2012 - The Great Depression
Posted: Sunday, June 06, 2010
by e
Dhammabucha Rocksprings Meditation
August 9, 2007 was the real beginning of the great recession when the European Central Bank and the US Federal Reserve injected $90 Billion into panicked financial markets. It was all downhill from there, and I had a strange feeling long before this auspicious date that something was going down.
Please see my article dated March 23, 2007 "Beware of Bottom Liners."
Also, August 20, 2007, well before the European debt crisis: "Credit Without Cash Backing It Up Spells: D-e-p-r-e-s-s-i-o-n!"
Now, almost three years later, the strange feelings are back, but this time more serious. This time we are in for real trouble.
Without constant stimulus or credit - we stop. And when we stop, the economy dives. In my article of October 28, 2009: "WARNING: Do Not Take This as Financial Advice," I mentioned how the economy will pull out of recession, go back in, get more stimulus, and when that is used up go into deep depression.
Let's face it, the stimulus is not working -
By James R. Hagerty and Nick Timiraos:
The withdrawal of federal tax credits for home buyers led to a steeper-than-expected plunge in May home sales in much of the U.S., as the housing market struggles to wean itself from government support.
Economists and real estate analysts expected home sales to slow after the tax credit, of as much as $8,000, expired at the end of April. But early data from real estate brokers indicate that the sales decline has been far more substantial than expected, with some markets showing declines of 25% to 30%.
"Anybody who wanted to buy a house probably did" before the tax credit"
And the US is not the only country in trouble -
Euro zone faces zero growth: Roubini - Reuters:|
"The euro zone is facing a period of zero growth if not recession, and the United States is heading for financial trouble, U.S. economist Nouriel Roubini, the economist who predicted the housing meltdown, was quoted as saying on Saturday.
"There was a risk of renewed recession in Europe," Roubini said in an interview with Swiss daily Tages-Anzeiger.
"Growth will fall toward zero. Greece was just the tip of the iceberg," he said.
Roubini said there was a risk of a second financial crisis, with countries becoming insolvent and being forced out of the euro, and banks collapsing.
"Countries such as Spain and Greece were now under pressure to cut spending and raise taxes to retain access to the capital markets, even though they had no growth to speak of.
"If governments implement austerity measures too soon they risk snuffing out demand and recovery, but delays could provoke a catastrophe with high interest burdens and inflation.
"You're damned if you save and you're damned if you don't," he said."
Published June 7, 2010 By Sarah Lyall:
Stern and grim-faced in a speech in Milton Keynes, just north of London, Mr. Cameron said, "How we deal with these things will affect our economy, our society - indeed our whole way of life."
"The decisions we make will affect every single person in our country," he said. "And the effects of those decisions will stay with us for years, perhaps decades, to come."
When the tech bubble burst, instead of taking our lumps and straightening up our national priorities we operated as business as usual kicking the can down the road. Anything less would have been unamerican, I mean who would dare suggest we cut our bloated military that is doing so much good in the world? Then we did the same when the housing bubble burst; anything less than that would have been unpatriotic - nobody in America (full of grace and omnipotent wisdom) should have to cut back on anything. Or dare I say it, pay higher taxes - ever.
Well, we have wrapped the flag around our eyes twice now, and it's time to take the patriotic blinders off and face reality. We have run out of "patriotics" and unamericanisms. Now we face what is called truth. And it's not going away this time.
So here we are; financial deregulation and laissez faire policies have totally wiped out the poor and middle class while lining the pockets of the wealthy and the polluters who have no allegiance to anyone except a paid off congress and more and more profit. Damn the environment, damn the people, let them die in the streets, who cares?
Well I care, and I will speak out in behalf of the disadvantaged whose minds are becoming ever so confused by the untruths and propaganda by the ruling wealthy and the corporate dictators whose influence belies their small numbers.
We need to take back our country from these uncaring concerns. God forbid that the people ever wake up to the harm being done to the many by the few.
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Top-level comments on this article: (9 total)They've already got those bases covered Mr. Rock, they've pitted the real Americans, ask Rush Limbaugh who they are, and the unpatriotic Americans, ask Rush who they are, and in the wake of the coming calamity either through civil unrest or new laws imprisoning the unpatriotic folks, there should be just enough pittance left to calm the remaining masses into corporate subordination.And theological subordination. Not if I can help it! Thanks David.Hush about Hush Bimbaugh.
It's the French Revolution all over again... In a way, I think it just shows you can't live a lie without facing the consequences. The world going bankrupt is probably the best thing that could happen to us. Wake-up city.Well said Jennifer. The war is just beginning between social program cuts, military cuts, and increased taxes for the wealthy.
Nice article thanks for writing. It is really well written and I can say that I like your style a lot.Well thank you so much Lyuben from Bulgaria! It is very rewarding to receive comments from other countries,who can perhaps have a better overview of things than us Americans who cannot see the forest from the trees at times!Best......e
Great article Ed... Indeed I believe the depression was manipulated to fail... rumor or urban myth has it about some world wide ivory legue secret fellowship has a plan to prevent people from owning their own home...knowing so will keep the masses in slavery..There just might be some truth in that rumor..Thanks so much Craig. Interesting conspiracy theory. I know that since Reagan, middle class Americans have had to work more hours and put more people in the family to work in order to tread water economically. The GOP beginning with Reagan has stolen the middle class's homes, benefits and wages. And some still think Reagan was a hero! Gotta go figure.
I was hoping that this time, SW would give me a truly interesting article. I must say that I own a staffing firm and we are doing quite well - we actually have a client from Greece! However, this is not the case for many people in my field. I must say, what you are discussing is quite scary.I of course hope it never comes to pass, but the feeling I have is strong. We'll see. With any luck, we'll pull out of this downtrend and things will get back to normal. Hope for the best, prepare for the worst. Thanks Ken.
Yes, indeed, "God forbid that the people ever wake up." Sobering article for those concerned and brave enough to face the truth.Hi Ken, Thank you! It could happen, maybe it won't happen. I hope it doesn't. Too many people would suffer immensely.
Thanks for the insightful articleInterestingly we used to look at the 1930s and wonder how on earth did the world get to the point of 1929Now we have gone beyond that a million times overWarren Buffet never invested in "high tech" even though he was good friends with "Bill" (Gates)The reason was as Mr.Buffet put it - "I did not understand (it) , yet I understand my investment in Diary Queen. You hire a kid and he cooks hamburgers for you"In the same vein of thought what was all of these high end financial "instruments" such as derivativesIt was little more than high end gambling with a corrupt self service house taking "their piece"Add to this the housing mess with corrupt politicians such Barney Franks and Pelosi and its kerosene given to an arsonistOn top of that all announce "The buck stops here " and "Ultimately I am responsible"yet none accept any responsibility what so ever and blame everyone elseThey should all be put in jailOur jails wouldn't hold them all! Thanks terry.
Not normally a great fan of doomsday-predicting articles, I had decided to read only the first few lines of this piece before confirming my prejudice and consigning it to the rubbish-bin. That didn't happen: I ended up reading the whole article, and have now binned my prejudice instead.Economics to me seems more of a voodoo art than a science. The old saw about hearing twelve different opinions - - - from a gathering of ten economists - - - tends to make a guy more than a little sceptical about this "science". One economist predicts my Australian dollar will reach parity with the U.S.dollar within three months - - -the three months pass, and another economist is now predicting I might soon get only 70 cents for my buck!Many of us non-economists outside the U.S.A. have been pondering the ridiculous situation of Communist China financing Capitalist America's burgeoning deficits. Massive salaries for your incompetent bank CEOs, bigger bail-outs for failing car-manufacturers, partisan politics sabotaging universal healthcare - - -the ridicule list goes on.So it is majorly refreshing to read articles like this, that prove that the American people are gradually realizing how badly they are served by their various governments, of both left and right persuasion. Well done, E.Raymond Rock.Wow Lyndon, Great comment - lots of wisdom, self effacement, and letting go. “That didn't happen: I ended up reading the whole article, and have now binned my prejudice instead.”Americans are really off the wall on many things, but we keep trying and somehow muddle through! Maybe someday we’ll get it right, or at least some of it right! I agree with everything you say.
Best......e
Zero growth is like treading water. Sure, it can be done, but eventually you slip beneath the water and the undertow pulls you and you're gone. Great job, sir.Hey Michael, rumors had it that you opened u a pharmacy in Cuba. Nor true? (Good to have you back).
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