Great Depression

Tyler Durden's picture

Are We Reliving The 1930s?





Seeing the two “depressions” as historically and generationally comparable, makes it easier to recognize other similarities between the 1930s and the 2010s. Many are economic, as we have seen. But others are demographic (falling fertility, migration, and mobility). Still others are social (growing localism, income inequality, and distrust of elites; stronger families; and declines in personal risk-taking). And still others, ominously, are geopolitical (rising isolationism, nationalism, and authoritarianism, and the unraveling of any “world order” consensus). The confluence of all these trends is not accidental...

 
Tyler Durden's picture

Voices Grow Louder To End The US Dollar's Reserve Status





When no lesser establishmentarian than Obama's former chief economist Jared Bernstein called for an end to the US Dollar's reserve status, it raised a few eyebrows, but as the WSJ recently noted, the voices discussing how the burden of being the world's reserve currency harms America, more than just Vladimir Putin is paying attention. While some argue that “no other global currency is ready to replace the U.S. dollar.” That is true of other paper and credit currencies, but the world’s monetary authorities still hold nearly 900 million ounces of gold, which is enough to restore, at the appropriate parity, the classical gold standard: the least imperfect monetary system of history.

 
Tyler Durden's picture

Crisis Chronicles: The Panic Of 1819 - America’s First Great Economic Crisis





"The nation was leery of a national bank with seemingly endless power to manipulate the money supply and the Second National Bank of the United States was attacked by both the expansionists and the sound money opponents. It was during this period that future President Andrew Jackson shaped his anti-Bank views in Tennessee while his future hard-money arm in the Senate, Thomas Hart Benton (Old Bullion), shaped his views in Missouri, two of the hardest-hit states. The debate over central banking, and the concern over deflation and inflation, continue two hundred years later."

 
Tyler Durden's picture

Stimulate This! Thoughts On Intergenerational Fairness





Since this is the season for giving thanks in the US, we might give some consideration to the unsung heroes who have been underwriting a big chunk of our economic recovery of late. Actually, we literally owe our future to them - in more ways than one. Since there are no free lunches in economics (that we all must agree on), somebody has to pay for this. And it should be obvious by now who that will be: our children and grandchildren (and at this rate, probably their children and grandchildren too).

 
Tyler Durden's picture

Central Bank Credibility, The Equity Markets, And Gold





Central bank credibility is at all-time highs. As a consequence, we suggest, equities are near all-time highs too while gold is scraping multi-year lows. A change though may be in the offing with all three. Not today, nor tomorrow. But perhaps sooner than most think. Here’s how we see it...

 
Tyler Durden's picture

The New World Order: Does It All Just Boil Down To A Battle For Your Soul?





From its very inception, the Leninist/Marxist ideology of the Soviet Union made it a central priority to dispel and subjugate religious and spiritual expression. The state was “god.” No other god could be allowed to flourish, for if the people were given license and freedom of belief in something beyond themselves and beyond the establishment, they would retain a sense of rebellion. The collectivist philosophy requires the utter destruction of all competitors; otherwise, it can never truly prevail. The New World Order, an ideal often touted by globalists and defined by their own rhetoric as a scientific dictatorship in which collectivism is valued and individualism is criminalized, seems to me to be — in its ultimate form and intention — a battle for the human soul.

 
Tyler Durden's picture

Stephen Roach Warns The Fed's Fixation With Markets Is "A Potentially Deadly Trap"





The Fed remains fixated on financial-market feedback – and thus ensnared in a potentially deadly trap. Fearful of market disruptions, the Fed has embraced a slow-motion exit from QE. By splitting hairs over the meaning of the words “considerable time” in describing the expected timeline for policy normalization, Fed Chair Janet Yellen is falling into the same trap. Such a fruitless debate borrows a page from the Bernanke-Greenspan incremental normalization script of 2004-2006. Sadly, we know all too well how that story ended.

 
Tyler Durden's picture

The Most Destructive Generation Ever





The Silent Generation (people born between 1928-’45), finds itself in a 'sweet spot' but refuses to spend enough. America has a problem: the ' by far' richest group in the US doesn’t spend, while those who would like to spend, for instance to build a home and a family, are too poor to do it.

 
Tyler Durden's picture

Russell Napier Declares November 16, 2014 The Day Money Dies





On Sunday in Brisbane the G20 will announce that bank deposits are just part of commercial banks’ capital structure, and also that they are far from the most senior portion of that structure. With deposits then subjected to a decline in nominal value following a bank failure, it is self-evident that a bank deposit is no longer money in the way a banknote is. If a banknote cannot be subjected to a decline in nominal value, we need to ask whether banknotes can act as a superior store of value than bank deposits? If that is the case, will some investors prefer banknotes to bank deposits as a form of savings? Such a change in preference is known as a "bank run."

 
Tyler Durden's picture

The Economic End Game Explained





Throughout history, in most cases of economic collapse the societies in question believed they were financially invincible just before their disastrous fall. Rarely does anyone see the edge of the cliff or even the bottom of the abyss before it has swallowed a nation whole. This lack of foresight, however, is not entirely the fault of the public. It is, rather, a consequence caused by the manipulation of the fundamental information available to the public by governments and social gatekeepers.

 
Tyler Durden's picture

The 1937 Recession





This Austrian School interpretation of events fits the facts rather better than the monetarist account.  The lesson for policymakers today is uncomfortable.  For, on this view, if there is a parallel with the 1930s, the damage has already been done.  It was done when the Fed allowed funds available for investment in capital markets to balloon, not this time through unsterilized gold inflows but through its QE experiment. 

 
Syndicate content
Do NOT follow this link or you will be banned from the site!