Date registered: Sep 2004
Vehicle: 83 Astral Silver 280 SL
Location: Planet Houston
Mentioned: 0 Post(s)
Quoted: 7 Post(s)
No shit. This thing is just getting started. Even if it keeps shrinking at that rate, it will amount to over 10% in a year. A ten percent shrinkage of the American economy, dude, that is going to be a bitch. At this point everybody is getting hurt and there is a new accelerator coming into play. US property values, which prop up a huge universe of home equity loans, second mortagages and various other credit instruments based on unicorns and litte forest people, are dropping like a rock, what was considered solid last week becomes this week's bad loan. This is going to start affecting the local banks and start killing off even more business.
We may be experiencing 1929, when the real effects did not roll in until the early thirties, two years later, when banks starting going belly up left and right, compressed into a few months instead of years. It's also why "tax cuts" won't work, we need a huge infusion into the economy so that prices can be propped up, we don't need to be giving more money to the rich to sack up and haul off to build more factories in India and China, we need controls over it to see it is spent right here in the US. If you think inflation is some big boogy man, compared to deflation, it's a little choir boy. If the US economy deflated to what it is really worth, we're dead. This country will look like Mexico. Funny, that's what all us on the left have been accusing the Bush Globalists of wanting any way, isn't it? They may have pulled it off. The vast wealth of the American Middle Class, carted off to the third world so more markets can be created and labor costs can become minimal as they sell the world cheap junk and gas. Well, boys and girls, it looks like that's what's happened, doesn't it? Funny how all this started out with a vast transfer of middle class wealth with 6$ a gallon gas, huh?
Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.
-President Barack Obama, 1st Inaugural address
Last edited by FeelTheLove; 01-30-2009 at 08:41 AM.