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

By , July 26, 2011 7:04 pm

 

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

26 July 2011

The Depression Is Here

I have
not written on this series since last October; I would have loved nothing more
than to be SO WRONG that everyone would laugh at me. For almost two years I
wrote about a forthcoming DEPRESSION that would make the “Great Depression” of
1929 look and feel like a mild recession. Over the last year or so this
administration and the “left-wing” “bias” Obama loving main stream media has
talked down any possibility of a second dip in our recession. {Second
Dip/Recession}? My ass; We are in the beginning of a harsh depression, our
people in Congress known it, our banking system know it and the FED not only
knows it but will take the very steps that couldn’t get us out of the
Recession.

QE3 by
any definition is nothing more than a “bail-out” and will not work any better
than any of the previous bail-outs/stimulus have. In fact the next round of
bail-outs/stimulus or FED manipulation of the interest rates, required reserve
on hand and QE3 quantitative easing will in a very short time move unemployment
levels beyond those of the “Great Depression”. You must of course accept the
possibility that our actually unemployment rate today is in reality somewhere
between 19% and 22%.

Our elected officials (both parties) know what’s
going on, the main news media knows what’s going on, our banking
firms/investment firms know what’s going on and the Federal Reserve Board (and
chairman) certainly know what’s going on. The truth is, they can’t tell you, if
they did, they wouldn’t have a job the next day.

We will soon start
hearing from Washington and the economic experts that though it was a severe
and prolonged recession, yet nowhere near the 25% unemployment rate of the “Great
Depression”. Folks, please understand that the current unemployment rate of 9.2%
is a manipulated number which eliminated about a third of actual unemployed
from the unemployment rolls. The Bureau of Labor statistics drops “marginally
attached to the workforce” and “discouraged worker”, unemployment rate now goes
up to about 10.9%.

If we
now add the “part time” work force (over 15 million) our unemployment rate is
just barely under 15%.

If the “Bureau
of Labor Statistics” provided us with an unemployment rate which used the
formula that counts “long-term unemployed” (as was done prior 1992) the actual unemployment
rate today is as I stated, somewhere between 19%-22%.

The government
defines an unemployment rate of 25% as “Depression”. I have written since the summer
of 2009 (in this series) that we (if in fact not globally) would be in a full
blown depression between October 2011 and the summer of 2012.

And if
I am right, and we are in an unemployment rate of about 22%; then I have to
believe that what “Big Ben” at the Federal Reserve Board does next will
certainly put us in unemployment of 29%-32%.

Is it
just I saying this, who am I, a nobody. I’m not an economist, I have never
worked on Wall Street, I have never represented a banking or investment firm
nor called upon to advise government officials; But, I was born before World
War II ended, A Viet Nam Vet, I was in my 30’s during the gas lines of 73/74, I
survived the hard times of Carter. But most important I served DOD for 42 years
and I learned a lot, I’ve seen and lived the height of waste, the stupidity of
non-accountability and yet at the same time the best that the world had to
offer.

No’’, it is not just I
saying all this. If you never do anything else, do this; immediately stop believing
anything coming out of Washington; or at least, stop believing it without
verification. Start verifying all statistics through TechnoMetrica Market
Intelligence and Shadow Government Statistics. One of them has the unemployment
rate at 28.6% for the second week of July.

I would be amiss if I didn’t comment of the current
on-going fiasco on the “debt limit” discussions. The whole process (both
parties and the White House) is nothing more than a cover so that one side can
blame the other side for the forthcoming Depression.

Next week-I explain my thoughts on why this
depression will be global and set things in motion for global financial
regulations and controls.

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