The global economy is sick, in-fact it has been sick for a very long time and has been collectively covered up. But eventually like all lies, the truth does come out and by the time it does, those who were actively involved got out long before the signs of trouble started showing.
I am not a financial expert at all, I am just a web developer. However, I do keep on-top of what is going on in the world, and I don’t accept things at face value, I read into things and do research.
You’ve heard many people proclaiming the economy is going to implode once more and the effects will be worse than they were during the 2008 Global Financial Crisis. You’ve probably heard it repeated so much that you brush it off as conspiracy theory nonsense.
Remember in 2007 when experts started coming out of the woodwork warning people of the imminent GFC in 2008? People brushed them aside and called them nut-jobs, even the US government in particular right up to the end denied the economy was in a bad way. The knock-on effects of what happened during the GFC are still being felt by many today.
We very much live in a “in the moment” type of society. We have Twitter, we have Facebook and various means of obtaining news on just about anything the very moment it happens and as such have developed relatively short memories incapable of learning from past mistakes. Can you remember back to 2008? Do you even remember what caused the GFC?
The general perception of most is that what happened in 2008 was a relatively minor incident and in the greater scheme of things was nothing more than a bump in the road. The sad reality is things never got better. Even though the media and financial experts proclaimed things were improving and are currently okay, they know it is what they have to say.
The volatile nature of global financial markets that react even to the slightest form of panic would collapse if the truth were to ever be revealed as to how bad things are. The truth is dangerous and it is a known secret in most major financial industries that you never tell people things are bad until you have too.
Cyprus is a perfect example of what panic can do, people made gold rushes on their banks to withdraw money when they learned what was going on with their economy, the banks halted large withdrawals for quite a while as a result to stem any major damage.
It all comes down to debt. It is a double-edged sword, banking institutions and lenders need to lend people money to keep their businesses going and as witnessed with the sub-prime mortgages fiasco that partly caused the GFC, when people can’t pay back the debt it causes problems, especially when the amount that was lent cannot be recovered.
If you are like most, you most likely have one or more types of debt. Car loan, home loan, credit card or something else, chances are you have one or more of those types of debt. Say for example you have a credit card with $2500 owing on it, if the bank called you tomorrow and demanded you paid the amount back in full within one month, would you be able to make the payment?
I rephrase, would you be able to pay the $2500 back without getting into more debt elsewhere? If you’re like most, the answer is probably a resounding no. Puts it into perspective a little bit, right?
Debt coupled with rising food costs, the price of fuel in Australia being around $1.50 per liter and climbing, expensive public transport and low-salaries, people are struggling to make ends meet. Coupled with other costs of living like housing, electricity, water and clothing, you soon realise your perfect life is being held together by thin string capable of fraying at any given moment.
The real question is, are you prepared? Nobody can know for sure when things will get bad again, but the signs aren’t looking too good. Global unemployment rates are rising, industries like; retail, manufacturing and mining are stagnant.
You only have to devote an hour or so to research and see for yourself things aren’t as peachy-keen as they appear. While the economy might not collapse today, or tomorrow, it doesn’t mean it won’t happen eventually.
You should have a plan. Hopefully you won’t need to enact upon it, but it is good to be prepared:
- Write-up a savings plan. Work out how you are going to pay off your debt and whether or not a consolidated debt loan could be beneficial for you
- Consider investing in precious metals instead of stock. If the economy were to collapse, the only accepted form of currency would be something physical so; gold, silver, platinum or any other precious metal
- Before you go shopping, write up a loose meal plan for the week so you don’t end up buying more than you need. Planning meals ahead will save you a lot of money
- In an ideal world having at least six months worth of savings will help you through potentially troubling times like sickness or unemployment. Save whatever you can, put it away somewhere safe.
Ignorance is how people lost their homes, their jobs, livelihood and even lives during the 2008 GFC. Keep informed.