Coming Soon- The Greatest Depression by slaveofone
Well, I thought I’d end 2007 with a doom and gloom prophecy for the U.S. economy. If you aren’t aware of what’s being going on, you’ve been living in a hole in Pakistan. The biggest housing bubble in U.S. history has popped. The banking system is going down in flames. The Fed is trying desperately to bail banks out by injecting billions into the system and lowering interest rates. This is devaluating the U.S. dollar at an incredible rate and sending inflation soaring. And since all this destruction of the dollar hasn’t helped a bit, the Fed has now promised to unload $40 billion more and will probably lower interest rates further. California had a large hand in boosting the economy as the center of the housing bubble buildup. But now California is the center of the mortgage and housing meltdown and is facing a projected $14 billion dollar budget shortfall next year because of it. The Governator recently said he will declare a fiscal emergency
in January. California, the biggest economic player in the U.S. economy, will bring down the rest of the nation’s economy just as it propped it up previously. The transportation industry is facing a crisis. Oil prices have shot to astronomical levels. We are spending hundreds of billions of dollars more than we ever have before in the history of our nation to police and wage war against other countries. Foreign nations who might have otherwise helped support our economy from outside are being scared away as the dollar decreases in value and interest rates fall.
If this continues, I predict a stock market crash and an economic recession sometime between 2008 and 2011 that will make the dot-com fallout seem like a sniffle and the Great Depression like a bit of a cough. Peter Spence, a leading economist in Britain agrees with me: The Government must suspend a set of key banking regulations at the heart of the current financial crisis or risk seeing the economy spiral towards a future that could make 1929 look like a walk in the park.
The economist Ludwig von Mises has this to say: There is no means of avoiding the final collapse of a boom brought on by credit expansion. The question is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
My advice: Invest whatever money you’d like to keep in foreign currencies and stocks ASAP. Not only will it be there when the economy rights itself, but it will yield returns you couldn’t dream of. And don’t even think about purchasing a home in the next three years.