US Depression leads to a long drawn worldwide depression – Factory orders and Unemployment claims drag Dow down
Nila Zame
Oct. 2, 2008

Many $700 billion bail out packets have come and gone. The politicians thought and are still thinking that they can bribe their way out of this mess. It is much more serious. The virtual credit bubble is larger than the universe. It took 100 years to build it up. It will be thirty to forty years to unwind the same. The more $700 billion bailout packages are pumped into the cancer prone economy, more sever will be the pain and more longer it will take the economy to recover.

America has lost faith in its politicians. It is a main street uprising that is challenging the politicians on the Right and the Left. Just like Soviet Union in seventies and early eighties, America has damaged itself beyond repair through strategic political and fiscal mistakes.

The stock market, the unemployment data, the capacity utilization, and the Factory Orders are all pointing now to deep depression. The American politicians have been hiding the depression with the cushion of printing limitless US Dollar that is not backed by Gold bullion. The net effect is devastating.

New applications for unemployment benefits rose slightly last week to a seven-year high due to a weakening economy and the impact of Hurricanes Ike and Gustav, the Labor Department said Thursday. The department reported that initial claims for jobless benefits increased by 1,000 to a seasonally adjusted 497,000, the highest since just after the Sept. 11 terrorist attacks seven years ago.

Meanwhile, the Commerce Department said Thursday that factory orders in August plunged by 4 percent compared to July, a much steeper decline than the 2.5 percent drop analysts expected and the biggest setback since a 4.8 percent plunge in October 2006.

The weakness was led by big declines in orders for aircraft, down 38.1 percent, and autos, which fell by 10.6 percent, the worst performance in nearly six years.

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