UNDERSTANDING OUR PLIGHT
Even a quick look at the above chart gives you instant understanding of why your budget just doesn't cut it anymore. After you factor in inflation you are further behind that your grandpa was during the big one.
So how did we get back it the sane spot as the last depression. The name of the game was the same and they sold it essentially the same way as last time. In 1980 Ronald Regan convinced us that deregulation and huge tax cuts for the rich was the way to go... running up a 3 trillion dollar deficit and large increases in defense spending did create some jobs.. The most damage done in that time period was by Bill Clinton , hands down the winner in screwing the working man. NAFTA , GATT, WTO AND BANK DEREGULATION put in motion that gets us the gears in motion to destroy us.
Blowing bubbles in the economy became the job of the Federal Reserve and they did it with gusto , First blowing a Internet bubble where startup after startup went public in a few months and sold for large sums of money although they have never made a dime and never will. So of course the market blew up. According to the FED there is only one way to recover from a bubble , blow another one and they chose housing this time around. Simply by selling houses to anybody that had a body temp slightly above room temp causing housing prices to skyrocket upwards at 15 to 20% per year to heights unmanageable by the working man. But before the bubble popped they built derivative packages so corrupt making Al Capone look like a nun. Even today an exact dollar amount on the housing derivative market are just guessed at the real number is unknown. With those jewels they brought down the world. Watching much of Europe suffer trying to pay off the bankers that sold they that trash is causing austerity programs that are destroying country after country.
At home millions lost their houses while also loosing their jobs thru the loss of 50000 factories with only some of them replaced by minimum wage jobs.. Here we sit facing the real unemployment rate running at 23% and benefits from the government either being reduced or done away with , putting people on the street and desperate.
Now we are waiting for the final leg down, probably cause by a huge Interest rate derivative package that runs as high as a quadrillion dollars, when it pops it will destroy every bank in the world , one reason you see the rich and corporations holding huge sums of cash. When the world explodes they will buy it up 10 cents in the dollar as they always do. That will put us economically officially in the Second Great Depression.
The way out is generally done in one of two ways.. You spend huge sums on rebuilding infrastructure providing jobs which puts money in the hands of working man and then into the market replacing the stuff they lost in the downturn. Sometimes this escape is aided by a Great War and I hope we don't do that this time.. Either way we will pull our way back to a decent life. Till the next time the big guys go on another rampage.
Somewhere we will find a leader to lead us outta the swamp. There are several out there we just have to get more desperate before we act.. Hang on , help one another , believe nothing you are told till you can verify it.. and then we will be back.