While economists have made no secret of their fears that another recession is about to strike, the real danger could be worse.

Instead, the country could be headed for a 21st century version of a depression, an economic term that, unlike a recession, defies a standard definition but instead conjures images of soup lines, 25 percent unemployment and a devastated economy.

A drastic view? Perhaps. But with the US economy facing growth well below expectations two years after a recession, and an increasingly ominous European debt crisis, the superlatives being used to describe conditions are gaining in intensity.

"Here we are today, with a severe recession (2007-09) followed by the weakest recovery on record and now on the precipice of another economic downturn," David Rosenberg, senior economist and strategist at Gluskin Sheff in Toronto wrote in a special analysis. "This is a modern-day depression, not entirely dissimilar to Japan's post-bubble experience of the past two decades."

Rosenberg takes issue with the standard issue of a recession being two consecutive quarters of negative growth, and rather says it measures peaks in sales activity, jobs, industrial production and income growth.

The US already has had something of a lost decade, Rosenberg reasons, citing stock values still around 1998 levels and little net job growth.

This is occurring even despite unprecedented policy measures including a massive monetary easing campaign from the Federal Reserve and about $800 billion in government stimulus.

"Simply put, an economic depression occurs only once it becomes painfully obvious that the markets and the economy are failing to respond to repeated bouts of policy stimulus," Rosenberg said.



While Rosenberg is certainly out of the consensus in discussing a depression, he is not alone.

Harvard professor and economist Niall Ferguson recently projected a "mild depression" (if there can be such a thing) as have other economists including the noted "Dr. Doom" Nouriel Roubini and HSBC's Stephen King. The latter two, though, have raised risks of a depression and have not stated, like Rosenberg, that one is actually under way.

http://ca.finance.yahoo.com/news/Is-US- ... 76581.html

So we go from Recession Level One, to Recession Level Two to RL Three, etc., etc., but until the time is right for them, they won't call a spade a spade. Obviously the definition of a Recession and a Depression have gotten lost in the translation.

We are in a depression now, but by defining it as "another recession" doesn't make it any better. The Great Depression didn't happen overnight, but the signs of back then are what we are living through right now. Bubblevision, and it's ilk, is what keeps people from realizing that...but when people finally do realize it, it'll be too late for them.

Brings to mind Humpty Dumpty sat on a wall...and we all know how that ends.

And, really, all we can do is to prepare. Prepare to make your own foods. Prepare to make your own clothes. Prepare...

God help us.