# The coming Depression and what to do about it?



## archilles (23 April 2009)

Hi all - Mr Optimistic here 

Let us pretend that we could see 1 year into our future from today, in this future we see that the world and our country is in the midst of a depression.


What would you do ( today ) to protect you're family against the coming depression and what opportunities would you look for ? 

Please exclude the following suggestions :

1. Buying Gold
2. Buying canned food
3. Buying foreign currency 
4. Growing your own food / making your own clothes
5. There is nothing you can do


Although the above suggestions are good, i've heard them a thousand times. I'm hoping we can all brainstorm and come up with other possible solutions, safeguards 


Any thoughts would be greatly appreciated


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## Mr J (23 April 2009)

*Re: The coming Depression and what to do about it ?*

I wouldn't do anything differently. Unless trading becomes impractical, I'd just trade and hope that my gains are far greater than increases in inflation, expenses etc.


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## brty (23 April 2009)

*Re: The coming Depression and what to do about it ?*

If I could see what the world was like in 1 years time, I could also see what prices different stocks and commodities are, and I would act accordingly, buying those going up in price and selling those going down. Of course with all the gains I'd make, I could easily pay off all loans.

The problem is I don't have a crystal ball, and therefore do not know what is going to happen. What I buy or do is determined by probabilities with a definate uncle point. 

If you really believed the depression scenario and sold all sorts of things, but prices went up instead of down, when will you change your mind??

brty


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## archilles (23 April 2009)

*Re: The coming Depression and what to do about it ?*

brty, i would change my mind when the Dr. dooms changed theirs  - Peter Schiff and Mr Gerald Celente. I'd also to try to determine if prices went up because of the free market or whether it was created by dodgy government.


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## brty (23 April 2009)

archilles,



> i would change my mind when the Dr. dooms changed theirs - Peter Schiff and Mr Gerald Celente.




If prices are going up, they are going up, if they are going down, they are going down. I do not believe in following a guru, because they all have their time when they are right (that's how they get their reputation), until they are wrong (which is when they disappear off the radar).

There have been people predicting depression dead ahead for years Granville in '82 and Prechter around '90-'91 come to mind. 

brty


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## archilles (23 April 2009)

brty, i hope both of these Gurus are wrong, even they hope so too.


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## Naked shorts (23 April 2009)

What a horrible name for a thread, what are you trying to do? start a bank run?

Also, just because a guru says something that in no way means you should follow. After all, most of the Doom gurus are long gold, so its in their interests to cause panic thus making the gold price rise.


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## orr (23 April 2009)

When you look at all the old photos of the forlorn masses from the 1930's, they all have something in common. Their all wearing hats. So if history be your guide, get into selling hats now, before the rush.


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## Portfolio (23 April 2009)

Hi Archilles,

Im not sure where you were going with this but if you wanted to know what assets to position yourself in during a depression the short answer is that that cant be answered yet. Why? - Because you need to know what policy makers do in response to this.

Assuming they can't restart credit growth (and i dont think this is a done deal yet but i agree i think it is very likely) then yes we will be going into a depression or de-leveraging process.  This process will occur until lenders are happy that if they lend money to borrowers they will get it back and more (or else why would they lend).  Given the current situation (there is about 25 times more credit (promises to pay money) than actual money) there are only 2 solutions: Either central bankers print alot of money to ease the burden on current borrowers reducing their existing liabilities in real terms (this is an inflationary depression) or do they unwind and restructure the existing debt (i.e. allow defaults on loans in an orderly fashion) this leads to a deflationary depression).

If you know that then you can start to talk about which assets to buy.
Is this where you were going?


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## explod (23 April 2009)

> archilles The coming Depression and what to do about it?
> 
> --------------------------------------------------------------------------------
> 1. Buying Gold
> ...




Dont' seem to be coming up with much on this thread.

Maybe the Gurus have something.   A lot of them are sound economists who do not represent the self interests of banks and they say it how it is.  Which of course is not what people want to hear.


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## Nyden (23 April 2009)

explod said:


> Dont' seem to be coming up with much on this thread.
> 
> Maybe the Gurus have something.   A lot of them are sound economists who do not represent the self interests of banks and they say it how it is.  Which of course is not what people want to hear.




No, they just represent their own interests; which are panic, and gold


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## Family_Guy (23 April 2009)

Depends what your definition of a depression is.

A recession is when you know someone who lost their job
A depression is when you lose your job.

I don't have a job, so i'm sweet. However, the bloke next door will lose his job, need to sell his house, wont find anyone with cash to buy it, so i'll offer him a little less than he wants, i'll buy it and sell it in a few years time and wonder what all the fuss was about.

Other than that, i believe foxtel will be around during and after the depression, so once again i'll be sweet.

Hope that helps.


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## Wysiwyg (23 April 2009)

archilles said:


> Hi all - *Mr Optimistic here *
> 
> Let us pretend that we could see 1 year into our future from today, in this future we see that the world and our country is in the midst of a depression.




What if USA rises from the ashes and joins China in substantial economic growth? Would that be a super-cycle or what?


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## moXJO (23 April 2009)

Nyden said:


> No, they just represent their own interests; which are panic, and gold




Actually a lot recommend stocks in Asia amongst other things. I think the gold position is the only thing people hear. And what you have to remember is that a lot of the 'gurus' are in the US (money printing madness). So there is a natural tendency to go to gold. This in my opinion is in a different position to Australia for the moment.

I think the panic, gold, shotgun, farm mentality is reserved for a few though. 

Portfolio's post put it very well. Inflation or deflation is the question.


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## metric (24 April 2009)

invest in copper and plant some chokos....

no joke...


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## numbercruncher (24 April 2009)

Invest in your health and fitness ... the demand for Fat desk jockeys is going through the floor


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## Trevor_S (24 April 2009)

archilles said:


> Any thoughts would be greatly appreciated




These guys went through the last one, maybe listen to them ?

https://www.aussiestockforums.com/forums/showthread.php?t=15128


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## singlefished (24 April 2009)

metric said:


> invest in copper and plant some chokos....
> 
> no joke...




Chokos would have to be one of the most evil tasting vegies on the planet...

If you invited me around for dinner I'd rather chow down on your copper investments... (and copper is probably better for you too!)


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## Sean K (25 April 2009)

orr said:


> When you look at all the old photos of the forlorn masses from the 1930's, they all have something in common. Their all wearing hats. So if history be your guide, get into selling hats now, before the rush.



 LOL

I'm going to move to the Caribbean and sit on a beach to avoid the depression.

And buy a hat.


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## sinner (25 April 2009)

metric said:


> invest in copper and plant some chokos....
> 
> no joke...




http://zerohedge.blogspot.com/2009/04/is-there-bubble-forming-in-copper.html


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## helicart (25 April 2009)

move to King Island....it is pretty self sufficient with food.....

stay put and grow vege, a few moo cows, pigs, chooks....

move to a mining town and practice my profession

join the army as an officer to avoid being conscripted into some grunt platoon as a corporal, when the inevitable resource wars overshadaw that annoying little Osama wnker......


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## metric (25 April 2009)

sinner said:


> http://zerohedge.blogspot.com/2009/04/is-there-bubble-forming-in-copper.html




and i'll raise you 3....

http://www.telegraph.co.uk/finance/...-Standard-for-the-worlds-currency-system.html


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## shag (25 April 2009)

helicart said:


> move to King Island....it is pretty self sufficient with food.....
> 
> stay put and grow vege, a few moo cows, pigs, chooks....
> 
> ...




u'd better watch out mate, osama is a pretty good professional engineer(civil), and in another career path he'ld be kicking yr **** and making you sweat as he got fat in his office.


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## Naked shorts (25 April 2009)

kennas said:


> LOL
> 
> I'm going to move to the Caribbean and sit on a beach to avoid the depression.
> 
> And buy a hat.




hahah I was thinking of doing the same thing


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## outback (25 April 2009)

I'm moving to King Island, put hats on copper chokos then just kick back and watch the money roll in.


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## helicart (25 April 2009)

shag said:


> u'd better watch out mate, osama is a pretty good professional engineer(civil), and in another career path he'ld be kicking yr **** and making you sweat as he got fat in his office.




well he is an engineer with the highest price ever put on a man's head. 

maybe that's what I could do....go get him....and claim the  mulah....


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## metric (25 April 2009)

if you believe in the osama fairytale, and the al ciada fairytale, then you will never prosper in a depression. sorting the wheat from the chaff, thats what will turn a quid...


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## Ageo (26 April 2009)

archilles said:


> Hi all - Mr Optimistic here
> 
> Let us pretend that we could see 1 year into our future from today, in this future we see that the world and our country is in the midst of a depression.
> 
> ...




20kgs more of gunpowder to make up those extra rounds to deter unwanted guests at night trying to take anything they please


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## archilles (29 April 2009)

Putting it that way, helps simplify it - thanks Portfolio.


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## Pappon (29 April 2009)

Get the Rudd government out for a start that will do wonders


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## Naked shorts (29 April 2009)

Hide


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## noirua (21 October 2020)




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