I continue to believe, based upon my overall analysis, that our economic situation is vastly misunderstood. I have held this view for a number of years, and have written about such since late-2008. The future adverse consequences of this misunderstanding can not be overstated. It is for this reason I write about our economic condition, with a focus towards America’s economic future. To say there is much “on the line” here, with regard to our current and future economic situation, would be a complete understatement.
The topic of our current economic condition and its likely future outcome is the most important topic of our time. While most economic and investment professionals believe that we are experiencing an economic recovery, I believe this assessment is incorrect.
My analysis indicates that the current economic strength (dating back to roughly mid-2009) represents the type of intermittent economic strength that is often seen during periods of prolonged economic weakness. In other words, although it may seem as if the economy is experiencing a sustainable recovery, in fact we are in a Depression.
Assuming this is indeed a Depression, the implications are immense. We will experience further significant economic weakness. This weakness will be severe in nature. At some point unmitigated weakness will almost certainly pose the greatest challenge this nation has ever encountered.
What separates this period of economic weakness from those that have preceded it is its complexity. Absent a rather profound and rapid change in the effectiveness of our economic policies, we should not expect our economic predicament to improve in a sustainable manner.
This blog focuses on the American economic situation. However, much of the economic situation worldwide is in many ways similar to that of the American situation.
While all of my writings found on this site deal with our economic situation, I feel that those under the “Depression” category deserve particular attention.
Written 8-16-10 as the SPX is at 1079.38
Minor Editing on 8-18-10
A Change in wording (per the October 1, 2013 post titled "Change Made To 'A Special Note...' Page") on October 1, 2013