Social Mood During Economic Depression

Two very important questions come to mind when thinking about the current economic contraction and how it affects you:

1. Who should we believe and turn to for more accurate information and analysis about the current state of our economy?

2. Who should we believe and turn to for solutions that will work in getting us out of the current economic deflationary spiral?

Important questions indeed because it is baffling that the same leaders (Greenspan, Bush, Obama, Bernanke, Geithner...) and institutions (The Federal Reserve, Goldman Sachs, JP Morgan, General Motors...) that told us that there was nothing to worry about are the same leaders and institutions who are saying the recession has ended. I don't know about you, but we think they have been lying to us and been wrong all along.

We only have to take a look at the effects of the current deflationary spiral to realize that as the economy continues to deteriorate the social mood of the country continues to change, from optimism to pessimism, which in turn reflects a continued economic contraction. It's simple, during times when social mood is positive or optimistic people will buy and during times when social mood is negative or pessimistic people will not buy.

However, it is not just spending habits that change.

A social mood change is also reflected in other areas of our lives:

- Individuals and social groups (including economic, political, religious, genders and classes) are polarizing and splintering, both internally and with respect to opposing groups, by becoming increasingly more militant and intentionally more destructive.

- And relationships at all degrees are becoming more strained and violent while suspicion and hatred, which is increasing, is the new attitude.

Here are a couple of real life examples:

1. The process of political pandering, which rewards the politicians and the institutions that should have failed, at taxpayer expense, is outrageous. Instead of leaders working together with the people that elected them to develop solutions that will get us out of this mess what we have are polarized, splintered approaches where radical solutions such as the U.S. Government paying mortgage servicers billions while homeowners suffer are just not right.

2. In Detroit, the social mood change was made manifest when tens of thousands of people sought assistance of up to $3,000, as part of a $15.2-million federal allocation program. 'After the applications ran out, some scam artists were selling photocopies of the originals for $20 each. They were doing a brisk business, even though the white original forms state clearly on the bottom: 'Do not duplicate -- Must Submit Original Application.' Volunteers from the city of Detroit Planning and Development Department eventually handed out yellow photocopies themselves.' As Detroit's mayoral spokes person Karen Dumas observed 'We saw a microcosm of the challenges that people are facing around the country.'

So who should we believe and turn to for more accurate information and analysis about the current state of our economy?

Well, do not believe or turn to the politicians nor the main stream media outlets.

Who should we believe and turn to for solutions that will work in getting us out of the current economic deflationary spiral?

Again, do not believe or turn to politicians for the right solutions.

Posted via web from deflationtimes's posterous