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November 24, 2008 in News | 5 comments
Things really are going from bad to worse.
Trees do not grow to the sky.
True for countries as well as companies.
Tags: conversation, countries, depression, downturn, google, layoffs, murder
Mike Warot on November 24, 2008 at 5:59 pm
Money is lent into existence in this country, which is counterintuitive at best, but is a hard cold fact. As people worry about the future they try to pay off debts and hoard cash as a hedge against uncertainty. This reduction in debt is a direct reduction in the amount of money available to the economy. Eventually everything would even out as savings reached a sane rate… however
The Fed has been artificially holding interests rates down for quite some time now, which means there’s no reason to put money in a bank, which compounds the already abysmal reserve situation (a quick look at the most recent Fed H3 report shows… a big suprise…>
The monetary base has grown 78% from $824,647 to $1,475,856 Million in the past year, if the preliminary November 19th numbers are correct. That implies 78% inflation is in our pipeline!
It’s worse than I thought, yikes!
Mike Warot on November 24, 2008 at 11:09 pm
The big issue is opacity / lack of transparency.
Nixon knew it was a bad idea to drop the Gold standard, but he wanted to be re-elected, and did it anyway. That simple act which one presumes he thought was temporary, decoupled the dollar from reality. The world bought the pipe-dream of American Exceptionalism for a surprisingly long time… and it may still hold out for a while, but we’ve killed the Goose that lays the Paper Golden egg… and the paint is starting to fall off the eggs we’ve been trying to substitute since then.
Once we have no credit left, it’s back to hard currencies, like Russia after the Soviet Union. Unfortunately, there’s a Collapse Gap, and we’re in for a far worse ride.
If we’re lucky, Obama knows all this, and is ready to ram through some huge public transit infrastructure that can run on the 3% of the worlds Oil that we have natively, instead of the 25% we’re used to importing.
We’re going to live in interesting times, and I’m scared shitless.
Mike Warot on November 24, 2008 at 11:11 pm
Ugh… I need preview… I went off topic.
Transparency is desperately needed in all levels of Government, we need a group of randomly selected CPAs and some citizens to just audit everything, including the top secret bits.
Doc Searls on November 25, 2008 at 5:21 am
FWIW, I don’t believe Google is laying off 10,000 people. I believe they’re cutting back on contractors, expanding less aggressively, and maybe reducing the sum of free food and stuff. But they are not immune from the dangers of our times. Not the least of those is a cutback in advertising, which is Google’s main source of income. The company needs to diversify its income sources.
trademark on November 26, 2008 at 1:25 am
It’s a really scary situation. There doesn’t seem to be any oversight, or anyone taking responsibility. Sigh.
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@rwang0 @MarcioOnTW Will do. Meanwhile, just added your tweet (w/2015 forecast) to this post: bit.ly/1z3Nhym #vrm
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@media_bite @NewYorker @ReclaimThePress Keep me posted on how it goes.
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