7 More Years Of Low Rates.. And Then War?

Tyler Durden's picture

While chart analogs provide optically pleasing (and often far too shockingly correct) indications of the human herd tendencies towards fear and greed, a glance through the headlines and reporting of prior periods can provide just as much of a concerning 'analog' as any chart. In this case, while these 3 pictures can paint a thousand words; a thousand words may also paint the biggest picture of all. It seems, socially and empirically, it is never different this time as these 1936 Wall Street Journal archives read only too well... from devaluations lifting stocks to inflationary side-effects of money flow and from short-covering, money-on-the-sidelines, Jobs, Europe, low-volume ramps, BTFD, and profit-taking, to brokers advising stocks for the long-run before a 40% decline.

Stocks look eerily similar...

Income inequality has ramped back to the same levels...



and Rates look awfully similar.... (h/t @Not_Jim_Cramer)

and that didn't end well... (War!)

But when we look at the headlines in the Wall Street Journal from mid 1936 to mid 1937 as the market topped out, dipped, was bought back (orange oval), then collapsed 40% in 3 months, nothing ever changes...



Government Bailouts Repaid - Bullish Implications...


N.Y. Central Has Repaid All Government Loans
The Wall Street Journal, 978 words
Dec 1, 1936
WASHINGTON Numerous railroad developments here yesterday were climaxed by the announcement of RFC Chairman Jesse H. Jones that New York Central had repaid all of its government loans, totaling $16,858,950, most of which was not due until 1941.

The Buying Is Not Speculation - Cash On The Sidelines...


It's Cash Bull Market With Little Inflation, Says Exchange Bulletin
The Wall Street Journal, 169 words
Dec 16, 1936
"This is eminently a cash market, and as such is relatively devoid of that major characteristic of speculative inflation, the use of borrowed money." says the December Bulletin of the N.Y. Stock Exchange.

Inflationary Side-Effects - Buy It All It's Going Up...


Wheat Prices Soar To 7-Year Highs On Heavy Buying Stimulated by Broad Advances in Foreign Pits
The Wall Street Journal, 1497 words
Dec 19, 1936
CHICAGO An avalanche of buying, encouraged by buoyancy in foreign markets, particularly in Winnipeg, swept wheat prices to the highest levels since December, 1929, Friday.


But... 3 days before...

The Wall Street Journal, 1027 words
Dec 16, 1936
As commodity prices continued to advance yesterday to the accompaniment of increasing public speculation in futures markets, signs of a feeling of caution appeared from widely separated centers.

As Goes The US So Goes The Rest Of The World...


London Trade Stimulated By Wall Street Strength; Averages at New Highs
The Wall Street Journal, 859 words
Nov 6, 1936
LONDON Overnight strength in Wall Street considerably stimulated the stock market yesterday. Dealers again arrived earlier than usual in anticipation of activity in international issues and found large buying orders in these stocks awaiting execution.

Global Economy To Lift Stocks...


London, New York Stock Transactions Largest in Months - British Brokers Stand in Queues to Fill Orders Activity Ascribed to World Efforts to Revive Trade
The Wall Street Journal, 956 words
Oct 8, 1936
Growing realization that the determined international effort now being made to sweep away trade barriers will be followed by improved business conditions throughout the world brought a rush of business to the security markets in New York and London yesterday such as not been seen for months.

Devaluation Always A Winner... (Market Prices Prove Economy Likes It)


Wall Street Weighs Devaluation Effects On U.S. Markets; Sees Little Likelihood of Dumping

 The Wall Street Journal, 1759 words
Sep 28, 1936
Rising security and commodity markets Saturday gave ample indication of the financial district's "bullish" interpretation of the U.S. Anglo-French monetary agreement.

Markets Cheerful Over Devaluation; Morgenthau Not Afraid of Dumping
Selective Buying Here and Abroad Motors and Other Shares Held To Benefit From Improved World Trade Are Strong Commodities Less Responsive International Markets
The Wall Street Journal, 1726 words
Sep 29, 1936
A note of cautious optimism was sounded by leading stock exchanges of the world which were open for business yesterday.

Equity Valuations Irrelevant...


Earnings Yield of 15 Stocks 4.8%, Compared with 9.4% Ten Years Ago
The Wall Street Journal, 1280 words
Aug 7, 1936
Industrial earning power is valued nearly twice as highly in the current stock market as it was ten years ago.

Europe Ever The Optimist Even In The Face Of Dismal Reality...


France Optimistic Despite Continuing European Tension - Growing Franco-English Cooperation Inspires Confidence
The Wall Street Journal, 652 words
Dec 5, 1936
Despite the unabated international tension and sudden menace of a constitutional crisis in Great Britain, the continuance of quarrels between Right and Left wings of the Popular Front, and the persistent antagonism between employers and labor, the general feeling in France is rather optimistic than pessimistic.

Short Covering As Ever...


Active Short Covering Sweeps Grain Prices To New High Levels - Chases Bears
The Wall Street Journal, 1345 words
Dec 2, 1936
New highs for the season were recorded in wheat, corn, rye and oats Tuesday. Spot red winter wheat advanced to the highest level since February, 1929. The sharp upturn, which boosted December corn almost 5 cents, and December wheat about 3 cents, was due principally to short covering by those made uneasy over the sale of an unusually large quantity of spot wheat out of local store, and by generous snowfall over the grain belt. Early in the session the market ruled easy on reports of rain and snow, and predictions for continued unsettled weather.

Government Spending Cuts Cause Concern...


Sabotaging Federal Economy
The Wall Street Journal, 412 words
Dec 5, 1936
Even the modest beginning which is attempted by WPA officials to reduce cost of government by cutting down the relief roles is encountering strong opposition. It is perhaps only natural that the workers themselves should object, although their methods of protesting through "sitdown" strikes, not to mention the violence which has manifested itself, may be open to question. But much more ...

States And Taxes...


Sales Tax Repeal May Unbalance Kentucky Finances
The Wall Street Journal, 1002 words
Jan 14, 1936
LOUISVILLE, Ky.--Repeal of Kentucky's 3% sales tax, effective the moment Governor Albert B. Chandler signs it, probably Wednesday will deprive the state of $3,500,000 of revenue budgeted to the expiration of the biennium ending June 30, 1936 and the counties of $1,750,000.

The Foreign Money Will Save Us...


Financial Centers Expect Greater Foreign Interest in Our Securities As Congress Delays Alien Tax Boost - Foreign Interest Here
The Wall Street Journal, 765 words
Aug 6, 1937
Some resumption of foreign interest...

Money On The Sidelines...


The Wall Street Journal, 590 words
Jul 1, 1937
While the Street remains in a cautious frame of mind, there are undoubtedly more possible buyers than sellers around, and it would not take a lot of encouragement to get these gentlemen aboard. Feeling in brokerage circles is that stocks are more likely to advance on any break in the unpleasant headlines these days than to decline far on a continuation of current uncertainties.

Jobs And Europe never far from fear...


The Wall Street Journal, 683 words
Jun 29, 1937
Certainly the market was more active on the downside, which surprised a lot of traders who had expected otherwise. The labor and foreign situations remain the main factors in the picture, and brokers feel that these have not changed one whit for the better thus far.

Buy The F##king Dip...


The Wall Street Journal, 508 words
Aug 24, 1937
A rather depressed feeling is extant in Wall Street as small volume and lower prices continue. Yet there are not many bears in the Street so far as the long pull is concerned. Traders still are stubborn in their theory that stocks are reactionary at the moment from lack of interest rather than any important liquidation. This is the period of the year when business takes a final breathing spell before the more active Fall and some think the stock market is doing likewise and that better days are ahead.

Rallies had Real Volume Then - No Low Volume Ramps...


The Wall Street Journal, 564 words
Aug 16, 1937
If Saturday's volume was any indication, revived interest in the stock market is here in the opinion of the Street. Furthermore the scope of trading Friday and Saturday indicated a broadening interest which included medium priced as well as low priced issues on contrast to the extended period wherein so-called "quality" stocks held sway in a limited market with small volume.

And At The Top... Brokers Suggest Stocks For The Long-Run (based on 'expectations')


The Wall Street Journal, 665 words
Aug 7, 1937
Profit taking for the week-end brought prices down in yesterday's market, but the undertone remained steady and brokers said there was nothing important in the character of the selling. Many houses were advising the purchase of favored issues on any further reactions. Metal shares ended the day with advances in many cases. There was impressive buying reported in the copper issues largely for long pull purposes.

The Wall Street Journal, 649 words
Aug 10, 1937
While volume left much to be desired, the expectation of stronger and more active markets continued to pervade Wall Street. Moreover, the general business picture is regarded as more pleasing than at any time since the so-called Summer "lull" came into force. Incidentally, the seasonal letdown thus far has not proved to be as extensive as many predicted and expected. Brokers say that many clients are away and that there are others who will be replacing their sold-out long positions in coming weeks.

See - it really is never different this time. It merely appears so since - as Kyle Bass so eloquently noted, the brevity of financial memory is about two years...


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LetThemEatRand's picture

The heirs of the guys in charge then (the ones who own the Fed, whose names we don't know), are in charge now.   But I suppose they are technically different people, so I suppose it is also different this time.

TruthInSunshine's picture

The shorts have been decimated, while the valuations of equities are at very nearly as irrational, and more so in some cases, as 1999's bubble - and the foundational structure of the real economy is far worse than then, and debt loads (both government & household) are multitudes higher than then.

And then there's that whole record margin issue...while CONgress continues to allow financial institutions to cook their books...mark-to-Unicorn & gettin' paid to keep real estate off market by BernYellen.

Yellen is going to have to literally double the monthly dosage of QE bad medicine just keep the Bear Cavalry at bay.

Double or nothing, bitches! And then to QEinfinity & beyond!

Domo arigato, Abe Kuroda.

Chris Jusset's picture

The US will have 0% inflation and 0% interest rates (ZIRP) for the rest of its existence.  The US's current ultra-fragile house-of-cards will collapse once either inflation or interest rates increase by a material amount.  Thus, the government has no choice but to lie about the inflation data ... and to keep interest rates artificially low into perpetuity, lest everything collapse.


Thus, the headline could just as easily read "700 More Years of Low Rates"

economics9698's picture

I think when people understand they can adopt old banker tricks and reverse the tables on the bankers, kill a few Federal Reserve owners, things will change.  Hang them high.

Keyser's picture

Pfft, they be lucky if we make it to the end of the decade before a stiff breeze comes along and destorys the ponzi scheme. 


AllWorkedUp's picture

Exactly. At the end of seven more years and QE tripled, they'll scream "more QE". By then the paper price of gold will be $500 and the Chinese will still be buying, and all of us goldbugs will be fucking broke.

Oh yeah, and the USD will be at all-time hgihs.

RafterManFMJ's picture


Don't matter, I'll be glad to live in a van down by the river, the river that contains my dear lost gold, guns and ammo.

TeamDepends's picture

Seven years?!  We ain't got seven weeks, man!  In case you weren't paying attention, we just got our asses kicked!  Marines, we are leaving!!

Jungle Jim's picture

To TeamDepends:

Truly. Yea, verily. You said it, brother. We are being crushed now. Good Eighties movie reference too.


They_Live's picture

This little girl survived longer than that with no weapons and no training.

overmedicatedundersexed's picture

they live, welcome..to the B movie life, the script sucks.

aardvarkk's picture

Pull back and nuke 'em from orbit.  It's the only way to be SURE.

Keyser's picture

Yeah, but she wasn't a central banker with zero common sense. 


CClarity's picture

Debt jubilee coming up.  But it won't be pretty out on the streets.

And physical confiscations will be rampant.

HulkHogan's picture

As long as the NFL and SNAP still exist, nobody will care.

Keyser's picture

By confiscations do you mean looting and rioting? 


DestituteYetJovial's picture

War... war never changes.

stant's picture

that 10yr rate is creeping up again 2.77. if it gets over 3 again they will have to find somebody to free the shit out of.

wee-weed up's picture

Obama might not want to wait until it gets over 3...

He needs a humongous diversion from the ObamaCare fiasco!


Running On Bingo Fuel's picture

War now! The rates will follow accordingly with the success of war!

GO! Blaze the trail.


Who Laughed's picture

To what extent has ZH contributed to all these heavily shorted equities and indices? (which also happen to be among the best performing..)

Tyler Durden's picture

Well, if you actually read ZH you would know that in September 2012 we said the best performing strategy would be to go long the most shorted stocks: "Presenting The Most Shorted Stocks", confirmed a year later in "Presenting The Best Trading Strategy Over The Past Year: Why Buying The Most Hated Names Continues To Generate "Alpha""

Then again, since there has been no such thing as a "market" since 2009, only idiots were encouraged to make money by betting on greater idiots.

In the meantime, if you have a problem with the daily exposition on these pages of the endless farce modern economics, "markets" and society have become, confirmed by the now 5th year in a row of socioeconomic life support with the central bankers' all in gamble amounting to $15 trillion and counting of liquidity injections, you are always free to a hopium brainwashing at any other place of your choosing.

fonzannoon's picture

Tyler you gotta jump in here ane mix it up with us moar often. It's what made this place so much fun.

HulkHogan's picture

I 3rd that. I may write something MOAR stupider than normal just to get Tyler to respond like that.

Karl von Bahnhof's picture

And call back Francis and MDB, please. Also Boris is little quiet.

Fire Angel's picture

I 4th that. It's nice to see you down here in the basement, kickin' ass and takin' names. Fire Angel

Who Laughed's picture

Yeap, I usually try to read every article that comes through ZH. 
What i'm saying is that the continuing proof (and it is) on ZH of an impending (but never quite realised) doom must be contributing to the negative outlooks on the stock market and subsequent short positions taken. 

To be clear, I believe we're in trouble and I think we're close.

However, I feel the urgency for a 'bear-down' hinted at in figure 1 could be enticing short positions (and short covering). which in turn, as ZH noted are further fueling the madness. 


Dr. Engali's picture

Most people here know that this "market"/ policy tool will never see a major downturn again. There will never be an opportunity to make major money on the downside. Any shorts that get their asses squeezed out of this market are not short because they are visiting these pages.

forwardho's picture

Lets try not to take ourselves to seriously.

As of 2100 EST  6000 people "looked" at this article.

ZH is great, the posts and comments hit my confermation bias.

Always look at the number of hits on this site and realize we are a very, very small comunity.

S73's picture

If we were a large community, these banker ATMs called markets would not exist as they currently do.

itchy166's picture

Crashing something as large as the global financial system isn't instantaneous, its been crumpling for five years...

Fedaykinx's picture

i've resigned myself to the fact that it's probably going to take much longer than most realize

Kobe Beef's picture

That's why I left the country. I've gotten on with my life while the USSA dies. It's a sunk cost, and my life is not.

However, give me a heads up when the Republic is returning, and I'll see you on the fields of San Jacinto.

Squid-puppets a-go-go's picture

@Who Laughed

so hey, what's the insinuation? that ZH is irresponsible if it leads to some shorting in the market?

ZH uses words alone, and in that capacity it can be seen as merely a counterbalance to the always ever so positive spin in the mainstream media.

Take a look at the language in the article above - at least in the 30's they would give a (however dismissive) nod to contrary opinion or bearish sentiment. Thats almost non existant with today's mainstream media

ZH is a counter balance to their irresponsibility, and lets face it, if ZH was successful at dragging prices down, what's the ultimate result?  The inevitable crash comes from a lower height.

So, again, what precisely is ur problem? or was it just an observation..?

Who Laughed's picture

I didn't intend to insinuate anything and I'm very sorry I upset Tyler and the group.


My concern is that people at the top are benefiting from these negative market perspectives (not mainstream ideas) through short covering

Who is short and why?

Are short positions, historically, small in volume?

How greatly are short covers contributing to price growth?

Any help appreciated!


BandGap's picture

I don't use anything here as an investment tool. I just listen, prepare and vent on occasion.

Raging Debate's picture

Well Who Laughed, if you look up my former comments I only gave two pieces of advice on trading and that was in 2012 and not on shorting or gold.

One comment was to invest in the market for 2013 and the other invest in the Yuan. I am not much into vanity to claim prizes for being right but not all of us short here.

Fearful (rightfully so), intelligent folks paying attention here and this service highlight the cycles of the corruption in our species and I trade accordingly. Government creates all sorts of distortions to be mindful of and while tyrannical behavior is also cyclical and of course it is gloomy and since history rhythms doom of war and other disaster should be discussed.

Personally, I just dance until the music stops. I am not into advocating violence as the solution. Build some tech for the old white control freaks and make them dependent on you, then gently steer the big ship a couple degrees if possible. I think more people here in general should spend some time looking in the mirror before eternal condemnations.

I own a small business also but I do not see it advantageous to grow it over the next several years, 2021 most likely. In these cycles, the small innovator or producer is crushed, consolidation occurs until there is nothing left to invest in, then the government starts to starve on tax revenues (offshoring wealth/evasion) and eventually changes course because it has to. Let's pray we get no WW3, Ill take stagflation for another decade over 2 billion lives lost and a grief filled rebuilding process...

farFromEq.'s picture


I (we) hear you, about getting to the root of what essentially comes down to mis-pricing. But, this was kind of a whimsical post. I mean, the obvious question that comes to mind when I see this article is what is the difference in M2 growth between today and the '30s? And while I appreciate the provocative post, they shouldn't be provocative at the expense of mis-leading the loyal readers.

Appreciative of the work here, really.



HulkHogan's picture

I've read ZH since the beginning (Flash Crash) and have never mistaken it for a "stocks to buy and sell" site. Though, Tylers if you want to make some money, offer a newsletter for $1,000+ yearly subscription. I think you'll do very well.

falak pema's picture

In defense of "Who laughed" and the essence of his post IMO :  ZH is a great site for analysing current Pax Americana generated dystopia, via it Admiral ship WS; to which ZH, by being actively involved on a day to day basis, has a privileged position not only to understand its hidden mechanisms-- brilliantly exposed here continually -- but also its future implications.

What is lacking in the ZH postings as proponent of the "doom and gloom" culture, based unquestionably on HARD FACTS and historical perspective, is a clearer assessment of the logic of Mindset of the world Oligarchy. We need a more balanced perspective and ZH is proponent only of ONE side of the argument. Admittedly, the MSM is there for the other side, and its all smoke and mirrors alas, in regulatory capture of US and Euro media and corrupt government.

But ZH does not use its dialectical skills to make a case, for example, for global debt jubilee; a debt jubilee seems inevitable as this huge debt can never be truly paid back as we will hit that asymptote one day of zero return on perpetual  fiat generation from out of the CB books. To avoid war, which nobody sane wants, the route to a debt jubilee requires more positive proponents in the Media of ways of mixing monetary policy with forced and organised debt write offs and reengineering of the banking and shadow banking sectors globally. ZH could be a spokesman for that solution. Instead of seeing only the inevitable repeat of the 30s as the only possible outcome.

Treating the crony capitalist class and their compulsive "print to infinity bankers" as latter day Neros, hurtling us all to our collective economic demise, may be the correct bigger picture. But, in new Rome there are still honest people who have other solutions to propose besides dystopian binary logic.

This current FED logic is not the only picture and ZH does not present the logic of other possible OPTIONS fairly. The world is multi polar and other solutions do exist.

ZH is stuck in its own ideological rut that it has established on a "prejudged" basis, aka since 2008 fall, as the ONLY possible outcome. We stay in the TD fight club and dystopian thread like it were the Bible of the Contrarian libertarian religion with Ron Paul, a marginal politician of Pax Americana tradition, as the Messiah. Austrian economics elevated to religion and macro economics debased to the devil incarnate.


Squid-puppets a-go-go's picture

"a clearer assessment of the logic of Mindset of the world Oligarchy" would presume their is only one illuminati. There are several illuminati, individuals within which intersect each nexus.

Thus it is an impossibility to outline "the logic" because there are several competing factions, not one cohesive logic

there are some common threads between these but i believe tyler adequately exposes such motives through his sarcasm and cynicism.

Global debt jubilee? It makes nothing but sense to me but i've yet to hear even ONE MSM pundit or politician/beaurocrat even utter it as a possibility. So i can imagine Tyler would feel he's wasting his breath


But for what its worth, I'm not sensing the same sense of certainty from Tyler (in what direction the future will take - he remains as vitriolically concrete in his assessment that the system sucks) in the last few months. I'm getting a sense of despondency, even.

Which is completely forgivable given how long its taking for the music to stop

gwiss's picture

"Not sensing the same sense of certainty.."

Think of it like this.  You're driving behind a car with an apartment full of stuff tied to its roof rack with dental floss, traveling at 75 mph down the Interstate. The kiddie pool already blew off 2 miles ago, and although you tried to dodge, it took off your antenna and side mirror.  Every time you pass a semi going the other way, the wind surge causes the mattress at the base of the whole mess to levitate and tremble.  So -- which semi is going to be the one?

In a way, it's a bit of a mind fuck, this constant being ready for disaster.  Wears you down.  Which is why eventually a lot of people are going to give up on it.  And only then will the shit truly hit the fan.

The Tylers are coming to grips with the inherent unstoppable nature of it.  No one listens or cares, because honestly the rest of the passengers don't have the ability to truly contemplate things on a systemic level.  Left to their own devices, they would not be capable of designing a ship, which is why they are not capable of understanding that the ship is well and truly hosed.  Coming to grips with how unfortunate it is being the first few to know the ship is going down, how interminable the wait is because the water takes a long fucking time to fill the hold, especially because you are bracing yourself the whole time for how freezing cold that water will be.  And only when the ship actually tips up vertically does the true horror of how badly this experience is going to suck for everyone, even the truly prepared, really viscerally sink in. 

drdolittle's picture

If I were enriching myself by creating debt and had enough money to buy congress, I would actively work against a debt jubilee. Bankrupting the masses with a sudden contraction in the money supply and taking all their stuff "legally" would be my plan.

Debt jubilee? Only if accompanied by the guillotine.

enloe creek's picture

My simple uneducated old ass thinks the velocity of money is what the fed would like to see going up.
til that happens which it is not while things limp along there will be more qe
maybe TPTB will see the need for a crisis to do more or change tactics but they will not abandone the fight against deflation and the proping up of the dollar. so any melt down in the buck or bonds will be met with some interesting responses

Trickman's picture

Bernanke had a very clear view of what he wanted to avoid -- he wanted to avoid the Great Depression. His analysis led him to believe that the major cause/contributer was the restricted liquidity as banks seized up and began avoiding risks. You can't argue that this would not and did not make the Great Depression worse; however, you can argue that Bernanke's approach has its own flaws.

1) Simply making the money available to the banks for lending at lower rates will only marginally increase their lending rate as they are still avoiding risks. Furthermore, the banks are avoiding risks because they took on too many high risks to get into this situation. You need to make the liquidity available, but you also have to address the demand for that liquidity.

2) In the 20s (like now), the income disparity meant that there was a smaller and shrinking middle-class group of consumers to create demand for the good/medium-risk loans and consume production created by good-debt. Increasing the money supply does not correct for this issue in any way, but rather exacerbates it, further shrinking the class of consumers that you want to take loans. 

3) Finally, the whole point of a recession is to redistribute resources away from the inefficient and poor managers. By completely 'avoiding' recession, or really by giving everyone enough cash to 'get through it', we've completely avoided the necessary redistribution to begin growing again. TBTF is a problem that needs to be addressed. TBTF doesn't mean you give them a pass. It means you break them up a la AT&T & the Bells by some arbitrary method -- region, state, branch location distribution -- throw out a small support to give each of them a fighting chance to clean up their mess, and then let them sink or swim. A recession is inevitable, you can't prevent it. But perhaps you can phase it in?

4) I think that certain aspects of the Keynesian approach make sense; however, you'll never get a government to appropriately implement an expansion-dampering + recession-boosting approach, not to mention, the government is too stupid and too slow to ever implement the right policies at the right speed. Given that, the debt needs to be brought under control. We need surpluses and we need them now. That means lots more pain in the short run, but I'd rather pay the bill today than in 5-10 years. Compound interest is a ruthless bitch.

Both 1) and 2) need to be addressed to increase the velocity of money in a positive manner. We've definitely addressed 1), but addressing 2) requires real redistribution, which we have altogether avoided so far via government intervention. Sure, there are the various government redistribution mechanisms; however, these only redistribute income without actually shaking the economic status-quo like a significant recession would and actually tend to reduce socio-economic transfers (ZH had a great chart on this a week or so back). As the economy consolidates (as it always eventually will), barriers to socio-economic movement will be erected so that the top protect themselves (as anyone would do) and the middle class protect themselves and so on. The rich hide behind gigantic corporations, tax havens, whatever to avoid losing their wealth. Middle class workers transition less and do whatever they can to make themselves necessary to their job. These are all natural courses of an economy; however, eventually this causes an imbalance. You get poor people that could be better suited to the middle class or upper class jobs, people in upper class jobs that are woefully inadequate and should be flipping burgers or manually working the spreadsheets themselves, and so you need 3) to shatter the egrarious violations of efficiency and let the market work. Finally, even should we fix the economy by letting it correct and get back into a growth pattern -- our government debt is so extreme that any victory would be short lived without addressing 4) as if the economy did begin growing again, monetary policy would have to be restricted to avoid runaway inflation and another huge crash. Of course, that might be preferable to the fed/govt than making the govt crumble.

Of course, neither the Democratic nor Republican parties are capable or willing to do any of this and the deteriorating education in our country makes it increasingly unlikely that the electorate ever elects enough someones who would make these changes, which pretty much makes us Rome... destined for eventual failure.

grunk's picture

Seven more years of this shit?

I'm gonna start running cigs from VA/NC up to NYC.


RafterManFMJ's picture

...and Mason jars of 'shine, man!