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Willy Weasel

Ten Things You Must Do

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Karl Denninger posted this last week. It's written for a US audience but much of it could equally apply here.

So without further adieu, here's my list of 10 things you need to be doing now:

Stop listening to those who claim that "The Market is telling you the recession is ending/over." Baloney. What was the market telling you in October of 2007 when the SPX hit 1576? That everything was great and "subprime was contained", right? Any more questions on that piece of nonsense?

Get out of debt - NOW. Revolving debt in particular is murderous. If your credit line hasn't been cut back or your interest rate jacked, you're one of the few. It will happen. Going bankrupt due to increasing debt service requirements (with or without job loss) sucks.

Stop spending more than you make - in fact, do the opposite - start saving. NOW. You need to be saving 10% of your gross income. Not net or "excess" - gross. These funds serve two purposes: an emergency fund (which you're likely to need) and if you have one already it will also serve as a fund to buy up assets that will be puked up when things get really bad. You don't get wealthy by selling to some other sucker - you get wealthy by buying when nobody has any money to buy - that is, by driving the hardest bargain you can imagine!

I've said it before but it bears repeating: have the ability to make it even if you lose your job. Most people say three months of reserves are necessary. I've said six months to two years, and I'll reiterate it. And reserves means cash, not credit. Parked in a credit union is ok - but be prepared to make that actual cash in a big honking hurry if you need to. How do you know if you need to? If and when the first Treasury auction fails, the market crashes below the 666 March low and/or a big bank fails, you need to.

Pull ALL of your business from ANY bank that has received federal assistance. The community banks and credit unions have been screwed by the crony government interests in two ways - first, by regulators allowing bankrupt banks to pay overly-large CD rates when they're insolvent (that's fraud on its face) and second by proposing to tax them through FDIC assessments to pay for the sins of the imprudent. Withdraw your consent and assistance - move your funds to a credit union or local community bank, but before doing so ask to see their financials and look specifically for over-leverage in commercial real estate and other development "assets". HIT THE BAD GUYS IN THE WALLET - THE ONLY PLACE THEY UNDERSTAND!

If you have assets in the stock market, and have thus enjoyed the rally off SPX 666, either sell or hedge that exposure RIGHT NOW. The upside risk is what - 10%? What's the downside risk? 50% or more. You can hedge effectively with PUTs which have gotten much cheaper as the VIX has fallen, or simply sell out and go to cash. In my opinion you're insane to play for another 10% gain when you may suffer a 50% loss, but that's my view. Just don't say you weren't warned if you do nothing and the collapse occurs!

Figure out what you're going to do if we suffer a "sudden stop" and be prepared to execute that plan. Consider what a collapse in trucking, for example, does to the food supply into major cities. This is a low-probability risk right now (perhaps 10-20%) but if it happens major cities will become free-fire zones within hours. A gun won't do you a damn bit of good when there's a potential rifle barrel sticking out of every window and the person behind it is interested in the bag of groceries you're carrying. You are not Rambo (and by the way, have you noticed that Rambo always goes after bad guys in some small, flat hellhole? Ever wonder why? With a sniper rifle poking out of every second window even John Rambo doesn't stand a chance.) Those who live on the coasts have hurricane plans. Everyone needs a "sudden stop" plan, and it must not rely on access to credit of any sort, because if "it" happens that access will disappear instantly. For people in rural America, this might not be that big of a deal. For those who live in big cities it is - and its something you probably haven't thought through to the degree you need to.

Don't count on metals. I know, I know, we're going to hyperinflate and gold is going to the moon. I have one question: Can you eat it, drink it, run your car on it, sleep under it, or screw it? No? That's a problem. A "sudden stop" is not a hyperinflationary event - it has good odds of being quite the opposite. God help you if you put your eggs in that basket and are wrong.

Acquire lawful means of self-defense. Your odds of being victimized are roughly 1 in 100 annually under normal conditions. What happens when its 1 in 5? Think it won't be? Ok, if doesn't really get bad then you spent money on something you don't need, but you still have it and can sell it (even if you take somewhat of a loss.) If you wait, and then decide you need it, what are the odds of being able to find a firearm? And by the way, weapons you don't know how to use in a competent and cool fashion if you need to are worthless or worse. This means range time and/or professional instruction, and both take time, effort and money. Again, this is called "hedging" - your life and property, this time (instead of your investment portfolio)

Figure out who your friends are - and aren't. This isn't about who you like. Its about who you can trust with your back - no questions asked. If things get bad the second-to-the-last thing you want to be is alone - right before being around anyone who is less than 100% trustworthy. Think about this point long and hard - this doesn't mean dumping acquaintences now, but it does mean knowing who you group with if you need to - and who you avoid.

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Acquire lawful means of self-defense. Your odds of being victimized are roughly 1 in 100 annually under normal conditions. What happens when its 1 in 5? Think it won't be? Ok, if doesn't really get bad then you spent money on something you don't need, but you still have it and can sell it (even if you take somewhat of a loss.) If you wait, and then decide you need it, what are the odds of being able to find a firearm? And by the way, weapons you don't know how to use in a competent and cool fashion if you need to are worthless or worse. This means range time and/or professional instruction, and both take time, effort and money.

Id love to be able to do this. :(

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Acquire lawful means of self-defense

Do we have this in the UK (apart from blubbing like a big girl and screaming "no, no, not the face", which is my preferred approach).

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Do we have this in the UK (apart from blubbing like a big girl and screaming "no, no, not the face", which is my preferred approach).

If it gets to the point where you need it I think whether it's lawful or not is pretty irrelevant.

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Don't count on metals. I know, I know, we're going to hyperinflate and gold is going to the moon. I have one question: Can you eat it, drink it, run your car on it, sleep under it, or screw it? No? That's a problem. A "sudden stop" is not a hyperinflationary event - it has good odds of being quite the opposite. God help you if you put your eggs in that basket and are wrong.

Poetry.....by the way, where is Injin?

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Id love to be able to do this. :(

Do you have a criminal record? If not, join a shooting club. Apply for a firearms and/or shotgun licence. Buy a firearm and/or shotgun.

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Guest anorthosite

That's a rubbish list:

1. Eat

2. Drink

3. Sleep

4. Pee

5. Poo

6. Screw

And to be honest, that's all :)

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That's a rubbish list:

1. Eat

2. Drink

3. Sleep

4. Pee

5. Poo

6. Screw

And to be honest, that's all :)

I find breathing helps too.

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Guest anorthosite
I find breathing helps too.

Just try not doing it and see what happens.

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Do we have this in the UK (apart from blubbing like a big girl and screaming "no, no, not the face", which is my preferred approach).

ball pein hammer is good, keep your foot wedged by the door, i have a 70kg bag of tools close by as a door stop if required, will slow them down as they try to get in, hit them repeatedly until they stop being a threat.

Dont walk anywhere, drive,

sleep with a 9mm on the bed side cabinet and an AK47 under the mattress.

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to be honest, if it's betwen inflation/poverty, and downright f*cking armageddon, I reckon inflation will win, and the public sector parasites will have to accept losing all their subsidised wealth in preference to being shot thru the groin and head.

Do you reckon GB knows this and fears the same?

Edited by Si1

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That's a rubbish list:

1. Eat

2. Drink

3. Sleep

4. Pee

5. Poo

6. Screw

And to be honest, that's all :)

Of course, many of these items can be combined. Although 5 and 6 is really getting into Eurotrash territory.

I find breathing helps too.

Avoid breathing in.

Link

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ball pein hammer is good, keep your foot wedged by the door, i have a 70kg bag of tools close by as a door stop if required, will slow them down as they try to get in, hit them repeatedly until they stop being a threat.

Dont walk anywhere, drive,

sleep with a 9mm on the bed side cabinet and an AK47 under the mattress.

Not much fvcking good under the mattress is it. You need one of these

GunCaddy00003.jpg

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Not much fvcking good under the mattress is it. You need one of these

GunCaddy00003.jpg

is trhat a bath plunger bottom-right of the photo doubling as a bed leg - handy...

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1. Eat

2. Drink

3. Sleep

4. Pee

5. Poo

6. Screw

Of course, many of these items can be combined. Although 5 and 6 is really getting into Eurotrash territory.

Let's face it most of us IT types have seen at least the first 15 seconds of the video that combines 1, 5 and 6.

Brrrrrr!

:huh::blink::huh::o:o

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Ten Things You Must Do

1. grab the nearest cat or next cat you see and tell it you love it so.

2. call 999 and tell them you think they do a great job.

3. go to work in a sharp suit to impress your boss/bosses.

4. every once in a while, treat yourself to an injection of amphetamines.

5. join a book club.

6. do exciting sports like kites and base jumping, boules.

7. go for a walk in the rain

8. dont stress about money so much

9. people might piss you off at time, but lifes not so bad and often they are not as bad the next time

10, drink a whole 2 ltr bottle of tizer and try not to pee for a whole hour.

11. watch a favorite film, or listen to a record with a partner

12. next time your in town and a tramp asks you for money, shake their hand or give them a hug.

13. never waste your time with people who cant take the time to say good morning

14. do something exciting everyday, like taking a shit in public or being sick inside a tesco store

15. remember to die at the end of it.

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