Nearly every day there is some chatter about a catastrophic financial event taking place. Most of this talk is spread by doom and gloomers, but we know from the past that catastrophic events have happened before and will happen again at some point in time. Listed below are three important steps to protect yourself in case of a major stock market crash or catastrophic financial event:
1. It is important for all individuals to not be loaded and burdened with debt. In the 1920’s, almost everyone was taking on high debt and this was one of the reasons why it took the United States so long to recover. In times of need, creditors will demand their money back as soon as possible and they will also cut credit lines so liquidity will be scarce. This also happened in 2008 when the credit and housing bubble popped, credit lines on credit cards where slashed and even dissolved. Money lending by banks came to a halt. Many of the people with high debt are still trying to recover from the 2008 stock decline despite the stock markets reaching new all time highs.
2. Everyone should own some precious metals as insurance against fiat currency. This is the first time in the history of the world that the major central banks around the world are printing so much money at the same time. Currently, the Bank of Japan, Bank of England, Federal Reserve, and others are creating massive amounts of money simultaneously. When money is printed or created it will usually dilute the currency and create inflation in items needed for survival such as food and energy. This is precisely why gold, and silver have been used as money since biblical times. The people knew back then that gold and silver could not be printed or generated by a computer program with a click of a button. If there was a catastrophic financial event gold and silver might be what countries go back to and use as currency. Remember, history repeats itself and gold was the choice of currency for thousands of years.
3. It is important to own some land where you can hunt or plant crops. My dad was born during the Great Depression, but he lived on a farm. He told me, while the family did not have much money they always had a full belly because they lived off of the land. So if you can live in an area where you can hunt, fish, or farm you might have it easier than people who live in a congested city. Many people in the United States do not know how to be self sufficient, you will be much better off if you are.