io9
Our economic future could be even bleaker than you expect — and last year was the moment to unleash your inner survivalist. If the financial system suffers any more crises of confidence, credit gets even tighter, and the fed falls into a liquidity trap, we could be in for several hardscrabbling dystopian years. Forget maintaining your current shiny standard of living — how will you feed and clothe yourself, in the worst case scenario? We've compiled a few suggestions for things you can do now to brace yourself.
Avoid debt at all costs. If anything, you'll want to save up as much money as you can, in case you have to live off your savings. Thanks to recent changes in bankruptcy law, it's much harder than before for an individual to declare bankruptcy. So if you're stuck in debt with little or no income, you'll still be working for the banks. And as this guy points out, the banks will be hurting, so the moment you miss a payment, they'll be quick to try and liquidate your collateral for whatever they can get.
Get out of your mortgage before the housing market collapses any further. As this site says, if you paid $300,000 for your house and it sells for $200,000, you could end up not owning your house and owing the bank $100,000.
Buy some cheap land in a rural area. Build a house, or just get a used RV. Either way, make sure you own your home free and clear, so you can live rent-free and mortgage-free for as long as you need to.
Go off the grid. Get your own power generator — or, better yet, some of those solar helium balloons. Or some wind turbines. Don't be dependent on the power company to keep all your necessities running.
Cultivate some skills that will always be in demand. Become a decent electrician, handy-person, carpenter or cook. There may not be much need for someone who understands content management systems during a total economic shutdown, but someone who can build a house will always have a place to crash.
Offshore yourself. As the dollar gets weaker and weaker, U.S. white-collar service workers will be the cheap overseas employees for Europeans and Asians, predicts Robert Scoble in his roundup of how to recession-proof yourself. So as long as someone, somewhere, is still making use of those white-collar service skills (like programming, or customer support) you may be able to offer yourself to overseas companies as a cheaper alternative.
Invest in the ultimate counter-cyclicals. Some industries will always be in growth mode — like any business that caters to the rapidly growing senior population. Also, "sin and comfort" industries, like cigarettes, gambling and booze, do well during downturns and will probably make bank this time around as well. (Too bad booze and cigs are generally part of huge diversified conglomerates these days.) Also, movie companies are quietly bragging that the movie industry had one of its biggest growth spurts ever in the 1930s, as people craved escapism.
Invest in some Euros, or some other currency that's not the dollar. Chances are the U.S. dollar will keep getting weaker, so you'll be better off holding a more stable currency. You could also try investing in gold or silver, but those commodities are already skyrocketing in value.
Have some liquid funds on hand. MSN Money suggests reducing your contributions to your retirement plan or 401(k) (if you have one) so you can put more money into your savings instead. And remember, the banks are still FDIC insured, so your savings are probably safe — but other investments have no such guarantee.
or take part in a community garden in your neighborhood. Try to position yourself so you can get as much of your diet as possible from food you've grown yourself, instead of being hooked on sushi.
Learn to hunt. These fine people claim that hungry people are already hunting small animals in the parks of San Francisco, and during the 1930s deer and squirrels were hunted almost to extinction. Learn how to trap, kill, prepare and eat a squirrel now, so you'll be ahead of the curve.
Stockpile medications. Your biggest problem, in an economic meltdown, could be getting health care. If you're dependent on prescription meds, try to get some extra pills now so you'll have some on hand later. Just make sure you're always taking the oldest meds you have, to minimize the risk of taking expired pills, these folks advise.
And hey, here's a meeting coming up in New York on how to "prepare and profit" from the next Depression. If any of our readers are in NYC, please please go to the meeting and tell us what they said, so we can learn how to turn abject economic misery into pure lovely gravy.
Comments
This is possibly the most frightening post I've ever seen on IO9. Frightening because it might be true.
Please just stick to Scifi.
#13 - Learn to handle a firearm.
#14 - Invest in gold.
#15 - Marry a proper woman with child-bearing hips.
:-)
Regarding investing in stocks tied to Hollywood/the entertainment industry: A recent issue of Daily Variety talked of how the business actually is not doing well -- movie attendance in America has been declining (as it has been for years now).
Ugh, I love stuff like this. Of course, I was also a huge disaster movie fan back in the mid-nineties.
Wow - This isn't an alarmists article at all. Hunting in Central Park? Oh - they forgot to mention you should take a human anatomy and physiology class to prepare you for when the super virus wipes out our food supply and we are reduced to eating our mutant (former neighbors) for dinner... Geez --- Panic anyone??
I all of a sudden am more comfortable with being a ( redneck ) living in a doublewide mobilehome. Oh no. did I
say that out loud
Thank you for posting this. I will be attaching guns to my vehicle, growing a mohawk, and strapping a fireaxe to my back in TRUE SciFi depressionistic dystopian style.
Don't invest in Euros. If you want foreign currency, try the Pound. I was reading a couple articles that indicate that the Euro is in danger because different countries have different economic ideas.
@Belabras: Yeah. Good stuff, though.
@thewriteguy:
"..a proper woman with child-bearing hips."?
Uh, during a economic slide, don't you think having children should be something to avoid?
@TheBestMaxEver: Panic anyone? Don't mind if I do. Luckily, I'm a blogger, which is a totally irreplaceable skillset which will always be in deman-- D'oh!
Good-Googly-Moogly!
Is this suppose to be serious??? If it is this has to be the worst advice I've ever heard. It's a good thing that the majority of people realize that a recession is the best time to invest and not to make a run on the bank and head for the hills. Seriously, you want me to invest in the Euro when the dollar is weak? Really, the old buy high sale low technique.
Stick to the sci-fi stuff.
@baltwade:
Say what you wish..
I, for one, would like to welcome our new hobo masters..
@Miranda Kali: you know what a healthy kidney goes for on the black market?
/satan, is that you?
@moff:
Agreed.
Besides, some of the stuff (like getting out of debt) are just good ideas in general.
@Miranda Kali: Not if they can help you tend the farm or are old enough to go work in the factories.
Hey, this recession just scored me an original ps3 for 200$. Go-Go recession sells offs.
Gosh, it's like 1999 all over again! Yay, apocalypse!
@baltwade: Of course, that's also a very good point.
Well, if you're a college student and are afraid of a depression your best bet is to go into a specialized (NON BUSINESS) field. If you have a skill that requires a large amount of education and/or expertise that few people are willing to go into, someone somewhere will want you to work for them. You can always jump ship if need be and move to a different country.
@thewriteguy: I've always loved the phrase "Child Bearing Hips"
Buy a couple 40lb bags of rice, beans, and other non perishables should be up there too...
This thread is useless without squirrel recipes.
Perhaps they need librarians in Europe? India?
Will Catalog For Food!
@utensil42: You beat me to it.
Well at least I live in €uroland... sadly I ahve studied enought to know economic recession is a worldwide phenomenon... I just wish they spend all the oil once and for all and start making some safe hydrogen powered motor vehicles.
Since I'm a 40ft Kool-Aid Monster, my services will always be in demand, you know kid's birthday parties, Bar Mitzvahs, and weddings. I'm like jello, there is always room... oh and packing a semi-automatic is always a good idea.
What people really need to do is build a years supply of non-perishable food. Find a local cannery and go buy your staples like wheat. Then you're prepared to feed your family.
#16. Don't vote for any Presidential candidate named "Hoover" or "Roosevelt." Such candidates have historically proven to be economic illiterates.
@WhiteTrashLegend:
Only for a year, but what about the six to ten years after (One can't exactly disappear 1 TRILLION US dollars of bad mortgage and soon to be bad mortgage debt)? The Depression lasted from around 1930 to 1940.
Also, how do you think Hollywood and the rest of the world finances the SF movies we love or hate these days? Bad news for lovers of SFX porn as no one will have the $200 million or so needed to make any of it (will be a "boon" to the old time wire and model boys though.)
I consider this more of an IO9 PSA than anything.
@mechagrue:
Squirrel Smores:
1 Chocolate Bar of your choice.
2 large, fluffy marshmellows. The fluffier the better.
2 graham crackers
Heat the marshmellows over an open flame until partially melted inside. Sandwich between the graham crackers along with the chocolate bar. Think squirrelly thoughts and enjoy.
@thewriteguy: Actually film attendance may be shrinking but revenue from other distribution methods continue to grow. Once they standardize a new model for media distribution there profits will only grow.
Goes to buy shotgun...
My grandfather grew up in the deep south as i have. He says that the depression changed things very little for them. poor white trash + depression = poor white trash with friends
@Belabras: Squirrel Mousse: 1. Put milk and squirrel in blender. 2. Set to highest setting and let 'er rip. Be sure to put a mint leaf on top before serving for a presentation that will have your house guests green with envy.
On the plus side, at least many of us will have to get up off our soft-as-charmin asses and actually do something for a change.
Oh wait...that's not the plus side.
I am sooo ready...
(stirs pot of turtle soup)
Hmm, I think I would rather prepare myself mentally for something of the recession sort, than be completely blindsided by it.
@spacedcowboy: I can totally see that. There are all these new articles about how to save and reuse things or not spend so much, but if you've been doing that all along there's not so much change to your lifestyle.
Suggestion for this article - starting like this is ok, if alarmist. But bring in the sci-fi by continuing to give advice on increasingly unlikely scenarios, so we have 1. Depression hits stuff, 2. I dunno, international war stuff, a la Jericho, with advice about determining who is really behind it, 3. Interstellar war breaks out, how to find alien weaknesses to exploit and win one for the humans. 4...Profit.
(Meh? At least more sci-fi!)
@Miranda Kali:
"Uh, during a economic slide, don't you think having children should be something to avoid?"
you can sell, pimp, or eat children, so breeding can pay off.
Belive it or not. A properly cooked squirrel is actually quite tasty. I grew up in redneck OH and hunted all my years as a minor. While it wasn't my favorite activity I'll gladly go back to it if necessity strikes and you'd better believe the hundreds of squirrels in neighboring parks will be prime food for the hungry.
Also: if deer and squirrels were nearly hunted to extinction in the 20s, you can say your goodbyes now. We have what, 5 or 10 times as many people now? Bye bye deer.
@BullfightsOnAcid:
Of course, it's important to de-bone and de-fur the squirrel before you get to the blender stage. For the dedicated squirrel chef that is simply understood, but a lot of posters here may be first time arboreal rat consumers, so it doesn't hurt to spell it out.
Also, for added zest, add you favorite kind of nuts to the mix!
@DSTRYA:
Which is all good and dandy if you're not the child in question...
@Crunchy:
AND you create jobs for hundreds of construction workers after busting through all those walls, further stimulating the economy.
@ManchuCandidate: i guess i was thinking past the "slide"/depression and more towards the apocalypse. by then it will be every man for himself, so yeah: sucks for the kid that you bred him to eat him. but in these tuff times you gotta be DIY.
@ManchuCandidate:
Gosh...1940...hmmm? I wonder if anything significant happened around that time time that might have helped get us out of the Great Depression. Oh yeah...World War II. At this rate we're going to have to nuke China or Saudi Arabia to become prosperous again.
I'll just go to Mexico and sit on the beach. Bought some land for 5k. Just setup a RV..
Gardening should be expanded to include more.
Rip out your lawn, put in cash crops or other kinds of edible plants. Root vegetables are particularly good because they store well.
Learn how to can your own surplus. Put in fruit trees or trees that have some sort of purpose (nuts or other cash crops).
Consider small animals like chickens for eggs, birds or guinea pigs for food.
If you live in a place where water may be a problem, a cistern (rain barrel) may help you through the dry times. Consider grey water recycling.
Can we try not to start a U.S. going into a depression rumor, I have this feeling that it is probably going to speed things up.
Recommended: Either way, make sure you own your home free and clear, so you can live rent-free and mortgage-free for as long as you need to.
------------
Owing a house ain't cheap, either. Taxes almost 7K, heating oil at $4 gallon, repairs sky high... sometimes renting has its advantages.
Oh, come on. It's sci-fi. Lighten up.
Although I may be acting flip because I just finished reading Octavia Butler's "The Parable of the Sower".
Uh, we've got four out of the eleven above covered. I really should learn more about plants and shit.
Bleh. What is this, reverse troll day on the Gawker network?
Fear not! The Singularity will take care of this in a totally unexpected -and quite magical- way.
[public.cwpanama.net]
"And remember, the banks are still FDIC insured, so your savings are probably safe - but other investments have no such guarantee."
Actually, the FDIC won't help much in a real depression - sure, your money will still be there if the banks go into general default, but it's value will be lowered dramatically by inflation.
On the bright side, the current economy isn't nearly as bad as the housing bubble collapse of the '80s, much less pretty much any part of the '70s. Those eras in turn pale compared to the depression of '57,'58,'59, or the actual Great Depression.
@catskyfire:
It also doesn't have a great history of stability. Before the recent Euro boom, they kept having to readjust it's value by fiat, every time it declined to far below the dollar benchmark.
@theOmegaMan:
Sure, there are a lot more people now, but the critter population has skyrocketed. Besides, the deer and squirrels being hunted out was the result of a long history of hunting - it didn't suddenly happen during the depression.
-Kle.
Recipe for Squirrel Melts:
+ Watch video
Go to meeting in New York
Wait for depression
???
Profit.
@Miranda Kali: Mmmmmmmm child bearing hips FTW!
Wow, good idea but poor execution. Most of the ideas are simply not practical for the average American. Paying off debt and saving more is always a good idea.
Here a few low-cost practical tips that everyone can do to prepare for a coming depression.
1. If you are like most Americans, getting out of your mortgage is not practical, but make sure that you have a fixed interest rate. Rates are VERY good right now. You will need to pay some closing costs as the market is not as competitive as it was three years ago, but the security of a fixed payment is worth it. While I mentioning it, try to find a regional lender. If you establish a relationship with a local or regional lender, if times do it get tough, they will have far more flexibility to work with you than the giant multi-national lenders.
2. Update your rolodex (yes, I know nobody still uses an actual rolodex). Begin now by systematically keeping in touch with acquaintances. By reinforcing these contacts now, you will be reinforcing your social network, which in turns provides more opportunities for employment if things start to turn bad.
3. Have your neighbors over for dinner. If things get really bad, you want to make sure that you and the people that live around you work collectively towards protecting each others interests instead of just barracading themselves in their personal cave. I am not suggesting you even need to bring up potential economic collapse with them, but make sure that you are friendly.
4. Invest in a bike. If people are losing their jobs in large numbers AND gas prices continue to rise, you will be amazed how expensive this simple contraption will become.
Hope these help
Actually there are way more white tailed deer in America today then when Columbus "discovered" the place. I've never read anything about their ever having been a shortage, but it would make sense that would have happened in the 30's.
Oh and don't forget to learn how to dress your kills, even a good hunter can spoil the meat this way.
That picture is great, "Sell your iPods here"