What a difference 100 years makes as we near the centennial anniversary of the Great Depression. As we continue our discussion from yesterday’s podcast, ” A Tale of Two Depressions,” we were highlighting the similarities between the economic and political climate of the 1920s and 1930s to today. The only major difference between then and now, are the numbers! If it was millions then, it’s billions now, and if it was billions then, it’s likely trillions now! This is true whether we’re referring to the policies of the Federal Reserve or the Congress in conjunction with the White House. It’s a one-two punch of monetary and fiscal “stimulus” today, just like back then. Unfortunately, it was these very policies that turned a would be severe recession into the Great Depression – and it appears we’re heading down the same path.
As we make our way through these trying times, when we observe the economic data, we’re witnessing numbers that we have not seen since the Great Depression, and some numbers are even worse. And despite the optimistic notes from some in DC, of how the economy is going to come roaring back to life, then one must ponder why Congress and the White House are once again contemplating another major spending package. If everything is going to be better than before, then why another massive bill? Of course this would be spending even more money that we do not have! Right now, we’re borrowing about 50 cents for every dollar that we spend. The more we do, the worse this ratio will become and we’ll have very little to show for it on the other side, except for a ballooning national debt and deficit – that will saddle future generations with the tab. The further along in time we go, the more it appears that we’re standing still – yet the fashion, music, faces, and names change. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Depression #Bailouts #USA #Debt #Recession #Gold #Congress #Jobs