Thursday, February 19, 2009
The Great Depression has Arrived- Collapsing American Dreams
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.” Link
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.