Economic Depression Looms

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catholicknight

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You think 2008 was a bad year for the stock market and the economy? You haven’t seen anything yet! In Europe they’re already calling this economic recession a depression, and those who got their predictions right list time around (which aren’t many), are predicting something much worse this year, which will amount to the worst economic depression in American history…

youtube.com/watch?v=sivYUe6_1cY

humanevents.com/article.php?id=32152

youtube.com/watch?v=w_UprqluSj0

Okay, so here’s the scenario. There is going to be a commercial real estate collapse in late 2009 that will dwarf the sub-prime mortgage collapse of September 2008. In other words, the worst is yet to come. The market is going to completely collapse – like nothing we’ve ever seen before.

There may be an initial panic that results from this, possibly producing a run on the banks. This may force banks to close their doors for an extended period of time, making it impossible to retrieve cash. I can’t imagine this lasting longer than a few weeks at the most, but then who knows?

After that America will settle in to an economic depression worse than the Great Depression of the 1930s. By Christmas 2009 the unemployment rate will be well over 10%. By Christmas 2010 we can expect an unemployment rate of around 20%. (Yes, I’m serious.) But if that wasn’t bad enough, the worst is yet to come.

Sometime in late 2010 to early 2011 the United States will lose it’s AAA credit rating. We will begin to see signs of hyper-inflation, as stimulus cash floods the market with more U.S. dollars than have ever existed in history, causing the value of those dollars to plummet. At around the same time we can expect the United States federal government to begin seizing all private gold assets as it did in the 1930s and 1860s.

What we’re talking about here is a total and complete economic meltdown of the United States of America that has been about 50 years in the making. It will be like nothing we’ve ever seen, and not even anything like what our grandparents saw in the Great Depression. It’s going to be worse - much worse. Crime will increase like nothing we’ve ever seen before. Kidnappings for ransom will be a regular occurrence in America, just as it is in some third-world nations. Home invasions will be on the rise. Street muggings and identity theft will sky rocket. New York City will begin to look a lot like Mexico City.

After that things start to get a little sketchy. We’ll start to see serious political ramifications to these economic events. The 2010 election is up for grabs. Democrats will be the big losers, but that doesn’t mean Republicans will be big winners. We could see the rise of a third party or random independent candidates. Likewise, some states will begin to seriously consider the idea of secession, and by the 2012 election that may actually happen. The United States could possibly be divided into multiple smaller countries.

Historically speaking, one thing that always seems to happen when nations get into trouble like this is war. It’s the tendency of politicians to try to divert attention away from their massive mistakes by creating an even more massive mistake – WAR! I’m not predicting war mind you, I’m just saying this is a recurring theme we see throughout history when nations get into the kind of trouble we’re about to get into. So that remains a distinct possibility for the near future.

So now that you know the future, what should you do about it? The answer is simple. PRAY! Pray that God will use this horrible catastrophe for some kind of greater good, and that he will meet your family’s needs throughout it all.

As for what you should do to prepare, I don’t think you need me to tell you that. Just assume that everything I’ve written here is the gospel truth. Just assume it’s all going to happen the way I said. Now, what do you need to do to get ready? THAT’S what you should do!
 
Well considering everything FDR did to deepen the depression, Obama is now doing the same thing so I am not surprised one bit. Thankfully, I get my economic news from Peter Schiff and he’s been predicting this for a while now.

Look at Zimbabwe. We currently practice the same policies they did. I believe they’ve had to shave 0’s off of their currency nine times now.

My suggestion to everyone would be to stock up on food, water and ammo. My family currently has enough food for an army, we just need more water.
 
There are two places you won’t want to be after this comes down - the bank and the grocery store. Both will be crowded with frightened people, and both will be prime targets for predators of every sort. Stock up on what you need to get through at least a month without having to go to either one. Then prepare for the long haul of double digit unemployment coupled with double digit inflation.

PS - Peter Schiff is a great resource. So is Gerald Celente. Anybody who wants to know what we’re talking about, just do a YouTube search on either of those two names. You’ll be glad you did.
 
Given what Obama is doing in the light of history, a reasonable person could conclude that some very nasty things might be on the way.
 
If Peter Schiff is correct, we are in for another, and even worse, great depression. I doubt that there is anyone alive today who recalls growing up in the 1930’s, which is really what it takes to finally bring on the conditions which cause history to repeat itself. Lack of memory: lack of personal memory, lack of corporate memory.

It will be much worse because for generations people have assumed that it can never happen again. But it can. And the actions the government is taking will make it worse. It is also a social danger of the highest order, because a great many people, not having seen the inevitable storm clouds forming, will look for someone to blame when the storm comes crashing in. No one will blame themselves for living above their means, for spending down all the equity in their homes, for negative savings. They will look for someone else to blame. Who will it be?

Add to this the fact that the underlying fabric of society is already disintegrating: Out of wedlock births are at 40%, divorce at 50%, and there’s little in the way of cultural cohesion or family cohesion to help avert disaster.
 
Not only do we have many generations who believe “It couldn’t happen again,” but we live in a society where we are so dependent on others. How many of us grow our own food?
 
We all know we couldn’t continue like we were going (don’t we?)

The filth and sin!

The Blessed Virgin Mary has been coming and warning us for years. Popes have too. Pope Leo XIII penned the Saint Michael Prayer after having overheard a conversation where Satan was granted a century (or period of time) to ruin the Church. God granted it, and Satan chose the 20th Century:

michaeljournal.org/visionleo.asp

Pope Pius X is said to have died of a broken heart-because of what he saw watching our society! <-And he died in 1914!!! Can you imagine what he would think today?

Archbishop Fulton Sheen gave us lessons on how to conduct ourselves. Father John Corapi is telling us now (check his video’s on youtube if you haven’t: youtube.com/user/FatherCorapi)

Like Pope John Paul II (The Great) said, “Be not afraid!”

As we wait in joyful hope. Remain “Joyful.”
+Peace Be With You.
 
Tinfoil hats! Get your tinfoil hats here! Prevents government mind control 100%. Buy now and get volume discounts! 😃

Sorry, guys. I’m not biting. We’ve got a serious problem going on, but it need not be a calamity. Our problems are longer term by a long shot than you predict.

Or is this all just the latest NRA advertising campaign??..
 
Here in Michigan we have already had the depression begin. If our leaders could of been like the other states and brought other employemnt here to base the econemy on.
 
perfectpeach said:
Not only do we have many generations who believe “It couldn’t happen again,” but we live in a society where we are so dependent on others. How many of us grow our own food?
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The scarier question is “how many know how to grow their own food?”. Not just grow it, but preserve and store it? Hunt and prepare their own meat?

Most of those in our generation have no survival skills at all.
 
manualman said:
Tinfoil hats! Get your tinfoil hats here! Prevents government mind control 100%. Buy now and get volume discounts! 😃

Sorry, guys. I’m not biting. We’ve got a serious problem going on, but it need not be a calamity. Our problems are longer term by a long shot than you predict.

Or is this all just the latest NRA advertising campaign??..
Click to expand...
Nothing is certain. But some very serious investment advisors and economists have been giving us many warnings. And it is precisely the longer term that worries me.

In the roaring 20’s no one thought that economic disaster could strike, either. Calvin Coolidge was president, and enormously popular, and business was booming. When it came time for re-election, Coolidge declined to run. His wife commented to another family member something to the effect that “papa thinks there is a depression coming.” He wanted to be out of office when that happened.

The stock bubble has burst, making many people much poorer in real terms by decimating the value of the pension plans and investments. Now the housing bubble is deflating, and soon the commercial real estate bubble will deflate. Our national savings rate is near to zero or in negative numbers.

The government is so worried about deflation because of the previous great depression, that it will expand the money supply to outrageous levels just to prevent deflation. In the process it willl make inflation–perhaps hyperinflation–increasingly likely. Then, those who may already have seen their investments become worth less, will also find their savings accounts becoming worth less because of the declining value of the dollar. So we get our 401K’s wiped out as well as our savings accounts. A double whammy.

I’m no economist, and this scenario could be entirely wrong. I sincerely hope it is, because there’s not much any of us can do individually to affect it. Any severe economic depression would be made worse in societal terms by our already tenuous social fabric and disintegrating family structures. And by the fact that millions of us have become so dependent on social safety nets that there is no telling what my occur when those safety nets fail.

Other than that, I’m just a cockeyed optimist.
 
…
The government is so worried about deflation because of the previous great depression, that it will expand the money supply to outrageous levels just to prevent deflation. In the process it willl make inflation–perhaps hyperinflation–increasingly likely…
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Just some FYI’s : In times of deflation debt becomes something you default on. Since you could lose your home through default, and then buy it back cheaper, that is a good deal. In reverse to prevent default you have to pay $200,000 for a $150,000 home. So that is the problem.

Now the hyperinflation is also a real problem if it occurs. The game here is 90+% of all money is in contracts (as mortgages, loans, credit cards, annuities, social security, etc) so when the loans are dropping as when old loans are paid or defaulted and new loan are fewer than the old loans were, money supply is shrinking. This occurs during most recessions. In 2008 money supply was shrinking so the US is replacing the gap with government money thus a huge future debt. The paying for this debt is the future problem.
 
Agree in part. Respectfully dissent in part.

Having lived through recessions, I am disinclined to believe we’re headed for anything like the Great Depression, let alone anything worse. The market is timorously up. Unemployment is slowing down. Inflation is essentially flat. One thing my grandfather told me was this: While, in the depression, 20% or so were unemployed, it has to be remembered that 80% or so were employed. Right now, we’re at 9% unemployment, headed for 10%. But 91% are employed. In my own lifetime, I have seen worse.

People are hesitant to invest, and that’s a fact. But there are enormous sums of money sitting on the sidelines waiting to invest. Ten trillion was the last number I heard. The danger is that they won’t do it at all. But the likelihood is that they will. People are strapped because they’re trying to reduce debt. Baby boomers are worrying about the retirement they took for granted, and don’t want to spend money right now either. But at a point, they’ll feel less burdened by all of that and start investing and spending again.

Things look differently in different places. I have no doubt that conditions in what is sometimes referred to as the “Rust Belt”, in California and in Florida are exceedingly grim looking. But that’s not true everywhere at all. Nor, in other places, did the bubble get as big as it did in those places. Around here, for example, I can’t see that there is really much change in home prices or in buying…except with the McMansions, and it was stupid of people to build them in the first place. They were never very saleable, because people who have the money for a “dream house” usually want to build their own to serve their own idiosyncrasies.

The big danger, it seems to me, is not the economy itself, but the cure. Flooding the economy with printed greenbacks does promise future inflation, and there’s no mystery to that. The government should stop right now, but it won’t. At present, I’m not so sure economic activity isn’t being retarded by the government itself. I suspect a substantial portion of the “sideline cash” is waiting for super-high bond rates sometime in 2010 or 2011. That, of all notions, needs to be squelched. And it will only happen if the government stops this profligate spending.

Obama’s “pay as you go” cannot be seriously intended. Nevertheless, I believe tax increases are seriously intended, and well beyond simple expiration of the Bush tax cuts. I do believe that will have a dampening effect on the economy, as it will discourage investment.

Something else I learned in the recessions I have lived through. The extreme prognosticators are always wrong. But when it comes to predicting howling inflation in about two years, I don’t see how they could be wrong.
 
i also have heard that there will be a commercial real estate collapse at the end of this year.
i moved to a relatively small town 6 months ago and since that time i have seen stores inside the mall close as well as restaurants in town.
yet, i know of people who are quitting their jobs!! why would you quit your job in an economy like this?
 
Ridgerunner said:
Agree in part. Respectfully dissent in part.

Having lived through recessions, I am disinclined to believe we’re headed for anything like the Great Depression, let alone anything worse. The market is timorously up. Unemployment is slowing down. Inflation is essentially flat. One thing my grandfather told me was this: While, in the depression, 20% or so were unemployed, it has to be remembered that 80% or so were employed. Right now, we’re at 9% unemployment, headed for 10%. But 91% are employed. In my own lifetime, I have seen worse.

People are hesitant to invest, and that’s a fact. But there are enormous sums of money sitting on the sidelines waiting to invest. Ten trillion was the last number I heard. The danger is that they won’t do it at all. But the likelihood is that they will. People are strapped because they’re trying to reduce debt. Baby boomers are worrying about the retirement they took for granted, and don’t want to spend money right now either. But at a point, they’ll feel less burdened by all of that and start investing and spending again.

Things look differently in different places. I have no doubt that conditions in what is sometimes referred to as the “Rust Belt”, in California and in Florida are exceedingly grim looking. But that’s not true everywhere at all. Nor, in other places, did the bubble get as big as it did in those places. Around here, for example, I can’t see that there is really much change in home prices or in buying…except with the McMansions, and it was stupid of people to build them in the first place. They were never very saleable, because people who have the money for a “dream house” usually want to build their own to serve their own idiosyncrasies.

The big danger, it seems to me, is not the economy itself, but the cure. Flooding the economy with printed greenbacks does promise future inflation, and there’s no mystery to that. The government should stop right now, but it won’t. At present, I’m not so sure economic activity isn’t being retarded by the government itself. I suspect a substantial portion of the “sideline cash” is waiting for super-high bond rates sometime in 2010 or 2011. That, of all notions, needs to be squelched. And it will only happen if the government stops this profligate spending.

Obama’s “pay as you go” cannot be seriously intended. Nevertheless, I believe tax increases are seriously intended, and well beyond simple expiration of the Bush tax cuts. I do believe that will have a dampening effect on the economy, as it will discourage investment.

Something else I learned in the recessions I have lived through. The extreme prognosticators are always wrong. But when it comes to predicting howling inflation in about two years, I don’t see how they could be wrong.
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I appreciate your thoughts on this; I’m hoping that the worst predictions will not come to pass. As to inflation, I worry that it will unduly penalize those who did not participate in debt engorgement. For their thrift, they will reap less buying power.
 
JimG said:
I appreciate your thoughts on this; I’m hoping that the worst predictions will not come to pass. As to inflation, I worry that it will unduly penalize those who did not participate in debt engorgement. For their thrift, they will reap less buying power.
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There is not the least doubt that Americans gorged up on debt in order to buy conumer goods (houses included). Having done so, and having hit the wall, people are now trying to reduce that burden, and it’s a tough sled, because debt reduction is paid with after-tax dollars.

Then, the government steps in and loads everybody up with debt again. By my own inexpert calculations, it’s about $130,000 per family. But that’s before Kennedycare, so I might be underestimating significantly.
 
masondoggy said:
The scarier question is “how many know how to grow their own food?”. Not just grow it, but preserve and store it? Hunt and prepare their own meat?

Most of those in our generation have no survival skills at all.
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We rednecks down here in Texas know how, and are doing just that. We belong to the NRA.

We are prepared.

Jerky, man, Jerky! Although I use the Excalibur for that. Growing and preserving everything out of the garden too.

Our NRA doesn’t pass out foil caps in Texas like the NRA in Illinois.

God Bless America.
-Dawn
 
DawnInTexas said:
We rednecks down here in Texas know how, and are doing just that. We belong to the NRA.

We are prepared.

Jerky, man, Jerky! Although I use the Excalibur for that. Growing and preserving everything out of the garden too.

Our NRA doesn’t pass out foil caps in Texas like the NRA in Illinois.

God Bless America.
-Dawn
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C’mon Dawn! There are rednecks here in the Ozarks too! Share the credit a little, huh? You all came from here to start with, anyway.
 
2012, huh? 😉

I think that the world will eventually enter another Dark Ages (we’re due for another one - they cycle every 500-1000 years), but later in the 21st or early 22nd Century. Why? Because the Earth’s economically viable resources are depleting (forget the Space Elevator - I don’t think even that will be viable until solar radiation and lack of gravity can be solved, not to mention such a project would involve more than, or the entire GDP of half the nations on Earth), and things are only going to get more expensive. This happened to the Middle East in around 1500BC to 1250BC (prices of tin skyrocketed because all known resources were depleted, which made farming more expensive, and grain was their currency of the day). Egypt, Greece, Babylon, and the Hittites all waned during that period. As always seems to happen during a Dark Ages, there’s one group of people (Israel in this case) that “take advantage” of the situation and grow, retaining some of the knowledge and technology.
 
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