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What if the austerity measures and balancing budget won't work? The worst may be still on the way...
Christian Concepts Daily ^ | May 7th, 2012 | Norman Bailey, Alexander Mirtchev

Posted on 05/07/2012 6:16:02 AM PDT by se99tp

Other than the stock market crash of 1987, which was seen at the time as the harbinger of another great depression, the worst was avoided due to excellent Federal Reserve policies directed specifically at market psychology. The effectiveness of the Fed aside, it should be noted that the short and medium cycles did not coincide during that period. After the mid-point of the decade of 2000, they did, so that a long-wave theorist could hypothesize that the collapse phase of the long wave was delayed by about a decade, when the three cycles did, in fact, coincide.

The confluence of the three cycles, as exemplified by the 2008-2009 financial and economic crisis, has left in its wake widespread destructive social and political behavior. The situation has been made even more serious by natural disasters, including drought, flooding, earthquakes, hurricanes, tornadoes and tsunamis of a severity unseen in modern times. Political and economic systems are becoming dysfunctional and in many cases unable to defend themselves. What the crisis of 2008-2009 demonstrated was the continued validity of the view that ‘inflation must always end in a crisis and a slump, and that worse than the slump itself may be the public delusion that the slump has been caused, not by the previous inflation, but by the inherent defects of ‘capitalism’.

TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: austerity; economicgrowth; financialcrisis; monetarypolicy
This is very informative and detailed analysis by two respected economists. One of who was President Reagan's economic advisor (Special Assistant to the NSC). It is certainly worthy to read it.
1 posted on 05/07/2012 6:16:15 AM PDT by se99tp
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To: se99tp

I hope I am wrong. . . . .

2 posted on 05/07/2012 6:26:51 AM PDT by DeaconRed (My vote in Nov will be dictated by my extreme hatred for ZERO and what he is doing to our country.)
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To: se99tp
To me the term “Respected Economist” is an oxymoron. No such person in my books. All one has to do is follow the control of congress and shortly after democrats take over (2006) comes disaster. The only time a democratic congress got the country out of a recession was when JF Kennedy got elected in 1960. But, if you go back and see the policy he advocated and got passed you would understand how he did it. HE LOWERED TAXES AND GAVE BUSINESS TREMENDOUS TAX BREAKS. The economy boomed for four years and went straight in the toilet when LB Johnson and his boys took over in 1964. It's not respected economist we need. What this country needs is more common sense. Reagan lowered taxes and the country saw it's revenue skyrocket. The problem was the democrats in power (Tip O'Neil) spent more than the revenue increase. It's true in every case. Today the title democrat means socialist or communist. It's not what it meant before Johnson. That's the rest of the story!
3 posted on 05/07/2012 6:36:48 AM PDT by bramps
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To: Voter#537

I have little doubt. Back in 2007 I said this could be as bad or worse than the Great Depression. My intellect understood, but my emotions had a really hard time grasping that it could even get as bad, yet it is now officially worse.

I now believe, strongly, that we are looking at the worst socioeconomic crash in the history of the world.

And I believed that BEFORE the european elections that went against the "austerity" politicians - which I expected. The people will not stand for the austerity necessary to make this even resemble a soft landing. This is going to be a lawn dart moment. I am beginning to side with all those Rabbi's that say we are entering Ezekiel 39.

4 posted on 05/07/2012 6:40:21 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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To: Voter#537

Pat Robertson’s idea for a Global Year of Jubilee is looking less and less nutty all the time.

5 posted on 05/07/2012 7:17:51 AM PDT by Buckeye McFrog
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To: se99tp

There are huge differences between the conditions in 1987 and today.

In 1987 the long term underlying factors were strong and positive. We had a president who was 100% American in his heart and mind, who believed in the US Constitution, free enterprise, limited government and the spirit and strength of the American people.

Today we have the exact opposite: the long term factors underlying the economy are weak and negative, we have a socialist president who openly detests traditional Americanism, who ignores and regularly violates the US Constitution, who is determined to eliminate the last vestiges of free enterprise, who believes in an unlimited, overbearing, tyrannical, nanny state, socialist government, and who detests individualism and the spirit of traditional Americans.

6 posted on 05/07/2012 8:01:44 AM PDT by Iron Munro (If Repub's paid as much attention to Rush Limbaugh as the Dem's do, we wouldn't be in this mess)
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To: cuban leaf

Yep, the worst is yet to come and it is almost guaranteed to happen.

IF baraq stays in office, he will just go around Congress and ramp up govt spending requiring huge tax increases.

IF baraq is legally defeated, he won’t leave. He will have to be forcably removed. Imagine his supporters then.

IF baraq leaves and IF Romney and the other democrats actually implement plans to make our country fiscally sound, baraq’s army and his media will riot.

Either way we are screwed.

7 posted on 05/07/2012 8:07:46 AM PDT by Texas resident (Hunkered Down)
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To: Texas resident

You pretty much nail it. And the amount of austerity measures necessary to get us even on a REAL road to financial responsibility as a nation would require drakonian austerity measures. Even minor ones have caused a rout in European nations today. They are going to go down hard, and so are we.

8 posted on 05/07/2012 8:14:21 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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To: se99tp

Over the last 60-50 years....

We helped create the European welfare state by freeing up tons of european money that would have normally been used for their own self defense, this allowed them to spend large amounts of money for “social welfare” projects.

We then had people from our country look over to europe and say “Those Europeans are so smart, we need a ‘welfare state’ over here...” and “Oh, Look how progessive are those europeans are with their shortened workweeks and paid early state funded retirements...”

Not realizing that without the US paying the intangible cost of the european countries self defense against communism and they wouldn’t have the extra cash for their welfare state if we weren’t there...

So in a way we helped create the european socialism monster. Maybe as Rev Wright said “chickens comming home to roost”. Just not in the same way he figured. Our own generosity has come back to bite us in the ass(donkey) as we adopted the system we helped indirectly subsidize and then we are all shocked to find out we have ran out of money...

Should we help the european austerity by pulling the hell out of europe millitarily and letting it all burn like greece?


But by helping more we will end up causing more trouble later on in the future, it is a [prime example of the “paradox of unbridled giving”. The more you help the more you screw stuff up, once you helped to a certain point when you pull back from giving you screw the pooch too....

What do we do, keep soldiering it on until it all collapses under it’s own weight?

9 posted on 05/07/2012 9:14:54 AM PDT by GraceG
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