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Well, just three years after
Katrina, here comes Hurricane Gustav! While we are pretty far inland,
the storm's track looks like it will run right over us. My lifetime partner,
wife and witness to my life (the long-suffering and lovely Miss Puddy) told
me, "Perhaps, we should take a few measures to rig for a
storm." I dutifully put all the lawn furniture, canoe and anything
else that could fly around in a high wind safely away. Also, we made the
automatic trip to the grocery store that everyone in the South makes whenever
a hurricane approaches. We stocked up on enough food to carry us through a
month, or so. In addition, I finally broke down and purchased a generator
that we can also use for our Airstream travel-trailer - I have been putting
off the purchase for over six months, waiting for it to go on sale (fat
chance of a sale today on generators). Puddy said that she did not want to
sit around in the dark and watch the food in the freezer spoil if the power
went out for a few days. I was also sent out to fill both vehicles and a
couple of spare fuel cans with gasoline.
It is only prudent to take a few preparations, when you are fairly certain a
storm is approaching, and yet what about the approaching financial storm? A
recession is possibly on the horizon. Whether the Federal Reserve can pull
another rabbit out of its hat is still to be seen. And even if they can, will
it only put off the inevitable clearing of debt a little longer and make it
even worse when it finally arrives? So, what can you do to batten down the
financial hatches and how to rig for a financial storm?
Well, first, get your debt under control. Quit buying things that you do not
need or cannot afford. Pay down your debt. It is not the time to buy a new
car, unless you can pay for it outright. If not, then drive the old girl a
little longer or trade it in on a newer used model that you can pay for
outright. Build up a cash reserve to last a couple of months (six months
would be better). Keep a little of that cash close at hand, outside of the
banking system. Take stock of your complete financial situation and run a
personal financial statement. If you are lucky, your assets are greater than
your liabilities. If not, then you need to take a serious look on how you are
living your life and perhaps learn to live below your means, so that
you can save a bit. If you have been prudent enough to save, then look
carefully at how your savings are invested. True inflation is running
around 10%, so are you keeping your savings safe, but still in front of
inflation? Finally, have you built your financial lifeboat? I
recommend that everyone in good times, keep 10% of your entire net worth in
precious metals. In uncertain times, you may want to consider 20%, or maybe
even 30%, of your entire net worth in precious metals.
Remember that the time to build your position in precious metals is before
the storm hits. When the storm hits, it is too late to go shopping for
supplies or lifeboats!
Wishing everyone fair winds and smooth seas,
Happy moments, Praise God.
Difficult moments, Seek God.
Quiet moments, Worship God.
Painful moments, Trust God.
Every
moment, Thank God!
Larry Laborde
Silver Trading
Company
www.silvertrading.net
Larry lives in the occupied South with his wife Puddy and sells
precious metals at the Silver Trading Company. Larry can be contacted
at llabord@aol.com. You can view
his web site at www.silvertrading.net.
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