The SuperDepression has become a mathematical certainty, based upon a excellent research paper by John Williams of ShadowStats. In his report he has shown that at the current level of debt to GDP ratio if the US Government were to seize 100% of the GDP (aka your paycheques and the paycheques of the companies your work for) -they would still remain completely unable to meet their currently ballooning financial obligations.
- That this depression will be hyperinflationary (aka Weimer Republic Type HyperInflation)
"As to the fate of the developing U.S. great depression, it will encompass the fire of a hyperinflation, instead of the ice of deflation seen in the major U.S. depressions prior to World War II. What promises hyperinflation this time is the lack monetary discipline formerly imposed on the system by the gold standard, and a Federal Reserve dedicated to preventing a collapse in the money supply and the implosion of the still, extremely over-leveraged domestic financial system."
- That based on historical measures, the incumbent party will loose power
"In every presidential race since 1908, in which consistent, real (inflation-adjusted) annual disposable income growth was above 3.3%, the incumbent party holding the White House won every time. When income growth was below 3.3%, the incumbent party lost every time. Again, with redefinitions to the national income accounts in the last two decades, a consistent measure of disposable income as reported by the government has disappeared. Yet, even with official reporting, the current annual growth in real disposable income is at 2.2%, well below the traditional 3.3% limit."
- That 11 successive adminstrations have pushed the government liability to its absolute maximum (aka cannot stop spending.)
"Where Franklin Roosevelt abandoned the gold standard and its financial discipline for the debt standard, eleven successive administrations have pushed the debt standard to the limits of its viability, as seen now in the ongoing threat of possible systemic collapse. The effect of these policies has been a slow-motion destruction of the U.S. dollar's purchasing power, as seen in the accompanying table, since the gold standard was abandoned in 1933."
- That according to GAAP based financial statements the real debt load of the US Government is $62.6 Trillion with a $4.0 Trillion deficit for 2007.
"As discussed in the next section, the limits to the unlimited abuse of the debt standard are particularly evident in the GAAP-based financial statements of the U.S. government, which show the actual federal deficit at $4.0-plus trillion for 2007, alone, with total federal obligations standing at $62.6 trillion. With no ability to honor these obligations, the government effectively is bankrupt."
The paper continues:
"Again, the current circumstance will evolve into a hyperinflationary depression, then great depression. Although such is not likely much before 2010, or after 2018, that financial end game for the current markets will tend to come sooner rather than later and will break with surprising speed when it hits. As discussed later, this likely will not be a deflationary environment as seen during the Great Depression."
What to do, stockpile in the event your money cannot buy anything, and find a place where you can withstand the roving madness that will envelope the cities as this will eventually hit. This paper recommends that those who have money quietly transfer their wealth to a currency that is still gold-backed (aka the Swiss Franc.)
It is important to note that the Federal Reserve has already committed itself to this scenario with its policy of protecting the system - aka bailing out the banks while the end user is left to poverty and 'down-under' mortgages.
There is no Economic Crisis...It's all a lie.
If there is, why are there SO many gameshows giving away money instead of going towards other "economical difficulties" ?
Chrissie Fizz said this in post #3 : There is no Economic Crisis...It's all a lie.
If there is, why are there SO many gameshows giving away money instead of going towards other "economical difficulties" ?
Game Shows get their money from Advertisers. If it's a popular game show it's often cheaper to give the game show money and product to give away than it is to advertise.
Make no mistake, there an economic crisis. We have see the markets almost crash and rebound somewhat. This is however going to be short lived.
The government is printing money at an unbelievable rate. This can only result in one thing and one thing only. Hyper Inflation!
What does Hyper Inflation mean to the AVERAGE Citizen? It mean the price of goods go up and the your dollar doesn't go as far. In other words the cost of living skyrockets. When the cost of living goes up, the amount of poor people go up and the amount of rich people go down. In essense more upper class rich go into the middle class and more middle class enter the lower class.
Trickle up economics is an oxymoron. It just can't happen. Trickle down economics works. A poor person doesn't employ other poor people. However rich people DO employ poor people.
The rich want to keep their money, if you overtax the rich like the Obama Administration wants to do then they have to make cuts and guess who gets cut first? You got it, the poor thus making them even more poor. That is why there are so many unemployed. The more money the Rich make the more people are employed.
I know this is hard to believe but the government actually makes more money by cutting taxes than it does by raising taxes. This is what Ronald Reagan understood when he coined the word Trickle Down Economics. He had it right! Why is that? Becuase by cutting taxes it causes the RICH or Business to hire more people. The more people work the more taxes the govenment receives.
I also believe that an economic disaster is inevitable. It is the result of several factors which are probably irreversible at this late date. 1) the reckless deficit spending of Congress for the past 80 years 2) the existence of the Fed 3) the expansion of governmental regulation of every aspect of the economy, and 4) the apathy/blindness of the general public towards the subject of fiscal responsibility. When reality rears its ugly head, much misery will ensue.
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06-02-2008 12:50 AM
