THE AMERICAN CONSUMER HAS BEEN LIVING OFF ASSET BUBBLES-- NOT WAGES FOR A LONG TIME...
THAT ENDED SUDDENLY IN 2008 WITH THE HOUSE PRICE COLLAPSE...
PRIOR TO THAT, CONSUMERS LIVED OFF THE NAZZ DOT-COM STOCK BUBBLE...
PRIOR TO THAT, IT WAS THE CONSTANT RISE IN MULTIPLE EXPANSION IN STOCKS IN GENERAL...
PRIOR TO THAT, PEOPLE LIVED THE "OLD FASHION WAY" ...OFF THEIR WAGES AND JOBS.
UNFORTUNATELY, IN THE PROCESS OF CREATING THESE "GREAT BUBBLES" OF THE 1990'S AND BEYOND...THE WELFARE SYSTEM FOR PEOPLE (NOT CORPORATIONS) WAS RIPPED UP...
IN TRUTH THE LOWER THIRD OF US CONSUMERS HAVE BEEN OUT OF THE CASH ECONOMY FOR SOME TIME...
HENCE, THE POPULARITY OF THRIFT STORES; AND RETAILERS LIKE "FAMILY DOLLAR" AND THE LOW END FOOD RETAILERS.
ADDITIONALLY, THE BANKS AND CREDIT CARD ISSUERS WENT IN FOR THE KILL ON THE CONSUMER BY REVISING THE BANKRUPTCY LAWS... TO NOT PERMIT "WORKING PEOPLE" FROM GOING BANKRUPT...
ADD TO THAT THE MASSIVE INCREASE IN COST OF HEALTH INSURANCE...
AND YOU HAVE A TOXIC BREW CALLED THE "GREAT DEPRESSION OF 2008"...
THE GREAT DEPRESSION OF 2008 WILL LIKELY LAST FOR A VERY LONG TIME...FIVE YEARS ....TEN YEARS?
I HAVE NOT MENTIONED THE MACROECONOMIC SITUATION IN THE US WHICH IS A TOTAL DISASTER.
ALL INDUSTRIAL CAPACITY SEEMS TO BE GONE... OTHER THAN SOME DEFENSE AND SOME MEDICAL EQUIPMENT...MOST EVERYTHING ELSE IS MADE IN CHINA... OR SOME OTHER LOW WAGE NATION.
THIS IS THE FIRST TIME IN HISTORY THAT A STRONG ECONOMY AND NATION HAS DELIBERATELY "DE-INDUSTRIALIZED" ITSELF...
IN THE OLD DAYS, EMPIRES WOULD KEEP THE HIGH VALUE ADDED WORK INSIDE THEIR DOMESTIC ECONOMY AND USE THE "COLONIES" FOR RAW MATERIALS AND TO PROVIDE "MARKETS" FOR IMPERIAL GOODS.
INTERNATIONAL CAPITAL HAS PRETTY MUCH REDUCED THE US ECONOMY TO A HOLLOW SHELL.
THE REAL ENEMY IS INTERNATIONAL CAPITAL AND GLOBALISM...WHICH DUPED AMERICANS INTO THINKING THAT THEY WERE "EXCEPTIONAL"...
AMERICANS DID NOT NEED TO "PRODUCE" BECAUSE THE WORLD LOVED THE AMERICAN DOLLAR SO MUCH IT WOULD DO ANYTHING TO GET EVER MORE DOLLARS...
WELL, THAT WAS TRUE UNTIL SUDDENLY LAST SUMMER WHEN THE DOLLAR FELL AND GOLD AND OIL SOARED...
THE HISTORICAL IMPORTANCE OF OUR LITTLE SUMMER "$4 GAS" EPISODE...IS AS YET UNRECOGNIZED BY THE ECONOMIC COMMUNITY.
THEN, CAME THE MASSIVE LIQUIDATION PANIC OF SEPTEMBER AND OCTOBER 2008...
THE DEMAND FOR DOLLARS SKY ROCKETED...
AND FINALLY THE BAILOUTS AND THE MASSIVE MONEY PRINTING STARTED UP...
NOW...JUST IN THE LAST FEW DAYS...THE SUMMER RUSH OUT OF THE DOLLAR ....AND BACK INTO GOLD AND OIL HAS STARTED UP AGAIN...
THE BEST ANALOGY IS THE SINKING OF THE TITANIC. CONSIDER:
LIKE THE TITANIC...THE SINKING OF THE AMERICAN ECONOMY IS HAPPENING TO TWO SEPERATE PHASES...
FIRST, THE "TAKING ON WATER" PHASE...
THEN, FINALLY AND FATALLY, THE SHIP SPLITS IN TWO...AND THE ULTIMATE DISASTER...THE FATAL PLUNGE!!
SO TOO, THE AMERICAN ECONOMY "TOOK ON WATER" IN THE FALL...AND BRIEFLY EVERYONE THOUGHT...
THIS WILL STOP... A MASSIVE LIQUIDATION PANIC IS OCCURING...AND THE SUDDEN DEMAND FOR DOLLARS WILL---"HOLD US UP"...AND THINGS WILL BE 'OK'...
BUT IN 2009...THE FINAL "SPLIT PHASE" WILL KICK IN...
THE SHIPWRECK OF THE AMERICAN ECONOMY IS AN ON GOING NEWS STORY...
STAY TUNED IN 2009...BOOKMARK THIS PAGE..AND CHECK BACK DAILY...
YOU DARE NOT MISS A SINGLE INSTALLMENT OF THIS HISTORIC EVENT.
