For example, my Serbian friend told me how his parents took out a mortgage right before the economic collapse. *An interesting note about the Yugoslavia case: While some people had their entire savings accounts become worthless overnight because of the inflation, other people got lucky. If one currency collapses, one of the others will still likely hold value. Today, I’ve got part of my savings in US dollars, Australian dollars, Euros, Swiss Francs, and Chinese Yuan. What can we learn from this episode? If you want financial security in case of economic collapse, you need to keep your savings in multiple currencies. 2 million dinar bank note from Yugoslavia Instead, they started using German Deutch Marks (the Euro wasn’t invented yet) for currency. Once again, no one in Yugoslavia turned to gold as a currency. The hyperinflation got so bad that people literally wallpapered their homes with the money. This number is a 5 with 15 zeroes after it!

In the two years between 19, prices increased by 5 quadrillion percent. Image of a woman lighting a fire with bank notes (Weimar Republic, 1922) Diversify Your CurrenciesĪnother example of economic collapse is what happened in Yugoslavia during the 1990s.

But history tells us that we shouldn’t count on gold as a currency in times of crisis. If you want to buy a small amount of gold – go for it. The entire country went on a bartering system. In just one year, the price of bread went from 163 marks to 200,000,000,000 marks.ĭid people start using their gold jewelry as currency? One example is the collapse of the Weimar Republic in Germany from 1922 to 1923. Let’s look at some examples of complete economic collapse in history. The only really useful thing you can do with gold is throw it at an attacker’s head! But, for me, it seems ridiculous to think that gold will continue to hold value after all the other world currencies have become worthless. None of us can predict what will happen in a total SHTF situation. Man begs in front of a bank during the Great Depression Gold Is Not a “Safe” Currency With these things in mind, let’s look at how you can keep your money safe in case of total SHTF situations and economic collapse. While it is possible that all fiat money will lose its power, what is more likely (and has happened in the past) is this: Just ask the Greeks how they feel right about now. Throughout history, we’ve seen many regional economic collapses, and many are occurring right now. This doesn’t mean you shouldn’t be scared of economic collapse. We all know of the Great Depression of the 1930s in the USA, but there was also the Price Revolution in 16 th century Spain, the Medici Bank failure in the late 15 th century, the Russian Revolution in the 1920s…īut we have yet to see a complete global economic collapse.ĭespite scary headlines, we aren’t likely to see fiat money (printed money) lose its buying power. Throughout history, we’ve seen many examples of economic collapse on a grand scale. For that reason, you’ve got to consider how you will keep your money safe when SHTF. However, it is rather unrealistic to think that all money is going to lose its value, and it certainly won’t happen overnight. Money will be completely worthless in a total SHTF situation, which is why preppers and survivalists stock up on supplies and learn valuable skills.

Rules of survival shutting down reason