The next Great Depression looming for Americans??

**Dewitback** · 03-16-2008 06:58 PM

I think this is a pretty serious situation. And I want your opinions on it. I need a place to discuss this all with where I know people are smart and can stick with thier thoughs and opinions while backing them up. I've seen it plenty on the religious threads, and so this is the perfect place for me.

(For some strange reason I've had this hunch that makes me feel as if 2008 is the beginning of something big. And I was just wondering if anyone else has had this hunch.)

If you don't already know, the american dollar has been decreasing in value for a while now, and some predict a depression in the near future. People are losing thier jobs at a 4.8% or so rate. Pres. George Bush also has stated that there is an economic crisis. Ron Paul is running to "save" america from an economic death.

I was just looking at this article, which you can read on the page or read it here. what are your thoughts?http://www.independent.co.uk/news/bu...on-796428.html Also, here is a vid that I added down on post 8. http://www.youtube.com/watch?v=4n3g5...eature=related

Wall Street fears for next Great Depression

Change font size: A | A | ABy Margareta Pagano, Business Editor
Sunday, 16 March 2008

Wall Street is bracing itself for another week of roller-coaster trading after more than $300bn (£150bn) was wiped off the US equity markets on Friday following the emergency funding package put together by the Federal Reserve and JPMorgan Chase to rescue Bear Stearns.

One UK economist warned that the world is now close to a 1930s-like Great Depression, while New York traders said they had never experienced such fear. The Fed's emergency funding procedure was first used in the Depression and has rarely been used since.

A Goldman Sachs trader in New York said: "Everyone is in a total state of shock, aghast at what is happening. No one wants to talk, let alone deal; we're just standing by waiting. Everyone is nervous about what is going to emerge when trading starts tomorrow."

In the UK, Michael Taylor, a senior market strategist at Lombard, the economics consultancy, said on Friday night: "We have all been talking about a 1970s-style crisis but as each day goes by this looks more like the 1930s. No one has any clue as to where this is going to end; it's a self-feeding disaster." Mr Taylor, who had been relatively optimistic, has turned bearish: "It really does look as though the UK is now heading for a recession. The credit-crunch means that even if the Bank of England cuts rates again, the banks are in such a bad way they are unlikely to pass cuts on."

Mr Taylor added that he expects a sharp downturn in the real UK economy as the public and companies stop borrowing. "We have never seen anything like this before. This is new territory for us. Liquidity is being pumped into the system but the banks are not taking any notice. This is all about confidence. The more the central banks do, the more the banks seem to ignore what's going on."

Mr Taylor added that the problems unravelling at Bear Stearns are just the beginning: "There will be more banks and hedge funds heading for collapse."

One of the problems facing the markets is that, despite the Fed's move last week to feed them another $200bn, the banks are still not lending to each other.

"This crisis is one of faith. We are going to see even more problems in the hedge funds as they face margin calls," said Mark O'Sullivan, director of dealing at Currencies Direct in London. "What we are waiting for now is for the Fed to cut interest rates again this week. But that's already been discounted by the market and is unlikely to help restore confidence."

Mr O'Sullivan added that the dollar's free-fall is set to continue and may need cuts in European interest rates to trim the euro's recent strength against the dollar. "But the ECB doesn't like cutting rates," he said.

On Europe, Mr Taylor said that while the German economy remains strong, others such as Italy's and Spain's are weakening. "You could see a scenario where the eurozone breaks up if economies continue to be so worried about inflation."

European financial markets were relatively unscathed by Wall Street's crisis but traders expect there to be a backlash when stock markets open tomorrow.

The Fed's plan will give 28 days of secured funding to Bear Stearns, which saw its value slashed over the week by more than a half to $3.7bn. JP Morgan will provide the funding, but the Fed will bear the risk if the loan is not repaid. Fed chairman, Ben Bernanke, who pumped $200bn of loans to cash-strapped institutions last week, said more would be available to help others in distress.

**ChrissyMaria** · 03-16-2008 07:39 PM

Well I for one believe 2008 is the beginning of the end of this nation, and in 2012 perhaps America will have been collapsed and in total anarchy?

All I can tell is that were headed into uncharted territory and we have no clue what terrible things lie ahead in the future, I have the feeling something Terrible will happen and some state of emergency will be declared and I have a weird gut feeling.

**juroara** · 03-16-2008 07:52 PM

wouldn't a fear of a great depression or a fear of some sort of anarchy only make things worse?

I think Americans will be strained and squeezed. but were not going to have a depression and were not going to collapse into anarchy. were going to say "enough!"

we'll pull our heads out of our arses, and then the world will watch us as we make a new model for the economy. one where you reap what you sow, versus someone reaping what you have sown. employee owned companies are the future. rather than outside people owning something they have taken no part of.

with this brave new model, there is no excuse for anyone to be poor.

**Mysteryhunter** · 03-16-2008 08:05 PM

So long as price of gold/oil does not soar to new heights US should be alright.

**dragonoverlord** · 03-16-2008 08:07 PM

Originally Posted by juroara

we'll pull our heads out of our arses, and then the world will watch us as we make a new model for the economy. one where you reap what you sow, versus someone reaping what you have sown. employee owned companies are the future. rather than outside people owning something they have taken no part of.

with this brave new model, there is no excuse for anyone to be poor.

There is already a system like that. Its called communism.

**Dewitback** · 03-16-2008 08:30 PM

Originally Posted by Mysteryhunter

So long as price of gold/oil does not soar to new heights US should be alright.

Actually, the less the dollar is and the less gold there is to back the dollar up, the more inflation, the pricier the Oil.

**ninja9578** · 03-16-2008 08:40 PM

I think all of the candidates on both sides have plans to fix Bush's economy.

**Dewitback** · 03-16-2008 09:12 PM

http://www.youtube.com/watch?v=4n3g5...eature=related

I found this, and I don't think that the next president can help make it go away, but i do think that they might help it be less severe.

If this crash were to happen, U.S is in a little pickle. And for some reason, I feel it is going to happen.

**Man of Shred** · 03-16-2008 10:22 PM

What you have to understand is the Monetary System The United States live under. This system of Money= Debt.

The federal reserve is privately owned and has nothing do with the american Economy.

how does this system of debt work? Well simply, lets say a group of people open a series of Banks long with the federal reserve. The Federal Reserve prints money out of thin air and distributes it to banks. A when a bank opens it has say 1,000 dollars. The bank is allowed to hand out more money based on a margin. so technically even tho the bank only has 1,000. it can lend out 10,000. Ever dollar they hand out is indebted back to them. Set up this system with a whole hoard of banks and you have our monetary system.

If you take out a loan The bank hands out money based on thin air. It comes from the central bank and is thus owed back to the central bank. Whoever prints the money can control the cash flow. These people can manufacture a money crisis by making large demands of the debt back faster than the people come up with. The US dollar is being destroyed on purpose. And when that happens a north American currency will be introduced. This is a crisis to scare people into makiing the wrong decision: to switch to a different currency based on communism.

**Dewitback** · 03-17-2008 12:11 AM

Originally Posted by ranma187

This is a crisis to scare people into makiing the wrong decision: to switch to a different currency based on communism.

are you saying this is a scare tactic in order to make people accept lets say the Amero currency? Or are you saying that who ever is in power right now made world events happen (like the iraq war, 9/11, whatever else) in order to make this happen, and then the people will have to change currency. What my question is, in your opinion is this an empty threat portrayed by mass media to make us believe it, or is this a real event made to happen so that we would have no other choice?

**Sornaensis** · 03-17-2008 01:42 AM

to switch to a different currency based on communism.

And the bad part is?

**Man of Shred** · 03-17-2008 02:32 AM

see chairman mao of China and Stalin of russia. Or north korea.

**R.D.735** · 03-17-2008 03:05 AM

I don't *think* the economic recession the US is currently starting is going to be as severe as the Great Depression, when the economy contracted so severely that the unemployment rate hit 15+% for an extended period of time, and peaked at 25%. The sheer scale of a similar downturn in modern America is difficult to contemplate. Could 20-30 million people lose their jobs in today's economy? Considering that close to 10 million could lose their homes, the unemployment of 20-30 million people seems within reach.

It's hard to tell how severe it will be, though the government has a huge incentive to conceal the worst of the problems and, above all else, act in a decisive way, even if the action doesn't make much sense. The only certainty is that things will change dramatically, and the change will be painful.

**juroara** · 03-17-2008 04:16 AM

Originally Posted by dragonoverlord

There is already a system like that. Its called communism.

no, its not communism.

it'll resemble what we have now except that companies are employee owned. that doesnt mean its held in common, it still allows for privately owned companies. it just means the employees get a much larger chunk of the profit now, what the company really owes them.

think of how much money burger boys bring in for a fast food chain, in comparison to how much they get payed. they get paid crap in comparison for how much money they generate for their company. with reaping what you sow, the company owes them a hell lot more - and the burger boy can easily triple his paycheck.

who is going to lose out? CEOs of course

**Xaqaria** · 03-17-2008 11:13 AM

Originally Posted by dragonoverlord

There is already a system like that. Its called communism.

Not really. I think what he is talking about is more of a community trust system in which corporations are cooperatively owned by those that work there.

**Sornaensis** · 03-17-2008 08:36 PM

Originally Posted by ranma187

see chairman mao of China and Stalin of russia. Or north korea.

Those are politcal systems based around Marxism.

You said a currency based on communism. Which is a form of socialism. Which is based on Marxism.

Is that even possible? And even so, how would it negatively affect a capitalist, free-trade, and democratic country?

The real problem with the US is that we don't correctly tax importations.

If we put a heavy tax on imported items, and put looser laws around factories and industrialization and manufacturing, we wouldn't have such a problem with other countries such as China making inferior products for less and having only a handful of people make the money off of it.

**ChrissyMaria** · 03-27-2008 07:59 PM

Originally Posted by ranma187

What you have to understand is the Monetary System The United States live under. This system of Money= Debt.

The federal reserve is privately owned and has nothing do with the american Economy.

how does this system of debt work? Well simply, lets say a group of people open a series of Banks long with the federal reserve. The Federal Reserve prints money out of thin air and distributes it to banks. A when a bank opens it has say 1,000 dollars. The bank is allowed to hand out more money based on a margin. so technically even tho the bank only has 1,000. it can lend out 10,000. Ever dollar they hand out is indebted back to them. Set up this system with a whole hoard of banks and you have our monetary system.

If you take out a loan The bank hands out money based on thin air. It comes from the central bank and is thus owed back to the central bank. Whoever prints the money can control the cash flow. These people can manufacture a money crisis by making large demands of the debt back faster than the people come up with. The US dollar is being destroyed on purpose. And when that happens a north American currency will be introduced. This is a crisis to scare people into makiing the wrong decision: to switch to a different currency based on communism.

And the award to most intelligent response goes to:

your right, and our future looks kinda uncertain and perhaps gloomy

the day the amero comes into play, is the day i move

**Elite** · 03-27-2008 08:03 PM

I think it is possible because they can have immigrants work for pennies a day. Americans can't live on those kinds of wages. If I had to go through the depression I hope at least I pray I don't.

This reminds me of the movie Soylent Green. That movie was so corny but it was a good movie.

**spitfire riggz** · 03-27-2008 08:06 PM

yeah, ive been having strange feelings of big things going to happen, thats why we gotta come together to resolve this, but there are too many ignorant people out there.....

**Elite** · 03-27-2008 08:07 PM

Originally Posted by spitfire riggz

yeah, ive been having strange feelings of big things going to happen, thats why we gotta come together to resolve this, but there are too many ignorant people out there.....

I agree with you on that one.

**spitfire riggz** · 03-27-2008 08:09 PM

yeah, i just hate that ppl kan be so racist and ignorant. for some reason i never thought it was as bad as it is. i seriously thought that ppl werent that racist. but i played xbox live a few times..... or online too, on the internet

**panta-rei** · 03-27-2008 10:53 PM

Its not possible to have another great depression, the great depression only happened because of flaws in the stock market and the U.S. treasury adding to the fall. It wont happen that way, they made sure of that with laws and back up plans. Were only in a recession right now, It's about as bad as its going to get.