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| icewendigo |
 Posted: Thu Feb 08, 2007 11:03 am Post subject: Strategy vs Great Depression? |
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Forum Senior
Joined: 21 Jun 2006
Posts: 378
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Imagine you were living in a small town, and that your were relatively influencial when it came to starting projects(good contact with the mayor, prominent members of the community, etc), and that you were convinced that a 2nd Great Depression similar in some way to that of the 30s was only a few years away.
If you wanted to reduce the negative impact of such a Depression for you and your family, and for people in your town...
What would you do personally?
How could people in your town prepare in order to reduce the impact of the Depression? |
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| Neutrino |
| Posted: Thu Feb 08, 2007 11:05 am Post subject: |
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Forum Ph.D.
Joined: 02 Nov 2005
Posts: 980
Location: Columbus, OH
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| Stock up on goods? Who knows what'll happen with the value of money but a can of beans is a can of beans. Unfortunately I don't know jack about economics to give a better answer. |
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| Cat1981(England) |
| Posted: Thu Feb 08, 2007 2:45 pm Post subject: |
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Forum Ph.D.
Joined: 09 Sep 2006
Posts: 925
Location: Mind your own business
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Seeing as your only concern would been for your family and town, the best thing you could do would be to convince your fellow town folk that the second depression was on it's way, sell any shares that you have and spend the money on necessary goods, food and maybe a reliable water source. Then try and make your town as self sufficient as possible to basically take the local economy out of the national one. But you may have problems if your town relies (for example) on a local factory which exports the goods made there, as most if not all the jobs relied directly or indirectly on the factory selling goods to the outside world, if thats the case then i think your knacked and your only hope to lower the impacted, would be to pay off as much debt as you possible can.
_________________
When we talk to God it's called a prayer. When God talks back it's called schizophrenia. |
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| icewendigo |
| Posted: Thu Feb 08, 2007 3:34 pm Post subject: |
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Forum Senior
Joined: 21 Jun 2006
Posts: 378
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Interesting post
and hillarious signature
---Lady Astor to Winston Churchill---
Sir, if you were my husband, I would poison your drink.
---Winston Churchill to Lady Astor---
Madam, if you were my wife, I would drink it.
Towns that are not diversified and rely on one big industry sometimes get in big trouble even when in ok economic times (if that one plant closes to be reopened in south-east asia or something)
Im wondering which country came out of the last centuries depression first and what explained that, I'll have to look into it out of curiosity |
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| charles brough |
| Posted: Fri Feb 23, 2007 12:09 pm Post subject: |
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Forum Bachelors Degree
Joined: 19 Jun 2005
Posts: 422
Location: joplin MO USA
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Most probably it would turn out that you were wrong and any influence you had with the town would harm the welfare of others and sink your reputation badly! Most economists have a reputation only because they avoid clear and concise predictions!
Look at it this way: to keep the economy afloat and avoid any recession, the balance of payments is allowed to constantly grow, the federal defecit is allowed to increase, the amount of money in cirulation is allowed to increase. This is a constant manipulating of the economy in order to protect the politicians from the consequences of a depression.
It works, also and has for 75 years! It means just inflation---not depression.
At some point, it must end in hyperinflation---not depression---and that could be decades or just a year away. There are too many variables to give a reasonable answer as to when.
The aftermath would, finally, resemble a depressiion, a permanent one perhaps.. .. .
charles,
_________________
charles, http://humanpurpose.simplenet.com |
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| kojax |
| Posted: Sun May 27, 2007 12:28 am Post subject: |
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Forum Ph.D.
Joined: 27 Mar 2007
Posts: 970
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| Position yourself in the food industry, basic food, not fancy stuff. No matter how depressed the country gets, people will always be buying food. |
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| jackson33 |
| Posted: Tue May 29, 2007 2:44 pm Post subject: |
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Forum Professor
Joined: 10 Oct 2006
Posts: 1217
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actually, in the investment world; sin stocks have done best during hard times. people seem to drink and smoke just as much in hard times while prices are not effected.
if the world was put back into a world wide depression and not often mention world wide drought as in the 30's, there would be in reality no safe investment. governments would by current constructs would fall like flies as needs of people drains there vaults of resources.
back then if you stocked up on canned goods, they lasted about 3 months, with very little cooling capacity fresh stuff much less. |
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