In a Government report filed last Thursday a record number of workers filed for Unemployment. The number reaching 516,000 people is expected to drop this week however overall it is the highest since 2001.

The Fed in a move that can only be considered insanity is expected to lower rates below the current 1% on Dec. 16 by one-quarter or one-half percentage point. This in the face of indicators showing deflation and nonexistent buying patterns by most Americans.

As the price of oil has now droped almost $100 from its one year high of $140 a barrel and is now nearing $50 a barrel many economists are warning of a depression occuring as new jobs are nonexistant and spending is stagnant. 

America’s last serious case of deflation occurred in the 1930s during the Great Depression. November’s end of month retail figures should be an indicator of how long we can expect the economy to plummet. If spending is lower then expected higher then expected layoffs will occur.