Twitter   RSS   Email  

 How the Global Economy is Dependent on Christianity

 Why America May Never Recover From the Recession

 Save Money Homeschooling

The Imminent Crash

By: Steve Johnson

2/6/2008 - 14 Comments

I would like to think that we as a nation learn from history, but that is just not the case. 

The government has repeating the same mistakes made in the 1920’s and 1970’s, creating financial bubbles that eventually pop.

Bernanke & Co. is following the same path last week with an emergency 75 basis point rate cut and a 50 basis point kicker on Wednesday. Not to be outdone, the House of Representatives and the Bush Administration slapped together a $150 billion “stimulus package”.

This is absolutely crazy.  They are only temporarily delaying the coming recession and in the process, creating a much bigger problem that will only lead to a much deeper recession. The value of the dollar is about to plunge – which is sure to drastically reduce many people’s savings and retirement funds and create a huge spike in inflation. 

I’m not sure why everyone is going along with this, but this is surely going to lead to a financial crash. I just don’t see any other way around this.  This is perhaps the biggest financial crisis since the Great Depression.

Instead of spending the nation into bankruptcy, we need a national movement to cut back and get out of debt.  The housing bubble has burst and the Fed is once again slashing interest rates and printing money to encourage more SPENDING.  The country is in desperate need of a period of saving and economizing.  Yet they are encouraging the opposite behavior.

The smart money is getting out of US dollar investments and into foreign assets or currencies, as investors Jim Rogers and Peter Schiff are suggesting.

Reference article: It’s going to be much worse

But the little guy doesn’t have any money to move and the middle class has their money trapped in their 401k invested in the dollar traded US stock market. If the value of the dollar drops by 10% this year, then your stock values have to increase by 10% just to break even. 

Some people say that the value of the dollar doesn’t matter. The reason they say that is because they don’t see anything changing. However, inflation is coming with a vengeance. China is projected to increase their product costs by 10% this year alone. 

Reference article: China Inflation Spike Set to Rock U.S. Consumers

During the 1980's recession, the annual inflation in 1979 peaked at 13.3 percent and annual unemployment reached 9.7 percent in 1982.  It may take a few more years before inflation gets this high, but there is no doubt that it is coming, and when it gets here we will be talking about how stupid Bernanke & Co. was for what they just did.

Copyright © 2022 All rights reserved.

Empire of Debt

Many Americans have resisted the notion that their country is an imperial power. The idea seems to contradict the values of the Republic and its Founding Fathers. But in Empire of Debt, prominent financial analysts Bill Bonner and Addison Wiggin argue passionately that not only is the United States an empire, but it is also one whose end is coming soon.

Crash Proof

Peter Schiff has predicted the economic hardship more accurately then any other economist in the world in this book. Everything from the housing crash to the credit crunch to the stock market. Peter has a plan to help you servive the crash. Peter explains why the Wall Street investment firms are still trying to sell you stocks, and was the house prices are likely to continue to decline for years to come.

The Coming Economic Earth Quake

Larry Burkett explains how the financial troubles in America started back in the 1930s. Larry explains the economics of huge goverment and public deficits and how it leads to hyper-inflation. We may be headed for another great depression.

Nemesis: The Last Days of the American Republic

Like ancient Rome, America is saddled with an empire that is fatally undermining its republican government. Johnson surveys the trappings of empire: the brutal war of choice in Iraq and other foreign interventions going back decades; the militarization of space; the hundreds of overseas U.S. military bases. Retribution looms, the author warns, as the American economy, dependent on a bloated military-industrial complex and foreign borrowing, staggers toward bankruptcy.