True. But, we're early days still in the decline of the US Empire. We still have to get through three major upheavals: 1. The destruction of the USD's purchasing power. 2. The collapse of US military power as it runs on dollars and oil, both of which will no longer be as useful/accessible. 3. The collapse of our academic, authority, and policy making edifice.
Once the entire class of decision-makers who made policy the last 30 years have been discredited--everyone from economists to sociologists to congress--has been discredited, then I'll know it's over. Until then, I have to believe that no sustainable economic recovery is possible because all attempts to recreate one will be based on the post-war paradigm of houses, autos, consumption, neo-classical economics, and energy abundance.
But yes, conditions right now have not reached GreatDep levels, even though I assert we are indeed in a depression. An inflationary depression.
We would go down to G.D. levels pretty quickly without Gov stimulus, which itself is problematic as that too comes from paper creation and not GDP.
As my friend Nate Hagens points out, credit growth was an attempt to replace the lost net energy supply. So, since we are going back to that well again with the current Admin, I expect a replay of 2008's crash pretty soon. Only this time it won't be USD supportive. After all, the USD is largest long position on the planet.
I think if we had faced up to stuff in 1999/2000 we might have had a chance. Can't think of any public policy in the last 9 years since, though, that didn't seal our terrible fate.
That the Obama admin is functionally a continuation of the Bush Admin in all but tone, style, and certain minor preferences here and there is a testament to how truly farked we are.
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