Now and then//1929,2009//the coming Depression, Part XII

By , August 24, 2010 8:52 pm

August 24, 2010Everything is not alrightNow and then//1929, 2009//the coming Depression. Part XII Since writing Now and then//1929, 2009//the coming Depression Part XI back in January things have only gotten worse, the lies and outright arrogant dismissal of what the American People want from our Government is appalling at best. I accept that no one President or Congress could possibly fix the economic mess we are in, certainly not in a short 18 months. What is so sad about the “fixes” coming from the Congress and President is the fact all of them have been for giant corporations, Wall Street and the labor unions, EVERY program for the middle class has not only failed but actually benefited the financial institutions. I wouldn’t feel so bad if there was some glimmer of sun light ahead of us; but, there isn’t. DO NOT, DO NOT allow anyone (of either party) tell you that everything is going to be alright. We are headed towards a full blown Depression; I have been saying this since May of 2008. There were many reasons stated throughout the series (all posted) Now and then//1929, 2009//the coming Depression.Here are some more reasons which support my thoughts that there is nothing with substance in our economic health and the Stock Market. (1) Washington is telling us that there is no inflation; actually there is ONLY the appearance that there is no inflation. For one thing, economically, the whole world is on life support-business aren’t spending(except for mergers and investment), consumers are doing with less, and unemployment will only go higher; with no spending there is no economic growth and we see what appears as deflation. Inflation is probably at about 10-12 per cent. (2) The greedy traders on Wall Street are sitting on $670 Trillion “high risk securities” called “derivatives”. If these contracts go bad, who buys them (remember-according to the Democrats in Congress and the President-there is no longer bailouts for “to big to fail”); we’ll see. (3) Without an economic recovery and some jobs the debt will soon require a Trillion dollars a year in interest. (4) America and the Dollar no longer dominate; China bought 47% of our debt in 2006, 20% in 2008 and only 5% in 2009. Last year, China bought a lot of oil from Saudi Arabia and for the first time ever Dollars were not used, same thing happened with Russia, Brazil, and India and on and on. Slowly at first, the Dollar will matter less and so will its value. How low will the Dollar be driven? If no one buys our Treasury Notes (debt), the interest on our debt is one Trillion a year, the debt is over 13 Trillion and unemployment stays at 10% (actual unemployment is 19%) or goes up the Dollar could drop 70-75%. Think about it, think about it hard; your retirement 401K of $100,000.00 would still be $100,000.00 on your statement but only purchase roughly $25,000.00 worth of goods or services. All of this could happen before the end of 2013, about a year into the Depression. (5) My grandchildren will be the first generation in over 100 years that will NOT have it better than the previous generation, what have we become? Everything we are facing today is the result of misguided and deceitful propaganda of collectivism and progressive policies of the last 24 years. In all fairness to Obama, he hasn’t done anything different that was not in place during the last 24 years, he simply has done in a short 18 months what three presidents did over 24 years and at an accelerated rate which has already destroyed our economic might and suppressed almost all individual rights. A study was done by some academics who studied 25 countries over a period of 800 years which found that EVERY TIME a nation’s debt went above 90% of GDP…the nation failed. Where is our nation’s (America) debt-to-GDP ratio today? It is above 90%. I don’t write these things carelessly, I try and choose my words with much thought and many times the truth is so ugly, so sad, so hopeless and so unbelievable that I don’t post what I wrote. Do not let anyone, not the Democrats, not the Republicans, not the President and his advisors (certainly not the Treasury or the FED), not your financial advisor, not Wall Street or anyone that is pushing the thought that everything is alright or getting better; folks, we are looking at 2017-2020 before the good times START to come back. I wrote as far back as late 2009 that the “Real Estate Bust” was far from over at a time when Obama and his people were telling us that things were picking up and that the recession was almost over, I stated then that “Commercial Real Estate” would bust and many banks would fail. Today on the news we learned that home sales fell 27% in July creating the biggest one month drop in history and the lowest we’ve been in 15 years. Is America too big to fail? Not anymore, and even if we were, who would bail us out?

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