How can I protect myself from an economical recession/depression?

With our country's deficits and continued war spending I'm afraid the middle of 08' will bring a huge economic downturn. What can I do now to prepare? I have a 401k, and IRA and considerable savings. Should I be storing more cash than investments? Also, I came back from working in Japan last year and never exchanged my yen. I have about 10 grand worth. I was thinking of exchanging it but should I maybe hold on to it as a cash reserve as the dollar drops over the next years? What are some actions that can be taken now to lessen the hardship to follow? Serious answers please. I didn't study economics so I wonder what the academic predictions are?

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