Economy:The Hammer's Falling

[Charnock]

Four years ago, on this very board, I posted that we were about to enter recession, and that the American nation would be changed radically, and forever.

At the time, many posters mocked me. Time proved all.

Economists say we exited the worst economic downturn since the Great Depression in 2010, and there is no doubt our GDP has been in the black, albeit just above it. However, new government numbers now show that our GDP for the first half of this year grew at only .8 percent.

Coupled with a very weak job market, and weak global economies, it is clear that we never really left recession. It is my belief that the stimulus package falsely inflated GDP. Now, the life support is gone, and the economy is refusing to breathe on it's own.

This is going to get bad. Very, very, very bad.

We are in the midst of a depression. By the time this is over, I expect unemployment to rise further, inflation to go higher, and many, many people to be hungry and without shelter.

Now, many of you will call me Chicken Little, and that's fine. For the rest of you, those with a functioning brain, I recommend that your prepare accordingly.

Store up food. Pay off bills. Secure your home.

in 2008, a shoe dropped. This time it's a hammer.

[Hoovie]

I like jab you sometimes Charn, and thought about posting something that would trigger another response...

But this time I'll just agree. Maybe not a sledgehammer, but a hammer nevertheless. Depends on what specifically you mean by very very very bad.

Want to step out and give some predictions?

[Charnock]

Originally Posted by Hoovie

I like jab you sometimes Charn, and thought about posting something that would trigger another response...

But this time I'll just agree. Maybe not a sledgehammer, but a hammer nevertheless. Depends on what specifically you mean by very very very bad.

Want to step out and give some predictions?

Cash is about to become meaningless. Very few will have it, the few that do will be unable to afford anything extra, and banks are going to start charging people to hold it.

Multiple families will live in one home.

The homes that werenot lost to foeclosure will struggle to survive property taxes.

There are going to be food shortages.

I am seeing more and more people engaging in old time bartering.

[Hoovie]

Originally Posted by Charnock

Cash is about to become meaningless. Very few will have it, the few that do will be unable to afford anything extra, and banks are going to start charging people to hold it.

Multiple families will live in one home.

The homes that werenot lost to foeclosure will struggle to survive property taxes.

There are going to be food shortages.

I am seeing more and more people engaging in old time bartering.

Indeed, this would mean more hardship. Also, moral quandaries. bartering is illegal unless reported. Technically the Amishman that benefits from an old fashioned barn raising is required to report the estimated "value gained" by the donated event.

[Dagwood]

I'm inclined to agree, Chanock. Times are extremely tough. All of what's going on is messing with not only people's welfare/well-being/lifestyle/etc, it's messing with the mind too. I think, though, while it may appear we're heading for a downward spiral, God should be hearing from us more and more, whether to give Him thanks or ask for what we're in genuine need of; He's the only One we've got to rely on to get us through what we could be facing on the horizon...

[Hoovie]

From my perspective I am seeing this happening. Specialty retailers that I deal with are changing the way they do business. Where they used to buy huge quantities to get better pricing they are operating bare bones. Rather than stocking $200,000. in inventory they are stocking $20,000.

The future is too uncertain and volatile, and the market is currently very unpredictable by anyone's standards.

[Sam]

Just remember..

It's all George W. Bush's fault

[Charnock]

Originally Posted by Hoovie

Indeed, this would mean more hardship. Also, moral quandaries. bartering is illegal unless reported. Technically the Amishman that benefits from an old fashioned barn raising is required to report the estimated "value gained" by the donated event.

I don't think hurting people will care about legal technicalities as times get even harder. Especially when the people paid to enforce the law are hurting too.

[Charnock]

Originally Posted by Dagwood

I'm inclined to agree, Chanock. Times are extremely tough. All of what's going on is messing with not only people's welfare/well-being/lifestyle/etc, it's messing with the mind too. I think, though, while it may appear we're heading for a downward spiral, God should be hearing from us more and more, whether to give Him thanks or ask for what we're in genuine need of; He's the only One we've got to rely on to get us through what we could be facing on the horizon...

Amen.

[Charnock]

Originally Posted by Hoovie

From my perspective I am seeing this happening. Specialty retailers that I deal with are changing the way they do business. Where they used to buy huge quantities to get better pricing they are operating bare bones. Rather than stocking $200,000. in inventory they are stocking $20,000.

The future is too uncertain and volatile, and the market is currently very unpredictable by anyone's standards.

People aren't spending like they used to either. They sense a shift. They are adjusting everything.

I read a paragraph from a CNN story today that said that 1 in 7 Americans is receiving food stamp benefits. Also, 25 million people are out of work, or are working part time because they can't find a full time job. That is roughly 1 out of every 12 Americans who are unemployed or underemployed.

Gold and silver prices are through the roof. That is a sure indicator of the current economic mood.