The Selling Out of America Trap
The United States is in the midst of a recession that may well turn out to be the worst in 20 years, and the Republican-backed stimulus package will do little to improve the economy.
The ratio of debt service to our personal incomes appears to be at an historical high since 1980, as far back as this report goes.
Our debt service ratio is now over 11% higher than the average of the past 26 years, and 21.3% higher than in 1980.
Add to the debt service burden on consumers the high cost of energy and food and the declining value of homes and the picture looks pretty bleak. The last thing we need right now is higher prices added to our debt service burden.
100% Chance of Recession & Stock Market to Plunge 50-60%
The Selling Out of America
Critical Infrastructure is for sale
Selling Out America
In the short term, unemployment will continue to rise and output will fall.
More worrying is the threat a prolonged U.S. recession poses to the rest of the world. Already we see inklings of the downward spiral that was part of the Great Depression of 1929.
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*A Boost That Goes Nowhere
Losses arising from America’s housing recession could triple over the next few years and they represent the greatest threat to growth in the United States. American real estate values have already lost around $1 trillion.
That could easily increase threefold over the next few years. We are talking trillions of dollars’ worth of losses.
There is a good chance that this housing recession will go on for years.
Housing starts will run below one million units in each of the next two years, a level not seen in the history of the modern data since 1959.
We are now the lowest, the most rigidly socially stratified and unfree of all developed nations in the world, and this is happening at the same time that the rise of economic inequality in the US has hit a high not seen in this nation since the 1920s, just before the Republican Great Depression.