Financial Advice - Worsening US Economy

[IsaacT]

Hello,

So I was browsing around online when I came across THIS video. It has a lot to say about the future of the US Economy and offers a lot of advice on how to protect yourself from rapid inflation in the future.

I consider most of you friends and thought you might benefit from this knowledge. I would like this thread to be a place where we can discuss our options and the feasibility of different investments. I am a student working a low paying job, and after seeing this my plan is to save as much money as possible over the next year or so. I am considering investing in currency etf's to protect myself from the decline of value in US currency.

Anyway, I look forward to hearing any and all advice on this matter. Many of you have a lot of knowledge about economics I am sure, and I would like to tap that resource.

Thanks,
Isaac

 

[scumbagatheist]

I'll jump in.

What is exciting, and potentially as important or more, is the movement to re-democratize labor and the economy. Co-ops may very well be the future of the economy, and now, there are over 10k employee-owned companies!

 

[ARG]

US currency is going up as far as I know, my Canadian dollar was at par with the USD for a while, but now it's back in the favor the of the US

It's slowly going up again.

Edit: It could also be that the Canadian dollar is falling in value.

 

[Lazerbeak]

I'm watching the video and just wanted to add some thoughts. I've had the opportunity to be involved with a lot of different fields, manufacturing, wholesale, real estate and insurance/investments among others. I'm in no way an expert in any, I'm just a tech guy, but the perspective is interesting. I've seen the results of people who lost half their retirement buying into "solid" investments and seen people lose their homes behind using adjustable rate mortgages to buy a home.

The U.S. is actually better off than Europe and Asia in a lot of ways. Japan has been lowering the value of their currency to force their goods to be more competitive. The European Union is not doing well at all with their debts. If America can weather the storm in the next few years we will be in a much better place. Unfortunately it is survival by attrition. A Wholesaler I know is basically the last man standing. Very large businesses are going bankrupt. Large investment groups seem to be gobbling up everybody that's left. Its a trend that has been going on for years. I heard through the grapevine that even Harbor F. is going to be having major issues very soon. China is not doing as well as they'd like the rest of the world to think. They are having major issues with workers and their new found power. The internet has allowed people to speak out against corruption and allowed workers to organize. A huge change. All the manufacturers I know of are having back order issues because of China's worker issue.

Maybe its not going to be a period of prosperity and there are major hurdles. Banks and the Feds are holding on to millions of foreclosed properties as shadow inventory. But if America can just make it though this current period, things will be easier than they have been. Issac is very right in making a choice to save as much as possible. The people who saved in the past are buying up homes all cash at significant discounts and at least right now housing prices where I'm at are going up.

I don't really have any real answers, but just thought I'd add my observations.

~ LB

 

[InfinitusEquitas]

Expanding a little on the China conundrum, one aspect of the rise of china is that the population that powered the rise is quite literally aging.

The inequality there, is also becoming a lot more stark, and infrastructure, while incredible in some places, is severely lacking in others.

In terms of where the US is headed... on the one hand I expect another stock market meltdown. On the other... there is going to be a significant rise in oil production, which should serve to boost the economy.

My only advice is eliminate debt, try to save, and spread your money into different types of investments (if you have money to invest that is). Personally I'm in the first and second stage of the process, but looking forward to being 100% debt free by the end of the year.

At the end of the day, one hard learned lesson, is don't buy things you can't pay for, assuming no further income at all, from the time of purchase. Don't sign a lease, or take out a loan, if you can't cover the payments for at least 6 months.

 

[Zathras]

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[Zathras]

deleted

 

[Mohrenberg]

Just buy gold....

 

[csshih]

Just buy gold....

Have you seen spot prices? 24-hour Spot Chart - Gold
Will it go up, or down?

 

[Mohrenberg]

It'll go up. always does.
I just wish i had bought gold 10 years ago. but what the hell does an 18 year old care about gold.....

 

[csshih]

It'll go up. always does.
I just wish i had bought gold 10 years ago. but what the hell does an 18 year old care about gold.....

Probably, but how long of a haul are you in for? the ROI on gold would have been 3x if you purchased it 10 years ago, but do you think you wouldn't have been able to invest that in some sort of business (your website ) and gotten that return?

IMO, investing in gold is for people with more money than they know what to do with, investment wise. Well, pretty much the same with stocks in general.

Though, with the recent crash, APY on gold is like.. 10%. Very close to a decent mutual fund.

Hindsight is 20/20.

 

[benmwv]

I care about gold! (18 here )

If only I had the money to buy it...

College is damn expensive. Especially when you work at mcdonalds.

 

[Sigurthr]

Where I live is so far removed from the rest of the economy and society that we're pretty much just now getting to the height of the recession. Economic trends tend to take twice as long to take hold up here and then stay for three times as long. It is basically a fishbowl economy. About two years ago the recession seemed to really begin, and it had nearly leveled off until the healthcare ruling came along. Now no business here wants to pay for healthcare for its workers so there has been nothing but pay cuts, hour reductions, and lay-offs for nearly a year now. Walmart is THE major employer in the area, and you're lucky if you can pull down 20hrs/week @ $7.30/hr. We've even had several fast food shops close down and leave the area, KFC and McDonalds included.

Seeing the improvements elsewhere really makes me wish I could relocate, but I'm totally tapped out from trying to survive here. Cheap housing and power brought me here, but the lack of jobs and high fuel/food costs have gutted me.

One sector that I have not heard of any improvements in the last three years is manufacturing; my old bread-and-butter. It does make sense with how little we actually export as a nation.