United states heading for a depression??? Your Thoughts?

[AceNZ]

From what I've read, it seems like we're headed toward a hyperinflationary crash. Bernancke has announced his intention to never allow a depression (declining prices). But then I'm one of those "crazy" people who has already sold of his assets in the US and moved overseas....

Yen, Swiss Franc, Yuan are good currencies.

I would avoid the Yuan. China has some severe economic problems that their government is trying very hard to hide. Something like 40% of outstanding loans are in default, many banks are on the edge of collapse. It's not a pretty picture. That's why they can't allow the Yuan to float. A stronger currency would result in fewer imports, which would in turn trigger a banking collapse.

Commodity currencies should do well, though -- like the Canadian, Australian and New Zealand dollars. The Swiss Franc is probably a good option, too, although remember that it's no longer backed by gold as it once was.

Why do you think that? Every economic indicator is very strong. They even revised the Q3 GDP growth rate up to almost 5%!!!!!!!!!!!!!

Remember a "Recession" is 2 quarters of NEGATIVE GDP GROWTH. Now if they are revising figures towards HIGHER growth - we are not likely to experience even a recession, much less a depression.

The published GDP numbers are lies. Here's a graph that shows the true picture. The US has been in a recession since 2004 (actually a double-dip recession):

 

[john_anderson_ii]

Depression? No. Recession? Yes.

 

[Tom228]

Ace I think you miss read the graph. On the Y axis it says "year to year percent change." There's that difference between what the growth precentage is and how much it has gone up or down.

 

[AceNZ]

Ace I think you miss read the graph. On the Y axis it says "year to year percent change." There's that difference between what the growth precentage is and how much it has gone up or down.

What the graph shows is that the real GDP has been declining for the last several years -- which is the definition of a recession. "Year to Year Percent Change" means the change in GDP compared to the previous year. Those are the same numbers that the government reports when they say "the GDP has gone up by 5%" -- they mean that it's gone up by 5% compared to the previous year (except their numbers are gimmicked...).

This is explained in detail on the website that the graph comes from: http://www.shadowstats.com/

 

[autobot]

bump

 

[jonahtrainer]

does anyone here think it's a bit ridiculous that people are predicting doomsday?

Depression? Famine? All this seems a bit extreme. It's like predicting there's going to be a major flood even there's only light rain.

We are already in a massive crash. Gold is the risk-free rate not T-Bills; the wise investor has changed measuring sticks. The US stock markets are down 65% in terms of gold since 2000. RE is down about 55%. All fiat currencies throughout the world are fading against gold. See charts here.

The central bank manipulation of the gold market is undeniable and any who deny are either complicit or ignorant. The case is pretty much cracked. That the rig will fail to market forces is certain. As far as what the effect will be no one knows nor can they tell. What we do know is that there will be a lot up for grabs all at once.

For those who know what is coming the rain drops portend a much larger and fiercer storm than the world has every seen: the collapse of a worldwide monetary system. Because it is based on the US$ America will be ground zero of the collapse. There are some prepared to go far away and batten down the hatches while the storm blows over.

Perhaps the best answer is to begin the transition to a new form of currency; the digital gold currencies.

Either way, we are in for some very rough times. The best place to have capital allocated is in cash denominated in gold.

 

[AceNZ]

Use caution with digital gold.

The government likes to claim that they are used for money laundering, etc, and confiscated everyone's account e-gold.com as a result.

 

[Carole]

Please read this and view video. I wrote synopsis of video on that post. Would very much like qualified people to respond to it since I am not qualified. Just a normal person here with a little comon sense.

http://www.ronpaulforums.com/showthread.php?t=88252

Personally, I can tell you we are in and have been in a recession for a while. I am retired on fixed income and it is tough. Prices daily going up, inflation rampant, taxes going up,etc.

I believe our government has made every effort to hide truth about our economy for years. They did away with CPI, now they hide MP3, they continue to try and place band aids with adjusting interest (printing money) to bail out banks and others, they made a law to force lenders to lend mortgage money to non-qualified borrowers knowing they would eventually default. ARMs are nothing but a trap to steal people's money and property. It is the scariest flim-flam scheme I have ever heard of and one I ran away from in favor of a fixed mortgage first time I bought a home. Big banking knew these ARMs would eventually create a problem and then the vultures could come in and buy up the smaller lenders, in effect doing away with their competition and enriching the big corporations. Why else would there be a law to "force" lenders to make bad loans??

Be careful about gold though. It was used as a trap for the shieks apparently and at the right time the World Bank/IMF can drop the price at will as they did with them.

We are in serious economic difficulty and it is no accident. Just my opinion.

 

[markpa]

Every statistic I see leads me to believe that we are heading towards a "crash" and with Gold over $900 this morning I'm inclined to believe it's already begun.

Having said that I think all of the talk about the end of the world type scenarios is going to far. Why would the water stop running or the plants stop producing electricity just because the currency and markets take a dive? Look at the collapse of the Soviet Union, times were extremely hard for them but there wasn't mass starvation or anything.

I believe it WILL be worse then 1929 but for most of us life will go on. It will be much harder and we will be much poorer but life will still go on.