We're in a Depression now

Remember, a bare few weeks ago Bush was insisting we were not even in a recession. Now there is an explosion of articles questioning or declaring that we are not only in a Depression but that it will likely be worse than the first one. Also, the end times prophecies tell us that the times will be hard, and I'm talking HARD.

Worse than the Great Depression
Second Great Depression in Detroit
Was 2008 the beginning of another Great Depression?
The Subprime Crisis and the Great Depression – How Similar Are They?

So, it's time to alter usual behavior. Cut back. I suggest strongly that it is time to think about putting in a garden. I have been researching garden items for my area and herbs too. As soon as I catch up with my landlord I'll ask him if I can put one in. If not I'll do it at a friends' house who lives very close, who has already offered.

I am using the God-given sunshine here in this warm-weather state to dry my clothes. It's 70 degrees here today and the first sun we have had n a week and a half, not that I am complaining about the rain! No way. We're in a drought. But taking advantage of what is available and free is number one in a Depression. As Depression Cooking with Clara said in one of her early videos, "anything to save anything" She as talking about, when your food has reached a boil or to a certain point, turn off the stove and let it finish cooking in its own heat. Saves gas/electricity. Anything to save anything, remember! Caption: Laundry getting dry on a sunny day. notice the hay bales, lol.

I have stopped all unnecessary spending, and I have stopped all unnecessary driving.

I found this great list of 61 things to do with baking soda. I happened upon it because I like to keep my tub clean but don't like to use poisons. Not only for the environment but because my two kittens insist on playing in the tub and in drinking from the drain. I do not want them drinking poison. Baking soda and vinegar are great, natural cleaners and do many other things around a house. Finding inexpensive, readily available alternatives for poisonous cleaning agents is a good idea in any economy.

Uses for vinegar
61 uses for baking soda

So that is a beginning. Has your behavior changed to reflect the reality of the new economy? It has for many folks around here. An article in our local paper: "Economy has many Madison Countians reluctantly asking for government aid." How about you? What are you doing to save?

Sadly, pets are becoming a liability

In this economy...likely anyone with two eyes in their head an a wallet to keep filed could see this coming, but it is so sad. I have three cats myself, and it IS a lot of money to pay for food, litter, & vet bills. But when I took them I made a commitment to them as a living, breathing live thing, and I could never give them up for economic reasons. I guess we four are in this together!

More Pet Owners Seek Aid, Give Up Animals Due to Costs
National Geographic, August 6, 2008

In the fallout from rising fuel prices, job losses, and foreclosures in the United States, many people are facing hard choices about what to sacrifice to stay afloat.

For some, this means deciding whether to give up a member of the family.

More pet owners are struggling to pay for food and veterinary care, and some are being forced to abandon their animals when they move or relinquish them to shelters.

More than half of all U.S. households own a pet and, on average, the annual cost of ownership runs between $400 to $800 for food, supplies, and medical care, according to the American Society for the Prevention of Cruelty to Animals.

(visit link for full article)

Hmmm, whom to believe? Paulson or Paul?

The news from Paulson?

"US Treasury Secretary Henry Paulson said here on Thursday that the US economy would most likely be stronger at the end of 2008, even as oil prices surged to new records above 146 dollars.

"I think there is a very strong possibility that we will be growing at the end of the year. We will have stronger growth at the end of the year than we have right now," he said during a press conference after talks with his British counterpart Alistair Darling."

Or the news from US Congressman Dr. Ron Paul?

"I have, for the past 35 years, expressed my grave concern for the future of America. The course we have taken over the past century has threatened our liberties, security and prosperity. In spite of these long-held concerns, I have days—growing more frequent all the time—when I’m convinced the time is now upon us that some Big Events are about to occur. These fast-approaching events will not go unnoticed. They will affect all of us. They will not be limited to just some areas of our country. The world economy and political system will share in the chaos about to be unleashed."

"America, with her traditions of free markets and property rights, led the way toward great wealth and progress throughout the world as well as at home. Since we have lost our confidence in the principles of liberty, self reliance, hard work and frugality, and instead took on empire building, financed through inflation and debt, all this has changed. This is indeed frightening and an historic event. ... I’m fearful that my concerns have been legitimate and may even be worse than I first thought. They are now at our doorstep. Time is short for making a course correction before this grand experiment in liberty goes into deep hibernation."

Hmmm, recovery? Or hibernation? Which does it feel like to you?

we're bankrupt

They no longer have the money!

"The Fed has gone from being a balancing (liquidity) mechanism to being a funding (equity) mechanism, and what's worse, the collateral they are holding may not be worth the amount of loan they have outstanding."

"That is, the system as a whole is insolvent, in that it fails the essential test of having the amount of reserves in liquid assets as mandated by law."

"What's worse, since the H.3 report says that the amount of "required reserves" is $40 billion or so, and the non-borrowed reserves is more than double that amount the system is not only insolvent (that is, has non-borrowed equal to the required amount) but in fact is negative by double the amount required."

The above is from an article by Market Ticker, and he explains it really well. I'm no economist. And I am really bad at math. But even I know that a huge spike on a graph is a pretty bad thing and that you're not supposed to be borrowing way more money than you have ability to pay back. Hmmm. Another guy, Mr. Mortgage though excitable, is also clear and credible.

And yet...and yet...experts agree everything is fine...

Like this expert
And this one
And especially this one

Well, I don't know about you, but way spiky spikes on financial graphs don't seem so good to me.

Do you feel fine?

PS: click on the graph, it gets bigger