EconomicCrisis.US

Right now, we are in the middle of deflation. The Global Depression we are experiencing has squeezed both aggregate demand levels and aggregate asset prices as never before. Since the credit crunch of September 2008, the U.S. and world economies have been slowly circling the deflationary drain.

To counter this, the U.S. government has been running massive deficits, as it seeks to prop up aggregate demand levels by way of fiscal “stimulus” spending—the classic Keynesian move, the same old prescription since donkey’s ears.
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Is America Moving Closer to Total Economic Collapse?

If someone had said twenty or thirty years ago that the American financial system would collapse in 2008, few would have believed it. But it did indeed happen. Two years later, the United States is still in serious economic trouble.
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There are three main views of the financial crisis and the most recent recession. In the first two views, the debate over the fiscal deficit is quite separate from what happened in the crisis. But in the third view, the financial crisis and likelihood of fiscal austerity are closely linked.

The first is that something went wrong with the financial plumbing central to the world’s economy. Failed plumbing is a serious business, of course — great real estate can be ruined by a burst pipe. But it’s a technical issue; nothing deeper is at stake.
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So, the financial services industry says it wants to “earn back the trust of the American people.”

That must mean it’s loosening up loans to small businesses and investing money in communities hard hit by the nation’s jobs crisis, right?

Actually not. According to the Financial Services Roundtable, which represents the 150 largest banks and insurance companies, “earning back the trust of the American people” means spending millions of dollars on a public relations campaign to make Big Banks look warm and fuzzy.
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