The level of fear out there has been rising these past few weeks, a reasonable response to what has being going on around the globe and up close in your city or town too. It's not easy to escape all the negativity when it is broadcast from all directions over and over again and leaders who one might expect to lead are actually on the fear mongering bandwagon too, trying to win re-election.
I'm going to offer some different perspectives that might help ease the fear you are feeling and the odd solution or two to bring some more ease or at least a plan to get you on a path to feeling better and have some hope.
A lot of the events are interconnected, in the USA we have a congress and a white house that have proved to lack leadership ability and an interest in doing what's best for the country. That led to a downgrade in the country credit rating, which in part led to stock market turmoil and businesses lacking the confidence to expand and create jobs, which leaves us with too many people unemployed and therefore unable to pay their mortgages, which has kept the housing market in the doldrums. A combination of high youth unemployment and the rising gap between the rich and poor has led in part to riots and protests throughout the world. England has received the bulk of the headlines, there is much more being under reported elsewhere (Israel, Chile and even parts of the USA, PA and WI).
Politically I doubt much will change before the main election in November 2012, (you can expect threats of a US government shutdown to peak at the end of September as a budget hasn't been passed in over 2 years now) the choice is then to engage or not engage or have your feet in both camps. I will just say this if people keep voting the same cast of characters of either party, back in office and expect change, then, well, I have a bridge to sell you. The next election cycle will be the most contentious ever seen, the ads have already started, my advice would be to tune it out until November 1st 2012 and see who is still left standing and make your choice.
If you want to engage in it, then come up with a plan so that what is important to you reaches who you want to vote for, or what you want to vote for. Use social media, fax, attend the meetings that your representative has and asked very pointed questions, such as can you tell me what is in the bill you voted for, did you read all of it, how much does it spend and raise etc. Are you willing to pledge to protect the interests of the country over party.
Be clear about what you are doing, the key is moving away from your current position of fear.
Financially, yes the USA has been downgraded for the first time, keep in mind the source of this, a rating agency with a bad track record, they were among the rating agencies that highly rated all those mortgages back during the last housing boom and we know how that turned out. That aside, the downgrade is a reality, however did you know that Canada was downgraded in 1992, they cut expenses and debt and raised taxes and in 2002 were upgraded again. It doesn't mean it is permanent and some good can come out of it, though it seems, based on the initial response, it will take more than this to prompt change.
The fear put out there is that interest rates will rise, well regardless of the downgrade, rates were always going to increase, the have been very low for years and in time will go up. On the other hand, oil prices have dropped and you should notice 20-40 cents a gallon drop in gas prices in short order. Over time as deflation comes back a lot of prices that increased over the past year will slowly drop again, so you will see some benefit from that.
Look for more areas to cut spending, refinance what ever debt you have, house, car and credit card debt, can to lower payments and if you are under water with your mortgage, speak with an attorney about walking away, do what is best for you.
Job wise, some parts of the country are a challenge, yet others aren't, consider relocating if you think it will help and you can. Doing some volunteer work in the field you are interested in, can bring you contacts and it keeps you in a work mode with some hope. Unconventional things get you noticed and with so many looking for a job, getting noticed often gives you the edge.
Things will get better, if you can imagine in the middle time period of the two world wars or the depression, what it felt like, for many then, it was hopeless and despair. Who then would have imagined then that it would be all over in a couple of years and things would be better. Not many as it's difficult to imagine it being so good, when it feels so bad as it did then during those events.
As those wars and the depression ended it did get better and people then had hope, they could see change, they could believe it and they could move forward more easily. I'm asking you to see and believe and imagine, your life and the current situation being better in 2013 or 2104. It may be hard to begin with, perhaps you have a relative who was alive back during those events and you can ask them what it was like when it ended and what it felt like in the middle of it, did they ever think it be this good after being that bad.
For example I see a time in a couple of years, where the global economy is just starting the biggest economic boom the world has ever seen. You see in the past when we have come through economic challenges like this, countries such as China, India, Brazil for example had a much lower economy than the rest of the world, when this is over they will be starting from a much higher level than ever before as will many other countries.
I see the political system much changed too, with greater transparency on who is doing what and who the money is going to and where it is coming from. I see that people will have more freedoms than ever before and will be happier as a result.
It might be difficult for you to imagine that, just like it was difficult during the middle of world war 2 that would would be landing on the moon 25 years later. Or that during the depression we would have billionaires in China or even the USA, yet that is what happened.
What are you imagining the future will be like? Is there a future or will it always be like it is now? Are the odds pretty good that this will end and good times will be back? Are we destined to live in fear, outrage and unhappiness?
