This is truly terrifying: lessons from the Great Depression

[Gaius1981]

This is truly terrifying: lessons from the Great Depression
Source: Daniel Hannan's blog

Here is a graph of the US stock exchange today, superimposed on what happened at the beginning of the Great Depression:

Now look at what happened next:

And shall I show you the scariest bit? The world is in a worse position now than then:

 

[hugolp]

Now we the dollar is not on a gold standard. We will probably get something like the 70's, just worse.

 

[stag15]

Now we the dollar is not on a gold standard. We will probably get something like the 70's, just worse.

I really think we will see a dow:gold ratio near 1. With the Dow at 10,000, I would think that both the stock market and dollar will have to fall in unison. That probably means the market falls to 3,000-5,000 and the dollar to around 30-40, with gold jumping to 2,000-4,000. Of course, this is going to take 3-5 years to pan out. But this is all opinion.

 

[Deborah K]

Wow! I'm freakin a little. Reality is setting in....