This is a key point. The Feds will become more irrelevant as money drys up. State and local is where the rubber meets the road and the problems will be dealt with and solved as the depression deepens. It will be better for US in the long run.
drsteph... I agree. However, it is interesting that we are going down the very road that brought on WW2. Also, we have had about the same pattern in the markets as we did in the 1930s. Both stock and housing. Yet, back then we had a strong manufacturing base, this time, we only have broke ass consumers who make up 70% GDP. I deal with Global Private Companies. I consultant and put together Investment Pools for Infrastructure, Shipping, hard assets. Most American's have no idea that we are in this alone. This Depression will slow the rest of the world down a little, but the idea that we will drag the world down with us is, in academic terms..Horseshit! Not true. My clients in South East Asia, Brazil, South America in General are all very strong in sales. Many economic studies that we put together show the rest of the world preparing for the economic decline of the US. Thus, they have re-positioned their targets for goods and services. I have moved a number of Private Manufactures off shore. Vietnam, New Guinea, Indonesia are the three main areas where US manufacturing have been building a presence. CHINA is not the main target for Manufactures who are leaving the US. American's are sleeping and they believe the propaganda machine that is the Media and Wall Street. Both are building premises on lies and deception. The smart money left a long time ago. The only influx of Capital I have dealt with, from foreign investments, we rolled into Oil drilling projects, Wind Projects and key infrastructure projects. America is for sale at bargain prices and if there is any one on ET that is in my world of Private Equity, will back that statement up. SWF's are looking to purchase more land, natural resources in the US and they are looking to buy more "Key Infrastructure". Bottom line, America is finished. The people have spoken and HOPE AND CHANGE was brought forth. Now, it will fall on individual STATES and how those STATES attract business, investments and skilled workers. The US may stay whole and not break apart but, less than 14 states will be in an economic boom while the others fall into deep depression.
I don't know how this is going to go down. It could be a complete change if there is a revolution. This could happen if enough people are affected in a short time. Namely an economic collapse. You may not have a United States for long. It could completely change.
Hopefully, it will be gradual, although the large urban centers are at risk. As EMR pointed out, the economy is paramount, which some are ignoring, hoping the problem will go away.
It could be a complete change if there is a revolution: ----------------------------------------------------------- MORGON: Good point. However, Americans have become Lazy and afraid. The US GOV knows this and hence, push FEAR all day long. In order to controll the SHeeople they must put FEAR in their blood. This is an old age tactic of Totalitarian Regimes. American's love their TV and "TOYS". They have a lot of distractions which keep them from waking up. The majority fall into this. The majority are willing to give up freedoms for SAFETY from whatever enemies the FED GOV creates. (ERICH FROMM wrote about this) Bottom line, Psychological Warfare is being conducted by the US GOV and WALL STREET. A mixture of FEAR and DON'T WORRY BE HAPPY. Disinformation is the key form to this Warfare. The "HURT" and Rescue" tactical is used by OBAMA's team all the time. IF WE DON'T GET THIS THEN YOU WILL BE HURT, BUT IF WE DO GET THIS THEN YOU WILL BE FINE. The fucking idiot used it in his most recent speech about the "DEBT CEILING NEEDS TO BE RAISED SO THE ECONOMIC STORM WILL PASS. IF NOT ITS THE END OF AMERICA!" Well the Manufacturing numbers and other key indicators are showing the opposite...that even with a Debt limit raise, things are gona get worse and we will be down graded. Economics must be thrown out the window at this point MORGAN. It is pure MENTAL, psychology now. Economics is a false science at this point because ALL DATA IS TAINTED. A REVOLUTION is to much work for most of the country. Many will perish all the while waiting and praying for their "HOPE AND CHANGE". Yet, there are individual STATES that have woken up. That have told the FED GOV to get off their backs and that have taken on their own course. Question is, will the FED GOV violate states rights and be the first to start a War with those states who do not FALL IN LINE with the DC Mentality. That could be the first spark. All I can say is, that every Rancher, Every business man, every hard working person in TEXAS that I have met, is ready. They are armed, they are trained (As many have joined the Texas Militia and everyone I know hits the firing range at least once a week for practice.) I'm not a native Texan. I left the East Coast and Midwest to come to Texas. However, regardless of the issues that Texas has as a state, TEXANS WILL COME TOGETHER if needed and they will fight for their Freedoms, family and way of life. Many balk at this, they laugh and act the fool in their East, Midwest and West Coast states. Those very fools will be the ones perishing when and if the "SHIT GOES DOWN".
Yeah not good to be in a city. Have you got a SHTF kit. Ps. I don't think it is far off. Perhaps six months before things get like 2008/2009 again. At the latest two three years before it hits the fan. You might get a gradual decline like the great depression when people live in parks.
Maybe that is one possible outcome though. What do you think. Will you Canadians hold hands with the Americans and pay off their debt for them. Or will you let them deal with it by themselves, which could lead to revolution or state seperation in the long run.
No doubt the British thought much the same back in the late 1700's. Is the Loonie accepted anywhere except Canada?