Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Moses (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Is the Recession Here?

% of readers think this story is Fact. Add your two cents.


I believe we are just about in recession. U.S. personal income in August fell for the first time in 2 years, as did wages. The unemployment rate refuses to budge downward, and problems in the banking sector are developing. The Occupy Wall Street Movement is gathering steam, and you can bet if the economy were expanding, we would not be seeing this level of civil unrest.

Think about it: if deficits run at $1.5 trillion during an “expansion”, what will they be during a recession? $2 trillion deficits are very conservative. Treasury yields will spike and send interest expenditures on our debt flying, which will crowd out spending for Social Security and Medicare. Boomers will therefore have to cut spending at a time when they should be supporting the economy. Youth unemployment is a full blown crisis, especially because of the amount of debt college grads carry. Make no mistake about it, the debt crisis is upon us.

We need to develop new solutions and not just focus on monetary policy. The past couple of years have proven that lower interest rates don’t necessarily fuel economic growth. Where there is no confidence, there is no investment regardless of interest rates. Furthermore, when the economy fundamentally shifts, which requires people to develop new skills, there will be a downturn. This economic downturn is just the product of a lot of different trends/cycles converging.

Civil unrest is percolating in America, and this is when there is still demand for our debt. When the crisis in Europe subsides, our situation will naturally worsen as the artificial demand for our debt disappears. The public sector will then accelerate its contraction as interest expenditures take up a larger portion of tax receipts. And tax receipts will naturally fall as unemployment rises. There is no way out of this vicious feedback loop. It is only a matter of time before a panic ensues in America.

If you’ve followed this blog long enough, you know how much I love buying into panic selling events. There may very well be a time when investors instinctively sell stocks as they see the economy worsen in America. But they’ll eventually realize that the alternative (bonds) is much worse. People need to realize that even nations that believe U.S. Treasuries are a huge bubble have large amounts of money parked in Treasuries. The way the world economy is structured, this is their only option. Nonetheless, the bond market is bound to collapse in a similar manner as the MBS market; this powerful move in bonds is just providing energy for a pendulum move in the opposite direction. The panic selling in bonds is going to come very quickly, and I want nothing to do with this bubble.

Is the Recession Here? is a post from: Expected Returns


HTTP://expectedreturnsblog.com

Read more at Expected Returns


Source:


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Humic & Fulvic Liquid Trace Mineral Complex

HerbAnomic’s Humic and Fulvic Liquid Trace Mineral Complex is a revolutionary New Humic and Fulvic Acid Complex designed to support your body at the cellular level. Our product has been thoroughly tested by an ISO/IEC Certified Lab for toxins and Heavy metals as well as for trace mineral content. We KNOW we have NO lead, arsenic, mercury, aluminum etc. in our Formula. This Humic & Fulvic Liquid Trace Mineral complex has high trace levels of naturally occurring Humic and Fulvic Acids as well as high trace levels of Zinc, Iron, Magnesium, Molybdenum, Potassium and more. There is a wide range of up to 70 trace minerals which occur naturally in our Complex at varying levels. We Choose to list the 8 substances which occur in higher trace levels on our supplement panel. We don’t claim a high number of minerals as other Humic and Fulvic Supplements do and leave you to guess which elements you’ll be getting. Order Your Humic Fulvic for Your Family by Clicking on this Link , or the Banner Below.



Our Formula is an exceptional value compared to other Humic Fulvic Minerals because...


It’s OXYGENATED

It Always Tests at 9.5+ pH

Preservative and Chemical Free

Allergen Free

Comes From a Pure, Unpolluted, Organic Source

Is an Excellent Source for Trace Minerals

Is From Whole, Prehisoric Plant Based Origin Material With Ionic Minerals and Constituents

Highly Conductive/Full of Extra Electrons

Is a Full Spectrum Complex


Our Humic and Fulvic Liquid Trace Mineral Complex has Minerals, Amino Acids, Poly Electrolytes, Phytochemicals, Polyphenols, Bioflavonoids and Trace Vitamins included with the Humic and Fulvic Acid. Our Source material is high in these constituents, where other manufacturers use inferior materials.


Try Our Humic and Fulvic Liquid Trace Mineral Complex today. Order Yours Today by Following This Link.

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.