Ever since the 2008/2009 housing crash, I’ve been hearing one financial guru after another talk about how the United States was heading into another financial collapse. Each had their reasons, all of which sounded plausible. But that didn’t necessarily make them true. There’s something different going on today though… this is, they’re all talking about the impending financial collapse; not just one or two of them.

The question for us, is whether this collapse is a real possibility, not whether it is a probability. We in the prepping movement deal in possibilities. If we only prepare for what we’re convinced is coming our way, we won’t do much prepping.

Of course, the answer to that question is a resounding yes and for a variety of reasons.

Inflation
There’s no question that we’re seeing high inflation, no matter how hard the administration tries to hide it. The official inflation figures of eight point something percent are based on the consumer price index, which the government is constantly changing to hide the true inflation rate. But even that is the highest inflation we’ve seen in more than four decades. That alone means that our money isn’t going as far, causing the average family to tighten their belts.

Regardless of how much they try to tell us that inflation is caused by greedy corporations, it’s not. Inflation is caused by the government; specifically, by the government spending money they don’t have. Every time Congress passes one of those trillion-dollar bills into law, the Federal Reserve issues the money. Where does that money come from? They pull it out of thin air, creating it themselves. Since the total value of our GNP hasn’t increased by that amount, what they are essentially doing is diluting the value of all the dollars that are out there by the amount necessary to make up for the new money they issued.

Once they’ve done that, making out money worth less, costs are automatically increased for business and industry, especially for anything imported from overseas. That results in those companies raising their prices, so that they can remain profitable. Hence, we end up with second-order inflation, adding to what the government has already done. However, had the government not started the inflationary cycle, those businesses would not have to raise their prices.

Nevertheless, inflation alone won’t create a financial collapse. The two big signs that people look for are high inflation, much higher than the 8+ percent we’re dealing with right now and high unemployment. During the Great Depression, unemployment topped out at about 25 percent. We’re nowhere near that point right now.

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