My New Economic Plan Pt 2: Get small before you get low

We should get small before we get low, especially if we live in SW Ontario. You know, like in Deforest City.

Why?

How about this for one reason:

“Southwestern Ontario is more exposed to the US economy than any other place in the county . . . I don’t think we will get the unemployment rate down much in the next few months,” said Douglas Porter recently, deputy chief economist with BMO Capital Markets (Sept. 11, The London Free Press)

How about this for another:

A double recession could easily occur in the US, and Canada is tied to that elephant’s hip.

“Despite some signs of recovery this spring, the US - with 9.5% unemployment - has made up few of the 8 million jobs it lost in the last recession, despite massive government spending to stimulate the economy. Home foreclosures in the US are also again reaching record highs, jobless claims are rising and core retail sales are falling - factors some believe are harbingers of another recession...” (Aug. 14, London Free Press)

How about this:

“The economies of the G7 industrialized nations (i.e., Canada, France, Germany, Italy, Japan, United Kingdom, and United States) are slowing faster than previously forecast... The biggest threat may be the slowdown in private consumption because of weak housing market, high unemployment and households continuing to put their finances back in order.” (Sept. 10, London Free Press)

And finally:

A toilet seat belonging to late Beatle John Lennon recently fetched $14,740 at an auction.



[Graph at Zfacts.com]

Though the selling price was about 10 times original estimates, I think it would have fetched a lot more had our economies been healthier.

But maybe that’s just me.

At any rate, I believe now is the time to get small, reduce every aspect of your lifestyle in some way, reduce debt and save money for tough times ahead.

Forget the fact that another round of worries about growing personal debt is about to hit the airwaves near you. There is a bigger problem afoot.

And that problem is the American national debt, now about to surpass $13.5 trillion for the first time in the history of the universe.

How much is $13.5 trillion and what does that mean to anyone within the sound of my keyboard?

Please click here to read My New Economic Plan Pt 3.

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See Get Low at the movies. Plan your own funeral party.

$13.5 trillion is getting close to the US GDP. Debt almost equals earnings.

Unprecedented?

I’ll find out.

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