What will a depression look like?
The government has been preparing the people of this country to absorb the cost of a massive failure in our current economy, as opposed to industry which was hurt by the Crash of ’29.
Some of these preparations have included a tightening of the bankruptcy laws, making it nearly impossible to have credit card or loan dept forgiven.
Legislation as also been passed to eliminate what would normally be called frivolous lawsuits against corporations for faulty products, or actions.
Massive credits have been recently given oil companies, and others to prevent an interruption in supply, again.
What will a depression look like?
One of the first indicators will be the bankruptcy of Ford and General Motors. This will in turn effect the few remaining auto manufactures in the US. Expect to see the overseas makers, such as Toyota, Nissan, and Hyundai to close their plants.
Fuel shortages will occur as Venezuela will have cut off exports of oil, which in effect will cripple any industry dealing with shipping, medicines, or plastics.
Those with adjustable Mortgages, credit cards, or loans will be homeless. There is no longer any consumer protection from these.
Due to transportation and monetary problems, you will finally get your wish and lose Wal-Mart, but, they will attempt to hang in there far longer than any other local companies.
Due to transportation costs, the Airlines will close, the resorts will close, and restaurants will cease to exist. Imports of fresh fruits, coffee, and items from China will cease.
The government will refuse to subsidize vegetable, dairy and tobacco farmers, thus driving them into sizing their crops down for their own needs. Same with the prices of meats, poultry and any other products that depend on transportation needs. Those who live near farms will survive. Those in cities will not.
Do you think that this is an extreme estimate?
If so, I think that you better have a look at the current economic indicators. These are unemployment, interest rates, faith in the current government, and war.
Starting with Vietnam we have learned that War no longer is an economic boom for our industry. A prime example of this is that even the simplest of military clothing items such as the Army’s berets, are made in China. We are even purchasing ammunition from Israel and some of the former Soviet States.
Trust me; this is the lowest, possible estimate of a depression. There will not be any WPA, no CCC. Social Security and Medicare will cease.
As it has been said, the Ports are just the beginning. When the other nations call in the notes on the money, that this country has borrowed, we’ll be lucky to have anything.