What is a hyperinflationary depression? A depression is a severe contraction in the Gross Domestic Product over multiple quarters. To date, there is no consensus on the meaning of “severe”. The Great Depression in the 1930’s is our only true benchmark for this country. The term “hyperinflationary” is a severe increase in money supply which works its way to prices of goods and services. There are competent statisticians who watch these trends closely. John Williams with www.shadowstats.com is one such analyst. He continues to calculate comparative government statistics using historically sound definitions. If you have been following this website you may recall that Bill Clinton changed the definition of the unemployment rate. His definition improved the unemployment picture overnight. How convenient! John Williams uses the raw data and calculates an “apples to apples” comparison which puts our unemployment at over 10%. Unlike the 30’s, our infrastructure masks the severity of unemployment when compared to that era. Broke people just don’t look broke. Loose credit has delayed the inevitable. In the 30’s they did not have credit cards to delay the day of reconciliation. Banks have been less willing to foreclose on properties and book the losses on their balance sheets. To do so might put some of them in an insolvent state.
Blogging on the economy is full of bad news that can cause fear to grip the weak at heart. Our intent is not to spread fear but to alert you of the potential events that could adversely affect you and your loved ones. If you are alerted to a potential tsunami, you respond by staying away from the seashore until the threat has passed. We have spent much time and energy in making you aware of the economic threats to your household. The time of preparation is still at hand. We are doing our part by developing/enhancing the EDS “detoxification” technology that we believe will revolutionize family wellness. By removing inhibitors to health and healing, the body is free to heal itself. A trained individual with a cost-effective device could easily test family members and promote overall healthy living thus decreasing the cost of medical assistance. Hopefully, our solution will be in place before the brunt of any severe downturn occurs.
Most of all, you should prepare spiritually. Refresh yourself in Scripture often. Study Love. When things get tough, Love will direct your path just as it did for Joseph when he was in the depths of despair. When he saw his brethren, he responded in Love.
Yesterday, we saw a 1,000 point drop before buyers came in and propped up the market with a 400 point loss for the day. Gold closed over 1,200 on the same day. Volatile times are ahead and we must expect days like yesterday’s volatile trading day. The U.S. direction is running parallel to the Roaring 20’s moving into the 30’s and 40’s. The Great Depression was followed by a World War. Expect the war drums to grow louder.
California’s woes are 4X worse than Greece’s economic issues. If Greece is causing this type of volatility in Europe, consider what would happen if California’s fiscal problems don’t get resolved soon.
Hope for the best, plan for the worst.