Thursday 11 October 2018

“Shields are made of metal, not paper.”

If any video doesn’t open, click on the link below it.

The opinions in this post are my opinions, (I’m not an expert on money matters) and some experts’ opinions. Some of the latter may be selling a product, but their advice may still be good. In all financial matters you should always do your own research, and make your own decisions. 

Persons suffering from diagnosed anxiety or depression should make sure they are taking their prescribed dose of medication before reading this post. 

Brother can you spare a dime:

While I was compiling this post this week, the world’s stock markets drastically fell. I have been predicting a recession for some time. To me, empty surplus new apartments in the city, a housing price bubble, some companies failing or contracting, record personal, housing and business debt; relaxation of banking and finance companies’ regulations, countries like China and Italy struggling; combined , remind me of the late 1980s before the crash, and before the recession of 1990.

“Shields are made of metal, not paper” - Lynette Zang. Meaning: holding 5-20% of metals (silver and gold ) in your portfolio in these times is wise. Cash, too. 

I don’t endorse all of this man’s opinions on some of his videos, but he imagines the next Great Depression for us here:

“The emphasis on interest rates and deregulation at least reminds us that what we are dealing with is essentially a financial event. The recession of 1990-91 was dominated by financial failure. In most cases, it was the fall in asset prices that meant that loans could not be repaid, thus transferring the distress to financial institutions.”

— Ian Macfarlane, former Governor of the Reserve Bank of Australia, speaking in 2006.

Most people seem to be spending up and borrowing as though the next crash and recession isn’t just around the corner. It is, and we are due for more than just a correction. Many things are overpriced. Bull runs and high property prices don’t last, folks!

I believe people need to save, save , save money in case they lose their jobs, put investments somewhere safe (like gold or silver, or even cash) diversify investments, and similar defensive tactics. 

Do I think that Trump could turn a recession into a great depression? Well, he is a past bankrupt, so I can’t feel that he is an expert in these matters. What could cause that, also , is that governments around the world have SO MUCH DEBT. In the last recession they made huge stimulus payments. How are they going to afford to do that now? Depending on the size of their economies they owe billions, or trillions. 

The other thing I am certain will happen, is that economies will come out of the next recession/depression, with most of the workforce made up of robots and A1. As the economies tank, human workers will be sacked as is normal in those times. They just won’t be reinstated, as the economy improves, in most cases. In Australia, “hiring” a robot costs only $16 au. That’s lower than the minimum wage, and they don’t require superannuation, workers compensation (Work Cover) insurance, sick leave, holiday pay, parental leave pay, etc.

If you don’t have a large vegetable garden, plant one. Plant fruit trees. Get chickens or a goat. Learn self defence. None of these things can hurt your life, and you just might need them. 

Background research

How best to prepare for a recession

——————————————— (I would add, build vegetable gardens if you have a yard). One person’s opinion:


There is a shock coming': why markets should brace for trouble:

Article about USA:

[FAQ] CRASH PLANNING: 401k, Annuities, ETF's, IRA, Stocks & Bonds

They Called the Last Financial Crisis. Here’s What They See Causing the Next One

Articles about UK:


Articles about Australia:

Our weakest link: Australian suburbs most at risk

I have no association with any company mentioned here , do not endorse any, and receive no payment from them. Articles and videos were sourced from Google searches and my news feed. My opinions are just that, however, I have lived through two recessions as an adult. It wasn’t easy. 


Running on empty said...

The markets have made rallies and fallen again. Here, house prices are falling in the city “$1000 a week”. Experts are only divided as to how far they will fall, to 40%?

Parliament today, was working on a bill to prosecute companies who don’t pay their workers their earned entitlements, in the event that they go bust. Just in time, I’d say. Lay offs are probably coming, if the bank loan sector contracts, and businesses can’t grow.

Every worker should be paying income protection insurance, especially if they have debts, but also for bills.

Rina said...

You may not be an expert, but your opinions are very valuable, I think. Al Gore's The Future is a sobering read and makes some of the same points you make.

Running on empty said...

Thankyou, Rina, I will look into that.