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THE WORLD IS COMING TO AN END!!

The doom sayers have been saying that now since 1914. No doubt that is true. It will end some year. No one on this Earth knows when, so just enjoy what little time that you have left.

My shtick is "DEPRESSION IS COMING!!". I think I am closer to the truth.

Depression News

The best definition of a financial depression is a period when supply overwhelms demand, resulting in falling prices, unemployment problems, and economic contraction.

Investopedia explains 'Great Depression'

The NYSE crashed on October 24, 1929, a day known as Black Thursday. Thousands of people lost nearly the entire value of their investments, leaving them with next to nothing. The trend continued and the following Tuesday, Black Tuesday, the DJIA dropped 12%, marking the start of the great depression. International trade declined, along with personal income, tax revenues and product prices.

Many economists believed the Great Depression was evidence that capitalism, when left unchecked, is a dangerous ideology.

This caused some nations to change their political structures, such as Germany, who adopted fascism.

Read more:

http://www.investopedia.com/terms/g/great_depression.asp#ixzz1lo6dD63E


Indications of a depression will be a 12% drop in the stock market combined with a high rate of inflation. People will be purchasing gold as a hedge against the inflation, so watch the price of gold closely.

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"Depression is coming". Half of Europe is mired in a recession with 20+% unemployment and 30+% poverty but keeps limping along from one financial crisis to the next.

The United States is so far in debt that it could not handle a recession, not alone a depression, but again keeps limping along from one financial crisis to the next.


Monday, February 20, 2012

United States Fuel Crisis

Depression is coming!

Analysts are predicting that the price of gasoline will hit the $4.00-$5.00 range by this summer.  At present the price of gasoline in the Midlands is around $3.50 a gallon.  It is already $4.00 a gallon in California and many major cities of the United States.

Consumers, when faced with rising gasoline prices, slow their spending.  This causes a contraction in the economy.  Actually the consumers don't stop spending.  Now their discretionary spending money goes into their gas tanks.

If it was just gasoline that increased in price, there would be just a minor blip in the economy.

The price of diesel fuel runs 25 to 50 cents a gallon more than that of gasoline.

Farmers use diesel fuel in their tractors to plow fields, seed, cultivate, and harvest their crops.  Diesel trucks haul the crops to market.  Diesel trucks and diesel powered trains haul the crops to manufacturers.  Diesel trucks and trains haul the finished product to merchants.

When the price of fuel increases, everything in the supply chain increases in price.

The price of diesel in Europe is already at its historic high.  And much of Europe is in a recession.

In the lower right of this blog is a news widget producing news concerning, "diesel price".  Most of the information being produced presently is news concerning the price of diesel fuel overseas.  As the price of diesel goes up here in the United States, more US news will be produced on that widget.

Keep an eye on the stock market widget.  As the price of diesel fuel increases, the stock market will drop.

An increase in the price of gasoline from four dollars a gallon to five dollars would be a twenty percent raise.  Remember that in 1929, it only took a twelve percent drop in the stock market to start that depression.

Depression is coming!
Posted by at 5:09 PM
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