With massive stimulation by the federal government, include big deficit spending and increases in the money supply via quantitative easing, the economy may partially rebound and unemployment may begin to ease temporarily, said Wiedemer. But longer-term, the basic problems that are hurting the economy and killing jobs will not go away and unemployment will rise even higher than the current 10 percent.

“We’ve been relying on a somewhat artificial prosperity based on a multi-bubble economy,” said Robert Wiedemer, president and CEO of the Foresight Group. “As the bubbles continue to fall, massive stimulus spending will only kick these problems down the road, and in fact, make our later problems that much worse.” The government’s quantitative easing has effectively doubled the US money supply in less than a year, creating growing pressures for future inflation, while the total federal debt is now about $12 trillion, more than six times the government’s income in tax revenues. “At some point, we not going to be able to borrow anyone more and the party will be over.”

Any insights/opinions from anyone?