First off we are experiencing over 20% real unemployment and underemployment. There’s no recovery on sight. Bottom line if employment is not improving we are not recovering don’t buy the myth about a jobless recovery that is a lie. 2019 is going to be worse than 2009 but there are things you can do to prepare your family for inflation and an economic depression that is close to already being here. On inflation just to back up my thesis Oil is climbing once again it is nearing $100 dollars a barrel and gas in Nebraska where I live is over 3.00 again. Also Sugar has reached a 30 year high too ( Raw Sugar Jumps to 30-Year High ) along with world food prices being higher than 2008 levels that sparked food riots ( World Food Prices Jump to Record ).

1. First order of business is to take a portion of your savings out of the bank and just have as cash on hand at your home or near your home in safe of some sort. This is to prepare for any kind of forced banking holiday similar to the depression where FDR implemented this strategy for some time to give relief to the banks. If this happens today and you can’t pull money out of the bank then you better have some cash on hand. Also there could be bank runs too and it might take a few days for the FED to bring enough cash to cover it. This will allow you to still buy food and necessities if the banks are closed and your cards don’t work either. Just remember always a good idea to have some money in your direct control after all it is your money.

2. Water is very pivotal in an emergency or disaster situation much more important than food. Be sure to have at least enough water to last a week. I would consider at least 1 gallon a day per person. You could buy big jugs of water or just buy a gallon at a time which might be better for later.

3. Stock up your cupboards with extra food. A good way to do this is to just buy double of the non-perishable cans/dry goods that you would normally at the store and store those items for later. I try to buy extra of the deal items and store them. A few things to have for sure would be beans, rice, dehydrated milk, oatmeal, sugar, salt, seasonings, pasta, sauce, canned fruit and vegetables. That is just a start there are many other items to consider. Make sure to have enough to last at least a month to start will want to get more than that over time. This could be one of the best investments you make is buying food now because prices are set to rise this year and possibly dramatically. Inflation in the coming year will make this look like a brilliant move.

4. Consider putting some of your dollar savings into real money with real stability and purchasing power. I recommend silver over gold. Silver is a great value right now at under 30/oz so anybody can afford to some silver. Make sure to buy physical silver don’t buy silver stored in some bank vault somewhere that you don’t have access to. I like coins over bars better value for your money. American silver eagles are great because they are .999 pure silver and 1 oz exactly. You will pay a premium over spot on these but they are worth it. Also good to have some junk silver which is 90% silver coinage the United States had in circulation back in the day. The best ones of these are Mercury Dimes, Barber Dimes and Morgan Dollars. Silver will help you maintain your purchasing power in the face of the ensuing inflationary depression we will soon face.

5. Put your IRA or 401K money into Precious Metals Funds or stocks if possible. This could help you have a great a return on your retirement in 2011.

6. Pay off your debt. Although there is really not an incentive to do this right now with these low enforced interest rates we have it is still a good idea. Debt is financial slavery. If you owe money to a bank and they come on hard times do you think they might push you to pay that off??? It is possible. Come up with a plan to pay it down, earn some extra cash, start with your credit cards first, then vehicle loans, medical bills, and lastly student loans and mortgages. Not only will paying these off help you financially to be more flexible and liquid and able to handle inflation better because of increased discretionary money but you will feel better too.

7. Buy some non food items that will be useful. Toilet paper what’s worse than to run out of TP? Also have some light anywhere matches, candles, and a kerosene lamp handy in case the power goes out. Other useful items would be a water filter, camp stove, emergency crank radio, and some duck tape. Also should stockpile shampoos, soaps, and detergents too. In a depression scenario you want to have many simple things that could do a lot for you.

8. If you done everything above and still have money left then consider allocating some money into gold and silver mining stocks. I like EXK, SVM, SLW, GRS, as a good place to start look but do your own research and due diligence.

This year could be chaotic and scary but remember to keep the faith. Try to prepare for the unexpected and you will feel a lot better when it does happen.