Aid Queues.
I read yesterday an article on an American website written by an Argentinian writer who was urging people in Western nations to get their money out of the banks while they still can. He cited what happened in his country some years ago where people couldn’t withdraw their funds and had no money to live on. The tale was harrowing.
Then last night I spoke to a cousin of mine and she recounted the story that several of her friends have been buying tinned food, rice and flour, coffee, etc, for some time in case the economy goes down as a result of the sub-prime crisis. Her husband is losing $1,000 a week on his large super payout so she tells me. I’ve been in a state of stress ever since.
In Australia, the government does not guarantee a certain level of lender’s deposits in the banks as they do in Britain and America. In Australia, if the banks goes down you will probably lose all or most of your savings because the banks have loaned most of their investor’s money out and cannot give it back should a run on the banks occur.
In my case, as with many, the money I have in the bank is all I have to provide some modest income for what laughably is called my semi-retirement (anyone who runs an informed blog works quite hard let me assure you). No money - no income. Images of long soup queues and suited people jumping out of windows in Wall Street keep popping into my mind. It is disconcerting because the fact is that no one knows what the outcome of the largely American-generated financial crisis is going to be, or, if they know, they are not saying.
Our Prime Minister has, over the last few days, been telling Australians how profitable their banks are, how well capitalized they are, how well regulated they are. Not at all like American financial institutions, he says. His words are reassuring but, like King Canute, is he trying to hold back the approaching tide of a financial tsunami? Is he protesting too much?
I have discussed with my wife the possibility of withdrawing some of the funds and keeping them under my mattress so we have some money to live on should things get really bad and our funds are frozen or non-existent. She has spoken about buying some hens so we will have eggs and fresh meat. Her garden is quite productive and we do have some fruit trees but probably not near enough to make us self-sufficient.
Ye Gods, how is it possible that the world has reached a stage where people have to consider preparing for such frightening possibilities as a depression? How come we can send people into outer space but we can’t set up a stable financial and economic system where survival is guaranteed? How come the people who brought us to this point have millions of dollars salted away in safe havens while we, the producers and consumers of the world’s goods and services, have to worry about our survival? How come the governments allowed a group of rapacious, suited gangsters and con men to freely gamble with billions of dollars of borrowed money, our money?
When we go to bed at night now, we don’t know what kind of world we’ll wake up to. Anything could happen.
It’s frightening! I feel real fear.
David, I have a limited education,but I have been in the university of life for some time and I can tell you this much, that the last few bucks I have in the world will be pulled out the bank Monday.
The financial melt down is growing by the day, and our own P.M. knows more than he is letting on.Of course they don’t want to cause a panic, and a run on the banks.
However,I don’t know what economic school most of the shysters who call them selves economists went to, but as a layman I can tell you, for mine, the printing presses are working overtime.
You don’t have to be a Rhodes scholar to work out what is going to happen.
What was it the captain of the Titanic said as she was going under? Don’t panic, this ship is unsinkable.
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The UK Government had just upped the amount it will guarantee to £50,000, anything over that you have a chance of losing out on if the bank goes under. I wouldn’t trust any Government as far as i could spit with regards to my savings, they have said too many times that things will be alright just before it all collapses so i don’t blame you for putting your savings under your mattress, safest place for them.
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Dear David, buy the hens! Either way, you ll eat fresh, tasty, real eggs.
Dear Phil, I ll do the same. Get the money out by end of this week.
Dear friends, put some loud music on (:) whatever music you like
) 
, burn some incense, get some sun, and shut the fear away!
Take action, (get money out of bank, buy food, whatever you feel right).. make a list, do what you can, and that s it.
Forget the fear!!!!!
Do what you can.. and , as Gone with the wind says.. tomorrow is another day.. Forget the fear!!!!
Happiness and peace to you all, with all my heart!
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Getting your money out of the banks is fine, as far as it goes. But what if the currency is worthless? This is the real fear, in my opinion.
Black pepper anyone?
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Phill, I don’t mean to be alarmist but the point you make about the little people being the last to know is valid.
Lucy, does laying on a mattress stuffed with dollar bills make me a capitalist?
Adina, your Buddhist philosophy (which I share) is calming.
Kvatch, you’ve just made my day!
Cheers.
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Get a fireproof safe, so I’ve been advised..
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Sound advice, Swan. Take care!
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Silver coin is the way to go or copper pipe. The coin is always useable as money even when the paper is spurned and copper pipe is easy to store and will maintain it’s value over dozens of years.
Some contractor will always buy pipe from you at a discount and copper isn’t getting any cheaper. Also it’s not immediately obvious to a thief or looter.
Don’t hold too much paper. Think Zimbabwe.
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If the financial world goes kaput they won’t need copper pipe, Pangolin. I agree that holding dollar bills if there’s hyperinflation won’t help much either.
Perhaps canned food might be the answer. At least you can eat that!
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does laying on a mattress stuffed with dollar bills make me a capitalist?
Afraid so, hand in your copy of Das Kapital at the door on your way out.
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The truth the Mainstream Media doesn’t wanna admit about this is that this most recent economic downturn will BARELY affect the average, lay american.
Why? The last three economic booms had little to actually do with productivity gains or general production improvements. They had to do with creating money, while not creating value. (sorry to be so abstract here)
So the dotcom bubble did nothing to most Americans (except hurt the ones that invested in foolish ROth IRAs or 401ks) . This one will also do little to change the conditions for small businesses.
The reasons they’re trying to create all this drama about it is to get ppl worried enough to bail out these rich goons with our publicly held funds. How else could they talk us into this giveaway.
Finally, just a quick statistic about how LITTLE the last three economic booms have had to do with the average american. In 1980, the richest 1% drew 8% of all the nation’s income. In 2006, the richest 1% now drew 20% of the income.Btw, average median family income DROPPED by 2,000 dollars since 2001. So then, who did this most recent “economic boom” really benefit?
Buck Fush,
–Reverend Manny
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Lucy, please don’t tell Cody!
Rev Manny, economic booms do not, I repeat, do not help the goons! They are special cycles instituted by the rich and right-wing politicians to increase their wealth.
Cheers.
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“Rev Manny, economic booms do not, I repeat, do not help the goons! They are special cycles instituted by the rich and right-wing politicians to increase their wealth.”
Which of course is true.Unless you live in Iceland, apparently they are the first country to be officially declared, “Bankrupt”
Yikes Iceland bankrupt? All those billions they owe their Anglo Saxon cousins to the south of this cold land, they will not be amused.
Maybe they will pay off their debt in fish! Ah I hear what you say, what fish? The ravenous English diet for fish and chips has exhausted all the stocks.
But wait there’s more, the good Ivans are going to lend them the last of their own rubles to pay off their former enemy.My God, Philby and Burgess will be mortified.
But all is not lost, George Bush is going to address the nation later whilst we all sleep here, and impart his wisdom to the faithful on how to get out of this mess.
It’s getting funnier by the day folks, trouble is no one is laughing.
Well maybe just Paulson,at us.
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