–Why there will be a full-blown depression in 2012

Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
The Naked Capitalism blog quotes the N.Y. Times, in an article titled, “More Proof That Obama is Herbert Hoover”:

An extraordinary amount of personal income is coming directly from the government. Close to $2 of every $10 that went into Americans’ wallets last year were payments like jobless benefits, food stamps, Social Security and disability, according to an analysis by Moody’s Analytics. In states hit hard by the downturn, like Arizona, Florida, Michigan and Ohio, residents derived even more of their income from the government.

By the end of this year, however, many of those dollars are going to disappear, with the expiration of extended benefits intended to help people cope with the lingering effects of the recession. Moody’s Analytics estimates $37 billion will be drained from the nation’s pocketbooks this year.

And President Obama not only wants federal budget cuts, he is aiming for a $4 trillion cut – the biggest cut even he can imagine. He’s ready to cut spending for everything – Medicare, Social Security, Medicaid – and to compound the problem, he wants to increase income taxes (but “only” on the wealthy, so that won’t remove money from the economy . . . or will it?)

Consider the enormous money drain from the economy, when the government reduces spending and compounds it with increased taxes. The economy is starved for money, and the government wants to cut the supply. Talk about applying leeches to cure anemia!

Question for debt-hawks: Where is the money going to come from to grow our economy? Given any thought to that?

The article’s author makes one final comment:

Even knowing how dedicated to bad ends Obama is, I still feel like I’ve walked into a parallel universe. He’s now determined to make these horrific entitlement cuts a sign of his manhood. This is “Change” for sure, to a more brutal, grasping, dog eat dog society, all administered by self serving elites. They will in the end reap the whirlwind they are creating, but not before it mows a path of destruction through our social order.

Based on where Obama and the Tea/Republicans are headed, there will be a depression (not just a recession) next year. Only a miracle of realization, by both parties, can save us now.

Rodger Malcolm Mitchell

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.


15 thoughts on “–Why there will be a full-blown depression in 2012

  1. From the Washington Post: “Obama spoke after Republicans rejected a deficit-reduction framework that would raise taxes and cut entitlements. ‘I continue to push congressional leaders for the largest possible deal,’ Obama said at a White House news conference. He added, ‘I will not sign’ a short-term extension.”

    Translation: “Drain the largest possible amount of blood from the anemic patient.”

    We are doomed.

    Rodger Malcolm Mitchell


  2. Sounds about par. How can they excuse martial law and the murder of anyone, little say the numbers they’re aiming for, that the FEMA camps were designed to handle and send up the smokestacks, especially anyone with a little gumption, without civil unrest? Whether it’s caused by allowing the super-wealthy to steal the savings and retirement funds of half the population and destroy the formerly greatest industrial base on the planet and 95% of the jobs paying more than minimum wage, or it’s the insane destruction of the natural health industry concomitant with turning the food supply over to Monsanto and the GMO industry (and therefore losing it, because Monsanto doesn’t grow any food; they just render what others grow toxic and inedible), and on top of that poisoning the population with vaccines and fake “medicines” that are debilitating or deadly – well they need some sort of halfway plausible excuse.

    I have to admit though, they’re trying hard.



  3. “Where is the money going to come from to grow our economy?”

    The money is already in circulation. So I guess that all indebted people have to service their debt through work.


  4. To grow the economy requires growing the money supply. The best way is to increase federal deficit spending.

    Yes, indebted people, being monetarily non-sovereign, need a source of money like work, inheritance, lottery, etc. The federal government, being Monetarily Sovereign, needs no source of money. It creates money by spending.

    Rodger Malcolm Mitchell


  5. The money is NOT “in circulation” – the banksters and the corporations are sitting on it! This is the debt slavery the Fed was created to shove us into. The corporations need to pay their own way again. No country can survive allowing jobs, profits and everything else to be shipped out of the country. The country is indeed being bled to death.



    1. When corporations “sit on” money, what do they do with it? Aside from buying T-securities (which I oppose), they put it into circulation, either by investing or by banking. There is no vault where dollar bills are stuffed.

      Rodger Malcolm Mitchell


  6. In the United States today, there are millions of people with no jobs, no hope and no future. The mainstream media keeps promising that an “economic recovery” is right around the corner and most Americans are desperately hoping that 2011 will be better, but you can almost feel the frustration of the American people rising.

    We live in a country today that is very frustrated and very angry. Some of that anger and frustration is rational, but a whole lot of it is irrational. Most Americans have been brought up to believe that they are entitled to “a good life”, and when that doesn’t happen they start behaving like spoiled little brats.


  7. Once upon a time, Americans generally conducted themselves with humility, grace, civility, honor and with a tremendous amount of respect for others. Sadly, those days are now long gone. Now, large numbers of people in this country are just going wild.

    So what is going to happen when the economy collapses and shortages begin? What kind of violence and rioting should we expect to see at that point? Just recall what we witnessed in the aftermath of Hurricane Katrina. Sadly, if the videos below are any indication, the thin facade of civilization that we all take for granted every day could completely disintegrate in the event of a major economic catastrophe.

    Today, society actually teaches our young people to be disrespectful and rude. Arrogance and violent behavior are glorified in our movies, on television and in our music. Our culture is literally degenerating right in front of our eyes. The whole country seems to become more selfish, more self-centered and more greedy every single day.


  8. Back during the Great Depression of the 1930s, the American people were able to pull through because our citizens still possessed a great deal of character. But today many Americans are incredibly spoiled. Many Americans believe that they are entitled to everything and that life is all about them. They are in love with themselves, they are in love with money and wealth, they are arrogant and boastful, they don’t respect their parents, they are addicted to entertainment, they have very little self-control and they have very little love for others.

    Fortunately, there are also many Americans that still have good hearts, that are willing to fight for the truth and that are willing to live for something greater than themselves.

    We are going to need leaders that are going to be able to keep it together when times get tough in the years ahead. When most people realize that the “good times” are gone forever, they are absolutely going to lose it. Many people are going to totally freak out.

    But if you are willing to embrace the challenges ahead instead of letting them swamp you with anger and desperation, then the coming years could become a great time of victory and adventure for you.


  9. It isn’t so much lack of character – it’s deliberate sabotage and conditioning and deliberate destruction of the Constitution and the infrastructure we had built up over generations. We’re under concerted and massive attack by the super-wealthy – and we’re losing.


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