Sunday, December 07, 2008 Posted by Shattered Paradigm
Think about that.
500,000 hard working people losing their jobs.
But top analysts are now saying that things could get a lot worse.
Experts are now telling us that as many as a million American jobs could be lost every single month by the time next spring rolls around.
A million jobs lost every month?
What would that do to the economy?
Does anyone still doubt that we are facing the prospect of a new depression?
The truth is that the United States has two choices.
For decades Americans have been feasting on debt on all levels - government, corporate and individual - and now all of that debt is starting to catch up with them.
The standard of living is going down and it is going to go down hard.
The two choices are this.....
#1) A 1930's style deflationary depression where the United States experiences massive unemployment and a devastating economic slowdown, but where money still holds some value.
#2) A hyperinflationary collapse where the United States government and the Federal Reserve flood the economy with money to get it moving again. In such a scenario, more people would be working and there would be more economic activity, but the buying power of everyone's money would be radically reduced.
From all indications, it appears that the U.S. government has decided solidly on alternative number 2. We will still experience a bit of a deflationary depression for the next six months to a year while the government gets all of this money into the economy, but after that the economy will be flooded with cash and with economic activity, but the value of everyone's money will start declining rapidly.
So all Americans need to start preparing for a world where they may have money in their pockets, but where a loaf of bread costs 10 bucks. It won't be a lot of fun.