Is America Headed For Another Great Depression?

[Willluck]

It just seems like all signs are pointing to this. I mean the 90's were booming and since the start of the new millenium the stock market has been on a constant decline. Plus we are spending 100s of millions a day on the war, and the oil prices are still skyrocketing. Does anyone here think there is a chance the American Dollar will be worth significantly less in one year from now? Should I be looking into moving to Canada?

[Il_Mostro]

There certainly is a risk for it.

Here's one man who belive it is, or at least heading for major problems. And he doesn't even take rising energy costs into the picture.
Noland intervjued at financialsense

It's a long listen (about 1 hour) but I found it interesting.

[wacki]

[ QUOTE ]
and the oil prices are still skyrocketing.....

Should I be looking into moving to Canada?

[/ QUOTE ]

Yes, moving to Canada will solve all of your oil problems.

[player24]

If you believe the US is headed for depression, why choose Canada?

According to the IMF: Canada’s exports to the United States account for about 85 percent of total Canadian exports and about 35 percent of its GDP, and investment flows and financial market ties are also closely linked.

Rest assured, the US will have a recession at sometime in the next few years. This is an unavoidable characteristic of mature economies. But recession does not mean depression. Enjoy today's prosperity and don't worry so much about tomorrow.

[blatz]

It's really up to China...

If I would fall behind on my mortgage, the bank has the choice of letting me slide a bit or repossessing the house. They will choose which one finacially benefits them more at the time.

China is our mortgage holder, and right now they need our economy chugging along. Whenever the Chinese Financial minister speaks about their US investments, Wall Street trembles, and when he speaks of pulling out, they shake. Luckily we have a peace offering to give them...Taiwan, so they will let us slide a little while longer.

[jaxmike]

[ QUOTE ]
It's really up to China...

If I would fall behind on my mortgage, the bank has the choice of letting me slide a bit or repossessing the house. They will choose which one finacially benefits them more at the time.

China is our mortgage holder, and right now they need our economy chugging along. Whenever the Chinese Financial minister speaks about their US investments, Wall Street trembles, and when he speaks of pulling out, they shake. Luckily we have a peace offering to give them...Taiwan, so they will let us slide a little while longer.

[/ QUOTE ]

Um, this makes almost no sense at all.

Do you understand how they gave us credit and in what way our debt is held and will be repaid?

[thatpfunk]

What about for the original OP Jax? Curious if your side of the spectrum sees this as a distinct possibilty...

[jaxmike]

I seriously doubt if a Depression is in our future, however it IS possible.

The thing about the great depression is that it was caused by a series of events that are largely impossible now due to regulations to stop it from happening.

However, there are issues that are alarming, none of which are the fault of ANY particular political party.

First, debt. Not national debt, but the debt of individual citizens. People are not as responsible for their finances as they should be.

Second, credit. If you look at the major causes of the GD credit is certainly one of them. People buying too much on credit (which goes hand in hand with the debt) but also institutions extending too much credit. This is not AS MUCH a concern today, but still is one. More for the fact that people are accumulating too much debt caused by credit.

Third, trade imbalance. I don't believe this was a particular cause of the GD, but it COULD lead to depressive conditions today. The US is the worlds largest trader, but we also have the worlds largest trade deficit. I think that we need to do SOME protecting of our products. Because in doing so we will lower the deficit (trade) somewhat and also protect some jobs. We cannot force business to build here or employ here. All we can do is make it worth their while to do so. If that takes some protectionist tactics, that is fine. However, I am not in favor of imposing anything that is not the equal to that imposed on us. Free trade is fair, we are not a free trade partner with most nations we trade with.

[thatpfunk]

ty

[jaxmike]

Wish I could write, and extrapolate more, but i have to go to pool league to whoop up on someone.