United States Heading towards a Depression?

The problem will is that government intervention is growing even more now with obama then it was with bush (who would have ever thought that)

Unfortunately Spencer, i know all about alt-a. Where are the promises Obama gave us about reducing our mortgages?
How many times are we going to believe the word "change" before someone comes that actually will follow through with that promise?

 

I think Obama made it pretty clear from the getgo he was all about government intervention that would make Bush look like an amateur.

 

Well, unless the President starts 2 new wars, and then another war on top of that to trump George W. Bush, plus add more government jobs (like the Department of Homeland Security)...

I don't see how Obama will come close to achieving what Bush did.

Why do people think Obama is some superman who can do in under 1 year what it took George W Bush 8 years to do?

If anything, Obama is undoing a lot of Bush's accomplishments. Yet, people here seem to think Obama is doing more. It's very confusing.

 

Pretty much anyone who was paying attention would have thought that.

It's the platform upon which Obama campaigned.

With whose money?

I never fell for Obama's rhetoric and frankly I feel embarrassed for those who did.

On the other hand, I think that Obama is pushing the citizens of the United States too far and that they will not put up with this forever. Obama could end up being the final straw which finally ends the long string of federal government abuses of Constitutional power started by Franklin Roosevelt.

As Thomas Jefferson wrote:

When all government, in little as in great things, shall be drawn to Washington as the Center of all power, it will render powerless the checks provided of one government on another and will become as venal and oppressive as the government from which we separated.
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That appears to be the situation we have gotten ourselves in. All Barack Obama needs to do is to make the situation a little less tolerable and the nation will cross the tipping point towards real change.

 

You are right, soon all the Americans will put their tails between their legs and run to Singapore where the government intervention is so none existent that you need the government permission to chew a gum.

 

The U.S. unemployment rate just hit 9.7% — the highest rate in 26 years. On Labor Day, 14.9 million Americans found themselves without jobs.

The unemployment rate was pushed upwards by the July increase in the federal minimum wage to $7.25/hr, which destroyed approximately 300,000 jobs.

The underemployment rate jumped to 16.8 percent — the highest number since the government started keeping track in 1994. This number is being constantly pushed up by federal regulations which make it prohibitively expensive for employers to hire full-time workers. Employers are forced to hire part-time workers or shift the jobs to offshore workers.

The Congress is currently working to pass the “Employee Free Choice Act”, which will allow labor unions to terrorize individual workers into joining labor unions. This will result in an estimated $35 Billion dollars in revenue to the labor unions over the next ten years — a good portion of which will then be donated back to the Democratic Party. It will also result in a net loss of 600,000 American jobs — just during it’s first year.

Folks, this economy is going to get a lot worse before it gets better. Pay down your debts, store up your savings, and wait for the next election.

 

The Tea parties and Health Care Rallies are just the beginning.

Time to load up on Machine Guns, ammo, and food and water.


Get ready folks your going to need the guns to kill the zombies when they realize whats going on.

 

The other tough guy has put his tail and ran to Singapore, where are you going to go?

Why do the right-wing nuts always need to talk like this? I bet that you haven't even seen a machine gun in reality.

 

An economical shift is happening. Everywhere you turn, you read news as this http://www.bloomberg.com/apps/news?pid=20601085&sid=aLTaPmkv1_O4 where more and more money is being invested into Asian companies.

 

SHHHHH don't want to wake up the sheeple like Gworld from their obama zombie sleep.

 

The economys getting a little pop from the $8000 home buyer credit and the $4500 cash for clunkers. But all the US is doing is printing money and robbing peter to pay paul.

Housing is on the verge of another collapse. The FHA has expanded its loan portfolio to $287 billion from $84 millon over the last 2 years. The default rate is increasing and it won't be long before the FHA needs a nalout.

The unemployment rate has increased to 9.7%. As a result foreclosures are bound to increase.

Commercial real estate is in bad shape. Many banks are hiding their loses. The FDIC is running out of money and there has been a string of bank failures.

 

Yep FHA is picking up the slack from the missing gap from the PRIVATE SECTOR who was dishing out loans to everyone. FHA now accounts for 25 percent of loans given out and they greatly reduced their standards a few months ago for the first time. FHA is the new COUNTRYWIDE. LOL


Cash for clunkers will now cost retail sales in OTHER industries for the next 5 years because people will now be paying car payments instead of going out and spending on other things.

 

Why is it that Asian nations are the ones that went out of recession first than the U.S. and also Europe?

 

It probably seems that way. I used to think so too, and thought this would create inflation. But I have a different view now. Since if they dont create new money. The money supply shrinks by way of interest payments back the people who created the money. Why do think Banks have interest rates? The logic is simple to slowly siphon the money out of the system. Watch the video Money as Debt. Particularly pay attention to the conclusion near the middle of the video about the "debt monster". This thing needs to be feed every day newly created money! Were in a perpetual cycle of debt, where we borrow money, and borrow money to pay the interest on the borrowed money.. and so on. The debt monster grows. If we stop "printing" the money, the money "Debt monster" we "eat" all the remaining money (By interest). Then there won't be any money in circulation. Also notice the US national debt being $11,801,712,627,132 ($11.8 trillion). Imagine how much interest there is on 11 trillion that needs to be paid everyday? They probably have to "print" a few billion everyday to feed this monster!

 

cz i think they r not much developed?

 

Because Asian countries are not as dependent on credit. People buy what they have the money for. Europeans and Americans often lose track over what is owned and what is owed while Asians overall seem to be more frugal when things get tight and manage money a lot better.

 

Many Asian countries didn't even face a recession.

China and India have been constantly growing for the last few years.

I am not sure about China, but in India the local demand for goods and services has been robust.

Last year, there was contraction in sectors that are dependent on exports, but even those seem to be recovering now.

As Blogmaster said, using debt is not really popular among consumers in Asian countries.

(Companies do use debt, but usually are conservative compared to their western counterparts).

 

I think anyone could see the glaring problem with Asia. There hoarding US dollars. China has like $1.33 trillion in USD reserves! Of course their going to be a better position financially.
I think they may might be holding 10.5% of the national debt from United States, whether directly or indirectly they still are holding 10% of the money. Does it seem Americans have sold a good sizable part of their country to China by renovating their homes and buying made in china garbage?.

 

it's a viscous circle, not very complex to understand.

China lends money to Americans.

Americans buy Chinese goods with that money.

China again lends the same money back to Americans.

result - the debt on Americans keeps increasing and Chinese factories keep running.

 

It also creates another bad situation where if they stop "making money" I.e debt. Then the all the available money will be siphoned out of the US economy slowly by imports. Leaving Asian hoarding all the dollars. The only way for those dollars to go back into the Americans hands if they make "stuff" and export it back them. Does that make sense? I think it does.

Think of it like a cup and you put a straw into it, and suck the water out to another cup named "China", now if you dont continually refill the cup named "USA" with new debt water. The "USA" cup will become empty.

Vicious cycle? Indeed.