Saturday, October 27, 2012

The Depression is Here -- It's Just Invisible

The Great Depression that Federal Reserve Chairman Ben Bernanke claims to have averted has been part of the background radiation of our economy since at least 2008.

It's just that, like radiation, it's invisible.

We've called it the recovery, the jobless recovery, the slogging recovery and more recently the fading recovery. We've measured modest growth in our nation's gross domestic product to record that our so-called Great Recession ended in June 2009. And now we are saying that if this disappointing growth suddenly disappears, as currently feared, we will be in a new recession.

There is nothing more depressing than hearing about a new recession when you haven't fully recovered from the last one. I take heart in suspecting that in a still-distant future, historians will look back with clarity and call this whole rotten period a depression.

The precise definition of a depression, of course, remains as debatable as anything else in the field of economics. By some definitions, it is a long-term slump in economic activity, often characterized by unusually high unemployment, a banking crisis, a sovereign-debt crisis, surprising bankruptcies and other horrible symptoms we can find in the headlines almost every day. Read more.....


  1. The government has gone through great hurdles to hide the reality. They have changed the way we calculate the GDP and unemployment numbers. We are worse off than they are reporting.

    1. I agree to an extent. I was laid off for about a month when market first fell a 4 years ago. Since then our orders have increased immensely. A 48 hour work week is standered now for myself and fellow workers. Either there are many people bamboozled by this and spending money they don't have or the government creating money out of thin air is working. They can keep playing this system this way for eternity. Besides does gold really have a value? Or is it just a metal with no real use besides a good electrical conductor. They need to have these down turns to recoup there loses from the poor they originally swindled in the first place.

  2. Name one fiat currency that has stood the test of time? Also name one national politician that did not make millions on public service salary?

    Enjoy the game.


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