Posted by Gail the Actuary on January 6, 2009 - 10:10am
In this post, I consider some major issues contributing to our current financial problems, before making a financial forecast for 2009. These are
1. Why so many asset classes are so highly correlated in times of distress. This chart gives my interpretation of part of the problem.
2. Why growth is essential for keeping the current debt-based financial system operating.
3. Where we are now, and the role reduced resources (including peak oil) are likely to play as we go forward.
4. My forecast for 2009.
Read on...
This is a long but worthwhile post. Peacenik particularly enjoyed many of the comments. Lots of back and forth on the inflation/deflation debate. And lots of good advice on what to do to prepare for the future.
Peacenik likes Citizen_Anarchists advice in the comments: "2. Take all the cash except for 2 years worth of payments,and turn it into solid tangible goods. Minimum 1 year food and water. Preferably more. Silver coin, some gold coin and a few other hard metals of value. Buy as much tradeable supply as possible, be it ammo, guns, farm tools, livestock that can be boarded at remote farm, seed ,booze, meds, etc. Find a safe place out of any large city to keep most of it. Friend or family, even locked storage will work.
Buy the most fuel effecient ICE small car you can find. Honda FIT or VW Rabbit TDI. Pay cash for it. Do not buy a Hybrid. Buy a small quality trailer to pull with it and learn how to use it. Buy a few years worth of spare parts, tires, oil and filters. Gas WILL be available on and off for a few years, but buy a few good bikes with spare parts. . Easy to trade as well. Quality counts much more than quantity in all your tangibles." Citizen_Anarchist is not a Jehovah's Witness. He works for FEMA. Peacenik hopes Citizen_Anarchist is over-the-top.
In this post, I consider some major issues contributing to our current financial problems, before making a financial forecast for 2009. These are
1. Why so many asset classes are so highly correlated in times of distress. This chart gives my interpretation of part of the problem.
2. Why growth is essential for keeping the current debt-based financial system operating.
3. Where we are now, and the role reduced resources (including peak oil) are likely to play as we go forward.
4. My forecast for 2009.
Read on...
This is a long but worthwhile post. Peacenik particularly enjoyed many of the comments. Lots of back and forth on the inflation/deflation debate. And lots of good advice on what to do to prepare for the future.
Peacenik likes Citizen_Anarchists advice in the comments: "2. Take all the cash except for 2 years worth of payments,and turn it into solid tangible goods. Minimum 1 year food and water. Preferably more. Silver coin, some gold coin and a few other hard metals of value. Buy as much tradeable supply as possible, be it ammo, guns, farm tools, livestock that can be boarded at remote farm, seed ,booze, meds, etc. Find a safe place out of any large city to keep most of it. Friend or family, even locked storage will work.
Buy the most fuel effecient ICE small car you can find. Honda FIT or VW Rabbit TDI. Pay cash for it. Do not buy a Hybrid. Buy a small quality trailer to pull with it and learn how to use it. Buy a few years worth of spare parts, tires, oil and filters. Gas WILL be available on and off for a few years, but buy a few good bikes with spare parts. . Easy to trade as well. Quality counts much more than quantity in all your tangibles." Citizen_Anarchist is not a Jehovah's Witness. He works for FEMA. Peacenik hopes Citizen_Anarchist is over-the-top.
