After the Election - Watch Your Back

I do not use this blog for politics, but today, I am making an exception. The elections will be over soon and no matter who you support, watch your back. No matter who wins, things will not be good. If either candidate gets control of congress and thus gets their way, you will see the deficit, the National debt, go through the roof.

Both are proposing programs that will cost unbelievable amounts of money. On problem, we are broke and deeply in debt. Yet, they are both proposing tax programs that will not come close to even balancing the budget, must less paying down the massive debts.

This makes our standing in the World economy a wee bit shaky and this will effect both the value of the dollar and the willingness of foreign governments to invest by buying our Treasury bills. Add to this the pledge both behave made to raise the minimum wage (which will just be passed on by increased prices) and the shakiness of our economy and you will, I guarantee this, see inflation and job loss. This is called stagflation and it is a nightmare.

In addition, medical costs are rising, in large part due to the incredibly stupid mess of Obamacare. How long gas prices will stay low depends on the whimsy of the Saudis. Increased oil prices drastically effect food costs as well as home heating.

Things will not be good. The solution? First, stay healthy. Even if you are insured, not only are your premiums going up, your deductibles are also rising. For example, in Arizona, you will likely have a $5000 + deductible. So, stay healthy.

If you have a job, keep it. Hold onto it like grim death. If you dislike your job, learn to like it. If you become unemployed, you will be in deep difficulty.

Most of all, pay down your debts as quickly as possible. If that means skipping a ball game or a dinner out, live with it. If that means your kids can't have the latest, most fashionable shoes, they'll get over it. Do not put Christmas on your charge cards. Again, no one likes cutting back, but you really need to get rid of your debts.

Learn to do as much as you can around your home. A lot of repairs are simple. It is easy to cook instead of depending on take out and cooking yourself is cheaper than buying frozen dinners. Do it yourself, within reason, should be your motto.

Eventually, things will perk up again, but you have to be sensible. Watch your back. Watch the backs of friends and family. You have to, because, Uncle Sam is not going to be your buddy for a while.