The Fed is doing its best, as the U.S. economy falters, but in the face of soaring spending by the U.S. government and without tax hikes, there are massive deficits and the Fed's options are limited. They also live with the political gridlock that prevents these issues from being seriously addressed.
Meanwhile, the Euro Zone economic structure is coming undone, as a Great Depression is taking hold in nations such as Portugal, Ireland, Italy, Greece and Spain, a Depression that will impact other economies across the world. If you doubt that, watch what happens as European and other banks and investors all over the globe suddenly face giant write offs in the face of sovereign debt defaults.
While China, wealthy as it is, has financial problems of its own and it has a substantial amount of its money frozen in U.S. Treasury Bills. I say "frozen" because if China was to try to raise money by selling those Treasury Bills, the market couldn't absorb it, leading to panic and market collapse.
So where does this leave you and me, and what can we to protect ourselves? This is my advice:
1) Take care of your health. Without
good health, you can do little to protect yourself and your loved ones at such a
crucial time. If you suffer from diabetes, heart disease and other often
preventable but severe diseases, do something about it, starting today. Begin
eating wisely, slashing junk foods and get some exercise. Your well-being
depends on it!
2) Protect your job. Cross train so you have more to offer
your employer, find ways to help generate revenue or cut costs because that is
how nearly every organization is now focused, be upbeat because no-one wants to
be near a complainer and word about complainers travels far and fast and tackle
jobs your boss feels are essential but doesn't want to personally do. And with a
smile, the more you can do to help others in your organization with their work,
the more support you will receive from them and this is a time when everyone
needs the support of others.
3) Slash your overhead. Sell-off unessential
items such as an extra car, or a motorcycle, boat or other toys you may no
longer be using but cost you money to keep. Pay down or pay-off your credit
cards for those monthly payments are eating your budget alive. If need be,
approach those credit providers to explain the dire nature of your finances and
try to get a forgiveness of some of your debt or better payment terms.
4)
Educate yourself with practical courses. Select online, extension or other
courses that can put money in your pocket such as those related to computers,
medical care or other much needed skills.
5) Make charitable donations.
To the extent you can afford to, please give generously to charities for in the
end, all we have is each other. And the donation you make now may help someone
else get back on his feet and in turn he may later help you get back on your
feet.
One final note: Together we will get through the horrors of this
financial crisis, for the world has had many financial crises and after
considerable hardship, it always survives them. During the 1930's Great
Depression, people came together to help one another and as times grow worse
that is what we will do now.
Dick
To read more on this topic, please see "Fed Warns of Risk to Economy: Central Bank Extends Bid to Lower Long-Term Rates, Stands Poised to Do More," The Wall Street Journal, http://online.wsj.com/article/SB10001424052702304765304577478580861436906.html. If The Wall Street Journal truncates this piece to non-subscribers, please search the title and you will find the article in full.
If you would like to see a 3 minute
humorous piece dealing with the faltering economies, http://www.youtube.com/watch?v=NOzR3UAyXao&feature=g-vrec Thank
you to my friend Michael Delees for sharing this with us.
No comments:
Post a Comment