Recession, depression reprocussions???

[TanksHill]

I just got off the phone with a good friend. We were discussing financial issues and how hard things are getting. Now that we are officially in a recession, and with the threat of a true Depression looming, I need clarification.

What will happen in a depression? What will the economy be like? What will happen to the basic services and normal life as we know it. I am not trying to be dramatic. I just need to know what I should be preparing for.

I too am stressed because of financials and the holiday season. I have no cash, I have no animals other that chickens. I do have some food stores. Obviously not enough. Maybe I can work on that first. Any and all advice welcome. G

 

[MorelCabin]

Well I have no idea what to expect from a depression. Don't exactly know what it is either except that our grandparents survived it or we wouldn't be here...so I am just making sure we have food stores on hand and a garden to grow every year.
A depression will be a whole different thing this time around though, with so few people who have the knowhow to store foods to last the winter and so few with farms to be able to keep cattle and what not. I think we will see alot more fresh produce stands with farmers selling thier stuff, and they may even have to resort back to selling thier beef straight from thier barns...which is illegal right now but that will surely change.
Crime will go up, people are alot more selfishly motivated than they were back then...better get a big dog, perhaps. I'm sure the governments will have some kind of food banks set up if it gets that bad...
Anyway these are just my thoughts...

 

[mrs.puff]

TH-- I think as long as you can provide your own food and shelter, you will be better off than a lot of people. We just will have to learn to "make-do" with less. If you have a good place to store it, I'd get my hands on some dry goods, stuff like dry beans, dried fruits, etc. White flour stores well, but is nutritionally lacking, but whole wheat goes rancid more quickly. Cornmeal lasts a long time. And learn how to hunt and fish if you don't know how. Unfortunately, cash might end up being scarce. We just learned that the president of our school board lost her day job at Principal Financial after 21 years. The layoffs are crazy. I'm just hoping my district continues to hire subs (my job). I think that the disconnectedness of our communities will be the downfall of the US. People really don't seem to care about neighbors or get along anymore.
I'm starting to ramble now....

 

[2dream]

Tough question. To my knowledge the words recession and depression are just words. Analysist and economist came up the with the word recession after the depression to describe short term downturns in the economy. I think "they" (whoever that it it),
use the term recession to indicate that the Gross National Product produced took a downturn for 2 conseceutive quarters.

So with all that being said I personally think we have been in a depression for months. When you have large numbers of people living in tent cities because they lost their homes, unemployment up to what now 6.5 or 7% or some such number, and employers are steadily cutting hours/ benefits and jobs plus considering our entire economy is based on "consumerism" and people are not consuming what else can you call it?

What to look for? The situation to get worse. We will see many more job losses, less goods produced here in the USA and higher prices on what is available to buy. It will take a little while but even the President elect has told us this will get worse before it gets better.

I personally have enough food stores to last about 2 months plus I already have a lot of my seed for spring planting. I did have enough food for 3 months but now have another mouth to feed so I figure 2 months on what I have stored now.

I am not an economist or a historian or even very smart about National Money things or how they work. I just know what I see and feel. We are in for a pretty tough ride but I feel extrememly fortunate that my job is secure for at least 6 more months and probably for the next year. My DH just took a job not making much money but it should be pretty secure also.

Store what foods you can and be as prepared as possible for some really rough times ahead.

One more thing I see with all of this is a very increased crime rate. So don't tell anyone about anything you have stored for your own use.

 

[mrs.puff]

no offense 2dream, but I think your comment about the crime rate is exactly what I was talking about when I said that people are not helping each other. All the stuff I've ever read about the previous depression say that people were respectful, helped each other, and had enough pride in themselves to work for their handouts. Unfortunately, you are probably right though, since it seems that morals have definitely fallen by the wayside these days.

 

[FarmerChick]

Worse times for the country in general are coming.

more layoffs, companies closing their doors, food prices still increasing, home loss, etc. etc. And along with that all the nasties rear their head.

So make sure you have cash in the house. Even if just a little. Cash goes a long way when needed.

Learn to garden if you don't know how. You can convert your entire yard, every inch, into a food producer very easily!

Put seeds in the fridge to keep cool if you store them.

Have a basic pantry stocked with easy to prepare items, pasta, canned foods with long shelf life, etc.

Your medical aids like antibotic cream and such stocked up. A basic survival kit type thing in the house.

Keep paying off debt and DO NOT if you can help it make new debt.



ya know times are bad but if you prepare a bit, keep your head on straight, don't overspend, be money conscious, then if times hit worse for you.....you can have that knowledge of knowing you did your best like so many others to stay afloat.

but in the end, what will happen will happen. life sure doesn't come with a guarantee.

 

[sylvie]

Tough question. To my knowledge the words recession and depression are just words. Analysist and economist came up the with the word recession after the depression to describe short term downturns in the economy. I think "they" (whoever that it it),
use the term recession to indicate that the Gross National Product produced took a downturn for 2 conseceutive quarters.

So with all that being said I personally think we have been in a depression for months. When you have large numbers of people living in tent cities because they lost their homes, unemployment up to what now 6.5 or 7% or some such number, and employers are steadily cutting hours/ benefits and jobs plus considering our entire economy is based on "consumerism" and people are not consuming what else can you call it?

What to look for? The situation to get worse. We will see many more job losses, less goods produced here in the USA and higher prices on what is available to buy. It will take a little while but even the President elect has told us this will get worse before it gets better.

I personally have enough food stores to last about 2 months plus I already have a lot of my seed for spring planting. I did have enough food for 3 months but now have another mouth to feed so I figure 2 months on what I have stored now.

I am not an economist or a historian or even very smart about National Money things or how they work. I just know what I see and feel. We are in for a pretty tough ride but I feel extrememly fortunate that my job is secure for at least 6 more months and probably for the next year. My DH just took a job not making much money but it should be pretty secure also.

Store what foods you can and be as prepared as possible for some really rough times ahead.

One more thing I see with all of this is a very increased crime rate. So don't tell anyone about anything you have stored for your own use.

In the 70's recession people were stealing fruits and vegetables out of gardens. The rational was "they were better off and could afford to lose some broccoli". This mindset progressed to anything someone saw that they wanted, gas out of a car tank, firewood, clothes on a line, a coat on the back of a chair in a restaurant was considered fairly gotten. The age groups were divided in loyalty with the young adults justifying their actions against 30 year olds and 30 against 50 and on. It was crazy.
Shoplifting became so rampant that stores were closing because of that reason alone.

During the Depression there were soup kitchens but not in the country. My DH's father traveled with his father by hopping trains and searching for work. They found odd jobs here and there and ate at hobo camps. The Depression pulled families apart with the men searching for work. Children were taken to orphanages because the families couldn't feed them. I don't know why the food banks weren't in rural areas but I don't expect them to be available this time around either.

 

[Dace]

Well I think we are in for a pretty rough ride. Worldwide we are so interconnected and interdependent that it will be potentially devastating to many of the poorer countries.

I think that many folks who live above their means and lean heavily on credit are going to be in for real quick slap in the face. Living frugally now with an eye towards the future is going to be prudent!

Stash cash
Don't take on new debt
Cut additional expenses now
Store guns & ammo
Learn to can (if you don't already)
Plant a large garden
Stockpile (reasonably) food, water & necessities
Update your first aid kit
Stock up on candles
Store extra wood if you use that for heat
Invest in some homesteading type books
Stock up on seeds
Plant a large garden
Maintain a compost pile to feed your garden

That is really all I can think of for now. I would not talk to much about your preparations to people, you don't really want everyone turning to you if you aren't prepared for that...on the other hand if you have family close enough to come to you for help, best prepare for those additional people now.

For what it is worth, do what you can, keep adding a little here and from your needs list...realistically, no one knows what is coming so don't stress about it, but do be proactive and do what makes sense to you.
My hubby thinks I am nuts, but really I believe we are in for a hard road.

 

[sylvie]

Seventh Day Adventists will instruct on how and what food to stock for a year. I used to shop a natural foods store run by a SDA family and they were not only knowledgeable but had always lived that way.

 

[TanksHill]

Thank you all for your opinions and advice. I must admit early this past summer when things started to change around here. Housing market etc. I got some erie feelings. I refinanced my home in March and got rid of all unnecessary debt. Which I think is the only reason we are getting by right now.

After doing some reading and searches I found a couple great web sites. This one of course and emergencyessentials.com. I read a lot on recommendations of food stores, first aid and other necessary supplies. All summer I have been expanding my storage. Including garden seeds, and sprouting seeds. And a bunch of other food stuffs that have great shelf life. The motto "use what you store and store what you use" has made a big difference around here. My husband thought I was nuts. But now look. We are living 2 - 3 meals a week off of the basics in my pantry. Not because we have to but because I want my children to learn to eat simply.

I have my new raised beds built and are loaded with manure and mulch. I have always had a Victory garden. And have strived to teach my children the basics. I have some winter plants in now but can't wait fr spring.
I acquired a new Roo last week. My 24 hens are thrilled.
I am still saving for a fence. It is at the top of my priority list. I would like to get some larger animals. The fence is for them and security.

I think bringing home a couple new dogs might be a great idea. I will need to work on that one.

I have never shot a gun. Not something uncommon for a California girl like me. Maybe I can find a range somewhere and take a lesson or two.

I am going to have a yard sale this weekend. I am going to sell every unnecessary item not nailed down. I am so needing to clear the clutter and clean out the closets. I figure that cash can be my emergency fund. May not be much but it's a start.

I guess most of us here on this forum are so far ahead of the every day person. We know the basics already. I was just hoping there would be some old timer around who could give us insight. Or at least add that one thing were forgetting or missing. I look forward to hearing more.
thanks again, g