Unless you already live in a cave or you are a complete and total mindless follower of the establishment media, you should be able to see very clearly that our society is more vulnerable now than it ever has been. Just as the course of the virus is uncertain, so too is its likely economic impact.
The reality is that very many people will be caught totally unaware and totally unprepared when the Economic Depression befall our generation…
Although we have all seen recessions most of us have little or no concept of an economic Depression.
A recession persists for 2 or more years.
Its starting gun is.
Two consecutive negative quarters of GDP over 6 months. A rise in unemployment of around 2%.Falls in GDP, Stock Markets, Real Estate prices, Exports/Imports, Real income, Savings rates, Industrial production, Corporate investment, Wholesale/retail sales, Interest rates falling.
A Depression is altogether another kettle of fish.
Depression means the downturn has lasted a much longer time—usually years—with a much deeper impact.
I am not being alarmist but it’s time to start calling the current situation what it is: A Depression and it will drag on for many years.
True, that this one will not be a full replay of the Great Depression, but that’s cold comfort considering it lasted some 23 years.
Its starting gun is.
When GDP experiences a serious decline greater than 10%.
The Unemployment Rate spikes dramatically sometimes up to 25-40% in some sectors. Credit Liquidity dries up. Banking and Financial Crises rock the world.
Corporate and personal bankruptcies escalate. Corporate and personal bankruptcies escalate. Sovereign Debt Defaults and Bank closures cause a flight to cash, gold, or silver. International commerce and trade are curtailed as Trade Wars break out.
Desperate Currency Devaluations between nations result in a desperate “race to the bottom.” Entrenched Price Deflation replaces concerns over Inflation or Stagflation.
Civil strife sees law and order break down, crime and rioting escalate. Political tensions result in wars and a break down in societies.
Running the money printing presses day & night will not stop a Global Economic Depression.
Unemployment in both the United States and Europe remains disastrously high. Leaders and institutions are increasingly discredited. And democratic values are under siege.
It’s no wonder that working-class person is scared to death they’re going to lose their house, and scared to death they’re going to lose their job and it may prove almost impossible to find another quickly.
So here are a few beady eye possible suggestions:
The sad truth is that the vast majority of people would last little more than a month on what they have stored up in their homes.
Falling asset values and falling wages or income are a killer if you’re lumbered with high debt and interest repayments. Cash Is King in a Deflationary Environment.
Now is the time for preparation to form buying Co-ops/ Neighborhood Aid associations, Growing clubs.
The greatest responsibility for healthcare will have to be taken on by community-based organizations and family networks, which would provide services more efficiently than the formal health system.
Everything comes to an end, including Depressions
All human suggestions and comments appreciated. All like clicks and abuse chucked in the bin.