The millennial depression
February 21, 2009 | 2 comments
Image Credit: sxc.hu
Deep recession = depression. I feel confident in saying that nobody reading this today was alive during the last depression. With that being said it is no wonder most people do not see us slipping into a depression, they have no reference point to compare events to. So what signs can we look for as a precursor to the Millennial Depression? High inflation rates, high unemployment rates, low bank liquidity and a falling GDP would all qualify.
A year ago every housewife in America knew what the Government only admitted to last month, that we have been in a Recession since January of 2008. The Government cooked the books and denied it as long as they could. They did not want the people to know the truth, not that you can not handle the truth, but the truth would have made consumer confidence drop sooner than it did. In other words, if people had known sooner, they would not have gone deeper into debt than they should have.
By lying, the Government did not change the truth, they only hid the truth as long as they could. The truth is relentless and we will not all be fooled all the time. You can fool all the people some of the time and some of the people all the time, but you can not fool all the people all the time. It was only a matter of time before the Government had to tell the truth that they lied about the truth and that is the truth! If the Government lied about how soon we were in recession, what are they lying about now?
We only know the figures the Government gives us and we are supposed to blindly believe those figures are correct. A closer look shows how they cook the books to fool us. If we cooked our books we would be brought up on charges of fraud. When the Government does it, it is okay, they will readjust the figures later when you are no longer paying attention.
In a recession/depression you might look for high inflation. Inflation is what you see when the things you have to buy cost more this month than they did last month. To calculate that figure the Government used to consider the costs on all consumer products. This is the CPI or Consumer Price Index. Several years ago they decided to remove food and energy costs from the index, not that you do not buy food and energy, it is just that costs of food and energy were on the rise and including them in the calculation would have alerted the public to the fact that inflation was on the rise and we were indeed slipping into a recession a year ago.
Closely tied to the CPI is the COLA, or Cost Of Living Allowance. This is the raise in wages some people get to keep them earning enough to keep up with inflation. If it were accurate it would work pretty well, but when you are lied to by the Government it only exacerbates the problem. If inflation including food and energy were 8%, but the CPI minus food and energy showed only a 2% rate of inflation, a COLA raise would be only 2%. As I said earlier, every housewife in America knew that $100 worth of groceries was costing $108, not $102. So a 2% increase in your wages still leaves you 6% behind real inflation, which leaves you with less to spend on your needs.
Now people had to decide between food or the mortgage and we see where that got us. When you have to keep borrowing from Peter to pay Paul you end up with a sore Peter. As I said, the Government lies only make the problem worse. Of course the actual inflation rate in 2008 was closer to 21%, not the 6.6% the Government admits to. That is double digit inflation, a sign of recession/depression.
I suppose if we told the IRS we were only paying taxes on the income we did not spend on food and energy because it does not count they would lock us up. But if they locked us all up that would cause massive unemployment in all sectors except prison guards. A high unemployment rate would be a sign of a recession/depression. As of this writing the Government figures show the Federal unemployment rate is 7.2%.
The Government calculates this figure based on how many people are receiving unemployment benefits. These benefits typically last 16 weeks. At the end of 16 weeks if you have not found employment you do not automatically get a new job, but your name does automatically get removed from the official list of the unemployed. So if you add back the people who have been unemployed for longer than 16 weeks, the actual figure is double what the official figure is, or 14.4%. That is double digit unemployment, a sign of recession/depression. During the last depression unemployment ran between 15-25%. That means we are almost there.
Another calculation of recession/depression is how many quarters the GDP or Gross Domestic Product has fallen. If we have been in a recession since January of 2008, we know that really the GDP has fallen for four quarters. With rising unemployment it will continue to fall. The Government has said they expect this to be a long and deep recession. A long and deep recession is called a Depression. No amount of anti-depressants will keep you from getting this depression. Wake up people, the money matrix has you.
Phillip Tilley is author of The Money Matrix of the New World Order and other articles.