The economic situation in the United States is so bad right now that even the Democratic Party (i.e. President Barack Obama) may not be able to pull us out from under the $12 trillion National Debt run up by the Reagan-Bush and by the Bush 43 administrations.
None of us, nor all of us working together, can prevent dire consequnces from their tripling of the price of gas/petrol at the pump, by increasing the price of crude oil by 400% per barrel, nor from the impact of fuel prices on food and other necessities.
But there are steps that an Individual can take that will ease the inevitable economic pain, and perhaps soften the long-term effect on your children and grandchildren.
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1) Start now! – The longer that you wait, the stronger the negative impact on you and on your family.
2) Get out of the Virtual Economy – Pay off your credit cards. Park all but three of them, carrying for emergencies the three charging the least interest.
3) Spend only in the Cash Economy – If you don't have the cash, then don't buy (whatever).
4) Explore the Barter Economy – See whether you have some skill or asset that can be traded, or even sold face-to-face for cash.
5) Investments – If you own any stocks or mutual funds, gradually sell off the higher-risk (non-equity) holdings and purchase gold and silver: the metal itself, not any futures products (too risky).
6) Debt – Make double payments on the mortgage on your home. If you have any mortgaged investment property, sell it for what you can get, and use the proceeds to pay down your home mortgage.
7) Transportation – Make double payments on your automobile/s, and give up plans to buy a new vehicle until the current one wears out, or you have the cash to make such a purchase.
8) Emergency Planning – Get ready for spot shortages in electricity, oil & gas (petrol, heating oil, natural gas). Stock up on supplies like we did for the Y2K fiasco.
9) Balance? – If you have any cash left over (each month), pay off debt and-or stock your pantry.
10) Hug your children. Leave generous tips. Hug your children. Let the other driver go first. Hug your family. Watch the sunset (or sunrise) with someone that you love.
11) And be not afraid.
Copyright 2008 by G.E. Nordell, all rights reserved