Today’s media is all gloom and doom. Sure, you can’t deny the facts. An article today proclaims:
U.S. job losses accelerated in January as 598,000 were slashed, the most in 34 years, and the unemployment rate soared to a 16-year high…
Last month’s job cuts were the most severe since December 1974, while the unemployment rate hit 7.6 percent, its highest level since September 1992…
January’s sharp drop in employment brings job losses to 3.6 million since the start of the recession in December 2007.
I spoke with my mother today, and she is freaking out just like Chicken Little. This isn’t something new, it’s been going on for awhile. It’s consumed her whole life to the point where she is borderline depressive. It’s kind of funny because out of everyone I know, she should have the least to worry about. She’s debt-free. That’s right – no credit card balances, no school payments, no house payment, and no car payments. She also has a steady job.
I’m the one who should be freaking out. My husband works in the construction industry, and my background is in manufacturing. We’re building a home right now, and we’ve surpassed our budget. We’re spending more than we take in. But I’m not freaking out. Why? I’m going to take steps to recession-proof my family. You should, too.
Let’s get back to my mother’s conversation. During our phone call, she expressed concern over the economy and the stimulus package. It’s no secret that we’re all worried about inflation, and some believe that the American dollar will become devalued as a result thus driving us back to a silver and gold system. I’ll give you one guess who believes in that philosophy. Yep, mom. Well, so does a brother-in-law of mine, but that’s a whole other post. There’s a big fault with the gold and silver system, though. It’s very limited in supply, and if we are all homeless and hungry, it’s unlikely that we’ll be eating gold nuggets or living in silver shillings. In that case, it’s basically worthless. A bartering system is much more feasible.
In high school, my Spanish teacher talked about her home country, Argentina. She explained that hyper-inflation was so bad, that people would put their money into durable goods such as washers and dryers versus depositing money in the bank. If you read the document I linked to, the Argentinean economy collapse is very similar to the path that America is on. We’re about to print a bunch of worthless dollars that our government has no backing for, and our citizens will be footing the bill. Yet still, is it worth losing sleep over? People in Argentina are still functioning.
In my next post, I’ll talk about some very simple, yet life-changing steps we can take to curb our spending and increase our savings. If you choose to buy gold, silver, or a washing machine with that money, that’s up to you.