2007-12-06 02:43:53 · 10 answers · asked by Anonymous in Politics & Government ➔ Politics
Yes.
The sub prime mess is coming to a slow boil, and the enormous pricing pressure of 80-90 dollar oil and the precipitous decline in the dollar is beginning to come into play. These factors, coupled with the fact that the US no longer has the manufacturing infrastructure to "produce our way out", suggest that a depression is inevitable.
The administration will take unprecedented steps next summer to delay it until after the election, but in the end, this will only make the eventual collapse worse.
2007-12-06 03:01:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If we don't do something about the deficit and falling dollar we could see a collapse leading to a depression. All it would take is China recalling their notes or refusing to buy more debt. The only thing stopping it is everyone holding our debt would lose their money but like the crash of 1929, there comes a point where people decide to take what they can get instead of losing it all. China and Europe have already announced they will buy less US debt. (they call it diversifying)
A change from international standards of conducting oil transactions in dollars to Euros could also start a "run" and this has been considered by OPEC.
2007-12-06 02:51:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Not like the one in the early 1900s FICA helped prevent that.
But - overdrawing your assets as the Bush Administration is doing, and taking out loans that tax future generations certainly doesn't lead to prosperity.
2007-12-06 02:48:58 · answer #3 · answered by Mkath 3 · 1⤊ 0⤋
We're entering a recession, or "ending a cycle" as some might say. That's not a depression.
2007-12-06 02:56:24 · answer #4 · answered by buzzfeedbrenny 5 · 0⤊ 0⤋
It is highly unlikely. As a matter of fact, Christmas shopping and spending in general is up compared to recent years, but corrupt members of the liberal media are hiding this fact because they want things to look as bleak as possible to push their agenda of putting a Democrat in the White House.
2007-12-06 02:54:09 · answer #5 · answered by jmattiesmufc 5 · 1⤊ 1⤋
No, China and Saudi Arabia won't let us fall to a depression state... too much of their money is tied up in our economy.
2007-12-06 02:50:17 · answer #6 · answered by pip 7 · 1⤊ 0⤋
Nope, no time soon. Neither political party will bring one on...
Magma H - I was looking through your "answers" and your political alignment is imposing on your ability to answer questions honestly... the jist of every answer "dem good rep bad"
2007-12-06 02:50:45 · answer #7 · answered by jskmarden 4 · 0⤊ 1⤋
No... A recession is possible, but a depression is highly unlikely.
2007-12-06 02:47:29 · answer #8 · answered by Fretless 6 · 0⤊ 0⤋
No, not yet. The election is coming soon and if a Democrat wins, there shan't be a depression.
Vote for Republican and all hell breaks loose.
Get ready for soap lines.
2007-12-06 02:48:03 · answer #9 · answered by Magma H 6 · 2⤊ 4⤋
no
2007-12-06 02:48:29 · answer #10 · answered by Anonymous · 0⤊ 0⤋