It occurred to me today that one of the nice things about not having much money is that I don’t have to worry about loosing it in the stock market.
But I realize full well that a falling stock market and an overall failing economy will take its toll on me and my family, just as it will on you and yours. If you don’t think so, you’re in for a rude awakening.
You don’t have to be a prophet or an economic expert to see that America is heading into a deep, dark decline. Just open your eyes. The handwriting has been on the wall for years. Ignorance won’t be bliss for much longer. I don’t think we’ve seen anything yet. I’m not being pessimistic. I’m being realistic. And, believe it or not, I’m actually optimistic about the future. But it is pretty certain that we are going to go through some very tough times in the years ahead.
I came to realize that the modern American economic system was fundamentally flawed, and destined to fail, back in the 1980’s when I read a book titled "Miracle on Main Street" by F. Tupper Suassy.
Another impressionable volume was a black & white picture book of the 1930’s depression era that my parents had. It was titled The Desperate Years I was in grade school when I first looked through and studied the pictures of sadness and misery in that book. I thought to myself that if it happened once, it could happen again.
Over the years, there were other books, and there were stories from people who had lived during The Great Depression. One of my uncles has been writing a book about his recollections of the depression era. Now in his eighties, he was just a small boy during the depression, but he remembers it in great detail. He let me read the manuscript to his book.
Prior to the crash, his family’s home was paid for. But his father took out an equity loan to do some remodeling. Then came the crash and his father lost his job. There was no money. They lost their home. The family moved something like 12 times in eight years. They lived with kin in West Virginia and Ohio. They lived in abandoned houses way out in the middle of nowhere. Times were hard. Real hard. Harder than most people alive today can imagine.
People think that sort of thing can’t happen again. Don’t bet on it.
I had to laugh a couple weeks ago when I heard an NPR radio program in which they were discussing whether or not we were in a recession. Of course we are in a recession! When it gets to the point where things are so bad that the talking heads are wondering if we are in a recession, then you know for sure we are, and we’ve probably been in one for several months now. Same goes for inflation. We’ve had high inflation for longer than they admit.
Now George Bush and the congress wants to give every American a tax rebate of $800 (or something like that). Then the Fed lowered the prime lending rate .75 percent. They know it’s a bad fix we’re in. I think they’re scared. Maybe they can plug enough holes in the sinking ship to sail on a few more years. I hope so. But the ship is going to eventually sink. The whole fractional reserve banking system with its fiat money is unsustainable.
That said, I would like to give you my thoughts and suggestions for agrarian-style economic self defense.
1.) If you live in or near a city or high population center, get out. It was crystal clear to me as I looked through the old photos in “The Desperate Years” book that people in the cities were not in a good place.
3.) Buy land or get to some land in a rural area where you can fend for yourself. You need to be able to plant a garden, raise a few chickens, hunt, fish, trap, and forage for wild edibles. I’ll take fields and forest over city dumpsters any day.
5.) Eliminate debt if at all possible. I’ll take a humble little country home on a little piece of paid-off country land over a big, fancy, comfortable house with a mortgage any day. Come to think of it, that’s exactly what I’ve done.
Most modern Americans can’t bring themselves to downsize. Many have enough equity in their big mortgaged homes to sell and buy something far below their current standard of living, and have no mortgage debt. But they just can’t do it. I suspect many, in the years ahead, will wish that they did sell and downsize when they could. A bird in the hand is worth two in the bush.
6.) Acquire the basic tools of self sufficiency. What, you may wonder, are the basic tools of self sufficiency? Well number one would be some debt free land out in the country. Then there are the actual tools--- like garden tools. A shot gun with ammo is a tool too. A grain grinder is an excellent tool for self sufficiency. A woodstove to heat your debt-free home is another tool of self-sufficiency. How-to books are tools too. Start with Carla Emery’s "Encyclopedia of Country Living." It'll tell you how to do just about everything.
5. Stock up on some basic food items. You can buy things like oatmeal, beans, rice, wheat (for the grain grinder), and other staples through food co-ops for cheap. That’s what we do, in addition to freezing and canning and drying foor from the garden. It’s a good feeling to have a well-stocked pantry.
6. Find community and get involved. Get yourself into a small rural church where folks care about and will help each other. Country people look out for and help each other. That’s always been the case. It’s not going to change when times get bad. But they won't be paying your mortgage for you.
I think you get the idea. What I’m suggesting here is that you simplify, downscale, and adopt a more self-reliant, self-responsible, lifestyle. It is going to be easier to do now than later. If nothing else, get a section of land in the country. Family members could pull together to buy land... debt-free land. It would be a place where you can go if it gets bad. With the land, you have the ability to provide, even if you have to live in a camper or a tent. Land and community are fundamental to surviving the worst of times. Land is fundamental to survival and personal freedom.
Does what I’ve just told you sound radical? Well maybe it is to you. But it isn’t radical to me. It’s the way I now live. It’s the way I decided I wanted to live years ago when I came to understand that the economic system was not sustainable. It’s not a bad way to live. I recommend it to you.
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7 comments:
I have been meaning to dig up this link for a while. With all this economic talk going around I finally got motivated to go find it. I keep tabs on Mark Cuban (owner of the Dallas Mavericks). My all time favorite post is called "The Stock Market is for Suckers". I recall it because it was the first time I started to get worried about my 401K account. Here it is (warning, not always the cleanest language). I just reread it and it is as good as I remember.
http://www.blogmaverick.com/2006/01/03/the-stock-market-is-for-suckers/
That is what a billionaire who doesn't mind telling the truth thinks about the stock market. One quote to peak your interest.
"The stock market is by definition a ponzi scheme"
Since the topics of investing and a broad economic CRUNCH are considered, I have to recommend the following two websites:
www.investors.com This is the online version of the "Investor's Business Daily" newspaper. No publisher has given more of his own capital to work in educating the public on how the stock market works that William O'Neil. Check out any of his books from the library. It's a great place to start. His newspaper, each day, publishes whether to be in the market or not.
http://www.survivalblog.com/ This is the daily blog of James Wesley Rawles, author of Patriots Surviving the Coming Collapse. That is a textbook in and of itself in the hows and why of living frugally and preparing for longer term economic trouble. It reads as an entertaining novel, but you will learn as much as if it were a text. The blog covers new material and current events. (As if you needed more to read, but just see if you can escape from the archives in less than four hours.)
Not only is you blog just absolutely enjoyable to read, but it has encouraged me to get my head out of the sand. I've kept it there, knowing I don't want to see what the world is coming to and not knowing what to do about it. I'm glad I don't have to build a bomb shelter (yet). The things you talk about are things I agree with and am working toward with my family. Three years ago we stopped borrowing and are patiently, deliberately digging our way out of debt. We're in a small house in the country with a few acres and a fantastic community of Christian agrarians. Every day my family is taking steps toward self-sufficiency, albiet small ones.
Thanks for not writing in a screaming panic, but for keeping your focus on the Lord, who is ultimately in control. Yours is a very balanced approach and I'm sure learning a lot.
~Kaleesha~
Fredericktown, MO
homesteadblogger.com/awaitinghiskingdom
This is a good post Herrick, very, very good. It don't sound radical to me at all, just some good common sense which is so lacking today. As you know our family has its own depression era history, and its deep within us to never, ever make that mistake again called easy debt. And we don't. The freedom of no debt is such an important key to all of this. I'm with you, as far as folks downsizing their homes and being able to afford debt free or very nearly debt free some land and a simple home that's easy to upkeep.
And getting involved in a small country church, its so, so true. When we had a near disaster here over a year ago it was them that came over and helped out and got us through. And the kicker is everyone had fun doing it!
Anyway, an excellent post sir!
Thanks for the links, guys. Sounds like you're doing all the right things Kaleesha. I appreciate your comments. It's good to hear from you tom. For those who have not read Tom's family depression story, here's the link:
Easy Debt
I tried to follow the link (Easy Debt) and it said I wasn't invited to read it. How do I get invited? Btw, you aren't the only one preparing! We are so thankful we started a while ago because I would be overwhelmed with the climate like it is otherwise. Thanks for your blog! :)
Mr. Kimball, I completly agree with you... but I have one question I am wondering about that I thought you might have some advice on- I live here in Canada,and since we are not par of american economics, do you think that even Canadians should at this time consider moving to the country as well? Well, whether I can move at the present or not, I am so thankful for stumbling onto your site, I have been learning so much, so that if the worst case senerios break out, at least I'll have an upper hand over most others! God Bless your ministry.
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