Do You Have An Economic Plan?

If you are the type that follows economic news closely, you know that things have been a little wild as of late. Banks are moving to a new Bail-In program that could cost depositors a portion of their savings if the banks should find themselves insolvent. The U.S. and Japan have been printing money like mad as Japan kicks it into high gear with its announcement to double its money supply in less than two years.

The National Federation of Independent Businesses, say that 0% of their members plan to hire over the short-term. Gold and silver are being manipulated; Bitcoins are going parabolic, and look to be a large bubble in the making. North Korea is threatening to go to war with South Korea, and even the U.S. for that matter.

Now the seasoned consumer of this type of economic news knows that drama is no doubt baked into this cake. Nothing sells more financial news subscriptions than telling you that the world is going to end tomorrow. However, even if you take just a portion of what is reported, and research it for the truth that lies behind the headline. The question then becomes, if some of these events do take place, do you have a plan?

I'm not talking about something someone told you to do. Or a convenient check list you downloaded off the internet. I'm asking if you have a plan that you are comfortable with and you think is reasonable for your personal situation. Maybe you have a lot of cash and not many assets; perhaps you have many assets and not much cash lying around. If you could not get at your money that's in the system, banking or otherwise, would you be okay for a while. Do you have some spare cash stashed close by or something you can barter with? Do you even know how to barter?

If you lost half of your assets overnight, could you recover from that? Are you young enough to earn it back? Do you have the skills? Are you able to adapt to new systems if things should change very quickly? Are you nimble in heart and mind? Can you adapt?

There are many ways to hold and preserve wealth. Many use precious metals or real estate, some use art work and diamonds. Some even use antique automobiles. The question is do you know what is right for you and your situation? What do you have trust in? And does it hold value?

There is a lot of hype in the news about what is going on in the global economy. Some of it is designed to sell that very news, and some of it is to move the markets in certain directions. But there is no doubt that there are also many bad things happening in the world all at once, both economic and political. Call it a one hundred year event or just a turbulent cycle that we just happen to be living through, as it is unfolding.

Regardless, most people on the street will tell you that they have an uneasy feeling about things in general. That the world seems to be at some sort of tipping point, for better or worse still seems somewhat unclear. There is a lot to be said about trusting your intuition and that feeling you have in your stomach. Maybe you would be best served if you listened to it. Maybe you should have some sort of plan on how you would adapt to a fast changing environment that could test your very belief in the system you have grown to know so well.

It is important to do research and see what the experts say; after all they are the experts, right. But at the end of the day the decision is yours and you have to work with what you are comfortable executing if and when the time ever comes. Don't wait until it's too late to act. If you feel something is not right, do something about it. Better to be one hour early, than one second too late

By Matthew Zorn