Tuesday, August 23, 2011

TNR Writer: Let’s Be Honest: We’re in a Depression, Not a Recession, And There’s No End In Sight


If you're not familiar with The New Republic just know that it is a left-of-center periodical that generally does all it can to support, enable or otherwise assist the current Presidential Administration.

QUOTE: "If the notion that we are merely living through the aftereffects of a mere “recession” that ended in 2009 sounds somewhat ridiculous, that’s because it is. If we were being honest with ourselves, we would call this a depression. That would certainly better convey both the severity of our problems, and the fact that those problems have no evident solutions."

QUOTE #2: "So what can be done now? Probably nothing. Anything that involves spending, such as a new stimulus program, would come too late to be effective. Measures that would not involve spending, such as devaluing the currency (which the Federal Reserve could do by buying a great many bonds, thus flooding the world with dollars), could stimulate our exports and hence production and hence employment and reduce imports (which would further help domestic production), but they are too risky given the interdependence of our economy and the economies of the rest of the world. Europe is staggering and would be hurt by our devaluing, and our banks and other financial institutions are heavily involved in those European economies."

Let's face it.  When leftist publications are beginning to openly use the "D" word despite the negative effects it can have on "their guy" it's very likely that we're about to see awareness drastically increase as to the severity of the current financial mess we all face.  What will people start doing as they wake up?  Buy a bunch of food?  Bullets?  Band-aids?  What will that do to the cost of 'survival items'?  More money chasing fewer products generally drives up prices, all the more so when inflation is running so high.  So.... buy anything you need now at today's prices and not only will you have what you need on hand but you'll be purchasing at today's lower prices instead of tomorrow's inflating levels. 

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