One way this could be worse than the the great depression,India and China are burgeoning markets whilst the U.S could be ending its 200 plus year dynasty,power and greed are the killers of all great dynasty's and the U.S. seems to be at it's prime,this is when the rulers steal all the gold and flee with their lives. Does anyone know what that bailout was about, who got the cash,,or the cd swaps ,or why oil went to 145,or why Paulson asked that there be no repercussions as to the outcome of this heist,or how we are going to keep borrowing from our neighbors with 1% return on there investment?
oh yes...I'm just worried that patterns repeat themselves only until the crowd recognizes them and thinks the pattern will repeat itself forever... thank you!
Good Post. That is how our tax system was founded, by taxing things that were deemed "bad"; liquor tobacco and foreign goods.
That change is why we no longer make things here, and why we seem destined to borrow and consume till nobody will take more of our paper promises. It took a long time for it to evolve to that, but here we are. If my guess is correct, the current economic situation is the prelude to us learning the hard lessons of honest money, honest, productive work, and thrift, once again.
Maybe not this time (or may be) but when the big one happens we will eventually go to a no currency system and that will have it's advantages and disadvantages. * It's supporters will say no tax evasion and no buying and selling of controlled substances, weapons (be they handguns or bombs). I'm not one to cry wolf or worry much, but few people realize how fragile governments are and how quickly and easily entire great nations can change the way they do things - when in times of trouble. The right scenario can produce overnight change in liberties we take for granted. In many countries the military can go into any house they want and drag you out and do with you what they will until you tell them what they want to hear. And anyone who thinks any country is immune to it ever happening to them has blinders on.
You are not alone. This outfit called the Sept. financial meltdown back in February. Here's what they are saying now: http://www.leap2020.eu/GEAB-N-28-is-available!-Global-systemic-crisis-Alert-Summer-2009-The-US-government-defaults-on-its-debt_a2250.html (appears link has to be pasted into browser--sorry)
The Great Depression was not that bad for rural people, it was murder on the urbanites however... I'm going into food production in a small way, it's fun anyhow but come the worst, me and a few dogs to keep the "city folk" out of my food and I'm good to go... I inherited a safe full of shotguns and hunting stuff recently, gotta learn how to use it all.. for some reason, the idea of getting all prepared for hard times is fun to me.. I want to learn those skills of food production, storage, brewing, all that fun stuff that makes for a big neighborhood food fest where we can drink to the urbanites..... dang I will not be surprised if the Democrats are not calling for a constitutional convention at some point however.. the constitution is all that is between us and complete domination by banksters /public "servants"... William Ayers and that washed up crowd of bombers would salivate at the idea of owning us all...
Ex Chairman of Goldman Sachs - Whitehead sees slump worse than Depression. http://www.reuters.com/article/Finan...4AB7HT20081112 NEW YORK (Reuters) - The economy faces a slump deeper than the Great Depression and a growing deficit threatens the credit of the United States itself, former Goldman Sachs chairman John Whitehead, said at the Reuters Global Finance Summit on Wednesday. Whitehead, 86, said the prospect of worsening consumer credit woes combined with an overtaxed federal government make him fear that the current slump is far from over. "I think it would be worse than the depression," Whitehead said. "We're talking about reducing the credit of the United States of America, which is the backbone of the economic system." Whitehead encountered plenty of crises during his 38 years at the investment banking firm and was a young boy during the 1930s. Whitehead warned the country's financial strength is at risk due to the sweeping demand for tax relief and a long list of major government spending plans. "I see nothing but large increases in the deficit, all of which are serving to decrease the credit standing of America," said Whitehead, who served as chairman of the Lower Manhattan Development Corp after the World Trade Center was destroyed during the September 11, 2001 attacks. Whitehead, who helped make Goldman a top-tier Wall Street firm and led its international expansion, left in 1984 to become a deputy secretary of state under Ronald Reagan. He warned that the country's record deficit is poised to balloon as the public calls on government for more support. "Before I go to sleep at night, I wonder if tomorrow is the day Moody's and S&P will announce a downgrade of U.S. government bonds," he said. "Eventually U.S. government bonds would no longer be the triple-A credit that they've always been." There are at least ten "trillion dollar problems," facing the United States, he said, including social security, expanding health insurance, rebuilding infrastructure and increased spending on green energy. At the same time, the public does not want to pay for it. "The public is not prepared to increase taxes. Both parties were for reducing taxes, reducing income to government, and both parties favored a number of new programs -- all very costly and all done by the government," he said. Large deficits can weaken the country's credit and increase its borrowing costs, which already constitute a significant part of funding to cover expenses. Whitehead said it could take "several years" for the current problems to be resolved. Whitehead said he is speaking out on this topic because he is concerned no lawmakers are against these new spending programs and none will stand up and call for higher taxes. "I just want to get people thinking about this, and to realize this is a road to disaster," said Whitehead. "I've always been a positive person and optimistic, but I don't see a solution here."
POST WW2 England was bankrupt. In fact, nobody would buy their Gov Bonds, they were upside down. Many gave Marg. Thatcher (SP) credit for saving the "QUEEN". However, it was a massive Oil Discovery in the North Sea that saved England. She tapped into that and it brought back alive. Do your research on these facts! Google. We have a ton of oil and natural gas. Regardless of Prices at the current levels, we could save our country by exploring and getting our "LIMITED RESOURCES". PERIOD! Depression has started, however IMHO its gona be East and West Coast that will take and feel the brunt of it. Middle States, ones with Energy, Medical Centers, and state Surplus will survive. Also, Trade routes with Mexico and inport/export from the GULF will thrive, as it will be less expensive to bring goods in through the GULF (Alabama/Houston) than The East Cost Ports...for Euroland and Latin America. Asia will still have to export over to Cali, but by then, it will be bankrupt. Just like in the book "Atlas Shruggs", there will be pockets of this country that will survive.
What I'm genuinely finding alarming is the growing chorus of very credible people - be they economists in the academia sense, or straight-up business leaders - who are stating loudly they consider a depression as a distinct possibility. I've never experienced this before. I've never heard much older, wiser business people tell me or the general public that they are witnessing fundamental (maybe permanent) behavioral changes among the consumer and businesses. ...all this at a time when no one can really foresee what the ultimate high tick on the unemployment rate will end up being or when it will get there. These are unnerving times.