Preparing for a depression in Australia

[Ageo]

you'll need a gun to protect your stash of food and water.

Unfortunately its against the law to have a firearm for self defence in this country (go figure)

That doesnt mean you cant "use" it for self defence

P.S in a severe meltdown id say 90-95% of the population would be screwed as they depend on commercialization.

 

[tommymac]

If things get really bad we need to be prepared by getting rid of any credit card debt, paying extra off the mortgage while interest rates are low etc.... If you need more cash to do those things maybe look at selling any toys you dont really need eg: flash car, boat, jetski or whatever. Also try and cut living costs like food and electricity use to generate more cash.

Unfortunately the Government doesn't want us to do this. Instead they want us to decrease our mortgage repayments and increase our consumption to "help" the economy.

 

[Farencue]

lol Tommymac, I know but you cant eat your plasma TV!

 

[archilles]

Imagine if our dollar lost it's value and we experienced something similar to what happened in Germany - such as needing a barrow of money to buy a loaf of bread.

What would you say are the COMBINATION of factors that could lead to something like this happening again- inflation spiraling out of control ?

If someone could illustrate this using the australian economy as an example that would be great!

 

[sammy84]

There is talk of working until 67 before retiring....if you have a job...of course if you are a Storm victim you keep working long after you are Dead.
Toyota have 150 Acres of cars in USA to sell, other car co.the same and other companies who produce will have a back log so no inflation for awhile.

I vote for Glen48 in the perma-bear of the year award!

 

[dhukka]

Hah, this is actually pretty funny! The unemployment numbers are apparently quite wrong because of cutbacks in the ABS staffing levels!

Here is the story from ABC Radio's "PM" this evening:
http://www.abc.net.au/pm/content/2008/s2490008.htm

Ain't it great that our fearless leaders are determining policy based on wrong numbers, just because they're trying to save a buck on ABS salaries!

Yes as mentioned back in August, whilst we all watch the headline number it is the revisions that are more accurate.

Just take a look at the 95% confidence interval for the headline number, it is quite staggering. As can be seen below, the headline number of a gain in jobs of 1,200 in January has a 95% chance of lying between a drop in employment of -59,600 and a rise of 62,000. Doesn't fill me with too much confidence.

 

[Julia]

Achilles, maybe you can turn your house into an old style boarding house and share it with lots of single mums and unemployed men.

Knobby22

Maybe get them together, let nature take its course, and claim a few baby bonuses?

 

[lioness]

Imagine if our dollar lost it's value and we experienced something similar to what happened in Germany - such as needing a barrow of money to buy a loaf of bread.

What would you say are the COMBINATION of factors that could lead to something like this happening again- inflation spiraling out of control ?

If someone could illustrate this using the australian economy as an example that would be great!

You guys don't get it do you. Go back and study Japan's money supply before they experienced 19 years of DEFLATION

Their money supply guess what was INCREASING just like USA. But people don't spend or invest they simply start saving as they are doing in the USA right now. Expect a deflationary cycle to wipe out property for the next 2-3 years. Expect 50% wiped of property values with the same debt remaining. if you loose your job on top of this you will be wiped out for good. Sell down and remove all debt quickly before it is too late if not already.

 

[robots]

You guys don't get it do you. Go back and study Japan's money supply before they experienced 19 years of DEFLATION

Their money supply guess what was INCREASING just like USA. But people don't spend or invest they simply start saving as they are doing in the USA right now. Expect a deflationary cycle to wipe out property for the next 2-3 years. Expect 50% wiped of property values with the same debt remaining. if you loose your job on top of this you will be wiped out for good. Sell down and remove all debt quickly before it is too late if not already.

hello,

yeah the 1 or 2% interest rates are going to get everyone, debt is getting cheaper and cheaper no need to get out

sorry i know i know i know, nobody on the planet is going to have a job

thankyou
robots

 

[Wysiwyg]

Imagine if our dollar lost it's value and we experienced something similar to what happened in Germany - such as needing a barrow of money to buy a loaf of bread.

What would you say are the COMBINATION of factors that could lead to something like this happening again- inflation spiraling out of control ?

If someone could illustrate this using the australian economy as an example that would be great!

A nation wide drought, oil at $500 per barrel, no demand for coal/iron ore and all while China is invading Australia.

 

[sammy84]

sorry i know i know i know, nobody on the planet is going to have a job

thankyou
robots

Who's going to bake my bread then Robots? This is very worrying

 

[gfresh]

One way to prepare for possible job losses would be starting to train yourself NOW in complementary skills, or new areas you think may do better in a major recession.

If unemployment were to hit 10%, you'd want to make sure *you* were the one that was at the top of any consideration for any of the limited positions around. That would mean having these extra skills the next person may not have, as the job market will become more competitive.

Sounds simple, but interesting how many just stick to the same old, taking things for granted, THEN if they do get retrenched, they start panicking that they need to learn new skills and are not qualified for many jobs out there. It can sometimes be harder once you are already out of the workforce, so the best time to start is now.

 

[robots]

hello,

spot on Gfresh, find things which keep you above the pack to keep the $ rolling in across your working life

people may call you a "company man", but its only words, and when the pay check keeps rolling in with bigger and bigger figures on it you living in paradise

thankyou
robots

 

[Calliope]

My way of dealing with fiscal and mood depression is a couple of glasses of red every night. And I sleep like a top.

Of course this is not for everybody. I recommended this regime to my doctor who often has sleepless nights worrying about his patients. He seemed a bit doubtful. I am fortunate in having a doctor who takes the time to listen to my idle chatter.

 

[moXJO]

Not to sure how reliable this guy is. But some more gloom from a goldbug

Officially “Out Of Control”
Posted: Feb 15 2009 By: Jim Sinclair Post Edited: February 15, 2009 at 9:18 pm

Filed under: General Editorial

Dear Extended Family,

I sent you a certain few emails that I consider to be the most important communications issued in my career that started in 1958.

I am the son of what I know to have been the greatest Lone Wolf trader in Wall Street history ever, Bertram J. Seligman. He was a past master at his business and believed to be a market sensitive. I apprenticed to him, learned from him and inherited some of his ability, not all however.

From this background of experience understanding and sensitivity the following flows.

The emails of note:

1. Said, "This is it."
2. Said, "It is now."

This communication is to inform you as of 2/13/09, "It is totally out of control." There is no longer any means of reversal of the beginning of the final phase of the downward spiral now solidly set in motion.

For your sake, protect yourselves immediately.

Be prepared for disruptions in distribution common to hyperinflation.

1. You should have already distanced yourself from your financial agents. If you haven’t you are headed for significant displeasure and strain.
2. Make sure you stay three months ahead on necessary items that could experience distribution delays such as prescribed medicine and preferred foods.
3. Even though real estate is far from a buy, if you can afford a second home outside of major cities it would serve a good purpose.
4. Own gold.
5. Consider that good gold shares of non-US companies incorporated in a non-US country operating in third country, traded on multiple exchanges are a means of money expatriation legally and in broad daylight if required.
6. For currencies, all you can do is own a spread held by a true custodial ship wherever that might be.

Simply said, as of Friday February 13th, 2009 the situation is in confirmed "Out of Control" mode as this well engineered downward spiral enters into a terminal phase.

The motive was profit and degree of the disintegration caused in the pursuit of this goal was not anticipated.

The key event was when Lehman was flushed - all hell broke loose. The hell cannot be contained in any practical manner.

I seek nothing of you, but the protection of yourselves.

Respectfully yours,
Jim

http://jsmineset.com/

 

[Knobby22]

Maybe get them together, let nature take its course, and claim a few baby bonuses?

Hey, there's got to be money in that!

 

[Dowdy]

Hey all,

Just wanted to ask a simple question:

How would you prepare for a depression in Australia ?

For example:

I own a house and have paid close to half of it off, although in todays economic climate it seems to be working out, i'm afraid what will happen in the future if we head into a severe depression and i lose my job ( can't find another ) the consequence will be that i won't be able to pay off my mortgage. My property has great potential and is almost paying itself off BUTTT at the end of the day i still have a $ 450k mortgage that would eat me alive if i was out of work for over 10 months.. I've got a chance to sell it and buy a shoebox 1 bedder in sydney outright, i figure i'll have no debt and a shoe box worth peanuts ( if we go through a depression ) but at least i'll have something and not risk losing everything.


I guess my main priority would be to have food, water and shelter whilst we ride out this massive storm ( which i think will unfold ).


Any thoughts not only on my story but thoughts in general ? I'm losing sleep over this ....

I find it funny that alot of people who say they own a house actually have a mortgage.

Just a note: It;s not your house until you pay off the bank. You have a house but dont own it.

Maybe one of the reasons why we're in this mess - people think they own their homes and think they're well off and completely forget about the repayments to actually own the house

 

[robots]

hello,

and with rates going down down down, I will be paying only the principle soon on my loans

wow, 25yr term just became a 16yr term, gee thats daunting, rent free paradise

thankyou
robots

 

[electronicmaster]

This is not advise for anyone, just info that can be useful. This is also a long term plan, because it can take a while for you to get what you need.

Lets see. This is what I have researched if the worst is to come. And I mean it is for super hyperinflation times (if it ever gets that bad).

Get out of dept

Buy a truck load of Silver and "some" Gold (depends on how rich you are). Buy major Gold mines shares then Minor Gold mine shares and energy.

* If you can't buy over 5 ounces of Gold, then just stick with Silver.*

Also go for commodities.

Then stock up on rice, tined foods, beer, wine, water, spices, vegetable seeds (for your own gardens). Tined meets, sugar, salt, some flower, pasta, noodles, dried packet soups. Well, what ever can last for a very long time.

Buy a gun or a sword and lots of ammo (if you have a gun)

Then get yourself into the cash sector. Try to avoid the barter sector. The cash sector is government, farming, food and Health Insurance companys.

Most other things will be barter, and that can be expensive.

I repeat, this is not advise, just an idea.


EDIT: Oh, and trade Futures. Currency pairs might do well

And buy all the basics like soaps, tooth brushes, toothpaste, shavers.. you get the idea.

 

[basilio]

Start to live more simply, share - houses, cars, internet (use wireless), start to grow food, learn how to mend and scrounge. Nurture good friends

Enjoy the sunsets, your kids, partner and pets.