|
|
Psych Community
|
| Author |
 Topic  |
|
Administrator
Administrator
15007 Posts
Gratitude: 3353
     |
 Posted - 01/21/2009 : 01:35:31
|
Dear Members,
WHAT I TOLD MY FAMILY
Last January 2008, you may remember that I warned our community that we were about to have a stock market crash, and that I had told my family to get out of the stock market (and to get into cash).
Tragically, my prediction was correct, and there was a global stock market crash in 2008. Fortunately, my family took my advice, got out of the stock market, and thus avoided losing at least 25% of their life savings.
This January 2009, I would like to warn our community that, I believe, we are entering the Second Great Depression, and I have told my family to get out of debt and get out of cash (and get into precious metals). My prediction is that the US dollar will continue to fall, and that many other currencies will also suffer significant devaluation.
REASONS FOR THIS PREDICTION
The Gross Domestic Product of USA in 2008 was $14 trillion. Yet:
Despite the trillions of dollars in bailouts, the US economy, stock markets, and fiscal markets continue their meltdown.
Thus far, the US government has decided to spend its way out of debt with one failed "stimulus" bailout package after another. Japan tried this identical approach in 1990 when the Japanese stock market failed and its economy entered a recession. This "spend your way out of debt" failed miserably in Japan, and Japan is still in a 18 year-long recession.
USA IS UNWILLING TO DO THE RIGHT THING
There are a number of cost-cutting economic measures that the US could do that could prevent this current recession from developing into the Second Great Depression. However, I do not believe even the new Obama Administration will do these things:
- Make most of the derivation market illegal, as it was prior to 2000:
Six hundred trillion US dollars of bets are currently placed on the derivative market. This makes the derivative market the largest, unregulated casino in the world. The betting on the derivative market is totally out of control and has bankrupted many of the world's investment banks and hedge funds. The trillions of US dollars destroyed by the derivative market is a major cause, I believe, for the current lack of liquidity in the credit markets.
- Cancel the tax cuts made by the Bush Administration:
These tax cuts didn't work to stimulate the economy, and now the US government is running out of tax revenues.
- Stop this insane level of US military spending:
The Afghanistan War bankrupted the USSR. Now it appears the wars in Iraq and Afghanistan could well bankrupt the USA.
- Stop over-consumption:
Every year, USA spends more than it makes; hence generates crippling government deficits which further increase the National Debt. These government deficits (and massive trade deficits) have to stop.
IF USA GOES BROKE, WHO PAYS FOR HEALTH CARE?
The world relies on the USA to be the leader of the Free World.
If the US government goes bankrupt, who will defend the Free World, and who will pay for health, education and welfare for America?
Please take the time to click on the above links. The US media is not informing its citizens as to the dire severity of the present economic crisis. Fortunately, the internet can provide us with the information that we all need.
I would welcome your comments on this issue; especially how it will influence our mental health services.
Phil Long M.D.
Administrator 
|
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:33:19
|
Vocabulary lesson for today:
liquidity: when you look at your investments and wet your pants.
Phil Long M.D.
Administrator |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:33:51
|
| . |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:35:54
|
| . |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:36:52
|
| . |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:38:05
|
| . |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:39:41
|
| . |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:40:40
|
| . |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:43:06
|
| . |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:44:17
|
| . |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:50:49
|
New Dollar Bill |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 12:56:32
|
Be Realistic, There's Only So Much He Can Do |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/23/2009 : 22:08:13
|
Bush's $8.5 Bailout To Billionaires
Dear Members,
There is a very troubling financial story which is starting to surface about President Bush's last months in office. The implications of this story are staggering.
Did President Bush Secretly Bailout His Billionaire Friends?
Apparently, in 2008, the Bush Administration had two stimulus or bailout packages:
- Everyone knew about the $700 billion stimulus package ("Troubled Asset Relief Program") that was approved by Congress. Likewise everyone knew about the $168 billion in checks that were mailed to US taxpayers last spring.
- However, almost no one knew about the $7.4 trillion in bailouts that the Bush Administration had authorized that did not require approval by Congress.
Most of the money, about $5.5 trillion, came from the Federal Reserve, which as an independent entity did not need congressional approval to lend money to banks or to other financial institutions.
Hence President Bush was able to commit 60% of the US Gross Domestic Product ($8.5 trillion) to bailout the billionaires in his favorite financial institutions.
This Story Has Been Suppressed By The Media
In November 2008, very reputable newspapers reported this story.
Since this story was about a $8.5 trillion bailout package; you would expect it to be a top news story. But surprisingly, after a few days, this story totally disappeared.
The Bush Administration didn't deny this story; they just said nothing. No one in the media said anything more about this story. It was as if this amazing story never happened.
Why Is This Story Important?
- Do we still have freedom of speech?
If this news story was correct, and if it was suppressed by the Bush Administration, this means that freedom of speech has been seriously eroded.
- Can a US president dispense with Congress and do as he pleases?
If this news story was correct, this means that the Bush Administration was able to give away $7.4 trillion in bailouts (to their friends) without needing the approval of Congress. President Bush did this by getting the money from the Federal Reserve (which can give money without needing Congressional approval).
- Why should only the financial sector receive all these bailouts?
The US financial sector of the economy generates 8% of the US Gross Domestic Product. If this story was true, it would mean that the Bush Administration was committing 60% of the US Gross Domestic Product to bailout one sector of the economy that only generated 8% of the GDP. What's the sense in that?
There are many other sectors of the economy that are in recession (e.g., industrial, agricultural, health, etc.). Don't these sectors of the economy deserve a bailout?
And what about a bailout for the taxpayer?
Why were the Bush Administration bailouts only aimed at reimbursing those whose greed and stupidity caused this financial disaster?
- What kind of capitalism is this?
We have evolved into a new type of capitalism wherein profits are privatized and losses are socialized.
When large corporations make large profits, they do everything in their power to avoid paying taxes. However, when these large corporations suffer large losses, they immediately expect the taxpayer to bail them out.
The greed of the Wall Street bankers and brokers got us into this speculative bubble. This economic meltdown could have been prevented, had US politicians not dismantled government financial regulations.
Now, thanks to this greed and stupidity, we are about to have the Second Great Depression.
Why Is This Relevant To Mental Health?
In a severe economic meltdown, governments can't afford to run hospitals, subsidize medications, or pay disability pensions.
Without a healthy economy, we can't pay for our health care system.
Phil Long M.D.
Administrator
 |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/24/2009 : 14:52:13
|
Our Governments Are Destroying Our Money's Value |
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/24/2009 : 14:57:24
|
The value of the US $1 over time, in 1776 dollars
Governments Let Inflation Devalue Our Money
The above graph shows the buying power of US $1 over time, in 1776 dollars.
This graph shows that inflation has dramatically reduced the buying power of the US dollar - especially since World War II.
In the last half of the 20th Century, all governments printed more money in order to pay for their increased spending. The massive amount of newly printed currency gradually diluted the currency's buying power (i.e., increased inflation).
The US Dollar As The World's Reserve Currency
For decades, the US dollar has been the "reserve currency" of the world. That is, the rest of the world transacted its commerce in US dollars.
To do this, the rest of the world had to give the US its gold and oil etc. to buy US dollars to use in international commerce.
Thus the US became rich by just printing paper money.
US Treasury Securities As A Safe Haven For The World's Wealth
The US became even richer when the rest of the world started to use US Treasury Securities as a "safe haven" in which to store their wealth.
Once again, the US became rich by just printing paper Treasury Securities.
However, there was a catch. The investors had to be paid a small profit when the Treasury Securities matured. However the US government printing more money solved this problem.
- Massively printing more money caused inflation which caused currency devaluation (creating "90 cent dollars").
- The US government would then use these devalued ("90 cent") dollars to pay off its loans. Most investors were not aware that they were being short-changed when their Treasury Securities were repaid with these devalued ("90 cent") dollars.
USA's Crippling National Debt
The massive wealth generated by the US dollar being the world's reserve currency, and US Treasury Securities being the world's "safe haven", may have been USA's undoing.
US governments kept going deeper and deeper into debt because they could always print more money or Treasury Securities to finance this debt. Now the USA is the world's largest debtor nation.
In 2008, the US national debt was $53 trillion, and much of this debt was held offshore. For example, China now owns so many US Treasury Securities that - if China "dumped" all of its US Treasury Securities - it could trigger the collapse of the US dollar. (China doesn't do this because a collapse in the US dollar would cause a collapse in trade with China.)
Experts now predict that the massive US National Debt will ensure that the US government will soon go bankrupt.
What Is The US Government Doing About This Debt Crisis?
In response to the current economic meltdown and the pending US government bankruptcy; the US government is doing what it always has done.
Once again, the US government has decided to go deeper into debt by:
- Increasing government spending (while simultaneously decreasing taxes).
- Giving trillion dollar bailouts to its billionaires.
- Massively printing new money.
- Dropping the central bank's interest rates almost to zero so that banks can get these newly printed dollars quickly into circulation.
Normally, such a fiscal policy would be highly inflationary. However, due to the massive capital destruction currently happening with the implosion of the derivative market, we are currently in a deflationary period (the opposite of inflation).
Even if this fiscal policy doesn't cause runaway inflation, one thing is certain. This policy of massively increasing the National Debt will eventually guarantee that the US government will go bankrupt.
How Will We Be Affected?
Everyone will be affected.
Right now, the middle class is quickly losing their life's savings.
Later, smaller nations will go bankrupt. This has already happened to Iceland.
If you don't think this can happen to larger nations, just watch Pakistan and Russia in the next few months. Their economies are about to hit the wall.
Why Is A Psychiatrist Posting This?
My intent isn't to upset everyone with false information.
However, as a 64-year-old psychiatrist, I have never witnessed anything as bizarre as the last few years. Under the Bush Administration, I have witnessed:
- 9/11 and the unexplained controlled demolition of "Building 7" immediately after the twin Trade Center Towers fell.
- The unlawful invasion of Iraq under the false pretext of "Iraq has weapons of mass destruction" and "Iraq supported those responsible for 9/11".
- A massive US National Debt of $53 trillion which the Bush Administration stated was "only $10 trillion".
- A President looting his country's treasury with a $8.5 trillion bailout for his billionaire banking friends.
- An unprecedented meltdown in the world's economy.
I feel it is essential to bring the present state of our economy to everyone's attention.
Phil Long M.D.
Administrator
|
|
| Administrator
Administrator
15007 Posts
Gratitude: 3353
|
Posted - 01/28/2009 : 04:07:51
|
Dear Members,
The story that I posted earlier regarding President Bush committing $8.5 trillion to bailout "troubled financial institutions" literally is causing me to lose sleep.
Thus, I felt compelled to post further information on this incredible story. How could President Bush commit 60% of USA's Gross Domestic Product to bailing out his billionaire banking friends? Surely this couldn't be true.
Apparently there is more factual support for this story.
- RealNews.com is confirming this story (top link on this post)
- Bloomberg.com constantly repeats this statement (bottom link on this post) in numerous news articles. You can see this for yourself if you go to www.bloomberg.com and use their search utility to search for "$8.5 trillion bailout".
Bloomberg.com is a very reliable financial news service. They wouldn't report this story unless they were very confident that it was true.
Thus I now believe this incredible $8.5 trillion bailout story is true. This then is an economic disaster.
- This bailout represents 60% of the US Gross Domestic Product. $8.5 trillion is an incredibly large sum of money. This sum of money is much more than the total cost of ALL the wars that have ever been fought by the USA.
How can the US economy support such a massive bailout?
- President Bush did not have Congressional approval for $7.4 trillion of this bailout package. Yet he did it. This means that the President is not accountable to Congress. This is a terrible violation of democracy.
- There is no evidence yet that these massive bailouts are working.
Giving more money to individuals who are addicted to gambling doesn't cure their addiction to gambling. Thus giving more money to these bankers and brokers whose uncontrolled gambling on the markets caused all this mess, will not cure this economic meltdown. It will only throw further fuel on the fire.
These gambling-addicted bankers and brokers must be controlled by reinstating the financial regulations that used to prevent such speculation.
I had to post this. Hopefully now I can get back to sleep.
Phil Long M.D.
Administrator
|
|
|
Topic |
|
|
|
| MyTherapy Communities |
© MyTherapy |
|
|
| Total | Today | Yesterday | Topics: 33407
Posts: 286540 | New Topics: 0
New Posts: 0 | New Topics: 0
New Posts: 0 |
|  |
| | |
The Great Recession of 2009-2011 [closed]
Forum Locked
