Tuesday, Mar 18th - Zero: American Economy

This is starting to get a little scary folks.

In usual fashion, the mainstream media has totally downplayed the truth about what's happening to our economy. But, if you dig around a little bit you can find the real picture, and it ain't pretty, folks.

Our dollar is on life support, the Fed keeps slashing interest rates trying to force us to spend, the government is spending like a drunken sailor, and then turning around and punishing the very people who pay for it all by slashing our tax cuts.

Here's an article that should interest everyone (from a UK paper, they don't mind telling the truth about us):


Wall Street fears for next Great Depression

By Margareta Pagano, Business EditorSunday, 16 March 2008

Wall Street is bracing itself for another week of roller-coaster trading after more than $300bn (£150bn) was wiped off the US equity markets on Friday following the emergency funding package put together by the Federal Reserve and JPMorgan Chase to rescue Bear Stearns.
One UK economist warned that the world is now close to a 1930s-like Great Depression, while New York traders said they had never experienced such fear. The Fed's emergency funding procedure was first used in the Depression and has rarely been used since.

A Goldman Sachs trader in New York said: "Everyone is in a total state of shock, aghast at what is happening. No one wants to talk, let alone deal; we're just standing by waiting. Everyone is nervous about what is going to emerge when trading starts tomorrow."

In the UK, Michael Taylor, a senior market strategist at Lombard, the economics consultancy, said on Friday night: "We have all been talking about a 1970s-style crisis but as each day goes by this looks more like the 1930s. No one has any clue as to where this is going to end; it's a self-feeding disaster."

Mr Taylor added that the problems unravelling at Bear Stearns are just the beginning: "There will be more banks and hedge funds heading for collapse."

One of the problems facing the markets is that, despite the Fed's move last week to feed them another $200bn, the banks are still not lending to each other.

"This crisis is one of faith. We are going to see even more problems in the hedge funds as they face margin calls," said Mark O'Sullivan, director of dealing at Currencies Direct in London. "What we are waiting for now is for the Fed to cut interest rates again this week. But that's already been discounted by the market and is unlikely to help restore confidence."

Mr O'Sullivan added that the dollar's free-fall is set to continue and may need cuts in European interest rates to trim the euro's recent strength against the dollar. "But the ECB doesn't like cutting rates," he said.

The Fed's plan will give 28 days of secured funding to Bear Stearns, which saw its value slashed over the week by more than a half to $3.7bn. JP Morgan will provide the funding, but the Fed will bear the risk if the loan is not repaid. Fed chairman, Ben Bernanke, who pumped $200bn of loans to cash-strapped institutions last week, said more would be available to help others in distress."

I really, really hate to be a doomsdayer, and I don't really think we will be as bad off as during the Great Depression. The main reason for that, though, is because America has become very globalized and there are too many other countries that will try to bail us out. However, to do that, we will be looking at our currency going away and a) being replaced by the Euro, or b) a new North American Union forming and our own version of the Euro coming into play. Either way, it's not good for our country. We won't be able to keep our unique identity as a country of freedoms (which are being siphoned off slowly anyway). Just think what becomes of us if we are joined with Mexico and Canada. Europe has already done it. How far behind can the rest of the world be? There are 10 geographical unions that make sense from an economic and cultural standpoint. We know it is going to happen, read Revelations.

Okay, back to our current situation. We are heading into a recession and I have no confidence in our current House and Senate to fix the situation. NONE.

So, in the meantime, start to buy an extra can or two of veggies and tuna during your weekly grocery visits. Some powdered milk and bottled water. Ammunition if you have a gun.

No, not because I think 'the end is near' and Red Dawn is coming... Because if the economy gets much worse before it gets better, you may see rationing happening. In fact, already there are gas stations here in NWA that will only sell $49 in gas per purchase. You may see utilities prices go up, or the infamous 'rolling blackouts'. Banks could be in trouble and business bankruptcies will definitely be a reality.

Just be smart and keep your eyes open. Don't be lulled by the soft songs of the Media, fooled into thinking everything is all right.

Peace, Love, and GOD,
Tracy