CNN Warns Americans A New Great Depression Is Coming

[zonmoy]

How The Iraq War Destroyed The US Economy

The American economy is propped up on faith and credit, and Wall Street is now in a short supply of both of these essentials. The video below from CNN Money contains the sort of talk that can start runs on banks to withdraw savings and shatter stock markets. That doesn't mean, however, these commentators are not telling the truth.







History will likely record that the "$3-8 Trillion" Iraq War was a key reason why the American economy shuddered to a stop and a new Great Depression began, if the financial genocide continues :

http://yournewreality.blogspot.com/2008/03/cnn-warns-americans-another-great.html

[bdamomma]

1. how many of us already knew that.

CNN blah, just another extension of corporate fascism.

[pbca]

2. I think that's pretty obvious

But I think they are being optomistic, I don't think the US will pull out of the coming depression. I think it will be more like what happened to Russia after the fall of the Soviet Union - a permanent downshifting of the US as an economic power.

[zonmoy]

3. I think it will be even worse than you think though.

I think that it is the beginning of the die off of much of the human race at the end of the age of oil.

[pbca]

5. Maybe

But the "End of the Age of Oil" will affect the US far more than anyone else. Few others are as car dependent consume as many fossil fuel products in other ways.

[zonmoy]

15. I think the biggest problem though is that the entire agricultural system

is completely fossil fuel dependant. when fuel prices get high enough. nearly all the world will starve to death.

[TNDemo]

16. And another scary thing about the food system

is that 98% of the seeds that feed the world are owned by about five chemical companies in the US. I read that in Animal, Vegetable, Miracle by Barbara Kingsolver (great book) and though she was not saying it to be alarmist, I just kept wondering what would happen if someone bombed those companies. That would definitely cause worldwide calamity. And of course those seeds are all patented and GM so you can't save the seeds for the next year. I am a big fan of the heirloom seed societies that are working to preserve the varieties we have. I belong to a CSA and save the seeds from that produce also. But you are right - without gas to transport all that food (and a lot of ours comes from China, even the perishable stuff) we are in deep trouble.

[truedelphi]

25. Wonder what the pro-GMO food crowd here at DU will say when

They finally get it.

[winterlight]

30. I think we Americans spend too much in unnecessary products

And people demand expensive gifts in christmas and Valentines. Consumerism is not a good thing when exaggerated.

[liberal4truth]

40. Its' "Soylent Green" time, IMO. We didn't listen when they told us that there are too many humans...

on this small planet, so now we get to watch as the human race degenerates into savages, and feeds upon itself, now that oil will be priced out of sight and the cost of every consumable goes out of sight.

OTOH, I have heard that roasted human flesh tastes much like chicken, so it may
not be all that bad ;-)

[ayeshahaqqiqa]

4. What will happen with FDIC?

I'm seeing less of a chance on a run on a bank as long as it is in place.

[Old Codger]

6. Faith based

FDIC is run by our government, it is based on our economic strength, if we have no faith in our country and no one else does we are done ... We are pretty much done as a major economic power anyways unless we can rebuild our manufacturing base that has been outsourced.

[formercia]

21. What good will the FDIC be when it costs $250,000.

for a loaf of bread.

Sound outlandish? There are probably a few Germans left alive who can remember when it took a wheelbarrow full of Marks.

[ayeshahaqqiqa]

22. One reason it is a good idea

to stockpile food and seeds and stuff now. We've got our alternative plans for "currency" and it involves a combination of metal and plants.

[formercia]

23. Same here

I save almost all my seeds from year to year.

Plenty of goodies to barter and trade.

I've been expecting this endgame for a long time. people used to laugh at me. Now nobody is laughing.

[CrispyQ]

43. And cigarettes.

I scoffed when I read that somewhere -- someone stock piling ciggies as a good barter item for when times get bad. I'm still not sure what I think of the idea.

[Warpy]

44. I don't think stale ciggies will be much of a barter item

but I'm not a nicotine addict, so what do I know?

[CrispyQ]

47. That was my first thought.

But I remember how ansty my mother would get by the end of a meal in a no smoking restaurant.

[ixion]

7. and you can thank CNN for helping to make it possible

I can only hope one of the repercussions of the depression is the end of FAUX and CNN and the rest of the neocon enablers.

[reprobate]

38. Oh, I believe you can count on that! As well as the fall of most large corporations.

With food in scarce supply and money nearly worthless why would anyone go to work? People will stay home, hoard, and protect their homes from those that would take what they haven't earned. Of course, by then the concept of earning anything will be moot.

I think you can count on the general falling apart of our society. Crime will be the most popular work available to most. If you aren't armed and supplied you likely won't keep what you have.

Speculation has been rampant for years now about what would happen should the economy truly collapse. We are likely to see the "Great Dieing". Starvation and crime will take many millions.

But on the bright side, once this period passes, IF it passes, there will be a chance to build an economy based on justice for all, not the ponzi scheme that is called capitalism. If there are enough people left to make an economy work.

[liberal N proud]

8. How will bu$h blame this on the Democrats?

[RonHack]

27. He'll find a way.......

In fact, taking impeachment "off the table" is a good start.

Chimpy: "They didn't get rid of me, and look what happened. It's their fault!"

Gotta love Mr. Responsible there. :P

[Lasher]

33. I've seen this one:

The market is slowing down due to anxiety that we might get a Democrat (sic) president.

That's pretty novel, blaming some future president for Junior's failures.

[YOY]

9. Well there's another hollow "I f***ing told you so" to chock up on my belt

If it does crash I'm socking the first clownshoed asshat that blames it on "liberals."

[Warpy]

18. You'll have to get in line

because every liberal in this country will be lining up for a sock at him/her.

[RonHack]

28. Whadda mean, "a sock"?

I plan to hit the braindead with my Corolla.

Hit 'em once, they never get back up..... ever.

'Course, once oil goes through the roof (as if it hadn't), I'm going to need to modify the engine a tad......

Hydrogen is the way to go, baby!

[Warpy]

31. Since my arthritis is severe

My "sock" will involve an axe.

[On the Road]

10. I Really Can't Understand Why So Many People are Predicting

a collapse. Financial bankruptcies were worse in the S&L crisis of the 80s. Foreclosures also skyrocketed. Oil prices increased more during the 70s. The world economy now is much more robust as a whole.

A recession is overdue. It always feels like a collapse with no end in sight at first, but it bottoms and recovers despite the scaremongering. Do not expect it to be any different this time.

[Turbineguy]

11. It's fear mongering pure and simple.

Expect a bait and switch to get repubs elected.

[girl gone mad]

14. It's the derivatives market this time.

SIVs and other "garbage collateral" instruments are sending shockwaves through the capital markets.

Foreclosures may have skyrocketed in the 80s, but back then housing and it's supporting industries didn't represent such a major part of our economy. We are even more dependent on oil now than we were in the 70s. This worldwide derivatives market, now 6 times bigger than the gross global product, barely existed in its current form back then (Reagan's deregulation laid the groundwork for this mess).

[eridani]

20. Except for a couple billion more people and peak oil n/t

[On the Road]

24. Couple Billion More People Don't Make a Difference

in whethere there is positive or negative growth.

And none of us know whether it's peak oil yet. There were 25 years of very little exploration and investment due to low prices. It was inevitable that that would cause a bottleneck at some point, and it will take years to catch up.

We got through two oil shocks in the 70s. After the early-80s recession caused mostly by 21% interest rates, the economy went on a 25-year boom with two minor setbacks. Maybe it will end, but predictions of doom are a lot older than I can remember. And anyone in any single year betting the farm on those predictions would have lost everything.

That's the danger of these things -- they do affect people's lives. Just as much as Y2K affected people who organized their lives around survivalism.

[A HERETIC I AM]

26. You know, you really have to stop the "being sensible" bit.

Don't you realize it is so much more palatable to think the world is coming to an end?

Shitfire, Ribofunk, get with it.

A rational, logical, reasoned outlook will be mocked. You'll be called a "Plucky bootstrap puller" or perhaps be grouped with the "criminal investor class", whether you are or not.

We just can't have your kind of input, ok?

Now...where did I put those things?.......oh yeah...here they are...


:sarcasm: :sarcasm: :sarcasm: :sarcasm: :sarcasm: As if I needed them.

BTW, I agree with you 100% re: oil. There is a SHITLOAD of area yet to explore that only now is becoming economically and technologically viable to look in. Just wait till they start seriously looking in Antarctica.

[RonHack]

29. Yeah, but do we want to?

Let's face it, even if oil hasn't peaked, it has caused too much trouble already.

We pay for it at the pump, in blood, in economic strength, and in various other ways.

Why not start looking into other sources of energy? As you have noted, technology has comae a long way, and the electric and/or hydrogen car, solar panels for our homes, and other energy-efficient or -generating technologies are more feasible than ever.

One of the big reasons we are suffering through a $100+ barrel right now is because of a "secret energy policy" made by Cheney the Coward, and the other members of the CheneyBush Crime Family.

[eridani]

32. The high prices have not inspired more exploration

That's because the oil companies actually know about peak oil. We know that there is such a thing; just not exactly when.

When you talk of "losing everything," you are talking about bogus wealth. Basic economics is if you can't eat it, drink it, wear it, build shelter with it, or burn it to keep warm, then screw it--it isn't important. When the financial economy gets too disconnected from the basic economy, trouble ensues. Maybe we could reconnect the two by having the joule as the basic world monetary unit.

[On the Road]

35. High Prices Have Not Inspired More Exploration?

Please.

As far as your proposal of creating an abstract currency based on one kind of commodity (energy) instead of one based on all of them -- with none of the superstructure, flexibility, and controls in place now -- now that MIGHT actually result in a catastrophic meltdown.

[eridani]

37. They have in the past--not any more

Our currency is in no way shape or form based on all commodities. I don't get the gold thing at all--energy is vastly more critical to our economy. It underpins everything else.

[truedelphi]

46. The oracle is now putting on her most static pair of socks

And starting to rub them furiously against the shag carpet.

How much do I need to static up to get to one joule??

[Skink]

34. what about the Dollar valuation....

are things not really out of sync.

To me it makes sense that oil has gone way up.

[On the Road]

36. The Dollar Valuation is Painful

but the US is still the world's biggest economic power and is in relatively good shape. I'm actually shocked that the combination of problems in real estate, finance, and oil haven't left more of a mark yet.

Think about this: The dollar has fallen largely because the US is running deficits and borrowing huge sums of money. Once the next president begins balancing the budget and slashing this insanely wasteful Iraq spending, the stage will be set of the dollar to rise again. It may take a few years, but I doubt it's an ongoing trend. The US fiscal situation used to be great and is now average. That's not reflected in the current valuation.

[truedelphi]

45. If it was just the sub prime mortgage market

We could all hold on.

But all these leveraged deals, with Company A buying out Company B, and a few yrs later, Company A is worth 7 Billion dollars - except actuallly there is only 30 million behind the 7 billion.

The margin call went up friday for a cool 325 billion. The banks only hold 285 billion.

Oh wait a minute; what am I thinking: We can just put those 40 billion on the Visa credit card, can't we??

[Hannah Bell]

12. If CNN says it...

my first inclination would be to question the message.

Why would the MSM be selling doom & gloom?

Qui bono?

[On the Road]

48. I Question it Too

A CNN headline can be a good contrary indicator.

[nadinbrzezinski]

13. Did you read the responses on the site?

My god... they are downright hilarious

[CGowen]

41. great stuff

:rofl:

[2Design]

17. took down russia - with afganistan - why not usa - here we go n/t

[Captain Angry]

19. Not so much.

1: They quoted a few people, and got a sound bite out of one of them. His suggestion? Go cash, maybe buy a little gold.

So, you move to cash, and then he talks about inflation. That kills your buying power, and therefore the cash. If you go to his company's website, he's trying to get people to buy his newsletter and complains about the way the government reports its stats. And from the quick glance I did, it's Clinton's fault. (according to his chart.)


2: They brought up the spectre of bank failures, but clarified that it would be small ones.

I don't know what it's like where you are, but the only businesses that sprouted where I am faster than churches, were banks. Banks that I've never heard of, after living in the area for 15 years. It is not hard to start a bank if you have the cash up front to do so. A lot were founded because they could create loans for mortgages and resell them. Many of the new small banks were seeded by hedge funds and large financial interests because they could then create the mortgage themselves. They TOLD the bank what kind of loan they had to sell. So, if a first time homeowner came in, they'd be pitched a loan that fit the security that was being built by the hedge fund. This is how so many people ended up with ridiculous ARM loans with massive early payment penalties.

These banks need to fail. They were created in bad faith with fake money. When somebody goes to a bank, they should have a reasonable expectation that they will speak to somebody with enough of a finance background that they can explain a loan's ramifications. That has not been the case for the last 5-10 years. I know of banks in the area whose loan officers don't even have a degree. They just run a spreadsheet and call it good.



There are major issues in the economy.

1: We produce and export services, but import more products than we export. (Think of how many people make money from ads on a website. That's not exactly sustainable.)

2: Loose lending standards and creation of financial products that their buyers didn't understand.

3: A lack of a unified method for reporting the valuation of companies, property, etc.

4: Without a national health care system, no company in the USA can compete internationally.


Congress is going to fix the wrong problem again. They're going to do something that guarantees a lot of money goes to certain companies and individuals, all at the expense of normal people. But they sure won't do what needs to be done to actually fix the economy in the first place.

[CGowen]

39. Interview with John Williams from Shadowstats.com (43 min)

http://www.supload.com/listen?s=HN4OHG2S8RK2

[mslack]

42. Not sure

While I do believe we are headed into a recession, I do not believe there is a case for claiming a depression is on the horizon. While the fundamentals are not that great, the structure of our economy today is drastically different than it was in the 1930's. However if our current spending and outsourcing is not turned around, there could be a long slow decline in the u.s economy over the coming decades.