Economic Collapse: How To Prepare for the Collapse of the Dollar

The United States currently owes more debt than ever before, and economists fear a point of no return. The U.S. won’t be able to repay their debt, the economy will crash.

Shocking reports show that more than 3/4 of Americans live paycheck to paycheck. Less than fifty percent of all Americans could survive 6 months after a major life event crushed their finances.

DIY duct tape wallet with dollar bills inside

People are unprepared for what is coming. They are either apathetic or refuse to admit the likelihood of a worldwide economic crash.

We all need to make most of the resources we have regardless of how limited or plentiful they are at any given time. Natural disaster events and other hard times are unpredictable and good times don’t last forever.

If you thought the financial collapse of 2008 and the subsequent Great Recession were bad, it was just the tip of the iceberg. A more severe event is about to hit us, and it could be sooner than you think.

Could you forgive yourself if you didn’t prepare and had to watch your family slowly run out of food and supplies?

What Does it Mean When the Dollar Collapses, Anyway?

Before we go on, let’s define what we mean by ‘dollar collapse’. A dollar collapse is when the value of the US currency plummets significantly. This could be due to any number of factors, alone or together, but is typically caused by an intersection of related (and sometimes unrelated) things.

But whatever the cause, a dollar collapse will have serious implications for everyone who depends on the currency for their livelihoods and investments. This, of course, means you!

When the dollar crashes, its value is greatly diminished and that means that it is not worth as much. However, often we see the cost of goods and services increase in relation to the drop in value.

This is due to the fact that people are not willing to part with their shrinking assets so easily and seek higher prices for them. In other words, inflation will usually become rampant and cost of living increases drastically.

Together, a dollar or other currency collapse will set the stage for a legitimate economic crisis. It is possible to prepare for such a crisis, but you must increase your financial IQ and take real action toward securing assets that will insulate you from the worst of it. More on that in a minute.

Recent 20th Century Declines in the Dollar’s Value

I get it. We’ve all heard enough dire predictions and apocalyptic prognostications to last us for one life. But in the case of a US dollar collapse this is not theory: it has happened before, with disastrous results, and will happen again.

Aside from that, many serious recessions and depressions have happened all around the world in the 20th century alone.

But forget about that for now. Below are some examples of a sharp decline in the value of the US dollar just in the past 5 decades:

1970s: In the 1970s, a combination of disruptive events such as the oil crisis, mounting inflation, and expanded government expenditures caused an alarming devaluation in the US dollar’s worth. The dollar was eventually devalued by more than 8%.

1980s: Throughout the 1980s, the worth of America’s currency plummeted due to a variety of factors including “proactive” responses from the Federal Reserve in order to battle stagflation; an economic combination consisting of high unemployment and hyperinflation.

2000-2005: In the early 2000s, a severe devaluation of the US dollar occurred, caused mainly by the dot-com bubble and the aftermath of the 9/11 attacks. As a result, the worth of the dollar declined sharply, upwards of 25% in combination with other market factors.

2007-2010: The Housing Market Crash. AKA “the bubble burst.” The value of the US dollar declined again in the late 2000s during the global financial crisis. Investors pulled the plug on real estate investments and the Federal Reserve once again implemented expansionary monetary policies.

2020+: In the wake of the mysterious global virus and governmental restrictions designed to curb its spread, fewer people are traveling internationally, causing a noticeable drop in demand for US dollars around the world.

Furthermore, to bolster an economy struggling from this pandemic-related downturn, The Federal Reserve has attempted to boost financial activity through monetary policy adjustments – an effort that may have “inadvertently” put further downward pressure on our currency’s value.

Plus, there were…

  • 2015 Chinese stock market crash,
  • 2014 Russian Financial Crisis,
  • European Debt Crisis 2009-2019 ,
  • Asian Financial Crisis of 1997,
  • Black Monday in 1987.

Many other countries have experienced a debt crisis in the last decades including the Greek government, Portugal, Venezuela, Ukraine, Turkey.

Strengths and Weaknesses of the US Dollar

Every currency, even fiat currency, has strengths and weaknesses that clever people can learn to maximize and minimize respectively to keep their financial health strong and their assets protected.

Here are a few fundamental pros and cons concerning the almighty greenback:


Legacy of Acceptance: The US dollar is widely used and accepted around the world, making it easy to use for domestic and international transactions, including conversion to other currencies or assets.

This means it is easy to buy and sell and is often used as a means of exchange in international transactions.

Stability: Investing in the US dollar is often regarded as a wise decision for investors at home and abroad due to its general stability, given America’s steady and reliable political system and economy.

A low-risk currency choice, investors know that their investments are safe from market fluctuations or other unpredictable occurrences and so the strength of the dollar is considered secure.


Increasingly Vulnerable to Inflation: Over the long run, inflation can diminish the value of US dollars by continually raising prices for goods and services.

Dependent on US Economy: The US Dollar is intrinsically interlinked with the health of America’s economy; if conditions in the country worsen, so does the value of its currency.

Vulnerable to Political Volatility: Political instability or fluctuation in the US can result in a devaluation of the dollar, as investors may be unwilling to risk their money by investing into an uncertain economic landscape.

The symptoms of Economic Collapse

The Financial System as We Know it Will Crash

  • Bond and stock markets will collapse as panic selling causes abrupt, dramatic price declines.
  • Widespread asset deflation when houses lose their value and banks write off bad debt in the trillions.
  • Sky-high inflation will grip the economy, followed by possible hyperinflation of commodities such as gas, food and livestock.
  • Major currencies such as the Euro and the US Dollar will crash like dominos.
  • Secondary, less predictable events may include a spike in unemployment, travel restrictions, severe economic depression, protective tariffs and currency controls.

Lawlessness Will Govern the Land

The overriding issues during an economic breakdown are increased activity including dangerous rioting, and looting.

Law enforcement officials will have little control over the pockets of violence that are likely to break out in the streets. Martial law may be enacted across the nation.

  • As anarchy becomes the new reigning power, you’ll need to prepare a defensive strategy to protect yourself and your preps not only from looting strangers but from looting neighbors.
  • Never assume that your area won’t fall into lawlessness – always expect the worst.
  • Keep your BOB on hand, plan escape routes, and locate safe havens. The best plan is to avoid confronting a mob: it is better to keep your distance than to risk losing in a fight over supplies.

Food Shortages Will Be Prevalent

Food shortages are inevitable in an economic meltdown. The food industry operates on very small profit margins and can only survive when invoices are paid quickly.

As extreme inflation cripples marginal businesses, including suppliers, wholesalers, and retailers, payments will be delayed and then cease. As inflation persists, more businesses will fail, and food will become a scarce commodity.

  • Grocery stores only stock about three days’ worth of food at a time. If currency still holds some value, people will stampede to the local supermarkets and buy as much as they can. After that, shelves will be raided by looters and empty out in no time.
  • Start stockpiling early. Make enough space to store freeze-dried meals, canned items, and dry goods. Check to ensure that the temperature and humidity requirements on your preps match the climate of your storage space.
  • Keep a balanced stockpile of nutritious, mineral, and energy-rich foodstuffs. You’ll need to ensure that your food contains enough protein, vitamins, fats, minerals, and carbohydrates to keep your immune system strong and your energy levels up.
  • Many preppers make the mistake of stocking up on high-calorie foods and neglecting those with crucial vitamin and mineral content. Your body cannot afford to suffer a deficiency, so ensure that your stockpile contains enough iron, magnesium, calcium, and vitamins.
  • Carbohydrates are essential to survival because they contain valuable energy needed to keep you physically resilient. Rice, flour, grains, pasta, and nuts have long shelf-lives and are very versatile.
  • Salt is a wonder-ingredient for curing beef, preserving fish, and adding flavor to otherwise bland dishes. Plus, it never goes bad!

Maybe you do have some food stockpiled and a way to cook without power. So, imagine you are, home and getting ready to sit down to eat during a SHTF scenario.

Suddenly, someone bursts in through your front door, waving a gun and demanding that you give him all your money and your supplies. What would happen? How would you make it if you were forced to give away some or all of your supplies?

Prepare for Economic Collapse (2019)

Here’s How You Prepare for an Economic Collapse

1) Reduce your Expenses Now

The smaller your financial footprint, the better off you’ll be in a crisis, and the more resources you’ll have at your disposal to get you through the worst of times.

Conserve Electricity Now

This not only gets your family in the habit of using electricity only when needed but it will reduce the amount you pay out monthly toward electricity costs.

Practice recycling, upcycling, and composting

This way your family will produce the least amount of garbage possible. See if you can eliminate the need to pay for garbage collection.

Save As Much Money As Possible Now

Instead of buying that new car or taking that luxury vacation, repair your current vehicle and take a vacation that costs less so you can save that money.

Look for Ways To Cut Back on Other Monthly Expenses Too

Consider alternate companies for car insurance, cable TV, your cell phone plan, even your utility distribution companies. Any little discount you can get on your monthly bills now should then be used to pay down credit cards and other debt.

Stop Eating Out

Cut back on those little luxury and convenience items that we often don’t think about or even count in our budget.

Those doughnuts after church on Sunday morning or that coffee every morning at McDonald’s before work or the trip to Taco Bell after soccer practice because you didn’t plan a meal and it’s late.

All of those little expenses add up over time. Start cutting them out now and use that extra toward paying down debt or savings.

2) Find Ways to Increase your Income

Start a side business

You’ll need an immediate source of income, so consider whether you can generate cash with a home-based business.

Choose something with little to no startup costs. If possible, choose one which allows for you to legally deduct prepping expenses (such as survival gear purchases) from your small business’ takings.

Thoroughly Go Through Your Home and Belongings

If you own things you aren’t using frequently, consider selling those items. Items you sell will bring in money that you can put into savings, or use to buy supplies or pay off debt.

Learn How To Barter

You may as well melt down your plastic when disaster strikes, because credit and debit cards are likely to stop working during an economic crisis.

Instead, learn the age-old art of bartering and start doing using it before SHTF. Being able to barter for some items means you can use the money you would have spent on those items on something else.

3) Become Self-Sufficient

When SHTF, systems that we depend on now will cease to exist. Survival won’t be a matter of going to the grocery store to buy food or turning on a faucet to get a drink of water.

In no time at all, the services we count on to survive now will disappear and that includes things like doctors, pharmacies, and public utilities.

Start Stockpiling Supplies

Your stockpile should include non-perishable food, adequate fuel for your vehicle, firearms and ammunition, anything that you currently use every day to survive.

Make Sure to Have a Reliable Water Supply

Including not only bottled water but also a plan to get water if public utility systems or your electric powered pump fails.

Learn to Grow your Own Food

Start practicing your gardening skills now while you have time, so that you can master them and immediately begin bartering your crops post-collapse.

Keep Medical and Personal Hygiene Supplies on Hand

Things like bandages, antibiotics, and toilet paper will be the first things to disappear from store shelves. Stockpile these now to save you inconvenience later.

Prepare a Bug Out Bag

This is necessary to have in case you are forced to leave. I have a comprehensive list of essentials in this article.

4) Get Out of Debt

The global financial system is approaching crisis mode. In a situation like this, it’s best to ease your financial commitments.

This means getting rid of debt. The last thing you need when SHTF is to have a mob of debt collectors knocking on your door.

Use Money You Save To Create an Emergency Fund

An emergency fund should cover at least six months of expenses. Every dollar saved is $1.25 earned because savings are not taxed. Keep your fund in several different locations, including some hidden in clever places around your home.

Pay Off As Much Debt As Possible

Take that money each month and put it into savings. Use an app such Acorn to round up purchases to the nearest one dollar and automatically put that change amount into a savings account. You won’t miss less than a dollar at a time and you can build a savings account up quickly.

Stop Using Credit Cards for Unplanned Purchases

Research and adopt a cash only system for as many purchases as possible. Don’t close your accounts, just put the cards away and don’t use them until your debt is under control and you know you can pay the purchase off quickly.

5) Get Educated and Stay Flexible

Stay Up to Date on Survival Knowledge

You need to learn survival skills such as gardening, basic farming, self-defense, and first aid. Medical professionals will be scarce so learn about natural remedies for common ailments and prepare to provide first aid surrounded by chaos.

Prepare Yourself Physically and Mentally

You’ll need to be at peak fitness when SHTF. Try to spend less time sitting on the couch watching TV. Condition yourself for a life in harsh conditions, where finding food and physical labor are daily tasks.

Train Your Mind

You will need to have a clear mind to deal with difficult situations calmly and rationally. Remember that the life of the survivor is devoid of comforts and luxuries.

Identify Your Strengths and Weaknesses

Review all your opportunities and threats carefully and then formulate a plan to address them now before SHTF.

Make Sure You Have Proper Insurance

Find out which types of disasters are common in your area and make sure you have adequate insurance coverage. Don’t assume that your home and property or car will be covered in a natural disaster.

Many people have been victims of a flood, fire, or other natural disaster and didn’t realize their home wasn’t covered until it was too late. Call your agent and discuss possible scenarios and add any insurance you may need to have.

6) Get Some Land

After you have your emergency fund and have paid off debt, considering buying a piece of land in a rural or out of the way location. Use the land as either a bug out location or as a future permanent residence.

Carefully consider any land purchase to ensure that it will be enough to sustain you and your family when SHTF.

You will need to be able to grow your own food and have a reliable source of water, such as a year-round creek or spring. An adequate section of wooded area is great too so you can harvest that for fires and building projects as needed.

Any land that you purchase should be as remote as possible. It should be located at least 7-10 miles from any major highway or interstate.

The average person can walk 5-7 miles, in a SHTF scenario you want to be at least that far away from crowds of people who may be stranded, desperate, and trying to find supplies.

7) Stop Relying on the Dollar

Buy Precious Metals

Gold and silver are used to hedge against hyperinflation. In fact, the value of gold can even increase during economic crises, so have on hand some shiny hard assets in small, tradable denominations.

While federal reserves around the world are printing worthless paper money, you’ll have gold or silver to use as legal tender.

Other hard assets which hold their value during a collapse include livestock, gas, oil, and crops. While paper money will become worthless, these items will never lose their value. It’s better to buy these while times are good, because prices will skyrocket when SHTF.

Distance Yourself From the Affected Currency

During hyperinflation, your currency will rapidly depreciate. Consider moving your cash to offshore accounts where the foreign currency is more stable.

Consider Alternative Energy Methods To Power Your Home

If you own your land and it’s in a remote location where looting won’t be overwhelming, using solar or wind systems to power your home can be very beneficial now and lifesaving when SHTF.

8) Networking

Suicide, mental health issues, use of anti-depressants, tranquilizers, and sleeping pills all increase during an economic crisis. Alcohol and drug use skyrockets.

The loss of jobs, homes, and income takes a massive emotional toll on people. Sudden financial insecurity can make anyone feel depressed, anxious, and hopeless. The additional fear of becoming a victim of violence, and looting only makes things worse.

  • Keep your family environment as healthy as possible at all times. Solid family bonding provides emotional stability for kids and adults alike.
  • Talk about things. Explain the current events to your kids, because they’ll hear about it anyway and it’s best if they learn about it from you first.
  • Seek support from your partner. This provides emotional intimacy and a safe space to discuss fears and feelings about what’s happening around you.
  • Take part in a recreational activity. Doing something you enjoy, even if it’s taking a brisk walk, working out, or preparing a nice meal, activities like this will not only keep you fit but will give your morale a boost.
  • Get enough sleep. Sleep does wonders for rejuvenating the body and mind.
  • Know which neighbors you can count on and which ones you can’t. Find like-minded people and develop bartering relationships before chaos runs high.

9) Reuse and Upcycle

My dad’s mother, who lived through the Great Depression, was always really good at reusing and upcycling pretty much everything on a daily basis.

That tin foil that covered the turkey as it roasted? It got torn into squares and used to wrap up leftover turkey or to wrap a turkey sandwich in my grandfather’s lunchbox when he went back to work.

Because they lived during the Great Depression, when everyone struggled financially, my grandmother’s generation and many of their children (Baby Boomers) are good at reusing and upcycling.

They grew up with very little and thus to get by everything had to be used to its limit before anything new could be purchased.

  • Save and reuse things that come into your home such as cardboard, tin foil, plastic take out containers, toilet paper, plastic bags and paper towel tubes.
  • Collect free stuff such as condiments, trial samples, and free giveaways from hospitals, hotels, and other hospitality companies.

10) Develop a Keen Eye for Good Deals

The ability to find a good deal is a skill that our ancestors had no choice but to perfect. To prepare for an economic collapse, you can develop this deal finding ability too. The better deals you can get, the more money you can save toward something else that you may need.

  • Visit yard sales and flea markets in search of high-quality items that other people no longer need or want and thus will sell cheap.
  • Track the sales at your local food and supply stores. Most stores have a cycle for sale items. Once you know the cycle for your area, you can figure out how to wait to stockpile on items until they go on sale again.
  • Consider buying food and supplies in bulk if the pricing is better and it’s an item that you know you will use over time.

11) Diversify Your Income Streams & Portfolio

For as long as I can remember, the way to be successful was to get a job at a great company and work there until you were eligible to retire with a pension.

My parents and their parents prioritized loyalty to their employers because their goal was to retire from the company with a pension. The world just simply doesn’t work like that any longer.

In order to prepare for an economic collapse, you need to diversify your income sources. Don’t put all your eggs into one basket, so to speak.

You can work a part-time or full-time job if that’s your thing, but think of other ways that you can supplement your income.

What would you rely on if your company job suddenly disappeared? That would happen in an economic collapse.

Here are just some of the ways you can diversify your income to prepare for an economic collapse:

  • Learn and practice a trade skill other people will need after a collapse, such as carpentry, plumbing, or blacksmithing.
  • Start your own business in an area that will still be needed after an economic collapse, such as baking, landscaping, midwifery, or alternative medicine. The freelance industry is booming right now so it’s a great time to strike out on your own and doing so now will mean you build a client base before SHTF that might help you survive afterwards.
  • Diversify your portfolio so that in an economic collapse, you can avoid losing everything at once when a specific industry goes bankrupt.

Or, you might consider making your side hustle your full-time job for the duration of the crisis, especially if it is something that is evergreen, and typically survives economic downturn.

Cutting lawns and landscaping is a good example. Some people who are crafty might make small goods or offer services that save people money.

A good friend of mine once had to turn to making handmade pistol stands during a period of job loss in a bad economy, and did so well at it that it actually became his full-time gig that he continues to this day.

Consider offering handyman services to people in your neighborhood, especially the elderly, infirm or people who lack such skills.

People probably will not be investing in serious home renovations during a time like this, but everyone always needs fences painted, gutters cleaned out, weeds pulled, doors trued and a dozen other small but challenging tasks completed.

Internet-based businesses and money-making ventures can be ideal in times like these since they have so little start-up cost and will not require you to leave your home.

You could do things like writing, consulting, coding and more all from the comfort of your desk chair.

One of the smartest possible plays you can make is to get an education and certification in a field which is considered essential by both the citizenry and the government during times of economic collapse, since money will always seem to continually flow to these sectors right up until the bitter end.

Hands-on medical professions are a great example, as are any jobs working for electrical utility companies, gas companies, power plant operation and similar infrastructure-related jobs.

If you are fortunate enough to be working in a government position, rejoice, since chances are it will be extremely difficult to fire you in the first place.

12) Earn Money from Homesteading

If you have or are planning to own a homestead, make sure you consider ways that you can earn money from homesteading which can supplement your main income and serve as a fall back if your job disappears.

  • Raise and sell livestock to other homesteaders
  • Butcher and sell meat to consumers who want to eat organic
  • Start a garden co-op with relatives or neighbors.
  • Operate a worm farm and sell bait to those who want or need to fish
  • Start a seed sales business
  • Raise chickens or other poultry and sell the eggs
  • Grow an orchard or plant berries for a U-pick business
  • Become a beekeeper and collect and sell honey
  • Split and sell firewood

13) Live Every Day As if the Economic Collapse Has Already Happened

When the financial banking crisis of 2008 happened, very few, if any experts predicted it. There was no advance warning.

There was no time to get your financial ducks in a row. So live each day as if the economic collapse has already happened.

Save Up Cash

Challenge yourself to save up cash for new purchases, instead of going into debt for it. Better yet, make what you have work and put the money you would have spent into your preps.

Negotiate Barter Agreements With Neighbors and Relatives

Bartering for at least some of the items you need will help you save your cash for necessary new purchases or for your economic collapse fund.

Having a bartering system in place pre-SHTF will also make bartering easier once an economic collapse occurs.

Learn How To Make Your Money Work for You

Most people who can reach wealthy status, do so because they figured out early on how to make money work for them. They invest in a porfolio, they invest in innovative companies, purchase land, etc.

The looming breakdown of our financial system is a confirmed threat to our society. You need to stay ahead of the game, anticipate disaster, and make sure you’re well-prepared to handle it.

Don’t put off until tomorrow what you can prepare for today. Maintain your skills and grow your knowledge daily, as these skills could save your life.

How I'm Preparing For Economic Collapse

How Can You Profit from the Dollar’s Collapse?

Prepping is good, but why just survive, when you can thrive?

Hear me out: in every single economic downturn, in every single recession, depression and crash, fortunes have been made by the prepared, bold or just lucky. You, too, can stand to profit from the collapse of the US dollar if you know what to do.

The most obvious way to protect yourself from a falling currency is by diversifying your assets. Investing in other currencies, commodities or stocks can slow the inevitable loss of value that comes with holding just dollars, allowing you to maintain some purchasing power even as inflation ravages the US economy.

Another strategy is to seek out international investments and foreign properties. By investing in assets denominated in another currency, say British Pounds or Euros, you have a hedge against a falling dollar without having to exchange it for another fiat money.

Finally, consider taking measures such as hedging against the dollar’s decline through ETFs, or Exchange Traded Funds, which track the performance of currencies relative to each other and that of the US dollar index.

Lastly, you can go small scale by investing in the right goods or assets you can capitalize on during a crisis, or making ready to take advantage of opportunities that present themselves.

For instance, back in the great housing market crash of 2008 and beyond, there were a few “mad” investors who were able to buy and hold properties at the bottom of the market, of all kinds, that were severely devalued at the time.

Once the crisis ended and markets started to buoy, they were then owners of veritable real estate empires and stood to make a killing by reselling or through other real estate strategies.

If you play your cards right, you could still come out ahead through and after a dollar collapse. But, to do that, your own holdings must be secure. So you need to learn what things you need to own before the dollar goes kaput.

We don’t know for certain what the future holds, but we can own it as best we can by being prepared and well-informed. Are you prepared for an economic crisis? How will you protect your assets and stay afloat?

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1 thought on “Economic Collapse: How To Prepare for the Collapse of the Dollar”

  1. I would love to know what to do with cash in the bank when the digital dollar comes into play? They say it will be worthless, but can that be confirmed? And what if you do keep money in the bank? How much would you lose in the transfer to digital? I know you can buy land, metals, and other “things”, but how do you buy food and pay your property taxes?

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