19
Aug
11

Are we in a Depression?


I believe that we HAVE entered a depression, and the reporters/journalists are afraid to say this evil “d word”. I have heard that the unemployment rate has actually reached over 20%, and the only reason the stock market has not collapsed is because the government and others with a whole lot of money have been poring their money into the stock market to make everyone think it is ok, but it is not.

Let’s face it, the banks are about a minute away from collapse. Oil is a finite resource which China now wants, and since we have not yet gone over to things like solar energy which is an infinite resource, the US and Europe is in a downward spiral. Plus the problems with the EU currency and the EU government in general is terrible. The EU government is less productive that or congress which is currently on vacation, and since this is a global economy, when one country with a large economy fails, the entire globe is affected. If the stock market had not been falsely supported by so many parties with a lot of money and had been allowed to adjust naturally, we would not be in the mess we are in right now.

What mess are we in right now? Well, when the European countries had been declining as they are now, the US economy may not have been:

1. loosing so much money now. It would be far more stable.

2. These kind of ups and downs makes it far more likely that the stock market will, in the near future collapse.

If you know your history and what led up to the 1930′s crash, you would know that we are following the same pattern, the only difference is people are falsely trying to support the Stock market. Unfortunately, this does not support the economy, merely the stock market… giving the CEO’s a ton of money which they can take and run away with if they want.

Look at the above picture.  It shows the crash of the 1930’s.  Notice how there were deep drops and extreme highs both before the peak, and after the peak on the way down.

Now look at this picture.  This is a picture of the stock market of the 1950’s until today.  As you can see, it is a very rocky road since 1950, and we had what seems like a strong dip in the 1980’s.  More recently however, the Dow seems to have flattened out with many dips up and down.  It seems like the market is waiting for something.  Maybe to fall?  Or maybe for our government to get its act together so that it can actually help the economy.

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