What Argentina Can and Can’t Teach Us

funny-money.jpgI am fascinated by some of the stories of economic collapse, like Argentina in late 1990’s and early 2000’s. The bankruptcy of a previously rich country like Argentina holds a number of lessons for all countries, not the least of which is the United States. As the stock market veers precariously up and down and even Buffett says we’re in recession, the idea that our economy might collapse isn’t that far-fetched. So, what happens when an economy collapses, typically? Argentina can answer that question.

  • There’s a run on the banks,
  • Stock market stops trading,
  • Banks close and don’t reopen,
  • Employers close shop or disappear without paying employees,
  • Rich people get out of the country,
  • Cash becomes king,
  • Prices sky-rocket,
  • Unemployment goes through the roof,
  • Crime increases several hundred percent,
  • People starve.

Not a pretty picture, right? It’s an understatement. Take a look at this posting if you want to see the true horror of a collapsed economic system. Which brings me to my next subject: How do we prepare for a recession or a potential economic collapse?

Preparing For Tough Economic Times

Even if you have a job right now, the fact is that an economic down-turn means an increase in unemployment. If you don’t have a way to make income through your own skills or hobbies, you will want to start developing some now. One of the things that I found interesting about the first person account of what happened in Argentina is how some of the more notable and skilled workers left the country. People like doctors, dentists, lawyers, etc. all took off. You can expect the same thing. If your area is depressed, those with money will leave – making it hard to get medical and specialized skills. In that case, you will have to make due with what you have. When an economy collapses, it’s time to put on your survival gear big-time.

Economic Survival Kit

This is what you will want to have on hand:

Skills – Learn to sew, hunt, fix things, plant food, or even make paper. Any skill that will keep you marketable in a black market economy is going to help you survive. In a recession, it helps to make ends meet. In an economic collapse, it could mean the difference between living or dying or starvation.

Cash – Keep cash on hand so that if the banks close you can still have some power to buy items. Don’t think keeping your funds offshore helps much. In Argentina, many people couldn’t access their outside accounts because of problems with electric services and communications.

No debts – You may be wondering why bother to pay off debts if the system collapses? Well, because those without debt won’t have their mortgages foreclosed upon and/or cars repossessed. If you lose your home or your car, you are toast – the crime wave will eventually get you. Also, outside creditors from other sources may pop in to help those who aren’t already debt-ridden.

Food – Food prices will go sky high. If you have a stash of food, you are better prepared than most. If you shoot your mouth off about it, you can be sure to get some nasty visitors. Store it secretly.

Water – Store water in containers too. Services like water, sewage, electricity, gas, and more can go down when the economy gets walloped and no one is getting paid.

Survival tools – This can include cranked radios and flashlights, generators, wool socks and sturdy clothing, camping or solar or wood-burning stoves, hiking boots, bicycles, tools, you name it. If you think the stuff is expensive now, wait until the economy collapses.

Spiritual Survival Kit

If you want to really know how to avoid some of the problems that we might end up seeing if our economy collapses or degrades significantly, then you have to start learning how to be a Powerful Creator right now. It’s like learning how to swim before the tsunami hits. Why wait until the wave is right over you to try to find someone who can teach you to swim? Instead, start to focus on how to be Self-sustaining right now. That does include material happiness, but also more importantly, your spiritual perspective and mental alignment can greatly increase your chances of surviving terrible ordeals. If you begin to focus on how to bring the Divine into more focus in your life, when adversity hits you are infinitely better prepared than most. Miracles can happen. You will already be plugged into your Source of supply and you will already have community as part of your survival gear, ready to be implemented when you need it most.

*Image courtesy of Flickr Creative Commons license by idogcow

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