Do you agree that the USA is headed for an enormous recession?

Question

The US Dollar is plunging on the world market. The Arabians don't even want to quote their oil prices in US dollars anymore. The USA can't raise interest rates to make the US Dollar attractive to foreign investment because half of the people in the USA will have their houses forclosed on because of adjustable rate mortgages. Do you agree the USA is trapped into a downward spiral with no way out?

Answer 1

Well yes, so let's look at the details,
1)The housing market is down, it is at the bottom of it's cycle.
2)The Dow is fluctuating wildly as it struggles to stay above the 13,000 mark and cannot seem to approach 14,000. Wild fluctuations and the presense of the sub-prime or "unregulated" markets is, historically, not a good thing for Wall Street. The lack of regulation is part of what caused the Great Depression of 1929.
3)The huge increase in the cost of fuel is hurting any industry that depends on the presense of cheap fuel (i.e. the travel industry, the hotel and hospitality industry, the shipping industry, etc...)
4)The invention and implementation of alternative fuels and new technology does not seem to be occurring fast enough to prevent the major loss of revenue and income of businesses and individuals, respectively.
5)The cost of foreign and domestic wars has been enormous, which is historically a very bad thing for any country, past or present.
6)The debate over many serious issues facing the USA is occurring, but without, it seems, the appearance of long term solutions.
7)And, of course, the weakened US dollar is not faring well on world markets and foreign banks are having to inject huge sums of money to thwart the present credit crunch.
8)It is also estimated that the cash savings of Americans is the worst it has been since the Great Depression of 1929, along with the widening gap between the small percentage of Americans that have most of the wealth and the vast majority of Americans that do not.

THINGS DO NOT LOOK GOOD!!!!!!!!

HOWEVER, the good news is that it has been said in the past that war, recession and depression have, in the past spurred the enormous growth that occurred, for example, during and after World War II. With that said, if we do experience an enormous recession, theoretically, enormous prosperity is sure to follow.

If it's any consolation, the weakened US dollar allows US goods to become more affordable to foreign buyers and investors, thus allowing for an influx of foreign money into the US. And, the fact that there is debate at all over serious US issues is much better that if there were no debate at all. It means that many people are concerned and are doing something to bring about needed changes and progressions to US society, culture and industry. Also, to know that the technology needed to change our world for the better does exist, it is just taking a little longer than expected to be applied, is also of great encouragement. And the housing industry is expected to be on the upswing by 2009, so, a recession maybe, a depression maybe not.

If anything, the only thing that is really troubling is the fact that the US must somehow recoup is expenditures in the war on terrorism with a decisive victory over terrorism. Also, the skyrocketing cost (to world economies and the environment) of the rapidly disappearing fossil fuel supply must be replaced with less expensive, green, and alternative energy sources and new technology as soon as possible (ASAP). There are those that claim that fossil fuels will be around for many decades to come, however, in the process, the cost of this finite fuel is rapidly becoming unaffordable, shall eventually disappear and its continued use is presently and potentially irreversibly polluting and destroying the planet we live on.

If we can overcome this one most serious problem, that appears to be centered on war and oil, then the other problems, such as recession, facing the US and other industrialized nations, can be overcome much more easily.

This just in:
Americans owe over 14 trillion in car, mortgage and credit card debt!!!!!! HELP!!!

Answer 2

Absolutely not!!! Not even a little one! What you see and hear about all that is just so much political hogwash.

I work part-time for a freight company.... at least it is supposed to be part-time. But for quite a while we have been running so hard that we hardly have time to get home and get a few hours sleep before we get called out to do more work.

Also, take a look at how many 18-wheelers are out on the Interstate highways in the early evening hours. Probably as many as there have ever been before. If the big trucks are busy so is business in general. It can't be any other way.

There may be a small business here and there that is having a hard time but overall business has to be doing pretty good else there would not be so many trucks running up and down the highways.

As I said before, news that the economy isn't doing very well is just so much political hogwash, and the proof is all around you if you just care to look for it.

Oh, one more thing. The stock market keeps hitting record highs. That means that people who study market trends like what they see and are continuing to invest.

Answer 3

Yes - by design on at least 2 levels.

The US Gov has racked up an incredible amount of debt - so much that they can't ever hope to pay it off.

This comes from conducting wars they cannot afford. It has come to the situation where they need about 2 Billion a day from foreign sources just to keep things going.

Sooo, in order to improve the situation (in their opinion) they get the Federal Reserve (which is not really a government agency but is a private bank owned by the world's elites - and it is the sole source for creation of US money), they get it to create billions of US dollars from nothing by typing numbers into a computer.

The Fed Reserve then "lends" this new money to the government and to banks at their "prime" rate of interest. Note that for every dollar created there is an associated interest charge - but the money to pay the interest is not created - so there is always a perpetual deficit - this is the basic flaw in the system that causes a perpetual and growing national debt.

Anyhow, this money creation that is going on at a rate upwards of 14% annually at present, causes depreciation of existing US dollars and financial instruments based on US dollars such as T-bills.

This makes it easier to pay off foreign debts and shafts the debt-holders (such as China), and the US public in the process, because the buying power of the money decreases.

This is real inflation that the powers that be are trying to hide from the people (hence they stopped publishing the M3 rate of money increase and their inflation figures and GNP figures are heavily manipulated to make things look better than they really are.)

The other agenda that is affot belongs to those powers that are represented in the group known as the Bilderbergs, or the 300 Families, and in the core of this group are to be found those who own the Federal Reserve, such as the Rothschilds, the Rockefellers, the British and Dutch Royal families to name just a few.

The idea is to ruin America - to cause economic depression, to overextend the military - in order to make it easier to impose a one World Government - America has been viewed as a major obstacle to this agenda.

This scheme has been ongoing for many years - note that the Fed Reserve was created in 1913 just prior to WW1 - in fact some say that US loans to Germany made the war possible...

So yes, rough times are ahead.

My recommendation is to spend your US money while it still has buying power. Buy non-perishable supplies, buy farmland, equipment, non-engineered seeds, buy precious metals - actual coin, not paper certificates. Buy the means of protecting yourselves and your loved ones. Buy windmills for power generation. Move out of the cities. Drill your own wells for water. Become truly independent and be prepared to support yourselves.

Answer 4

The housing industry has tanked. That effects many, many people in many different walks of life and professions and then spreads to just about everything else because they have no money to spend on other things. This happened during the Reagan administration.

It then hit the auto industry and many people were driving old cars and if you were looking to buy a good used car, it was very difficult to find one. Lots and lots of layoffs and plant closings. That recession was very serious for about 2 years and wasn't really gone for several years after that. I remember it well because we had an electrical contracting business. Bad times.

Answer 5

Yes , the world is in a downward spiral, overpopalated, by the year 2012 all the nations may destory this world we live on, leaders of this nation is wanting to bring more in , why not just open up this nation to all nations, it will be that way in years to come.

Answer 6

There is always a way out - the USA is not "trapped". Throughout our history (and probably yours) inadequate leaders have created economic disasters. An effective leader who actually understands how the system is supposed to work, and who makes good decisions that make our people stronger, is a step to solving this crisis. One thing about us Americans - we know how to bounce back in the face of adversity.

Answer 7

Yes, I do. Every country or society must have some type of resource to fuel it's economy, whether it be natural or man made. Americas' resource was it's industry. For the last 20 or so years, that industry has been migrating to countries with a cheaper labor source. Thus, we have lost our main source for generatng a good solid economy.

I would like to thank all of the major industries for abandoning the hard working American labor force for the sake of greed. You have left us with a steady decline in our living standards and destroyed our future.

Most of you moved to China, a communist country of athiests, and every worker there, has taken a job away from the American workers that built your corporation .

Thanks for nothing!

Answer 8

Not if we elect a democrat! Mrs. bill Clinton and barrack will hand the country over to the "undocumented citizens" and the " freedom fighters" because we all know it's not their fault for coming here illegally or the terrorist are just confused. Society made them come here to attack us it's not their fault! So don't worry about recession, if we elect a democrat we won't even have a country!

Answer 9

If the Fed stops lowering interest rates -- yes. Perhaps even a depression.

The country is bankrupt thanks to our "wars". Other countries now realize this and are warming up to the Euro.

It reminds me of the USSR's economy in the late 80's.

Answer 10

It sure looks that way. I read yesterday that a tent city had sprung up east of Los Angeles for people that simply could not afford to pay high rent.

This page takes a long time to download but may explain a few things:

http://www.retirehealthy.us/geopolitical_socioeconomics.htm

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