Everyone knows something is coming
We can all feel it. No one really knows what it is. One thing seems certain though that whatever the dark cloud that now hangs over us it has some huge economic component to it. I read something a few weeks ago on The Urban Survival website http://www.urbansurvival.com/week.htm about how the official unemployment number as reported is artificially low. The writer over there had a much simpler method of just asking your friends and family. In my circle the number of people laid off in the past year is over 15%. Ask what around do you come up with?
My anecdotal test which resulted in a 15% give or take unemployment rate, ties out nicely to a chart I saw on the Shadow Stat website, http://www.shadowstats.com/alternate_data.
You see that true unemployment is 200%+ the “official” rate.
Realistically we may have what a year at the most before all of our lives are different than we ever could have imagined before 9/11. Can’t you smell it in the air?
I agree with the Department of Homeland Security Homeland Security Advisory Council Administration Transition Task Force Report that the most vulnerable time for our country is, “is 30 days prior to, as recent history has shown, and through six months after the change in administrations.” http://www.dhs.gov/xlibrary/assets/hsac_ATTF_Report.pdf.
I wouldn’t be surprised to see the markets lock up not too far in the future. At some point I figure something has got to give with our currency. I mean how long will be able to keep printing what amounts to worthless paper and sell it in the marketplace.
The other issue is the eventual inflation that will come about by this expansion of the money supply.
Our debt is already becoming unserviceable. We’re spending around $450,000,000,000.00 (Billion) a year just on interest. It’s simply unsustainable. At some point the purchasers of our debt will realize this and the big sell off begins. We then become like Iceland. No seller will ship goods to the US for any amount of our worthless paper. I don’t have much optimism for our short-term economic outlook (five years). Oh sure, there will be ups and downs, but our trend is negative.
it would be a mistake to assume that the availability of cheap imports will continue on indefinitely. Don’t count on the endless international supply chain to stay operative forever.
I think the thing to do is to prepare the best we can. You see it on all of the website, tangibles. Buy a little extra food every time you go shopping. Try to pay down your debt, or at the very least don’t allow your debt load to increase. Anyone in the markets may want to develop an investment strategy that leans towards asset preservation. Be good to figure out how to get a second income stream flowing if possible. Have enough cash around in case you can’t use you debit, credit or ATM cards.
Make sure you have enough food and water to hide out at home for a week or more. All the regular stuff for a storm: batteries, radio, flashlight, canned goods, water, can opener, candles, first aid kit, extra prescription medicines, maybe a firearm and ammunition, a generator if you can afford one, an assortment of small bills, an alternative way to cook, a personal hygiene kit, sleeping bags, water filter, toys for your kids, etc. You know the routine by now. Learn a new skill. Watch what you spend. Get to know your neighbors.
I’m a big fan of getting any imported stuff that you normally use sooner rather than later. I need to buy another pair of jeans or two and a pair of sneakers. It’s a better investment than the stock market.