Thread: Recession Seen Lasting 20 Years

Recession Seen Lasting 20 Years

Monday, December 7, 2009 8:59 AM

By: Ellen Chang

The recession could last for a whopping 20 years, John Rosevear of the Motley Fool writes.

Rosevear points out that on Dec. 29, 1989, the Nikkei 225, Japan's benchmark stock index, reached a high of 38,957. However, on December 3, 2009, it closed at 9,977.67, a startling 74% decrease.

He predicts that the US will follow the same fate because of “excessive asset expansion,â€

I don't doubt that for a second, in fact, it could last far longer, because in spite of all the attempts by marketeers and politicians to paint a rosy glow to encourage recovery, the elements for recovery aren't there. Americans would spend if they had the money, but they don't. Our industries would start hiring if they still had operations here, but they don't. Our industries would stop leaving if they had a strong economy and a good business climate to operate in, but they don't. It will only get worse over the long-haul, not better, unless we correct the anti-economy policies that caused this disaster to begin with. To rebuild our economy we must:

1. stop illegal immigration
2. pass the FairTax
3. protect our trade
4. legalize/regulate/tax under 2 the illegal drug trade
5. drill baby drill

I've explained on other threads why all 5 are required so I won't reiterate it all here, but in a summary, they're all inter-locked with each other, to achieve a legal prosperous self-sustaining labor force protected against illegal aliens undercutting USr wages and stealing jobs from citizens, that takes home all its earnings free of mandated income-based taxes, that works for companies who are protected against undercutting of their market and who go home with all their earnings free of mandated income-based taxes so they can good wages, invest, expand and offer good benefits like health insurance, where both workers and employers have all of our money supply at their disposal which isn't possible while we have trade deficits and an illegal drug trade, and have access to domestic sources of oil and gas supplies to fuel plants and provide transportation for persons and goods without draining our money supply in foreign oil and gas purchases, all operating within a territory that is protected, secure, regulated and managed for the success of the Amerian Worker and the American Business, which isn't possible with open borders to accommodate an illegal drug trade.

We must do all of these things simultaneously or within short time periods to save our economy.

But, if we do these 5 simple things, we'll have plenty of jobs for our population at sustainable and even prosperous wages with good benefits, ample income to pay bills, purchase new products and services including health insurance as well as to save and invest. This will reduce our government spending as a matter of due course, and help us to balance our federal budget, start paying down the debt which will increase the value of the dollar and restore solvency and economic prosperity to our nation and all its citizens. For those who are truly needy due to legitimate reasons, such as infirmity or disability, we will even have the means to help them have a good life including the possibility of some type of work to supplement the supplements. And we'll return to the independent cash nation we were meant to be instead of the dependent debtor nation we've become.

We can do this. It's just 5 simple steps away, and we can turn this disaster around instantly from the time we achieve these goals which need not take more than 1 year to achieve. We can deport all illegal aliens within a year if we rely upon our local and state law enforcement agencies. We can pass the FairTax immediately, but there is a 1 year lead time to implement, but knowing it's passed will cause our employers, investors and corporations to act upon that change in our tax system and they will start their new expansion and investment plans immediately. We can rewrite our trade protection policies within 6 months and phase them in so the trading partners have time to adjust. We can write a new drug policy in 90 days and implement it within 90 thereafter. We can lift the ban on oil and gas drilling in 1 day.

As soon as we take the actions, the economy will respond immediately and the results will be fantastic ... for everyone this time, not just a few at the top.

As soon we take the actions, the economy will respond immediately and the results will be fantastic ... for everyone this time, not just a few at the top.

Absolutely. It can be done. Iit is the non-implementation of those very components that have destroyed us. And if we continue we will be further destroyed. One myth we have to get rid of is the myth that business is the backbone of the economy. In reality the consumer is the backbone of the economy. When the consumer is strong the economy is strong....and vice-versa. Businesses do not actually create jobs. Consumers create jobs, by consuming. The more resources the consumer has, the stronger the economy gets.

Originally Posted by redpony353

As soon we take the actions, the economy will respond immediately and the results will be fantastic ... for everyone this time, not just a few at the top.

Absolutely. It can be done. Iit is the non-implementation of those very components that have destroyed us. And if we continue we will be further destroyed. One myth we have to get rid of is the myth that business is the backbone of the economy. In reality the consumer is the backbone of the economy. When the consumer is strong the economy is strong....and vice-versa. Businesses do not actually create jobs. Consumers create jobs, by consuming. The more resources the consumer has, the stronger the economy gets.

Exactly.

Job creation is critical to any recovery. But it might take 20 years for the unemployment rate to get back down to 5%.