"We are in a depression."

[coalition_unwilling]

13. I'm certainly 'depressed' about my personal situation and I'm

'depressed' about many others' situations in this economy.

But the word 'depression' actually has a well-defined meaning. To wit, an economy must contract by at least 10% for it to qualify as a 'depression.' Since our GDP is growing, however anemically, it cannot be a 'depression,' at least as economists use the term.

Today's spike of 10,000 in initial unemployment claims and ADP's lackluster survey of new jobs added in the private sector combine to reaffirm my feeling that the economy, while neither in depression or even recession, is in a 'dead cat bounce.' That is, the aggregate demand curve is in the process of re-setting itself to the left as consumers demand less of everything. The good news in all this, I suppose, is that inflation will remain a non-threat for the near future (next 12 months). There will simply be no demand pressure putting pressure on prices.