Look Out! Here Comes The Double Dip Recession!

The American public wasn't told that Yes We Can meant Yes We Can Your Jobs: The Audacity Of Hope has turned out to be the Apathy Of Dopes.

Here comes the double dip! No, not a luscious double helping of delectable ice cream on a scrumptious waffle cone... something a lot nastier than that. The global economy is heading for a double dip in the recession graph category, and this one is going to be much more vicious and long lasting than the last one.

Indeed, there is ample reason to believe that this will be a VL recession. What's a VL recession? Follow the roller coaster of the letters. First you drop down the V to the bottom, then you rise up the other side, then you slide down the L and you flatline at the bottom.

Why such Chicken Little doomsaying? Simple. All hell is about to break loose around the world and there is nothing that can stop it:

The Audacity Of Hope has turned out to be the Apathy Of Dopes. The American public wasn't told that Yes We Can meant Yes We Can Your Jobs. Unemployment is just refusing to go down. Either this was the first recovery in history where unemployment kept going up, or we were sold a bill of goods on the fact that there was a recovery at all. As I write this, the Dow is just a few ticks away from falling below the four digit mark, this time for good.

The stimulus is spent, or wasted, depending on your economic viewpoint. Each and every taxpayer in the USA is now indebted to the tune of $100,000. Now what? If you think that there are a few more trillions of dollars to keep throwing in the maw of an economy perennially on life support, you're dead wrong.

Greece is about to implode. So who cares about Greece? It's an Eurozone country and the crack that Greece is causing could bury the Euro. Given that the economy of nearly the entire European continent is tied into a common currency, the return to conflicting national currencies presents a Beyond Here Lie Dragons scenario. No one knows if it's even possible.

The situation with China is spiraling out of control. Google pulling out of China to protest government hacking was just the beginning. The UK government has warned all its citizens attending trade fairs with Chinese exhibitors to not accept any free novelty USB keys or micro cameras from them. It turns out that once you plug them in, they secretly call home to Beijing and dump all the data on your hard drive onto government computers. Now that the USA is selling a whack of arms to Taiwan, this is going to create some serious tsunami waves. Don't forget that a huge chunk of the American deficit is owed to China. They can claim to own the USA.

See, old Uncle Hal kept telling you not to elect the Marxist Barack Hussein "Puttin' Out The Fire With Gasoline" Obama as President! You Americans should have elected Dandy Don Meredith. At least now you could tune into a press conference at the White House and hear him croon: "Turn out the lights, the party's over, it's true that all, good things must end..."

 

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Comments 38 comments

eovery profile image

eovery 6 years ago from MIddle of the Boondocks of Iowa

Yeah, I am afraid you may be right. And on top of that, here in the US we have idiots in congress and as a president who want to do cap and trade and several other things that will just make it that much worse.

I am starting to think that Obama wants to have the economy fail, so congress can pass more laws and control more things, just like Hugo Chavez is doing.

Keep on hubbing!


William R. Wilson profile image

William R. Wilson 6 years ago from Knoxville, TN

Not sure how the problems in Greece and with other world economies are Obama's fault. But if you say so...

I think overall you could be right - too many economies in the world were based on easy credit. But we'll just have to wait and see.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

eovery: The standard Marxist ploy is to seize power, purposely devastate the free market system, then turn to the people with a doe eyed look and say "see... capitalism doesn't work... now we have to try it my way." This is precisely the Chavez playbook as you have noted, and it is also what is happening in the USA. I personally don't believe that Mr. Obama is acting this way out of malice, but out of ideology. He doesn't understand that what is happening is an unmitigated disaster that no Das Kapital policies are going to alleviate.

William R. Wilson: I am a very strong opponent of everything Mr. Obama stands for ideologically, but there are times when I do have to agree with what he does. He definitely is taking the correct step in selling arms to Taiwan. As for Greece, it is not a direct policy responsibility of the White House, but one can argue that if Mr. Obama hadn't tanked the USA, the engine of the world economy, Greece, Spain, UK, Ireland, et al. wouldn't be teetering on the edge of a chasm which could effectively cripple the European economy for a decade.


Misha profile image

Misha 6 years ago from DC Area

Yeah my friend, I see some nasty things ahead, too. But this is nothing new, we agreed on it quite a while ago. :)

And no William, Obama is definitely not the sole person to blame for that crisis, yet he is the sole person to blame for seriously amplifying its severity with idiotic socialist moves. :)


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

I believe that you and I and a mere handful of others deserve nomination as prophets, my dear Misha. We saw it coming and spoke out while many others were still too intoxicated by the charismatic young President to see through to the fundamentally flawed ideology he champions. Now just one year into his Administration, the American people are seeing record-shattering deficits, a spending spree unlike any in human history which has failed to as much as make a dent into the macroeconomic malaise, foreclosure and unemployment rates still skyrocketing, and the only future course in sight: More spending. I believe that it still has not fully sunk in to the American people just how quickly and severely Mr. Obama has bankrupted the entire system, while indebting an entire generation to China and their ilk with a multi-trillion dollar mortgage on the country that can never be paid off!


Tom Cornett profile image

Tom Cornett 6 years ago from Ohio

Tech schools and community colleges are packed. Many are getting a free education for service jobs that don't and will never exist. There will be a short rise just before the November elections though.

The have lots and have nots era is approaching fast. I made $8 an hour back in the late 70s...most of the jobs out there now are $8 and hour....usually temp work. Many will be equally poor...few will live comfortably and very few will be filthy rich.

It is here Hal...and it's becoming more obvious by the hour.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Tom, I agree with you fully. However, I think the mess is so severe that even though the Administration will want to see an uptick before the Nov. elections it's going to be beyond them, no matter how many trillions they continue to steal from the American taxpayer.

This economy is Wile E. Coyote who has run off the cliff and is still running. But pretty soon he will look down and... oops!


Tom Cornett profile image

Tom Cornett 6 years ago from Ohio

Hal...you're probably right..if there is an uptick...it will more than likely be enhanced numbers and more lies.

Wile E.....perfect comparison. :)


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Thanks, Tom. Now join Misha and me in headin' for the hills while we can still get fuel for our four-wheelers! :)


Tom Cornett profile image

Tom Cornett 6 years ago from Ohio

LOL....I have an old V8 Dodge truck...perfect for the hills.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

You lead the way, dude, I'll be right behind you in this:

http://hubpages.com/autos/Revealed-2011-Jeep-Phoen...

:)


Tom Cornett profile image

Tom Cornett 6 years ago from Ohio

That is a cool Jeep! :)


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Ya! I love it. I should. I'm its daddy. I made it. :)


Tom Cornett profile image

Tom Cornett 6 years ago from Ohio

Proud daddy too...huh? :) The only trouble it would have selling here is that it makes sense. Every car these days looks like a Ford Pinto had sex with an AMC Pacer.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Yup, I'm very proud of my little Panda! :) I remember how many car enthusiasts howled and jeered the Pacer, but if you compare it to the Nissan Cube, I'd much rather have the keys with the AMC logo on them. :)


Tom Cornett profile image

Tom Cornett 6 years ago from Ohio

I know what you mean about the logo. American car companies are in the too little too late mode now. I knew an engineer for GM...he told me they only had two problems...quality and design. :)


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Ya, GM has a third problem now too. They're addicted to bailouts worse than a junkie to horse. GM is no longer in the automobile manufacturing business, they're in the business of creating illusions (read: Volt) that the Administration will buy into and fork out another 10, 20, 30 billion bucks of your money. :(


Springboard profile image

Springboard 6 years ago from Wisconsin

I agree that the Obama presidency is a total disaster, and will be proven so in more ways than one in the historical record. Still, I'm not one to buy into the doomsday scenario. There are still many issues with regard to the economy, and yes, we have seen some very bad economic conditions since the Great Depression.

But for me, therein lies the difficulty. When you compare our current condition to the Great Depression, what we are facing now, while bad, is nothing even remotely close to what we faced during the Depression. For one, unemployment was around 33%, not 10%. GDP reduction was over 15%, not 6%. People struggled for a loaf of bread or a shirt to wear. People now fight over the lastest iPad or iPod, or cell phone. Even the homeless have cell phones (ever see that picture of Michelle Obama feeding the homeless, the one guy in line talking on his cell in tattered clothes?). We have big screen TVs, Wal-Mart has had record profits during the Great Recession, selling electronics even. Do you know that one of the best performing stocks during the Great Recession was McDonald's?

That said, I do think we have much work to do in our own country to get "buy American" back into the vocabulary and mindset. We've got to restore the middle class through re-industrialization. And we've got to have a good balance between saving AND spending, because let's face it. None of the recession's problems may have occurred had people had money in the bank to cover their debts.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

I am 100% in agreement that we haven't hit Depression levels yet, but that's because Wile E. is still pedaling madly. This pseudo-made-up-wimpoid recovery has just run out of gas... and to make things worse, this is just off CNN:

---

In his latest quarterly report to Congress, special inspector general Neil Barofsky said that the Troubled Asset Relief Program, or TARP, has failed to boost bank lending as well as halt the spread of foreclosures -- two key aims of the sprawling program

---

So even the government is acknowledging that they have devastated the future of American taxpayers and accomplished nothing!

You cannot simply give away $9 trillion dollars and expect that "someone" will pay for it. That "someone" is the US taxpayer, and they can't afford it.

The dynamics in play now are completely different than 1929, of course. It's a different world. The causes of this upcoming great depression will be about the inability of US taxpayers to keep up with the enormous debts incurred in their names. Regular working people can barely handle paying their taxes now, let alone adding on another $100,000 bill to each and every individual who files a tax return! The deficit is mostly held by nations who are anything but "friendly" and when it comes time for "the pound of flesh" to be collected it's going to be massively ugly. :(

I have written in other Hubs how I am optimistic that the American people's collective wisdom and greatness will pull them through this trial, but there will be much wailing and gnashing of teeth before they do!


Springboard profile image

Springboard 6 years ago from Wisconsin

Let's just together hope you are very wrong in your analysis. Let's just hope. :)


Singular Investor profile image

Singular Investor 6 years ago from Oxford

Tell me where I am going wrong Hal, I thought the economic meltdown in 2007-2008 occurred after 7 years of Republican government and it was the Bush government that started this whole let's bail out the banks scenario ? In what way was Obama to blame for the economic mess he inherited from Bush ?


Misha profile image

Misha 6 years ago from DC Area

Fighting a straw man, SI? Good luck! :D


quicksand profile image

quicksand 6 years ago

You know Hal, Wile E Coyote will keep running and will never look down. He will not even notice the ground materializing below his feet when he reaches the other side. It will. (beep! beep!) He's got the impetus!

I sincerely hope ...


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Springboard: I would be overjoyed to be wrong in this case. The upcoming years may be very bleak indeed and it would be a blessing to avoid the darkness.

Singular Investor: Here is where you're going wrong. Mr. Obama has placed the USA in debt in exactly one year MORE than the ENTIRE debt placed on the nation not just by the Bush Administration but the Washington to Bush Administrations. More debt in 12 months than in about 230 years. Bush was a moron, no doubt about it. But Obama is a Terminator.

Misha: Wish him luck. He'll need it.

quicksand: I'll have you know that I studied physics at the Chuck Jones Institute and received a WB with honors. The coyote cannot reach the other side as that would be an inertial acme violation of the Schrodinger Roadrunner law which states that inside the cave, the beep is always half there and half not. :)


quicksand profile image

quicksand 6 years ago

You know Hal, The Schrodinger-Roadrunner law CAN be violated. You should do it when nobody's watching! :)


mel22 profile image

mel22 6 years ago from ,

VL curve ! No doubt... This was a great Hub! Our economy 's Ruined. Half the people have been seeing this for awhile now. The half without work !


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

quicksand: The problem is that I think that my "observer" is really a voyeur. Kinky roadrunner sex perv. :)

Thanks, mel22. Check out the Dow right now... 9937 and falling....


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Half an hour later... 9894... anyone got a parachute? :(

Sooooooooo many people thought I was nuts when I said that the stock market was gonna plummet again... well, here we are, folks...


Springboard profile image

Springboard 6 years ago from Wisconsin

But still not at our lows, Hal. :)


tdarby profile image

tdarby 6 years ago

Love the Hub--saddened by the message. It seems we are tanking quickly now after decades of poor decisions. But it is nearly unbelievable how fast we not only doubled our debt but even tripled it (or possibly much more than that if you take into account all the unfunded mandates). Really bad choices on our current govt's part to believe they can spend their way out of crises. Hold on for the drop. . .


Mark Knowles profile image

Mark Knowles 6 years ago

It is even worse that you think Hal. Spain has already imploded and they have been keeping quiet about it. Official unemployment at 20%, 60 billion Euros quietly printed and used to buy Spanish bonds last year. You see that in the news? LOL No chance. Ireland has already collapsed, Portugal will be next, the Baltics are heavily indebted to the European banks and about to fall.

The only thing keeping the Euro value up against the dollar is the shitty value of the dollar.

Hard to say which will collapse first.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Springboard: The WORST is yet to come! :)

tdarby: Thanks. The drop is coming. Hold onto your hats!

Mark Knowles: Euroland is in really bad shape thanks to the PIIGS (I know... nonPC terminology). When the 400 million people in the EU start really feeling the pain it won't be long for the domino effect.


soumyasrajan 6 years ago from Mumbai India and often in USA

I live in Mumbai but spend a lot of time in USA visiting American universities. I consider USA as second home country for me. I agree with Springboard much more than you. Signs time being in USA do not show doomsday scene.

Even during the financial turmoil some months ago, USA fared much better than European countries, UK, China India, Russia, almost every country you count (at least the stock prices show that).

USA was the only country which accepted on the face that there is a crisis and it has been created because of some failure in their systems and regulations. Most other countries tried to sweep it under the carpet. Is that not a good strength for USA to count on?

Not only USA is surviving better, it is also helping quite a bit even now in these hard times, countries which are growing at a fast rate. While perhaps in India a lot of its growth is due to its internally generated demand (no wonder! they have internal demand -for fifty years rulers there did not care for average person's bread or butter, except for shouting slogans about them with foolish socialistic ideas), it has been helped by IT and Auto business and sentiments generated from USA.

China perhaps has some what similar situation as India. But its growth according to most experts is not generated that much due to internal demand as due to exports supported by currency manipulations. Is it not true that a lot of Chinese growth is also at expense of USA economy because Americans can not put their act together and use WTO rules and IMF to bring Chinese currency at right levels. Most experts believe it has been kept at least 40% less than its value with such manipulations.

Similarly in Af-Pak region war Americans have put their army to fight the foot soldiers of terrorist organizations but at the same time there is very little doubt that these terrorist organizations have been created and are being supported by corrupt army top bosses and feudal rulers in countries like Pakistan and some other Muslim countries. Obama administration has decided to finance these very rulers. Thus it looks like Americans are fighting from both sides in this war.

What I find funny is that some times Americans cry too much for nothing. Instead of trying to correct these self created wounds, which perhaps can be corrected with not too much efforts, it seems rulers, media press, blogger are mostly just crying "Oh! Chinese are going to rule, we are going down. A big doomsday is coming etc. "

Though I do agree that Obama administration, time being seems to be just enhancing this crying, instead of taking any proper steps. It seems to be bent on walking on crutches.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Sorry, but I have to respectfully disagree. Analysis of stock values for, say, the Dow vs. FTSE et al. do not bear out your claims. Where is the financial strength you see in the USA? The unemployment rate is through the roof, commercial real estate is wiped out, and millions of people are being thrown out of their homes. Today's Bloomberg has a great article on how China is be in the "biggest bubble in history", and the majority of other indicators are also agreeing with my standpoint.


soumyasrajan 6 years ago from Mumbai India and often in USA

Oh! I did not say USA does not face financial problems. What I said was that during the crisis USA stocks fared better than other countries for quite some time. I think during the crisis over all percentage by which stock indexes went down in USA was less than those in other countries I mentioned.

I also feel that manner in which USA saw the problem and accepted it openly, much earlier that others is a strength.

But I am not sure after that it took right steps to solve the problems created quite a bit by itself. For example it has still done very little about phony credit card schemes unleashed just before the crisis and which had threatened to create another bubble or tried to create a proper regulating mechanism for financial markets or as I mentioned Chinese currency manipulations.

I am not even sure it is not trying to correct seriously Chinese currency undervaluation because of Chinese pressures or its own commercial lobbies.

What I wanted to convey was that concern should not be that there will be serious problems in financial, economic or political conditions. There will be problems, the actions of past are leading towards them. But USA has enough strength to handle it.

My concern is more that USA is unable to put its act together to use this strength properly and get out of these economic or political quagmires it has created (two I mentioned in my comment). But the way current actions are being taken by administration in USA, it seems that they prefer to be getting deeper in to these quagmires, rather than getting out of them.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

Well, I can definitely agree with you that the direction that Mr. Obama is taking the nation is putting out the fire with gasoline. I do not share your belief in the strength of the American economic system, but I do have full belief in the strength of the American people and may God help them in their hour of need!


soumyasrajan 6 years ago from Mumbai India and often in USA

Oh! I agree with you completely. It is the strength of the people which makes me also confident.


Hal Licino profile image

Hal Licino 6 years ago from Toronto Author

There is no limit to what the American people can accomplish, but they do need help getting through this critical time!

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