1, when the real depression hasn't come, don't try to bargain-hunt the so-called Kangbo, save cash, of course, it must be stable or promising cash, both RMB and US dollars are good.
2. Save some cash, have any profitable jobs, earn some money, enrich cash, and give yourself and your family a decent life.
During this period, if there is no chance to earn money, don't be discouraged, don't give up on yourself and don't study. As long as it is not a world war, the depression will not last long. What you have learned will come in handy after the depression.
4. Exercise and prolong life. The greatest wealth of ordinary people is actually themselves. Health is the basis of fighting deflation, and good health is also an investment in yourself. Sima Yi's success is largely due to his health. Therefore, while creating value wealth, we should exercise ourselves well and keep a healthy life.
The consequences of deflation:
First, the total social investment will decrease. On the one hand, deflation will increase the real interest rate, and the real cost of social investment will increase, leading to a decline in investment. On the other hand, due to the decrease of expected price and expected return on investment, the investment willingness of enterprises will also decrease;
Second, reduce consumer demand. In the process of deflation, the real purchasing power of money is constantly improving due to falling prices, and people will delay payment as much as possible, leading to the delay of consumption expenditure and the reduction of consumption scale;
Third, it affects the redistribution of social income. Deflation will make the government's income transfer to enterprises and individuals, mainly by reducing income tax; Will cause enterprises to suffer losses in the price drop; Will increase the real wages of workers; It will form a redistribution of funds that is beneficial to creditors and not conducive to debtors.
Generally speaking, deflation means that people have pessimistic expectations for the future, so they reduce consumption. The reduction of consumption leads to a relative surplus of production, so enterprises begin to reduce production, reduce investment scale and lay off employees, which will lead to the reduction of total social output and GDP.
How do ordinary people deal with deflation?
First, try to make money. Because of deflation, people will delay consumption, resulting in insufficient spending power. Enterprises will lay off employees, making money will be more difficult than before, but because money is more and more valuable. So we should work hard to make money. Even if you can't earn more money than before, you must ensure that you don't lose your job.
Second, buy high-quality assets, which is called bargain-hunting. Commodity prices will get cheaper and cheaper, and even fall below their value. Many companies and individuals will go bankrupt. If you have some cash, you can copy some cheap assets, such as your house.
Third, if you don't have the ability to make money hard, you don't have much savings. Then all you can do is exercise, study more, survive the cold winter and look for opportunities.
Borrow a sentence from the game:
Winter has come, but no one cares. If you care, you win.
Winter is coming. If you are prepared, you will win.
Generally speaking, the biggest harm of deflation is the economic downturn, and people are afraid to spend money on consumption and investment. So what should ordinary people do if deflation comes?
Deflation is not terrible!
If deflation really happens and CPI becomes negative, people's thinking will change from now on.
Under inflation, no matter how high the bank deposit interest rate is, if the CPI remains high, the deposit may become negative, while under deflation, the bank deposit interest rate is low, and if the CPI is negative, the deposit will still increase in value.
In short, people think that "money is worthless" under inflation and "money is more valuable" under deflation. However, because deflation is accompanied by economic downturn, people's income may also decrease, because people will be more afraid to spend money on consumption and investment. In this case, the most important thing is to ensure the safety of existing assets, first of all, to preserve the value, rather than wanting to appreciate from the beginning.
"Frankly speaking, if deflation really comes, the economy will go down and there will be no eggs under the nest?" Therefore, in the case of deflation, investors should first choose safe value preservation in concept, which is the best way to manage money, perhaps starting a business and investing in themselves. Moreover, bank financing is relatively safe.
In the process of rising house prices in the past decade, there is a certain reason that with the rapid economic development, inflation is bound to accompany, and the rise in house prices is also the product of inflation. If ordinary people want to deal with inflation, they must first track and grasp the inflation rate. Generally speaking, the increase of consumer index can be approximated as the inflation rate, that is, CPI data.
According to the CPI data of 5438+ 10 in June, 2020, the CPI index rose by 5.4% year-on-year, which means that the price rose by 5.4% compared with last year. This indicator can be regarded as the inflation rate.
What we ordinary people have to do is to study work skills, work hard and make money. Because it has nothing to do with us, whether through austerity or inflation, it is those who are worth more than one million!
Recently, the Great Depression has become an increasingly popular social topic. It doesn't make much sense for us to worry too much about whether the Great Depression will happen or how to deal with it on a macro level.
No matter what happens, the world will eventually move forward. As ordinary people, we should pay more attention to the risks of individuals and families. What should we do if the Great Depression happens?
In the market cycle, there must be a big drop after a big rise, and there must be a big rise after a big drop. The stock market is like the sea, it always goes up and down.
So we can understand that the great depression will always pass, but it will take some time.
What we have to do is how to get through this time.
Waiting should not be in vain, as I read in some articles-"I feel that I have done nothing these two months." This is futile waiting, passive waiting, can not produce any value.
Waiting should be positive, and it should help you accumulate energy. Only in this way can you accumulate a lot of money when everything is back to normal.
If there is a great depression, you must keep your job, no matter how difficult it is. Where there is work, there is income, and where there is income, there is hope.
In the current economic situation, I think it is incorrect to say that deflation is getting worse and worse. In fact, the current social inflation has existed and continues to exist. If we say deflation, it will probably only shrink our wallets. . . Especially at present, because of the impact of the epidemic, ordinary people are more difficult in the post-epidemic era. As ordinary people, how do we deal with the current economic crisis? Give some advice.
First: don't add leverage easily. Because the economy seems to be getting more and more difficult, now all kinds of consumer loans are emerging one after another, and the interest rate is low, which makes people want to move. But be sure to remember not to add leverage easily, including credit cards, flowers, loans and so on. We must measure our spending power. It is even less desirable to add leverage to invest in projects with higher risks.
Second: allocate hard assets if you have the ability to resist risks. For example, real estate in first-tier cities or key cities is still the most risk-resistant asset at present. You can buy gold, gold ETF and so on. Appropriate, and you can also get a good return in a recession, at least to keep your assets in value. Others, such as investing in CSI 300 and taking shares in leading enterprises, are also a way to resist risks.
Third: work hard and improve your ability. This is also the most important aspect. Under the present circumstances, if you have a stable job, you can surpass most people. If this job can be improved, you are a rare talent. Loving work may be the most important thing that AIDS teaches us. Be kind to your work, and it will surely give you the same result in return. In this process, we should constantly learn and improve our personal abilities. Ability is our best asset, and it is also an asset that can bring high returns continuously. Never stop improving yourself!
For ordinary people, doing what they can do now, being down-to-earth, not arrogant and impetuous, having a house to live in, having food, being healthy and having a harmonious family can cope with all difficulties. * * * Whatever!
First of all, prepare more liquidity funds, which can be used to buy highly liquid wealth management products such as money funds and reverse repurchase of government bonds. Secondly, spend some time to improve your knowledge and ability, find two sideline jobs, and try to find three caves for cunning rabbits. Secondly, in life, don't care too much, how to live is not easy, basic consumption should be generous, and how to make money should be thought more. Finally, I think our motherland must have ways and means to cope with the current economic environment. Our motherland grew up in such an environment or even worse. These are nothing, and our motherland will become stronger and stronger. Don't worry!
For a long time, the harm of deflation is often despised by people and considered to be far less than the threat of inflation to the economy. However, the historical lessons of deflation and the grim reality of global deflation force people to realize that deflation, like inflation, will cause serious harm to economic development. Moreover, it is difficult for policy makers to prevent or reverse deflation.
1. Accelerating economic recession The economic recession caused by deflation is manifested in three aspects:
First, the sustained and general decline in prices will lead to the decline in product prices of enterprises, and the reduction or even loss of profits of enterprises will seriously hit the enthusiasm of producers and make them reduce production or even stop production. As a result, the economic growth of society has been restrained.
Second, the continuous general decline in prices will increase the real interest rate, which will benefit creditors and harm the interests of debtors. Most debtors in society are producers and investors, and the increase of debt burden will undoubtedly affect their production and investment activities, thus having a negative impact on economic growth.
Third, the decrease of enterprise profits and production enthusiasm caused by falling prices will increase the unemployment rate, the actual employment rate is lower than the full employment rate, and the actual economic growth is lower than the natural growth.
2. Causes the social wealth to shrink.
3. The negative impact of distribution has emerged.
This may lead to banking crisis. Contrary to inflation, deflation is beneficial to creditors and harmful to debtors. Deflation makes money more and more expensive, which actually increases the borrower's debt burden, makes the borrower unable to repay the loan, leads to the formation of a large number of non-performing assets of banks, and even makes banks close down and the financial system collapse. Therefore, many economists point out: "currency appreciation is the same cause of all economic problems in a country."
Diligence and thrift, wait for opportunities, accumulate talents and make timely decisions.