Keith Hennessey, Director of the National Economic Council under George W. Bush, has gone through the health care ‘reform’ bill drafted by Ted Kennedy and Chris Dodd. Yeah, it’s as bad as you might fear. Lots of regulations? Check Increased……

Preparing for a long survival in social chaos is not the same thing as preparing for a couple of weeks after a hurricane or earthquake.

Right, I agree. However, I assume that however much I prepare, such an unfamiliar style of living will have a bit of a learning curve – it’s worth it to me to have some food stockpiled to give me time to learn how to get more, depending on the circumstances. My main concern is purchasing a firearm – I need training, since I’ve never used one before, but the reality is that I don’t know if I can afford a gun, ammunition, and lessons while also saving for financial emergencies – I don’t make that much. Thanks for your thoughts, though. Anything else?

I don’t recall exactly, perhaps it was Walter Williams or Thomas Sowell who wrote that Health Care Insurance as we know it first came about during the wage freezes imposed by FDR in the WW2 years. Employers couldn’t offer higher wages for the same work to attract better employees, so they offered benefits.

The question, I think, is how to prepare? You mentioned self-sufficiency: I think it’s worth my while to learn as many survival skills as possible, and stock up in the meantime on necessities that will be expensive once hyperinflation hits. Any other advice or suggestions people have would be appreciated. Thanks.

Animator Girl on June 4, 2009 at 11:25 AM

While stocking up on those “necessities” give some thought to reconsidering what that really means. Preparing for a long survival in social chaos is not the same thing as preparing for a couple of weeks after a hurricane or earthquake. Spare parts for firearms, ammo and reloading supplies, garden tools and seed, sewing kits and cloth, livestock and related equipment are all things to consider. You can only store so much food and water and it will eventually run out. The main thing to stockpile now is knowledge. That is the only thing you take with you where ever you go. With it you have hope. Without it you are a sheeple.

I’m an attorney and CPA and I’ve spent my career in the world of investment banking, hedge funds, and private equity, etc. Tell your mother I’m almost certain a depression is on the way and many of my colleagues believe the same thing because the math has finally caught up with us.

flyfisher on June 3, 2009 at 10:36 PM

I have never taken an economics class, so logic and observation are my only tools to analyze current events. I’ve been certain for some time that a depression is coming, primarily because it is impossible for an economy to recover without incentive for businesses to hire new employees, and I see none on the horizon. It’s nice to hear someone with experience corroborate my conclusion, though I wish we both had a more optimistic view. No point in fooling ourselves, I suppose.

The question, I think, is how to prepare? You mentioned self-sufficiency: I think it’s worth my while to learn as many survival skills as possible, and stock up in the meantime on necessities that will be expensive once hyperinflation hits. Any other advice or suggestions people have would be appreciated. Thanks.

That’s true on most things but people are going to notice that their paychecks are significantly less. I’ve written a lot of payroll software and there are many people that will call about their check being off by even a penny. That may sound like an exageration but it’s not and I promise you that it will be noticed without the MSM even bringing it up.

JohnnyL on June 4, 2009 at 9:20 AM

Excellent points, JohnnyL

ABC my friend… Anything But Cash (or Cash based goods for that matter). Stuff of real value will come in handy.

Chaz706 on June 4, 2009 at 1:34 AM

Particularly guns, ammo, and provisions.

I’m stocking up on all of the above.

Not paranoid, just prepared.

In which case, er, where’s all the revenue from taxing health benefits coming from? I’m missing something.

Yes, you are missing something. You forgot to consider the unicorns.

In comparing the proposal to McCain’s plan, the MSM is merely trying to defuse any opposition from Republicans by saying “Why object to this? After all, it’s only what McCain proposed.” In fact, while McCain proposed to tax the employer paid portion, he was also offering a $2500 to $5000 tax credit. Missing from the news about the Baucus proposal is any mention of a tax credit as this is strictly a revenue grab to pay for the new Obama care to the current uninsured.

If my own employer paid benefits were taxed, I would have to switch to the plan that cost them the less….an high deductible plan that utilizes a health saving account to try and escape from some of the tax. However, how long does anyone thing that HSA contributions would remain tax free?

2012 can’t come soon enough.

Pablo)

As ted c alluded to, that only works if you have a vigilant media dogging your steps. Ogabe has a fellating media, or didn’t you notice?

(We just need to get to 2010 and make enough gains to make Obama a lame duck.

DerKrieger)

I believe Ogabe’s plan is to have everybody terror-stricken and in fearful paralysis by then. He will blame the crash on GW Bush and claim to hold the key to salvation. The fellating media will paint him in shining armor atop a valiant steed ready to lead us to salvation. America proved in 2008 that we are stupid enough to buy that crap. Why wouldn’t it work?

Chaz706 on June 4, 2009 at 1:34 AM

ABC in a deflationary environment…did I read that right? If you meant ABC when inflation comes, 100% agreed. If you meant ABC in deflation, you’re nuts. During deflation, cash is king.

NoLeftTurn on June 4, 2009 at 1:24 AM

No matter what you decide to invest in, get rid of your 401k and IRA. Liquididate them and pay the penalties if.

In 10 years or maybe even sooner Social Security will become a means tested program. Anyone who has $1 in 401s or IRA accounts will not be eligible as they are “rich” and don’t need it.

The absolute worst thing to do IMO is a Roth IRA. In theory that sounds good, tax free growth. But come on, do you really think the govt will let you take that money out without any taxes in 10, 20, 30 years?

Private-sector businesses spend about $518 billion a year on their workers’ health insurance, benefits that are not taxed. If workers had to pay taxes on their health coverage, it would raise $246 billion in revenue each year, according to the congressional Joint Committee on Taxation…

By my some what fuzzy math, this says they not only plan to tax our health care benefits, they intend to tax them at a rate of 47.5%. At that rate it in almost assured that people will have to opt in to the government plan.

http://www.youtube.com/watch?v=11-2WMf1u7Q

Beware the Debt Star.

It’s effects on the Economy are starting to make it the 4 trillion dollar white elephant no one wants to talk about.

But something tells me that surviving in the stock market will require something akin of a Jedi who can sense it’s next moves, and their effects on the Economy.

May the force be with you! Always!

Where’s the best place to be in a deflationary economy? Commodities? I keep reading/receiving conflicting advice.

I figure it’s not long until 401(k)s and traditional IRAs go the way of the do-do bird as well, which will leave us all saving on our own for retirement. Do you — or does anyone else? — think it would be wise to convert everything to a Roth now?

NoLeftTurn on June 4, 2009 at 1:24 AM

ABC my friend… Anything But Cash (or Cash based goods for that matter). Stuff of real value will come in handy.

I agree with you, I’m in the deflation camp. I was short most of last year. but right now you’ve got to be so careful. We’ve been in a typical bear market rally. I’m convinced I know what’s coming (generally). What I’m uncertain of is the timing. I feel confident the market will sink like a stone. I just don’t know when, so I’m not short any more. Instead I’m jumping in and out, scarfing profits here and there, trading on short term momentum. Buy and hold is a thing of the past.

flyfisher on June 4, 2009 at 12:04 AM
(emphasis mine)

I’ll give you a hint… keep a sharp eye on the bond markets. When it gets to the point where no corporation can sell bonds to finance their operations the real credit crisis will hit us with a vengeance.

The Sh%t will hit the fan completely by 2011-2012 if not before. I’d guess that’s our time frame. If the Feds start raising interest rates… well… it’s time to cash your chips and ride out the storm.

Why do I say this: well, all this debt has to be funded by either other nations buying our Treasury bills, or by the Federal reserve printing cash and inflating the system. Either leads to less bond buyers. If by inflation, bonds wont be bought because everyone will know they’ll be worth far less when they get their money back. The only alternative is to sell the T-Bonds and that picture doesn’t look pretty either: If they go that route, they WILL have to raise the interest rate because we’re finding less and less buyers. The T-bonds have to have a higher rate of return in order to be attractive enough to prospective buyers. Raising interest rates during a period of economic growth post recession could drive us into another one! It’s analogous to a tax increase because it will keep corporations from getting the cash they need to grow.

Either way, the corporate bond market is socked.

flyfisher on June 4, 2009 at 12:04 AM

Where’s the best place to be in a deflationary economy? Commodities? I keep reading/receiving conflicting advice.

I figure it’s not long until 401(k)s and traditional IRAs go the way of the do-do bird as well, which will leave us all saving on our own for retirement. Do you — or does anyone else? — think it would be wise to convert everything to a Roth now?

ted c on June 3, 2009 at 10:36 PM

Ted,

Anyone who brings this up will be met with, “Well, it’s the same thing that McCain proposed, and you supported him, so why do you have a problem with it now?”

But you are absolutely correct. Just another example of hypocrisy from Dear Leader.

By the end of this year, anyone who has not become a fiscal conservative (or at least lost that hope and change feeling) has to be either a complete idiot, or been asleep for a couple of years. Look at New Jersey and California – people are (finally) rejecting oppressive taxes and these insane spending deficit policies.