|
It almost seems amusing that we are still
discussing the “coming” depression because of the fact that it is
already arrived and settling in.
Really, what this entire new “era” is all about is
watching our dreams deteriorate right before our eyes.
Want to hear what the real world is like
today? Country star John Rich
dramatizes this well in his new song, “They’re Shutting Detroit
Down.”
John Rich –
“They're out there losing millions and it's up to me and you to come
running to the rescue. Well pardon me if I don't shed a tear/they're selling
make believe and we don't buy that here/cause in the real world they're
shutting Detroit down, while the boss man takes his bonus pay and jets on out
of town/DC's paying out the bankers as the farmers auction ground/while
they're living it up on Wall Street in that New York City town, here in the
real world they’re shutting Detroit down.”
My favorite line is – “the boss
man takes his bonus pay and jets on out of town.”
Wow!
All these collapsed dreams!
All the thousands of baby boomers with calloused hands looking at 50%
reduced portfolios. What’s
a mother to do? Well,
there’s always Wal-Mart.
And McDonalds needs someone to keep their tables clean. And let’s not forgot The Waffle
House. An old trusted stand
in. Work as a short order cook
for 60 hours a week. The
opportunities are endless for those with empty bank accounts.
It seems that the majority of us are just not
destined to move forward. How
many thousands of thousands of heads of households are looking at the
devastation of their 401K portfolio?
It’s not easy to forget the glory days of the past as they lose
their home and lose their savings.
I see eventually Hooverville shacks lining
vacant lots. Made up of cardboard
and bits of old trash taken from local garbage. This is our future?
“The Federal
Reserve on Wednesday sharply downgraded its projections for the country's
economic performance this year, predicting the economy will actually shrink
and unemployment will rise higher.” “The bleaker outlook represents
the growing toll of the worst housing, credit and financial crises since the
1930s.” “…unemployment—now at 7.6 percent, the
highest in more than 16 years—will keep climbing and stay elevated for
quite some time, the Fed predicted.”
breitbart.com/article.php?id=D96E5TL82&show_article=1
All the stimulus packages will ultimately
bring hyperinflation. In a year,
in two years? What does the time
line really matter? This is the middle class and the poor class. This financial
crisis has been predicted for quite some time. Still, when it actually occurs there
is no way you can be totally emotionally prepared. And like a boulder rolling down hill
it will only continue to grow worse in the foreseeable future.
“The US government
may have to nationalize some banks on a temporary basis to fix the financial
system and restore the flow of credit, Alan Greenspan, the former Federal
Reserve chairman, has told the Financial Times. In an interview, Mr.
Greenspan, who for decades was regarded as the high priest of laisser-faire
capitalism, said nationalization could be the least bad option left for
policymakers.”
“…policymakers across the political spectrum appeared to
be moving towards accepting some form of bank nationalization.” “If nationalization is what
works, then we should do it.” ft.com/cms/s/0/e310cbf6-fd4e-11dd-a103-000077b07658.html
Is this economic collapse going to
continue? Will the world wide
economy continue to go down hill? There is a continuing global imbalance
in the world that only continues to increase in size. Production and industry will always be
the real key to a country’s long term and real prosperity. Is the US
going to be able to continue to service its growing debts? Few can really comprehend the fate
that lies ahead for the North American group of nations.
The collapse in employment is across the board
and affecting all industries.
Only in the health care sector and social aid has there been any
increase and demand for employment.
2009 is expected to be a bad year for employment losses. Probably, the unemployment numbers are
even higher than the government statistics state. America’s
problems continue to be the result of the expansion of the money supply. Instant gratification with the tragic
results further down the corner.
And there just isn’t the increase in productivity the increase
of the money in circulation needs.
Many professional jobs continue to leave this country making the
unemployment figures higher.
Corporations are responsible for expanding work visas allowing many
foreigners to come to the US
and work in the technical sector competing for computer programming and
engineering positions. Cheaper
foreign labor.
“You've probably
never wanted expert insight more than today - and never trusted it less.
After all, the intelligent, articulate, well-paid authorities voicing these
opinions are the ones who created the crisis or failed to predict it or lost
30% of your 401(k) in it.”
“…we can't shake the belief that elite forecasters know
better than the rest of us what the future holds.” “And wrong they usually were,
barely beating out a random forecast generator.” “Ironically, the
more famous the expert, the less accurate his or her predictions tended to
be.” money.cnn.com/2009/02/17/pf/experts
Many are expecting a double digit unemployment
rate by the end of this year. Of
course the solution to all these problems per government recommendation is
more debt piled on top of even greater debt. The US Treasury must find buyers for
over 2 trillion in new debt in 2009 alone. How is this financial slowdown
different from other economic slowdowns? This time the markets are dragging
the economy down. The depression
of 1929 is thought to have been created by the tightening of credit. That is why Fed Chairman Bernake is cutting interest rates and throwing trillions
of dollars at the economy. The
problem is the people and industries are not spending. The problem is a growing fear in the
market place. And when markets
are in fear they do not spend money.
Click here to order Gold Letter
Inflation is coming and gold will eventually
rise in this environment.
Inflation is the best scenario for higher gold prices. Gold is still going to be around even
after all this economic mess settles down a bit in twenty years.
David Vaughn
Editor, Gold Letter, Inc.
www.goldletterdv.com
| 
