The Coming Crash & The Recession That Never Ended
Another reason for the lack of quality jobs is that the government cannot institute a policy to buy American or they risk a trade war with other nations in the global economy that are also living beyond their means. The trade war probably is coming anyway because unemployed people of nations will demand that their government do something to protect their jobs and all government can do to keep jobs at home is to allow protectionism.
That happened in the 1930’s and it made a bad recession into a long world depression. That now seems to be our future and along with the deflation depression or hyperinflationary depression that is bound to come, it will allow the rise of populist demigods who will convince people that they know who is to blame and that they have all the answers. In other words, we are now repeating the same mistakes of the 30’s that led to the nationalist socialistic movements and the start of World War II. It will not be different this time except the stakes for the world will be much higher.
The same mistakes in housing in the US are being made all over again. I do not think this is a good time to invest in residential real estate unless you plan to actually live in the house. The recent climb in values will probably be short lived as this country goes back into the next phase of this depression. Foreign investment speculators who think we are in recovery are once again buying real estate and driving up prices. The percent of Americans owning their own home is actually still falling and have fallen to 1990’s home ownership levels. Family income in the United States and hours worked is still falling. The recovery is mostly phony and what recovery there seems to be is really built on the Federal Reserve creating more money and more government borrowing. The recovery is going to speculators in the top one percent. The rich are getting richer and the poor are getting poorer.
If I have a sure message to people who are listening, it is this – Learn to live on an income that is less than half of what you were living on in your good times. Within the decade your income will be far less and/or it will buy far less goods and services. Also prepare for big government trying to manage and run every aspect of people’s lives. Certain people are going to think the only way to handle this is through forced government control and then rationing. Do not be surprised if there is civil breakdown and even Balkanization’s when the people get fed up. It has already started in some nations. It is going to get much worse than most anyone imagines.
Try to network with mature astute conservative Christians who understand these issues. It is going to be a tough time for everyone and those who stand alone will have little support. More spending beyond our means is not going to solve a problem that was caused by spending beyond our means. It will only make things worse in the future. The coming decade for the U.S. and the hard choices it makes will determine if we even survive as a nation. God be with you all.
Almost every nation of the world has such severe debt that just making the interest payments takes a large amount of their financial resources. Much of this world debt is owed to world bankers that then dictate their own economic policy to these countries. These policies do not favor the poor.
The largest economy in the world is the United States. The US government is currently 18+ trillion dollars in debt and I project that to go well over 20 trillion by 2020. Paying the interest on that huge debt in future years will cost as much as what is now spent on national defense (using modern historical interest rates and the cost of defense under normal peace time conditions).
The United States is now by far the biggest debtor nation in the world. For many years we have been importing hundreds of billions more dollars in goods and services than we are exporting each year. In 2005 through 2008 the trade imbalance averaged well over 700 billion dollars per year! Trillions of US dollars are now in the hands of foreign investors who at any time could dump the dollar causing a devaluation of the currency.
During the presidency of Bill Clinton the US government was forecasting surpluses of trillions of dollars based on the stupid assumption that there would not be a downturn in the economy for decades. This foolish assumption was of course proven wrong and deficit spending in 2009 and 2010 will be at least two trillion dollars a year if everything is really counted. The only reason the United States is not yet feeling the pinch of spending beyond its means has been the record low interest rates. The low interest rates were brought about by Federal Reserve manipulation to stimulate the economy but interest rates eventually will have to rise. Soon all who need loans will be making higher payments and the US government will be paying much more to service the national debt.
Debt and unfunded liabilities promised through entitlement programs is now about 125 trillion dollars. This amount of money in non inflationary dollars is impossible to raise! Thus, the US is now technically bankrupt. In order to keep up the facade that the US is solvent for even another decade or two, one or more of the following must happen.
1. Taxes must be raised.
2. Government spending will have to be drastically cut.
3. Deficit spending will dramatically increase.
If taxes are raised, it will kill the economy and the debt load will get worse and not better. Spending will not be drastically cut because these types of cuts would never get through the political system. Therefore, massive deficit spending will take place. The monetary system will be inflated so that this debt can be paid by using a dollar worth only a fraction of what it is today. This means a much weaker dollar in the future and much higher prices for all goods and services imported to the United States (in short it means we should expect high inflation or hyper-Inflation).
The best long term scenario is that the economy will expand for decades and we will partly grow our way out of this debt crunch (like we temporarily did under Ronald Reagan). But, I do not see stability for that length of time as even a remote possibility in this world full of crises. I think it is only a matter of time before another downturn in the economy or an unforeseen world event brings about the collapse of this house of cards.
Inflationary depression worse than the great depression
Two thirds of the families in the US are now invested in the stock market compared to three percent in the great crash of 1929. When the economic crash comes, retirement accounts, mutual funds and most paper wealth will be wiped out. Most people making a living on the service sector of our economy will be unemployed. Prices on everything made in this country will either deflate or paper money will lose most of its value. The resultant depression will affect everyone and it will be the worst that this nation has ever known.
When the US economy goes down it will take the world economy with it. This economic collapse will cause great civil unrest all over the world, cities will be filled with riots and later with troops. Democracy will be dead and people will look to demigods to solve their problems. When the economy of the West crashes Russia may get ideas to invade the Middle East to seize its riches.
This day will not take some of the elite of the world by surprise. They know that this day is coming (Satan pulls their strings). At the appropriate time, the solution to the crises will be to abolish almost all debt and all savings and to start over with a new world economic system that will set the stage for the end time economic system described in the book of Revelation.
There is little question that the world debt crash is coming. It does not even have to start in the United States (it could begin in Japan, China, Europe or elsewhere). The only question is the timing of this crash. The world debt situation is so bad now, that a deliberate or accidental crash could occur at any time. The world bankers and world leaders have been putting off the inevitable by huge bailouts and extensions of debts but with these bailouts there is loss of sovereignty to world government and world bankers. They will continue in this mode until the house of cards collapses of its own weight, someone pulls a card, or some large scale economic disruption blows this house of cards over.
Students of Bible prophecy know that a new world economic system will be set up under a world government where no one will be able to buy or sell unless they take the “mark of the Beast”. The formerly debt ridden world will embrace this worldwide cash-less monetary system after the crash because a new system will wipe out most debt and all nations will start afresh. This new economic system will promise great prosperity to the world.(source)
Coming of Age in the Great Recession
I am pleased to join you for the ninth biennial Federal Reserve System Community Development Research Conference. This conference has established itself as an important venue for sharing research and exchanging ideas on how best to support the advancement of low- and moderate-income communities.
The many economic decisions an individual makes early in his or her working life–their first job, how much and what kind of an educational investment to make, how to finance that investment, whether to strike out on their own, and whether to rent or buy a home–can have a lasting effect on their subsequent financial security and the economic foundation they provide for their children. There are times, however, when larger forces materially interrupt or impede the individual efforts of young people to build a better economic life. The Great Depression left an indelible imprint on the generation that came of age in that era, influencing their subsequent job trajectories and attitudes toward risk and investment. The question we face today is whether the Great Recession may similarly leave a lasting mark on the many Americans who came of age in its shadow.
It is important to understand the headwinds encountered by the Great Recession generation as they navigated a daunting job market, and the lessons they have taken from the crisis, particularly with respect to investments in education and housing. And it is important to identify what actions can be taken to improve economic outcomes for the Great Recession generation, as their experiences will powerfully influence not just growth today, but also the contours of opportunity faced by their children.
Employment and Participation in the Labor Force
Let’s start by considering what it was like to graduate from high school or college in June 2009. The overall unemployment rate stood at 9.5 percent, and employers slashed 500,000 jobs that month, the 18th month in a row of job cuts. For young people, job prospects were even bleaker. Nearly one-fourth of teenagers in the labor force were unemployed, and the unemployment rate for people between the ages of 20 and 24 stood at 15.2 percent. Young African Americans and Hispanics experienced higher rates of unemployment than their white peers.
Even these painfully high unemployment rates–the highest since the early 1980s–understate the damage caused by the Great Recession to young people’s work lives. The lack of job opportunities appears to have caused many young people to become so discouraged that they dropped out of the labor force altogether, exacerbating a downtrend and driving labor force participation among young people to historical lows.
Even for those who remained in the labor force and have been fortunate to find work, compensation prospects have been poor. For example, inflation-adjusted full-time weekly earnings among 19- to 24-year-olds with only a high school diploma fell about 5 percent between 2008 and 2012.1
Of those who have found work, not only are many young people receiving low wages, but also many are working at jobs for which they are overqualified. A recent study by the Federal Reserve Bank of Boston found that employers responded to the slack labor market by increasing the educational requirements or the number of years of experience required for new hires, which likely froze out many from the labor pool and resulted in the underemployment of others.2 In 2012, roughly 45 percent of college graduates between the ages of 22 and 27 were underemployed, up by one-third relative to 2001 and the highest underemployment rate since the early 1990s.3 Moreover, a recent study by economists at the Federal Reserve Bank of New York found that the Great Recession is prolonging the time it takes for a college graduate to settle into a career.4
Recently, the labor market prospects for young people have started to improve, with the unemployment rate for 20- to 24-year-olds falling about one-third relative to its peak and inflation-adjusted earnings starting to rise. Nevertheless, even with this recent improvement, there is a risk that the high rates of unemployment, low labor force attachment, and stagnant wages experienced by those who have come of age in the years surrounding the Great Recession may have long-lasting consequences. A number of studies have found that graduating from college during a recession can have a lasting effect. If past studies hold true today, the employment rate of those graduating from college during the Great Recession may recover relatively soon, but their earnings may be reduced for up to a decade or longer as this cohort initially secures lower-quality jobs and then only gradually works its way back up to the normal earnings trajectory.5 To the extent that these lost earnings translate into reductions in lifetime resources, they could affect life-cycle spending and investment decisions, topics that I will turn to next.(source)
Hope for the best, but prepare for the worst.
This is a good motto to live by, despite how you think about things.
Individuals can still hope for the best (that things can and will eventually work out), but what good is your prosperity going to do if you don’t have anything to eat or a safe place to hang out for an extended period of time?
Why not prepare while you still can — when things are readily available and can still be purchased at cheap prices? The coming hyper-inflation will make any such purchases beforehand
look very intelligent…
To prepare for the worst, you need a plan. Why are most people so against doing basic preparations that could be the difference on how they survive — or whether they survive?
History shows time and again that those who prepare always fare better than those who did not.
Having a plan and being determined to act on that plan will always be the best way to handle any contingencies, should they occur.
After disaster strikes, your mind is going to be racing around like a car on a race track. Preplanning and having a written set of measures to take will make someone’s life go much smoother when the SHTF.
Other useful resources:
Survival MD (Best Post Collapse First Aid Survival Guide Ever)
Backyard Innovator (A Self Sustaining Source Of Fresh Meat,Vegetables And Clean Drinking Water)
Blackout USA (EMP survival and preparedness)
Conquering the coming collapse (Financial advice and preparedness )
Liberty Generator (Build and make your own energy source)
Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)
Bullet Proof Home (A Prepper’s Guide in Safeguarding a Home )
Family Self Defense (Best Self Defense Strategies For You And Your Family)
Sold Out After Crisis (Best 37 Items To Hoard For A Long Term Crisis)
Survive The End Days (Biggest Cover Up Of Our President)