Mark your calendar! 11/07/07 - Today is D-Day, the date the history books will record the start-date of the new Depression. Ironic - those "lucky numbers". It's not hyperbole, and here's why (never mind the 400 point Dow drop, that's happened before):

The Chinese had begun a sell-off of their US securities. They have dollars held by their government and, separately by their treasury (like the Fed).

Today, that entity has made clear that they will be unloading some $400 billion, which they already began in August (according to the China Daily, they sold off $9 billion - without buying any new debt in that month alone) in an attempt to divest of American Government securities. (They still hold over a trillion dollars of, well, other dollars â€“ stock, corporate paper, etc)

The Japanese, not to be outdone, sold off some $24 billion in US treasuries in August.

Today, GM posted a loss of $40 billion in the 3rd quarter, because they had so much anticipated income from anticipated tax credits that they had opted to show as possible income FOR THREE YEARS in order to minimize the appearances of real losses, that they now had to suck it up and stick it all on the balance sheet for this one quarter, even though, at selling cars, they made a profit in that quarter! Can you wrap your mind around LOSING 40 BILLION DOLLARS IN 3 MONTHS? There are many nations that don't have that number for a GDP, annually. This is America's great manufacturing giant. And, as they used to say, what's good for GM is Good for America.

So, America, let's just all write-down our losses in the third quarter and move on, shall we?

Today, Washington Mutual (the one hitherto considered clean), got nabbed on CRIMINAL charges by Andrew Cuomo, Attorney General of NY for their mortgages (specifically for defrauding Freddie Mac and Fannie Mae with bundled mortgages).

Today, the Europeans (as I pointed out in my January 07 letter, not published on SC - everyone else thought they were safe) are suffering too. BMW and LVMH both took large hits on their stock values, as they realize that all that entry-level luxe crap - that foolish Americans were mortgaging the floorboards to buy - will no longer sell (3-series BMWs are where the money is, but that market just slammed shut, similarly Louis Vuitton, which has opened dozens of mall stores to sell items that used to be exclusive, may as well close those doors, because the market will revert to the rarified air it used to breathe, and all those middle class gals who've been buying $1200 purses will do so no more, because you can't mortgage a house after it's been foreclosed.

Today, like when banks began to fail in 1932, we know who's in charge, and how his policies got us here. We'll survive until we have a new president, and we will begin again. And the good news is that from here out, we will be in a rebuilding phase. The dinosaurs have failed themselves and us, but we will build a new and better economy. I'll tell you all about it...

Michael Fox is a writer based in Los Angeles.

You can now find step one at:After D-Day: Your Guide to the New Depression

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About author Michael Fox is a freelance journalist and the former editor of the NACLA Report on the Americas. He is the coauthor of the books Michael Fox is a freelance journalist and the former editor of the NACLA Report on the Americas. He is the coauthor of the books Venezuela Speaks and Latin America’s Turbulent Transitions . He tweets at @mfox_us