In a perfectly timed update to his infamous April 2009 "worse then The Great Depression" chart [6], Kevin O'Rourke has unveiled his latest [7]chart-du-poor [7]. With US manufacturing collapsing, bond yields tumbling, and The Fed about to hike rates to prove they can, this so-called 'recovery' has fallen below that following The Great Depression. As O'Rourke sums up, "pretty dismal stuff. Let’s hope that we can at least avoid the famous 1937-38 double dip."
In 2009, things looked dire... [6]with the crash in industrial production outpacing that of The Great Depression...
In 2010, thanks to unprecedented reflationary policies, everything was awesome...
[8]
(but by the end of the year, and as O'Rourke puts it "reflation turned to austerity in Europe, and the global recovery slowed, to the point where at times it seemed to be petering out almost altogether.")
Which brings us to today - In August of 2015, the inevitable happened: our current recovery was overtaken by that of the interwar period. "Pretty dismal stuff," as O'Rourke opines.
[9]
Concluding, rather ominously, "Let’s hope that we can at least avoid the famous 1937-38 double dip, visible at the end of the interwar series."
