United States Heading towards a Depression?

You are missing the comparison between the 1973-75 Recession and the 2007-2009 recession. In both cases the democratic Congress ran-up out of control deficits.

One the unemployment numbers start to get better, they will be too much money chasing too few goods and services.

Already food consumption is out pacing production:

Global consumption (of corn) will reach 836.9 million tons, up from 836.12 million estimated last month and more than 815.01 million last year, the USDA said. It would be the second straight year world consumption exceeds output.
http://www.businessweek.com/news/20...-on-ethanol-smaller-world-crop-projected.html

You think that the Carter Recessions of 1980 and 81-82 were bad. The Obama Depression will be the mother of all recessions.

A US financial crisis is coming. The States have a $250 billion budget shortfall and $3.5 trillion in unfunded pension liabilities. The US will have a $16 trillion National Debt by the end of this year. Social Security and Medicare are broke. What flavor of kool-aid are you drinking?

Ron Paul: QE2 Is a Total Failure and Bernanke Is Delusional About Inflation
As for inflation, "I think there's plenty," Rep. Paul says, citing "skyrocketing" commodity prices and rising food prices. One problem is the Fed's reliance on core CPI, which famously excludes food and energy and relies on hedonic adjustments. "They rig that number,"
http://finance.yahoo.com/tech-ticke...0dWFsLXRlY2h0aWNrZXIEc2xrA3JvbnBhdWxxZTJpcw--

January deficit grows by $50B, on pace for $1.5T
http://finance.yahoo.com/news/January-deficit-grows-by-50B-apf-1040737723.html?x=0

 

37th - Richard M Nixon (1969-1974)
38th - Gerald R Ford (1974-1977)
39th - Jimmy Carter (1977-1981)
40th - Ronald W Reagan (1981-1989)
41st - George Bush (1989-1993)
42nd - William J Clinton (1993-2001)
43th - George W Bush (2001-2009)

In fact, to reference the previous chart the Republican Administrations outspent the Democrats in every instance shown.


From a market perspective, whatever the deficit was in 73-74 really was not a factor for the occurrence of the recession but a simple coincidence to the confluent forces that truly create the situation and can also be stated as the same for 07-09 the deficits are not instrumental to the cause of the recession. Although the numbers for 07-09 are now borderline, it really does not matter if it is the Republicans or Democrats that figure it out and put it to rest. The public just does not relate to the vast numbers applicable to the modern economies and people like Ron Paul are afraid and blind to the necessities of growth they try and stifle.

Principles and policies are what create economic turmoil and it has been the Republican Political Persuasions that have drifted the ships over the brink propelled in part by their fear and misunderstanding of exponential growth of monetary valuations and an unwillingness to mature with their control and understanding.

 

Breeze, are you the reason I need an ID to buy super glue and spray paint at Wal-Mart?

 

During the Ford Presidency, the Democrats help a 2/3 majority in the House and 61 Seats in the Senate. In other words, the Democrats had the power to over ride a veto and were responsible for the massive (for that time) stimulus spending. In the 1970s the monetary base increased 52% compared to the 1960s.

It's just a matter of common sense to see that printing money a.k.a monetizing the debt will create double digit inflation or even a dollar collapse.

Trade deficit widens to $40.6 billion in December and surges 32.8 percent for all of 2010

http://finance.yahoo.com/news/Trade-deficit-widens-to-406-apf-3042239199.html?x=0

People have to learn the hard way. Without the Democrats and Jimmy Carter there would never have been a Ronald Reagan.

Talk about super glue ... What's up with calling Obama's State of the Union, "Reaganesque" ????

 

Um, Breeze? Read your Constitution. Presidential administrations don't spend money. The House of Representatives spends money. The President can't spend one dollar, can't change one interest rate.

 

hopefully along way off, I still haven't seen things get any better from our recent recession

 

Does that mean they were not really massive or massive is relative to the time and in fact stimulus spending is simply synonyms with a growing economy that is related to the "healthy" growth in a nations wealth.....and meant to be shared equally among its citizens.

Oh no, not equally......

 

Hats off to Governor Mitch Daniels :

LINK

 

The velocity of money has slowed down and when it returns to normal we are in deep trouble. The FED has stopped reporting M3 Money supply and M1/M2 are growing in double digits.

The percentage increase in the monetary base is the largest increase in the past 50 years by a factor of 10 (see chart nearby).



http://online.wsj.com/article/SB124458888993599879.html

As of 4 November 2009 the Federal Reserve reported that the U.S. dollar monetary base is $1,999,897,000,000. This is an increase of 142% in 2 years.

The monetary base is only one component of money supply, however. M2, the broadest measure of money supply, has increased from approximately $7.41 trillion to $8.36 trillion from November 2007 to October 2009, the latest month-data available. This is a 2-year increase in U.S. M2 of approximately 12.9%

http://en.wikipedia.org/wiki/Money_supply

 

population is growing fast in the whole world - recession is inevitable. the whole economy is creaking at the seams

 

Makes you wonder - are they forcing the economies of all major players to tank to bring in their New World Order? They can use it to usher it in by stating all debts are cancelled (government debts) and start over.

 

Anyone but Laffer - where were bogart and Laffer's predictions prior to the Republican inspired, policies and principles of the 07-09 Recession? Oh I forgot, it was affordable housing that snowballed the Bush Administration into the unforeseen consequences but otherwise everything else was just fine.

What Laffer does not admit to is the return to positive growth and the continuous strengthening of the economy.

The politics of budget reduction is what is in dispute, not the fact that it is going to be accomplished and who gets credit will not be so relevant as the continued strengthening it produces and yes eventually higher rates and inflation. Far better then to have Bernakie in charge than bogart and Laffy.

Well there you go. Bernanke has salvaged the economy at minimum interest expense lowest in modern history, has restored bank liquidity, reestablished the underpinnings to the economic foundations and continues the expansion with an inflation rate at ~ 1%.

Laffer, like the policies and principles that put the nation in recession are indeed what this nation has already experienced and is in no more need of for their fallacies.

 

Salvaged? Who's economy are we talking about?

 

DJIA 12,273.26 + 43.97

The Republican recession of 07-09 was curtailed by the present Administration in June of 09 and has produced positive growth in GDP each quarter since that date.

The dynamics of the recovery have not been to the political advantage of the present Administration but nevertheless is fully responsible for the turnaround.

Mimicking bogart who predicts each day the sun will not rise will do you no good. With the dynamics set in motion by Bernanke and the continued monitoring of the economy by the present Administration as well as legislating budgetary reforms the people who initiated the decline by their own policies and principals and continue in its dialog will only themselves continue in that pursuit while the nation as a whole will prosper to inevitable higher levels.

 

God bogart asks for recession, he sees and gets recession.
God Breeze Wood denies it exists, sees a bright future and gets a bright future.

Which God will win? Stay tuned for the next installment of 'life on earth' as both get what they ask for.

 

Gee breeze, what would I know, I just have a degree on the topic whereas you have the magical ability to google the current Dow-jones numbers. My inability to be impressed by obamas economic lunacy is probably due to my failure to ignore facts. If you really think the economy is being handled swimmingly, good for you. You and Oprah can declare him to be "the one"... But some of us are diverted by the fact that believing in the Easter bunny makes more sense.

The current admin is spending our great grandchildrens Money as we speak. Their ability to get some economic indicators into the black by throwing money we don't have at it in never before seen quantities is like being able to start a small beakfast campfire by emptying your cars entire gas tank on it. it doesn't take a lotta skill, can't be done every day, and you darn sure aren't gonna go anywhere cause you just burned all the fuel.

Actually it's even worse than that analogy cause he's burning starter fuel we don't yet have. Anyway, look at more than just the DJ. The big picture is a mess, yet he wants to "invest" in more social spending. I hope he owns a wand he hasn't told us about, cause his math sucks.

We will be paying for years to come for the error of letting this idiot Obama have the reins. Anyone that is so dumb he can raise spending astronomically then think he can fix the problem by freezing spending at current levels is definitely inhaling.

 

Happy days are here again!!

 

I think I threw up in my mouth. The only thing dynamic here are your posts. They are continually changing from mad to completely unintelligible.

 

Rome is not built in a day, investors are patient but the better ones accept the present for the value it represents, not to continue the political whims that justified their failures in the past.

If the reactionaries above truly cared for their country they will respond positively to their President, for the betterment not only of their country but for their own standing......
..........

Too bad about your mouth, Mia.
..........

What is your point O...nation - the causal effects of your failed policies and principals?

 

Rome was not built with printed money either. The only investors out there "investing" are the short term gainers. People looking at the long haul, and the overall picture are simply staying put for now. You misinterpret modest short term gains as an optimistic outlook of the future. I'm afraid you're mistaken.

It is not reactionary to respond with a sense of pessimism when history, experience and common sense dictate we're headed in the wrong direction. Breeze, you cannot respond positively to something that defies logic. If you really believe the president is bettering this country, I have some swamp land you might be interested in.