The New Great Depression

Last year I warned of a new Great Depression that is rapidly approaching. The naysayers probably laughed because, as we all "know", we're not in a depression - yet. However, 1929 and 1930 didn't seem like the beginners of a depression, but historians now consider 1929 to be the start of it. I think future historians will consider 2007 to be the start of the new Great Depression. We're actually in worse shape today than in 1929. Debt levels are higher and more governments, businesses and people are on the brink of defaulting than ever before. Even some American politicians are now warning of a financial Armaggedon. It's like a ship, that on the surface, seems okay, but deep in the hull water is slowly leaking in. Eventually it becomes obvious to all that the ship is in very serious trouble. So how does it affect us as writers? For starters anyone who writes for American markets can expect their incomes to drop drastically. There are plans to replace the American dollar as the reserve currency of the world. If that happens the American dollar sinks immediately. I think the Canadian dollar could go as high as at least $1.50 and quite possibly to $2.50 American. Companies will go bankrupt, which means the loss of markets. Financial insitutions will close, which means loss of money and credit. Governments will introduce drastic cuts in services and assistance, which may not be liked, but are necessary. Extremism is increasing. Some have noticed a rise in anti-unionism, which is a symptom of the coming depression. Any investments you hold could either become worthless or increase in value depending on what they are. For example the bonds of companies and governments that default would go to zero or, at best, be worth only pennies on the dollar. At the bottom of a depression, if you still have money, you can make money by buying stocks, bonds and realestate at bargin basement prices. That would be a good time to start a business as prices are low. In the meantime, if you haven't already done so, cut expenses and reduce debt. Don't get into any new debt. Look for companies that are likely to survive and thrive during bad times. Finally get out of risky investments and end your relationships with companies and governments that are likely to go under.