Most preppers have a vivid memory of the Great Depression of 1930s. Horror stories from that dark time serve as a stark reminder of just how quickly things can turn bad even in a country where people seem confident, wealthy, and secure.
The Great Depression is a great motivator to be prepared.
What if we were to remind that prepping is a good idea and what we should be preparing for?
Many economists believe another Great Depression could bring the world back to the chaos and poverty of the dustbowl era. Some even think it will happen this year.
Paranoid? Alarmist? They have too many evidence to ignore.
The Great Depression was technically four years long, from 1929 to 1983. It took the US GDP until 1940 to reach its 1929 level. And even then, unemployment was still at 15%. The Great Depression's aftermath was finally erased by the militarization and occupation of the economy in World War II.
Related: 8 Things to Avoid after the SHTF
Is a New Depression on the Horizon?
The Covid-19 pandemic shook the US economy and threw it into recession within days. The US GDP plunged by 31.4% in the second quarter 2020, one of the largest and most severe falls.
According to the National Bureau of Economic Research however, the 2020 recession was also one of the most short-lived ever. Officially, it lasted only two months. It was technically not a recession.
But there's more to this story than that. Although our economy has recovered well from the effects of lockdown, it is still in serious trouble. The government is also storing up more problems for the future. There are many moving parts, and if they don't align correctly, a depression could quickly hit.
Many Americans remain jobless. The unemployment rate was 5.9% in June 2021. This is a significant drop from its peak of 14.7% last April, but still a substantial increase from the 3.5% recorded last February. Millions of Americans, who worked 18 months ago, are now unemployed. The growth in employment seems to have slowed.
In the six months following the April peak, unemployment fell by 7%. However, it rose to 1.9% within the next nine months. Economists, who had been expecting a slight drop in unemployment, were surprised to see that June 2021 was slightly higher than May.
The government pays people to stay at home, despite the fact that unemployment in normal times would be considered a national scandal. The federal government offers $300 per month more assistance to the unemployed in many states. Regular unemployment plus $300 may be enough to convince you that you don't want to return to work if you are in a low-paying job.
Businesses need low-paid workers too, and this is slowing down our economic recovery.
Similar: Five Things Our Life Is Better Living Off the Grid
The Dangers of Inflation
All that additional unemployment benefit must be paid for and the government is printing money to pay for it. Also, the stimulus checks that were sent to all American homes had to be paid for. The government printed the money to pay for them. What about the massive “stimulus” or “infrastructure bills that the government is passing? The government will print a lot of this money, while borrowing the rest.
It is not a matter of creating or borrowing more money that makes the country wealthier, but it does make each dollar less valuable. People have to pay more to rent or buy vacant homes because there is a shortage. This causes inflation and weakens the dollar.
Imported goods become more expensive as the dollar weakens. Importing oil means that gas prices will rise. That is assuming you have the money to buy a car. We import many cars.
Related: What You Should Do If The Gas Prices Rise Above $5 Per Gallon
Imports become more expensive and domestic goods are less available. This causes prices to rise. Prices rise because employers have to pay higher prices for energy and raw material. Prices rise again due to rising transport costs. We can't purchase as many dollars, even though there are more dollars in our economy.
The government then passes laws that increase the minimum wage. This means that employers will have to increase prices even further. It all begins to feed off itself after a certain point, and inflation doesn't just rise anymore. Instead, it rockets like a rocket.
Debt
Our money supply is increasing by approximately a billion dollars per hour right now. The national debt is increasing so fast that if you take a look at it in real-time, the last five numbers are changing far too quickly to follow. We'll spend more on debt interest by 2025 than on defense.
In the 2030s, perhaps, debt interest may match or exceed tax revenues. To pay the interest on what has been borrowed, we will need to borrow or print more money.
But can we make it this far? Jerome Powell, the Federal Reserve Chairman, admitted on July 28 that inflation is increasing – and could rise further than what the Fed had anticipated. Inflation will spiral out-of-control if the government continues to pump new money into the system. It's already evident.
In just one year, house prices have risen 23%. Prices for used cars are up by 45%. Farmers claim that even the price of a bale hay has increased 20% over the past twelve months. All of this is pushing inflation higher, and the government might not be able to keep the lid down.
Smart preppers are ready for the next Great Depression.
What could be more terrible?
The Great Depression of 1929 was terrible , but it's much worse if one strikes now. The global economy was not as interconnected in 1929 as it is today. The weak dollar and rising inflation will cause the US economy to collapse. We can't afford a New Deal-style program that would get it moving again.
We are also more dependent on electricity and communication than our ancestors. Imagine a life without electricity.
You need to know how to get through the next depression. Is it possible to work without the internet Is it possible to access your bank account even if your mobile phone app is not working?
Last words
Preparing for the long-term is key to getting through the next depression. Because depression can last years, three months of food will not suffice. It is important to consider livestock and your ability to grow your own crops.
When looking at electricity production consider wind, water, and sun power. They don't depend on fuel that may become prohibitive.
We'll need many skills and tools to get through a crash similar to the 1929 generation. Are you ready for it?
Source: askaprepper.com
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The post The Mother of All Depressions is Coming by the End of 2021 appeared originally on Bio Prepper.
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By: TODD
Title: The Mother of All Depressions Is Coming By The End of 2021
Sourced From: www.bioprepper.com/2021/10/29/the-mother-of-all-depressions-is-coming-by-the-end-of-2021/
Published Date: Fri, 29 Oct 2021 09:02:37 +0000