What is Economic Depression

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What is an Economic Depression?

Economic depression means severe and prolonged recession characterized

by inefficient economic productivity, high unemployment and falling price

levels.

In times of depression, consumers' confidence and investments decrease,

causing the economy to shut down. The classic example of this occurred in

the 1930s, when the Great Depression shook the global economy.

We live in a world of euphemism. Undertakers have become "morticians,"

press agents are now "public relations counselors" and janitors have all been

transformed into "superintendents." In every walk of life, plain facts have

been wrapped in cloudy camouflage.

No less has this been true of economics. In the old days, we used to suffer

nearly periodic economic crises, the sudden onset of which was called a

"panic," and the lingering trough period after the panic was called

"depression."

What is World Economic Depression?

In economics, a period of economic crisis in commerce, finance, andindustry, characterized by falling prices, restriction of credit, low output and

investment, numerous bankruptcies, and a high level of unemployment is

called economic depression. When it occurs worldwide with a long term

effect, it is called World Economic Depression.

A less severe crisis is usually known as a recession, a more common

occurrence generally thought to be a normal part of the business cycle;

it is technically defined as two consecutive quarterly declines in the

gross national product.

The current depression is a wake-up call: we must recognize that vulture

capitalism is totally out of control and destroying workers worldwide.

Once people in all countries awaken to this intolerable economic

devastation, we can begin to take back our nations and institute

commonwealth communities for the good of all humankind.

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The current world depression is more visible than usual because we're

seeing not only the annihilation of workers--the usual victims of vulture

capitalism--but also elements within the capitalist system itself being

devastated: banks, businesses, and financial institutions. Unusualfeatures of predatory capitalism, but by the hyperbolicoverindulgence in criminal behavior and the debauchery ofmaniacal greed which are the very essence of this lootingmalignancy. Both depraved indifference and corruption aredistinguishing characteristics of crony capitalism--as isevidenced by the presence of these activities from thebeginning of its history.

Identical Elements of the 1929 and CurrentDepressions

1929 Depression

Current Depression

Liquidity expansion:

In the "roaring twenties" thevalue of shares in theNew York Stock Exchange,the biggest in the world,had increased five fold

Liquidity expansion:

The FED has continued to pumpcurrency into the stock marketand investment fundsresulting in the dot.com,stocks, and housing bubblesbursting

Stock market crash:1932: stocks had lost 89%of their 1929 peak value

1929 share value was notreached again until 1954

Stock market crash:A series of crashes beginning

in the 1980s

Bank failures:President Hoover refused to

assist failing banksAll banks failed in 1932

Bank failures:

Banks are failing worldwide butmost failures are beingcovered up by central bankloansBanks are having to "write off"

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tens of billions of badinvestments and are nowgoing hat-in-hand to foreign

investors to sell a piece oftheir business

GDP:

Down 50% in 1932

GDP::

20% decline in the GDP and a 50%decline in the value of thedollar

Unemployment:

13 million workers becameunemployed with no reliefto speak of; a third of thepopulation sank into abjectpoverty

Unemployment:

Unemployment figures are falsified;at least 25% of Americanworkers are unemployed orunderemployedA third of the population livesin poverty

Fake investment (gambling)funds:

Brokers' loans, buying onmargin: investors could paydown only a percentage ofwhat they were investing

Fake investment (gambling) funds:

Hedge funds: The estimated assetsof these funds have risen from$491 billion in 2000 to $1.75trillion in 2007. The funds'complicated financialtransactions, mostly secretand unregulated, use debt asa tradable security in thesearch for short term gain

The 1930s depression appeared to be the result of the 1929 WallStreet Crash, but 1929 only made apparent a systemic defect,capitalism's chronic overproduction in its decadent phase. Thissame phase of chronic overproduction began again as early as1968, finally resulting in the present depression.

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Home Foreclosures :

In 1932, over 250,000

families lost their homes; inearly 1933, foreclosureswere taking place at a rateof more than a thousand aday.

Home Foreclosures:

About 1.3 million U.S. homesreceived foreclosure-related

warnings in 2007. Throughreal estate shell games, thesuper-rich have looted at least$10-$15 trillion from workers.

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What is Economic Depression