muses of the moment

March 5, 2009

When will things get back to normal?

Filed under: The Financial Crisis — totallygroovygirlfriday @ 4:14 pm

So, we are all waiting for someone to tell us, when will the financial crisis be over and things will get back to normal?

The short answer is won’t. It will be different.

If you have read the last two posts (part 1 and 2), you may understand that this crisis is built into the system. Perhaps the financial system could have been stabilized for a few more years, but not for forever. It was built into the system. The end result was clear. At some point, after almost 100 years, fiat currency and fractional reserve banking has come to its designed end.

The last twenty years will be completely unlike the next twenty years.

Understand this and be prepared. Don’t understand and get left behind. The way you have learned to purchase homes and cars, invest for the future, prepare for the job market, and anticipate the future cost of living expenses will not work in the future. You will need to learn new skills.

You can choose to live, as you have in the past, inside this imploding system, or you can chose to move aside and learn new ways.

Here are a few things that I see shifting in the future:

  • The dollar will collapse and need to be reinvented in another form.
  • Credit will become more expensive (higher interest rates) or hard to get or both.
  • Banking will be highly regulated or completely owned by government.
  • Government debt will explode and the government for all practical purposes will default on its debt.
  • Supply lines will be disrupted by credit problems.
  • Taxes will increase.
  • Social Security and Medicare will not be able to meet its obligations.
  • Gold and silver will rise.
  • Inflation will rise, probably a hyperinflation, before the dollar will be forced to be revalued.
  • China and Asia will begin to take the place of the United States as the leader of the global economy.
  • 401Ks and IRAs invested in the traditional ways of the past in stock market and mutual funds will lose money and purchasing power.

You can choose do to continue to do things as if the status quot were going to return to normal. Or you can change your perspective and prepare for these changes.

How should you prepare for this change that is starting to occur right now?

Stay tuned…….

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