Would another "Great Depression" happen?

Is there going to be another Great Depression? Im kinda worried about that & i dont want it to happen?

  • From all the talk i hear on the news, lots of people are starting to worry, and I am too. I really hate what Bush has done to this country!! Its all corrupt now, and i want to know if there is going to be another Depression like in the 1930's, or will the true hard working American people get out of this mess we got into?? please share your thoughts, and ease me on my worries about another depression coming through here

  • Answer:

    Theres a saying regarding this matter: A recession is when your neighbor is out of their job, a depression is when you are out of yours. Before I get into it here is a quote to help your answer: Martin Hennecke, of the Tyche Group says: “What investors need to understand, it’s not just about subprime and mortgages it’s really a big crisis of debt on all levels, even government debt hitting the West now and that’s very significant. In our view, it’s just getting started and it will really develop into a very, very severe recession maybe a real depression of the style we saw in 1929.” Since 1913 the government has been creating paper money out of thin air. . Our dollar is not backed by gold, it has no value. Inflation as we are seeing is the destruction of value. It is the governments program of increasing the supply of money, which devalues the currency and causes the prices to go up. An example is Germany during the 20th century, the runaway inflation came and the middle class was wiped out. The people are realizing our money is being made out of thin air. We permitted the politicians along with the central bankers to create unlimited money. The notion of a central bank is unconstitutional. Our founding fathers warned us against this. The Founders of this country, and a large majority of the American people up until the 1930s, disdained paper money, respected commodity money, and disapproved of a central bank’s monopoly control of money creation and interest rates. Ironically, it was the abuse of the gold standard, the Fed’s credit-creating habits of the 1920s, and its subsequent mischief in the 1930s, that not only gave us the Great Depression, but also prolonged it. Yet sound money was blamed for all the suffering. That’s why people hardly objected when Roosevelt and his statist friends confiscated gold and radically debased the currency, ushering in the age of worldwide fiat currencies with which the international economy struggles today. James Madison warned of “The pestilent effects of paper money,” as the Founders had vivid memories of the destructiveness of the Continental dollar. George Mason of Virginia said that he had a “Mortal hatred to paper money.” Constitutional Convention delegate Oliver Ellsworth from Connecticut thought the convention “A favorable moment to shut and bar the door against paper money.” This view of the evils of paper money was shared by almost all the delegates to the convention, and was the reason the Constitution limited congressional authority to deal with the issue and mandated that only gold and silver could be legal tender. Paper money was prohibited and no central bank was authorized. Printing money as they loosely say is illegal, you could call this counter fitting. The federal reserve created a system where banks only had to hold a fraction of reserves in order to create credit, this is another way the government debases currency. They print money, create credit, as it goes through the banking system we further expand the supply of money, diluting the value of money which is the inflation we see. This is an immoral and unjust tax on the people which many are unaware of. Greenspan has kept the trend of inflation together longer than anyone. The dollar has been accepted by the world banks as having the value of gold, this created a global bubble which is about to burst as the global economy is suffering along with us. Dealing with interest rates,Greenspan knew exactly what the consequences of his low interest rates would be. The trap was set to lure in unsuspecting borrowers who felt they could augment their stagnant wages by joining the housing gold rush. It was a great way to mask a deteriorating economy by expanding personal debt. Alan Greenspan, years before he became Federal Reserve Board Chairman in charge of flagrantly debasing the U.S. dollar, wrote about this connection between sound money, prosperity, and freedom. In his article “Gold and Economic Freedom” (The Objectivist, July 1966), Greenspan starts by saying: “An almost hysterical antagonism toward the gold standard is an issue that unites statists of all persuasions. They seem to sense…that gold and economic freedom are inseparable.” Further he states that: “Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth.” Astoundingly, Mr. Greenspan’s analysis of the 1929 market crash, and how the Fed precipitated the crisis, directly parallels current conditions we are experienced under his management of the Fed. Greenspan explains: “The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom.” And, “…By 1929 the speculative imbalances had become overwhelming and unmanageable by the Fed.” Greenspan concluded his article by stating: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” He explains that the “shabby secret” of the proponents of big government and paper money is that deficit spending is simply nothing more than a “scheme for the hidden confiscation of wealth.” Yet here we are today with a purely fiat monetary system, once managed almost exclusively by Alan Greenspan, who once so correctly denounced the Fed’s role in the Depression while recognizing the need for sound money. In 1955, Economist Victor Lebow wrote in the Journal of Retailing, "Our enormously productive economy demands that we make consumption a way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfaction, our ego satisfaction, in consumption. We need things consumed, burned up, replaced, and discarded at an ever-increasing rate. You have to look into other areas directly related to economics such as documentations of government dealings. Take the inflation for example, how could this be part of a plan from decades ago? After world war two the government worked to create this system with lobbyists. President Eisenhower's council of economic advisor's chairman said: "Our ultimate purpose is to produce more consumer goods." What? Not to provide health care, jobs, sustainability, but consumer goods, our ULTIMATE purpose? It's no wonder we have more crap than jobs, or opportunities or even hope. It's no wonder we only keep 1% of everything we consume in a year, we have to respond to the call of a plan designed for us. How would this plan be carried out in this day and age without inflation caused by the debasing of our currency... it wouldn't have. Two strategies used for this are: planned obsolescence and perceived obsolescence. Google it to learn more. Signs of this economic plan could be seen anywhere to the trained eye. During the tragedy of 9/11 Mr. Bush could have suggested a number of appropriate things like to pray, grieve, to hope or come together. Instead Bush said we should shop, SHOP! In every act, everywhere we turn there is programming telling us to add to the inflation in a desperate attempt to stop others from realizing the truth. Take a look around you. School tuition has risen 300% in some states in the last 5 years. Not only gas but food and daily essentials are rising as wages remain the same. More and more people can't afford health care. Our poor and lower class have increased dramatically, unemployment has risen its highest recently since Katrina. Veterans and elderlyI know have been forced out of their homes, admitted to senior developments because the government has gone after the little they have to survive on. The privitization of government, missing billions of tax dollars, the unconstitutional hiring of private military and spending for government spying on its citizens all contribute to this economic collapse caused by paper money devaluing our currency. If one person cannot prosper in a prosperous country then perhaps things are not what they seem. And we have much more than one person to take care of who faces financial crisis. People don't stamp a word like depression until it happens to them, but its spreading like wild fire and soon everyone will realize there really never is control just the illusion of control. Take walking or running for example: Walking or running would seem like an every day act, possibly a human triumph in the animal kingdom. But walking is actually a controlled fall in which you manipulate gravity and place your next foot forward to create balance and stability. It isn't something independent in itself, it is a controlled state of falling and at times we may not always be able to hold that state. In fact age wears us thin in this task. The truth is we have already spun out of control and now we are crashing down. Go invest your money in foreign currency and make sure you have friends outside the states.

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Other answers

Oh, yes! Isn't it horrible how corrupt the government has gotten now that the Clintons are gone??

Carrie

Bush did nothing to hurt the country or the economy. He saved our butts before and he will do it again. Now of course we will have a problem with Congress, but if they know whats good for them, they will ok the money. I will put the money back in the economy.

mtchndjnmtch

We will go through a time period of adjustment...but we will rebound. When we are on the other side, we may slow down and realize we do not have to have everything in sight. Many people have views but the few economist that talk about the real estate bubble...blah blah....well real estate markets are very individual in nature and not all real estate markets are in a crisis....but even the crisis areas will rebound. My estimate is 2-3 yrs of adjustment. It is not all Pres. Bush's fault we have all been guilty of overspending and overpaying....the economy had to adjust...it was out of control in some areas.

Tres7

The news people have to have something to chatter about and as they know nothing about economics, this seems like a good horror story to tell. IF the government keeps its nose out of things, unlike the '20s and '30s, the country (and world) will go through the rough correction and be fine. If they insist on tinkering with things they do NOT understand even remotely, we will have a lot more trouble.

heyteach

The huge debt bubble, which has artificially propped up the stock market since the turn of the millennium, could cause a new great depression according to one expert, who also predicts that investors will flock to buy gold as the dollar continues to plummet. Financial analysts have been drawing comparisons between this week's chaos and the October 19 1987 crash, known as Black Monday, when the Dow Jones Industrial Average dropped by over 22 per cent and markets sunk worldwide. But Vancouver-based investment adviser Ian Gordon has gone a step further, seeing clear parallels between current events and those that foreshadowed the 1929 crash and ensuing depression. "We're really seeing a mirror image of what happened following the [19]29 peak in equity prices in the United States, and the subsequent crash in equities," Gordon told the Georgia Straight . We're now seeing the collapse of the debt bubble that was built into the world economies, but principally in the United States." Gordon levels the blame at Alan Greenspan for creating a huge bubble by injecting too much money into the system in an attempt to offset the "economic winter" that inevitably arrives as part of the boom and bust cycle of the fiat money system, arguing that the realistic peak in the stock market occurred in 2000. Gordon predicts that the "economic winter" will last another 7 or 8 years and that the worst is yet to come, with the continued meltdown of the dollar causing people to flock to the safe haven of gold. "As this whole collapse in paper assets begins to unfold, causing tremendous strain on the banking system, we will see a tremendous rush to gold, to own gold," he said. "But I think the worst is definitely in front of us, and not behind us." Gordon slammed the huge 75 points rate cut as ineffective, arguing that neither banks or consumers want to engage because of the crippling problems of their existing debts. The analyst's conclusions are in line with those of Paul Craig Roberts, the father of Reaganomics, who on Tuesday warned that the mess could result in the dollar losing its status as the world reserve currency. Roberts also cautioned that the rush to diversify into gold could make people's assets a target for government confiscation, as happened in 1933, four years after the great depression.

yijen777

believe me no one is looking forward to this depression. What I have started doing in saving money. I have cut out most of my spending and I only buy what I really have to. It is impossible at this point to stop the depression.

sweets s

it sounds that way but the powers that be would not allow a depression like the Great Depression.

worldstiti

WASHINGTON - A study by two nonprofit journalism organizations found that President Bush and top administration officials issued hundreds of false statements about the national security threat from Iraq in the two years following the 2001 terrorist attacks. The study concluded that the statements "were part of an orchestrated campaign that effectively galvanized public opinion and, in the process, led the nation to war under decidedly false pretenses." The study was posted Tuesday on the Web site of the Center for Public Integrity, which worked with the Fund for Independence in Journalism. White House spokesman Scott Stanzel did not comment on the merits of the study Tuesday night but reiterated the administration's position that the world community viewed Iraq's leader, Saddam Hussein, as a threat. "The actions taken in 2003 were based on the collective judgment of intelligence agencies around the world," Stanzel said. The study counted 935 false statements in the two-year period. It found that in speeches, briefings, interviews and other venues, Bush and administration officials stated unequivocally on at least 532 occasions that Iraq had weapons of mass destruction or was trying to produce or obtain them or had links to al-Qaida or both. "It is now beyond dispute that Iraq did not possess any weapons of mass destruction or have meaningful ties to al-Qaida," according to Charles Lewis and Mark Reading-Smith of the Fund for Independence in Journalism staff members, writing an overview of the study. "In short, the Bush administration led the nation to war on the basis of erroneous information that it methodically propagated and that culminated in military action against Iraq on March 19, 2003." Named in the study along with Bush were top officials of the administration during the period studied: Vice President Dick Cheney, national security adviser Condoleezza Rice, Defense Secretary Donald H. Rumsfeld, Secretary of State Colin Powell, Deputy Defense Secretary Paul Wolfowitz and White House press secretaries Ari Fleischer and Scott McClellan. Bush led with 259 false statements, 231 about weapons of mass destruction in Iraq and 28 about Iraq's links to al-Qaida, the study found. That was second only to Powell's 244 false statements about weapons of mass destruction in Iraq and 10 about Iraq and al-Qaida. The center said the study was based on a database created with public statements over the two years beginning on Sept. 11, 2001, and information from more than 25 government reports, books, articles, speeches and interviews. "The cumulative effect of these false statements — amplified by thousands of news stories and broadcasts — was massive, with the media coverage creating an almost impenetrable din for several critical months in the run-up to war," the study concluded. "Some journalists — indeed, even some entire news organizations — have since acknowledged that their coverage during those prewar months was far too deferential and uncritical. These mea culpas notwithstanding, much of the wall-to-wall media coverage provided additional, 'independent' validation of the Bush administration's false statements about Iraq," it said. Thank you Bush for getting our sweet country into this. George Bush... NEVER CALL YOUR SELF AN AMERICAN

American16

clinton is over-credited with the economy during his time. It just happened to be that technology was taking off at the time with the web (which Al Gore did not invent btw). He caught a good wave and a good term. He was a good president, but he should not be attributed for what he did not do. Also, with Bush, he's guilty over the over spending and the deficit. He doesn't know math. What you have is what you spend, but he thinks the government has an infinite credit card. He should have attended his Economics classes. Anyways, the real estate market, that will be adjusted by the free market. Also, the economy is based on people's expectations. The worst that people expect, that comes into fruition. That's how the economy works - via people's expectations. So what you hear in the media is usually bad stuff, so we tend to hear overinflated bad news, which can lead to a worse economy.

techtipper

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