Jim Rogers: US Falling Into 'Deeper Trouble,' Faces 2013 Depression

Discussion in 'Political Opinions & Beliefs' started by DA60, Dec 6, 2011.

  1. DA60

    DA60 Banned

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    'The United States economy never really emerged from the recession that began in 2008 and is possibly headed for a more chronic depression, and the prognosis for recovery doesn't look good, especially in 2013, says international investor Jim Rogers.

    President Barack Obama has tried to spend the economy back into recovery, which never helps, Rogers told Newsmax.TV in an exclusive interview.

    When an economy falls into a recession, which normally happens once every four to six years, it needs to run its course, which is painful but healthy in the long run.

    Spending money via stimulus packages or through ultra-loose monetary policies resuscitates the economy but not for long and makes the day of reckoning even more painful when it arrives.

    Read more on Newsmax.com: Jim Rogers: US Falling Into 'Deeper Trouble,' Faces 2013 Depression
    Important: Do You Support Pres. Obama's Re-Election? Vote Here Now!'

    http://www.newsmax.com/Headline/rogers-us-depression-mess/2011/12/05/id/419995
     
  2. Dr. Righteous

    Dr. Righteous Well-Known Member

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    Thanks for that post. Most folks are ignorant of this economic reality. All of the bad debt that caused the recession needs to be liquidated which means temporary painful economic suffering. But by propping up the bad debt as the government and central bank have done, the recession is dragged out and much longer than it needs to be....all for political gain and for the benefit of the banks. What's good for the banks and the state is NOT what's good for the people. That Keynesian Collectivist mentality has failed. We are in for some serious times ahead because of this.
     
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  3. Vergilius

    Vergilius Banned

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    This is assuming the economy is in a recession and not a depression. A depression has much deeper and lasting effects than a recession, because it means that portions of the economy are never coming back -- in which case, spending is absolutely necessary to recreate industries.
     
  4. Dr. Righteous

    Dr. Righteous Well-Known Member

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    Government spending is only a temporary crutch. Whatever sector of the economy gains from govt spending is what another sector loses. There is no net gain when government spends....because government does not create labor. It merely transfers wealth, which transfers labor. And once the effects from spending wears off, the economy goes right back to where it was. There is no net gain from government spending in the end.
     

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