Friendly Advice

I realize that this should belong in the OOC section, but I am concerned that people will ignore it. The looming financial collapse could result in drastic social changes that could potentially leave some of us here in bad shape. I just want to advise everyone to be prepared for it. Stock up on food and water, at least enough to last a month. I would hate to think one of my gaming buddies died because of this.

O_O

In my view, nothing terribly drastic is going to occur. Too many serious stakeholders have too much at stake, and too much ability to fix things, to let the current confidence crisis get out of hand.

The US Federal Reserve will produce dramatic amounts of new US Dollars, and the inflation will be off-set through agreement by other central world banks to buy the US debt, adding it on to the pile of US debt they already have. No doubt these countries will demand some concessions from the US, and so you'll see China buying up good US investments unconstrained by congressional oversight that has hampered the Chinese state's activities in the US in the past.

As to how that will affect the real economy, probably a return to the stagflation of the 80s: despite the coming juggernaut of US government intervention in the domestic economy, it will take a while to restore trust between payers, recapitalizes the banks, and for speculators to figure out how to best exploit any new regulatory system.

Personally, I'm pissed off that I'm in the US and have a significant size of change stuck in a currency that's rapidly depleting and is only going to get worse for the foreseeable future. Convert and cop the losses, or wait for inevitable US inflation to bring my dollars back to scratch? Decisions, decisions...

Of course, in any time of economic turmoil, the security of your job should be paramount. Be prepared to look for new employment if necessary, and have a cushion of cash you can use for emergencies.

*puts on tinfoil hat*

I'm with Kith on this one.

Dang! I guess this means I'll have to get a job and quit living off my savings.

One of my teachers once said..

"The problem with the US Federal Reserve is that it neither federal or a reserve." Peter T. Malkovsky

I think that might be original to him, so I'll quote him for it...always thought it an interesting statement. If I were American, I'd be worrying about the government instituting a new currency, a la Abraham Lincoln with the greenbacks. I think the US economy is definatly in for some serious changes, and one way or the other is going to do the same, as it is currently, to my own Canadian economy. Should be a good show.