Are You Preparing Your Business for the Coming Fiscal Cliff?

turritrans

Expert Expediter
Really? We arnt employing as many people each month as enter the work force. Homes are way underwater in most areas of the country. true small businesses still cant get money from the banks. There is more contros than ever on business, oil exploration has been sqaushed on public lands. Maybe we are in better shape but if you look under the covers it isnt a pretty sight.

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This is a big country

There is opportunity

Being in business as a company or owner op for that matter, we are more optimistic in nature. Am I happy with how things are going? Heck No!!!!

But the sky isn't falling.... Yet

I was also pointing out in my post, this situation in Europe is different then 2008 here in the states. Things are not perfect, still lots of improvements yet to be made and things to fix. But, things have seemed to have stabilized and the economy not great is there. Even in 2008-2009 business still happened, things got shipped, we still have to goto work and things still were happening in business. To me no matter how bad it gets... Not everything stops, people still worked, stuff still shipped. If more people looked at all the trucks on the roads and people going to work and not listened to the gloom and doom on the social conditioning networks (news) they would be better off IMO. The American ( North American workforce) workforce and economy is resilient, no matter what bull they throw it's way... The people goto work and still push through crap like NAFTA and the like.
 

davekc

Senior Moderator
Staff member
Fleet Owner
I really don't read any of this as gloom and doom. More of a cautionary tale then anything else.
Just a matter of a preparation and have a basic knowledge of what is really going on around you.
And you would be surprised at how many really have no clue on the latter.
There's my penny in the pond.
 

Wolverine

Seasoned Expediter
This is a big country

There is opportunity

Being in business as a company or owner op for that matter, we are more optimistic in nature. Am I happy with how things are going? Heck No!!!!

But the sky isn't falling.... Yet

I was also pointing out in my post, this situation in Europe is different then 2008 here in the states. Things are not perfect, still lots of improvements yet to be made and things to fix. But, things have seemed to have stabilized and the economy not great is there. Even in 2008-2009 business still happened, things got shipped, we still have to goto work and things still were happening in business. To me no matter how bad it gets... Not everything stops, people still worked, stuff still shipped. If more people looked at all the trucks on the roads and people going to work and not listened to the gloom and doom on the social conditioning networks (news) they would be better off IMO. The American ( North American workforce) workforce and economy is resilient, no matter what bull they throw it's way... The people goto work and still push through crap like NAFTA and the like.

All true and very optimistic, Pres. Turri.

However, it might be a little foolhardy to completely ignore the red flags popping up Phil (A Team) explains in such eloquent detail.

I've been around long enough to see many business cycles evolve, and I'm definitely not going to blunder ahead without at least considering the possible consequences of guv'mint action - or guv'mint inaction, for that matter.
 

turritrans

Expert Expediter
All true and very optimistic, Pres. Turri.

However, it might be a little foolhardy to completely ignore the red flags popping up Phil (A Team) explains in such eloquent detail.

I've been around long enough to see many business cycles evolve, and I'm definitely not going to blunder ahead without at least considering the possible consequences of guv'mint action - or guv'mint inaction, for that matter.

No doubt

You need a plan if things go sour. Still need to pay the bills. All I'm saying is this Europe thing is different. But there are still issues domestically to consider. We seem as a country to continue to forge ahead no matter the circumstances. I def did things differently to weather the storm in 08-09, we all did what we had to do.
 

EASYTRADER

Expert Expediter
Well, guys early this year I cleaned out my stock account and paid off my house. I didn't think I would be able to generate 1k a month in stock profit, (I don't like to short, and I see the resession coming also).

Having said that, my wife and I have been blessed and we have been very active in managing our cash flow. Now the house is paid off, the truck is paid off, my POV is paid. I have a stash of silver and gold, freeze dried food, rifle, pistol shotgun, We are ready for the zombies.

I think the euro is going to break up, when that happens the dollar will rally. Oil, gold and silver will drop, this will be your opportunity to get some "Barter Currency", after that, the dollar will gradually decline, untill the Federal Governemnt disolves, or the currency is reset.

The US is already worse than Europe, our actual debt is 78 trillion not what they publically claim. Try googleing, the US Total Un funded Liability, anyway, this scnario will play out over several years, you still have time to get it together but time is running out.

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pearlpro

Expert Expediter
Im not so worried about the Upcoming Mayan END OF DAYS but I am worried that our leaders have TAKEN this country to the Bank. Weve allowed Wall Street to Manufacture and sell DERIVATIVES, to anyone they could, Many countrys bought into this and are now faced with extreme debt, while those that sold the Extremely complicated financial instruments called Derivatives. Ive never believed in Easy Money, Wall Street and Stocks and Bonds never got a Penny from me. I do think that tough times could be ahead and maybe what we really need is some real tough times.

My Mother lived through the GREAT DEPRESSION, She ate apple cores, and Stone soup....a stone soaked in bacon grease and boiled to make a soup then poured over a piece of cornbread and shared by several. Maybe what this country needs is some Politicians with BALL$ who will stand and say NO YOU CANT SELL MAKE BELIEVE MONEY here....I believe the Worlds Economy is in trouble as the JP Morgans of the world will say , Oh we lost 2 BILLION DOLLARS but we have a handle on it, we were sloppy but we dont need regulations, we need less regulations....

Personally I have no debt, I am going to finance a new truck but I intend to put over half of the value of that truck down as downpayment, my home is paid for, my car is as well, I dont use Credit cards only in emergency and then only if I cant pay cash. I dont like giving the banks or Mastercard the ridiculous amounts of interest, I may charge it but its gets paid off withing a couple months.

Our country has taken some Blows, weve been kicked to our knees and done a GIANT Disservice by Political partys and Career Politicians, They dont work FOR THE PEOPLE or our Great Country, they work for the Lobbists and Corporations and ANYONE foreign or domestic who PAYS THE MAN.
We need laws that prevent the money in our political process, put an end to Lobbys, an allow or force those elected to work for AMERICA FIRST....after all look at all the Corporations that built huge Industries in America, and built even larger fortunes, and then turned there back on those very AMERICANS who worked, Lived and Bought these products. Today It hurts me to drive past the Mills and Factorys that once were the Lifeblood of America, My own dad worked for 43 years for Caterpillar, I watched that Industry grow, and the Steel Mills that provided for it, and the Machine shops and etc etc, all of them mere shells of themselves, and many say the Unions killed them etc but Its not what I believe.

GREED killed the Golden Goose, and GREED moved its factorys to China and quadrupled its profits and its STOCK MARGINS, and GREED paid the Top Level management million dollar bonuses to lay off thousands and see communities die, Homes Foreclosed, Lives ruined....while Profit ratios soared. ENRON and Cooking the Books became the new Industry and Pyramid Investment schemes and in the end GREED was good for the FEW, at least those that werent caught !!!

America needs its people to take back control of its Finances from those that seek to destroy it, or Yes the Hard times may become the NEW TIMES, I hope its not too late for those that care about America to stand and be counted, to break with tradition and partys and do whats right, to be counted. My mother said to me she hopes I never have to eat apple cores or stone soup, I take her words to heart, and I pray that we as a Country can right itself before were dragged over the edge by GREED.
 

EASYTRADER

Expert Expediter
Independant corporate greed has NOTHING to do with the problems in the US.

The fiscal crisis is the US hs been completly caused by the GOVERNMENT at all levels spending MORE money than they raise in tax revenue. It hs nothing to do with greedy corporations or any of that socialist bullcrap.

Right now 4 out of 10 people who are working, work FOR the government on some level, none of those job create wealth they all consume it. So simply put, the Governemnt system we have allowed to build up is not sustainable.

Anyway, I'm not worried about it, I'm prepared for it.

The US will collapse, things will be drastically different going foraward than they have been in the past. The only thing I can't predict is the timing. But you can't spend more money than you make, when countries do it they fall apart.
 

ATeam

Senior Member
Retired Expediter
A recent and important book on these topics is This Time is Different: Eight Centuries of Financial Folly by Carmen M. Reinhart and Kenneth Rogoff. It explains how, over and over again, empires and countries reliably and predictably walk into government defaults, banking panics, and inflationary spikes, and how, "Each time, the experts have chimed, 'this time is different'--claiming that the old rules of valuation no longer apply and that the new situation bears little similarity to past disasters."

You don't have to buy and read the book to get it's gist. Reading the synopsis and reviews here is informative in itself. Once you read it, you will see that the U.S. is following the very same path that brought down empires before it.

America is NOT different and this time is NOT different. Our nation is so bankrupt today that if we wanted to defend Taiwan from Chinese aggression, as we are obligated by treaty to do, we would have to borrow the money from China to do it. China can today destroy the U.S. economy at will by doing nothing more than putting the U.S. government bonds it holds up for sale all at once. They don't do that because they like selling sneakers at U.S. Walmart stores better, but if relations sour, China can destroy the U.S. dollar without firing a shot.

Shifting from geopolitical issues back to running a one-truck expediting business. The U.S. dollar may well strengthen in relation to foreign currencies if the Euro falls apart, but that does not mean that fuel, tire and truck prices will change significantly in our favor, nor does it mean that freight availability and rates will improve or hold steady.

We all have seen first-hand how the Great Recession affected expediting. Prepare for more of the same.
 
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EASYTRADER

Expert Expediter
Lords of Finance by Liaquat Ahmed, goes into the "Weimar" years in detail it is a very interesting book, especially for thoe interested in the depression years.

I don't think the US will have Weimar like inflation but rather I think what will happen is a "bank holiday" combined with a national bond default and a switch back to a gold based currency. When this happens those holding paper money will be screwed, honestly the best defense is pay off your house, buy a couple of guns, gt some barter currency, silver coins. And wait.

If nothing happens, at least your mortgage is paid and your grand kids will love looking at your silver coins.

The vast majority of US debt is held by US institutions, the Chinese have been exchanging their US bonds for Commodities, and building infrastructure. I don't rembr the actual numbers but the Chinese now hold a single digit of outstanding us debt.

To be honst, I'm looking forward to the colapse because he quicker it happens the quicker we can get passed it. The only danger is that a character like Hitler, or Roosevelt will come to power, we'll see.
 

moose

Veteran Expediter
EASYTRADER, i think we are on the same page, or at least the same Email list. when the California riots begins, you welcome to the Minnesota Iron Range.
I'm goonah inspect the wilderness outbounds we are buildings this coming holiday.
you like Bear meat?
 

purgoose10

Veteran Expediter
I'm ready. Debt free and a full Maxwell house coffee can burried in the yard. Burried should get some attention and of course I will be corrected, but whats good for John Wayne is good enough for me.:cool:
 

pearlpro

Expert Expediter
Its not INDEPENDENT CORPORATE GREED, Its Globalist corporate greed, and I dont consider it Socialist crap, When corporations forgo there commitments to the Country that bore the Money they earned to become what they are, Then move offshore and OFFSHORE YOUR PROFITS,so you dont have to pay taxes thats GREED, and TREASON, if everyone doesnt make some sacrifice here, some Payment or commitment and we all can just right off and find tax shelters and find loopholes...and then revenues go down and Job numbers go down, WHOSE left to FUND a Country !!! Yes they spend to much on EVERYTHING and Spending must be reigned in but then you have BLACK BUDGETS that allow spending on Military programs we dont need. Theres many places they could do better, but we the people arent making them do it, all they do is work for the Independent KOCH BROTHERS....and any other Lobby with a million bucks.... Stop giving Subsidys to Oil, Farmers, Fishing, Lumber, Cotton, Peanuts...last I looked most were doing fine, we need to slash some programs ,and its gonna hurt some...but whats really required is Govt that works for us..US THE PEOPLE not the highest bidder...
 

EASYTRADER

Expert Expediter
Lol,
Pearl that post sounds like an excerpt from a nazi rally speech.

People with money or corporations don't owe you jack ****!

You are another socialist who either does not know it or is to dishonest to admit it.

Anyway, my biggest fear is that people like pearl will be the ones who foist the Dictator on us. Its thinking like that, that has put us in this mess in the first place.

PS - I wasn't exagerating about your post, for a minute there I thought I was reading a transcript from a brown shirt rally.

PS - 2. Thou shalt not covet thy nieghbors *** (or his stock dividends), socialism fails because it violates GODs law.
 

ATeam

Senior Member
Retired Expediter
Notice that while I talked some about geopolitical developments, I brought the post back around to the individual expediter and what the developments may mean for his or her business. Posts that are pure politics without business applications to expediting belong in the soapbox forum.
 

EASYTRADER

Expert Expediter
Ateam, you act like this bussiness is so complicated people need "special" advice. There is not much more to say other than pay your truck(s) off. This isnt rockett science after all.

If things melt down again like last time, expeditors with low debt load will sail through and those with high debt loads will go belly up just like last time, for that matter like every recession\depression (I almost ended up in the poor house myself last time)

I'll bow out now so you can get some good expediting advice like,
"Don't buy truck stop coffee everyday , save that 30 dollars a month instead"

That little gem was sent out by FECC in the midst of the last meltdown.
 

moose

Veteran Expediter
need "special" advice. There is not much more to say other than pay your truck(s) off. .
well now, hold on, you just ignored an important philosophical question.
IF the $ go to the dump, and we will need more $'s to buy same product & we will get paid more $'s for our services,
won't it be cheaper to buy your debt then ?

if so, won't it be a good financial plan to spent our money now buying commodities that will keep it's values via the devaluing process ?
 

EASYTRADER

Expert Expediter
Moose,
That's true so far as it goes, but since the US is more likely to "bank holiday" deafualt, they will reset your debts by law also so you'll be in the same boat.

They did it once before actually twice before but most people were not effected by Nixon closing the gold window, which was in essence a national defualt. Old mortgages used to have a "gold" clause in them to protect the lender from inflation, Roosevelt "invalidated" the gol clause and confiscated private gold holdings in the 30's.

The best bet is to pay off your assets, especially your house. If you are going to have debt, unemcumbered debt is the best, remember they can't forclose on your signature.

Sorry I forgot I bowed out!
 

wahoofan

Expert Expediter
Good advice here from many folks, all my stuff (Mostly Junk) is paid for so i should be able to weather the economic tsunami that is sure to hit us shortly.

Definition of 'Economic Tsunami'
A term used to describe a set of economic forces that are propelled by a single triggering event and which creates significant financial distress and destruction. As with a natural tsunami, in an economic tsunami the resulting effects can be felt far and wide, across numerous geographic regions and/or industrial sectors.

Read more: Economic Tsunami Definition | Investopedia
 

moose

Veteran Expediter
I said Philosophical question. so thanks for playing along.
they can rearrange truck loans as much as they wish.
& yes they will do it over a bank holiday.(*)
but then owning a truck that'll have no good paying freight to haul, especially a small one, in a tight rates market will not do us any good.
we will need to be able to sell services or goods that are indeed in need during that time. & ever after.
that's why i like commodity's.
but a truck, a house, a business, or most realestates Ext. , can only be sold once, @ a current price tag.
with Gov.'s owning most of the world available Gold, i can bet my furry butt they will confiscate privetly owned Gold. they cannot do that to silver.
no matter what the new world monitory system will be, it will be backed by 100% gold, at least to begin with. with the Gov. needs to own all of the gold to avoid the current FIAT.
nice thing about silver, it dose not have a real currency value, it dose have a Gold value, which is currently & for a long time been heavily manipulated by Gov. to ensured it's own currency ($) survivable.
when all ends meet, gold price will sky rocket, taking Silver with it along the way, for a dabble winner. @ low risk.
so lets recap our philosophic lesson, buying your current loan at present time will 'save' you the interests value on the loan.
buying commodity's (in my case silver), will allow you to buy maybe 5 trucks for the same $ value of the remaining note on the original loan.
remember, $ don't have a real value, Gold dose.

(*) why is it spelled Holiday, it supposed to be spelled Holyday. a Holy-Day.
 
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