Is the U.S. Headed for a Depression?

Depression is a big word, google it.

Depression is probably an objective term. Recession is subjective, that is, if you get laid off, we're in a recession, if they cut out your overtime, it's an "economic downturn".

China's a perfect example of "pay me now, pay me later". When I bought those 12 pairs of sock for $1.99 at WalMart, I never thought that the Chinese manufacturer might be cutting into my oil supply.

It's all gonna come back to bite us in the arse.

Dear Bricktop,

It would seem we are indeed slippery slope, sliding in the direction of a global depression. Consider:

U.S. Treasury I Notes (which are guaranteed to adjust for inflation) continues to adjust at 4.86% but as of 2008 they add in zero percent premium interest on top of that. I.E., they admit that we have a serious upward spiral in inflation and are hedging that they won't have surplus cash to pay back these notes by offering NO interest for our investment.

U.S. and International stocks are stagnant or receding but commodities are a land slide business. Oil; diamonds, gold and silver; storage silo's; ships for storage (not shipping; which industry is taking hundreds of tankers, container ships and bulk haulers out of service.) are going long like mad as a futures investment hedge against the impending crash of the dollar by most major market movers. Commodities are what traders are substituting for intrest bearing cash, in preparation (as a hedge) for impending wathershed changes to international monetary systems.

Have you noticed that it took just 86 Euro to buy a barrel of oil while the U.S. Dollars it took at the same time, to buy that same barrel, were $136 U.S.D?

Air travel and the travel industry as a whole are part and parcel to trickle down economics. The ghost towns that were only last month booming late season discount package havens are a harbinger of the way trickle down economics are starting to hit our third world tourist countries, already. As they start to dry up and blow away due to the fuel premiums that are driving travelers away from taking vacations in ever larger numbers; they will start to go under, too. Reduced cash circulation in those countries could very well be the beginnings of a world wide shrinkage of many, many of our trading partners.

Yes, we are at the beginning, at the very least, of a major economic upheaval and it looks to be the beginning of a depression.

Taking the Wiki definition:

http://en.wikipedia.org/wiki/Depression_(economics)

There are certainly signs in that direction....(IMHO)

It is more severe than a recession (which is seen as a normal downturn in the business cycle). Seems that way anyway...

Characterized by unusual increases in unemployment, This a subjective thing. Unemployment is not all that high, but compared to the very very low unemployment, we have typically experienced, then the current conditions are unusual.

restriction of credit, the housing crisis has brought this on.

shrinking output and investment, not sure about output, investment has bobbled.

hyperinflation, oil and currency issues have brought on inflation. Is it hyper?

numerous bankruptcies, this has happened, but the US has experienced similar levels before.

reduced amounts of trade and commerce, not sure that this has occured

violent currency devaluations. Violent? They have not been violent, on pernicious...

Generally it is marked by a substantial and sustained shortfall of the ability to purchase goods relative to the amount that could be produced given current resources and technology. Not sure that this is happening...

I don't know about a depression. Recession likely I would believe as gas prices consume the worlds population's cash that the market for durable goods will decrease. Reduction in the manufacturing of these durable goods will free up some of the fuels used to manufacture them. Driving the price back down.

I know that the price of gas is a hard ship for many. I all so see it as boon. As it has promoted research into alternative fuels that was not there before. Caused the public to rethink buying a big gas guzzler and the vehicle manufacture trying to engineer more fuel efficient vehicles.

The oil reserves on Earth will not last for ever. Sooner or later we would have been faced with this problem. If solved now may bring better opportunity for our children and one less thing that they will have to deal with.

I'm 95% sure it will happen within 2 years, but could happen anytime from now till then. The baby boomers are getting old and their machery is needing more maintinence (their bodies). They will have to get poor or suck from everyone else. This is just one small part of it, there are so many things I don't have time to list them all here. Scamming finiancial instruments, and central banks all increaseing the money supplies together. I used the within 2 years timeline just because some of the experts are lining up on that, like Peter Schiff. (actual smart people not the stupid goofs)

Hi, whyme!

Yes.

Mark