Don't READ this if you Fear the Truth!

SuperDepression Now Inevitable in 2010

Ok here is some REALLY good info; Please, please read it a few times. Do NOT stick your head in the sand! Of course there are always going to be counterpoints...but most of this is spot on accurate and impossible to ignore as truth. Just today 2 more Analysts said a Depression is likely within a mere 2 years.

The looming SuperDepression has become a mathematical certainty, based upon an excellent research paper by John Williams of ShadowStats. I have listed his site at the bottom of this summation. In his report, he has shown that at the current level of debt to GDP ratio if the US Government were to seize 100% of the GDP (aka your pay cheques and the pay cheques of the companies your work for combined)they would still remain completely unable to meet their currently ballooning financial obligations. That this depression will be hyperinflationary (aka Weimer Republic Type HyperInflation) "As to the fate of the developing U.S. great depression, it will encompass the fire of a hyperinflation, instead of the ice of deflation seen in the major U.S. Depressions prior to World War II."

What promises hyperinflation this time is the lack of monetary discipline formerly imposed on the system by the gold standard, and a Federal Reserve dedicated to preventing a collapse in the money supply and the implosion of the still, extremely over-leveraged domestic financial system. "That based on historical measures, the incumbent party will loose power. In every presidential race since 1908, in which consistent, real (inflation-adjusted) annual disposable income growth was above 3.3%, the incumbent party holding the White House won every time. When income growth was below 3.3%, the incumbent party lost every time."

Again, with redefinitions to the national income accounts in the last two decades, a consistent measure of disposable income as reported by the government has disappeared. Yet, even with official reporting, the current annual growth in real disposable income is at 2.2%, well below the traditional 3.3% limit. That 11 successive adminstrations have pushed the government liability to its absolute maximum (aka cannot stop spending.) "Where Franklin Roosevelt abandoned the gold standard and its financial discipline for the debt standard, eleven successive administrations have pushed the debt standard to the limits of its viability, as seen now in the ongoing threat of possible systemic collapse."

The effect of these policies has been a slow-motion destruction of the U.S. dollar's purchasing power, since the gold standard was abandoned in 1933. That according to GAAP based financial statements the real debt load of the US Government is $62.6 Trillion with a $4.0 Trillion deficit for 2007. The limits to the unlimited abuse of the debt standard are particularly evident in the GAAP-based financial statements of the U.S. government, which show the actual federal deficit at $4.0-plus trillion for 2007 alone, with total federal obligations standing at $62.6 trillion.

With no ability to honor these obligations, the United States government is bankrupt. The paper continues with : "Again, the current circumstance will evolve into a hyperinflationary depression, then great depression. Although such is not likely much before 2010, or after 2018, that financial end game for the current markets will tend to come sooner rather than later and will break with surprising speed when it hits. As discussed later, this likely will not be a deflationary environment as seen during the Great Depression."

What are you supposed to do? Stockpile money when your money cannot buy anything anyway??? I would quickly (aka this week) find a place where you can holdout the roving madness that will envelope the cities as this will with utter Certainty eventually come to pass. This paper below recommends that those who DO have any money quietly transfer it (NOW) to a currency that is still gold-backed (such as the Swiss Franc.) Why oh WHY did the USA EVER stop using the gold standard I will Never comprehend!

It is also important to note that the Federal Reserve has already committed itself to this scenario with its policy of protecting the system.

For the WHOLE story PLEASE go to this website - http://www.shadowstats.com/article/292