Most people are woefully unprepared for the depression that is now unfolding, says economic analyst Nicole M. Foss, senior editor of The Automatic Earth. In a depression, there’s not enough money in circulation. “But by using alternative currencies, we can provide our own liquidity and support economic activity in local areas.”
Her colleague Laurence Boomert, the founder of The Bank of Real Solutions, shares several success stories. When government spending dried up, his town of Golden Bay, New Zealand used their alternate currency to keep educational programs going.
“If we didn’t have crises, we wouldn’t change,” Laurence asserts. “It’s a great time” to take action now before things get difficult. One guide is Nicole’s “How to Build a Lifeboat” to cope with the difficult years ahead. Episode 253.
How to Build a Lifeboat
1) Hold no debt (for most people this means renting)
2) Hold cash and cash equivalents (short term treasuries) under your own control
3) Don’t trust the banking system, deposit insurance or no deposit insurance
4) Sell equities, real estate, most bonds, commodities, collectibles (or short if you can afford to gamble)
5) Gain some control over the necessities of your own existence if you can afford it
6) Be prepared to work with others as that will give you far greater scope for resilience and security
7) If you have done all that and still have spare resources, consider precious metals as an insurance policy
8) Be worth more to your employer than he is paying you
9) Look after your health!
Watch video | Audio | iTunes | Watch part 2 here | Janaia’s journal: What’s Ahead for the Money Economy and How to Meet It