How To Protect Yourself From The Coming Financial Crisis

How To Protect Yourself From The Coming Financial Crisis
Posted with permission from http://www.saneramblings.com

Posted: Mon Jun 30, 2008 11:29 am

Dear Reader,

In 2009, the U.S. economy is going to collapse, the worst since the Great Depression. You will see much higher interest rates and tremendous fallout from the crashing real estate market and from the crumbling financial institutions. Gasoline prices and availability is anyone's guess.

To postpone the impact of this coming financial disaster, cynically U.S. politicians have tried to assure the public and stoke the economy until after the November elections. But already, inflation is sweeping through global economies and has come to the U.S. in higher food and gas prices. This is just the beginning.

However we as a people will get through this crisis together. For tips, please continue to visit "How To Protect Yourself From The Coming Financial Crisis" on http://www.saneramblings.com. But for now, if possible, pay down or renegotiate your credit card balances, place your savings in FDIC insured accounts and make sure your job is safe.

Dick

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Posted: Fri Jun 27, 2008 12:55 pm

Dear Reader,

When "How To Protect Yourself From The Coming Financial Crisis" was first published on November 20, 2007, it predicted the value of the dollar would get cut in half, real estate would lose 1/3 of its value, millions would lose their jobs and the price of gas would go up. At the time, just 7 months ago, it was hard for people to accept these predictions could happen.

But what a 7 months it has been. At that time, a barrel of oil traded for $99, today it trades for $140. The dollar has lost 20% of its value, real estate prices are falling and hundreds of thousands of people are losing their jobs. And our economy has begun an inflationary spiral that will soon be felt by everyone.

The U.S. government told the American people and the world things were fine. When they were proven wrong, they bailed out Bear Stearns, lowered interest rates which escalated the dollar's decline, borrowed $168 billion and sent it out as tax rebates and borrowed even more money to escalate their military spending, while pursuing tax cuts for the wealthy.

With such convoluted policies, it's no wonder the U.S. economy is falling apart and it will take global economies with it.

The good news is all of these rapidly growing problems can be fixed, but under new leadership, and only with your and my involvement. If you don't like high gas and grocery prices, and the future of America being drained by war, you're going to have to raise your voice and let the government know you mean business. For it is your government, not the Pentagon's not the lobbyists' and not the politicians'.

In the meantime, you and I have each other. If you review the postings since November 20th, you'll find numerous ways to save money or to take other constructive actions to protect yourself. And I encourage you to share your ideas as well.

We are headed for tough times but together we will get through them. As a result of the pain we will suffer, we will become more politically active, for if we don't we'll be ruled by fanatics and our Constitution will be a memory. We'll also become much wiser and more compassionate to others in need for we will better understand what it is like to be them.

Dick

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Posted: Sun Jun 08, 2008 12:41 pm

Dear Reader,

As this front page story from The New York Times shows, inflation is rapidly spreading through the U.S. economy. http://www.nytimes.com/2008/06/08/us/08oil.html?_r=1&th&emc=th&oref=slogin

And I will add, inflation is spreading throughout the world and it has begun spiraling upward with what will become grave consequences for all of us if the underlying issues are not resolved.

To protect yourself, it's crucial to be a wise shopper. Budget your money, buy only what you need, compare shop, clip coupons, and when you can afford to, buy in bulk from discounters like Costco and Wal-Mart. Also, use retailer club cards for additional discounts and shop for bargains online.

This Recession is going to grow far worse as the U.S. government continues to destroy the dollar with its massive deficit spending for wars, armaments and military bases, borrowing money as fast as it can, sinking ever deeper into debt instead of slashing its overhead.

And it continues to destroy the dollar by dropping interest rates instead of raising them, severely punishing nations that support the dollar and hurting Americans who save their money, a capital base the U.S. desperately needs.

Confronting Mr. Bush and the Pentagon to cut military spending is extremely hard for Congress which has shown no desire to do it. As for interest rates, world events will force the Federal Reserve Board to raise rates or the global marketplace will discount the face value of U.S. Treasury Bills. Either way, interest rates are going up.

But the good news is, when the situation becomes dire, and make no mistake it will become dire regardless of assurances you may see in the U.S media, we Americans will raise our voices together louder than the explosion of one of the Pentagon's thousands of nuclear bombs. And we will force the government to confront its mind numbing military expenditures and get its finances in order.

Please know that you are not alone in your concerns and that all of these financial problems can and will be solved.

The most important thing of all is for you to keep things in perspective and be thankful for the many blessings that are in your life. People who love you, your health, your happiness and the beauty that surrounds you. Every day be sure to enjoy each of God's gifts and be grateful to be alive, which is the greatest gift of all.

Dick

The column begins (Tue Nov 20, 2007) here: http://saneramblings.com/phpBB/viewtopic.php?t=217

You.. can be a millionaire.. and never pay taxes! You can be a millionaire.. and never pay taxes! You say.. "Steve.. how can I be a millionaire.. and never pay taxes?"

First.. get a million dollars.

Great advice for the coming crash, as well.

"People to deal with the financial crisis, get rid of your debt now!"

Oh ok... I'll just make a couple of calls. What a twit :eyes:

Don't incur any more debt. Keep working at lowering your overhead living expenses as no job is safe anymore. Not many can pay off their debts right away, however, declining to take a vacation and putting that money towards debt, eat at home, walk more, bike more, sell stuff you don't need. I am seriously considering cashing in my orphan 401k's and paying off my remaining student loans and small credit card balance before they dive any lower. I will have the 20% penalty but our income this year is much lower than in years past (less than half I think).

Also consider cultivating a hobby that can help generate some extra money--gardening/landscaping (set up gardens for people in their yards), woodworking, sewing, helping people get their computers setup and running with virus protection (you would be amazed how many people are running trojans on their computers)--and helping them maintain them every couple of months, setting up the home entertainment systems so one remote works all the components and teach them how to record a movie from the tv (Boomers are very lost with this skill and they can't afford to go out-- my uncle is one of them); cooking and catering, home organization, snow removal, put together a service that coordinates carpooling in your area (no limo license needed), etc.

Also review your subscriptions and services (cable, cell phone, home phone, magazines, internet stuff, etc.).

The less you have to spend going out, the less pressure you have and more freedom. Also, decreasing the stuff is also liberating and better to do it under your own control instead of at the hands of Mother Nature as our fellow citizens have experienced in the MidWest floods and West Coast wildfires.

Keep a stash of cash hidden very well at home, at least $1,000--emergency fund.