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Tuesday, July 18, 2017

The Economy is More Volatile Than Many Realize


Poor Man Survival

Self Reliance tools for independent minded people…

ISSN 2161-5543

A Digest of Urban Survival Resources

The Economy is More Volatile Than Many Realize

Just like in 2008, the major financial crisis that is coming is going to greatly accelerate our economic problems.  And just like last time, millions of people are going to lose their jobs, and millions of people are going to lose their homes.

Even though the stock market has been surging deeper and deeper into bubble territory in recent months, the middle class has continued to shrink and poverty has continued to grow all over the country.  In fact, because so many homeless people have been sleeping at bus shelters across from Disneyland lately authorities decided to completely remove the benches that they had been sleeping on

The vanishing benches were Anaheim’s response to complaints about the homeless population around Disneyland. Public work crews removed 20 benches from bus shelters after callers alerted City Hall to reports of vagrants drinking, defecating or smoking pot in the neighborhood near the amusement park’s entrance, officials said.

The situation is part of a larger struggle by Orange County to deal with a rising homeless population. A survey last year placed the number of those without shelter at 15,300 people, compared with 12,700 two years earlier.

But simply removing benches will not make the problem go away.

Homelessness has been growing so rapidly in Los Angeles that the L.A. City Council actually asked Governor Jerry Brown to formally declare a state of emergency.

And in New York City, street homelessness is up 39 percent over the past year.

This is where the real economy is heading, but a rising stock market makes for much happier headlines.

Many major cities around the nation are passing laws to essentially make it illegal to be homeless.  Forcing homeless people to go somewhere else may mask the problem for a while, but it certainly doesn’t do anything to solve it.


The current economy is in a volatile condition. People seem to be losing faith in the economy, with less spending and decreased investment in sectors such as real estate. Many say this has a lot to do with terrorist threats, declining international markets and of course poor economic decisions.

If you study history, you will see this isn’t something new, as we have faced similar situations in the past, and every time this happened the economy crashed. We have no reason to believe it will be any different this time. We are preparing for a crash that is expected by some experts to be worse than the one seen in 2008.

The last economic meltdown was horrible, with many Americans losing not just their homes, but also their future investments.

Reports state that many victims are still trying to overcome the situation and their finances cannot handle another meltdown.

The formation of a BRICS gold marketplace, which could bypass the U.S. Petrodollar in bilateral trade, continues to take shape as Russia’s largest bank, state-owned Sberbank, announced this week that its Swiss subsidiary had begun trading in gold on the Shanghai Gold Exchange.

This is one reason why bitcoin and so many other alternative currencies have been coming into play in recent years-folks are uncertain as what the best move is to preserve their wealth.  I still think it might prove best to stick with basics such as silver, [some gold], food, land and goods which can be bartered such as ammunition, fuel, alcohol, tobacco, medicines, even toothpaste and other toiletries.

Federal Reserve Board Chair Janet Yellen recently said that another financial crisis isn’t likely “in our lifetime.”


That sounded very strange. I thought back to the many financial calamities I’ve witnessed as an adult:

·         The 1987 stock market crash.

·         The 1997 Asian financial crisis.

·         The 1998 collapse of hedge fund Long Term Capital Management.

·         The 2001 terror attacks, which hurt the economy and the New York financial sector.

·         And of course, the 2007/2008 financial crisis and stock market meltdown.

All of those occurred within just two decades. I wouldn’t want to bet that I’ve witnessed my very last shock to the economy.

“Typically the crisis never comes from where we expect it,” International Monetary Fund chief Christine Lagarde told CNBC. She said she isn’t ruling out another one.

Neither should you.

How to prepare, just in case

Even the smartest minds aren’t able to predict when or how severely a financial crisis will hit. What we can assume is that unexpected events of all kinds will occur.

Be ready for whatever comes. Take these steps to protect your finances for those times when things go bad.

1.      Build emergency savings. This can help limit the impacts of short-term unemployment, a sell-off in the stock market, a recession or a full-blown financial crisis.

2.      Pay down debt, particularly high-interest borrowing such as credit cards and personal loans.

3.      Live beneath your means. Just because you can afford something doesn’t mean you should buy it. Spend smartly and don’t overextend yourself.

4.      Think of the long run. Remember that most dramatic financial events, including stock market declines, tend to be short-term in nature. When you’re investing for the long-term, including for retirement, taking on some risk is appropriate to maximize your returns over time.


In 1967, only 5% of men aged 25-54 didn't work. Today that number is 20%. How's that possible when the official unemployment rate is setting record lows? That's easy. Anyone who has quit looking for work doesn't count as unemployed, but whether they're included in the stated unemployment rate or not, the loss to themselves, their families, and the economy is still real.

What about women? In 2000, 75% of women aged 25-54 were working. Today that's down to 72%.

The next stat is important. It gives each of us a clue on how to protect our jobs. Currently 72% of college grads over 25 have jobs. Among high school dropouts, only 41% are working. That gap has been growing continually since 1977.

Let's tie those facts together. To have job security today, you need an education. Jobs that don't require higher ed are disappearing. This is mostly due to technology. That's true whether you're an assembly line worker, sales clerk, or a host of other jobs. I encourage young people today to learn a skilled trade such as computer security, plumbing or electrical contracting.  There will always be a need for such skills.


Yours for taking back your liberty,

Bruce, the Poor Man

A Final Note…

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Additional Resources

Get the 2017 Consumer Action Handbook

The 2017 edition of the Consumer Action Handbook is finally available. This is the bible of every consumer agency office because it lists most major consumer help agencies and resources, corporate consumer affairs departments, and offers tips on solving your own consumer complaints. Get your free copy today. (You can download a copy or get a hard copy in the mail.)

How much emergency food do you need? »
The amount of food we need changes based on what our goals are. In modern prepping the line between what we need and what we store is blurry. Just because a can of dried fruit has the words, "Emergency Food" on the label does not mean it is the type of food you need in an emergency.  
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Larry said...

Most people don't get it. They walk about like the proverbial zombie, unconsciously waiting for miracles to happen rather than working to rid themselves of idiot politicians and bureaucrats.

Yvonne said...

Thanks again for the many, many terrific resources you share-they often come in handy and are often worth sharing with our family and friends!