Jay, 300 down to 50 was certainly a LOT of fun from October 1929 to January 1932. Having a gold standard and messing up free trade, banks and stuff certainly ensured they got a world class depression, followed by a top class World War.
With the amazing pixelating dollars, unhooked to anything other than Uncle Al's wisdom and Uncle Sam's muscle, we are not getting a re-run. CB did a good job of scavenging through the data on what went on to cause the great depression.
We are now at three years since the peak [almost] and unemployment is normal, production is growing, [especially global production with China going nuts], inflation is normal, exchange rates are normal, conflict is at historically low levels despite some sabre rattling.
Interest rates are super low. Vast quantities of freshly pixelated $$ are swishing through cyberspace, looking for a home. They are not causing inflation because of the countervailing effects of deflationary production from China, India and elsewhere combined with the New Paradigm of the Biotelecosmictechdot.com productivity supercharging. Which makes it a heck of a lot of fun for Uncle Al and Uncle Sam because they have got the most amazing money tree of all time. They can slash taxes, allow tax free dividends from QUALCOMM and pixelate themselves all the loot they like to make up the difference. Without causing the old-time hyperinflation.
<we are having such entertainment trying to put the 'frighteners' in you ;0) >
Well, it's been a lot of fun but it's getting boring waiting around, alone on the battlefield, chest bared, for the second coming and the terrors to begin. I might have to give it up and get some retail therapy.
Where are the frighteners? It looks as though a deflationary, cascading, debt-powered implosion is no-go. A great depression is not on the cards. Inflationary madness is out of the question. Unemployment at 20%, let alone 30% is not on. War is little more than sabre rattling with unmanned predators being the main casualties on the good side.
Mqurice
PS: Edit... then I find this siliconinvestor.com <The number of jobless worldwide has risen by 20 million people over the past two years and hundreds of millions more are employed but make so little money they can barely survive, the United Nations labor agency said Friday.
"The world employment situation is alarming," said Claire Harasty, senior economist at the International Labor Organization, launching the 108-page Global Employment Trends report. "After two years of economic slowdown and delayed recovery we estimate that 180 million people are now unemployed worldwide."
The figure represents 6.5 percent of a total global labor force of 2.8 billion people, the ILO said.
The last report, in 2001, said the number out of work was 160 million - or 5.9 percent of a then 2.7-billion labor force....contd...>
5.9% up to 6.5% during the big crunch. Yawn... But they could give those 160 million a UN policeman's uniform and use them to occupy Iraq. That should be enough. Heck, they could occupy other conflict places too, to keep trade flowing freely and barbarism at bay. |
