The Next Great Depression is Here

I wish I had better news for which I have none. As a matter of fact I can't remember the last time I have seen things this bad. The only good news I have seen is that finally, a large number of Americans are seeing it too. A recent poll by CNN said forty eight percent of Americans think we'll be in another Great Depression in the next twelve months. The bad news is that we are already there.

Our jobs numbers, when done without the Hollywood math that Washington uses, are at similar points when compared with Depression era figures. After looking at all the figures, which include many individuals not counted in the federal stat, show the actual unemployment rate somewhere between 19-25%. This rate has remained, more or less unchanged, for years. This means it has also lasted longer than at any point during the Depression who after three years of these numbers finally saw some change. We so far have seen worse numbers, not better, and the future looks equally bleak

The housing market has all but crashed again with prices falling to pre-2002 levels. The slide by the housing market is already worse than at any point during the Depression, a fact no one disputes, not even the government or media. With the foreclosure market in total chaos, these numbers are not likely to rebound any time soon.

So what about the governments insistence that we have had several straight quarters of growth? Lies. True, the economic definition of a Depression is four straight quarters of negative growth, along with high unemployment and mounting housing losses. Well check on the last two. Let's look at the first shall we.

Using GDP as a measure for economic recovery is a statisticians greatest lie. The GDP is being manipulated up by deficit spending. Over the last 2.5 years, the US Federal government has spent over $3 Trillion (and another 9 billion in credit which we won't even count in these figures) in deficit spending. That artificially drives up GDP. If we are at a 1.8% GDP growth model, what happens if you remove that deficit spending? And what effect does quantitative easing (aka money printing)have on the GDP?

In 2010 we had a $14.7 Trillion GDP. What was the deficit spending by the US Federal government? $1.42 Trillion. In other words, the deficit spending is 9.6% of the GDP. And what was the stated GDP growth for 2010? 2.6%

So if the federal government did not deficit spend in 2010, what would have been the true GDP growth? Negative 7%.

Welcome to your New Depression. Enjoy. Think things are as bad as they going to get?Read below for more spectacular news.

The following are 10 signs that Wall Street is about to go into panic mode….

#1 According to The New York Post, nearly all of the major Wall Street banks are planning huge layoffs….

“Barclays Capital, Goldman Sachs, Bank of America, JPMorgan Chase and Morgan Stanley currently are among those financial institutions either weighing staff cuts or actually paring payroll”

#2 A new CNBC article claims that a “negative feedback loop” has “taken control” on Wall Street. Essentially what is happening is that bad economic news is creating an “environment of pessimism” which creates even more bad economic news, etc. etc.

#3 OPEC has announced that oil production levels will not be raised. This is likely to spook the financial markets and cause the price of oil to go up even higher in the coming weeks. The last time U.S. energy expenditures were over 9 percent of GDP was back in 2008 and at that point the economy rapidly plunged into a very deep recession. For the first time since 2008 we have reached the 9 percent figure again, and many on Wall Street fear that this could lead to bad things.

#4 QE2 will be wrapping up at the end of June, and many on Wall Street had been counting on yet another round of quantitative easing. Over the past couple of days, however, it has started to become clear that is just not going to happen – at least for now. In fact, Pimco’s co-chief investment officer, Bill Gross, is telling investors that for the Fed it will “be difficult to initiate a QE3“. But without artificial stimulation the U.S. economy may start really struggling again, and Wall Street knows this.

#5 Moody’s recently warned that it may downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo. Bank stocks were on the cutting edge of the financial collapse of 2008, and it looks like that may happen again this time.

#6 Faith in the U.S. dollar continues to decline. Back on April 18th, Standard & Poor’s changed its outlook on U.S. government debt from “stable” to “negative” and warned that the U.S. could soon lose its AAA rating. China has been very busy dumping short-term U.S. government debt and there does not seem to be a lot of people (other than the Federal Reserve) that are eager to buy U.S. Treasuries right now.

#7 U.S. consumer confidence is already lower than it was back in September 2008 when Lehman Brothers collapsed. Consumer spending makes up approximately 70 percent of the U.S. economy and Wall Street is watching this number closely.

#8 A whole slew of bad economic news has been pouring in lately. Mike Riddell, a fund manager at M&G Investments in London, recently pointed out to CNBC some of the data points that have been particularly alarming….

“US house prices have fallen by more than 5 percent year on year, pending home sales have collapsed and existing home sales disappointed, the trend of improving jobless claims has arrested, first quarter GDP wasn’t revised upwards by the 0.4 percent forecast, durables goods orders shrank, manufacturing surveys from Philadelphia Fed, Richmond Fed and Chicago Fed were all very disappointing.”

#9 A whole lot of folks in the financial industry have been warning about the next financial collapse lately. For example, economist Nouriel Roubini recently made the following statement….

“I think right now we’re on the tipping point of a market correction. Data from the U.S., from Europe, from Japan, from China are suggesting an economic slowdown.”

#10 According to a new CNN/Opinion Research Corporation poll, 48% of Americans believe that it is either “very likely” or “somewhat likely” that the United States will experience a “depression” within the next 12 months. Needless to say, Wall Street is highly influenced by the overall mood of the nation.

Once again, let’s hope that financial disaster can be averted for as long as possible. The last thing the United States needs right now is another major crisis.

America has been hit by a whole series of natural disasters in 2011. We have seen unprecedented tornadoes, historic flooding along the Mississippi River and Massachusetts, and horrible wildfires in Texas and in Arizona.

Thousands upon thousands of American families are deeply suffering tonight. Our new Soup Kitchens are the food stamps 43 million Americans rely on and which government seems determined to take back.

The TSA and police nationwide are becoming more and more Storm trooper than protector. Every day a new story pops up like the TSA manhandling a mentally challenged 29 year old who refused to let him take his tow hammer on board a plane. I had my own close call with the TSA this past weekend coming dangerous close to an arrest. I won't fly again.

The police are getting more and power, with Illinois being the worst place in the country to live. It is actually illegal there to tape public officials, cops judges, whatever, without getting arrested. One man faces 75 years for taping police who were HARASSING HIM. Unbelievable.

Venezuela cut all ties to the US today in a row over Iran. And war drums still sound as a vote on Syria this week at the UN, with China and Russia threatening to veto, may actually bring the whole institution down. British PM Cameron has warned that failing to protect Syrian citizens from dangerous despots sets a dangerous precedent and could make the UN at that point moot.

All this as we hear about Casey Anthony and Weiner's Weiner. Start looking at what's important because soon it may all go away and you will all be wondering what happened.