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Chief Economist: It’s A Depression

Posted By admin On January 12, 2009 @ 11:56 am In Featured Stories,Paul Watson Articles | Comments Disabled

Morici one of first senior analysts to admit U.S. faces 1930′s style collapse

Chief Economist: Its A Depression 120109top

Paul Joseph Watson
Prison Planet.com [1]
Monday, January 12, 2009

Professor Peter Morici, a former chief economist at the U.S. International Trade Commission, has become one of the first senior economists to admit that the U.S. is facing a 1930′s style depression.

Noting that 2.6 million payroll jobs have been lost since December 2007, Morici told financial publication Kiplinger [2]that a 5 per cent contraction in the fourth quarter made the crisis “worse than a recession”.

“The economy will not recover without fundamental changes in banking and trade policy,” said Morici, an economics professor at Maryland University, “A large stimulus package, though necessary, will only give the economy a temporary lift,” he added. “The economy is in a depression, not a recession.”

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A trickle of prominent analysts are now saying what people like Alex Jones and Peter Schiff were being called doomsayers for predicting over a year ago, that the U.S. faces a crisis on the scale of the 1930′s if not worse.

Morici’s summation dovetails the analysis of renowned financial publication The Economist, which reported earlier this month that [3], based on the characteristics of the current financial crisis, the U.S. is in a depression, not a recession.

On December 23rd, the IMF’s top economist, Olivier Blanchard, warned [4] that falling confidence could turn a recession into a depression if market sentiment continued to dwindle.


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URLs in this post:

[1] Prison Planet.com: http://prisonplanet.com

[2] Morici told financial publication Kiplinger : http://www.upi.com/Business_News/2009/01/11/Expert_calling_it_a_US_depression/UPI-11211231704692/

[3] which reported earlier this month that: http://www.prisonplanet.com/the-economist-us-in-depression-not-recession.html

[4] Olivier Blanchard, warned: http://www.prisonplanet.com/imf-warns-of-great-depression.html

[5] Merrill Lynch’s Chief Economist: We’re Already In a Depression: http://www.prisonplanet.com/merrill-lynchs-chief-economist-were-already-in-a-depression.html

[6] Another Prominent Economist Forecasts Depression, Says Gold To Hit $2000: http://www.prisonplanet.com/another-prominent-economist-forecasts-depression-says-gold-to-hit-2000.html

[7] More Economists Say Crisis Is Worse Than Great Depression: http://www.prisonplanet.com/more-economists-say-crisis-is-worse-than-great-depression.html

[8] “The Prevailing Debate Among Economists and Historians is Whether the World Economy Faces the ‘Great’ Depression of the 1930s or the ‘Long’ Depression of the 1870s”: http://www.prisonplanet.com/%e2%80%9cthe-prevailing-debate-among-economists-and-historians-is-whether-the-world-economy-faces-the-%e2%80%98great%e2%80%99-depression-of-the-1930s-or-the-%e2%80%98long%e2%80%99-depression-of-the-18.html

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