Surviving A Global Depression – Preparing For The High Scenario: Stock Markets Closed

This is the “gulp” scenario: The unthinkable. It is the least likely depression scenario but the most fearful. It represents the guaranteed collapse of law and order everywhere in the world. Gangs will be running rampant, looting and killing anyone they meet. Cities will become uninhabitable. It’s possible that 500 million to a billion people will die from starvation, crime and other diseases. The house-in-the-country plan for Low and Medium is pointless in the High scenario. You can bet that the lawlessness will reach every corner of the country. There very simply may be nowhere to hide in this post-Apocalyptic Mad Max world.

If you see the depression heading for these levels and the airlines are still flying, you may want to leave your home country altogether. I suggest places where there is very low population density and plenty of water. Some suggestions include Australia’s Cape York Peninsula and the coastal Northern Territory, New Zealand’s lower South Island and Canada’s north-central British Columbia.

These are currently stable, low-population density countries with decent law-abiding people and are less likely than most other low-density countries, such as Russia, to fall completely into chaos. If you’re entering another country, don’t worry about your travel visa, just enter as a tourist. The government will soon break down and then Immigration is certainly not going to come looking for you.

Don’t take much cash with you, just enough to get there. It may be worthless soon enough. Have something with you of great value that is small, light and can be traded. Gold and platinum may be worth nothing. A few vials of antibiotics or vitamins might be worth much more than a bag of diamonds.

Due to the fact that this scenario calls for a depression which could conceivably last far more than one entire generation, it becomes impractical if not downright impossible to stock up on sufficient food and water. Check the survivalist books and websites. Learn to live off the land, what is edible and what is not. Get over your squeamishness and hunt everything that moves.

Any well-established house will be a target for roaming crazies. You need to find a location that is as hidden and far away from humanity in whatever country you're in as possible. If it’s just an old fishing lodge or a shed or a tree house, so be it. You’re not going to be comfortable, but you will survive. We're talking extreme survivalism here. You must avoid contact with any other human beings at any cost. No one can be trusted now. Even old acquaintances may covet your stash of food, water and ammunition and could be willing to take any step to ensure their own survival. Even at the cost of your life.

It is at times like this that you must apply the Survivalist's Golden Rule: Do onto others before they can do onto you. There is only one rule, and that is that you must survive. You must be prepared to take any step, undertake any action, to ensure your survival. Even if it involves discarding your ethics and morality. You may have to commit acts of unimaginable savagery to ensure your survival, but so be it.

Even if you’re not religious, pick a deity and pray that it will all be over soon.

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Comments 29 comments

Neil Sperling profile image

Neil Sperling 7 years ago from Port Dover Ontario Canada

quite a trip - your Scenario format is possible


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

I guess it really might be time to start stocking up on food, water and ammo! :(


eave 7 years ago

Thanks You for this post.


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

Thank you. Be prepared, as it seems as the whole thing might go sour(er) any day!


jjrubio 7 years ago

You seem very well informed but I have to say that is a very grim outlook on it. Yes I believe that it will probably happen but I have known this would come since I was a little girl. I was raised reading the bible and I know one thing. Surviving isn't going to be any easier with a gun in your hands.

Look at what other people in other times and countries have went through and yes some died. Take the Holocaust for example. Not only the Jewish were persecuted and killed but there were others , Christians who were in jail long before Hitler turned on the Jewish. But some survived and some did not. But one thing I learned from one survivor is that they survived by praying to GOD for strength not by acting in violence or thinking only of themselves.


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

True that taking up arms is completely against the Christian philosophy of "turning the other cheek," but we also have to realize that the vast majority of the Old Testament and a fair chunk of the New deals with extremely violent conflict, and not necessarily in a derogatory tone. However, by all means, I have stated previously that I steadfastly believe that the only way for us to save ourselves, as a people and as a civilization, is through profound repentance and prayer.


pgrundy 7 years ago

Wow. Great series. I wish it all looked less plausible but the way things are going, I think it is just sensible to prepare for the worst, if not practically then at least emotionally--because once you prepare emotionally, you feel like less of a nutball taking whatever practical steps you can. We are bit by bit trying to become as self-sufficient as possible, but it if it gets really bad, like you say, that won't matter. People will just come and take why you grow or what you have.

There's another possibility though. In addition to lawless gangs some communities may well band together in a hopeful way. We really don't know. I mean, we've never seen this in out lifetimes.

Great hubs. Thanks .


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

I appreciate the kind words, pgrundy. In the Great Depression many communities were able to band together and resist the collapse into anarchy. Unfortunately today's society is far more fragmented and extreme and the sense of community and nuclear family is long gone. That's the main reason why I'm not holding out much hope if the economic situation degrades to such levels. Again, may our own respective deities help us all! :(


pgrundy 7 years ago

Hal, what made you tie thses scenarios to the DOW? I was wondering that today as the DOW fell below 7,000. I think it closed at right around 6700. 'knolyourself' on the forums page said he saw the DOW at 600 (three digits) in the 1960s, and the 1960s weren't that bad economically speaking. I'm confused about what, if anything, it all means, so I thought I'd ask. :o)


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

pgrundy, the Dow is still at barely over 6700 and stating that the index was at 600 in the Sixties and things were ok back then misses the point of the index. The DJIA is keyed into the overall value of the economy in a very similar manner to the currency of the nation. In the Sixties I could buy a loaf of bread for 19 cents, a decent new car for $3,000 and a four bedroom detached new suburban house for $9,000 (my parents did.) Inflationary pressures devalue currency just as they do the correlation of the DJIA to the overall economy. Taking economic history into consideration and adjusting for all the factors shows that the 2009 DJIA "steadystate" level should be in the 11,000 to 12,000 range which would roughly correspond to that 600 in the Sixties. Anything above that could be considered bullish and anything below is bearish. We're not bearish now at 6,700 and dropping. We're on life support! :(


agvulpes profile image

agvulpes 7 years ago from Australia

G'day Hal , as a very interested observer from Australia, I was surprised to learn that AIG is heavily involved in the re-insurance business in OZ. The report also says that if AIG goes belly-up the country would grind to a stand still due to lack of insurance cover. Could you give me your take on that scenario?


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

Fair dinkum, agvulpes! :) As Bernanke has just stated, AIG essentially sucked up $200 billion and in return the US taxpayer got nothing but equity which is not worth the paper it's written on. An AIG bankruptcy has been a huge fear of both the Bush and Obama Administrations as the credit markets would contract even further and unless a government agency were to step in to ensure that AIG's myriad obligations are maintained (with untold trillions) it is not unthinkable that entire countries would have to file for bankruptcy themselves (much as New York once did and how California may soon have to). It is hard to believe how the so called "regulators" allowed something like this to happen, but it turns out that a single corporation managed to get its hands on the very lifeline of the world and through greed and stupidity effectively destroyed the capitalist system. Again, may God help us all.


agvulpes profile image

agvulpes 7 years ago from Australia

Hal , apparently the so called "regulators" were looking at the wrong black hats and were gazumped at there own game! According to this WMF dude he believes we are not even half way through this "readjustment"?

btw I do not subscribe to the "Mad Max" scenario!


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

I firmly believe that there will be no bottoming out until Q2 or Q3 2010. And what we have to ask ourselves at this time is just how much more bleeding can the world economy take! We're already at the rapid collapse stage with the Dow at 6700. What will it be in 15 to 18 months? 1000? 100? My

http://hubpages.com/money/The-Economic-Tsunami-Is-...

Tsunami Hub explains how the economic wave that has already been triggered is enough to engulf us all in 6 months or less, and that doesn't even take into consideration that the overall economic situation is going to get even worse in the meantime! In this case, again in my humble opinion, Mad Max is going to be a mild scenario, and it could get much worse.

HEEEEEEEEEEELLLLLLLLLLLLPPPPPPPPPPPPP!!!!!!!!!! :(


pgrundy 7 years ago

That makes perfect sense, Hal. Thank you for the explanation.

Man, this IS getting scary. I can't believe they are still forking over wads of cash to AIG and the banks (especially Citi). The root problem still hasn't even been addressed. I think they should seize these insolvent banks through FDIC and break them up into smaller ones, then sell the solvent smaller ones and get them back into private hands ASAP. At the same time, we need new regulations to prevent banks from getting "too big to fail" again, ever--and to divide investment from retail  banking again like it was before Glass-Steagall was repealed.

But nobody is too interested in what I think, maybe just as well.  The parasites at the top are making off with what they can, I fear, leaving the rest of us to sink or drown in the tsunami.

Yikes.


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

You're very welcome, pgrundy. The end of Glass-Steagall truly was the beginning of the end of The American Era and worldwide capitalism. I found it very interesting that Time magazine readers were able to vote online for the worst of the 25 people who wrecked the economy and they have just picked Phil Gramm as number one, even ahead of Mozilo or Greenspan. If anything, the hundreds of billions of dollars which have already been THROWN AWAY have shown that bailing out corporations is a fool's errand. You might as well have a bonfire with those billions of hundred dollar bills, at least you'd keep a few people warm.

The essence of the problem is that any attempts to fix this are just going to make the whole damn thing worse. So far approximately three trillion dollars have been mandated in one way or another to bail out corporate America. That is money that is going to have to be paid by taxpayers, either now or in the future. We're talking about approaching $15 trillion in debt now as a nation. That amount of money is essentially impossible to pay back, as it works out to more than $100,000 for every tax filer in the USA, and that's without factoring in the interest, or the minor issues of actually having the tax income to run the country!

Again, there is no way that is EVER going to happen without a Weimar Republic / Zimbabwe type of hyperinflationary spiral where $100,000 will buy you a stick of gum. Any way this works out the greedy bastards have impoverished the world and have destroyed The American Dream.

Firing squads would be far too humane for them! :(


pgrundy 7 years ago

Yeah, I read in last night's paper that Bernard Madoff is arguing that he should be allowed to keep his Park Avenue apartment--he's making that appeal with a straight face. What I don't understand is why he hasn't been hung with his own intestine from the window of that apartment by angry victims of his BS. No, he's in court saying, "I have a right to my Park Avenue apartment."

It's insane.


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

It seems absolutely bizarre to me that in the USA if you bounce a check for $50 at the 7-11 you're dragged away in handcuffs and thrown into county jail alongside the scum of the Earth, but if you rip off $50 BILLION you can stay in your Park Avenue apartment under "house arrest." I wish someone would house arrest me in a Park Avenue apartment! :(

It's just another indication of the utter corrupt nature of our society. It's amazing that we have been so desensitized to things like this that we take them for granted, almost as if this is the way things should be!


pgrundy 7 years ago

I know, I agree. One out of every 37 guys between the ages of 25 and 34 are in prison in the U.S. now, and when it comes to black guys, it's one out of every 9 guys. That's the highest incarceration rate in the world, higher even than China. It's horrendous, especially when you consider that much of it is the result of drug possession and/or use, not violent crime. If we had a disease that was hitting people at that rate we'd declare it an epidemic and the whole country would shut down until a cure was found. But here, if you're not rich, we just throw you in prison. If you are rich, we let you keep your Park Avenue apartment.

Once they lock up all the Americans who would normally be doing the work the rich guys don't want to do, then what?

There's a small but vocal group of people who think the very rich are openly planning the extermination of the rest of us. That sounds a bit wacko to me but maybe they are right. I hope not.


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

The main problem with conspiracy theories is that they are usually based on fallacious assumptions. When GM killed its EV1 electric car, it was almost universally assumed that it was because they were in cahoots with the oil companies which didn't want gasoline-free cars rolling around. As we have found out about a decade later, neither GM nor the oil companies are in any kind of shape to do anything. GM may be gone soon, and the oil companies are desperately trying to stay afloat in a world which is turning its back on all forms of energy as the economic engine has stalled out. Therefore, the very rich are soon going to be standing in the same soup lines as the rest of us and I don't think that they want to kill us, since we'll be holding the keys to the soup kitchen! :(


Ashley Joy profile image

Ashley Joy 7 years ago

Sounds like Y2K all over again. Lets hope the outcome is the same.


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

Unlike Y2K which fizzled out, we are right smack dab in the middle of the collapse. It's all around us and the worst hasn't even begun to hit the population of the world yet. I wish I could be more optimistic, but there is very little cause for optimism right now. :(


pgrundy 7 years ago

I had a friend once who always used to say, "They can kill me but they can't eat me!"

That always bugged the hell out of me. I'd tell him, "You know, if they can kill you of COURSE they can eat you too if they want. What are you talkin' about?"

Maybe the rich will eat us. Or maybe we'll eat them. That would shorten the soup lines! ;o)


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

Hmm... Cooking up the rich... I guess it's time to dig out my recipes for "Long Pork" ... I guess it gives naming dishes "Rockefeller" or "Rothschild" a whole new turn! :)


Rob 7 years ago

I would buy raw rural land or with a cabin I do not want to be in the city if thing goes south


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

I couldn't agree with you more. If the cities start to meltdown, absolutely no one will be safe. In order to ensure your welfare, get as far away from civilization as you possibly can!


Toronto12 profile image

Toronto12 7 years ago from Toronto

This article is really kind of crazy, but I think everyone has to consider that it's possibly in the cards. This recession will turn into a depression, the US will debase their currency, there will resource wars and civilian uprising around the globe. It's going to make for some interesting times indeed!


Hal Licino profile image

Hal Licino 7 years ago from Toronto Author

The recession turning into a depression seems more likely every day as this downward economic spiral is showing absolutely no signs of bottoming out. As for the debasement of the US greenback, the US Treasury Secretary's recent statements favoring the Chinese suggestion of the adoption of an IMF SDR currency, may just have put the last nail in the coffin of the American Dollar. Keep your seat belts fastened. It's going to get a lot rockier yet! :(


Arthur Bragg 6 years ago

Why is it so many people jump straight to the lone survivor scenario? Is this some american western mentality. You have been brainwashed into thinking that community and social groups are unstable and you can only trust yourself. This simply is not true. All through history the survivors have been those who can work together, who can communicate and build trust relationships.

My advice for all these scenarios is to find a small town and invest your time and money into it now. learn useful skills and make some friends, be part of something good. If the worst happens then we are all dead - but in any other scenario living in a working community will give you a better quality of life than hunkering down in a shack in the woods.

Even before you quit the city for that place in the country - consider what you can achieve by meeting your neighbours.

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