Now and then//1929, 2009//the coming Depression. Part VIII

By , October 20, 2009 6:10 pm

Now and then//1929, 2009//the coming Depression. Part VIIIEven during the Great Depression the world turned to the United States for guidance and some answers to the financial woes of those times. For over 95 years the “Dollar” has been the dominant currency in the world and even to this day “oil” trades in dollar prices. Folks, that is fast coming to an end; there are forces at work from Russia, China, international financial experts and the (oil) Arab Gulf States to ditch the dollar as the recognized reserves currency. I stated in my last post the Dollar would collapse and that I believed it would be sooner than what we would want. Let me try and put some time frame on that statement. First I believe that the Euro and English Pound will totally fall before the dollar does and further believe that this will happen over the next 120 days. The dollar, though in a weakened state, will survive for a while due to the large amount of debt held by other nations. One thing remains very clear; America is no longer the leader of the Free World or the expressed definition of “Capitalism”. Why is this? For starters we have made the mistake of thinking that all other nations would blindly follow without questioning, and here is what the world sees and questions: an official national debt of $11.8 Trillion (this figure grew to $12 Trillion during the last three weeks), unfunded national obligations of $104 Trillion, an estimated (low figure) $9 Trillion in cumulative deficits over the next ten years and a very strong possibility of over $1 Trillion for “Health Care Reform”. All this adds up about $125, 8 Trillion; and we haven’t even considered the energy bill. If we were to assume that effective today there would be no new government spending, no new social programs, no new wars, no new disasters of nature, an immediate end to the current recession, no unforeseen economic disasters and the unemployment numbers dropped to below 5%; and the government was able to pay off the debt at one Billion dollars per day it would take the government 345 years to pay off the debt. Of course many of us know that the government will simply allow the dollar to be devalued so the debt may be paid in cheaper dollars. But the devalued dollar also affects our personal finances. For all of you hard core liberals that had that warm feeling running down your leg when Obama spoke consider this: since the democrats took control of Congress in 2006 the deficit has exploded an unbelievable 770 per cent and Reid/Pelosi/Obama are still looking for ways to spend more, that October had the lowest job openings since the year 2000, that from the day Reid/Pelosi took control of Congress the unemployment rate went up each month and since Obama took the White House unemployment went from 7.2% (Dec-2008) to 9.8% (Sept-2009), the 9.8% by the way is more than doubled what Bush has prior to the liberals control of Congress. Let me close by saying what I have been saying since part I of this series; we are entering a severe depression. I am saying this at a time when the Stock Market has held on to 10,000 for almost one week (and a seven month rally); but consider this: the Stock Market first reached the 10,000 in March 1999, WOW-some progress-back to where it was ten years ago. If you consider that the dollar has lost value (and falling) of almost 25% then we would have to accept the 10,000 as 750. The reality of the day is that the leadership of Reid/Pelosi/Obama is only giving us eternal debt, increased government spending (stimulus) and widening the “cultural of corruption” to the highest level this nation has ever seen. 

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