The Greater Depression of 2012 and Why It Is Coming

If policymakers do not understand the real cause of a problem, they will in all likelihood be unable to provide a genuine solution.

The current administration and both the current Houses of Congress do not understand the real cause of our current debt crisis.  The economic blindness is afflicting both Democrats and Republicans and they are equally clueless.  They are politicians first and foremost, and they do not understand the most fundamental economic realities of free market capitalism.  While both parties are caught up in preserving the power structure and maintaining status quo in the politically elite circles, what they don't understand is that a market correction is coming which will overtake our economy and they will be powerless to stop it.  It would be unwise to count on anyone in current office, especially some Vulcan-eared lunatic like Timothy "tax-cheat" Geithner, to tell us when the Great Recession is over, or let you know that in fact we are already into the first stages of the Greater Depression.

Look, you don't have to be a rocket scientist to understand the data.  The problem is that most of the lame-stream media has so obliterated the data as to make it virtually useless and meaningless in an attempt to confuse the population.  The cause of the Great Depression was simply this, over leverage.  Excessive debt at both a personal, corporate and government level.  Excessive debt levels are the direct result of the completely unconstitutional institution known as "The Fed" providing artificially low interest rates.  You look at what Congress encouraged in terms of lending policies which were all but shoved down the throats of lenders, and to now see the politicians using the Federal Government to sue the banks which they virtually forced to lend (and by the way, they guaranteed with the full faith and credit of our government through Fannie Mae and Freddie Mac) is it any wonder that our society is leveraged in a way not even seen during the Great Depression?

The only real and viable solution to allow the natural market forces to start the correction process and begin the required healing is for both the public and private sectors to undergo a radical period of reducing debt. The coming Greater Depression is, in actuality, that very healing process at work.  The signs to watch for to see that this over-leverage is unwinding is to watch for the selling of assets and the paying down of debt.  Are you saying any of that happening yet?  Are you seeing the bloated balance sheets of Fannie Mae and Freddie Mac being realistically put into the market yet?

Unfortunately, the natural human reaction is to resist change, so our politicians and bureaucrats are focused on fighting this natural healing process by promoting the accumulation of even more debt.  This is why the Greater Depression is coming, despite what these Keynesian idiots would like you to believe.

Getting through the coming Greater Depression is going to be a painful process, but debt reduction is the only real cure for an economy swimming in an ocean of debt. It boggles the mind that during this current crisis the administration's response has been to dramatically increase its own borrowing. I'm willing to stand corrected with fact-checks, but I believe our gross national debt was equal to 65% of GDP when Obama came into office. It has since exploded to 90% of GDP!  Compare that to the level of debt during the 1930s (which never exceeded 44% of GDP) with today's pile of government debt clearly illustrates the reason for the coming Greater Depression.

Today, gross national debt and household debt are both at or above 90% of GDP for the first time in our history.

Here is the simple truth which policymakers do not understand...that the cause of the coming Greater Depression is debt.  Get your personal house in order and eliminate your debt as quickly as you can.