Thursday, April 29, 2010

America's Second Great Depression



(snippet)
Make no mistake, we are seeing the early stages of what will written in history books as America’s Second Great Depression, just as I predicted in America’s Financial Apocalypse (2006).  
Who are you going to trust? The media and their government hacks who have been wrong over and over, or someone who has been right about virtually everything over the past five years?
Who are you going to trust, people with clear political and financial agendas, or someone with neither?
Ever since the implosion of the largest real estate and credit bubble in history, I have published numerous unfortunate realities. See (1) and (2)  
Since then, I have not altered these views.  See (3) (4) and (5) 
  
With the national debt approaching $13 trillion, no real improvements to the worst and longest recession since the Great Depression, blue chips slashing dividends for the first time in history (eg. DOW), century-old financial institutions now in bankruptcy (Lehman Brothers, Bear Stearns, Washington Mutual), trillions of dollars in bailouts, the largest year-over-year decline in GDP, state tax revenues and housing starts since the Great Depression, over 7 million foreclosures, an additional 7 million more foreclosures over the next 2 to 4 years, more than 8 million lost jobs with about 32 million Americans out of work, more than 40 million Americans on food stamps, a healthcare crisis that has not been addressed, a continuing trend of excessive inflation for food, energy and healthcare, and consumer spending coming to a halt…you can be assured of many things over the next several years:
  • Several more stimulus packages (which won’t offer any permanent assistance)
  • Soaring consumer loan defaults
  • Soaring commercial real estate defaults
  • Several million additional foreclosures
  • Rapidly rising and high interest rates
  • Muted real wage growth
  • Declining job quality
  • Lingering high unemployment for several years
  • Significant downside in the U.S. stock market
  • Continuation of employee benefit cuts
  • Continuation of healthcare inflation with millions more medical bankruptcies
  • A deepening of the entitlement crisis
  • Excessive inflation over an extended period OR massive inflation that will be countered by double-digit interest rates
  • A long period of muted consumer spending
  • Much higher taxes (not just income, but all taxes)
  • A worsening of America’s Second Great Depression, with up to two lost decades.
  • World War III
At best, the U.S. will continue to experience economic malaise for well over a decade. As the nation progresses through this treacherous period, any of the small improvements will be offset by longer-term issues that are virtually impossible to overcome.
More Here..

25 comments:

  1. I've been studying the economy for the past couple of years mainly because I suspected something was wrong when housing prices reached 3x historical norms in 2005.

    I startd with Bob Chapman's International Forecaster back then. I knew he was an honest man calling it like it is. He's a fellow wall street alumni. I knew then that he was right, a few years down the line the whole thing would blow up and it'd be time to face the music.

    August 14th, 2007: Bear Stearns announces problems with one of their hedge funds.

    Seems America is heading for a very severe Austerity program probably under the IMF, along with every other country on the planet.

    The world economy is a very big toilet, and the flush process takes a long time. In fact, if you push the lever on August 14th, 2007 it takes till around January 2011 for the major part of the flush operation to happen.

    I hope I'm wrong, but America could very well see 1/2 of all small businesses gone by then.

    What's sad about all this is it's due simply to gross mismanegment. Remember the boom times of production activity? Properly managed, we could all be enjoying a decent relaxed life style.

    I include the plans for nuclear terrorism, one world government, FEMA camps, and all that other groovy stuff under the term 'gross mismanegment'. These idiots couldn't manage their way out of a paper bag and they're in charge of one of the crown jewels of the universe: Mankind. How sad is that.

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  2. Ya, without a job and no viable leads after beating the pavement for eight months I feel like a turd swirling around in a toilet waiting to go down.

    Gotta love this forum. Really cheers me up.

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  3. 11:31 - real men make this their home page.

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  4. Mankind is not the crown jewel of the universe. We are a backward, superstitious, violent ape-race that ranks far, far down the list of the inhabitants I am sure.

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  5. 11:54 we are the best and the worst of everything...We can change a planet or completely trash/destroy it...(No not talking global warming...Talking all the nukes we have and pollution we dump)

    Every other species tries to adapt and cohabit with the earth but we have a real bad habit of doing stupid shit.

    Part of me wants us to live on, educate each other, try to get along, plant things and build things properly...The other part knows that's a fantasy because we're idiots most of the time self included.

    Let's just put the cards on the table...WE ARE NOT going to clean things up and go to honest, hard working times we're predestined to squabble and kill each other off because honestly when things are good we get bored and look for trouble...It's our nature.

    Detroit looks like Estonia...East St. Louis is a 3rd world nation (LA, Atlanta, DC, Houston etc etc)...There's more violent crime in some American Cities than in entire European nations!

    We kinda deserve to get our asses spanked so hopefully a few of us learn and try to change our ways...Kinda how an alcoholic only understands when he reaches bottom.

    But man there will be so many bad people by then and all the good/old/weak and young will be pretty much destroyed.

    We live in very interesting times...Shit that sounds like it comes from some sci-fi movie...(Robo-cop/V for Vendetta/Blade Runner atmosphere)...I won't lie I'm spooked but man am kinda glad to be here to see it.

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  6. You will be able to see the enslavement of the many; your kids, by the elite families and done via mind control, propaganda, trickery. Nothing you should be glad about seeing. Humanity will completely change in the next 20-30 years and not for the better.

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  7. The politicians and the BANKSTERS sold us all out:

    http://americaspeaksink.com/2010/04/bankster-gangster/comment-page-1/#comment-6061

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  8. 12:31 You're right and wrong...We are living in the middle of HUMAN HISTORY...Not American or French etc...BUT worldwide!

    Wars/earthquakes/hurricanes/fires...So much suffering but at the same time an incredible amount of everything...You can reinvent yourself...Leave the shell of a social drone and do things/see things...instead of being just one more cog in the giant social wheel that works consumes then dies.

    It will be horrible but it is what you make of it...I've been poor and well off and my best times with REAL friends was when I was poor...I seriously make about 15 times what I once made but man the times I had with a lil bit of money and less responsibilities still make me smile.

    On the other hand I am single with no kids so seeing this only from my perspective...So I understand yours.

    Plus tough times make tough people...Aren't you tired of whiny idiot people complain about the most stupidest things and try showing off the latest gadget based on marketing?

    Well soon a glass of wine and a good conversation while playing chess with a friend will seem like heaven...Hard times bring appreciation...I want that...We're not going to change the course of this train wreck so might as well look for the good in it.

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  9. America is a country founded on buying and selling out. Dont blame solely the poor bankers and the corporate moguls and CEO's. It's in all of our blood. We can not perceive of a better system. We are all duped/indoctrinated into believing relentless capitalism is the only way. Now that the end of the decadence is here, people still claim to that ideology. I imagine many will go to the grave with their bloody fingers clenched around it. Belief is a powerful thing.

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  10. @11:31 I'm at 11 months unemployed and 643 resumes sent with no luck. I've resorted to selling off my furniture and electronics in order to keep up with my bills. As I type this I am sitting on the floor on a sleeping bag.

    Isn't life just great?

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  11. Rubbish.

    Things are going great. Profits are up. The wealthy are still massively wealthy. So, there are some unemployed. Who cares, they're not worth mentioning, so long as corporations keep up their profits.

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  12. 3:52 Hang in there. You have to leave your area. If you have sent our 643 resumes with no job, you must leave and come to the midwest. It is not perfect here, but there is still work.

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  13. .....they're in charge of one of the crown jewels of the universe: Mankind.

    I would say a butterfly is a crown jewel, as well as a starfish, an elephant, a dolphin. Mankind? ...is a virus, destroying the host at every opportunity.

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  14. America changed from a productive of physical wealth industrial powerhouse economy to an capitalist economy based on finance sector domination by Ponzi schemes , deriving their profits from usury by the creation of serial bubbles of fictional paper property and paper dollar values .
    Even the paid for pension and benefits plans promises are Ponzi.
    This all worked well enough under the Dollar Hegemony in world trade and finance for the past few decades . But the interest bills deficit spending for militarism propping up the US empire for cheap oil and puppet or subservient governments prepared to deliver up for American consumers cheap labour commodities in exchange for paper dollars helping to create illusions of prosperity and
    “GDP” mounted up for government. Americans even believed that this deficit spending and their work in service industries was the most productive in the world. They were counting paper gains and credit as productivity.
    In the end the US was borrowing international credit from other countries such as vendor financing from the poor third world like China, Japan, and the oil sheiks driving up the property bubble and the related use of the house as an ATM ponzi. The total being borrowed annually by America was equal to the total after tax “profits” distributed by US companies at least 40% of these profits flowing from the finance sector scams . This total profit included profits from overseas business. As ell as
    profits realised as cash from cheap foreign labor in Wall Mart etc. This Ponzi economy could only last so long as there was credit supply and the Dollar Hegemony lasted .
    In the end real world equal value must be exchanged for equal value .
    When the US could not keep up with the interest and dividend payments on its bonds and this first became apparent in the sub-prime property bubble . Credit supply -the money markets shut down and the US economy entered Crisis. FULL STOP.
    Beyond the exchange of commodity and services exchanged at their value between
    americans themselves ,on the whole in total , there were no profits to be got in america including from its subsidised and bribed industrial workers.
    When the Ponzi economy shut down it was temporarily propped up with printed money and paper profits for the Banksters bailouts .
    No real American created wealth exists to exchange for the imported commodity consumption at the old levels . The American working people were unproductive for capital and many find they are now surplus to the needs of capital and have run out of credit.
    BUT without a viable industrial American profit source and continuing credit supply , the Elite organised a financial coup in treasury as the only available source of profit -the looting and plunder of the American State and by a transfer of wealth from the American middle class to the finance capitalists. With many loosing their jobs , many will fall behind in the house payments and for usury credit card debts. There can be no recovery ,not even a jobless recovery, for a debt burdened bankrupt America, a return to the old ponzi economy levels of consumption and jobs ,because in the end there WAS no real profit being created in production in Ponzi America by American capital pre -crisis anyway !

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  15. but America could very well see 1/2 of all small businesses gone by then.

    Jesus Freak,
    Check the top of Exter's Pyramid. Demand collapses downward...
    Exter's pyramid
    .

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  16. 728
    in short
    we default on china
    china considers an act of war
    and attacks the usa for unpaid debt
    world war 3 iran china rusia
    TLDM dot org
    she laid it out in the 70s
    and yes all from our lady of fatima
    man doesnt understand the will or the power of god
    pray its hard in this climate
    but that has only ever been our only hope
    also for you atheist
    ill see you in the fox hole
    and you can join me then
    all to easy

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  17. tyrone and jesus

    silver buddies
    silver
    that will be traded
    and gold will be held
    it at the top of the pyrmiad

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  18. as jim rogers said
    the transfer of wealth
    gold always leaves the rich and goes to the next powerful country
    spain germany ww2 even the romans
    china will demand payment in gold
    or land for crapy paper
    now will americans call there leaders in for treason
    you notice the patriot act is for terroism
    isnt it funny shouldnt it be called the terroist act
    its called the patriot act because they will be coming for patriots
    all to easy
    darth vader would love america know

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  19. Didn’t we hear all this , Oh my God ! lady of Fatima Prophesy drivel stuff during the cold war when it had an anti-Bolshevik anti- Russian “bear” interpretation and pro- America slant?
    Now it gets to be Iran and China as well as Russia now .
    That’s convenient!
    And capitalist China is now the Bolshevik power out to attack America with its Muslim allies?
    The CIA must be pleased with this line!
    So, we line up in American foxholes to fight the enemies of mother Mary and God still?
    The fact that the Chinese have a “communist” party in name and China is communist is about as real as believing that America is democratic because it is ruled by a party that calls itself Democrat

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  20. 835
    thanks for the news flash
    at least you try to think good for you

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  21. unemployed for one year......sent out over a thousand resumes.....still can't find a job

    This is getting frustrating....RRRRRRRRRR

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  22. Close friend of mine unemployed for 6 months,sent out hundreds of resumes, nothing. He is not willing to wake up to what is going on. He is about to loose his house, he has no car, and is selling everything he owns to survive. I figure he will be living with a relative or on the street within a month, or he will take his own life.

    This scenario is almost the norm now.

    Remember, the dollar will collapse very soon, then the sheeple will do what?

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  23. just rob like the banks do, rob and keep robbing, the govt hates the competition

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  24. 358 go fuck your mother

    ReplyDelete

Everyone is encouraged to participate with civilized comments.