Full Blown Depression Coming

Posted By DrJim On 6/18/2010 @ 3:10 am In General | Comments Disabled



Full Blown Depression Coming

by Jeff Davis

The economy has been plagued with extremely high unemployment for over a year. There has been a relentless stream of bad economic news: closures of companies like Saturn and Mercury, the continued drain on the economy from the occupations of Iraq and Afghanistan and the crushing burden from 20 million illegal aliens. If we deported these 20 million illegals at the first sign of trouble in 2007, there might have been a chance the economy would recover, but as usual the two party system won’t do anything to fix the most serious problems facing us. The United States of America is now headed for a full-blown Depression, and it’s getting closer by the month.

A recent news article [1] reports: “The number of people filing new claims for jobless benefits jumped last week …another sign that the pace of layoffs has not slowed. Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000, the Labor Department said Thursday. It was the highest level in a month and overshadowed a report that showed consumer prices remain essentially flat. The rise in jobless claims highlighted concerns about the economic rebound — especially after a report earlier this week said home construction plunged in May after government tax credits expired.”

Employment always goes up in the summer due to seasonal tourist-related jobs. Amusement parks, zoos and other outdoor venues need to staff up to deal with a flood of people. A lot of these summer jobs are part time employment for high school and college students, but they need work like everyone else. The unemployment figures should be down in the summer and up in the winter due to this seasonal factor, but it seems like unemployment just keeps climbing from one high to another high.

Obama’s army of census workers artificially pumped up the employment numbers for a few months, but that only delayed the inevitable. Many big cities and states have refused to lay off people as they should have when the economy first went south and tax revenue plunged. This reluctance to lay off government workers has helped artificially delay even worse times, but the end result is that cities and states will start to go bankrupt. There is already talk about New York state plunging into bankruptcy, which will no doubt soon be followed by California.

Once the state and city lay offs begin to kick in, the financial dominoes will start falling again. The gigantic oil spill in the gulf is an unforeseen financial catastrophe that will ruin the fishing and tourist industry all along the gulf. Our economy is going from bad to worse and it’s going there fast.