Need some help from those that understand the economy..

[sunshine2777]

Ok, I know some on here believe things will turn around and some dont... but both sides know alot more than I do about the economy and what could "happen"... so please help me out here....

If the economy "collapses".... just what does that mean for the average working person living paycheck to paycheck (or looking for work as in my case).... does it mean the dollar bill wont have any value.... or does it mean that everything will just get too expensive for the average person to buy.... does the oil get cut off (that would shut this country down quickly).... this country is not like it was in the 30s during the depression... everything is different..... so.. can any of ya'll help a lay person understand what the reality really could be? I tried to figure it out by reading posts and talking to others... but I just dont see....does everyone lose their job? go home to a home that the bank which is no longer in existance owns? or even lose the job, go home to a home that a foreign country/ business now owns.... the very rich is will be fine... the very poor will be ok for the most part... but what about the majority ..... any understanding ya'll can give me would be great!!!:thinking:thinking:thinking
Thanks ahead of time!

[jds6958]

Ok, I know some on here believe things will turn around and some dont... but both sides know alot more than I do about the economy and what could "happen"... so please help me out here....

If the economy "collapses".... just what does that mean for the average working person living paycheck to paycheck (or looking for work as in my case).... does it mean the dollar bill wont have any value.... or does it mean that everything will just get too expensive for the average person to buy.... does the oil get cut off (that would shut this country down quickly).... this country is not like it was in the 30s during the depression... everything is different..... so.. can any of ya'll help a lay person understand what the reality really could be? I tried to figure it out by reading posts and talking to others... but I just dont see....does everyone lose their job? go home to a home that the bank which is no longer in existance owns? or even lose the job, go home to a home that a foreign country/ business now owns.... the very rich is will be fine... the very poor will be ok for the most part... but what about the majority ..... any understanding ya'll can give me would be great!!!:thinking:thinking:thinking
Thanks ahead of time!

It is very hard to say, and I know that is not the answer you wanted to hear. If we go into just a regular but significant depression and you keep your job you will be fine or better than fine. If you lose your job, then of course things could be rather difficult or uncomfortable.

If we go into a highly inflationary depression (high inflation, unemployment) then it gets more complicated because your basic unit of monetary measurement is highly unstable (USD). If you keep your job then your employer will try to keep up with inflation to keep employees working but your paycheck will not grow as fast as inflation. Things will be purchased and hoarded by many as much as they can. This could contribute to supply shortages and further inflation. If you lose your job it is even more difficult because not only do you not have any income savings is inflated away and things become more expensive. It becomes very difficult.

Oil will always be available but maybe rationed quite extensively, maybe temporarilly not available, or limited to certain sectors and government/military. This could also be the same for energy. This is only the case with a USD collapse since it would be hard to purchase oil because we would have to do it more stable currencies or PM's. The US has a huge supply of coal but moving it could be difficult.

If someone is living paycheck to paycheck there is not a lot that can be done. The scariest part about inflation is losing your existing capital if it is stored in currency or lost because of insolvent banks.

Food shortages could happen but I see this as very extreme. I have prepared for it but I hope it does not happen. I expect some rationing.

Some social unrest could happen. If the 1929 depression happened again today it would not be as well received now as it was then. Just my opinion.

What I believe you are trying to do is wrap you head around all of the possible outcomes and say how will this affect me. 100% unemployment will not happen, but who knows what will happen to your job.

I work as a performance management engineer. I doubt I will have a job with in the next year. We will not have to be to concerned with performance when everyone is fighting for jobs and working environments are so unstable that JIT production ceases to even be a possibility. My models and tools will break down.

Start slow. Examine the possibilities. Priortize the what ifs. Ask yourself is there anything I can do to prepare for it and at what cost if any? Is it worth the cost?

You will see opinions from no big deal, to moderate, to worst case scenerio. No one can speak with complete confidence. The potential exists for all three. I personally believe it could be rather bad if not likely. We will know more as things progress. So far it has been progressing as expected.

The fact that you are asking these questions now and doing research and DD already takes you out of the majority. Congrats, regardless of whatever happens, you are already ahead of most. I have had little success in discussing the topic with those who are not seeking answers to quesitons (real world interaction), the head in the sand ostrich scenerio is all I see happen.

I hope that helps...I could type for hours on this...If you have more specific questions I would be happy to give my 2 cents, for whatever it may end up being worth...

[Chariots]

Sometimes just knowing what is coming down the pike will help you avoid the panic. The problem is 90% of the country doesn't have a clue what is happening to their currency, savings, and the direction of the economy.

Knowing what could happen will allow us to prepare mentally and spiritually.

[mswilso]

The best thing I can say is to study post-WWI Germany. There are a lot of similarities (not exact, though of course, unless the UN forces us to pay war reparations for Iraq...)

But I believe that what will happen is that the rich will get richer and the poor will get poorer. (i.e. dissolving of the "middle class".) I base this on Revelation 6:6, "Then I heard what sounded like a voice among the four living creatures, saying, "A quart of wheat for a day's wages, and three quarts of barley for a day's wages, and do not damage the oil and the wine!"" In other words, necessary food will be very scarce, but oil and wine (luxuries) will not be affected. (Keep in mind this verse is supposed to be happening during the Tribulation). I also wonder if the word "oil" refers to things like heating and lighting oil (oil for lamps, etc) or oil as in fossil fuel...makes you wonder...

God Bless you all, and buckle up!

Mike

[jds6958]

Sometimes just knowing what is coming down the pike will help you avoid the panic. The problem is 90% of the country doesn't have a clue what is happening to their currency, savings, and the direction of the economy.

Knowing what could happen will allow us to prepare mentally and spiritually.

:nod

[Tammy]

jds6958 if your job is not around in a year what other jobs do you think will not be around anymore?

[jds6958]

jds6958 if your job is not around in a year what other jobs do you think will not be around anymore?

In an effort to make this a more simple and shorter response I would suggest looking at it this way. Service sector jobs that just provide "comfort" services and not necessary services will be hit hard. Service sector jobs that are necessary will be just reduced. Manufacturing jobs will likely increase if the flow of raw materials is not interupted and goods can still be transported easily. Farming should do well. Government jobs will still be around but likely reduced. Construction will be hit hard. R&D will be hit hard. Technology will be hit hard. Financial sectors will be hit hard. Ma and Pa stores may increase or do better. Casual dining will be hit hard. Some or most fast food will be hit hard. Some if positioned right will do ok or well. Healthcare will go through significant change and stripped to essential to function jobs. Insurance jobs may be hit hard. Auto industry will be hit hard. Travel industry could possibly increase because of foreign interest depending on how well our infrastructure or crime reacts to the crisis. Domestic interest in travel and vacation destinations will reduce dramatically. Big pharma will see some significant impact if people lose their insurance packages. Governement supported programs will be reduced.

These are just my thoughts...and not likely complete

[deanne53]

Looks like we may do okay in one way but not the other. Maybe I should get more bees.

[Tammy]

Not so sure how we will do. I don't work and my husband flies a King Air for the National Guard (part time) and flies a company jet for a window company.

[Amanda's mom]

I don't know how we are going to do either...my husband is disabled and I am listed as "temporary total disability" because of a student assault in November of 2006 that took out my neck and lower back. I don't qualify for SSDI because I wasn't working for a full 5 years immediately prior to the assault...even though I worked for a steady 20 between 1978 and 1998.