Originally posted by RFBurns
Well renaming Great Depression to Great Decline doesnt make it any different, its all the same thing.
Window dressing the truth only makes the situation that much more difficult in the long run. Call it for what it is and not shower it with false
impressions and misleading descriptions.
Cheers!!!!
[edit on 17-12-2008 by RFBurns]
No, it is not the same thing. A depression is something that can be addressed with policy and investment over time. A decline such as the one I
predict is not so easy and goes on for generations. And this very scenario will have huge consequences on world stability that may spark a world war.
A depression does not have to spark a war, but a long term and painful inflationary depression, like the one we're about to face, cannot be cornered
as easily. Our policy makers are a bunch of crooks who will prosper in the coming decline while the rest of the country goes through generation after
generation of economic and socio-political instability, with massive decline in the modus vivendis of the population as a whole. Again over many
generations. Though 3rd world status will hit us immediately after the bubble pops, I suspect that from that point forward we will continue to see the
quality of life decline substantially for many decades to come..
And the reason for that is a lack of internal competition between numerous producers of consumer goods in the US. We have nothing to start with and
until we get our heads out of the sand and realize that the lack of domestic industrial competition is what is killing us, we won't prosper.
What we need to do NOW is impose EXTREMELY high tariffs on ALL foreign goods that are saturating the market today and creating an artificial-demand
bubble that is crippling wages, and will eventually force the bankruptcy of the US. And when the bubble pops(And it hasn't yet) it will be disastrous
for many years to come.
Once we impose these tariffs on foreign goods then we can lower the income tax to a manageable rate, foster competitive production in the US, which
will raise our wages, and as long as production and wages keep up with demand and vice versa, we should continue to experience growth at a reasonable
rate. Tax it to the point it becomes cheaper to produce it here again and you will spur massive industry booms that will be SUSTAINABLE and less
wasteful of resources.
The problem with American economics is that they confuse profits with stability and free trade with free market. Free trade is what caused our current
trade deficit, that along with massive foreign money creates a debt-liable economy fully exposed to any market disparity, and such creates its own as
well.
Profits and share values does not translate into economic stability. Often these two are created in bubbles and over time, as the speculative bubble
become greater and artificial demand is made more pervasive, the economy then exposes itself to devaluations of currency and massive joblessness. We
need to set aside the bubble economy and see it for what it is, Anti-free-market.
A sustainable economy depends on internal production with massive competition fostering demand, as long as wages keep up with production, there will
always be demand. And a government that enforces it's regional, and national monopoly laws(anti-trust laws) will be fostering a competitive
environment needed to perpetuate prosperity in a free market system. In these conditions foreign capital investments are good because they finance
internal competitive production and the investors see consistent returns.
When the market shoots up %900 in just a matter of months you can bet that it is sustained by a speculative bubble and it won't last. The larger the
bubble the more pain is caused when it pops. This is not sound economics, and yet since the 1970s this is the path we have pursued to our detriment.
The bubble inflating right now is on the verge of popping, and it is the MOTHER of all Bubbles and will cause the downfall of this nation as a
national player on the economic stage. We will see far more oppressive government in the near future and this will continue for a very long time to
come. Such is the difference between a 1930s depression and the Great Decline we will see permeate in our lifetime, but not the end.
[edit on 19-12-2008 by projectvxn]
