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What is an Economic Depression?

Economic depression means severe and prolonged recession characterized by inefficient economic productivity, high unemployment and falling price levels. In times of depression, consumers' confidence and investments decrease, causing the economy to shut down. The classic example of this occurred in the 1930s, when the Great Depression shook the global economy. We live in a world of euphemism. Undertakers have become "morticians," press agents are now "public relations counselors" and janitors have all been transformed into "superintendents." In every walk of life, plain facts have been wrapped in cloudy camouflage. No less has this been true of economics. In the old days, we used to suffer nearly periodic economic crises, the sudden onset of which was called a "panic," and the lingering trough period after the panic was called "depression."

What is World Economic Depression?

In economics, a period of economic crisis in commerce, finance, and industry, characterized by falling prices, restriction of credit, low output and investment, numerous bankruptcies, and a high level of unemployment is called economic depression. When it occurs worldwide with a long term effect, it is called World Economic Depression. A less severe crisis is usually known as a recession, a more common occurrence generally thought to be a normal part of the business cycle; it is technically defined as two consecutive quarterly declines in the gross national product. The current depression is a wake-up call: we must recognize that vulture capitalism is totally out of control and destroying workers worldwide. Once people in all countries awaken to this intolerable economic devastation, we can begin to take back our nations and institute commonwealth communities for the good of all humankind.

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The current world depression is more visible than usual because we're seeing not only the annihilation of workers--the usual victims of vulture capitalism--but also elements within the capitalist system itself being devastated: banks, businesses, and financial institutions. Unusual features of predatory capitalism, but by the hyperbolic overindulgence in criminal behavior and the debauchery of maniacal greed which are the very essence of this looting malignancy. Both depraved indifference and corruption are distinguishing characteristics of crony capitalism--as is evidenced by the presence of these activities from the beginning of its history.

Identical Elements of the 1929 and Current Depressions

1929 Depression Liquidity expansion: In the "roaring twenties" the value of shares in the New York Stock Exchange, the biggest in the world, had increased five fold Stock market crash: 1932: stocks had lost 89% of their 1929 peak value 1929 share value was not reached again until 1954 Bank failures: President Hoover refused to assist failing banks All banks failed in 1932 Current Depression Liquidity expansion: The FED has continued to pump currency into the stock market and investment funds resulting in the dot.com, stocks, and housing bubbles bursting Stock market crash: A series of crashes beginning in the 1980s

Bank failures: Banks are failing worldwide but most failures are being covered up by central bank loans Banks are having to "write off"

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tens of billions of bad investments and are now going hat-in-hand to foreign investors to sell a piece of their business GDP: Down 50% in 1932 Unemployment: 13 million workers became unemployed with no relief to speak of; a third of the population sank into abject poverty Fake investment (gambling) funds: Brokers' loans, buying on margin: investors could pay down only a percentage of what they were investing GDP:: 20% decline in the GDP and a 50% decline in the value of the dollar Unemployment: Unemployment figures are falsified; at least 25% of American workers are unemployed or underemployed A third of the population lives in poverty Fake investment (gambling) funds: Hedge funds: The estimated assets of these funds have risen from $491 billion in 2000 to $1.75 trillion in 2007. The funds' complicated financial transactions, mostly secret and unregulated, use debt as a tradable security in the search for short term gain

The 1930s depression appeared to be the result of the 1929 Wall Street Crash, but 1929 only made apparent a systemic defect, capitalism's chronic overproduction in its decadent phase. This same phase of chronic overproduction began again as early as 1968, finally resulting in the present depression.

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Home Foreclosures: In 1932, over 250,000 families lost their homes; in early 1933, foreclosures were taking place at a rate of more than a thousand a day. Home Foreclosures: About 1.3 million U.S. homes received foreclosure-related warnings in 2007. Through real estate shell games, the super-rich have looted at least $10-$15 trillion from workers.