United States Heading towards a Depression? Inflation (Part 1)

Everybody who is involved with finance fears that the U.S. Economy is heading towards a recession. Some actually fear that the United States is heading towards, not a recession, but a depression. The scariest thing is that it could actually be worse than that of the 1930s. Bold words, but America is headed for an economic hard fall that no-one is prepared for. With election 2008 coming in full force, the candidates try to address the biggest issues facing America. Immigration is the biggest issue on the Republican side and for the Independents. While immigration may help a depression occur sooner, it is not even close to the reason. Democrats on the other hand view health care as their most important issue. If a depression happens and nationalized health care was in place, the depression would just get worse and worse. The Government has caused this problem. Their attempts at healing it are nothing more than placing a small band aid on a huge gaping wound. The problem with placing a band aid and a gaping wound is that it helps the problem for a few weeks but actually makes the problem worse in the long run. Instead of foreseeing this the Government has let this wound get so big it is now infected and out of control.

Inflation is the only real cause to this downward spiral, and the Government is responsible. Our paper dollars are backed by nothing except our assurance that the United States of America is the greatest country in the world. Our dollar is really worth nothing but paper and ink. The U.S. Dollar has become almost meaningless on the world economy. For the first time in history the U.S. Dollar is worth less than the Canadian dollar. In November of this 2007 the Canadian Dollar was worth $1.09 U.S. If this is not the biggest indication of America’s economic problems, then what is? In 1962 the average cost per gallon was only 25 cents usd. In 2002 gasoline was an at an average of $1.40, still low by todays standards, but adjusted for inflation gas was actually cheaper in 2002 than in 1962.

Our national debt has already passed 9.1 trillion U.S. Dollars. Who do we actually owe that money to? We owe $3,991,754,006,234.96 to other countries, and we owe $5,180,516,146,138.48 to ourselves! When the Government needs more money they just seem to print as much as they want. They Government also just sells bonds to foreign countries whenever they feel like it. What will happen when China comes to collect it’s money?

The USD was backed by something of value at its creation and that lasted all the way until Franklin D. Roosevelt took the Country off of the gold standard. By printing money at will, he was able to bring the Country out of the depression. It is quite ironic when you think that that the Government printing this money will actually be what puts us into this depression. The only real way to fix the problem of inflation and put this economy back on track would to be in fact go back to the gold standard. Now will the Government ever do this? No, of course not. They will not just relinquish their power that they currently enjoy. Instead the Federal Government raises and lowers interest rates at will. This doesn’t actually solve the problem, it just creates a bigger one. Lowering and Raising the interest rate helps for just a short while. People are getting fed up with this game that the Government is playing, a game that really only takes power away from the people.

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There Are 52 Responses So Far. »

  1. This is certainly one of the best reasons to support Ron Paul. He’s the only candidate speaking seriously about such a serious economic issue. Everyone else has their heads stuck… you know where.

  2. Don’t blame a possible recession on a national health care program when we don’t even have one and don’t suggest that a national health care program will make a recession worse.

    Canada and Europe both have a national health care program and their economy is doing a lot better than ours. So, it is very likely that a national health care program could actually improve our economy and spread money around and create jobs and help our economy.

    Get a clue … why don’t ya!!!

  3. I don’t know why I’m here or why I’m posting because it’s not going to do any good. But I feel like I’ve been screaming inside for months and it has to go somewhere.
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  4. Convert all your money into gold and keep it in a safe place not a safe deposit box.

  5. This is why i think we need a thrid party system, so that we can allow a better canidate to run and maybe even win the election and help this country deal with all the craziness that going on. Also i think that this country needs in to a product that we can export to rest of the world to help us with our money issues.

  6. I agree … I think we should ALL vote for a 3rd party system … :0)
    I’m not impressed with ANY of our candidates AT ALL …
    they’re greedy and have lost touch with the people …
    sorry– I’m a Democrat but I’m not voting in my party or the Republican party.. not even sure I want to vote at all .. seems like the current candidates are useless … we need someone totally and COMPLETELY new to come to the scene…
    Thats my 2 cents worth …. (oh–oops, I mean my 2 dollars worth– which is worth about 2 cents now!) LOL
    See what greed gets you?
    We need someone with strong morals and values … someone strict but humanitarian.. someone the US can trust …where is he?
    And btw– sorry folks, but we’re heading towards a DEPRESSION….

  7. We had a good choice in Ron Paul but unfortunately nobody seemed to care. So sad. I have tried to wake up everybody around me about this to no avail. I guess I’ll just sit back, laugh, and enjoy the show when the average idiot realizes what the f*** just happened!:)

  8. 1. Go back on the gold standard. 2. If you want someone with strong morals and values, then it CAN’T be a politician. 99.9999999% of them could care less about the average person on the street. 3. Change the constitution and do away with the electoral college. (Those idiots picked George Bush twice!!!!!!!) 4. Ask our friends around the world for help! They ask us all the time!!! 5. Get informed and be involved, even on a small scale. 6. Get educated. Don’t just take someone’s word. 7. Make lobbying illegal. 8. Do away with all political parties. Candidates must run on their individual merits and issues. 9. Stop worrying about what is going on in your neighbors house and worry about your own.

    Just a few thoughts…..

  9. This recession may be what the world needs…………downfall of American imperialism. And add the grinding halt of the world economy! When well people stop worrying about trivial matters like borders, etc. and start worrying about things that truely matter. Such as human suffering, violence, etc….As humans we are capable of so much more but we need to get over our infantile securities like race, country of origin, and realize that we are on the big giant rock together riding in space to our destined doom. Only a unified human race can prevent this catastrophe (comet, solid interal core, aliens, global warming, solar expansion)!

  10. Ya ya ya Chris. Bullshit. Spoken like a true ignorant helpless hapless foreigner. No doubt you are walking around today as a free man thanks to what you criticize as American imperialism, and when it comes to saving your ass again, you’ll lay around contributing nothing (like your worthless post here) while the trillions the U.S. has spent looking for solutions tothe problems you cite bails your lazy ass out once again. It’s people like you who are the problem!

  11. outragious oil and gas prices are causing the depression
    along with american jobs to keep our money in our country, illeagles are sending our money to their country. lower the gas prices so the lower income people can buy things like they use to!!!!!!!!

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