Connect with us

News

The Day All Cash Disappeared

Published

on

the-day-cash-disappeared

Money plays such an important role in our lives that most of us could not imagine surviving without it. Yet that is exactly what you need to do if you want to prepare for an economic condition called deflation.

Deflation is the term economists use to describe a “general decline in prices, often caused by a reduction in the supply of money or credit.”[1]A good way to think of deflation is as the opposite of inflation. Inflation occurs when there is too much money in circulation, which destroys its value and raises prices. When deflation occurs, there is too little money available, which often causes prices to collapse and the economy to shut down.

In severe cases of deflation there can be no money available at all not — even at the banks. This nightmare actually occurred during the Great Depression of the 1930s, when there were places in the United States where there was no cash available at all. More recently, it has happened in Greece, where ATMs ran out of cash and where banks placed limits on the amount of money that could be withdrawn.

People had no money to pay bills or buy food for their families. Employers had no money to pay employees, customers had no money to buy goods, and many people were reduced to bartering to survive. During the Great Depression, farmers would pay professionals such as mechanics and doctors with food because they had no money and no credit.

clickheretocontinuereading-new

Learn more with these related articles on our site:

Prepping for Financial Collapse

How to Retire Comfortably After A Financial Crisis

Protecting Your Money In An Economic Decline




Comments
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Trending

Copyright © 2020 Survival Life. This copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this website to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[email]
[first_name]
[first_name]
[email]
[email]
[index]
[index]
[email]
[email]
[first_name]
[first_name]
[email]
[email]
[if lt IE 9]
[if lt IE 9]
["_setAccount", "UA-29124457-2"]
["_setAccount", "UA-29124457-2"]
["_setDomainName", "contest.io"]
["_setDomainName", "contest.io"]
["_setAllowLinker", true]
["_setAllowLinker", true]
["_trackPageview"]
["_trackPageview"]
['Years', 'Months', 'Weeks', 'Days', 'Hours', 'Minutes', 'Seconds']
['Years', 'Months', 'Weeks', 'Days', 'Hours', 'Minutes', 'Seconds']
['Year', 'Month', 'Week', 'Day', 'Hour', 'Minute', 'Second']
['Year', 'Month', 'Week', 'Day', 'Hour', 'Minute', 'Second']
[email]
[email]
[email]
[email]