Another Great Depression Has Begun

The best professional poker players in the world earn millions by reading and reacting to “tells," their opponents’ verbal and nonverbal traits. They notice the way an opponent is smiling, frowning, laughing, tapping their hands, sweating, or blinking their eyes. All these “tells” can be a sign of their opponent's cards. The ability to read "tells" is the difference between living the life of your dreams versus bankruptcy and depression.

The same holds true in deciphering our economic troubles. If you’ve been paying attention to the news, several ominous signs have appeared that foretell economic disaster.

The first sign is the fact Bill Gross, head of the world’s largest bond fund (PIMCO), has just sold all his domestic government bond holdings. Every single dollar.

In my opinion Bill Gross is one of the 10 smartest men on this planet. He knows everything about the economy and bonds. His sell-off indicates he believes local, state and our federal government are all on the verge of disaster — insolvency, bankruptcy, and default on bond obligations.

To make matters worse, Gross disclosed he bought emerging market bonds with the money from the sale of U.S. bonds. That means Gross has more faith in Brazil, Russia, and African nations than in the Unites States.

The next “tell” of economic disaster is even more ominous. Wall Street insiders are startled at how much money the Fed is pumping into the financial system. With over $500 billion pumped in during just the past three months, the vertical line for 2011 now reaches straight to the stars — a sign of complete financial panic.

The last time such large amounts of money were pumped into the system was in the fall of 2008, when the U.S. economic system was on the verge of epic collapse.

The next “tell” is that secretive Fed officials normally do not talk publicly about how bad things are. That’s why it is so frightening that, only days ago, Dallas Federal Reserve President Richard Fisher admitted in a media interview “the U.S. is on a fiscal path towards insolvency.” When a Fed official talks about “fiscal insolvency,” it’s time to get concerned, very concerned.

The next “tell” is a recent housing study proving the housing market is actually worse off now than in the depths of the Great Depression. From 1929 to 1932 new home sales in the United States declined 80 percent. From 2005 to today, new home sales have plunged 82 percent. Even more frightening, the plunge seems to be accelerating.

Other disastrous “tells” that financial Armageddon is upon us are new reports that the consumer confidence index just suffered the 5th largest drop in history, and inflation at the producer level just spiked up in the largest one-month rise since the dreaded inflation and economic malaise of the 1970s.

The final “tell” is moronic leftist moviemaker Michael Moore recently stating that America is not broke. He thinks we have plenty of money to keep spending on entitlements, more stimulus, and obscene pensions for millions of government employees.

Moore is the guy who thinks Cuba’s medical system is better than ours. He obviously thinks the answer to unsustainable debt and spending addiction is . . . more spending.

Moore is a symbol of the delusional thinking of Obama and his entire socialist cabal, which has wrecked the U.S. economy, spent us into insolvency, encouraged our entitlement addiction, and left us at the brink of economic Armageddon.

I believe these “tells” are sure signs that the Great Obama Depression has arrived. How we respond will determine if America survives, or we face the same fate as other great empires (Greek, Roman, British) that self-destructed based on mountains of debt, entitlements, welfare, corruption, too many citizens working for or dependent on government, and great armies spread throughout the globe fighting expensive wars.

I say to my fellow patriots and freedom fighters — libertarians, conservatives and tea partyers — let’s lead the charge for change. The lives and freedom of our children and grandchildren depend on winning this battle. And we shall.

Wayne Allyn Root is a former libertarian vice presidential nominee. He now serves as chairman of the Libertarian National Congressional Committee. He is the best-selling author of "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts." His website: ROOTforAmerica.com