Is the US in a Depression?

Discussion in 'Economy' started by georgephillip, Apr 27, 2011.

  1. georgephillip
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    georgephillip Gold Member Supporting Member

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    Not according to a Wiki definition relating to any economic downturn where real GDP declines by more than 10% or a recession that lasts longer than two years.

    There is an argument that when the Fed buys $600 billion worth of US Treasuries (QE2) it is effectively sending investors into riskier assets like stocks and commodities.

    "Is there an element of class warfare in the policy?"

    "You bet there is. It's a direct subsidy to the investment class while workers face higher prices on everything from gasoline to corn flakes."

    "While rising headline inflation (gas and food) is painful for workers and people on fixed income, it actually intensifies the downturn by diverting money from other areas of consumption. So, discretionary spending falls and the economy begins to contract.

    "It's more proof that we're in a Depression."

    Author Mike Whitney makes the claim the US economy is essentially comatose, and the Fed has been QE-ing strings around its hands and feet to produce marionette movements; however, with no props or support system, "the economy would drop to its knees, gasp for air, and exipire. Dead."

    Mike Whitney: Hyperinflation? No Way

    How would things change if the US dollar loses its status as the global reserve currency?
     
  2. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    It will get ugly. Very ugly. That's how it will change.

    And it's something we should be seriously concerned about.
     
  3. LilOlLady
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    LilOlLady Gold Member

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    No, we are in a state of temporary stupidity. It will pass without too much being done about it.
     
  4. RachelMadcow
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    RachelMadcow BANNED

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    Yes we are depressed that democrats have stolen our grankids future and gave it to democrat interests calling it a stimulus plan.


    Poverty up
    Unemplyment high
    Foreclosures up
    Gitmo Open
    Gas prices up
    Democrat Lobbyists control washington
    Earmarks on every bill
    Illegal Libyan wars that cost 40 million per day borrowed from China
    More division than anytime since the civil war


    Of course we are depressed


    Democrats create ghettos



    and are right on track


    Bankrupting the country





    Democrats are scum
     
  5. matty
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    matty SUMbodyweedemOUT

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    It didn't get to be a pretentious global debate for nothing; the question being raised over and over is a fair indicator all the symptoms are present. The catchy phrase Great Recession saw notoriety for a bit.

    You can find design--purposeful and not--for classwarfare in many a venue all around us today and more avenues en route where that came from.--Oh that it were limited to places like here.:( Such a disaster is finally only a further ripening climate for creating yet more of the same divide--mother of all vicious circles.

    The dollar has already taken such a dive, to the detriment of us all, I hate to think of humbling it any further, lol, omg.
     
  6. Rozman
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    Rozman Gold Member Supporting Member

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    I agree it's not officially a Depression,but I bet a whole bunch of Americans are depressed and with good reason.I don't feel good about this country's future at all right now.The stock market is up but is that a false indicator,another bubble about to burst.If the market nose dives again it's all over folks.
     
  7. matty
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    matty SUMbodyweedemOUT

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    I've never known a case of Stupid to be temporary yet.
     
  8. matty
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    matty SUMbodyweedemOUT

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    That was while he was just ushering in Hu for a secret intimate White House dinner We were on a needtoknow basis about. Press said any details to the public were refused, lol!, that's fucking crazy, fucking sheep.
     
  9. matty
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    matty SUMbodyweedemOUT

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    9/10's of a Depression is, for all purposes a fucking depression by my count.--I think we passed there being any issue in this debate long back--(Who cares, are we still talking about this?).--Other falsies, those jobless numbers which take nothing into account of already forgotten wouldbe workers, unemployed and unnaccounted for, the count only takes into consideration those who've recently actively sought work/receiving unemployment, lol.
     
    Last edited: Apr 27, 2011
  10. georgephillip
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    georgephillip Gold Member Supporting Member

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    There seems to be a fairly broad consensus from one end of the political dial to the other that you are right. Whitney makes the case in his article that 1st Quarter GDP has been revised down to two percent and may be headed even lower.

    "Have you noticed that unemployment is stuck at 8.8 percent and underemployment at 16.2 percent with more people falling off the rolls and into abject poverty every day? Did you see that manufacturing is starting to slip and 'the production index, a key measure of state manufacturing conditions, fell from 24 to 8, indicating slower growth in output.'

    "Do you realize that the downturn in housing is getting more ferocious even after falling steadily for 5 years straight?

    "Have you considered the fact that the government and Fed have pumped trillions of dollars of monetary and fiscal stimulus into the financial system with just about nothing to show for it?

    "And, do you know why? Because we're in a Depression, that's why.

    Mike Whitney: Hyperinflation? No Way
     

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