will damage banks’ balance sheets just like subprime mortgages did during the financial crisis
  • Natural disasters can cause rising costs of insurance which many would not be able to afford.
  • Some believe the Federal Reserve, the president, or an international conspiracy are driving the United States toward economic ruin. If that’s the case, the economy could collapse in as little as a week.

Will the US Economy Collapse?

The US Economy is strong and resilient. Some downfalls that happened before were merely crises and not collapse, although it affected many people. For instance, the 2008 financial crisis was not a collapse. Millions of people lost jobs and homes, but basic services were still provided.

The 2008 Financial Crisis showed signs such as falling housing prices and increasing mortgage defaults. Left untended, the resulting subprime mortgage crisis, which panicked investors and led to massive bank withdrawals, spread like wildfire across the financial community. The U.S. government had no choice but to bail out β€œtoo big to fail” banks and insurance companies, like Bear Stearns and AIG, or face both national and global financial catastrophes.

Despite this, it is still unlikely that a crisis could create a collapse, as long as the government acts quickly to avoid a total collapse. You can also mark yourself safe from the downfall by prepping! Watch out for our next article about how to prep for an economic downfall!

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  • If the US economy collapsed….
    I would not except paper money in trade for anything….
    Bartering would take on a whole new meaningπŸ˜‚

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