Our government announced the end of the recession 19 months ago. People make jokes that this statement is correct: we are now in a depression. I personally feel that the definition of a recession needs to be modified to take government spending into account. When our government spends $2 trillion to stimulate our economy with fiat currency, we will see a growth in the General Domestic Product. However, the stimulus does not work for the long term. The bleeding was staunched for a period of time but the bandages are about to be removed. Our U6 unemployment rate of 16.7% is about to explode when bankrupt states start eliminating jobs on a large scale.

www.youtube.com/watch?v=1TQ6NJ5lqFg

The following excerpt outlines a dismal picture for the future of our country. To say that this is again a time that tries men’s souls is appropriate. At no other time in our history will the principles and spirit that made this country great be needed. We will see whether the United States will become united again or will the divisive factors that are facing us everyday succeed in collapsing our nation.

David DeGerolamo

To hear a number of prominent economists tell it, it doesn’t look good for the U.S. economy, not this year, not in 10 years.

Leading thinkers in the dismal science speaking at an annual convention offered varying visions of U.S. economic decline, in the short, medium and long term. This year, the recovery may bog down as government stimulus measures dry up.

In the long run, the United States must face up to inevitably being overtaken by China as the world’s largest economy. And it may have missed a chance to rein in its largest financial institutions, many of whom remain too big to fail and are getting bigger.

On the one hand, Harvard’s Martin Feldstein said he believes the outlook for U.S. economic growth in 2011 is less sanguine than many believe.

First, the boost to growth from government spending will be drying up this year, he said. Renewal of expiring tax cuts is no more than a decision not to raise taxes, and the impact of one-year payroll tax cut is likely modest, he said.

“There’s really not much help coming from fiscal policy in the year ahead,” he said. Woes from the dire situations of state and local governments may actually be a drag on growth, he said.

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