The Greater Depression All Over Again

The parallels between the 1930’s Great Depression and today’s Greater Depression are uncanny, despite the propaganda emitted by the establishment politicians, media and banking cabal that all is well. The corporate mainstream media faux journalists scorn and ridicule anyone who makes the case we are currently in the midst of another Great Depression. They are paid to peddle a recovery narrative to keep the masses ignorant, sedated, and distracted by latest adventures of Caitlyn Jenner and the Kardashians. An impartial assessment of the facts reveals today’s Depression to be every bit as dreadful for the average American as it was in the 1930’s.

The Obama administration has used the identical failed fiscal policies utilized by FDR. $800 billion stimulus packages, cash for clunkers, payroll tax holidays, student loans for anyone with a pulse, and hundreds of other useless Keynesian claptrap ideas have driven the national debt from $10 trillion in September 2008 to $19.4 trillion eight years later, a 94% increase. The national debt in October 1929 was $17 billion. Eight years into the Great Depression, after billions in wasteful New Deal programs the national debt stood at $36.5 billion, a 115% increase.

The Great Depression lasted from 1929 through World War II despite the tens of billions spent on fiscal stimulus. After eight years of the largest budget deficits in history, the economy is still dead in the water, with GDP barely growing. And its pitiful growth is from the surge in consumer spending due to the calamitous Obamacare program and the continuous wars we wage across the world.

It’s the black and white photographs of disheartened men and hungry children from the 1930’s that define the Great Depression for present day generations. Of course after years of government run social engineering disguised as education, most people couldn’t even define when or what constituted the Great Depression. These heart wrenching portraits of average Americans suffering and in despair capture the zeitgeist of the last Fourth Turning crisis.

Apologists for the status quo contend the last eight years couldn’t possibly be classified as a depression. The narrative of economic recovery has been peddled by corporate media mouthpieces, feckless politicians, Too Big To Trust Wall Street bankers, Federal Reserve puppets, and government apparatchiks flogging manipulated data as proof of economic advancement. They point to the lack of soup lines as proof we couldn’t be experiencing a depression.

Now they are pondering negative interest rates, which have failed across Europe already. These academics, who’ve never worked a day of their lives in the real world, impose their demented monetary theories and guesses upon the citizens of the world, leading to havoc, chaos, heartache and ultimately war. When did capitalism devolve from saving and investing to borrowing and spending? Does 1913 ring a bell? Stanley Fischer, the vice chairman of the Federal Reserve revealed his disdain and contempt for the commoners in an interview this week:

“Well, clearly there are different responses to negative rates. If you’re a saver, they’re very difficult to deal with and to accept, although typically they go along with quite decent equity prices. But we consider all that and we have to make trade-offs in economics all the time and the idea is the lower the interest rate the better it is for investors.”

To paraphrase George Carlin, “he doesn’t give a fuck about you”. He knows there are more than 90 million American over the age of 55 in this country who are risk averse. Eight years ago they could earn a relatively risk free 4% in a money market fund. A retired couple with $250,000 could generate $10,000 per year in interest to supplement their Social Security. Today, due to the policies promoted and implemented by Fischer, Yellen and their cohorts, that couple can earn about $600.

And now he wants the elderly to pay him for keeping their money in the bank. These demented Federal Reserve schemes are guaranteed to blow up pension funds, endowments, and any other investor in bonds. The hubris and inhumanity of Fischer and his ilk makes me want to wretch. Fischer’s sole purpose in life is to serve his Wall Street and establishment masters. Screw the peasants. They are expendable.

There are now $11 trillion of negative yielding government bonds floating around the planet. No one in their right mind would buy a negative yielding bond. It’s not an asset. It’s a liability. An investor is guaranteed to lose money. You know the debt endgame approaches when governments issue negative yielding bonds that are then bought by central bankers and the banks that control them. It’s nothing but a stalling tactic to fend off the imminent collapse.

Are you awake yet?