The Depression 2

This Depression did not start with the housing market, that is a great misconception. The Depression began in 2000 when at the end of the last FEDERAL RESERVE RATE cycle the US economy went into a tailspin (sound familiar) and the FED began cutting rates into 2003 to 1 to save the day (wow that sounds really familiar).

At that point the pinnacle index of the US economy was the Nasdaq, like the Nikkei of Japans crash in 1989 or the 1930's Dow it was the best measure of the biggest sectors that were driving the US economy and Japanese economy at those times respectively. All were reduced into their lowest 30% percentiles of their lifetime ranges all meandered around in their lower 40% percentiles of their historic ranges up to that period in their first decade after their respective crashes or there a bouts.

What we experience in 2003 to now was nothing more than a credit dislocation cause by the financing of the WAR in IRAQ and a rapid expansion of the money credit system by the FED in order to finance WAR (big business for the FED--business 101 means we are probably due for another war shortly). The FED increased the money supply and it debased the dollar. We had all commoditized assets run up in price 2 to 3 fold or actually they held value as the dollar decreased due to excess supply of fiat dollars.


If you notice the FED hid the M3 money supply number in 2006 the year after George Bush closed the Bankruptcy loop hole and the FED changed the minimum credit card payments for the first time since 1981 (interesting year if you really think). By doing this they hid the massive contraction in the money supply which collapsed the markets globally and reduce commodity prices like Oil, Gold, Houses, Gas etc.....PLEASE NOTICE FOOD PRICES ARE NOT FALLING BECAUSE THE FOOD SHORTAGE IS UNDER WAY. Remember the debt money is the only money if there is less debt then their is less money in circulation which means that all assets denominated in fiat money must reprice downward to account for the reduction of circulating paper. Nothing happens by accident and the sooner people try to understand the way that pretty piece of spray painted paper in their pocket works the less we will all have to suffer from mass ignorance. SNAP OUT OF IT!!!!