Get debt free, have some cash in bank, own some lucrative domain names as assets, get hold of some farmland near where you live – you will be fine!
Sam Adelton
Feb. 10, 2007

The biggest question for all investors and common people now is what will happen in the next several years. The politicians made a mess in Iraq and the financial world. Social Security and Medicare are in doldrums. Budget deficit is rapidly accelerating and will skyrocket if economy goes south. Deflation is affecting the economy. The artificial liquidity is drying up and mortgage bankers have started going belly up. Soon the economy will register official negative growth. The underemployment has started changing into unemployment. What can you do in those circumstances?

Here are some solutions. First and foremost, before it is too late, take some bold steps to get out of debt. That may need changing cars, selling homes and moving into smaller units and so on. It is not easy but those who can do it will reap benefits at the end.

Put the cash you have and save from lowering or eliminating the debt into the bank. CDs are good. Better is Government six months or one year Tbills. Sophisticated investors will use a futures broker to put the Tbill as collateral and write Eurodollar put options. As economy tanks, so will the rates in the short term.

The domain names are new cyber realty. If you buy one good one for twenty thousand dollars today, you may be able to sell the same for $200,000 after fifteen years. That time, because of deflation, the $200,000 will be equivalent of $2,000,000 of today’s money.

The domain names allow people to start a business on the Web with that name. Easy to remember business type domain names are great for this.

Last but not least, look for bargain farmland near where you live. Property tax on farmland is small. These farmlands will be very precious in five years or more. The grain prices will go ten times higher as grains are used to create ethanol, which in turn acts as the alternative fuel to crude oil derivative like gasoline. The corn price recently in the last two months has doubled. More ethanol manufacturing factories are being built now (last one year) than the last thirty years combined. Food prices will quadruple in a short time. Hyperinflation in food and energy and at the same time deflation in every thing else will dominate the economies. Even a small piece of farmland can be worth ten times in the next ten years.

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