Has the US economy passed the point of no return?

reply to post by David9176


With Obamas infrastructure plan, what happens when everything is "rebuilt?" Do all of those people go back into the unemployment line? In the meantime our debt continues to rise.



I wonder the same thing: after we change all the light bulbs and pave all the roads, well then what? and where done the money to do this come from. We will not be producing anything to sell so are we just borrowing more from our allies. And how long will our allies be allies? Point is Asia is catching on to the fact that they have loaned us billions and we wasted it away and grew fatter and fatter while most of them live in what we would consider poverty. They are catching on and they aint to happy about it. At what point will they want to collect and what do we have? Um let’s see. Our Gold which does not cover our debt or well we have our land? Oh that’s it I guess they will just come on over and occupy our (I mean their) land. Seems sort of far fetched huh? Well I do not think so. When things get so bad in Asia they will come collecting in one way or another. Funny I have tried to explain to many people close to me that we better prepare and most look at me like I am nuts. They do not see it yet and wont until they lose their job or our state runs out of unemployment money or the food stamp program goes belly up. Oh well what can we do? Just prepare for our families and let others do what they want I guess.

I get a few of those looks when I say that I've heard sane people declare that the dollar will be useless next year. But step by step everything is indeed falling into place. Months ago it was kick started by Hurricane Ike and the gasoline shortage in the South East in Tennessee, Alabama, and Georgia especially suffered major disruptions in revenue from gas taxes. Then it just so happened that the credit crunch came to a head at the exact same time. From there it's spiraled out of control so the answer to your question is yes. *But I'm still not going back further than September 08... Take the time to read this bit "The Great American Reset"
newsroom-magazine.com...
It doesn't go into the causes and effects but it's a good read. I found it while trying to find a source documenting Tom Brokaw say that the president of GE was saying that we are going through a reset unlike anything ever ever ever. But I can't find a copy of that airing of Morning Joe.

[edit on 18-1-2009 by beaverg]

[edit on 18-1-2009 by beaverg]

Originally posted by texas thinker
... if America ever fell it would be from within, not from a foriegn enemy.

Unless a foriegn enemy were found to be in control of the government. Then a strike on the US government from within would actually be self defense from a foriegn invader.

I sincerely believe that the US economy passed the point of no return long before the first financial institutions made noises about it.

Just think, things would have to be REALLY DIRE for a company like any of these to make such a statement. The slight whiff of trouble and shares plummet. Just look at Apple, their CEO sneezes and value drops.

I always find myself coming back to the car makers.

They were/are in desperate times. They're given billions of $ to keep them afloat.
But they're being kept afloat to make cars that no one is buying.
There are millions of cars globally waiting to be sold, and no one is buying.

You don't have to be a qualified accountant to know that this is all BS, it's an attempt by the government to stage a collapse rather than allow a sudden release of 3 million people into unemployment and state welfare.
The businesses are no longer viable. No customers means no sale, no sale means no production, no production means company dies.

We'll see one go under, then a couple months later another, then the third will face the slightly better chance of being a sole supplier on a limited basis.
There's barely room or a market for one of these three companies.

I am of the firm belief that all of our governments are holding back on how desperate this situation is to avoid mass panic, a run on all the banks, and a complete and immediate collapse. It is in their interest to continue to say there's hope it'll be ok, while they stagger the collapse over time to acclimatize the population to the new way of life that this will bring.

You cannot just print money and inject it into the system whenever you like to shore up another sector, these things have been controlled carefully throughout history for a reason. There has to be a carefully maintained balance.
Right now the balance has been thrown off completely, and it continues to be thrown off further every time they release another billion into another sector to be eaten up by an increasingly bloated and increasingly hungry machine.

My guess is that over the next week or two, another few massive financial businesses will report their struggle.
Then a few more states will join California.
Within a couple of months, one of the "big three" will be allowed to collapse. Then another.
I think that by June everyone will be in no doubt about how severe this problem is, and I am almost certain the the American government will be forced to take a massive and dramatic step; the restructuring of the entire financial system.

Of course, you have other factors in there too. If there is another attack on the USA as some are predicting, this will change the game completely.

Of course, everything could be fine too. At least, that's what the government says

reply to post by beaverg

I get a few of those looks when I say that I've heard sane people declare that the dollar will be useless next year.

When the bailout madness started, when everything, for the most part, seemed to be going ok, I started to speak up about it at work. I'd get those looks...the ones that say "PFFF" or "yeah sure..whatever you say buddy."

I quit talking about it after awhile. It got to the point where it was.."Oh no, don't get him started again." So i quit. To hell with them....although recently i did have to get out a "I told you so."

I don't think i'm being irrational about the whole thing. It makes sense, all the signs are there.

reply to post by In nothing we trust


I agree, one Asian leader once said and I cannot even remember his name so this isn’t an exact quote, " I will not have to worry about destroying America, America will destroy its self from within". I think this was stated sometime around Pearl Harbor around the time the comment of waking a sleeping giant I do not have time to look it up know. Anyway the point is I agree with this theory.

From what I am seeing over just the past two days (or just really noticing) is not good at all. I work for an industrial service company (boilers&steam systems) and travel to different sites performing technical work. December through Febuary is normally so busy that we can't keep up with demand without tons of OT and a little luck.
We have a mechanical crew of about 70 people. My foreman told me today via phone that almost 40 of these guys were off today, no work.
I have been with my company for almost ten years and have never seen a slowdown this time year even remotely close to this.
The plant I am currently at in Oklahoma is the lifeline of a really small town. Have been coming here for years and this plant is always running flat out. Not so this time, only running about 50% capacity and plant employees are on a strict no OT rule. Reducing inventory over the next few months is the official memo. This plant is a major supplier to the pharmacutical industry and also processed food products. Supposed to be a "recession proof" product according to some.
Just looks really scary from my point of view.

reply to post by texas thinker


I know what you mean. At this time of the year at my work, (i'm a printer), we are usually insanely busy with lots of overtime. This happens because of the slowdown at the end of the year...companies get their inventories down as low as possible to avoid the taxes.

But this year it is different. We have work but nothing compared to what we had the year prior. No overtime. I talked to the owner today and he said that it didn't look good. A decent chunk of our business goes to the auto industry. Our work from them has dwindled to very little. Plus people are buying fewer things in all areas...so that means demand is down for product which means work is slowing for me.

I'm happy i'm still working. I hope we still get the work coming in...i just have the feeling that it won't.

Im 23, just graduated college with a BA in Journalism, and I've been 6 months without a freaking job. I'm starting to wonder if it was worth borrowing all of the money I took out to get an education.

What good is a college degree if you can't use it?

The economy is bad, but for my field it's even worse. Newspapers are cutting back, as well as other media outlets, and it's really hard for me to get my foot in the door anywhere.

I think I'll just go play music instead, maybe I can make more on the street with a cup and a guitar than working at a newspaper anyways.

Point of no return?

We came back from the Great Depression. So unless things actually get worse than that, I think it reasonable to assume we'll come out the other end.

I to am actually starting to get scared for my family, here is my story. BTW I'm from Canada so I was always of the mindset that even though we need the US badly to survive that our banking system and economy would survive.

I've worked in the sawmill industry since I was 17, always had a steady job and a way to support my family. Three years ago I became ill with what doctors could only classify as Cronic Vertigo. As a result I was no longer able to work at any sawmill, and seeing as I went to work straight out of highschool, I had no education or training for a desk job. I wasn't to worried though because I alway had my Disability cheques to fall back on.

Well not any longer, about 8 months ago I recieved news that because of my "Illness" not being able to be properly diagnosed they were cutting me off. Well I didn't much like it, but upon speaking with lawyers I found the insurance company was well within thier righst to refuse to pay me. So no harm no foul, I figured I will apply for OSAP and get the schooling I needed for a desk job. (OSAP is government funding for college and university, in case people were wondering).

So here I am now in school in my first year of buissness accounting and things are going along smoothly. Then the credit crisis breaks out. I notice people are no longer buying whatever they want and only buying what they need. Still I was not worried, Me and my family have no money, just enough to get by while I am attending school. But then the rumors and hints start coming out. The government is ging to restrict people who can or cannot apply for government funding for schooling. And then there is also the rumors starting to spread that should the US economy completley fail that no governmnet funding will be available for students, perhaps any funding at all, including welfare, social assistance.

So now im sitting here starting to ponder what eactly I'm going to do. I can't work manual labour jobs do to the fact of my illness, not to mention I now have 4 herniated disks in my back that the doctors refuse to operate on. I'm sitting here wondering what the hell I'm going to do come May should the American economy go belly up. I can't work and have no proper education for any other kind of job. I have a wife and 2 kids to support. Right now my only saving grace is the fact my parents live out in the country with about 200 acres of land, good fertile growing land.

I have spoken to my parents and after beating it into them they have come to realise how bad things actually are, and they have begun to plan accordingly.

What really surprises me here, is the general lack of knowledge up here in Canada. You try speaking to peple here and they all laugh they say, "Well thats the States problem, what should we care if they go belly up, we will just sell our products to other countries, we will be fine stop worrying you nut job." I'm serious about this to, noone here seems to be able to grasp just how dependant our country is on the U.S. In my personal opinion, should the American economy completley crash say May 12 of this year (just throwing out a date), then I personally give Canada about 4-6 weeks before we are completley screwed right behind you guys. And thas not your fault, that would be ours. We let ourselves become so dependant on the US, that we canot hope to survive this crisis.

Anyway, thats just my 2c

reply to post by Trayen11


That is a sad sad story, I am sorry to hear of your troubles. I just read that many people think that Canada is safe from all this mess, but in fact their national debt isnt any better than the United States. This is a global issue that will effect people all over the world. Hang in there buddy and God bless.