There has been a lot of talk in the last months about the economic crisis, recession, slow down, etc. of the world economy. While the government provides its own formula, that I don’t think it will work out well, I believe that the solution lies within our hands if we follow this simple recipe (that is a result of several masters and phD in economics I have ;-)): this is my (Im-)Practical Guide to Avoid the Crisis.
The tip is, follow these “simple” steps that will allow you to leave unharmed the current “panic situation”, no matter that the world markets are having a big storm.
1. Pay off your debts: Some experts say that this kind of world crisis works for the interest and benefits of a few. When things are going well, the corporations and enterprises that control the world created worldwide crisis, so the value of small companies fall down and they can acquire it for pennies, consolidating more power and control.
Enterprises and banks alike, instead of borrowing money in the form of credits or mortgages, seek to accumulate benefits on account of the masses, the mob, and the working class. When there is no money to borrow, then you have to find it somewhere, this is to say, collecting it from each and every loan granted, or impounding the assets put forth as warranty (houses, buildings, real estate, etc.). At the end of the crisis, the net result is that the wealthy will be wealthier, and they will control wealth distribution in the planet even more. For this reason, the first step to avoid an economic crisis is to hold no debt. Pay off you mortgage and your credit cards, and do not owe anything to banks or others.
2. Financial Freedom: Your money should work for you, instead of you working for your money. Now that the world markets are in record lows, and falling week by week, it is possible to see a lot of acquisitions by some companies (the ones that created the crisis, it is said) over others, so this is a good time for long term investments.
I am not a market expert, but I have noticed that the price of many stocks are plummeting, and for sure someone will take the advantage to buy cheap and, within a year or two, sell high at a profit. If you own a company, buy assets using the benefits before taxes to capitalize and generate additional benefit. If you are on your own, maybe it is a good idea to invest in gold or other metals, which have a higher intrinsic value regardless of the state of the economy. Second step: put your money to work for you, buy assets that generate or are capable to generate more benefits.
3. Mens Sana in Corpore Sano: The price of many staples is still very high despite the recent drop in price. On top of that, sooner than later, some marketing campaign in the mass media will be launched enticing us to buy more imported food, from unknown origin, artificial or transgenic (genetically modified), which is nice looking, cheaper and longer lasting. Companies like Monsanto are hard at work to make fortunes with their transgenic products globally, and the only thing left is for us to start consuming food produced in the laboratory, no matter what nutrimental benefit, if any, they may want to sell us. A population in poor health is a population worried about nothing else, unable to make the right decisions or to protest against any measure they want to impose upon our ailing physical condition. Third Step: make a garden and grow your own tomatoes and potatoes. Your body and mind will be grateful
4. Energy Independence. The United States wants to control the oil in the Persian Gulf, Russia is exploring in the Arctic to control and exploit its subsoil reserves, and other producers are reducing world oil output in order to raise the oil price again (with all the parties involved, who thinks that the price will go on at US$ 40 a barrel). We either start using the bicycle more or our economy will suffer. To make matters worse, when the oil price rises again, oil derivatives will also become more expensive, along with the electricity, gas, etc. To reduce our energy dependency makes us more free: Install solar panels at home, and use public transportation, or the bicycle to move around. Reduce your oil dependency.
5. Mass Misinformation. If you want to sleep, stop watching TV. In case you haven’t noticed, 90% of all network programs have only one objective, to keep the people in a passive state, worried about things or enticing consumerism. Furthermore, since most news come from the same source (corporate news outlets and press corporations that in the end belong to a few hands), in practice we know only what they want us to know. Stop swallowing 20 minutes of advertising for every 5 minutes of junk content and start reading, and if you really want to understand the influence of the mass media, read authors such as Noam Chomsky, Naomi Klein or the like, and you will see how you change the way you watch the news. Fifth Step: Read more books and watch less TV, you will sleep better and more relaxed.
In summary, this (im-)practical guide on how to avoid the crisis may resumed in a few words: financial and economic freedom, healthy nutrition, reducing energy dependence, to stop mass misinformation and the passive state, and become truly aware of reality.
I never said this was some magic trick, but only a little practical guide to avoid the world economic crisis that it seems is spreading fast around.