Surprise, surprise, surprise, the US economy shrank 0.1% in the last quarter of 2012. That 0.1% may not seem like a lot, but the real story its much worse then 0.1%.
Take these factors into consideration:
The economy shrank during the biggest spending time of the year – Thanksgiving and Christmas. If the economy shrank during Christmas, that says people do not have expendable income.
The economy shrank during one of the biggest panic buying phases in the firearms industry since the 1994 assault rifle ban.
Not only were people spending money on Christmas, but they were also buying all the guns, ammunition and magazines they could get their hands on,,,, and the economy still shrank.
One thing that caused a slowdown in the economy was a reduction in military spending. The question I have to ask, why does government spending play such an important roll in the economy? Maybe the government does not want the people to know how bad the economy really is?
And I do not mean for retirement (saving for retirement helps, but most of us are not there yet). From news about food prices going up 18.5% from January – September 2011, the Bank of America laying off 30,000 employees, to the new reports on credit card debt owed buy the average American,,,, I do not think we are going to pull out of this recession anytime soon.
The US government has spent so much money, that we will never be able to pay it off. Our great-grand children have been saddled with such a great tax burden, that there is no hope for the future generations.
This Bank of America is a troubling sign. Banks do not like to lose money. In fact there are all kinds of laws to protect banks from losing money. It was just a few months ago that the Federal government cut the banks a blank check, most of which went to performance bonuses.
If you judge the health of a nation but how stable its banks are, and one of the largest banks is laying people off, what does that say? It says the USA is in some deep crap.
The depression is just around the corner, are you and your family ready? The news reporters are trying not to use the word “depression”, probably out of fear of the panic that will follow.
IMF predicts a global recession
The banking system, along with the US State and Federal governments have been the number one cause of this problem.
The banks started writing flexible mortgage rate loans – knowing that people would not be able to pay the notes. But for some reason the people just played along with the scams. Untold millions of families have lost their homes and driven into bankruptcy because of the greed of bankers. The blame can not be placed solely on the bankers – the people HAVE to take part of the blame.
The State and Federal government have allowed millions of US jobs to be shipped over seas. This is only at the benefit of the companies that are using cheap labor. Since millions of people are out of work, less money is spent, in turn less tax dollars are brought in.
There is nothing “free” about “free trade” – someone pays the price.
The State and Federal government has also continued to take care of millions of illegal immigrants. Untold millions of dollars are spent on the health and welfare of trespassers, when we can not even take care of our own.
A few weeks ago news was coming out of California that the sate was going to be hit with a money shortage. The first thing that came to mind was – “how much money could be saved by taking the illegals off the social services programs?” An illegal immigrant has no right to anything, expect to be arrested and sent back home.
Every 3 months Exxon reports record profits, and then the people wonder why gas and food is so expensive.
Human stupidity and greed have prevailed, and as a result, the depression is right around the corner.
Its time to get the plans in order.