18

The Humungous Depression, by Robert Gore at STRAIGHT LINE LOGIC

Posted by straightlinelogic 8 years, 7 months ago to Economics
25 comments | Share | Flag

If one dates the beginning of a depression from the time when the benefits of debt are, in the aggregate, outweighed by its burdens, the depression began in 2000, with the implosion of the fiat-credit fueled, high-tech and Internet stock market bubble. Unsustainable debt and artificially low interest rates lower the rate of return on productive investment and saving, increasing the relative attractiveness of speculation. Central bankers and their minions refer to this as “forcing investors out on the risk curve,” crawling way out on a limb for fruitful returns. They have no term for when markets saw off the branch, as they did in 2000 and again in 2008.

This is an excerpt. For the complete article, please click the above link.
SOURCE URL: https://straightlinelogic.com/


Add Comment

FORMATTING HELP

All Comments Hide marked as read Mark all as read

  • Posted by Dobrien 8 years, 7 months ago
    Thanks Mr Gore.
    I am interested in your thoughts regarding the connection of gold backed currency and the destruction of Libya .I have read that Gaddafi's Libya was a country that was educating it's citizens and that it had created a very successful irrigation infrastructure turning desert to farmland resulted in feeding Libyans and was fiscally sound. Gaddafi was being cooperative regarding terrorism and was supposedly reformed . They did pay retribution for Lockerbie . The info indicated a movement in many countries in Africa to adopt a Libyan currency backed by gold.
    This is what really caused the war and destruction of a stable Mid-east country, now a fertile refuge for Moslem terrorists. Was this another Lesson --don't f***. with the banks and their control of the federal reserve.
    I also read that the irrigation system was targeted and destroyed. That can't help the people to destroy their ability to feed themselves
    Any correction of my comments will be greatly appreciated.
    Reply | Mark as read | Best of... | Permalink  
    • Posted by 8 years, 7 months ago
      I have seen the same suspicion that Gaddaffi was targeted because of his plans for a gold-backed currency. It would not surprise me, especially if he had aspirations of making it some sort of pan African standard. The US government does not like countries who go their own way, and a gold-backed currency would definitely have been going its own way for Libya. It is ironic that Ghaddafi, who was trying to play by US rules, was deposed. The same dynamic applies to Syria and Iran. The US government's enmity towards Syria goes back to the 1960s, when the current ruler's father aligned with the USSR , and the animus towards Iran dates from their revolution in 1979. In neither country does the US military and intelligence agencies have clean hands.
      There is no way to be certain what the US government does or doesn't do, and what its motivations are, so we will never be able to say with certainly why the US wanted Gaddafi gone. Hwever, what you suggest is certainly plausib.e.
      Reply | Mark as read | Parent | Best of... | Permalink  
      • Posted by Dobrien 8 years, 7 months ago
        Thanks for your prompt response on the eve of your vacation, by the way I wish you a safe and happy relaxing break.
        I can't help but think that it is the shadow govt that is controlling the U S Govt on these types of foreign affairs. The CFR sticks out like a sore thumb and the banker that founded it.
        Reply | Mark as read | Parent | Best of... | Permalink  
  • Posted by Herb7734 8 years, 7 months ago
    Unfortunately, sadly, frighteningly, true. Waaay back when Objectivists were buying gold even though it had to be done in a way to circumvent the law by putting the gold in the form of medals, trophies and plaques, we were following old Ludwig's advice. I can even foresee a time when it could be dangerous to be the guy who owns the gold.
    Reply | Mark as read | Best of... | Permalink  
  • Posted by dbhalling 8 years, 7 months ago
    Straight,

    I agree we are headed for a huge recession, but I disagree that the late 1990s were debt driven. The Austrians like to push the theme that 1920s and 1990s were driven by the Fed and not real growth. In the late 1990s the gold price was falling the federal debt (financed) was falling, and the Fed's balance of treasuries was falling.

    Both the 1920s and the 1990s were periods of real growth at rapid rates based on technological revolutions (electrical power gird, internet) . They may have gotten ahead of themselves, but that does not mean they were pure speculative inflation.

    In both cases we are still benefiting from the the technologies developed in those decades, while we are not benefiting from housing bubble in the 2000s.

    In order to extricate ourselves from the situation, we need not only a sound monetary/fiscal policy but we need policies that cause people to create the new technologies that make us wealthy.
    Reply | Mark as read | Best of... | Permalink  
  • Posted by $ Olduglycarl 8 years, 7 months ago
    Always appreciate your stuff, Robert.

    Every financial new email I get would agree...
    However, Arthur Laffer, (economist) outlined a plan to get out of this death spiral...if I were pres. I'd put him in charge of the fed and say...go to it boy...have your way with it. (it was the best plan I've heard to date) I think it was on Glenn Beck last week.
    Reply | Mark as read | Best of... | Permalink  
  • Posted by Solver 8 years, 7 months ago
    Does the economy thrive because of voluntary trade or force? Does it grow because of the free markets or central bank planners? Is prosperity created by business selling goods and services that people want or big government redistributing wealth earned by others.
    I guess an individual's answer would depend on whether or not they were brainwashed in a government schooling system.
    Reply | Mark as read | Best of... | Permalink  
  • Comment hidden by post owner or admin, or due to low comment or member score. View Comment
  • Posted by $ MichaelAarethun 8 years, 7 months ago
    LMAO the term is direct government intervention specifically the phony free housing scam and the ethanol scam specifically Dodd, Franck, etc,

    Market manipulation for political power gains at it's finest and the bastards were still re-elected.
    Reply | Mark as read | Best of... | Permalink  
  • Posted by coaldigger 8 years, 7 months ago
    It seems to me that our fiat dollar is "backed" by two principles, one is that we are a nation of voracious consumers valued by producers of goods and services world wide. Anyone that would harm our currency is damaging half of their potential market. The other is we have the most and most destructive weapons which we have proven that we will use to protect our way of life. We can still screw this up but there is some wiggle room that we haven't exceeded yet. The power elite sustains its position by manipulating within the wiggle room and are fully aware that allowing more than 1% to play might burst the biggest bubble of all.
    Reply | Mark as read | Best of... | Permalink  
  • Posted by $ allosaur 8 years, 7 months ago
    Thanks, Robert. This time your straight line logic was good as gold.
    A lot of gold. (Giggle).
    But what should be this county's economic foundation. Not printed paper and fairy tale magic dust.
    Reply | Mark as read | Best of... | Permalink  

FORMATTING HELP

  • Comment hidden. Undo