This article has been contributed for your reading pleasure by Kevin at 20smoney.com.

The recent weeks in the stock market have shown many people who have believed the economic recovery lie that there are still major challenges facing the U.S. economy. The reality is that all of the problems that caused the recent economic crisis have not been fixed. In fact, many of these economics problems are even worse today.

For example, our over-leveraged society is now even more leveraged due to the massive increases in public debt that have taken place. Entities like Freddie Mac, Fannie Mae, AIG, and others should have been liquidated; instead new, precious capital has been allocated into these zombie institutions. The more capital we allocate towards the black holes of these institutions, the less capital can be allocated toward real production that will lead to sound economic growth. An increase in production and sound economic growth is the only path to a future with any glimmer of prosperity. Unfortunately, we’re pursuing the exact opposite of such a path.

Due to the enormous economic uncertainty that is still very real, I recommend a strategy of extreme financial defense. Your goal should be to preserve your wealth through any means possible. In addition to exercising extreme caution with the financial markets, I would even recommend viewing the FDIC insured banks with a skeptical eye.

You should do your own thorough analysis of the financial soundness of any bank that is keeping your money. If a real financial crisis were to hit, the already depleted FDIC would likely not be able to cover everything (and if they did, the dollars might not be worth anything anyway!).

In order to prepare for the possibility of a collapse of the financial system, you should keep some cash on your property. Just imagine if ATM machines are unavailable! I would recommend a few months worth of expenses in cash accessible and hidden at your property. Be sure to hide your cash very carefully in order to prevent theft. A small safe will not do, since thieves will simply steal the entire safe.

If you’re wondering why I would recommend hoarding cash after already mentioning the possibility of a worthless currency, I would definitely also encourage you to have some gold and silver coins hidden on your property. In a time of uncertainty, precious metals may be the only acceptable form of money.

To take your preparations one step further, I encourage you to embrace the Alpha Strategy which recommends investing in consumable goods that you will need in the future. By accumulating goods that you will need later, you have a nice stockpile of supplies should there be a disruption in the supply chain; furthermore, any capital allocated towards consumable goods is completely secure from financial market volatility and you don’t pay taxes on an increase in value of such goods.

Overall, the strategy is simple. You should prepare and be cautious regarding a very real possibility of financial chaos in this country. There are very large looming problems that are not being addressed. You should prepare for the worst and hope for the best. It is wise to be skeptical regarding the financial system, the markets and even your banks. Only you can protect your wealth.

Kevin owns and writes for 20smoney.com and SimpleFinancialFreedom.com. For further information on defensive financial actions, check out the Alpha Strategy.