Depression

David Stockman Alienates Both Ends of The Political Spectrum

David Stockman wrote an intriguing article which appeared in the NY Times. That it appeared in the Times is noteworthy itself, for it contradicts so many liberal shibboleths the paper has supported (promoted) for many years. Its appearance is less likely to reflect the first steps to Damascus and may be a sign of financial desperation where the need for [...]

The Non-Recovery In Advance of A Depression

For anyone who believes that there has been an economic recovery, go buy the Brooklyn Bridge. I’m sure there are thousands who would be willing to sell it to you. There will be no recovery until the economy crashes and rebuilds from the ashes. There is too much debt outstanding can never be repaid and will not be serviced. Governments [...]

The Keynesian Legacy Unravels

“Those who cannot remember the past, are condemned to repeat it.” George Santayana Ideology is powerful, capable of masking unpleasant facts. Whether we recognize it or not, we are all slaves to ideology. Economists are no different in that regard than other people. They hold preconceived ideas which affect the interpretation of data and facts. In the extreme, ideology is [...]

Let’s Have A Depression Now

The United States is more than four years into its form of economic purgatory. The government pronounced the recession over in June of 2009. That announcement does not conform with reality or even subsequent government suspect data. Even the Administration-friendly New York Times knows better: Between June 2009, when the recession officially ended, and June 2011, inflation-adjusted median household income fell [...]

Polite Pessimism Is Not Warranted

The condition of the US (and world) economy is precarious. Alasdair Sinclair says that money printing is the only thing holding the economy up: We are in the eye of a financial storm, for which the only solution – other than mass default – is an accelerating supply of money. Deteriorating financial conditions ineither government, banks, private sector or securities markets are almost certain to trigger a run on the others. And that is why a far larger figure than QE3’s $85bn permonth may be required to keep the system afloat. Mr. Sinclair is correct. I recommend you read his piece in full. While Mr. Sinclair points out [...]

Why This Depression Will Be Known As The Greatest Depression

Probably the last thing regular readers of this website need is additional evidence supporting the coming governmental and economic collapse. I apologize for yet another article on this topic, but newer readers need to understand what is coming and do what they can to protect themselves. Government default is inevitable and with it another Depression. The Depression will be more [...]

Listen To The Experts From Our Past And Compare Them To Democrat Promises

Another legacy post, just in time for the Democrat convention. You will hear a lot of comments about “how we have turned the corner,” etc. Obviously those expressing such sentiments have incentives for saying so, whether they truly believe it or not. In that context, I thought it would be useful to review real so-called experts and their predictions during [...]

The Recession Never Ended And Will Not Until A Depression Occurs

Our country is getting poorer. Part of the decline is due to the economic recession; part of it is due to the secular decline that has been addressed in several articles on this website (here is a recent one). Sentier Research recently released a report detailing what has happened to median incomes in this country: After adjusting for changes in consumer [...]

Common Sense Video — The Quiet Depression, So Far

This conversation between Gordon T. Long and John Rubino is an important listen. It deals with our declining standard of living which is expected to get worse. We are early into this economic decline and, as the old saying goes, “you ain’t seen nothing yet!” Thank the political class (and their political economist lackeys) for this situation — not just [...]

Quote of The Day

Doug Casey commenting on the past and the future: What we experienced in the 1930s was a deflationary depression where billions of dollars were wiped out with a stock market collapse, bond defaults, and bank failures. Inflationary money that was created since the formation of the Federal Reserve in 1913 was wiped out. Prices went down. This depression will be [...]

The Deflation-Inflation Alternate Routes to Depression

The coming economic collapse (Depression) is inevitable but the route taken to this ending is uncertain. The road has parallel routes: Deflationary Collapse Hyperinflationary Collapse Which route is taken depends upon government. In our highly regulated and manipulated economy, economics is important but generally takes a back seat to political considerations. As Axel Merk stated (with my emboldening): Ultimately, we [...]

Gold Rising or Gold To Fall?

Is this the time to acquire gold? Or is this the time to run away from it? Either answer could be correct, depending upon what course government chooses. Government is at a decision point, one that will determine how our economic malaise next turns. It has two choices: Fight deflation by increasing the money supply by whatever amount necessary. Stop [...]