We are in a depression and do not even know it

[mystery-ak]

February 4, 2024
We are in a depression and do not even know it
By Dann E. Kroeger

We are in a depression and do not even know it.

In a recent Harvard Business Review (HBR) article, “What Causes Inflation,” Walter Frick describes some of the economic forces that often create sustained inflation.

It can happen when a critical supply becomes suddenly scarce, such as the Arab oil embargo of 1973.  Prices advanced, limits were placed on the amount of gas you could purchase, and lines of cars formed around all gas stations.  We were beset with inflation exceeding 18% at times, and it took a decade for inflation to subside.

It can happen when economic expectations do not meet reality or when economic shock occurs.  The 2007–2010 Great Recession is a prime example.  The trading of mortgage-backed securities (MBS) became extremely popular on Wall Street during the late 1990s and early 2000s.  These securities were originally rated AAA by the bond rating agencies, and their popularity increased.  Gradually, however, to earn higher yields, a portion of the MBS packages would contain a few subprime home loans.  This practice grew until soon Wall Street had grievous amounts of MBS, not rated, on their books and with clients.  A small and intelligent group of individuals spotted this financial weakness and “shorted” the MBS market.  This immediately created the largest financial crisis ever on Wall Street.  Because the investment banks were “too big to fail,” it took monumental giveaways from Uncle Sam — some say $12 trillion over a decade — to put the banking system back on its feet.

more
https://www.americanthinker.com/blog/2024/02/we_are_in_a_depression_and_do_not_even_know_it.html

[jafo2010]

The collapse of 2008 is largely due to the IDIOTIC push by Republicans when Clinton was POTUS to repeal the Glass Steagal Act, which came about from THE GREAT DEPRESSION to keep separate BANKING FROM INVESTING FROM INSURANCE money.  The idiot Republicans repealed this act, and opened Pandora's Box for huge collapse.  And that door is still wide open and will bring about an economic collapse that makes THE GREAT DEPRESSION look like the good ole days!

The depression has not hit YET!  But it is coming, and when it comes, it will be like a tsunami that destroys everything in its path.  It could trigger massive death throughout the world, which the wealthy/power brokers want.  And when I say massive, I mean like 80% of the population in the USA, from starvation, exposure, murder, disease, etc