United States Heading towards a Depression?

I am afraid that Alex Jones is correct that the devaluing of the dollar is on purpose. To destroy our economy and to bring about the solution to the problem: the amero.

Conspiracy theory or conspiracy?

 

I'm starting to wonder about that too. All it will take is a trigger for a crash to spiral out of control.

 

Do you think increasing oil prices can be a trigger? Is there a breaking point, a point where it driving to work does not make sense to average Americans?

 

I doubt it will get that bad. But there definitely is a point where it makes sense to dump humongous crappy American cars and buy better made Japanese cars that get 35mpg. We've already reached that point. But I think the benefit of buying cars that have better fuel economy will even out the extra people are paying at the pump for a while.

 

Oil production worldwide (except Central Asia) has reached a plateau, and is declining steadily at the rate of 2.5% per year.

Check Out http://mazamascience.com/OilExport/

OPEC PRDUCTION




TOP 5 Oil Producers


But the demand for Oil is rising, and will keep on rising, as this energy is used to power the Asian economies.

China


India

 

People can adapt to higher oil prices by cutting back on driving, car pooling, finding a job that is closer, or taking public transportation. Driving 50 miles a day will only use a couple of gallons daily or 10 per week. At the current prices that's 20 gallons a week.

I'm thinking a trigger be a Black Monday stock crash similiar to what had occured in 1987 where in a single day the dow lost 22%. People use money market funds like a bank account and a crash would wipe people out. The dow is at 11,000 now. Imagine if it went below 2000. GM has already dropped to 1954 levels and the financials are in bad shape.

http://en.wikipedia.org/wiki/Black_Monday_(1987)

 

Bogart, do you think they are going to force the amero on us soon? Or is that BS?

 

I'm already using ameros that I buy on the black market

 

Thanks for the laugh. Excellent post.

 

I have so much to post, but I don't think many people read the articles I post. Do you read the articles I post?


In the meantime, this is one of the guys I respect a lot, super-investor Jim Rogers, saying the FED is done in the next 20 years.

Video
http://link.brightcove.com/services/link/bcpid1137692012/bctid1564399577

I am always smarter for watching his interviews. The man is an investment genius.

~

 

I always feel dorkier for watching his interviews, with that huge day glow orange bow tie around his neck.

 

You can't get any dorkier!

Between Murray Rothbard, Jeffrey Tucker and Jim Rogers, I'm totally going bow tie when I hit middle age.

 

Treasury Secretary Henry Paulson told Congress Wall Street can't expect the government to bail out troubled financial companies.

American International Group Inc, -$2.15, to $23.99
Freddie Mac - $2.26, to $8
Fannie Mae - $2.11, to $13.20
Lehman - $2.44, to $17.30.
Wachovia Corp. - $1.16, to $13.13

http://news.yahoo.com/s/ap/20080710/ap_on_bi_st_ma_re/wall_street;_ylt=AlKUOrWDkHfJpecnCCJ7HTKyBhIF

 

Very interesting interview indeed. Betting big on Asia... Nice.

But why isn't anyone talking about the coming Energy Crisis? Is it not important that there is going to be a huge shortage of Natural Gas & Crude Oil in the very near future, and the entire global economy depends on it. There will be a continuous recession for decades! Even in China...

Jim Rogers is really a Genius...

 

nice one, thanks for posting it.

 

Senate approve $300 billion 'second' bailout for bad lenders

http://news.yahoo.com/s/ap/20080711/ap_on_go_co/congress_housing

 

Atleast the lenders are happy

I wonder, if homeowners just can't afford the payment already, how would they do so in the future with new loans? Maybe its some kind of deferred payment, to avoid foreclosures.

But what if the housing prices keep falling still? And the FED has to raise interest rates to curb inflation, causing a deep recession? The US economy is addicted to fresh inflow of funds to continue working smoothly. This is really getting very interesting. I am sure the US Administration must have simulated the effects of their actions on a Super-Computer...

 

We're possibly on the brink of a New Deal if Obama gets in and does what people think he may do. Not to mention that in the next 6 months, George might arbitrarily decide to start WWIII by attacking Iran, and spreading contamination into Russia and China.

Running out of oil in 10 years isn't an immediate concern.