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The recession will become worse, possibly a Japanese style recession.

The current economic recession that is already underway in the USA is going to become worse. While it may not become a Depression, it will at the very least become a major, long-term recession like the kind the Japanese experianced. That recession lasted over ten years. This recession will not be a short one. The economy will continue to shrink for at least the next two years due to at least one million or more homes being dumped on the US market within the next year. It will stagnate for at least two more. And it will take at least four more years to begin, to start to improve.

What is happening now will lead to a chain-reaction of greatly reduced confidence in the economy by Joe Q. public. Reduced spending from all sectors, the public, government and business. Greatly reduced hiring by business as well as diminished growth forecasts by the business sector. This will lead to even more fear, even more reduced spending and an almost stagnate job market.

All the while you will continue to hear politicians, many in big business as well as some in the media continue to play this recession down. They do this since if the public loses more confidence than they already have, purse strings get tightened. Spending slows. This is also an election year.

The Republicans won´t speak of the economy except in a good light and because any downturn in the economy will be seen as mostly the current president´s fault. Democrats won´t speak of a bad economy except to get votes. When they get in, they will realize that short of retooling the economy towards an energy-independent, greener and more high-tech economy. They won´t be able to stop the recession from getting progressively worse either. But, it is an election year, do not waist your time waiting for the truth from your leaders, it won´t happen. If it hasn´t happened in good times, why would you expect it now? In an election year? If the truth comes from a politician, especially from one of the presidential candidates, I will be happy, over-joyed, but I won´t wait for it.

The government will not be able to intervene as most folks thought because The federal, state and local governments will be bringing in less money from local, state and federal taxes due to people spending less, making less money and property values continuing to plummet.

The final sign to know that what I am predicting is about to pass is that governments, all of them in the USA, federal, state and local governments will begin to reduce government payrolls (job losses in all levels of government) due to the reduced amount of money they will be bringing in.

You will then see a economic stagnation of at least two to four more years. WIth the government of the USA trying to create infrastructure improvement projects within the country so as to employ more of the growing unemployed and they may possibly start another long, expensive war during these bad times. The latter is something that has been employed by many a government, including the USA in bad times since you cannot have a revolt if you send those most likely to revolt off to war.

This prediction will not come true if governments do the following: invest in new technologies, greener technologies and greatly reduce the bloated military budget which is not protecting American sovereignty at our borders but defending Saudi Royalty, oil wells and other ¨strategic interests¨. Doing the above may not stop the recession but it will greatly reduce it´s damaging impact.

I hope none of this happens. I really don´t I would love to be wrong on this one.