It looks like the threat of economic collapse has gone. We are officially out of recession. Government figures show growth in the last quarter and it isn’t even near Christmas, the traditional time for all of us to dig deep into our pockets and for money to be spent a lot easier than usual. I feel a lot more comfortable that the ship of state is in good solid hands.
Or maybe not. You see the way that we decide if we are in a recession is easy. If we have two months of negative growth we are in a recession. Solid measurable facts. So we are clear that we are in a recession. The measure on when the recession is over is just as easy. Positive growth. This works out fine when governments don’t interfere and when they do we end up with double dips and in this case I’m not sure how many dips. The government want to declare the end of a recession so the gullible will get out and spend and drag us out of a recession.
The facts though show different. A month of positive growth goes nowhere near restoring the damage done during the months we spent in recession. Imagine that negative growth drove GDP down only 0.5% per month and I’m being generous here, Over the years we could easily be down 10%. A single positive growth of even 1% doesn’t bring it anywhere near back to normal but it apparently solves all our issues. Ordinarily it would but when governments interfer things are always made worse and this recession and the attempt to save the Euro has created a global recession unlike any we have seen before.
So, we may officially be out of recession but there is a lot of pain still to be felt by everyone, well maybe not everyone, but everyone you and I know so now is not the time to relax. Now is the time to intensify your prepping because others will slacken off and there will be bargains to be had. Keep an eye out for closing down sales which seem to have intensified and be careful what you buy.
It is an unfortunate fact of life that when people are suffering money is to be made. I’m not suggesting you make money but instead benefit from the items that people are selling cheaply. Look at Car Boots, Pawn Shops or their modern equivilants Cash Convertors as well as keeping your eye out for bargains in the classifieds. You are helping them by giving them cash and they are helping you by giving you an unwanted item at a batgain price.
In the meantime make sure you don’t go overboard on trinkets, make sure that everything you buy will be useful. Myself, I’m looking at buying everyone I know clothes or something useful like that. Coupled with some bargains it makes good sense.