Why Deflation Economics Proves We Are Entering The Greater Depression.

FOR IMMEDIATE RELEASE
Livermore, California, United States of America (Free-Press-Release.com) September 18, 2010 -- by Delwyn Lounsbury - TH DEFLATION GURU

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Why Deflation Economics Proves We Are Entering The Greater Depression.

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The President Obama rhetoric and actions bashing business continues even when the statistics show deflation economics getting worse at every turn. President Obama actions are, "bad to the bone," for boosting business. Business will only get more uncertain and unsure. This freeze up in hiring, business expansion and lending will lead to more deflation economics which will end with the Greater Depression. The deflation economics cycle may not end until 2016 to 2018. At that time your assets may have lost 90% in price and unemployment could be 30%.

Our report on deflation is supported by some recent statistics. One in seven Americans are considered under the poverty level. That's 14% of the population or 44 million people. Real estate foreclosures rose 25% in July of 2010 to 95,304, the highest number on record.

Helping the economy get top heavy and crash was the migration of union workers onto the government payroll. They knew the government would not go out of business. At the same time Toyota and other manufactures opened successful non-union factories. Some 22.5 million Americans are now employed in government jobs. Remarkably, that figure has grown 10% in just the past year. It is like a large parasite is sucking all the energy out of the economy. Ever since Franklin Delano Roosevelt started the "New Deal" government has grown larger and larger. If we are 10 years into the Greater Depression as I contend, this bloated government structure will make the depression worse.

Nikolai Kondratiev, 1892-1938, discovered capitalist countries go through a long wave cycle of 60 to 80 years. A cycle similar to the phases of nature with spring (inflation), summer (stagflation), autumn (deflation or disinflation) and finally winter (depression). We are in the middle of the ending winter phase that started in year 2000. Just look at a 10 year chart of the NASDQ stock market, QQQQ or TII, a fund ETF of 75 major companies. The graph shows that there was only a bear market rally. These indexes never got back to the 2000 level. The QQQQ only made up 50% and the TII only made back 61.8% (both fibonacci numbers, by the way). The DOW and the S & P 500 did make new highs; but they are fudged by dropping the weak companies and adding stronger ones to these indexes.

The money supply is already dropping like rock. It's down 10% this year.
"To put it succinctly, the stock market is a thermometer of public mood and a barometer of public action," Robert Prechter.

A deflationary crash is characterized in part by a persistent, sustained, deep general decline in peoples' desire and ability to lend and borrow. A depression is characterized in part by a persistent, sustained, deep, general decline in production. Since a decline in production reduces debtors' means to repay and service debt, a depression supports deflation. Since a decline in credit reduces new investment in economic activity, deflation supports depression. Because both credit and production support prices for investment assets, their prices fall in a deflationary depression. As asset prices fall, people lose wealth, which reduces their ability to offer credit, service debt and support production. The mix of forces is self-reinforcing. That's what Robert Prechter's book, Conquer the Crash(2002) says.

Economist Paul Krugman’s recent solution is just more socialism. He wants more stimulus money thrown at the problem. He doesn't realize that at this stage in the cycle it would just evaporate. All the bailouts and government spending done so far have not turned the economy around. Business people are uneasy. Saddling America with more debt would be counter-productive. The Greater Depression is coming. Why make it worse than it already is? Better to reduce taxes and let businesses make the new jobs. STOP THE SPENDING!

The fact is President Barack Hussein Obama is “all in” with his socialistic wealth redistribution programs. Paul Krugman should be ramping up the pressure on Obama from his pundit press position but he is too Keynesian. Obama is carrying out his inebriated African father’s socialism dream like some kind of anticolonial nightmare in which the big bad U.S. has to pay for stealing everything the third world ever had. Obamas dreamquest is to right all colonial/imperial wrongs and rippoffs of the last 2 centuries in just 4 years. Obama is out of control with his wealth redistribution, increased taxes, socialism and business bashing. We are being governed by the socialist ghost of Africa past. Is this guy even a citizen? Let's see his real birth certificate. Those of you who voted for Barack Hussein Obama for president may have a big dose of buyers remorse over his super cycle scale ambition of ruining America and it's FREEDOMS. We have a president in office that hates the United States and business in general. Takeover of the country by a coalition of big business and government is fascism. Did we elect the nearest thing to the anti-christ since Hitler - Or what?

More information can be found online at http://www.deflationeconomy.com

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