RESECESSION IS WHEN OVER PRODUCTION AND EXPANSION GET OUT OF CONTROL...
DEPRESSION IS WHEN THE GLOBAL ECONOMY'S "TECTONIC PLATES" PERMANENTLY SHIFT...
IN THE 1930'S THE SHIFT WAS AWAY FROM THE UK AND EUROPE...AND TOWARD THE US ECONOMY...
IN THE DEPRESSION OF THE 2000'S...IT WILL BE A SHIFT AWAY FROM THE US...(WHICH IS A MACROECONOMIC BASKET CASE) .....TOWARD CHINA, INDIA AND THE OTHER LOW WAGE/COST PRODUCING NATIONS...
WHAT HISTORIANS WILL WONDER ABOUT IS WHY THE US GAVE UP IT'S ADVANTAGE SO EASILY.... I MEAN WALL STREET AND WASHINGTON ARE IN LOVE WITH COMMUNIST CHINA!! WHAT GIVES...? WHY DID THEY DO THIS...?
WELL, IT WAS TO DEFEAT THE UNIONS...AND THE NEED TO PAY A LIVING WAGE...
FREE TRADE IS ALWAYS A "POLITICAL CHOICE"...IT REALLY HAS NOTHING TO DO WITH ECONOMICS...AND IT NEVER HAS...IF YOU READ UP ON THE HISTORY OF FREE TRADE...IT'S ALWAYS POLITICAL...
THE PROBLEM NOW IS THAT THE UNIONS HAVE BEEN DEFEATED AT LEAST IN THE US AND UK...AND NOW THE DEBT AND DEFICITS ARE STARTING TO BITE...
WHAT TO DO...?
WELL, GENTLE READER, THAT IS GOING TO BE WHAT THE HISTORY OF THE NEXT 10 OR 20 YEARS IS ALL ABOUT...
NOW WHAT? WHAT NEXT?
MY HUNCH IS THAT THERE WILL BE A PROGRESSIVE AGENDA IN THE US...THAT WILL GOVERN THE ECONOMY "AS IF" PEOPLE MATTERED...AGAIN!!! AND NOT JUST CORPORATE PROFITS...
THE RICH WILL BE TAXED UNTIL THEIR EYES CROSS... YES, THE 1% WHO NOW RECIEVE 25% OF THE NATIONS INCOME WILL BE IN FOR A HARD TIME... BUT SOMEHOW THEY WILL SURVIVE...ALBEIT WITH FEWER BILLIONS IN THE BANK...OR SPECULATING IN THE COMMODITIES MARKETS!!
THE INEVITABLE IS UPON US...! SOONER OR LATER...IS NOW!!
BASICALLY...GO TO GOLD AND HANG ON FOR THE RIDE... I MEAN IS THERE REALLY A CREDIBLE ARGUMENT AGAINST GOLD...? OK THE B-MAN HIKES RATES TO 7%...MAYBE...
BUT WITHER THE ECONOMY THEN...!!
