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US VP Biden Confirms USA entered depression

joker biden

But the problem is particularly acute in Michigan, which has lost 231,000 auto and parts manufacturing jobs. That is 72 percent of the 320,600 auto-related manufacturing jobs the state had in 1999.

Today US Vice president admits on a news interview that the USA has officially entered a depression. In a commentary on Sean Hannity’s show (video below), he demonstrates to viewers Biden’s comments regarding the current status of the economy and continuously used the phrase “it’s a depression; it’s a depression” to refer to the United States economy. You saw it here on first, folks.

Indeed, what we are currently in is deep depression, but the final result will be determined by economic historians in years to come, but this disorder is not a failure of capitalism. It’s a regulatory failure. The United States and European banking systems are highly regulated by various public and private. These organizations not only missed serious problems with bank balance sheets, they have encouraged practices that lead to this fiasco.

The IMF conducted a full audit of the entire U.S. financial system, and therefore has a clearer idea of American finances than any other organization. The fact that the head of the IMF is saying that the world’s advanced economies are already in a depression that has a lot of weight. He is not alone. The following people have also said we’re already in a depression:

  • Chief Economist of Merrill Lynch
  • The former chief economist at the U.S. Commission on International Trade
  • Nobel economist Joseph Stiglitz
  • Former Secretary of Labor
  • Prime Minister of the United Kingdom
  • Leading investment advisor Ray Dalio
  • Well-known investment advisor Doug Casey
  • And many others (thanks to georgewashington2 for this little bit of information)

    Many economists and analysts believe it will actually even worse than the Great Depression.

    Capitalism & Depression

    What does capitalism has to do with the failed banking system? First, private banks were regulated and the degree of regulation does not correspond well to the extent of the trouble they were in. The European banks, which were more heavily regulated in the debt ratios that were greater than those of their American counterparts and are at least as much trouble. Second, funds managed by the state banks were in just as much trouble as their private counterparts.

    What we really saw was the failure of statism and the intellectual collapse of the dominant Keynesian economics and monetarism. The simple fact is that government’s growth and the steady growth of money supply by central banks created the massive bubble that had to be corrected. The solution is not more action by governments and central banks, let the market clear the malinvestments so we can start over again. The solution will not come from following the Hoover / FDR way but taking the one chosen by Harding.

    Contrary to what we are told on television and the news media, this recession is not over yet. You can not really compare the current statistics, such as unemployment and GDP, and compare the statistical peak of the Great Depression to argue that the current slowdown looks nothing like the Great Depression. Of course, the term “peak” of unemployment during the Great Depression may have reached 25%, but before he reaches 25% it should be increased to 9%.

    I hope that one result of this recession will be that people start to worry about the size of enterprises as far as it pretends to care about the size of government. The risk that large companies pose to people is much greater than the benefits they provide.

    The wonderful thing is that they will go back and revisit later, these early estimates of GDP. If you follow the initial estimate of the Federal Reserve GDP growth for a quarter estimate to date, the reported number, and the subsequent revision, you will find the average change over the first figure reported is something like 100%.

    Conditions in the USA

    Our actual unemployment is closer to 25% if you include the discouraged and those profits. House Third World countries in tents or huts. So we are in a depression, or we are a third world country. The celebration continues in Washington. Flourish in other parts of the country, layoffs.

    The decline in manufacturing employment is one of the main reasons for wage stagnation and/or decline for the middle and working class. The decline in manufacturing, which can be exported, is a big reason for the US trade deficit, and that has caused endless issues.

    Economists offer gloomy outlook for unemployed Michigan autoworkers

    Full article By Rick Haglund
    October 09, 2009, 1:59AM

    DETROIT – A multi-pronged effort is needed to find new work for the hundreds of thousands of Michigan residents left behind by the auto industry’s collapse.
    ,Economists and other business and labor experts offered a mostly gloomy outlook for unemployed autoworkers and others, especially those with little education and few technical skills. They shared their thoughts at a conference Thursday on automotive communities and displaced workers at the Federal Reserve Bank of Chicago’s Detroit Branch.

    “The whole country is down,” said William Testa, an economist at the Federal Reserve Bank of Chicago. “There are very few prospects for employment.”
    Retraining for new jobs in health care and other fields has promise, but also limitations, other ts said.

    Health care, the only significant area of job growth in recent years, could shrink as workers in the state lose health insurance, said Kristin Dziczek, director of the labor and industry group at the Center for Automotive Research in Ann Arbor.

    Many displaced workers who retrain for jobs in other industries can expect to make far less than in an auto job at a Detroit automaker or large supplier, said George Erickcek, senior economist at the W.E. Upjohn Center for Employment Research in Kalamazoo.

    “The real challenge is many of these workers are going to take a hit in income,” he said. “I don’t think there’s any way of saying that nicely.”

    Nationwide, federal statistics show that there is just one job opening for every six unemployed workers.

    But the problem is particularly acute in Michigan, which has lost 231,000 auto and parts manufacturing jobs. That is 72 percent of the 320,600 auto-related manufacturing jobs the state had in 1999.

    Michigan’s unemployment rate of 15.2 percent in August was the highest in the nation.
    “We’ve not seen the bottom yet,” said Mark Gaffney, president of the Michigan AFL-CIO, which represents 450,000 workers in the state.

    He predicted 80,000 of his union’s members will lose their jobs over the next 18 months.
    “This has been one of the toughest times for our folks that they have ever seen,” Gaffney said.

    Debt-laden businesses and consumers, continued tight credit and more auto industry downsizing likely will suppress job growth as the overall economy recovers, several economists said.

    “It’s going to be a very long, slow, drawn-out recovery,” said Kenneth Beauchemin, an economist at the Federal Reserve Bank of Cleveland.

    You can get the full story at

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  1. howdy howdy April 8, 2010

    The author’s grammar is awful. “Children must go home to a tent that had a house to come to school some time ago.” WTF? That’s just one example. If your going to write about something as important as this, at least take the time to proof read it before submiting. Damn.

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