The next recession is unfolding, and it’s going to be the worst one since the Great Depression. I’ve been watching this historically weak US economic expansion unravel since November 2015. See https://johnhively.wordpress.com/2015/11/06/the-coming-recession-and-us-senator-elizabeth-warrens-seniors-and-veterans-emergency-benefits-act-save-benefits-act/. We will officially go into recession somewhere between late this year and June 2017.
Nothing can stop it. Not declining gasoline and oil prices, not falling interest rates.
The corrupt US government has passed legislation over the decades that have redistributed massive amounts of income and wealth from the 99 to the 1 percent. The 1 percent currently steal over 37 percent of all income produced in the US compared to 8 percent in 1980. See https://johnhively.wordpress.com/2015/12/29/new-study-the-middle-class-is-losing-ground-as-wall-street-senators-ron-wyden-mitch-mcconnell-orrin-hatch-and-others-continue-to-use-the-federal-government-and-the-federal-reserve-to-redistribute/. Now the 99 percent can’t purchase enough goods and services to keep the economy and the financial markets chugging along. The economy is set to collapse upon itself. However, there is even worse news.
Sometime between the November elections of 2016 and whenever the new president is inaugurated Wall Street Senator Ron Wyden will introduce the Trans Pacific Partnership (TPP) into committee. This is the largest income and political power redistribution scam in world history. The TPP is falsely marketed as a trade agreement, but it has virtually nothing to do with trade.
President Obama, ever the servant of Wall Street executives, has already signed this scam without a single word of debate in the halls of one of the most corrupt political bodies in the world–the US congress. So the TPP becomes law, unconstitutionally at that, if it passes through the US House and the US Senate.
The TPP will only make matters worse for the 99 percent as this recession swings into full gear. The TPP will redistribute trillions of dollars of income from the 99 to the 1 percent on a yearly basis, as well as steal their state and local voting rights in many cases.
Here’s how bad this coming recession will be without the TPP:
* Effective interest rates will sink into negative levels, like in Europe.
* The nation will flirt with deflation, and possibly fall into it, because trillions of dollars have been redistributed from the 99 to the 1 percent, so demand for goods and services will be weaker than at any time since the Great Depression.
* Instead of 48 million Americans on food stamps, like during the current so-called economic expansion, 60 to 90 million Americans will be on food stamps.
* Unemployment will hit 10 to 18 percent, and will stay above 10 percent for years.
* Mortgage defaults will hit record levels.
* Home prices will decline 20 to 60 percent, and maybe more.
* On average, stocks will lose 20 to 60 percent of their values, and maybe more.
* We’re still feeling the impact of the last recession, and so too will we feel the impacts of this recession for years and years unless….
* Anticipate a possible political revolution as grassroots insurgents take over both major political parties. Think Bernie Sanders and Elizabeth Warren for the Democratic Party, and who knows for the Republican Party?
* Anticipate possible violence as the police and military crack down on protesters.
* Anticipate a US political and economic rejuvenation after many years of hard struggle. People like Wyden, one of the principal architects of this recession, will be a historical footnote.
This Depression will be worldwide.
Imagine what this recession will be like with the TPP.
Now, if we can just stop Wyden and the TPP in congress, that will make our task of a restored America for everyone much easier in the long run. And it will be in the long run that we win.