Tuesday, January 10, 2012

Preparing for the Financial Crash

The Financial Crash--we know it is coming--the question is when, and what can we do to prepare?

Yes, that is right a financial collapse is coming--if you want to see how close it may be read the article on the side bar about the Asian Union--it is also listed in scripture as one of the events that will happen before the rapture--Seal 3. We know that the antichrist will be brought to the scene as the solution to the world's problems after the demise of WWIII, the financial collapse, and the worldwide pandemic. If the 70th week started on 11/10/2009 then the antichrist will arise later this year and take over the world in 2013. So if the assumption is true about the 70th week then I believe the worldwide financial collapse will most likely happen this year.

I have included a chapter in my book The Coming Epiphany about being prepared, which is linked at the sidebar. To double check my preps I emailed a friend, Roy, who I respect and asked his opinion. (Roy was used of the Lord to help me come to the realization of the fact that the rapture will not occur until after the sixth seal is opened and has also helped mentor me in the pre wrath view. He has a website called Prophecy Truths.) I thought others would benefit by hearing what he has written and as usual none of this is to be considered financial advice--just his opinion.

Actually, I have always modestly prepared for something like this (very modestly). There is no perfect preparation, since we do not know what will happen exactly and when it will happen in sequence. I also know from many modern words of prophecy through many others, that this economic crash engineered by man, will affect nations all over the earth. Their intent is to seize control (NWO folks). You (likely) cannot run away to a safe place and watch it all unfold from a safe distance. Therefore, your question is appropriate in a general sense--what can we do individually to prepare, knowing that each person's preps will be different than the next person's. And also realizing that we likely cannot perfectly prepare and ride out the whole thing unscathed.

As a licensed Certified Financial Planner (CFP) for nearly 20 years with an MBA oriented to Finance, my answer is couched in good planning practices vis-a-vis risk. I won't answer what I am doing personally.

There are 3 major groups by household financial assets.

A. modest income folks (most people in the USA struggling to get by)
B. middle income folks (have a good income but likely lots of debt too)
C. wealthy folks

For group A, their best preps would be to cut back on discretionary spending and obtain some real goods that will help them in a financial collapse. This includes some food stores, so that they can eat if retail stores are disrupted. If doesn't have to be expensive, since the food basics are not costly in bulk (some rice, beans, potatoes, veggies). Some who have the skills, will can veggies and fruit and have a storage that way.

Food, shelter and clothing are the bare basics (and water). If they have gardening area, then preparing it well and planting in 2012 is warranted, along with purchasing some heirloom seed packs. When they have the basics covered then maybe getting some silver coins of different types is a good choice, so that they have purchasing power in the future if the currency collapses (high or hyper inflation). However, real goods have always become barter items during an economic/financial crash, in every country.

For group B, they need to do the same things as group A, but with more assets and income, they can probably do a little more. Cut debt and lower spending ahead of time. Have some silver, and if they have higher assets maybe a few gold coins. With some saved assets, they can open a savings account in Norwegian Krona or Swiss Francs, to protect them from a dollar crash. There are a couple of Banks in the USA where one can do that. Norway has a surplus and saved national assets, so their Krona will almost certainly appreciate against crashing currencies. The Swiss Franc is a little less safe, but they have weathered wars OK as a neutral country, for many centuries, and were the currency refuge of choice.

Group C can do all the above, and likely also have a well-stocked refuge place far away from the high population centers. They can have gold and silver, and diversify some assets in safe currencies too. History tells us that most won't prepare, thinking their wealth will protect them, but it could disappear overnight (Bank crashes and stock market crashes and bond defaults). Just because someone is wealthy, it doesn't mean they have any more likelihood of coming through it OK if they don't prepare, as compared those in group A above who prepared as best they could given their modest capabilities.

In a currency crash/economic crash, real usable goods mean a lot and retain real value. The reason is that it is difficult to obtain them afterwards, even if one has a pile of gold or silver. These are storage foods, soap, sewing kits, heirloom seeds, guns, ammo, etc. Silver coins can be pre-1965 US dimes, quarters, halfs, etc. which contain about 715 ounces of silver per $1000 face value. One doesn't have to buy $1000 face value bags, they are sold in small amounts too, especially at coin shops. Those will be readily accepted during a crash, and a little less, the common silver 1 oz coins sold by the US, Canadian or Mexican government.

Silver coins are much more usable for survival in a crash, than gold, since silver's purchasing power more approximates the value of things a person might want to obtain. http://www.cmi-gold-silver.com/small-survival-gold-silver-coins.html

The thing to remember, is that during a crash, it is likely that there will be a Bank holiday declared by the president. During that time, the Banks will be closed and ATMs likely will not work. Therefore, having a modest amount of cash on hand is prudent. When the banks reopen after a week or two, generally the country's leader declares a devaluation of the currency (say 40 or 50%). Suddenly all money in the Bank buys less real goods, and many foreign made goods become very expensive. A 50% devaluation makes a person poorer, and therefore it argues against having large amounts of cash in hand at your home during the Bank holiday. It will be devalued. However, one can spend it during the Bank holiday buying essentials if possible, before they skyrocket in price. Cash is not king during a financial crash or hyperinflation. Rather, real usable goods are king.

So...the above is generally what I would counsel people. Of course one can be even more specific, but that specificity is by the individual, since each person and family differs on what is good for them.

Any of Group A, B, or C could also think about friends and relatives in rural areas, they might go to if they had to bail out of their home in the city. For some this is a possible option, and for many others, it is not an option. If so, then they will need to work with their neighbors to safeguard their little area in the city or suburb/subdivision.

Even very modest preps done beforehand, when things are available and inexpensive, will serve anyone well.

All that said, trust in God our Father and ask Him for guidance and help now,and when the crash comes. There are promises in the Bible about God's people prospering even when the world system is crashing around them. We should strive to be in that group of "God's people", whose hope and trust is in the Lord. And not merely hoping but standing in prayer on specific promises in the Bible which is how God our Father wants us live.

God bless and shalom, Roy

On retrospect I would like to add that after the antichrist takes over the world at the 3.5 year point that no one will be able to buy or sell without taking the mark--better known as the great tribulation. Preparing for that time would require much more extensive preparations than just preparing for a financial collapse.

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