How Do We Cope With Depression II?
By Daniel at 6 November, 2008, 11:18 pm
I have a feeling that this recession is going to be deep and very long and unlike what I have experienced in the last 37 years. This recession is not only national but global in scope. There is also a possibility that we may be entering a period of Deflation in the economies of the world.
Unemployment and consumer spending may become much, much worse. And It turns out to be another depression since 1929. I think we may not be able to recover from the coming depression. In the past we have always had a large amount of net capital and it was the American capital which brought the world out of the recessions and depressions. Today America is the largest debtor nation in the world. We have no net capital. Whatever money we use to try to bring us out of the depression will have to be borrowed.
We are currently sending six billion dollars per day out of our economy. We are continuing to increase our indebtedness. We are having to borrow from the Chinese just to pay the interest we owe on the national debt. We will soon lose our ability to borrow any further funds. When this happens we have nothing left to stop the depression. We then become a second level country with a much shrunken economy with a much lower standard of living. We will be similar to Brazil.
Look about at all the imported cars and other imported goods and the imported oil we have consumed. You are looking at what used to be our capital. We have wasted our capital on imported depreciating and wasting assets.
It is essential that every American begin to make a conscious effort to buy American products to prevent our capital position from becoming even worse. This won’t save us but it may lessen the severity of the depression.
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