Do You Have a Back-Up Plan IF or WHEN the U.S. Economy Goes into the Toilet?
by Donald W. Hendon, Ph.D.
What’s your back-up plan if (or when) the U.S. goes bankrupt, our currency is worth nothing, there’s rioting in the streets, etc.? You know, when the worst-case scenario happens. Bad political climate around these days. There’s rioting in Wisconsin, and rudeness / incivility seems to be everywhere. Elected officials have been shot, beaten up. At town hall meetings, many of them are extremely rude to people who ask them questions. Some politicians and others have been caught with their pants down on hidden cameras, courtesy of such whistle-blowers as James O’Keefe who brought down A.C.O.R.N. in 2009 and who is now bringing down National Public Radio. The tipping point may be fairly close.
Do you have a plan? If not, I suggest you start thinking about making one. I’ve been collecting back-up plans from many people during the past few months. Here are 8 of them. They might give you some ideas for your own back-up plan.
Person 1: I’ve been buying a lot of gold and silver. Stocking up on canned goods and medicine. Not ammunition, though. (Maybe I should.) Plus, last year, my Filipina wife and I bought a house in an upscale gated community in Manila, Philippines, guarded 24 / 7. I do a lot of consulting and seminar-giving these days, and almost all of my clients are in the Philippines and Malaysia. I already live there 6 months and 6 months here in the U.S. If or when the U.S. goes into the toilet, I’ll stay in Manila full-time. Not dangerous, high standard of living, great tropical weather, good English, reminds me a lot of the US, Filipinos like-respect-admire Americanos, lots of American TV shows. Plus, with slingbox technology, I can get U.S. TV networks there in real time. I can get permanent residency in the Philippines easily without bribing anybody because my wife is both a Filipino citizen (natural-born) and a US citizen (as of November 5, 2010). Also, she is 28 years younger than I am. And on top of that, she’s a nurse! She and her extended family can take care of me in my old age. Members of extended families (including cousins) help each other out, unlike here in the U.S. where grown-up children don’t bother with their parents. And I’ll pay off the mortgage on my house in the U.S. with cheap dollars. When a hamburger at McDonald’s costs $3,000—if any meat is still available—that will be a good time to pay off my mortgage.
Person 2: If or when the the U.S. goes into the toilet, then the toilet had better be big as the rest of the world will soon follow and especially Mexico, where I live in retirement. There are no safe havens, so why worry. Once your doomsday supplies are exhausted, then be prepared to meet your maker. A fate we all face. Especially so for us past 70. Live and enjoy the moment as you’ll not be on this earth forever.
Person 3: I can only think of one thing to do if the U.S. goes bankrupt—pray!
Person 4: I haven’t got a back-up plan—yet. Been buying stuff like stoves, tools, etc. It just comes from a gut feeling with little rhyme or reason to it. Just can’t shake the feeling. I really believe we’re gonna go belly-up and that most of our society is living in a dream world. Just haven’t nailed down an opinion on what time frame we’re looking at.
Person 5: I will be armed and will defend my property using deadly force as necessary. I will lose weight for sure. I may rent my body for sex to good-looking women from ages 21 through 40 in return for food. I could rustle cows from neighbors. There're always deer and wild hogs to shoot. My wife has a vegetable garden.
Person 6: I purchased Gold and Silver back when the price was half what it is now. Have more recently purchased GLD and iShares Silver. I think silver has more upside in the short term. Wish I had more in commodities because if things do go in the tank, a real possibility with an in-over-his-head president, it will not be enough to compensate. Basically we have no debt, house and vehicles are paid for, so we will survive. But a goal of giving the kids something may be harder. The future generation will have to have a higher education to survive. It may be the first generation to not be as well off as the previous.
Person 7: First, we are buying farm land in South Dakota either on our own or through a land purchasing partnership. The land has done nothing but appreciate, and it supplies us with income. These are two outcomes that I believe are important at this time in our economy. Second, we have continued to work in our business to retrieve the most income and tax benefit from our company. We are both at the normal retirement age so this is a big deal to us. Third, we are managing our investment in a more conservative way. Large cap stocks like Exxon are more desirable than small cap stocks that are more volatile but potentially offer better results.
Person 8: Too much crap going on now to make a sensible plan.
It’s good to be prepared. Please send me your plan. I’ll put some of the plans I receive on Stupid Frogs from time to time. I won’t mention your name or your contact information. Please send your plans to me at donhendon3@gmail.com.
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Noted consultant and seminar-giver Donald Hendon has often contributed to Stupid Frogs. He is the author of 365 Powerful Ways to Influence. You can download chapter 1, free of charge, by going to his website, <www.donaldhendon.com>. There are 6 kinds of tactics: Assertive (121 of them), defensive (92), submissive (16), cooperative (24), dirty tricks (81), plus 31 tactics to prepare you for your negotiations. Don lives in Mesquite, Nevada, near Las Vegas.