8 year recessionary slump will soon hit Aus. Can you go the distance?

No amount of political lipstick on our economic pig will halt the cycle of boom and bust, and we are heading into 7 or 8 years of recession in Australia. After 25 years of good times, many people will be unfamiliar with the pain of an extended recession. It will not be pretty.

Can you survive several years with declining incomes and the anxiety of increasingly tenuous employment prospects?

Will we also see several years of stagnant metals prices? If so, it could be very testing times for stackers. Strong hands will have to be very strong indeed.

What is certain is that, when we finally emerge from the downturn, the world will be a very different place. China will be the world's largest economy. The population will be larger. Consumer technology will have progressed in ways very likely can't currently imagine.

 

I've been calling at least a 5 year flat period (at best) for Sydney housing for some time now, and many people will be shocked that property does not go up every year
On one hand I'm looking forward to a big and long recession, because people need to be taught a lesson that continuous growth (in anything) forever is not practical.
On the other hand it's never great to see, but likely won't personally affect me much, if at all.
So bring it on.

 

If a long recession occurs, does that mean PM prices will have to stagnate for all that time?

 

I've seen quite a few recessions and the saying that it's a recession when you're neighbours out of work and its a depression when you're out of work is very true.

The number of youngsters who've never known the fickle finger of financial terror is very scary, having seen what the prevailing mood has been in previous times.

Maybe 'OMG. Cold Latte. Worst Day Ever' will be soon be the 'good old days' for them.

 

Yes.

Being poor and vulnerable isn't the main problem though. You do what you need to do to get by and figure out how to improve your situation as you go along (been there, done that). The tricky part is coming to terms with the fact that your situation has changed and you need to do things differently. For a lot of people that takes a long time to sink in and the longer they remain in denial, the worse off they end up being when they finally realize they need to start adapting to their new reality.

 

Slow and steady.

Make your own life goals not someone elses. Sleeping on a bed in a mansion or under canvas achieves the same outcome except that canvas can be rolled-up.

 

Ye I reckon this time the Oz recession is going to be long and arduous.

2016 will be a massive wake up call for those that are uninformed and in huge amounts of debt.

Wont be pretty thats for sure.

 

become non-resident
establish a home in a country that values it's residents
setup location independent business with clients in multiple countries and industries
save and earn in different currencies

Keep in mind this not only a recession, it is an opportunity.

 

I think, fortunately, the people here at least are better informed and prepared than the vast majority of the population. At least we debate potential scenarios and are exposed to a lot of relevant information so we're not sleepwalking into it even if we think everything will be rosy. But, as you said, for many people it will take a long time to sink in (unless that is, they suddenly lose their job, can't pay the mortgage, lose their home and/or investment property, start having fights at home, etc). It won't be pretty.

 

Wise words.

 

I think it's a great time to sell my business, quit second job, sell vehicles, sell house and go travel for 5 years or so around oz and overseas. It just feels so wrong giving up two income streams though. As said above.. Crisis mixed with opportunity!

Obligation and debt free.. Vagabonding sounds good to me.

 

Sound's nice . But there's that old idiom: Make hay while the sun shines.

 

How much hay does one need? We can always earn another dollar but we can never get the time back... Deep recession means plenty of competition for your dollar so travel should be cheap.. I'm seeing return air fares to the us under $900, Vietnam return under $400 just as a couple examples, and of course very low fuel prices domestically with the glut of oversupply and the demand shrinking.

 

I am a bit stuck on this step, nowhere comes to mind...

 

Could happen if there is a steady economic decline. But if something dramatic occurs then, after an initial price collapse when people are selling everything to cover debts, there could be a rush to the safe haven of gold and silver. Too many unknowns to give an accurate prediction I think.

 

Uraguay??

 

Could soon hit... from where I'm looking...it's already here!

 

The real petulant panic will set in when they discover they can't afford the data plan for the latest iPhone and can't check FaceBook every 5 minutes.

 

Where would that be?

 

Vatican City is the only state that values all it's residents, even the naughty ones