The deflationary depression of the 1930s took over 10 years to unfold it's misery, and it was only the enormous expenditure of WWII, and all the jobs it created, that turned the economy around. After the war, the 1950s again saw the economy flounder, only to be revived by massive public works programs like the Interstate Highway System and yet another war in Korea. This time we are again in a massive deflationary depression.
Jobs continue to decline and the work force is shrinking.
Housing prices continue to fall, destroying equity as they do so.
40% of mortgage owners, (not homeowners), are now "underwater."
Factory orders are declining world wide. Shipping indexes at all time lows.
There is enormous overcapacity in housing here and in manufacturing in China.
National debt and deficits are at all time highs.
Credit remains severely constricted and consumers cannot easily borrow.
People are finally saving taking even more money out of the economy.
Discretionary spending is s thing of the past.
Small businesses cannot get finance to expand or even continue current operations.
There is a massive wave of commercial loans resetting and threatening to default.
Vacancy rates at office complexes and shopping malls are skyrocketing.
Show me any sign of a recovery in those facts. And this is the state of affairs even after we have already seen the Feds commit more money to saving the "system" than was spent in every American war to date.
The question I have is this: if massive Federal spending won't kick start the economy again, then what will it take to reverse the decline this time? Is there another war looming on the horizon, a resource war where nations struggle for control of the last remaining resources of oil, fresh water, food, and vital commodities? Considering that it took WWII--the closest we have come to world wide insanity--to get us out of the last depression, I shudder to think what it will take this time around.
I once wrote we were entering a time when Americans would cease being concerned about trivial things like American Idol and whether or not to super-size their MacDonalds order, and start being concerned about things like food, fuel and freedom. Another blogger has taken my three Fs and upped them to three Gs--Gold, Guns and Groceries. We might also try three Cs--Community, Cooperation and Commonwealth, but adversity tends to bring on a period of "me first" survivalism in people's souls.
It doesn't have to degenerate into more mass insanity. It's possible to simply start over and build something new together. But we have to want that common good more than our own selfish interests. So I guess the key question is how many of us will be willing to pull for the common good...and when will we get started?
Jobs continue to decline and the work force is shrinking.
Housing prices continue to fall, destroying equity as they do so.
40% of mortgage owners, (not homeowners), are now "underwater."
Factory orders are declining world wide. Shipping indexes at all time lows.
There is enormous overcapacity in housing here and in manufacturing in China.
National debt and deficits are at all time highs.
Credit remains severely constricted and consumers cannot easily borrow.
People are finally saving taking even more money out of the economy.
Discretionary spending is s thing of the past.
Small businesses cannot get finance to expand or even continue current operations.
There is a massive wave of commercial loans resetting and threatening to default.
Vacancy rates at office complexes and shopping malls are skyrocketing.
Show me any sign of a recovery in those facts. And this is the state of affairs even after we have already seen the Feds commit more money to saving the "system" than was spent in every American war to date.
The question I have is this: if massive Federal spending won't kick start the economy again, then what will it take to reverse the decline this time? Is there another war looming on the horizon, a resource war where nations struggle for control of the last remaining resources of oil, fresh water, food, and vital commodities? Considering that it took WWII--the closest we have come to world wide insanity--to get us out of the last depression, I shudder to think what it will take this time around.
I once wrote we were entering a time when Americans would cease being concerned about trivial things like American Idol and whether or not to super-size their MacDonalds order, and start being concerned about things like food, fuel and freedom. Another blogger has taken my three Fs and upped them to three Gs--Gold, Guns and Groceries. We might also try three Cs--Community, Cooperation and Commonwealth, but adversity tends to bring on a period of "me first" survivalism in people's souls.
It doesn't have to degenerate into more mass insanity. It's possible to simply start over and build something new together. But we have to want that common good more than our own selfish interests. So I guess the key question is how many of us will be willing to pull for the common good...and when will we get started?
