It’s always a fine line as to speaking about challenging news. On one hand, if we have access to information we can prepare in any way we choose. This kind of “heads-up” has been beneficial in the past.
Prior to the 2008 economic downturn, Scott and I were able to help our viewers, families and friends prepare for a rough time. Some took action and got out of vulnerable investments and purchased things of value. Others didn’t believe what we said and lost a good percentage of their assets, some of which has been recovered since then.
Anyone who chose to stay in their home and ride it out has since lost anywhere from 15% to 60% in their home’s value. That’s not a problem, however, when you are living in the home that you love and wish to stay in. The value then becomes a relative thing. For those investing in real estate, however, this has been a big problem.
It’s expected in many investment circles that after August 3rd, the Federal Reserve will crank up the printing presses again and issue trillions of unbacked dollars. This will have a negative impact on the U.S. dollar, which, in turn, will likely have a negative impact on the global economy, which is already struggling. It’s value is neck in neck with the Euro to see who can hit bottom first. In spite of the charade we call politics, the outcome is already known by all parties. All of them are elbowing and posturing for the 2012 elections. They think we’re too stupid to notice the game.
The (non) Federal Reserve will look to serve itself first, to keep our tax dollars pouring into their coffers to service the un-payable public debt, even though it was anyone but the Public who got us into this. They will create these dollars that they will charge interest on out of nothing. These private money men will be paid millions in interest for no investment on their part. Hopefully this will be followed by a tax payer’s rebellion because taxes are also expected to rise amidst these economic challenges.
The immediate net effect of this action is said to be a rapid drop in the value of bank stocks – but with no bailout following this time. This will have many repercussions.
The next effect is expected to be a rapid rise in food prices. This we can prepare for to the extent we are capable. This trend is so obvious now that, while having dinner with three friends recently, everyone mentioned being shocked at the rise in food prices – and we haven’t seen anything yet. If you can stock up on some essentials, it may be a good idea. If life trundles on as normal, well then learn how to spice those beans and rice because you’ll be eating a lot of them until your stash runs out!
Anything that requires long distance shipping (high fuel prices) or foreign goods (devalued dollar) might be good to consider for your little stockpile. You might also take this opportunity to replace any elderly or ailing appliances that can’t be repaired or reconditioned as appliances may take a big leap in prices as well.
I share this because it is appearing that these events are inevitable. These are small suggestions in answer to a big problem, but it’s good to know the basics and the little things are in order.