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[quote=Anonymous][quote=Anonymous]Another economist here, though I’m the wrong  ‘type’ of economist in that I work in the food & ag sector.

1. I would not pay off a mortgage, assuming a fixed rate. If things get moderately bad, having the cash is useful.  If things get crazy, and millions lose jobs/can’t make mortgage- well, the bank really doesn’t want your house.  It’s an illiquid asset that then has to be maintained. I’d roll the dice that something can be worked out.

2. I would watch for the following as signals to really freak out: a)banks start buying and speculating in a significant way in crypto (derivatives), b)Congress allows them to do something insane like hold bank reserves in crypto.  That is when I’ll be moving a good chunk my savings directly to a Swiss or maybe a British bank.

3. Can’t go wrong with some standard financial advice: working on lowering living expenses and having up to a year cash in liquid accounts. Pay down any variable rate debt ASAP- like credit cards.

4. Inflation- tough one. If inflation get s really bad, holding a lot of cash in USD means you watch your purchasing power erode- though interest rates at said banks would rise (presumably) .  If there are big purchases anticipated in the coming year, maybe move those up if you can.

We got a lot of household items in bulk at Costco-not everyone has the spare cash to do this, or the space to store it. I’d say we have about a years supply of a lot of basics we use:toothpaste, laundry detergent, preferred shampoo (non perishables) etc.  If the clowns don’t crash the economy, it’s all stuff we’ll use anyhow.  If they do, it will cushion but not eliminate the blow to our wallet.  *we did this over time, id still prioritize high interest debt and emergency funds over buying extra socks.

[/quote]

NP I'm actually very interested in your takes as an ag economist. What good product will be the hardest hit do you think? I'm very worried about crop failures and the price of meat.

My mom was an economist, I appreciate what you do (even if no one wants to listen to you). [/quote]

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