With the increased interdependence of formerly distinct countries and cultures, economic problems in one area will affect others which will effect still others in a giant domino tumble. Quite a few experts predicted 2016 as the beginning of the end in terms of economic collapse. (See also The risks for 2016 economic collapse, Global economy 2016, Will the US economy collapse in 2016?)
But what exactly is a global economic collapse and how will it affect life as we know it? Even Wikipedia had trouble coming up with a concrete definition. “The term has been used to describe a broad range of bad economic conditions, ranging from a severe, prolonged depression with high bankruptcy rates and high unemployment (such as the Great Depression of the 1930s), to a breakdown in normal commerce caused by hyperinflation (such as in Weimar Germany in the 1920s), or even an economically caused sharp rise in the death rate and perhaps even a decline in population (such as in countries of the former USSR in the 1990s) Often economic collapse is accompanied by social chaos, civil unrest and sometimes a breakdown of law and order.”
In Mexico, the value of the peso dropped substantially, and for a time was more than 20 pesos per dollar in 2016/2017. While quite a few Expat groups celebrated the high conversation rate, it really wasn’t a cause for joy in the everyday life of Mexicans or those that earn their livings in pesos. (See also Anxiety rises in Mexico as the peso tumbles, Mexican Peso surprising drop spurs speculation, The Struggling peso–Mexico for sale )
So it seems that global economic collapse just might be a world-changing event in the very near future for us. How have we prepared?
Keep Some Cash At Home. We have next to nothing in the bank. We keep our meager saving in cash. It’s not much, so we aren’t really worried about robbery.
Get Out Of Debt. We don’t owe anything on any of our vehicles or our house. All our construction projects are done as we can afford them. It does take a long time that way, but it keeps the debt down. (See Building a dream, Constructing a life)
Reduce Your Expenses. We live simply. (See Declaring Solvency)
Have a Place to Live that won’t be repossessed. We own our house in La Yacata. There aren’t escrituras (individual deeds) but all the lots are held in common in a sort of hacienda set-up. Hopefully, we will eventually be able to get individual deeds because this really does bother me. Of course, as the owner has said, nobody really wants La Yacata (there isn’t any water or minerals or petroleum to be found there) so we’re probably safe.
Start A Side Business. We’ve tried all sorts of business. We aren’t afraid to try and fail while we always hope for success. (See Failing at your Own Business)
Move Away From The Big Cities. La Yacata is outside Moroleon “city” limits.
Store Food. We store beans, rice and tea and other stuff. The stuff we store is often our emergency food between financial windfalls or financial trickles whichever comes our way. This is a temporary fix, though. Eventually, the food does run out. (Forcibly green, Obligatory Organic)
Grow Your Own Food. We grow a good selection of our own food currently and hope to grow even more in the future. (See Alternative Farming and Old MacDonald’s Farm) We keep animals which provide us with meat, milk, and eggs. We also forage for food in our immediate area. (See Foraging)
Have a Clean Water Supply. We have amply water storage for about 2 months even with all our animals. We also catch rain water during the rainy season. (See Water Woes)
Have A Plan. Our ultimate goal is to be completely self-sufficient. We aren’t there yet.
Have Blankets And Appropriate Clothing On Hand. Without money, these things will become harder to come by. Of course with my nifty treadle sewing machine, we won’t run out of these things anytime soon! (See Dirty and Ragged)
Have a supply of Personal Hygiene Supplies, medication, and a first aid kit. I do have a 5 or 6 month supply of my medication for hypothyroidism and use a Diva cup rather than disposable any feminine hygiene products. We also have a small first-aid kid. Toliet paper can be replaced with reusable cloths or leaves (provided they aren’t poisonous) in a pinch. My husband insists we can use rocks if we haven’t any paper, but I’m sure something else would be better. Soap is easily made from natural ingredients.
Entertainment. Watching a movie on our rechargeable DVD player, listening to guitar music, playing board games, sewing, knitting, reading, horseback or bike riding are all activities that don’t cost an arm and a leg.
Know your Community. We know quite a number of people who are skilled at various survival trades. The butcher, the baker are accounted for. Still looking for the candle maker, though. In the event of economic collapse, it’s important to know people with skills that you can barter for. It’s also important that you have skills people might be looking for.
Have a Supply of Survival Equipment. Matches, an ax or machete, good shoes, flashlight, radio, and such items are always a good idea. Who knows how long things will be tight and we’ll have to make due. We have all of that. If you’re looking for a good general list, check out my Useful Items page.
Extra Gasoline. We might have a liter or two of gasoline about the house, but that’s about it. Our motorcycles are way more economical than either Myrtle the volcho (VW bug) or Butch the truck. When the gas runs out we can always use our bikes or walk.
Self-Defense Equipment. These are supposed to help keep your supplies safe from the hoards of people that haven’t prepared. We do have a machete or two, and a big scary looking but friendly guard dog, but that’s about it. Our windows have bars, but it’s far from burglar proof. Guess we’ll get to working on that.
Keep Your Prepping To Yourself. OOPS! Well, since you’re reading this, I guess I’m not following this tip so well. However, just so you know, La Yacata is the place to be in the event of global economic collapse!
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