Society’s Five Stages of Economic Collapse

truther 3

David Meyer
Shtfplan

Society as we know it will break down and collapse in a five stage process outlined here. While it can be accelerated by certain events like war, a natural disaster, pandemic, terrorist attack, or even an impending asteroid impact, history has shown that economic collapse will essentially happen in this five stage process. To survive the collapse, it is important to read and interpret the signs and understand what assets are important to the current situation so you can be prepared for the worst thereby allowing you to survive intact and with as little damage as possible.

STAGE 1. The Decay Begins

Everything is good and the economy is thriving. A high standard of living has been achieved. This is the way things should be. Goods are cheap and readily available. Everything seems to be in abundance. Stores are filled with retail items ready to be purchased. Life in general is good. The nation’s working infrastructure is solidly intact and working well. However, the idea that everyone is entitled to have what others have earned now permeates society. Redistribution of Wealth Policies are implemented and quietly woven into the fabric of society. Unchecked and under the guise of fairness and equality, these policies slowly decrease productivity and increase dependency on government entitlement and welfare programs.

Primary Assets:

  1. Career
  2. Home Value
  3. Savings
  4. Investments – Stocks and bonds
  5. Health Insurance
  6. Lifestyle Image
  7. Good Credit Rating for Debt Accumulation

STAGE 2. The Slippery Slope

The economy goes into a slow but steadily increasing decline. Unemployment is on the rise. Ever increasing numbers of people receive government assistance in one form or another. People are paid not to work. Government spending has increased dramatically. The price of gold, silver, and other precious metals rise to prices unheard of just a few years earlier. Inflation reaches the double digit levels.

Primary Assets:

  1. Cash
  2. Precious Metals, Gold and Silver coins
  3. Job Stability
  4. Elimination of debt
  5. Health Insurance
  6. Home Equity
  7. Automobile with good MPG
  8. Acquiring secluded land more than 40 miles from densely populated areas

STAGE 3. It is Going to Get Worse

The total collapse of the economy begins after a significant and prolonged decline. The government implements price controls. Shortages on essential goods become widespread. Foreclosed houses sit vacant and deteriorating by the tens of thousands. Middle class neighborhoods begin to look like slums. The government begins to print currency to pay its bills and support the tens of millions on public assistance. Inflation increases even more and unemployment exceeds 25%. Banks and businesses fail at ever increasing rates. Nobody seems to have any money. Many are now homeless. Labor unions instigate strikes, civil unrest, and large scale riots. Government services are interrupted and unreliable. Local and national infrastructure is in decay. Violent gangs begin to appear and assert themselves. The government begins confiscation of firearms from law abiding citizens. Violence is everywhere. Cities and urban areas become very dangerous places to live.

At this stage, the country seems pretty much beyond the point of no return. However, things can still be reversed even at this stage if the right person at the top really believes in the basic fundamental concepts of Freedom, Independence, Liberty, and Individual Rights and is not afraid to do what is necessary to reverse the current trend. He will be vilified and hated because of his attitude toward personal responsibility, cutting entitlements, and ending welfare programs. Of course, if the right person were in power and did what needed to be done, none of this would have happened in the first place.

Primary Assets:

  • Gold and Silver coins
  • Cash
  • Job
  • Automobile
  • Home
  • Short term food supplies
  • Short term fuel stores
  • Firearms and ammo
  • Plans to relocate to a secluded rural hideaway
  • Small livestock – chicken, rabbit, fish…
  • A close network of like minded people
  • Survival knowledge and skills

STAGE 4. The Grab for Power

The collapse can transition to this stage at any time after Stage 3. Most of the middle class have lost everything. What used to be well manicured middle class neighborhoods are filled with the carcasses of empty houses damaged and destroyed by vandals. The nation’s infrastructure has been seriously neglected and is in need of a major overhaul. The power grid becomes unreliable. Rolling blackouts are a daily occurrence. You can no longer buy or sell gold or own foreign currency. Inflation is out of control. Now the economy collapses. There is a rush for everything and the shelves go empty in a matter of hours. Society falls into chaos. The control of urban areas shifts when violent gangs takeover control of the streets and urban neighborhoods. The government issues restrictive measures in an attempt to control the economy. Everything is in short supply and heavily rationed. Food and gasoline is very expensive and there are very long lines to get them when they are available. Affordable quality health care is non-existent and your job is a distant memory. You will do without what you are unable to provide for yourself. You will discover what it is to live in a third world country.

Primary Assets:

  1. Relocation to the rural hideaway
  2. Firearms and ammo
  3. Long term food supplies (1 year minimum)
  4. Adequate fuel stores
  5. Security plan to protect the group and assets
  6. Trained dog for security
  7. A working knowledge of survival gardening
  8. Survival knowledge and skills

Once all of the above has come to pass, the realization of the current circumstances at this moment must be all too obvious. It is too late to prepare at this point. What you did not acquire earlier, you are not going to possess now. Anything of value necessary for your survival has already been claimed. The situation gets worse… much worse.

Stage 5 is next… and it is not pretty.

STAGE 5. Freedom, Liberty, and Independence is Lost

The government implements martial law. Fighting between civilians and government forces break out nationwide. Maintaining more than a 30 day supply of food is considered hoarding food and is illegal. Severe poverty and starvation become a common sight. The government offers marginally acceptable food, water and shelter in exchange for your Freedom, Liberty, and Independence. Democracy ends and a Socialist form of government takes over under the guise of fixing society’s problems with the false promise that peace and prosperity will return better than it was just a few years ago. A Totalitarian regime assumes power and the individual freedoms and liberties once enjoyed by the people are completely eliminated.

Primary Assets:

  1. Rural Hideaway
  2. Security plan to protect the group and assets
  3. Living below the radar in a community of like minded people
  4. Firearms and the ability to use them
  5. Guard dog for security
  6. Survival knowledge and skills
  7. A working and producing garden capable of feeding 150% of the group
  8. A stable supply of clean water
  9. Vegetable seeds for long term food production and barter
  10. The will to live and survive in a harsh political climate

As you can see, priorities change as the world changes. Your most prized assets of today – your good credit, luxury automobile, and career are no longer important after the economy collapses.

FAILURE TO PREPARE TODAY WILL INCREASE THE MAGNITUDE OF YOUR SUFFERING TOMORROW.

It is better to prepare 10 years too early than 10 minutes too late. Many who lack vision will say that it will never happen and for those who decide to live unprepared should consider the following statement.

LACK OF PLANNING ON YOUR PART DOES NOT CONSTITUTE AN EMERGENCY ON MY PART.

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3 Comments »

  1. Jason Feather June 19, 2012 at 7:01 pm - Reply

    This was hilariously naive thanks for making me laugh

  2. James M Nunes March 3, 2012 at 1:21 am - Reply

    Elliminate excess parasitic profits and usury interest rates. Profits earned without work or effort. Enforce anti trust laws to break-up corporate monopolies too create a envirement of competiton. Reintroduce the Glass Steagal Act too regulate the banks. Limit comodities futures contracts and increase the margin requirements on the comodities futures exchanges. Amend NAFTA and GATT replacing them with bi-latteral reciprocal fair trade agreements. Increase taxes on goods that are produced off shore and lower taxes on goods that are produced domestically.

    Abolish the Federal Reserve and restore monetary authority to the U.S. Treasury to create and extinguish honest debt free money based on a 3 legged stool of precious metals, barter exchange contracts and labor treasury certificates for work performed, goods produced and services rendered. International trade and balance of payment could be conducted with barter exchange contracts. For example; A bushel of wheat for a barrel of oil. Thus no trade deficit, no debt.

    Pass a relauation bill limieting paper currency debts to 1% of their gold dollar value of $2,000 an ounce, reevaluating the currency and issuing new currency at a 100-1 exchange rate, pro-rating all prices, incomes, debts and charging a 10% exchange rate fee to pay down the legitimate debt.

  3. Niaz Ahmad Khan March 2, 2012 at 11:36 pm - Reply

    SUMMARY

    HOW TO REVERSE WORLD RECESSION IN MATTER OF DAYS
    A Method to Address Economic Recession, Remove Poverty, Terrorism, Improve Law and Order, Reduce Drug Abuse, Inflation And Taxes in an Interest Free Based Economy.

    By: Dr. Niaz Ahmed Khan, FRCS, PhD

    ABSTRACT:
    I have developed a new financial instrument which will be much more valuable than the bonds or the treasury bills government sells in the open market to raise much needed funds to run the country. These are all interest based instruments and can only be used by institutions. The instrument I am proposing is without interest and will be used by everybody to purchase goods and services in the government and private sector resulting in up to 60% discounts. This is why these will be massively bought up front in large amounts in the shortest period of time of one month to run the country for at least a year and much more by the end of the year.

    SUMMARY OF THE BOOK:
    The world is facing many challenges with no solution in sight.
    The main cause of all these ills is the POVERTY. Float bonds which can be used by everybody rich or poor and are not debt to the state so there is no question of interest.
    How: Take the example of USA which is going through a great recession.
    USA borrows money by selling treasury bills and the interest based bonds. The suggestion is to sell these bonds on non interest basis.
    1. Buy all goods and services under govt control with these bonds and these bonds will replace dollar with bonds.
    2.10 million duty waved off.
    3.100 billion dollars prize draw from the bonds held by the public every day.
    4. At least 100 % return on purchase of bonds worth 100,000 dollars within 30 days and much more if one waits .
    EXAMPLE: ONE dollar buys 5 bonds on the condition that the amount should be $100,000 or multiple of it. Fewer amounts will get the rate of four and three. This massive discount period is only for first month at the start of the implementation of this system. In the second month the rate will be 4 but the rate of 3 will apply to subsequent months for the same amount.
    WHERE THESE BONDS WILL BE USED?
    1. All state controlled services and commodities.
    EXAMPLE: A bill of (any service or Commodity) $100 can be paid with 200 bonds and there will be no exception to this rule. A NET DISCOUNT OF 60%.
    A simple formula will apply: Total bill in dollars x2 is the number of bonds surrendered. Price in bonds will not be less than the cost price but without the direct indirect taxes and the duties which are added to the present cost to make it very expensive.
    It will attract at least 50 million people to take this opportunity as early as possible. And if one is sure of making 100% profit within 30 days there will be many more that will help themselves.
    RESULT: Government gets at least $5 trillion within a very short period of time of few days and much more in the rest of the year. THIS IS NOT A DEBT AS STATE HAS SOLD BONDS (Commodity) WHICH IS AN ALTERNATE CURRENCY AND DO NOT CARRY ANY INTEREST. One immediately thinks who will bear the loss and this loss to the state will not be more than total year budget of $2.5 trillion which it collects in one year with all the taxes and the duties but the bond price is simply a cost price without any kind of tax or duty. So there is a net gain of approximately 2.5 trillion within a short period of time. First floodgate of money has been opened.
    WHO WILL SELL THESE BONDS?
    State will float tenders to select a private agency (USMF) UNITED STATES MONITORY FUND JUST A NAME GIVEN TO THIS ORGANIZATION with the lowest bid WHERE AS second, third and fourth bidders will be auditors of USMF. This agency will employ at least 20 million unemployed on 10% commission basis and without any salary. These agents will have to pay $500 as an annual fee to USMF in order to build the infrastructure for the sale of bonds. Agents’ quota will be $300,000 per month or they will be allowed to sell their whole year quota in one day or in a month. This will only materialize if the agent shares his commission with the buyer. Greater the share of commission quicker the sale. The investor or a buyer will sell these bonds at the same rate of 5 per dollar and his bonds will sell like hot cakes every day as there is no condition of the amount of money to purchase the bonds. In this way even the poorest person will get the same or near the same rate as the investor earns a profit from the commission which he takes from the agent and makes almost 100% profit by only investing $100,000. He will sell these bonds repeatedly and will keep almost 6% profit every day till the demand lasts. NOW THINK HOW MUCH FUNDS STATE HAS ACCUMULATED Much more than few years budget in matter of only one month.
    FLOOD GATES OF MONEY AND TURNING POINT
    This is the second flood gate of money and there are still four more floodgates of money yet to open. So at the end of 30 days or even much earlier the government declares tax free country for ever. With the removal of all kinds of direct and indirect taxes and duties the price of oil electricity telephone and of all other services under government control is now almost 60% less than before as these are being purchased by bonds (which is the cost price) and not with dollars. The production cost of everything has come down tremendously.
    SECOND OPTION
    STATE ALSO OFFERS 10 MILLION DUTY FREE IF ONE DEPOSITS $100,000 NON REFUNDABLE. THIS BRINGS OUT ALL THE BLACK AND SPARE MONEY WHICH STATE WAS NOT ABLE TO GET BEFORE AND AS THERE IS NO TAX AND HENCE NO TAX EVASION SO ALL THE MONEY IS WHITE AS IT IS BEING GIVEN TO GOVERNMENT.
    This was the third floodgate of money which is even bigger than the first one and the exact amount is impossible to asses unless the system is implemented.
    In order to provide cheap bonds throughout the year government offers three types of registration fees.
    1. Pay $100,000 in the start of the year and get the rate of 5 for the rest of the year and this will suit the professional’s and salaried person’
    2. Pay $10,000 yearly and get 20,000 new bonds at the rate 5 every month but one has to collect 10,000 bonds (equal to fee) to get this cheap rate throughout the year. Higher the registration fee more the entitlement of cheap bonds. This registration will suit any small time business who will sell his product cheaper provided 15% bonds are also paid with rest of cash money by the customer SEE THE NEXT REGISTRATION FOR FURTHER EXPLANATION OF15%BONDS. This will apply to all goods in private sector and does not apply to the government sector. This is a big incentive to accept bonds in the private sector as the business accepting more bonds will have more business than the trader not accepting the bonds so the bonds market will multiply and there will be a constant need for bonds in the open market.
    3. Third type of registration will be of $100,000 which will entitle the business to sell its products through USMF. The value of merchandise sold through this source will help the business to get the 5 bond per dollar rate or opt for the duty free option equal the amount sold. But with one condition of surrendering 15% bonds at each sale in dollars.
    EXAMPLE:
    MERCHANDISED SOLD THROUGH USMF $1000. BONDS SURRENDERED 150 ARE DEPOSITED IN STATE ACCOUNT TO BE SOLD AGAIN SO THE CYCLE OF BONDS IS ESTABLISHED .A receipt of bonds surrendered is obtained from USMF for evidence of sale of merchandise and this receipt will entitle the traders to get cheap bonds or the duty free option throughout the year BUT THE SAME RECEIPT CAN BE USED ONCE ONLY.
    WHAT IS THE BENEFIT TO BUSINESS?
    1. CHEAP BONDS THROUGH OUT THE YEAR
    2. DUTY FREE OPTION WILL HELP INDUSTRY.
    3. The quota which can be sold is ten times the amount of Registration but not more unless the registration fee is increased. Now all the business will opt for this registration in order to reduce the cost of production. These 15% bonds the business will get back through a chain of dealers sub dealers and ultimately the customer will pay this bond portion as he will get the end product very cheap because of tremendous cut in the cost of production by the factors already mentioned. This will replace the GST or the VAT or the two price system seen all over USA. Almost everybody will sell their product through this channel as it will be much costlier to sell the product outside this system as cheap bonds are not available otherwise.
    According to rough estimate at least $10 trillion transactions are carried out every day in US and at each transaction 15% bonds are being surrendered, the price 15 bonds is $3. So 3% of 10 trillion will be $300 billion which goes into government account without any compulsion every day (UNBELIEVABLE). This is the fourth floodgate of money AND IS CALLED THE GOLD MINE. Now the state is sitting in the driving seat and all the money in banks of private sector has been transferred into government account and banks are no more the lenders but are borrower from the state which is the only source left and will invest in business with sound feasibility study checked by the state bank. The state will offer to invest 80% and the bank will bring investor who is willing to pool rest 20%. This 20% will be deposited in the bank and the bank will oversee the running the business, running expenses will be given to the investor from its share of 20%. There will be no collateral and share of the profit and loss will be shared in the ratio of 60 and 40. The bank will share the 60% with the investor and 40% will go to state funds and the state will provide everything under its control below cost which will farther reduce the cost of production and at the same time will MARKEDLY improve the profit margins OF ALL THE BUSINESSES. No major business can refuse this offer. Any bank showing repeated loss will go out of business as there will be no more funds available from the government source and all other interest based sources are not available any more. Interest based banking is gone forever or it may be at a very small scale and the state will not offer loans on interest as these are not any more profitable and risk free as there is no collateral. The amount of profit government will share will be unimaginable and this is the 5th flood gate opened.
    THEN WHY NOT INVEST ON PROFIT AND LOSS SHARING BASIS
    Last but not the least government will acquire all the land on lease without any force and will provide all the needs to the formers THROUGH CORPORATE FARMING SECTOR HIRED BY THE STATE below cost and will become the shareholder according to the mutual contract with the land owner this is the 6th flood gate of money opened.
    DRUG ABUSE ELIMINATED
    When all the possible land is being cultivated by best agriculture engineers there will be much better yield and much more profit to land owner then who will not join hands with the government.
    THE OBVIOUS BENEFIT WILL BE NO MORE POPPY CULTIVATION IN COUNTRIES WHICH ARE POOR AND LARGELY DEPEND ON THE POPPY CROP. NOW THERE IS NO MORE POPPY AND NO MORE DRUGS.
    All the above claims have been proved to be true except the terrorism.
    HOW TERRORISM WILL BE ELIMINATED?
    We have to look at root cause and it is POVERTY and NOT the religion which is being falsely blamed. The going rate for a suicide bomber is $1,000 in Pakistan, Iraq and in Afghanistan. Can one believe that anyone having at least two meals a day will blow himself? Never the areas of the countries where these attacks are happening are extremely poor and the extremist elements who themselves are or were poor exploit these very poor people to carry out attacks for money to save their families dying from hunger and this is an open secret. Extreme elements has large force that is recruited from poor areas as there in no job anywhere and they provide these raw recruits with only food and shelter and at same time brainwash them and train some of them to carry out these attacks by giving them enough money in their lives to support their dependents. You might mention few isolated cases of being well to do and still carried out these attacks. Once the poverty is removed in these areas by implementing this system these attacks will come to an end immediately. This system is not only meant for USA but will be easily applicable to every country.

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