Lemain

The Great Consumer Crash of 2009

Excellent article, well-supported by research and facts. I fear that your optimism that Government will protect the frugal guy is ill-founded. The people at the root of the problem are the wealthiest individuals and corporations whose money is essential for elections. The world has always been a grossly unfair place; a few of us post 1945 have been lucky enough to be protected and have enjoyed a very 'fair' society, relatively. Look at other parts of the world and previous generations to see just how lucky we have been.

The small frugal family needs to take proactive action to protect whatever capital it has. Get out of stocks and (most) bonds. Put at least 50% in precious metals - gold or silver coins. Lay down stocks of long-life staple foods if you can get them at a fair price, well-packaged and continually rotate the stocks (only buy what you like to eat). Make all essential repairs to your property and lay down a stock of spares and tools. Think about where you would get water in a civil emergency and take action. Now is the time to make sure you have a working bicycle; there is a high probability of either rocketing fuel prices or unavailability. Buy a decent book written by Pioneers; tips and methods used by your great-grandparents. They lived off the land before industry started.

Thanks again for sharing your excellent article.