tag:blogger.com,1999:blog-6244999628674918029.post1511150381313774138..comments2024-03-28T08:49:18.096-05:00Comments on Bayou Renaissance Man: Preparing for economic hard timesPeterhttp://www.blogger.com/profile/10595089829300831372noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6244999628674918029.post-55596938087032583242014-02-13T08:27:53.213-06:002014-02-13T08:27:53.213-06:00Personally, I keep my debt low but not zero. Hype...Personally, I keep my debt low but not zero. Hyperinflation is, to me, the most frightening potential aspect of an economic collapse. Those who lent money will want it back. I carry sufficient reserves to pay off all debt virtually instantly and that would be a relatively good thing if money was rapidly devaluing. <br /><br />So I'd own all my major assets, in particular my home (shelter) outright. Or would I? Many of us who live in the higher tax areas of the nation, after 15 or so years in our homes, owe as much, or nearly so, to annual property tax payments as we do to the mortgage. And that will not likely go down - taxes never really do.<br /><br />Economic crisis, loss of job, hyperinflation and I go from quite comfortable to virtually broke in a matter of a few months or so. And then a government entity starved for cash starts raising my taxes until I cannot pay them. <br /><br />Unless one lives very remotely or in some place I am unaware of, one cannot escape debt. The taxman will impose it on you whether you like it or not.Knuckleheadhttps://www.blogger.com/profile/09245646229814895145noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-49358137265108408862014-02-12T13:52:14.280-06:002014-02-12T13:52:14.280-06:00Oleg-
I have pondered this question-on the sur...Oleg- <br /> I have pondered this question-on the surface, it sounds fine- pay down the debt with devalued dollars- <br /> the huge downside is this- you are making the gamble that your cash flow in troubled times will be enough to cover the expanded debt load- this may be just the time your job goes away and leaves you with a debt you cannot pay. ravennoreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-6427380716761833102014-02-12T13:16:34.218-06:002014-02-12T13:16:34.218-06:00@Oleg: Yes, if you can get a fixed-interest-rate ...@Oleg: Yes, if you can get a fixed-interest-rate line of credit at a low rate. That generally applies only to home loans, and today it's harder to get than it used to be. Furthermore, you can expect legislation to allow lenders to ramp up their interest rates in a high-inflation environment, even if the contracts don't allow for it. That's happened elsewhere, when the lenders have bribed the legislators (ahem - sorry - "contributed to their re-election campaigns").<br /><br />In general, if you're heavily in debt, the lenders own your ass even more than does the government. Not a happy situation in which to find yourself.Peterhttps://www.blogger.com/profile/10595089829300831372noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-16777157067801852312014-02-12T12:27:40.938-06:002014-02-12T12:27:40.938-06:00Wouldn't carrying MORE debt make sense if expe...Wouldn't carrying MORE debt make sense if expecting hyper-inflation? You'd be paying it off with much-depreciated dollars.Oleg Volkhttps://www.blogger.com/profile/06547911680603650247noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-43371022357519875802014-02-12T11:47:18.642-06:002014-02-12T11:47:18.642-06:00I would agree that we are looking at a probably ec...I would agree that we are looking at a probably economic collapse. I would also agree with the thinking about how the entitled class will be pissed when the EBT card no longer works. <br /><br />It remains to be seen how bad things will be, but I am pretty sure something will come out of the mess as there is just too much information to return to the dark ages. <br /><br />And here I had been looking forward to the day I could retire. Oh well.<br />Paulhttps://www.blogger.com/profile/15708868713277676628noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-52671528885320845222014-02-12T11:13:36.327-06:002014-02-12T11:13:36.327-06:00You're welcome Peter. I'm a little surpris...You're welcome Peter. I'm a little surprised SWOT hasn't come up more frequently on prepper blogs; it's a pretty useful technique. <br /><br />BTW, thanks for A and O. Terrific read. Inconsiderate Bastardnoreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-46577865300343549232014-02-12T06:29:31.322-06:002014-02-12T06:29:31.322-06:00@Inconsiderate Bastard: It's great to see you...@Inconsiderate Bastard: It's great to see you mention a SWOT analysis. I've used the technique for decades. In fact, I think I'll put up a lengthy post about it soon, to introduce people to such a useful planning tool. Thanks!Peterhttps://www.blogger.com/profile/10595089829300831372noreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-23328814839411236992014-02-12T04:44:09.187-06:002014-02-12T04:44:09.187-06:00One thing that a lot of people don't think abo...One thing that a lot of people don't think about, but is kind of understood in this post, is the value of social connections. <br />You need a network of people you can count on. <br /><br />Security is much easier if you know your neighbors and you are looking out for each other. Bartering is a lot easier if you know the people you are dealing with, so you know they can be trusted and you know who to ask for the things you need.<br />If you need your house or car fixed, it pays to know a reliable handyman willing to do the job under the table and not cheat you.<br /> Knowing anyone with medical training is priceless when the healthcare system fail, or simply refuse you access. If you get sick or loose your job, having a household member or good friend that can help you out could actually save your life. And so on.Eriknoreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-11865078682940415132014-02-12T04:00:56.343-06:002014-02-12T04:00:56.343-06:00A suggestion: perform a SWOT Analysis for your liv...A suggestion: perform a SWOT Analysis for your living situation. <br />S-Strengths W-Weaknesses O-Opportunities T-Threats.<br /><br />A good SWOT analysis (a poor one is less than useless) will not be done in a few minutes, nor will it be done talking over your shoulder while doing the dishes.<br /><br />Banish the non-contributing distractions (children and pets), focus on the task and commit to at least an hour a night for a week to 10 days. Be brutally honest about your situation, capabilities and needs - if it's not concrete and verifiable it's fantasy. Fantasy kills. <br /><br />After building the Preparedness Puzzle with your SWOT Analysis, <i>ruthlessly</i> establish priorities - what gets done first, to what degree, and how many phases are there in that particular component. You can do things in parallel; for example, buying a few extra cans of food each shopping trip does not preclude adding to the woodpile or trading what you don't use for stuff you do use. Example: Are you saving your now-a-teenager's baby clothes? Someone a)can use those baby clothes and; b)will pay <i>something</i> for clean, good condition baby clothes. Maybe not much, but $25 for the lot is $25 of canned food you don't have now. <br /><br />And be realistic. A spiffy, new AR-10 rifle and 20 magazines for it is great, but two used and reliable lever action rifles in 357 magnum and 500 rounds of ammo is better, and what you don't spend on the AR-10 is more food in the pantry.<br /><br />Spring is coming, and that means winter clothing sales. We will have another winter in 6-8 months, plan ahead. Thrift stores are good sources - people clean out their closets and donate stuff. <br /><br />Perform a good SWOT Analysis, then build a priority list from it and <i>stick to the plan</i>. Inconsiderate Bastardnoreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-22453843482565804772014-02-12T01:14:51.455-06:002014-02-12T01:14:51.455-06:00As per the 1st comment, very timely advice indeed,...As per the 1st comment, very timely advice indeed, all of it quite relevant.<br /> Unfortunately, your last paragraph has no application in the country of my birth, Australia.<br /> Since the Port Arthur massacre by(...), his name NEVER to be uttered, and the Governments knee-jerk reaction of banning, or SEVERELY restricting the ownership of firearms, and yes, that includes B.B. guns, (firearms?), it is virtually impossible in Australia to take firm actions to protect self and family in the family home.<br />If attacked, in public or at home, the defence actions by the victim are put under the most minute scrutiny by the Judiciary, who decide what is, or isn't appropriate force', taken in self defence.<br /><br />It is financially crippling for a victim to put up a defence, yet, the attacker invariably gets Legal Aid.<br /><br />They haven't grasped one singular point, a very important point.<br /> When under threat, and you have nothing but your hands, and whatever is in the house, you will fight to the death, because you have no stand-off deterrent.<br />As a Police Officer told me three decades ago, when I asked, 'What if I killed an intruder when defending myself or my family'?.<br /> His reply, strictly off the record?.<br />'Throw the body in the street, then drink as much alcohol as you can hold when you're finished, and go to bed, because as far as I'm concerned, the bastard fell out of the sky, and you were quite drunk before and after'.<br />I have kept a bottle of rum (poison of choice) in my house ever since.<br />Of course, I rotate the stock, just in case it goes óff'.Stu Annonymousnoreply@blogger.comtag:blogger.com,1999:blog-6244999628674918029.post-32276995139116482662014-02-11T22:48:20.668-06:002014-02-11T22:48:20.668-06:00Thanks Peter:
I have asked numerous "the sky ...Thanks Peter:<br />I have asked numerous "the sky will fall" folks how and what to do to prepare and I always get some high minded answers. Your answers are what I was hoping for....simple, straight to the point and ON point!<br />About 3 years ago my wife lost her job for 6 months...boy did that slap me in the face. I found out I was living pay check to pay check and really didn't know it. How could I not know that? Simple, I let my wife take care of the bills and the check book. Now after almost losing the house, almost going into bankruptcy, and eating beans and rice for a while; I've learned to manage my finances a whole bunch better! And I know how much I have in my accounts and which bill will be due this week.<br />So after 3 years and doing #1 on your list; paying down debt, all I have left is the mortgage.<br />It looks like #2 is the thing I'm gonna have to wrestle with this summer...kinda tough considering some of the stuff I've had since I was a kid, but oh well, time to get the last bit of debt off my neck!<br />Once again thanks for the clear and concise list of attainable goals.<br />SteveAnonymousnoreply@blogger.com