How to prepare for the upcoming depression?

[Kablooie]

So, if bush and co. pull the world economy down into the gutter, where, do you think, would be the best place to put your savings?

[The Zanti Regent]

1. Who needs savings when you have Jesus?

Think of all those fools in the ASSemblies of God and the Southern Fried Baptists who used those KKKristian KKKoalition Voter guides.

As far as I'm concerned, they'll GET what THEY DESERVE!

[indigobusiness]

2. In the Hibatchi

for all the good it'll do you.

[pk_du]

3. First of all.....get rid of all your debt...NOW

especially variable rate stuff

[NMDemDist2]

that's good advice and then invest in gold and Euros n/t

[shesemsmom]

6. oh yea.most of my families debt

was created because he is in office. Watch us file bankruptcy

[NMDemDist2]

17. better hurry before they change the law to support the credit card co's

read this...http://www.bklaw.com/newbankruptcylaw.html

[cornfedyank]

19. could prime go back to 10%

makes a nice place for shrub et al to invest them dividends.

[Mend]

4. We think in gold coins but don't know for sure eom

[benddem]

12. Buy gold

not gold coins

[Kablooie]

18. I was thinking of converting my cash into ipods.

I predict that they will remain a valuable commodity into the future.

[gordianot]

5. Good question.

I don't know.

I started a similar thread on the coming bust. See link:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=104&topic_id=2723251&mesg_id=2723251

[Tsiyu]

7. Real Estate

Especially land with resources: water, timber, solar/wind powered improvements.

They're not making more land. Then buy gold?

[Gyre]

8. mortgage insurance.

It's a thought.

Gyre

[junker]

9. you cannot be that naive. There is no if, as it is happening now.

and if you have savings in dollar denominated paper of any kind (cd's stocks bonds, anything that is a piece of paper promising to pay you dollars) you are losing real wealth on a daily basis as the dollar falls.

NOW, since the dollar fell over the precipice on Friday, and it appears that you have NOT been converting your dollars to either gold or silver, you now have to play catch up as the price of gold and silver start to skyrocket late sunday on the international metals trading markets. So come monday, if you are not converting your 'savings' to gold/silver or eu-bonds, you are screwed.

BY the way, the depression is happening now. Oil at 80% increase in less than 15 months = inflation = loss of value of dollar. AND it will get dramatically worse in a very short time..

AND do not listen to the paper currency whores out there pimping for the Fed reserve and AL Greedspan and his buddy Bushie. THERE is NO safety in any DOLLAR denominated asset.

AND WHEN the 'price' or 'value' of your house falls 20 per cent in the next 6 months and the bank calls the note due, then you will realize what a depression is...

BEar in mind that in the previous "Great" depression in this country, there was only a 24 % unemployment rate. WHAT with peak oil, geo-political problems, AND the great buShits leaderships, well those who know are figuring on a 43% unemployment rate AND the rest will work for government while we melt down.

Get real. Go to lemetropolecafe.com and get a 2 week free membership. Educate youself before you become yet another victim of republican thinking.

[joelogan]

13. you exaggerate

Don't get carried away with it.

[ayeshahaqqiqa]

10. In stocking up

I came into a small legacy, and am using the money to get myself off the grid and to make sure my house stays livable. We're stocking up food in the larder, and making sure we have enough supplies to survive, including seed for the garden next year. Luckily, we live in a rural area with good neighbors who have been working to help each other for years.

If you want to have something for investment, I would suggest gold or coins, though around here other commodities would do better in a trade.

[noordinaryspider]

14. For people in my own income tax bracket....

Education.

If I had more money, I'd stock up on practical items like food, but since I'm a renter, the cost of having it all hauled to the dump after I recieve my eviction notice would just be deducted from my security deposit.

If I could afford Real Estate, I could prevent that.

But I can't. Things are. I invest in education for my children and myself. College tuition is not the most cost-effective way to go, IMHO, so we have homeschooled/unschooled all the way from preschool to the present. dd is able to manage college, but I doubt if the economy will hold up long enough for ds to grow into that. No regrets on the $$$ spent on curriculum, private lessons, group activities etc. in the past, but the present means internet, used trade books, listening and thinking about the information people choose to share with us, etc.

My AA in English will never translate itself into a paycheck but bluffing my way through Junior College without a high school diploma or even a decent elementary education from a corrupt public school system has taught me how to teach myself. This is what I want to give my children rather than heads stuffed full of obsolete facts and figures that were useful BEFORE the economy collapsed but will be about as practical in their adulthood as Scarlett O'Hara's knowledge of catchin' fellas by fluttering her eyelashes was when she had to pick cotton to pay the taxes on Tara.

More power to the majority of Democrats, who knew this long before I did, and therefore have capital to invest now. You have my applause, not my sour grapes.

[ayeshahaqqiqa]

16. Learning a trade is the way to go

I think that people who can do electrical, plumbing, etc, is the way to go. Lots of folks around here homeschool, and they have a community school for group projects and socialization.

In our neck of the woods, some folks housesit and so are able to keep down rental costs.

[tandot]

11. I have no savings...but, like so many of Americans, have lots of debts

Student loan, credit card, car loan ... I never made enough money to put money away.

Hey, if Bush can squander the surplus, borrowing more and more, exploding the deficit to never known levels...why shouldn't I?

I guess lots of people have to hit rock-bottom very hard before they realize how utterly insane it was to vote for Bush. I am just sorry that all of us have to suffer because of their ignorance.

[greenman3610]

15. Well, my business was booming before 911

Since then, it's been crap. ( I do graphics, animation, and multimedia)

I recently dusted off my lapsed nursing license, and quickly found a
job-2 12 hour shifts a week, ( more if I want it..)
I'm hoping that along with my wife's teaching job, that
we can ride out the storm coming....

[bain_sidhe]

20. Buy "durables" now instead of later?

This is an idea I've been noodling... we don't have a lot of extra money, but we do have some in a bank's version of a "money market account" (FDIC insured, with guaranteed (low) interest). We have several items that are old enough that they can be expected to fail within the next few years - stove, washer & dryer, an old pickup for a second car and hauling home improvement project supplies. I'm wondering if it might be better to replace these things now with our "extra" money rather than wait for a couple-three years when I expect all of them to be more expensive.

OTOH, I also wonder whether AFTER the economy tanks and then stabilizes, these things might end up being LESS expensive to lure shoppers back in to the market. What I don't know, is how long things will take to stabilize.

Any thoughts from those more knowledgeable about these things than I am?

[54anickel]

21. Not sure if buying "things" would be the way to go. As far as your

assumption on items becoming more expensive, possibly for brand new. But if it gets that bad, folks will be having "fire sales" on all that new "stuff" they've been buying on credit cards just to get by.

IMHO, I'd be salting it away rather than spending it on the chance things might get more expensive or that what you've got "might" fail - might not either. :shrug:

There is still a good chance that durable items may suffer a round of deflation as well. Prices may come down just to get folks to buy (look at US auto makers these days). We could see lots of inflation on items we need to survive - food, fuel, clothing, rent, etc. while other items drop in price to entice buying.

JHMO

[bain_sidhe]

22. You're probably right. It's just so hard to know

what to do... I mean, I've seen all the "buy gold" advice, but I'm not really sure that's realistic for "regular folks" like us. I mean, you'd have to have access to a place to sell it in order for that to do you any good, right? It's not like you can take it down to the grocery story and buy groceries, or pay off your utility bill with it. We're pretty much in that vast "'tween" state - not rich enough to play the market, not poor enough to not be able to do ANYTHING to mitigate the damage... we're just comfortable enough to think *maybe* we can make it through the rough times ahead without resorting to feline cuisine if we prepare well enough now. The question is (as the original poster asked), what's the best way to prepare?

**edited for clarity**

[54anickel]

23. It's a tough question, and you're right - it depends on the individual's

circumstances. As far as having a place to sell PMs, that's not a problem, plenty of coin shop type dealers to sell them at. If the proverbial shit truly hits the fan, there will be plenty of demand, lots of folks will be willing to take it for payment - ha, but will they be able to make change? ;-) Of course, there will be an entirely new "economy" if it gets that bad as well. Bartering, black markets, etc.

I am not advocating rushing out and buying PMs. As I said, it depends on individual circumstances. If you have a few extra bucks that you can do without, then fine - but buy on the dips. The whole idea behind gold is that it is considered a store of value, so you need to be of that "buy and hold" mentality the pundits push when they talk about retirement savings. You buy it with the hopes you won't have to use it, not to make a killing and get rich - if that makes sense. It's sort of an insurance policy. I mean heck, it could go DOWN in price someday - you've got to be able and willing to hang on to it until it goes back up if that happens. Goldbugs had been hanging on for a very long, long time before the price came back up.

Stock up on a few items you need that can keep, canned goods, personal care products, gardening items if you've got the space, potted patio gardens work well if you're limited.

If you've got secured debts, try to get rid of them - nothing better than having a free and clear title to items. Variable rate loans should be paid off or locked in.

For those with lots and lots of debt, think through the scenario of possibly having to file bankruptcy. What could you easily shake (like credit cards) and what won't be forgiven (like student loans). What would happen to your home (if you own one), your car, etc. I'm not advocating racking up debt and then filing, just suggesting you think about how it would play out if you had to, and make any possible adjustments that would leave you in a better position. Play that what-if game in your head. What-if I lost my job? What-if there was a government imposed week long "bank holiday"? What-if I had an expensive medical emergency?

If you're thinking of foreign currency, remember it's still important to diversify. Of course, Junker will tell you that all fiat currency will be worthless, and that may very well be true if there's a complete meltdown. I see lots of people talking about buying euros, but they are pretty high as it is - that's what all the complaining is about this weekend at the G20. The commodity currencies are doing well, and will continue to unless the entire world economy comes to a standstill - which I doubt. Then there's the Swiss franc, which has always benefited when there is a flight to quality.

Can't really advise you on what to do aside from honker down and try to position in a way to best be able to care for yourself and your loved ones.

Sorry, not much help. :shrug:

[bain_sidhe]

24. At least we're pretty ok on the debt front

Paying of credit cards monthly, no variable rate loans, and only 3 years left on the mortgage. Autos and other durables owned free and clear, PLUS a new roof, from the rafters up, paid for in cash. We're sacrificing two trees to create a sunny garden space, and I'm looking into a minimalist solar panel/battery set up as backup power for critical systems (like the computers! and the 'fridge! Ok, maybe a couple of lights, too ;) ). Have been wanting a Franklin stove forever (my folks had one, can't beat it for heating a small living room (or family room), and you can even cook on it). Now might be the time to get it, if I can even find one these days.

OTOH, I'm also thinking about taking a trip to Windsor (only about 20 miles) and finding out if I can open a bank account there. Loonies are looking good, and Canada actually has a budget surplus. Not to mention, they're a net exporter of oil.

:argh: ! Never have I felt such a combination of so many things to worry about with so many things that I can't do anything about, no matter how much I worry. Even the "duck and cover" days didn't feel this bad. Of course, I was only five at the time. That might have something to do with it.

[54anickel]

26. Sounds like you're pretty well set. Just get your hands on one of those

Franklin stoves! Former in-laws all had them, they are great! Might want to start scrounging old pallets for wood to burn though. ;-) That's what the in-laws used all the time. One heated the entire house with a franklin in the basement.

Yep, Loonies are looking good, a bit high today but looks like they'll be a strong currency for quite some time. As you stated, Canada has got a lot going in their favor right now.

[bain_sidhe]

27. "heated the entire house"...

Did they hook it up to the duct system or something? Hmmm. That's really a thought, you know, if you could do it with some sort of louvers to use *either* the furnace *or* the stove. I wouldn't want to rely on it 100%, the wood supply problem being a big part of the reason. 'Course, I could always save the wood from the trees we're taking out instead of letting the tree service chip it and haul it away.

And as you say, the Loonie's a bit high, but it's got pretty solid fundamentals, IMHO. Even though Canada's exports will take a hit if our economy tanks, they at least have the natural resources (especially energy) to supply themselves (unlike some other countries I can think of...)

[54anickel]

28. Yep, went thru the same duct system as the oil furnace. Had some

special blower on one of the pipes going into the chimney. They were just into heating with wood rather than buying fuel oil. My neighbor has a similar set up, can use gas or the woodburner. Neither used wood 100% of the time, but pretty dang close. Neighbor brings old pallets home from work all the time, then gets the wood from downed trees from whereever he can for the "long burn".

on edit: Neighbor has one of these bad boys: http://www.yukon-eagle.com/

Haven't found anything like what the in-laws had yet. Maybe it was something he rigged up himself.

[Name removed]

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