Here are some tips on what to do as we move into spiralling deflation:
- Rent whenever you can rather buying (large assets, like a home)
- Sell what you don’t need
- Live in a home that’s not larger than what you need
- Learn to cook.
- Start a garden.
- Get out of debt
- Cut costs to the bone
- Develop a close community of skilled, positive-thinking friends
- Exercise and concentrate on staying well
- Stay in cash. Sell all investments. All assets depreciate in value. Cash rises in value (deflation).
- Educate yourself about deflation and money
- Save gold and silver (coins are best)
- Move out of big cities.
- Live within walking distance of fresh water.
- Store 3-4 months of survival food.
- Have a few months of emergency cash on hand (not in a bank)
Here are some business tips:
In a crash or depression, money and credit are reduced. Stocks drop 90% and there are massive layoffs and unemployment. Banks and insurance companies fail. Government services are curtailed.
- If it makes sense, sell your business earlier rather than later.
- Short term contracts (rent and employment)
- Systematize anything that won’t change
- Work on the business, not “in” the business
- Woo your investors
- Credit freeze – cash flow
- Reduce bank indebtedness
- Reduce inventory
- Payment in stock or options
- Analyze your industry re: changing audiences and needs
- Analyze your core business. Spin off or sell anything that’s not critical.
- Investments
- Supply lines (how solvent are your key suppliers? Do you alternatives?)
- Security
- Employee well-being (depression and physical health)
- Transportation challenges
- Allow for increased taxes
- Deflation
- Renegotiate wages (full time vs. contract)
- Access to food and water
- Currencies and relative value/movement
- Real estate
- Interest rates
- Mortgages – if you have mortgages on buildings, try to get out of them well before the bottom.
- Rent rather than buy
- Cash is King
- Banking-get close to your banker
- Know your competition and industry players
- Prepare for loss of government services (Ontario, Canada, as as example is the most in-debt sub-state in the world.)
At the bottom, look for opportunities. Purchase strategic assets and other businesses
