Average People Fear Economic Depression

Not a recession or downturn, but the big 'D.'

It's all over the place, spoken of casually and frequently, and I've never seen the anxiety level this high - not even in the immediate aftermath of 9/11.

If nothing else, look for (IMO) continued and increasing belt tightening by a scared populace.

Here is an example of the level of anxiety (anecdotal, but real) regarding fear of another 'D'epression:


Theres a saying regarding this matter: A recession is when your neighbor is out of their job, a depression is when you are out of yours.

Before I get into it here is a quote to help your answer:
Martin Hennecke, of the Tyche Group says: “What investors need to understand, it’s not just about subprime and mortgages it’s really a big crisis of debt on all levels, even government debt hitting the West now and that’s very significant. In our view, it’s just getting started and it will really develop into a very, very severe recession maybe a real depression of the style we saw in 1929.”

Since 1913 the government has been creating paper money out of thin air. . Our dollar is not backed by gold, it has no value. Inflation as we are seeing is the destruction of value. It is the governments program of increasing the supply of money, which devalues the currency and causes the prices to go up. An example is Germany during the 20th century, the runaway inflation came and the middle class was wiped out.

The people are realizing our money is being made out of thin air. We permitted the politicians along with the central bankers to create unlimited money. The notion of a central bank is unconstitutional. Our founding fathers warned us against this. The Founders of this country, and a large majority of the American people up until the 1930s, disdained paper money, respected commodity money, and disapproved of a central bank’s monopoly control of money creation and interest rates. Ironically, it was the abuse of the gold standard, the Fed’s credit-creating habits of the 1920s, and its subsequent mischief in the 1930s, that not only gave us the Great Depression, but also prolonged it. Yet sound money was blamed for all the suffering. That’s why people hardly objected when Roosevelt and his statist friends confiscated gold and radically debased the currency, ushering in the age of worldwide fiat currencies with which the international economy struggles today.

James Madison warned of “The pestilent effects of paper money,” as the Founders had vivid memories of the destructiveness of the Continental dollar. George Mason of Virginia said that he had a “Mortal hatred to paper money.” Constitutional Convention delegate Oliver Ellsworth from Connecticut thought the convention “A favorable moment to shut and bar the door against paper money.” This view of the evils of paper money was shared by almost all the delegates to the convention, and was the reason the Constitution limited congressional authority to deal with the issue and mandated that only gold and silver could be legal tender. Paper money was prohibited and no central bank was authorized.

Printing money as they loosely say is illegal, you could call this counter fitting. The federal reserve created a system where banks only had to hold a fraction of reserves in order to create credit, this is another way the government debases currency. They print money, create credit, as it goes through the banking system we further expand the supply of money, diluting the value of money which is the inflation we see. This is an immoral and unjust tax on the people which many are unaware of.

Greenspan has kept the trend of inflation together longer than anyone. The dollar has been accepted by the world banks as having the value of gold, this created a global bubble which is about to burst as the global economy is suffering along with us.

Dealing with interest rates,Greenspan knew exactly what the consequences of his low interest rates would be. The trap was set to lure in unsuspecting borrowers who felt they could augment their stagnant wages by joining the housing gold rush. It was a great way to mask a deteriorating economy by expanding personal debt.

Alan Greenspan, years before he became Federal Reserve Board Chairman in charge of flagrantly debasing the U.S. dollar, wrote about this connection between sound money, prosperity, and freedom. In his article “Gold and Economic Freedom” (The Objectivist, July 1966), Greenspan starts by saying: “An almost hysterical antagonism toward the gold standard is an issue that unites statists of all persuasions. They seem to sense…that gold and economic freedom are inseparable.” Further he states that: “Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth.” Astoundingly, Mr. Greenspan’s analysis of the 1929 market crash, and how the Fed precipitated the crisis, directly parallels current conditions we are experienced under his management of the Fed. Greenspan explains: “The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom.” And, “…By 1929 the speculative imbalances had become overwhelming and unmanageable by the Fed.” Greenspan concluded his article by stating: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” He explains that the “shabby secret” of the proponents of big government and paper money is that deficit spending is simply nothing more than a “scheme for the hidden confiscation of wealth.” Yet here we are today with a purely fiat monetary system, once managed almost exclusively by Alan Greenspan, who once so correctly denounced the Fed’s role in the Depression while recognizing the need for sound money.


In 1955, Economist Victor Lebow wrote in the Journal of Retailing, "Our enormously productive economy demands that we make consumption a way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfaction, our ego satisfaction, in consumption. We need things consumed, burned up, replaced, and discarded at an ever-increasing rate.

You have to look into other areas directly related to economics such as documentations of government dealings. Take the inflation for example, how could this be part of a plan from decades ago? After world war two the government worked to create this system with lobbyists.

President Eisenhower's council of economic advisor's chairman said: "Our ultimate purpose is to produce more consumer goods." What? Not to provide health care, jobs, sustainability, but consumer goods, our ULTIMATE purpose? It's no wonder we have more crap than jobs, or opportunities or even hope. It's no wonder we only keep 1% of everything we consume in a year, we have to respond to the call of a plan designed for us. How would this plan be carried out in this day and age without inflation caused by the debasing of our currency... it wouldn't have. Two strategies used for this are: planned obsolescence and perceived obsolescence. Google it to learn more.

Signs of this economic plan could be seen anywhere to the trained eye. During the tragedy of 9/11 Mr. Bush could have suggested a number of appropriate things like to pray, grieve, to hope or come together. Instead Bush said we should shop, SHOP! In every act, everywhere we turn there is programming telling us to add to the inflation in a desperate attempt to stop others from realizing the truth.

Take a look around you. School tuition has risen 300% in some states in the last 5 years. Not only gas but food and daily essentials are rising as wages remain the same. More and more people can't afford health care. Our poor and lower class have increased dramatically, unemployment has risen its highest recently since Katrina. Veterans and elderlyI know have been forced out of their homes, admitted to senior developments because the government has gone after the little they have to survive on. The privitization of government, missing billions of tax dollars, the unconstitutional hiring of private military and spending for government spying on its citizens all contribute to this economic collapse caused by paper money devaluing our currency.

If one person cannot prosper in a prosperous country then perhaps things are not what they seem. And we have much more than one person to take care of who faces financial crisis. People don't stamp a word like depression until it happens to them, but its spreading like wild fire and soon everyone will realize there really never is control just the illusion of control.

Take walking or running for example: Walking or running would seem like an every day act, possibly a human triumph in the animal kingdom. But walking is actually a controlled fall in which you manipulate gravity and place your next foot forward to create balance and stability. It isn't something independent in itself, it is a controlled state of falling and at times we may not always be able to hold that state. In fact age wears us thin in this task.

The truth is we have already spun out of control and now we are crashing down. Go invest your money in foreign currency and make sure you have friends outside the states.

 

What an incoherent article. Preaching everything from walking upright and the effects of gravity to buying foreign currency.

The "Average People Fear Economic Depression" I doubt it, more like the the average people been bitching about their pay since they got their first job and realize their life is in the shitter and the way out of this "economic depression" is to buy a lottery ticket.

 

The "average person" fears missing American Idol. The "average person" puts very little thought into economics, either the big picture, or their own personal economics. The "average person" is a true economic idiot.

 

By design, of course.. just how the Gummint likes it.

If the majority of us understood, we'd have stopped them long ago. Now, it's likely too late.

 

I was reading about Germany pre-hyperinflation of 1923. The opinion of the author of what I was reading was that one thing that kept the huge oversupply of money from affecting inflation in 1914-1921 (money supply increased 4x, prices were at 140% of what they were) as much as it did starting in 1922 was that people were saving. So, there wasn't as much money available for spending, since it was all being sacked away into savings.

So, my point is, is the sh** going to hit the fan after we get through this period of consumer skittishness in terms of inflation?