To the brethren court and Jen,
Today's Laugh Line: "President Obama's top economic adviser, a man named Austan Goolsbee, is stepping down: He will be replaced by something a little more effective ... the magic 8-ball." - Jay Leno
On a more serious note, thanks so much for the comments that were posted! I actually thought the same regarding "a freakin pause button" while I sat through the entire video beginning at 1:30 AM! The second comment, "if America falls..." has been the subject of many personal reveries. Recently a Chinese finance official (my apologies, I can't remember his name) has warned that by not raising the debt ceiling come August 2, 2011 that the U.S. is "playing with fire." India, another country who own a large amount of dollars, does not believe that the U.S. would actually let a default happen as the resulting impact on the global economy could be potentially catastrophic. Yet many current republicans are of the opinion that allowing a temporary default (potentially 3 to 4 days) would benefit the U.S. economy, "forcing dramatic spending cuts." They claim our debtors won't mind waiting 3 to 4 days for their interest payments if it means that they are more likely to received future owed monies once the our economy is, for lack of a better word, "fixed."
In any case, I intend to pursue that matter a bit further and attempt to understand what the recommendations are the of people I actually respect in the field. More on that later...
In the meantime, I wish to raise a separate, but related topic: the mentality of preparedness. Some claim that there’s no need to prepare for e.g. 2012, or the fall of U.S. dollar as the world reserve currency. Others are quite prepared, fully stocked and ready to go. Most are just beginning to sense that it’s a good idea to stock up on food and stuff the garage with camping gear and water purification. Still, there are many avenues of distraction, varied responsibilities to attend to, and a lot of noise in the environment.
Where—and how—does one begin such a daunting task? I am of the opinion that the key is to embrace change. To the extent that one can, make it a daily practice. Though it is not ideal, one should accept during times of extreme uncertainty, taking "risks" and "gut feelings" are pretty much all of we truly have. The question remains how do we balance "gut feeling" with a well thought out plan? Ideas?
I leave the remaining lines for you to fill with notions.
Until we meet again, "Be the change you want to see in this world" - Mahatma Gandhi
Nav
After all the natural disasters that have been happening recently, I've been looking in to more how to protect myself in terms of man-versus-nature type of survival. I will absolutely admit, however, that I am a bit lost as how to prepare my finances in the event of a government collapse. Should I buy foreign bonds? Sell my existing stock while it's still at a somewhat high? Dig a hole in my backyard, hide the cash, and have a really good guarddog?
ReplyDeleteTo be honest, this issue of financial and material security has been on my mind a lot in the past couple years. I think it is actually pretty easy to psyche ourselves into thinking the world as we know it is going to end for a variety of reasons. Will there be huge global economic and social changes in our lives? I believe so. The question is when. It is hard for me to picture that by 2012, all heck will break loose. The probability of U.S. defaulting on its debt in the next few years is rather miniscule. I believe there is enough momentum in our economic strength in our country to power through another financial crisis if necessary. However, will we be able to keep ourselves going like this for another 10 years? I have some serious doubts. With this view of the future, I think we should have different plans for our financial and material security in the short to medium term vs. long term.
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ReplyDeleteHere is an article about the possible setup for the next major economic down turn:
ReplyDeletehttp://www.thestreet.com/print/story/11155946.html
It doesn't apply to most, but I say you won't see much change if you have nothing to lose. And if you do have things to lose, hang on tightly and let go lightly. It doesn't take much to get bye in the day to day if your mind has a home. Everything else is impermanent. And the pattern will continue. :)
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