There has been a great deal of talk recently about a coming 'depression' as a result of the credit crunch, high commodity prices, high consumer debt and a great deal of speculative behaviour on financial and real estate markets.

My response is a resounding...."so what?"

Periodically throughout history these sorts of things occur, it only lasts a reasonably short time and...to perhaps put it flippantly, 'it all comes out in the wash'.

For most people life will continue as normal, perhaps with a spot of unemployment or bankruptcy for many, and, gosh, these things happen; and only the unskilled working class will be actually walloped by a depression (and they view the future negatively anyway, so will hardly be surprised).

The best part about a depression will be a wakeup call for the 'presumptious' elements in the World and a burning of fingers is a splendid way to remind some people that some doors are marked 'No Entry' ..and yes, that means you ;)

For those worried about a coming depression the best thing to do...(and I have been saying this for some months)...is to move out of 'assets' and into 'cash'; and therefore every chap should sell everything which is not nailed down and pop the money in the bank or (preferably) your safe deposit box.

Yes, yes, I understand you just thought about those mortgaged rental properties or shares or bonds and think it does not apply to you...but I say again, sell every asset and move into cash (I am unsure how to explain that more clearly, and do not say you have not been warned if everything does go tits up) because 'cash is king' during economic depressions.

People who have 'cash' will ride out the storm best. These chaps will be able to more or less name their price for consumer goods, various 'services', holidays, motorised vehicles, pay rates for employees and a myriad of other purchases; and this is hardly a bad thing and should enable such chaps to find the depression a comfortable walk in the park.

With any luck a depression will put an end to the irresponsible policies of Governments around the World; the budget deficits, expansion of M3 money supply, welfare payments, subsidies and all the other madness these chaps seem to engage in.

Hopefully massive spending cuts will result...temporarily making the depression even worse (and remember, this is actually a positive thing)..but in the long run will lead to a fundamental change in the role of government and its limitations.

There are a few things to keep in mind about depressions; all rather tiresome but they are bound to happen again...expect a dramatic increase in the number of door to door salesmen annoying you; expect a lot of talk about how it is all the fault of 'the Rich' (oh yes, rampaging hoardes of rich people kidnapped you, drugged you and forced you to take out that loan or house mortgage you dishonourably did not pay therefore ending up in your current predicament); expect Governments to (at least initially) to undertake various measures to hold back to tide (hence my advice to keep the cash in a safe deposit box); vast numbers of ignorant poor people will be even poorer and there will be resulting handwringing and collectivist talk about the need to help them (yeah, right); everyone will ignore their own behaviour during the last five years or so and instead claim everything is [your] fault.

As I say, all rather a bore and such things are best either ignored or sneered at....but the most important thing about a depression is to remember it only lasts a couple of years and all comes out in the wash.