"deflation is a threat"

[A&A]

http://www.usatoday.com/money/econom...ion16_ST_N.htm

just FYI.

[sweetjasmine]

The article quotes someone as saying that the economy is slowly recovering. I just don't see how. I suppose it could be said that it is but the rate of recovery is far, far below what the norm was before the recession. The government's "official" unemployment numbers of around 8-9% don't tell the whole story. If you count those whose UE ran out, those who took part time jobs because no full time jobs are available and those so discouraged that they quit looking altogether you will have a number more like 16%. To put it in perspective, the Great Depression unemployment numbers were at 25%.

Housing fell last month to a new low. There are millions more in foreclosures still coming. The big banks showing great balance sheets have done some sleight-of-hand with their books and don't tell the whole story behind their numbers.

I'm in the construction materials testing industry and it's scary how far the commercial real estate business has fallen and even residential. We layed alot of people off last year and if things don't pick up soon there'll be more heads rolling.

[KatWrangler]

Did you read the Paul Krugman article a week or so ago about a 3rd Depression?

[sweetjasmine]

I read that. I don't remember if this is from the article or if I read it somewhere else but for those who believe we are actually in a depression they say it won't "look" like the 1930's soup lines and so forth due to our entitlement programs these days like food stamps and UE benefits. If we really are in a depression I don't believe it's as severe, YET, as in the 30's.

[A&A]

Originally Posted by KatWrangler

Did you read the Paul Krugman article a week or so ago about a 3rd Depression?

yes!

[PenelopeJune]

There is no such thing as a jobless recovery. I keep hearing those words, and I want to scream obsenities.

Jobless recovery? No way. Most of the jobs that disapeared are not going to come back. How can we recover if (by their bogus numbers) ten percent of the population has no job? That means they aren't buying houses. Televisions. Cars. Vacations.

And that doesn't take into consideration the people their numbers aren't counting at all, people with no income at all, or people with too little income.

The only thing that has recovered is the banking sector. So it's recovery for the banks and CEOs, and depression for us regular shmucks. (and it's not true recovery for them, because they were only saved by a massive dumping of dollars by the government.)

If you took all the people on food stamps and welfare and etc, etc, and lined them up, you'd have far greater lines than the 'bread lines' of the 1930s. These are our modern bread lines.

[A&A]

Originally Posted by PenelopeJune

There is no such thing as a jobless recovery. I keep hearing those words, and I want to scream obsenities.

Jobless recovery? No way. Most of the jobs that disapeared are not going to come back. How can we recover if (by their bogus numbers) ten percent of the population has no job? That means they aren't buying houses. Televisions. Cars. Vacations.

yep, double-speak.

[Pariah]

Lurking...very interested, but nothing to contribute at the moment (though I read the first article and Krugman's, as well).

[Usually Curious]

So, if we are three years into a 10 year depression (as I believe) what is your strategy? What are you doing to improve your situation?

[sweetjasmine]

My strategy, to be simple and to the point, is to cut back on discretionary and non-discretionary spending where possible, and at the same time to save as much as possible. Oh, and pray that I don't get laid off.

[Usually Curious]

Originally Posted by sweetjasmine

My strategy, to be simple and to the point, is to cut back on discretionary and non-discretionary spending where possible, and at the same time to save as much as possible. Oh, and pray that I don't get laid off.

This is ours, too.

[Juvysen]

[velochic]

I've been saying this for almost 3 years now. Not that I believe in anyone's predictions, especially my own. Still... I hope people are starting to wake up to the possibility.

[A&A]

Originally Posted by Usually Curious

So, if we are three years into a 10 year depression (as I believe) what is your strategy? What are you doing to improve your situation?

That's the million dollar question! (no pun intended.)

DON'T put money into stocks, is one piece of advice I have.

[Usually Curious]

We're reducing expenses. I go w/out AC as long as possible - hang out in the basement or outside in the shade w/the sprinkler on. Don't use the oven at all and eat a lot of cold food. Also, we have cut back on groceries a lot. We hardly ever eat meat. We hardly ever buy snacks or sweets. We don't go out to eat as a family (only on date night once a month). We rarely drive 'into town' for anything.

My sister looked up her Sam's club receipts for the past year. The exact same toilet paper that she paid $14 for a year ago now costs $27!!! That's inflation baby! I feel it every time I go to the market.

[A&A]

Originally Posted by Usually Curious

My sister looked up her Sam's club receipts for the past year. The exact same toilet paper that she paid $14 for a year ago now costs $27!!! That's inflation baby! I feel it every time I go to the market.

I fear "stagflation" -- prices stay high but wages go down.


I've noticed that paper-products in specific have gone higher, including TP. (But it's also possible that Sam's Club used to use that TP as a loss leader and now they don't anymore.)

[Usually Curious]

Originally Posted by A&A

I fear "stagflation" -- prices stay high but wages go down.


I've noticed that paper-products in specific have gone higher, including TP. (But it's also possible that Sam's Club used to use that TP as a loss leader and now they don't anymore.)

We are living stagflation right now. We have millions of unemployed/underemployed people who cannot afford basic living. We see the threads on here every day.

If you have a job you need to make yourself irreplacable, although that still may not save your job in this kind of economy. In the meantime, stock up on basic foods. IF food stamps survive having basic foods on hand will help your FS/WIC dollars stretch.