There is plenty to be nervous about

I would not say that I am afraid, for I am not; but I will readily admit that the incredible things happening with the weather and economy make me very nervous.  There is a huge difference between being afraid and being nervous.  One is counterproductive and the other is the natural reaction to uneasy situations.

Just four years ago I would have been working 20 hours per day finding relief supplies for tornado victims in the St. Louis area and flooding victims in southern Missouri.  I know my days of trying to “save the world” after every disaster ended some time ago, but I am still deeply impacted as I see images of destruction and hear reports of catastrophic flooding soon to cause untold problems in many areas.  Throw into the mix some of the worst wildfires Texas has ever seen and you have a truly troubling situation building.

I study weather and I have seen from multiple sources that the upcoming month of May will be MUCH COOLER than normal throughout much of the USA except along the Gulf coast.  The last two times this happened were 2005 and 2008 which were years that produced hurricanes Katrina, Rita, Wilma; and 2008 which produced hurricanes Gustov and Ike.  Many experts are already warning of the imminent possibility of multiple strikes by huge hurricanes along the United States coastline this summer.

For a very long time I used to study and try to understand economic concerns.  What is currently happening is so distressing that I no longer have the desire to try and figure out what is happening and about to happen.  Contrary to what media outlets are saying, there is a period of hyper-inflation just around the next bend.  We are already seeing it in the constantly rising prices for gasoline and food.

It is estimated that nearly 15% of all Americans have had to raid their retirement accounts to find resources for emergencies.  I know this is true for I am one of those 15% and am not proud of it.  But, when all other sources of income are removed, and expenses pile up; there is no place left to go but to the IRA or 401k that was supposed to provide income for 25 years or more after retirement.

Recent studies have indicated that the housing market for super expensive properties is rebounding and doing fine.  Those with plenty of money are spending it on lavish homes that cost well over a million dollars.  Those homes in foreclosure are also being purchased by people with money and then rented out to desperate people who have lost their homes.

Meanwhile those homes in the $100,000 to $600,000 range just sit there.  No one qualifies for a loan and no one has the money to pay the huge down payment to move up or down.  Most of us live in these kinds of homes and are stuck in them for many years to come.

I cannot do nothing about the weather or the economy so all I can do is pray for wisdom for those deeply impacted by both.  May God grant us all great patience and understanding so as to make the right decisions and have the means to help our neighbor, brother, parent or child in need.

Dealing with the the terror and fear of failure

Fear has a way of gripping, seizing and otherwise stopping people in their tracks. Fear of failure has to be the greatest of all fears next to the biggest one—fear of death. When the fear of losing all one has worked for to obtain confronts a person, the instinctive reaction is first panic and then irrational actions. Both of these reactions generate negative results which compound the problem.

Fear is like a disease which creeps into the mind and slowly but surely takes over thought patterns and influences the decision making process. Fear is irrational and thus the decisions made out of fear are irrational. Fear is counterproductive and thus when allowed to influence our thinking it generates results which only serve to foster more fear.

The purpose of a terrorist attack is to generate fear and panic more than anything else. The immediate destruction is important, but the long term fear is the main objective. Terror is not a nice word, and to terrorize is one of the ugliest words in the English language. Nothing harms people more than to live in a state of terror for in that state there is no freedom but only bondage.

Fear and terror are the cruelest of all slave masters and they rule with an iron fist. When a person, community or nation is ruled by a tyrant utilizing fear tactics, the resulting submission is obtained at the cost of individual initiative and personal liberty. Living under the cloak of fear produces nothing but bondage and a timid lifestyle void of any risks and joy.

The greatest realm of fear currently is of course finances. With the ongoing, and seemingly never ending onslaught of negative news regarding everything from the Stock Market to house foreclosures to job losses, etc there has settled over the world a growing fear that things will never be as they were during the years of prosperity fueled by unbridled greed. As the reality of horrible mistakes made years ago catches up with the current situation, things just keep getting worse due to the enormous deceit and evil practiced by so many for so long.

Times are tough and getting tougher by the day for millions of people. The numbers of us who have to deal with the gnawing fear that within a few months there will not be enough money to even pay the mortgage, let alone all the other bills, is growing daily. Those who have lost 50% or more of their net worth and have gone from equity positions to being “upside down” in their homes are the ones most at risk of yielding to fear.

Somehow there is a way out of the wilderness and that way can be found if fear is kept at bay and sound practices of financial stewardship are practiced. As is evidenced by the current flood of negative earnings reports by major corporations, Americans have been cutting back on purchases which is the only sound and logical thing to do in times such as these. But, in so doing this, the ripples spread throughout the whole economy as one sector after another suffers a downturn in business. It is, indeed, a vicious cycle.

Whether all the bailouts and stimulus packages which have come and are coming will really do much to stimulate the economy, promote job growth and halt the foreclosure crisis is open for debate and won’t be known for months or years. What is a known reality is that if fear is allowed to take hold and dictate decision making whether in Washington or everyone’s kitchen table; the results will be opposite to what everyone desires and the problems will compound.

In these troubling times, it behooves the wise person to first be patient and secondly be prudent. Now is not the time for outlandish and risky moves. If ever there was a time to dig in and hang on, it is now. Budget your resources as best you can with the mortgage being most important followed by utilities and other living expenses. The vultures circling who lured us into getting their credit cards will just have to live off the scraps for awhile. The tactics being employed by the major banks by cutting credit lines and raising interest rates for even good customers is deplorable and I pray it backfires on them.

Normally I would never advocate paying the minimum per month on a credit card bill, but if it comes down to paying more or losing your house; it is a no brainer. In due time all this will work out one way or the other and we all will either be living in tents somewhere or the ship will right itself and the good times will come again. Until then, the main thing is to stay calm and not panic. Refuse to act out of fear and of course trust in the Lord for guidance, provision and wisdom. That is all any of us can do.

A cold December wind is coming both literally and economically

There is a cold wind howling getting ready to sweep across this nation. Unsuspecting multitudes will suddenly find themselves without shelter and directly in the vortex of the approaching storm. Few will believe it is for real, and fewer still will have a clue what to do. Confusion breeds despair and despair breeds disillusionment.

The next six weeks leading up to Christmas will make or break countless retailers across this country. Depending on how bad the upcoming shopping season ends up being, there will either be many companies filing for bankruptcy come January, or there will be MANY companies filing for bankruptcy. Either way, what is coming will have a huge bearing on the ability of this nation to continue to buy and sell for months.

My most trusted weather sources tell me with full assurance and confidence that the majority of the next six weeks are going to be very cold, if not bitterly cold over the entire eastern part of the country. This presents two major challenges. First is the obvious problems that will ensue if snow and ice are added into the cold weather. This keeps people from driving to stores to do their shopping. December’s with brutally bad weather have had devastating effects of retailer’s bottom lines in good years. It could financially ruin countless retailers this year.

The second problem deals with heating bills. The colder the start to the winter, the more people will be forced to plan for sky high energy bills come January and February. If money has to be allocated to pay for heating bills, that is money normally spent on presents for uncle Bill and aunt Jane for Christmas. Putting these two situations together there lies the potential for a major cut back in spending the next six weeks.

While the ever deepening economic crisis still doesn’t have a direct impact on everyone yet, the longer it drags on and the deeper it gets; in due time everyone will feel its pinch. As the situation gets worse, horrible decisions will have to be made by families and by businesses as they determine where to cut expenses in order to starve off bankruptcy. Employers cut jobs and families cut all unnecessary things in order to have enough to pay the bills.

In our little town there is an outlet mall which was built about ten years ago. There are about 50 spaces for stores in the complex. Every year the stores renew their lease in January for the next year. Thus, if a store is closing, it does so in January. Three years ago, there were perhaps 5 empty storefronts in the whole mall. Two years ago, there were about 6 stores which closed in January. Last year, the rates of closing accelerated and there easily was 15 stores which ceased operation in January, including one of the anchors.

This past year, the mall has operated at less than 50% capacity. Rumor has it that another 10 stores will close in January of 2009. If this happens, there will only be about 15 stores trying to stay in business. This exact thing has happened in many smaller outlet malls around the country the past few years. Once the bus leaves the station, it is very hard to catch a ride.

There is a huge combination outlet/regular mall in the northern suburbs of St. Louis which was only opened about 5 years ago and was fully occupied just two years ago. The last time I went there a few months ago, there are entire wings which have no occupying stores. I would guess the occupancy rate at the current time to be no more than 50% for the entire complex.

Retail stores and restaurants are hard businesses to prosper in. They are the first ones to feel every economic downturn and they are the ones hurting the most right now. As people continue to cut back everywhere they can, they have to say goodbye the weekly night at the restaurant and the constant trips to buy things at the stores. Times are getting tough and only going to get tougher.

Just a little word of warning here; now is the time to prepare for what is coming in January through March. Those three months could be very difficult ones to endure as the economy bottoms out and the various new stimulus plans take awhile to get in place and moving. As counterproductive as it sounds; this is not the season to make your friendly neighborhood retailers too happy. Make sure you save something to get yourself through the upcoming difficult winter months before the thaw next spring.

2008 Election mirrors 1932; Same result, Democratic Domination for generations

If there is still a United States of America as we know it in 2010, the Republicans claim there will be the biggest switching of power in the House and Senate ever recorded. As appealing as this sounds to those on the right, I seriously doubt such a thing will ever happen.

Once “Obama Nation” takes over in January, he and his friends will ram one socialistic measure after another through the Democratic Congress. In the first 100 days this country will turn into a country Sweden will be proud to call a partner. Shortly after that, the Russians and Chinese will be rejoicing with their new partners; the USSA.

Meanwhile new “fairness” rules will muzzle the right wing broadcasters and bloggers. Equal time will have to be provided for someone from the left to rebut the propaganda spewed forth from agenda driven maniacs like Limbaugh or Hannity. Even the right leaning preachers will be forced to tone down their message or risk losing their tax exempt status.

Since the media already belongs to the left, all that will be needed is to shut down the renegade Fox news channel and any voice of opposition will be neutralized. A few old time right wingers will make the rounds just for the sake of fairness, but the “real news” will delivered by dyed in the wool left wingers.

With the voice of the opposition stifled, I don’t know if the resistance movement will have a chance to organize. Anyone naïve enough to think the left will give up power without a fight doesn’t know who they are dealing with. Having fought very hard to regain power in 1992, the left thought they could change America the first 100 days of the Clinton administration. They were wrong because America was not in a bad enough recession to willingly throw away its freedom.

Due to the recession/depression currently afflicting the nation, there has surfaced the desire for “change” at any cost. This growing mood has not only moved Sen. Obama into a strong lead, but is opening the doors to massive changes come January (if not before). The current proposal being floated by Rep. Pelosi of yet another 300 dollar economic stimulus package is just the tip of the iceberg.

If enough programs and packages can be put in place soon enough, there will be ample need for taxes to be raised which is inevitable due to the massive amounts of spending being proposed and done. Higher taxes, more governmental programs and more people behooved to the government for their daily bread. Sounds like a recipe for long term left power just as was accomplished the last time the country went into a recession/depression.

Odds are that as much as the right wing says they will take back Congress in 2010, they may end up in such a minority they will never take it back. If the left can succeed in getting the overwhelming majority of Americans on the government dole, then they will have succeeded in assuring themselves a majority in Congress and the White House for generations to come.

Except for two terms of the “Republican” Eisenhower in the 1950’s, and “Ike” was no more a Republican than Hillary Clinton is; this country had a Democratic President and Congress from 1933 until Nixon in 1969. Even with the election of Nixon/Ford between 1969 and 1976, the Congress stayed Democratic through the Carter Administration. The House of Representatives has been in Democratic hands from 1933 until the present except for the years of 1995-2007.

The point is that the policies of the “New Deal” placed millions of Americans at the mercy of their government. The government fed them, gave them work and protected what assets they had left. As dutiful servants, the people in turn gave the government their votes to keep them in power. Could it be that the events that have taken place the past few months will yield the same end result? I would say they already have and will for the duration of the history of this Republic.