Deflation Tips

Here are some tips on what to do as we move into spiralling deflation:

  1. Rent whenever you can rather buying (large assets, like a home)
  2. Sell what you don’t need
  3. Live in a home that’s not larger than what you need
  4. Learn to cook.
  5. Start a garden.
  6. Get out of debt
  7. Cut costs to the bone
  8. Develop a close community of skilled, positive-thinking friends
  9. Exercise and concentrate on staying well
  10. Stay in cash. Sell all investments. All assets depreciate in value. Cash rises in value (deflation).
  11. Educate yourself about deflation and money
  12. Save gold and silver (coins are best)
  13. Move out of big cities.
  14. Live within walking distance of fresh water.
  15. Store 3-4 months of survival food.
  16. 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