Here we are on New Years Day, 2010. Last night we bid farewell to 2009 and I say to it "good riddance, and don't let the door hit you on the butt on the way out."
I'm optimistic about 2010, but I wasn't in love with 2009 on a number of levels. We were shocked and saddened when Grandma Hall passed away unexpectedly, and later when Gaylen was diagnosed with Cancer and succumbed to it within just a few weeks. Unemployment rose to over 10% nationwide (over 17% including discouraged job seekers and those whose unemployment benefits expired) as we experienced the aftermath of the most severe financial crisis since the 1930's. I spent much of 2009 paying the price for some pretty dumb financial decisions that I and others made in 2008 and earlier. From a financial standpoint, the last decade was arguably one of the dumbest on record. The asset bubbles that got pumped up over the last ten years or so in the housing and securities markets have threatened to tank the entire US and world economies. In late 2008 and throughout 2009, the Federal Reserve pumped trillions of dollars into the US and world markets, and we have averted a collapse, and the financial markets rebounded strongly throughout the second half of 2009. Now we'll see what will be the longer term effect of the USA having turned itself into the biggest debtor nation in the world, and being tens of trillions of dollars in debt. My personal opinion is that ultimately there are only two possible solutions to cure this totally unsustainable level of debt: inflation or default. The government will have to either inflate the currency by devaluing the dollar, or it will default on its debts. A large-scale disaster or global war could facilitate one of both of these "solutions." It's anyone's guess when either one of these things, or some combination of the two, will happen, but if they do, they will create serious hardship for Americans and millions of people around the world.
I suspect that in the coming months we may have a period of what feels like relative prosperity--the calm before the storm. I hope that everyone in the family will use whatever time we have left before the storm--whether it turns out to be weeks, months, or years, we won't know exactly how long until the opportunity has passed--to prepare. My official counsel as Dad and official family Geezer-in-Chief is to do everything possible to get out of debt and stay out of debt. Please take it from me, who have put my hand on the debt stove enough times to know better, that it burns and hurts a lot. Especially consumer debt. I hope you understand and believe that credit card companies are not your friends. They will lure you into having what you want now and when the debt piles up (and it always does when you buy on credit), the consequences will make your life miserable long after you no longer are enjoying whatever it was that you bought with borrowed money. Having a mortgage or monthly rent payment, and paying just basic living expenses is (or eventually will be) challenging enough. Don't sign up for long term slavery and distress by buying stuff with debt. Ok, that's my message for the day (or maybe the entire year if I don't start posting more often.) After all, I've got a new Wii to play with, er, I mean work out with (bought with 100% debt free dollars, thanks to your awesome Mom.)
Now I'm going to get on with the New Year with a shiny new motto--"Less dumb equals more happy" Ask me how I'm doing with that in a few weeks. Love, Dad
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