Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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FDIC wants your retirement cash to save banks: Bloomberg

FDIC wants your retirement cash to save banks: Bloomberg

“The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,” FDIC spokeswoman Michele Heller said in an e-mailed statement. “We welcome and work

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Canadian government admits recovery never happened

Canadian government admits recovery never happened

“Not only did their stimulus fail to create the jobs of tomorrow, it also failed to protect the jobs of today,” Scott Brison, the opposition Liberal Party’s spokesman for finance issues, said by telephone. "Most of us were shaking our heads in disbelief early last year w

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Content By: The Coming Depression Editorial Staff (dates cited below)
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usa flag pin made in china

“What we need are consistent job gains, not just a month or two,” said Richard DeKaser, chief economist at Woodley Park Research in Washington, whose confidence forecast was the lowest of those surveyed. “Until we get that, I don’t think we’re going to see any gains in consumer confidence.” — BusinessWeek

Confidence among U.S. consumers sank in June more than forecast as Americans became distressed over the outlook for jobs and incomes.

Stocks plunged as the confidence data, combined with Conference Board figures showing China’s economic outlook improved less than previously estimated, added to concern the global economy is slowing. Unemployment and the turmoil in financial markets precipitated by the European debt crisis raise the risk that household spending will falter.


Some will say that Communist China is the problem. If they let their currency acquire value for their citizens to purchase our manufactured product and create their own domestic consumer society then the world would balance out financially.

There exist more Chinese (1.2 billion or 700 million worker drones) than the 300 million population in the US and they can’t be dependent on keeping 1.5 billion of them servicing the US’ small market. Dumping occurs with slews of cheap product which translates into North American shop-a-holics financing the spending with credit card debt. The end result will be bankruptcy “Made in Communist China” style.

China needs to create social safety nets to encourage its own to go out and spend and create a consumer market that sustains itself and participates ‘fully’ in the world’s economic health by buying from the world. Enough of this B.S. that is destroying us..they don’t need to leech off of our markets when their population is so huge as to sustain its own growth.

Others still will argue that it is not because of China. The American government debt is well over $50,000 per American citizen (unofficially it’s in the 100,000’s per person). Western governments seem to think that it’s acceptable to go into deep debt today, cause inflation tomorrow, then repay the debt in the next decade with inflated dollars. China is using intelligent economic practices and refusing to participate in the western government culture of accumulating massive debt then causing inflation to diminish the debt.

Also, if China rapidly increased the value of its currency it would wipe-out all the savings of its citizens and devalue all the American Treasury bills/bonds that China bought. Instead of the West trying to force China to adopt western monetary practices, it’s time for Westerners to adopt the intelligent eastern practices of less debt and more intelligent governments.

On the same token, the Chinese fixed currency policy is one of the major causes of the current economic dislocation affecting the global economy. The Chinese have to decide if they are part of the world economy or if they are going to shrink back behind the wall. They can’t have it both ways.

In the last growth cycle, the Chinese made more durable goods and sold it to more people around the world. If they were fully integrated in the world economy, that would have lead to an increase in the value of their currency and, subsequently, a decrease in the relative competitiveness of their products; thus shifting some of the production back to where they stole the business from. By artificially keeping their currency low, they are effectively conspiring to wipe out industrial production in other countries.

retail outlet store sign half price

It may, in the short term, benefit them by creating employment (they have 700 million working age people) and growth domestically, but if they harm the economies of other countries too much they will find themselves without customers for their “stuff” and how will that work?

Oil Spill adds to worries

The biggest declines in confidence were in regions that include Louisiana, Mississippi, Alabama and Florida, the Gulf Coast states that are suffering through the worst oil spill in U.S. history. The April 20 well blowout that destroyed the Deepwater Horizon drilling rig and killed 11 of its crew has polluted beaches and caused job losses along the Gulf Coast. BusinessWeek

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  2. China ready to drop dollar peg“My goal over the course of the next year is for China to recognize that it is also in their interest to allow their currency to appreciate because, frankly, they...
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  4. Is China to blame for the coming depression?Mr Obama, debt is the problem, not China. The American government debt is well over $50,000 per American citizen (unofficially it’s in the 100,000’s per person). Western governments seem to...
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This entry was posted on Tuesday, June 29th, 2010 at 3:25 pm and is filed under Poverty. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Comments

  1. June 30, 2010 @ 6:48 pm


    China? Oil Spill? I don’t think so! Only a fool would decide to buy consumer goods with no job or mortgage areas or negative equity, hell some people have all three. This is a death spiral – spending won’t improve with high unemployment, increases and domestic and commercial foreclosures and so as 70% of the US econony is consumer based this means further contraction. China didn’t depeg the Yaun out of the goodness of their hearts! They can see that a dollar collapse is down the road so they are gradually detaching themselves without causing a panic – when the dollar falls they will lose a lot of loaned money but at least they won’t go down with it, it’s all surpless money to them that they can afford to lose. China’s government has more sense and a longer memory than westerners give them credit for.

    Posted by LJE
  2. June 30, 2010 @ 6:56 pm


    You are very right LJE. China remembers having opium dumped into their country by the British (West) in the mid 1800s and they remember Western influence well. It is payback time for us in the Western countries.

    Posted by Jason

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