I've just read a 'Financial Sense' article and have condensed it for you below. It's enough to make a show under "Financial Planning for working class whites".
Here's the essence of the article to give you perspective:
US Economy is similar, but worse than, the Japanese economy of the early 90's. Our idiots in DC will do what the Japanese did, which will prolong recovery.Here's the take-away point: We are an aging population going towards retirement, loaded with debt, and we WILL START SAVING OR GO HUNGRY IN OUR OLD AGE! THIS IS WHAT HAPPENED IN JAPAN! This means no stimulus package will work to jump start borrowing - - not possible. The bulk of people will pay down personal debt with tax rebates and other stimulus chicanery.
Do you get it? The population dynamics and current personal debt structure will not allow a loan-and-spend-strategy to function at all. Like Japan, it will take 10, maybe 20 years of down-going to correct the bursted festering bubbles.What do I advise?
Reduce your balance sheet. Sell the stock and bonds and pay off your house. Pay off your car, and keep cash (under the mattress cash). You have to make your move before everyone else does. If you wait and start dumping your paper investments when everyone else does, well....don't you see.....you'll be fucked just like them.Do not purchase your credit rating. In other words if your screwed because you have too much credit card debt, don't pay it. But don't file bankruptcy. There's too many of you. They can't go after all of you, just the low hanging fruit. Don't' worry so much about credit rating scores - most people have screwed up their credit. Good credit is a real rarity. Besides, loan-and-spend is the official policy, how can they cut you off. They can't completely cut you off.... They still think they can give you credit and you'll spend your way into new and stronger economy.
People are always caught by the "It can't happen here trap". Our folks can get a leg up on the opposition by getting out of stocks now. I have a stock portfolio - not that big - but it's not in retirement funds, and I'm going to sell it - - however, I do want to hear wall street wolf's opinion on the article first. I'll probably sell it anyway.One caveat: many folks have their savings in these idiotic 401K and IRA plans where they got to pile money in before income taxes. If the owner of the account is under age 59 and 1/2, they will experience a 10% "premature distribution penalty" PLUS they must pay the income taxes that were previously deferred. EVEN SO, You still get something greater than if you wait for the slow and painful slide to virtually nothing. On the back side you can see it's another Jew-trick-fuck scam built into the tax code.
What will I do with the cash from the sale of my stocks? - First of all, they will sell at a loss, so I will have no tax burden on the proceeds of sale. I will use some to pay down my house mortgage, keep some under the mattress, and buy silver with the balance. Thats the new definition of "Diversification of ones portfolio". I already have a nice size safe, otherwise that would be first on the list.I've started buying liquor in small bottles as you suggested, you know, just ever so often when I can remember to do so. These should keep for 10 years. ( I can't find the very small airplane size bottles). I stock more food than I used to and have encroached on the bedroom closets for more space. What the hell man, food is the fist thing to get horded when shit-hits-the-fan.
A penny saved is 2 pennies earned - no taxes due from cutting expenses. So, when I buy ketchup or similar staples, I buy a bunch. It will last about 2 years. I'm getting it at today's prices - not next year's prices. This strategy over a life time saves a bunch of money... not to mention taxes that would have been paid on the income needed to pay the higher prices.Also, I go to the gun shows and buy ammo for popular size calibers, like 9mm, 40 cal, and 45 cal for pistol amo, and I like the 223 cal or 5.56 MM and the 308 cal rifle ammo. I'm told these are the most common size bullets. Prices have doubled over the course of a year. This stuff will last for ever, it does not rot. The risk of getting too much is if a fire breaks out, or if I am burglarized. Some one said Oboma is the number one gun salesman in the history of the world. Its true, sales are brisk, and prices have gone way up. A suggestion for you guys buying guns; better learn how to use them, and further still learn how to trouble shoot malfunctions. Here is a web site where one can buy a video on how to strip, repair, and maintain firearms. I'm a satisfied customer and recommend their training DVD's. Here's a link to their Armorer's courses for the different guns. Each gun has its own video:
http://www.americangunsmith.com/index.php?id=9