Preparedness Scenario – Economic Uncertainty

You all know the drill.  Here’s the SITREP:

The near future. For the last three weeks the market has been going up and down as it reacts to news from various economic indicators around the globe.  Some European countries have defaulted on their debt and investors are rattled as the Euro plunges against the dollar. market-crash-1

Gas prices are climbing again and are now over $4.25 in most states.  The official unemployment rate has risen to 10.3% and a harsh summer drought has killed off wheat and corn around the globe causing already high food prices to go even higher.  Inflation has crept up, but the government is downplaying it by saying that core inflation is still low.  QE 3 has dried up and the Fed says there are no plans to do a QE 4, but they expect the GDP to start rising by the fourth quarter of the year as they feel the economic recovery is coming along nicely by itself now.

The U.S. government is talking about austerity measures and people are in the streets, demonstrating in huge numbers across Washington D.C., New York and other major cities, furious at what some consider “draconian measures.”

On Wednesday the market goes into a free fall, but is stopped by automatic safeguards built into the system.  Thursday starts out well, but news that the U.S. has suddenly and surprisingly been downgraded by S&P because of ever-rising debt causes another sell off as investors flee the market and the market tanks again, this time shutting down Wallstreet until experts can “check” the system’s safeguards.

With Wallstreet temporarily shutdown the government declares a bank holiday on Friday.  Banks close their doors and ATM’s soon run out of cash as citizens, panicked by the sudden turn of events, flock to the stores to stock up on supplies “just in case.”  Store owners, wary of not getting paid, stop accepting debit and credit cards and only accept cash on the barrel head.

The government has promised that things will return to normal by Monday and the main stream media is asking everybody to remain calm during this time of “fiscal turmoil.”  Meanwhile, the blogosphere has erupted into a firestorm of people saying they’ve seen troops in some of the bigger cities beating protesters to get them off the streets, although this is unsubstantiated by the main stream media.  Rioting is possible in major cities over the weekend.

People are scared that when Monday comes a huge economic crash will become evident and local governments warn against hoarding.

Confusion reigns.

It is now Friday afternoon and Monday looks a long way off.  What do you do?

-Jarhead Survivor


These scenarios are purposefully designed to be confusing with conflicting information because that’s the way most real world scenarios will unfold.  You have to make the best decisions you can based on the information available, so suck it up!