Specter says nation on 'brink of a depression'

Yahoo News ^ | 3.9.09 | Yahoo News

[Lady GOP]

HARRISBURG, Pa. – The nation is on the "brink of a depression," but there's a "reasonable chance" that the $787 billion economic stimulus package will help ease the situation, Sen. Arlen Specter said Monday.

Specter, R-Pa., said the nation's economic situation is more dire than the public has been told, but did not elaborate.

"Our economic problems are enormously serious — more serious than is publicly disclosed. And I think we're on the brink of a depression," he told reporters at the state Capitol.

[April Lexington]

“I think we’re pretty close to the edge anyway, to be very brutally blunt about it.” And he’s probably right.... The only ways out of a Recession/Depression is innovation and production, BOTH of which have been almost eliminated in America thanks to Democrat policy. Livonia, Phillipps, and Halcion have all closed LIGHT BULB plants across America ahead of new regs REQUIRING mercury-filled light-bulbs. The potential enviro liability in America is just too great to manufacture them here anymore. And that is just ONE example.

Wait until Amerika wakes up to that horrible blue light that used to permeate the Soviet world. Every room in your house will look like a GULAG ward. We are soooooo intercoursed!

[RobRoy]

>>Specter, R-Pa., said the nation’s economic situation is more dire than the public has been told, but did not elaborate.<<

This may elaborate: http://www.freerepublic.com/focus/f-chat/1994684/posts

I do not agree that it is more dire than the public has been told. Those of us that were interested saw the information easily enough. That is why so many of us were saying back in 2006 that this could lead to a depression - or worse.

It really wasn’t rocket science. It is just getting the information.

[tcrlaf]

“there’s a “reasonable chance” that the $787 billion economic stimulus package will help ease the situation”

Oh... C’mon....
The Democrat Party, and hundreds, if not THOUSANDS of Corrupt Democrats have been “Stimulted” by the stimulus!!!

Just LOOK at the billions ACCORN now has to pump in to the economy!!!

Just think of all the patronage Democrats are now buying with this money!

And Billions and Billions of this cash will “Trickle Up!” right in to Democrat Campaign coffers!

it’s CHANGE!!!!!

[CholeraJoe]

I believe that would be impossible to do. The last time most of them took an IQ test was in high school. Since then the ravages of age, disease and substance abuse have probably offset any gains attributable to life experience or education.

[RobRoy]

Interesting post. See my post 82.

[Jenny217]

I agree. If you only consider what the MSM has been reporting you are clueless. Sending that joker home can’t happen soon enough. I’d call him a nitwit but don’t want to insult all the other less dangerous nitwits.

[April Lexington]

That is my fear. The village idiots are running the country. We send them to Washington to get them out of our hair back home. Then, look what they do!

[Purrcival]

Words fail me. The nerve...HE helped push us to where we are, along with the Socialist-in-Chief!

[OrangeHoof]

“I think we’re on the brink of depression,” says Specter at the scene of the crime.

“Let’s spend more money!”

[bvw]

The stimulus is poison. We are not quite in a depression, but as the “stimulus” comes into execution we WILL be, and it will pin us all down and keep us sicko.

[sanchmo]

Correction: The Fed doubled the monetary base (bank reserves sitting at the Fed), but the money supply (the M1 narrow measure) has barely budged (yet). That is a clear sign of a deflationary depression.

Remember that the Fed doesn't really create all money - it creates monetary base, and then bank lending creates the vast amount of "money" that is "in circulation." In a typical situation, if the Fed doubles the monetary base, M1 increases by 2 or 2.5 times, depending on the multiplier (which refers to how many times $1 is lent by a bank, re-lent by another, etc etc). In a deflationary environment, the multiplier can be low, so that doubling the monetary base may only increase M1 by 10% or 50%. That's why deflation is so hard to control or stop - it's not the Fed doing it, it's the Fed losing control of its usual mechanism - as predictable in a fiat, credit-based monetary system as inflation, but not as infrequent.

And then there's today...

Last year, the Fed **more than** doubled the base, and money supply barely budged - every measure including M1, M2 and MZM turned slighty up and then shrugged it off. As a matter of fact, the numbers claim that monetary base EXCEEDED M1 for a period of time, and that today monetary base and M1 are about equal. That's unheard of, and I don't understand how it's even definitionally possible.

But here it is in its absurd and freightening glory:
(Note that in order to better visualize the ratios, Base & M1 are on the left axis, M2 & MZM on the right)

Will all that base money come flying back at us as inflation eventually? If our formal banking system and "shadow banking" system return to anything near their previous selves, yes. I'm not holding out much hope of that for a few years, but it pays to be prepared.

[SuperLuminal]

With idiots like Specter around, there is good reason to be depressed!

[dancusa]

That pork bill is a GEN U WINE highway to he77.

[ronnie raygun]

Thanks to our elected anti American unpatriotic senators and congressmen. You all had a hand in the destruction of this country!

[silverleaf]

and nationalizing health care and passing card check will help avoid the depression ...?

[personalaccts]

Hopefully he’ll be at home in 2011 to enjoy the downturn since he’ll lose.

[eureka!]

Senator, you are striking me as either a stupid Asshat, a lying Asshat, a corrupt Asshat or combination of the three...

[bill1952]

Specter, R-Pa...

And this guy voted YES to the pork filled socialist agenda that threw TRILLIONS away.

Trillions. Get lost arlen.

[JrsyJack]

Geez Arlen did you really mean to cause that 1,000 point drop in the Dow and the run on the banks when you announced to the world that the US Gov't was intentionally withholding information regarding the dire state of the economy?

Ummmm...guilty but unproved.

What a senile old bast&^%, he should be removed from office at the earliest possible moment. Even if Fast Eddie appoints himself to the seat

[I_be_tc]

How can we review their financial disclosures to see how many dumped their holdings in the market BEFORE the downturn. Can we get them on insider trading? Something, anything!?!