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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (9561)	7/19/2004 9:44:59 PM
From: glenn_a	Read Replies (1) \| Respond to of 116555

Bobcor. Umm, well I've already posted quite a bit on this topic ... particularly regarding sterilization of gold to maintain foreign exchange parity amongst the U.S.-Britain-France currencies leading up to the early 1930's, and the problems that disruptive gold flows eventually caused the gold standard of the late 1920's. Please see the following posts: Message 20234279 Message 20236541 Message 20277691 Message 20285041 Message 20320175 Unfortunately, I have not been able to find much in the way of statistics re: total credit outstanding relative to GDP for the various nations at the time. What I was referring to in my statement you quoted in your post was the graphic at the bottom of my last post above, for which the link can be found below: contraryinvestor.com This depicts that total US outstanding credit relative to GDP presently is at similar levels to total US outstanding credit relative to GDP in the late 1920's. But the quality of loans was getting so shaky for the US back in the late 1920's, for reasons that are outlined in Quigley's commentary above, that the whole debt pyramid came tumbling down. For the importance of total credit relative to GDP as a barometer of financial health, please see the past several years of Doug Noland's Credit Bubble Bulletin articles at www.prudentbear.com . Sorry bobcor, that's about as best as I can help you with. Good luck in your searches. Regards, Glenn