Friday, June 10, 2011

The Great Depression Version 2.0

The only way you can identify a Depression is over time. Looking at small time-segments of the Great Depression reveals a series of "recessions" and upticks. It is only by looking at the entire time span of 1929 to 1940 that you can label it a Depression.

We are now approaching a time frame to quit lying to ourselves about this being "The Great Recession" - that we are theoretically out of - and admit this is The Great Depression Version 2.0.

While it's true corporations are showing great profits, and the criminals on Wall Street and the banksters are raking in fantastic bonuses - it is also true that those outside that bubble are going down in flames. In the words of WalMart's CEO, "Our core customers are running out of money."

Those "core customers" are the bulk of America's consumers. And they are the ones that drive 70% of the American economy. If you want a vibrant economy, you better make sure they have money in their pockets.

But they don't. And the reason why is because those who can control prices - oil comes to mind as one category - are doing so without a single care about destroying their own consumer base. Was there really anyone out there who didn't expect to see things collapse when gas hit $4.00 per gallon?

But the Wahhabi rulers of Saudi Arabia need $7,000 annually per subject to buy their support and stay in power. So we see that going under $80 a barrel is not going to happen irrespective of supply and demand. Every oil producing country is in a similar situation - they must keep oil priced high and independent of actual market forces to stay afloat.

The answer is what none of the people on Wall Street want to hear: You've got to quit sending US dollars out to other countries and start dropping that money into the hands of Americans. That means out of Libya, out of Yemen, "No," we aren't going to bail out Greece . . . you know the list.

And you've got to stop allowing the immigration situation to continue to fester with what amounts to a near-open border with Mexico. The money no longer exists to continue to feed the welfare system so many of them use.

What happens when you make that cut? Well, I don't think you're going to see peaceful soup lines forming in Harlem. The reality is that our welfare system was designed in the mid-60s to buy domestic peace by supporting the lowest economic category - and thus keep that category from burning down the cities.

So here we are - The Great Depression Version 2.0. Only this time there won't be a peaceful acceptance of a collapse of the economy.

So banksters, Wall Street criminals, all of the rest who have destroyed our economy for their personal enrichment - there will soon be a day when you will be terrified to walk down Fifth Avenue because of wilding gangs striking in an instant and disappearing into the night. There will be no sympathy for you. People will pass your lifeless body and say they are glad to see you dead.

Yes, welcome to The Great Depression Version 2.0.

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