The Dreaded “D” Word

This week I have noticed, on at least 6 occasions in Canada, Britain and the USA, that the “D” word has been slowly creeping into the vocabulary used by elected officials and CEO’s.

From the TIMES of London:

“Gordon Brown appeared to acknowledge for the first time today that the world economy was heading for a 1930s-style ‘depression’.

“Mr Brown stumbled slightly over his words at Commons question time, just a week after admitting that Britain was facing a ‘deep’ recession.

“As the financial gloom deepens, he told the Tory leader David Cameron today: ‘We should agree, as a world, on a monetary and fiscal stimulus that will take the world out of depression.’”

They are all in the early stages of beginning to belive what I have known for a while now…we are in a depression. Forget their coquial phrase ‘deep recession’, we have gone so deep that the pressure is crushing us and now the end days of the global economy are at hand.

Are they slowly conditioning us to this reality to avoid panic? I think they are. They also have no idea how to fix things, or if they do, they do not have the balls to do it.

The problem is that these simpletons have not yet realized that all of the stimulus money they are throwing at this is just adding fuel to the fire. You know something…maybe they are not simpletons. Maybe they see that it doesn’t matter what they do, so doing something is better than nothing.

While I agree with them on this, I do not agree with the type of ’something’ they are doing. The politicians of the world, their economic advisers, and central bankers have to come to the realization that fiat currency is worthless junk. They have to realize that creating money out of thin air weakens its value to the point of having the same value as monopoly money. Problem is to admit that is to to admit that their ideology of how the world is run is flawed.

With all of the stimulus being thrown at this problem, shaky financial institutions, and other business are being propped by this funny money, turning these private businesses into state run institutions.

So as an added bonuses, the taxpayers will be on the hook for a huge debt holding worthless, failing companies and mortgages as collateral.

If you are not scared by this crisis, you should be. The collective lot of us are too damn passive. We allowed this to happen. As long as we were able to use credit to purchase cheap goods from China, all was well. We did not see the big picture – that we were spending someone elses money…spending our way into oblivion.

Yeah, yeah, we will blame it all on Corporgovernment…mainly because we did not understand how the finanical world works. Sure they screwed up. But I have one question…

I want you think about this very hard…you are on your way to the designer shop, driving your fully loaded, bank financed, $50,000 Lexus, all the while sipping your Starbucks latte, to buy that new $1000 outfit with your almost-maxed-out credit card, talking to your friend, on your Blackberry, about the Carribean vactaion you just purchased for $5000,  where the payments won’t start until the summer of 2009…

How come you did not know?

Technorati Tags: Corpogovernment, depression, deep recesion, stimulus money, global recession, credit, debt