Monday, October 25, 2010

60 Minutes: The 99er's

Last night's opening segment on 60 minutes was a look at the unemployment situation in America; specifically the people rapidly approaching the expiration of the 99 weeks of unemployment benefits.

They spoke with residents from a city in California to get a snapshot of the unemployment situation in America as a whole. 

The video does not discuss why we are currently in an economic depression: We are in the early stages of the deleveraging process of a 30 year debt binge that burst in August of 2007. 

In a normal environment the debt is liquidated as the economy restructures itself to become more competitive in the global environment.  (More focused on exports and manufacturing)

Our leaders have taken the exact opposite approach.  They have decided to allow no inefficient companies to fail and have not allowed the toxic debt to be purged from the system.  To cleanse itself.

Instead they have decided to create spending programs with additional borrowed debt, and the Federal Reserve has decided to purchase the toxic debt with printed currency.

This means that our economic depression is not in the latter stages; it has not even begun.  The final outcome will be a hyperinflationary depression and the collapse of our currency.

There will still be no jobs available during this period, only the cost of living will skyrocket.  It will be a period of civil unrest and will most likely take our country to war as our leaders view this as the only economic solution.

History repeats.  Rinses, then repeats.

This final outcome can still be averted but neither a Republican or Democratic win will change things this fall.  Both parties are fully focused on the most destructive outcome possible.

Full 60 minutes clip below:

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