If / When The Shit Hits The Fan

  • metta

    Posts: 39139

    May 25, 2009 3:55 AM GMT
    With so many single gay people, many of us just don't have anyone else to fall back on. We are responsible for ourselves, which makes it even more important for us to be fiscally responsible and to try and plan ahead when we can.

    Many people see major inflation trouble in the near future in the US. And I mean a level of inflation may happen that the US has never seen before. Some people say "they wont let that happen" but I really don't think that "they" (the government) really have have the ability to stop what is coming. It is just a guess but the signs do point to that.

    That being said, i think that it is important for us to do what we can to protect ourselves as much as possible from inflation. There is not a lot we can do but there are some things.

    Please use this thread to share your ideas on what we can do to protect ourselves, the best that we can, from inflation.




    - grow your own vegetable gardens. With the potential of huge increases in costs of everything, growing your own food will not only be healthy for you, it can help reduce your food costs.

    - pay off your credit card debt. With inflation, high(er) interest rates are sure to follow.

    - Buy a home with a fixed payment, not adjustable. To protect yourself from huge jumps in rent. Getting fixed debt right now is actually a very good thing to do prior to inflation if you have stable income. The debt becomes worth less as inflation increases. But it is still important to be conservative in how much debt you take on.

    - Minimize your expenses and save what you can.

    - Put your money in........ ? This one I get lost. I have tried to do research and there is just no perfect answer here. But doing nothing seems like a bad idea to me as well.



    (I have read estimates that some people think that the stock market will start to move downward around mid June. Some people are also saying that we will see major businesses collapse around September/October of this year).
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    May 25, 2009 4:11 AM GMT
    On another forum that I'm on, a few people seem to be investing their money in precious metals. I'm kinda iffy on that. But at the same time, I'm definitely not investing in Wall Street.
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    May 25, 2009 5:41 AM GMT
    I have a couple of Suze Orman's books. Very good information in them and she is a member of the tribe to boot...icon_razz.gif
  • metta

    Posts: 39139

    May 25, 2009 5:58 AM GMT
    What do you guys think of TIPS?

    http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm
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    May 25, 2009 6:02 AM GMT
    I got out of equities last summer, and real estate 18 months ago. Gold is a good bet, as are base commodities (oil, food). I'd also shoot for a mixed bag of foreign currency.
  • metta

    Posts: 39139

    May 25, 2009 6:16 AM GMT


    Prepare to fight inflation monster

    http://www.courierpostonline.com/article/20090501/BUSINESS01/905010328/-1/newsfront2/Prepare+to+fight+inflation+monster
  • coolarmydude

    Posts: 9190

    May 25, 2009 12:22 PM GMT
    I agree with jprichva. I think we've already started deflation and it's going to get worse before it gets better. The best way to protect from deflation is to save as much money as possible and not tie it in to some risk and buy on these deflationary great deals for yourself. Savings is the best fiscal response to an emergency or dire financial situation. The government doesn't teach us that because savings protect you and not their interests. View your finances on your personal level, not the micro- or macro-economic levels.
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    May 25, 2009 3:17 PM GMT
    jprichva saidI'd be worrying more about DEflation if I were you. Inflation? Not likely, not soon.

    The inflation talk is tied into the Republican talking points about "how much money we're spending." Simple truth: inflation has trended DOWN in the past few months, and deflation is much scarier. Most central banks know how to combat inflation. Once the deflation hits, it's very hard to cure.

    Note that people are spending less these days. This encourages price-cutting on the retail side, which in turn teaches people to wait longer and longer to buy things, since the price may be headed down. As the recession/depression continues, demand for both durable goods and---yes--commodities continues to sink.

    We're already halfway to some serious deflation, and you're worried about inflation? Stop listening to Republicans, and for heaven's sake stop listening to that nincompoop Suze Orman. Even though she's a dyke.


    Yeah I agree with you deflation is what's on the horizon.
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    May 25, 2009 3:24 PM GMT
    Put your money in ammo.
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    May 25, 2009 4:14 PM GMT

    Just some general thoughts guys...

    Your financial decisions should be based upon your relative level of income.

    As an example, if you are a mid-level manager making $120,000 in salary from company X: your nest egg is likely a 401k plan. If you have flexibility within the plan to move within asset classes, e.g., stocks, bonds, ETF's, move assets to those products that can ore easily ramp up pricing to match inflation.

    On the other end, it becomes more challenging and to be honest more "profiltable" each time the political winds change, each time the economy rises or falls. Basically DO NOT make your financial decisions based upon your party affiliation. If one party is screaming deflation while another is screaming inflation: don't be stupid. Make your decisions based upon factual DATA, not opinion.

    In general I would pull assets forward to more liquid asset classes. These classes change. As an example, real estate. While there are great deals out there at the moment, they are not very liquid should you need to move the cash your placed in.....out. There are exceptions to this. As an example I purchased acerage near a Kia plant start-up and sol it within 2 months. All within the last 9 months.

    More thoughts later. Think strategically, act tactically. icon_biggrin.gif
  • metta

    Posts: 39139

    May 25, 2009 4:51 PM GMT
    Inflation Vs. Deflation

    http://www.bondbuyer.com/article.html?id=20090519K3PONS57
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    May 25, 2009 4:58 PM GMT
    This diary is the equivalent of a push poll. Propaganda enveloped in a question: by answering the question you buy the propaganda.

    Why I'm not worried about inflation: the fed has a tremendous amount of room to tighten the money supply by raising interest rates, which are now so low money is essentially being loaned free.
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    May 25, 2009 5:10 PM GMT
    Not really inflation or recession driven, but I've been doing an on-going project to make myself more energy sparing - drive less, find ways to make my homes more efficient, etc. So far I seem to have saved about 30% on my pre-project energy bills; and it's actually a lot of fun finding better and better ways to use less and less.
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    May 25, 2009 6:13 PM GMT
    all of this advice coming from people who evidently are in a position to take it. what about those of us who were wiped out and don't have these options? aside from growing tomatoes in my back yard, what suggestions do you have for US?
  • jeffper1

    Posts: 148

    May 25, 2009 6:28 PM GMT
    hi metta......i agree....if single, gay or st8, planning is crucial. at 52, and with early retirement....i cannot live off the retirement income. i need that income i had before to continue the lifestyle i have led. (btw....always use the 401K plan at it's max).
    i kinda think, or believe, our situation has hit its peak... and we will start to see some rebound. this is evident in the housing market and unemployment stats. i have also heard of other countries beginning to see an economic shift for the better.
    i live 11 miles out of san francisco, a tough economic area to begin with. however i have so much invested here. i want to leave and move to where its easier.....but i lose out on so much more. however, if there is no food on the table....wyoming and a farm are certainly not out of the question. nor is the philippines.....i am one quarter filipino.
    and yes....stop spending.......my boys here can eat a $1 banquet frozen dinner for lunch...or cup of noodles or salami sandwich.....it still provides nutrients to live on. later on.....we will dine on steaks and caviar.
    thanks for the insight and allowing me to vent.
    happy memorial day....to mom/dad/auntie/brother/etc.
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    May 25, 2009 7:32 PM GMT
    dancerjack saidall of this advice coming from people who evidently are in a position to take it. what about those of us who were wiped out and don't have these options? aside from growing tomatoes in my back yard, what suggestions do you have for US?


    The greatest gift one can have -- other than life and health -- is financial choice. I say choice and not freedom, because freedom is an antecedent to choice. As an example, the Bush tax cuts will expire in 2010 and 2011. I will not pay more taxes in 2012 because I have the freedom to choose not to have taxable income in 2012. I'm simply going to realize the vast portion of personal and corporate income in 2009. Hopefully Congress will vote to increase the debt ceiling.

    From your comment above, it sounds like you do not have that choice. That is beyond unfortunate. You may be an American who will have to rely on increased unemployment benefits, food stamps, and the other social net programs. Use them.

    .
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    May 26, 2009 5:43 AM GMT
    that is humiliating to a degree i'm not sure i can tolerate, but needs before wants. yes? hopefully it won't come to that.