America’s Second Great Depression 2010 Year-end Update (Part 1)

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Johnny Oxygen's picture
Johnny Oxygen
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America’s Second Great Depression 2010 Year-end Update (Part 1)

America’s Second Great Depression 2010 Year-end Update (Part 1)

http://www.marketoracle.co.uk/Article25106.html

 

When we compare the causes of the depression of the 1930s to the current one, we also see additional similarities. For instance, in addition to greed and lack of accountability, reckless leadership, continuous denial, and misguided solutions.

Each depression shares four common features as well: massive chronic unemployment, a stock market collapse, a housing mess, and an acceleration of the wealth disparity.

The previous depression was characterized by several stock market collapses. Thus far, we have only witnessed one major stock market collapse. So it is likely (although not certain) that we will another.

We are not likely to see 25% unemployment like in the depression. Why?

Well for starters, Washington fudges all of the data. I have discussed this in detail in the past. [54]

As well, the bar for what are considered jobs has been lowered since the depression. Today, you can say you’re employed if you work part-time. Washington also considers you to be employed if work at McDonalds, as a valet, massage therapist or pet groomer, regardless whether or not you can survive in these wages or whether you just couldn’t find a suitable job with your engineering degree. Not to disrespect to anyone who might be employed in these occupations, but let’s face it; they don’t give you a pension plan or healthcare benefits. That means you’re getting the shaft, in addition to the low wages they’ve stuck you with.

Instead of the severity of unemployment seen during the first depression, this depression will be characterized by chronically high unemployment combined with massive underemployment. Thus, full devastation of the real unemployment picture will be masked.

We won’t see bread lines as we did during the previous depression because Washington issues food stamps. But unless Washington decides to provide housing to the homeless, we will see tent cities similar to the Hoovervilles from the previous depression. We are already seeing this today.

As well, we won’t see banks close their doors because we have the FDIC which was created in response to the previous depression. But what good is money is its being printed continuously?

Johnny Oxygen's picture
Johnny Oxygen
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Re: America’s Second Great Depression 2010 Year-end ...

I'm kind of interested to hear what people thought about this article. I disagree with a number of things he says and he sounds a little full of himself but the part I quoted I thought was a very interesting take on things. Anybody have any comments to add?

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Jager06
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Re: America’s Second Great Depression 2010 Year-end ...

Yes he does seem a bit full of himself. But if I had the Feds coming for me because I (supposedly) got too close to the truth, then I might be tempted to brag.

I think what he is saying fits the meme of many of the whistelblowers who are calling BS on the current global economic trends.

How it all ends up will be interesting indeed. I say plan for the worst, and split the differences. Deflation? Have 6 months of cash on hand. Inflation? Have 6 months worth of gold and silver on hand.

Either way it serves your best interests to hold food, water, clothing and hand tools for gardening and shelter maintenance. Energy replication if you can afford it.

Is there a part 2 yet?

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SteveW
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Re: America’s Second Great Depression 2010 Year-end ...
Johnny Oxygen wrote:

I'm kind of interested to hear what people thought about this article. I disagree with a number of things he says and he sounds a little full of himself but the part I quoted I thought was a very interesting take on things. Anybody have any comments to add?

When you put it all together he's seling some investment service while holding the viewpoint that the US will undergo a slow, sustained decline. I'm not into predicting the future but I see a slow decline as less disruptive than a rapid collapse (such as hyperinflation).

I agree with the comments that he thinks highly of himself, but then he's a salesman. I agree that the financial collapse was engineered by the megabanks, either wilfully or unknowingly. Personally I think it was wilful and an aspect of the ongoing economic class war.

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Rojelio
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Re: America’s Second Great Depression 2010 Year-end ...

I disagree with the author that there will always be guaranteed food stamps. At some point soon, entitlements have to dry up. There's just too much debt for the government not to defualt sometime soon. I think this (will be) much worse than the Great Depression because the 1929 situation was mostly screwed up policies. Sure, we've got the same banking scam going on now if not worse, now we've got a serious peak oil problem. Agriculture is now completely dependent upon a fossil fuel platform. At this point, peak oil is a reality as well as what Richard Heinberg calls "peak everything". We can't grow our way out of this with a world war. By the way, why are we selling $65 billion in advanced weaponry to that delightful democracy in Saudi Arabia in addition to what we're selling Israel and some of the other countries over there?

On top of that Mother Nature seems like she is about to put the hammer down for real this time. We're missing 40% of the phytoplankton in the oceans right now. Isn't that kind of like misplacing 40% of your red blood cells or something on that level? And I don't think climate change is something to conveniently brush aside like humanity has been doing...

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Subprime JD
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Re: America’s Second Great Depression 2010 Year-end ...

article fails to mention:

(a) peak oil and its effects;

(b) deficits and bond market risks;

(c) USD currency risks;

(d) state and local gov default risks;

(e) makes no mention of the 1 trillionplus in military spending

On balance, a terrible article.

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Johnny Oxygen
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Posts: 1443
Re: America’s Second Great Depression 2010 Year-end ...

Here is part 2

http://www.marketoracle.co.uk/Article25274.html

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