Ethek
Member
- Joined
- Nov 9, 2007
- Messages
- 2,524
http://digg.com/business_finance/Great_Myths_of_the_Great_Depression_3
http://www.mackinac.org/article.aspx?ID=4013
Really interesting read. My take is the economy is about where it was in 1928. The US had 12 more years of a depression. The only difference between now and then is that the bubble of artificial wealth from the 'roaring twenties' and today clearly seems to be much much larger this time. And instead of contracting the money supply like in 1928 the Federal Reserve seems determined to devalue the dollar by flooding the system with money thats not backed by anything.. no assets, no trust. nothing. Most here are interpreting that as as a way to carry out policies that were not carried far enough in 1927-28 and as a side benefit monetize the astronomical debt that the US government has, debt that was not there in 1928.
The only trend to explain what the Fed is trying to do now is that all paper money systems ultimately fail right?
Personally I made my first purchase of gold today. Hyperinflation seems inescapable to me.. I'm just curious how long the Fed can keep things in hibernation mode by cutting interest rates and giving the Treasury a debt holiday.. perhaps issue some bonds? Will they have to keep that up for 5,7 10 years?
http://www.mackinac.org/article.aspx?ID=4013
Really interesting read. My take is the economy is about where it was in 1928. The US had 12 more years of a depression. The only difference between now and then is that the bubble of artificial wealth from the 'roaring twenties' and today clearly seems to be much much larger this time. And instead of contracting the money supply like in 1928 the Federal Reserve seems determined to devalue the dollar by flooding the system with money thats not backed by anything.. no assets, no trust. nothing. Most here are interpreting that as as a way to carry out policies that were not carried far enough in 1927-28 and as a side benefit monetize the astronomical debt that the US government has, debt that was not there in 1928.
The only trend to explain what the Fed is trying to do now is that all paper money systems ultimately fail right?
Personally I made my first purchase of gold today. Hyperinflation seems inescapable to me.. I'm just curious how long the Fed can keep things in hibernation mode by cutting interest rates and giving the Treasury a debt holiday.. perhaps issue some bonds? Will they have to keep that up for 5,7 10 years?
