The EVERYTHING bubble.
As preppers we understand this terminology because we keep our fingers on the pulse of economic depression and collapse. It is one of the most popular reasons to prep. Rightly so, as our economy is largely built on banking and trading.
Things like mortgages, credit cards, auto loans, business lending, and debit cards are what make the American economy work. Since we are the world’s largest consumer you could argue banks make the world work!
That said, it appears we have reached a point where small and medium sized banks are struggling to keep their heads above water. What happens in the US if small and medium sized banks fail all over the US?
I think the folks at ZERO HEDGE said it best in a recent tweet:
If the Fed does not contain the regional bank collapse, there will be another great depression. (Source)
Which Banks Have Closed So Far?
The 3 banks that have closed so far are Silvergate, Signature, Silicon Valley Bank.
You might have heard about Credit Suisse falling on hard times, too.
The global lender has had trouble for a very long time.
While Credit Suisse did not officially close it did get gobble up by the 3rd largest bank and investment group in Europe, UBS.
These banks failed because the FED is at war with inflation. No matter what story you hear you must know that interest rates had to be hiked to combat inflation.
In doing so this lowered the assets of banks all over the country and put banks in this kind of situation.
What Happens Next
There are currently 186 more banks that are on the very same path, without some type of government intervention. The problem is that large amounts of money above the FDIC insured deposit amount are being pulled out of these smaller banks.
The fear has taken its grip and people are looking at anything above $250,000 as a serious risk at the moment. Would they get their money back if the bank shutdown? When would they get it? In the case of SVB their uninsured deposits are supposed to be returned within 3-6 months.
While it might seem scary, I would recommend you keep all your insured deposits in local banks. These banks have to stay afloat in order for our economy to survive this. At the end of the day it will be up to the people to keep these small and medium sized banks afloat.
I wish I could tell you that 15 years ago we learned exactly what to do in a situation like this. We propped up banks in 2008 but it seems that larger banks and even our government are not having success holding these banks up.
How Do You Keep Your Money Safe?
The best answer to this is diversification. When you talk to people who manage money they often tell you to diversify.
Well, in more radical times the diversification is just different.
Taking all your money out of banks will tank them and the economy.
However, you can invest some of that money outside the bank.
If you want to put your money into things that will help your family through tough times, I recommend the following investments.
- Shelf Stable Food
- Gold Backed IRAs
- Nearby Land
- OTC Meds
Barter And Trade
Beyond taking your money and putting it in a new place, you must be prepared to change the way you do business in this nation. If we look ahead it becomes clear that we need alternative payment methods beyond cash and card.
Well, you can start that process now.
You can seek out people at your local farmer’s market or even neighbors and trade with them outside of the USD.
Do not wait until the banks close or the government tells us we have to use CBDC for all of our transactions.
Now is the time to develop a currency that makes sense in your life. That could be gold, silver, cash, junk silver, or sea shells if you want! You need a trade system that brings what you need into you home even in the face of a struggling economy.
Living Out The Crisis
We are now on the tracks to an unavoidable crisis which is a number of situations that are all happening at the same time. We cannot get off these tracks.
The western world is facing a massive financial crisis that reaches far outside the United States. At the same time, we are under the spell of zero emissions rhetoric that is also crushing economies and putting undo pressure on consumers at the gas pump.
The war is grinding on in Ukraine which is impacting everything from geopolitical stability to wheat prices.
Here at home we have a border that is broken and is leaking a drug epidemic into every corner of our nation. Criminals are more emboldened than ever, and we are struggling to fill the ranks of our police and military.
The question is: Where do you want to live out this crisis?
No matter how it all plays out I think it is important to understand that our hardship is far from over.
How are the people around you going to fair with such hardship?
Will it be total chaos? Do you have people you can trust nearby?
I think the time to answer those questions was in 2020 but here we are in 2023 and there is still time to move and make things happen. I do believe there will come a time when movement and freedom will become extremely limited. Keep that in mind.
We are watching the latest dose of reality hit the American public and the world at large. My biggest piece of advice is to get used to it. Get used to seeing things like this happen more and more.
We are on a trajectory to tyranny. That is either the motivation of these events or the way they are used after the fact.
Do you think it is a coincidence that The Federal Reserve Bank is launching FedNow, a service offered to depositary institutions that is faster, safer, and stronger, in May of 2023. This tool is literally designed to help banks avoid exactly what is happening to them now.
The tool will enable participants in the FedNow Service to transfer funds to one another to support liquidity needs related to payment activity in the FedNow Service.
This is not a drill, preppers. It is time to diversify your wealth and to get plugged into your own local supply chain. Do business in trade and barter, NOW. Soon it will all be in the Feds hands and your options will be gone.
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