Folks, as I survey the economic terrain, the counsel of the prophets echoes loudly: get out of debt, live frugally, prepare for the future. There are serious reasons, in my view, why this is more important now than ever. As financial commentator Richard Wiegand puts it in an article on the impending disaster in stocks, “It will not hurt anybody to get out of debt, lower life style expectations and take steps to protect your future. If I am totally wrong what can you lose? If I am right and you stay with the status quo, what does your future look like?”
Our net savings rate as a nation has dipped into negative territory. As I recall, the last time that happened for a full year was during the Great Depression. We’re spending ourselves silly, both as individuals and as a nation. The Federal Reserve Bank is now officially dropping M3, a key indicator about the growth of our fiat money supply, from the statistics it reports, saying it is too “burdensome” to track and report. It’s actually too frightening, showing that we are destroying the value of our currency and selling out our future through creation of massive amounts of new money as a way to pay for our wreckless spending. And as for our jobs, well, I’m seeing a lot of US jobs being shipped to China, India, and Mexico. I’m happy for the people there, but Americans with lots of education who thought they had great careers are suddenly losing their jobs. You can’t be too prepared. You can’t save too much in this environment. We all need to be more frugal and wise.
Got food storage? Good. Got debt? Bad.