The Big Lie is that Obama knows this and yet deliberately uses phony numbers and rhetoric to pass a bill that may itself cause a depression.
Change we can believe in?
Actually - This is 100x worse then 1929-1932 , the period in which Herbert Hoover pumped 100 Billion dollars of Gold Convertable Currency into the system when the FED only had 4 Billion in their reserves. This was the situation as of 1933 when FDR took office:"My investigation convinced me that during the last quarter of a century the average production of gold has been falling off considerably. The gold mines of the world are practically exhausted. There is only about $11,000,000,000 in gold in the world, with the United States owning a little more than four billions. We have more than $100,000,000,000 in debts payable in gold of the present weight and fineness. . . As a practical proposition these contracts cannot be collected in gold for the obvious reason that the gold supply of the entire world is not sufficient to make payment."
-- Congressional Record, Congressman Dies, March 15, 1933.
That is precisely what led to FDR immediately putting the FED into bankruptcy, hence de-coupling the dollar from the Gold Standard, the idiocy of Hoover and prior to him, Cooldige who made that mess. This also led to FDR passing the Glass/Steagall act which prohibited Commercial Banks from engaging in Speculation - hence depriving them of the ability to continue the the madness that was going on. The Result of the Glass Steagall act Split JP Morgan's bank into JP Morgan and Morgan Stanley.
NOW: we have a far worse situation, due to three factors
1. We are in a Globalized Economy
2. We have a 1.5 Quadrillion Dollar Bubble of Derivatives that interlink all major Commercial and Investment Banks.
3 Clinton Repealed the Glass/Steagall act under the Republican Congress in 1999-2000 after beeing lobbied by Greenspan and Larry Summers, thus opening the gates to Derivative speculation in Commercial Banks, which in reality , Commercial Banks have no right to do.
So, the comparison between the situations is there, however Obama is handling the situation as Hoover did, Re-Capitalizing Banks and offering a measly few billion dollars into actual Infrastructure. We know what the result of this is going to be, a complete disintigration of the entire economic system.
This system will indeed have to be replaced and that is when the situation will become dire. Obama will have about 3 choices...
1. (The Rational Thing to do ) Put the FED and Entire Financial System into Bankruptcy and Freeze all Derivatives.
2. Nationalize the entire Commercial Banking system and make the populations pay off these tremendous debts for generations to come
3. Usher in a Global Bank and destroy the Nation State System.
In addition to option #1 i would also recommend Freezing all Home Foreclosures for a certain period of time , after bankruptcy is acheived, and negotiating a rent payment to all banks based on the homes new deflated value to re-capitalize the banks and allow them to continue their functions without kicking half of our population out of their homes and into the streets.
The Hoover do nothing option of pumping money into banks and praying the private sector will fix this is pure insanity, this is not going to fix itself i am very sorry to say.