Depression Archive

We are NOT anywhere near a depression!

[Skip to the end] Personal Income from 1929-1940 Nothing remotely like this is currently in the cards. It was the last gold standard collapse. The US gold standard was abandoned domestically in 1934. Personal Income from 1940-1945 Nothing remotely like this will happen this time around. World War II deficits exceeded 20% ...Read More

Budget surpluses and depressions

[Skip to the end] After the last budget surplus ended in 2001, Bloomberg stated it was the longest period of surplus since 1927 -1930. Prof. Fred Thayer wrote this before the surpluses of the late 90’s: http://www.epicoalition.org/docs/thayer.htm Here’s part of the intro: From the origins to World War II In its first ...Read More

Connolly

Agreed that government can buy stocks to keep them from falling, as HK did. But the 1930s was a gold standard deflationary collapse. The Fed was constrained from net buying anything due to the risk of losing gold reserves. The risks are very different now with non-convertible currency/floating fx: Depression risk might ...Read More