Heading for a Fall!

The chairman of the Fed, Bernake says that if congress does not approve of the bail out they are discussing we are heading for a recession. $700 Billing dollars is what the media is saying it is going to cost. I personally think it will end up being more. I am predicting it will end up being more than a Trillion dollars.

Since the mid 90's I have often said and though to myself that we as a country was headed for a major economic fall. We have had some small ones during that time, but not like the one of 1929.

When you research our economic history there have been plenty of problems where people have lost lots of their personal money. When the stock market has crashed, when banks have gone out of business. However there has not been an economic crash of the same severity since 1929. We, I personally feel, are way over due for one and that is scary.

Our money is what is called "fiat" money. This means that it is not backed by gold. It's only backing is what the government says it is worth. Basically it is money made out of thin air. The government prints more when they need it. Which of course has made the dollar worth less in the global market.

Prior to Adolph Hitlers rise to chancellor of Germany in the 1930's, it was nothing for a person to use a wheel barrow to care down their German Marks they had to buy a loaf of bread because of how worthless it was. This was because the German Mark was not backed by Gold. It was "fiat" currency also.

So if Congress doesn't agree to a bail out we are going to go into a recession according to the Fed Chairman Bernake. As I stated at the beginning of this essay I think the bail out is going to have to be more than a Trillion dollars for it to work. However I really don't think it is going to work anyways, its just going to delay the inevitable. By the time it does hit, it will be a depression. Not a recession.