Alan “Bubbles” Greenspan Returns to Gold

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After a misbegotten credit bubble and $60 trillion more of debt.

By Bill Bonner, Chairman Bonner and Partners:

Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. […] The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.

— Alan Greenspan, 1966

That old rascal!

Before joining the feds, former Fed chief Alan “Bubbles” Greenspan was a strong proponent of gold and the gold standard. He wrote clearly and forcefully about how it was necessary to restrain the Deep State and protect individual freedom. Then he went to Washington and faced a fork in the tongue.

In one direction, lay honesty and integrity. In the other, lay power and glory.

Faking It

Under the Bretton Woods monetary system, the U.S. promised foreign central banks that it would convert their dollars to gold at a fixed price of $35 an ounce. This constrained the amount of dollars the U.S. could print to the amount of gold it had in its reserves.

A smart man, Greenspan quickly realized he could not advocate for this old, tried-and-true gold standard and run the Deep State’s new credit money system. In 1987, he made his choice. He took over the top job at the Fed and faked it for the next 19 years.

Since 1978, we have had four different Fed chiefs. Some were smart. Some were honest. Only Paul Volcker was smart and honest.

Bernanke was honest… we believe. As near as we can tell, so is Janet Yellen. Both may mean well, but both are careful not to think out of the Deep State box.

Alan Greenspan was smart. But he is a scalawag. He knew all along that the system was corrupt and self-serving. He had explained it in essays he’d written prior to joining the Fed.

But he also knew he would never get his picture on the cover of TIME magazine if he told the truth.

(In 1999, Greenspan eventually got his mug on the cover. The magazine pictured him alongside then Treasury secretary Robert Rubin and his deputy, Larry Summers, under the headline “The Committee to Save the World” for their handling of the Asian financial crisis.)

It was power Greenspan wanted; he knew he would have to play the Deep State’s game to get it.

Golden Period

Now, Mr. Greenspan is 90 years old. Either he feels the cold downdraft of the beckoning grave… or he is simply forgetting to mumble. In an interview in the wake of Britain’s decision to end its membership of the European Union, he had this to say:

If you look at human history, there are times where we thought that there was no inflation and everything was going fine. […] The oil prices have had a terrific impact on global inflation and [I] would not be surprised to see the next unexpected move to be on the inflation side. You don’t have it until it happens.

The former Fed chairman says he believes another debt crisis is inevitable. He believes it will lead to high levels of inflation. His solution? Gold:

Now if we went back on the gold standard and we adhered to the actual structure of the gold standard as it exists let’s say, prior to 1913, we’d be fine. Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the U.S., and that was a golden period of the gold standard.

The Fed’s minutes from its last meeting reveal no intention to return to the gold standard. Instead, the Fed’s central planners want their photos on TIME, too.

They can’t give up their control of the nation’s money or risk a correction. It would be “prudent to wait for additional data” before raising rates, they say. Mr. Greenspan might have said so, too… perhaps with a hidden, sly smile on his face.

Misbegotten Bubble

We have been connecting dots; we want new readers to see what we see, so we can all look at some more dots together.

Like everything else in economics and the markets, credit is cyclical. At the beginning of an expansion, people borrow more and more. Then, when they have borrowed too much, they cut back, they default, they trim their expenses… and they trim their debt.

The expansion phase – like the bull market on Wall Street that usually accompanies it – is a happy time. People feel richer and smarter; they feel their hair grow and their private parts swell.

Then comes a less happy time, full of blame and regret…

“You should never have bought that boat,” says the nervous wife.

“I told you we didn’t need that extra warehouse,” says the worried business partner.

“I thought a degree would increase my income,” says the college graduate, as he takes your order.

The EZ money is supposed to beget an asset boom… which is supposed to beget an economic boom… which is supposed to beget the wealth that will pay off the extravagant borrowing that the credit expansion begat.

“Higher stock prices will boost consumer wealth and help increase confidence, which will also spur spending,” said an earnest, but perhaps dim, Ben Bernanke in 2010. “Increased spending will lead to higher incomes and profits that… will further support economic expansion.”

Six years later, all we see is a misbegotten credit bubble and $60 trillion more, worldwide, of debt.

When this $60 trillion credit bubble pops, it’ll be more devastating than anything America has ever seen. This crisis will not only hit stocks, but also your credit cards, checkbook, bank account… even the cash in your wallet.  Watch my warning now to understand and protect yourself from this looming economic collapse. Find full details here.

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  50 comments for “Alan “Bubbles” Greenspan Returns to Gold

  1. nick kelly
    July 8, 2016 at 10:37 am

    A very interesting piece- I thought after reading the headline that Greeny was a recent convert to gold, having arrived there by a process of elimination.
    To hear that he was in favor of a gold standard before flooding the US with cheap, created credit is a revelation.
    Maybe that’s why he spoke in riddles- he had to BS himself.

    (One of the golden rules of being, in spy terminology a deep cover ‘mole’ is that you don’t fake your cover, or fake identity, you become it.)

    • robt
      July 9, 2016 at 8:54 am

      After reading, in the late ’80s, the essay he wrote in 1966, I watched in awe and horror as he did everything to negate what he believed. Juicing the market for the 1996 election led me to believe it was all over … and the campaign by the Gang of Three (the cover boys) to rescind Glass-Steagal, and their ‘victory’ in sidelining Brooksley Born of the CFTC who wanted to regulate derivatives confirmed it – the beginning of the serial bubblelicious USA markets during the Clinton administration.
      Previously, inflation was introduced by the so-called ‘Open Market Operations’, but there was still something resembling a business cycle and cyclical interest rates instead of the relentless pure speculation and asset inflation we are left with now.
      John Law had to escape in the dead of night after he destroyed the financial system of France; these guys get to make 100,000 dollar speeches and are called ‘gurus’.

  2. Smingles
    July 8, 2016 at 10:54 am

    Greenspan is a Randian clown with no credibility. Educated? Yes. Smart? No, not really.

    And the world should be worried about deflation, not inflation. Greenspan could not be more wrong.

    Deflationary forces and trends are picking up steam, not the other way around. The massive amounts of liquidity from central banks has done little to mitigate this.

    “Then, when they have borrowed too much, they cut back, they default, they trim their expenses… and they trim their debt.”

    Which is deflationary.

    The Eurozone is battling deflation and failing miserably. PPI in Spain has been negative and trending worse since 2013, down 6% YoY as of the end of Q1.

    Asia? China, India, Japan, all struggling with deflation.

    10 year treasuries yielding 1.39… and we’re listening to Greenspan talk about inflation?

    And as central banks around the world continue their great negative rate experiment, the dollar will strengthen, leading to further price drops, and more imported deflation.

    Greenspan’s argument seems to rely on nothing more than “inflation doesn’t happen until it happens!”

    • Nicko
      July 8, 2016 at 11:43 am

      Where does one put their money then?

      • Smingles
        July 8, 2016 at 3:02 pm

        That’s a tough question, Nicko; it really depends on your personal circumstances, matching up asset duration with your liquidity needs. If you’re in your 20s or 30s, stocks will *probably* (I’m not a psychic) do well in the long run, but there’s no guarantee (Japan), ever.

        If we’re mired in a deflationary environment for a long time, despite the pathetic coupons, treasuries will still likely do well from a total return perspective. The S&P is up 3-4% this year, 20+ year treasuries are up 20% year to date, because yields are declining.

          July 8, 2016 at 4:23 pm

          Invest in yourself. Get the best training (education) and then do your best to live debt free.

          Second, learn how to be and stay healthy. You want to completely avoid the “Health Care Business”. It is corrupt. I know. I’m in it.

          Next, buy silver coins and have enough paper currency to pay 1 years worth of bills.

          Then? Laugh. Enjoy Life. Have Children. Love them.

        • Lee
          July 8, 2016 at 4:58 pm

          Long run? Usually why even bother. Timing is everything.

          Depends on what you buy.

          How are gold stocks doing over the past year?

          How about silver bullion over the past year, five years?

          Lot’s of people made a ton of money if they bought Japanese shares right before Abenomics and then sold before the NIRP.

          Australian real estate, maybe. Transaction costs are very high.

          Depends on plain ole dumb luck.

          Where did you buy? If you bought out in the suburbs your rate of return pales compared to having bought in one of the areas where Chinese came in and went crazy.

          That same house you paid A$250,000 for in those areas where Chinese bought is now worth 10 times what you paid. Maybe twice in the other areas if you were lucky. A ‘bad’ area – maybe not even that. Yeah, some bubble.

          How about such things as plain ole postage stamps?

          If you were a collector did you buy some of those ‘high’ priced kangaroos twenty years ago only to see them go up by 10 times or more or did you spend your hobby money on mint Australian decimal stamps to see no change or a loss?

          What about coins? Where you lucky enough to have bought a whole bunch of neat Chinese coins before China boomed and see that coin you paid US$50 for go up to US$800 or more or did you stick with the US proof sets that went nowhere?

          The same with education. Did you get an MBA 35 years ago when tuition was cheap and the degree had value or did you spend US$90,000 to get one a few years ago? The MBA is now, IMO, a garden variety degree not worth the cost.

    • Alistair
      July 8, 2016 at 12:00 pm

      If the world was struggling with deflation as you say, we wouldn’t have asset bubbles everywhere. Asset bubbles are inflation, even if they don’t show up in the various consume price indices.

      • Intosh
        July 8, 2016 at 2:21 pm

        We are not there yet. China’s devaluation of the yuan will export deflation to the world.

          July 8, 2016 at 2:24 pm

          Cheaper prices? Let’s Go !!!!!

      • Smingles
        July 8, 2016 at 3:19 pm

        Deflation does not mean bubbles can’t or won’t exist.

        Furthermore, you say we have asset bubbles everywhere, I disagree.

        Oil peaked at $150/barrel in 2007, traded at $27 in January. Hugely deflationary.

        Copper traded at $4.60 in 2011, now trading a little over $2.10. Hugely deflationary.

        Want to talk stocks? Look at China, Japan, Brazil, Spain… there are FAR more markets that are struggling to get back to mid-2000s prices than are at new highs, like the US.

        Asset bubbles can be brought on by a lot of things. Look at Vancouver housing– are prices rising because of inflation? No! They’re rising because the Chinese are laundering money there in record amounts, buying up every two-hit shanty for $2 million because it’s better than leaving it in China… because of deflation.

        • Lee
          July 8, 2016 at 5:01 pm

          “Copper traded at $4.60 in 2011, now trading a little over $2.10. Hugely deflationary.”

          Watch the market as there are very few new mines coming in the next few years which will have a huge impact on the supply side of the equation………

    • cv5
      July 8, 2016 at 12:36 pm

      LOL no no no….they are all struggling with clownbuck-itis and debt hangover and printing press mania. Deflation or inflation would be trivial matters in a legitimate system.

    • Brian Richards
      July 8, 2016 at 2:49 pm

      All of what you say is very rational and logical, but the world no longer seems rational or logical. Certainly, on a personal expenditure level, we all are suffering from inflation. But the enormous amount of debt in existence throughout the world seems too large to liquidate without severe deflationary consequences. I tear my hair out trying to figure out how to allocate investment funds. Everything seems overvalued, and yet I am aware all these overvalued asset classes could easily become much more overvalued or lose 90% of their value.

    • indianguy
      July 9, 2016 at 12:50 am

      india is most not struggling with deflation!!!
      -indian guy

  3. Mike R.
    July 8, 2016 at 11:11 am

    Yes, deflation is the concern. But what happens when deflationary forces spiral the system down? Debt defaults, printed money, loss of confidence…….potential hyperinflation as people move to something of real value such as real estate (already started), productive assets (same), gold (coming).

    • Smingles
      July 8, 2016 at 3:46 pm

      Well, that’s the scary question… and that is why deflation is so terrifying, and why Central Banks around the world will do anything they can to stop it.

      The issue is that Greenspan and his ilk are just touting the same incorrect thesis that they’ve been pushing since 2008: “printing dollars” (which is a total misnomer, since QE is an asset swap and not printing dollars) and low interest rates will lead to hyperinflation… it’s not, and it won’t.

      The link between deflation and hyperinflation is circumstantial. Japan has been battling deflation for three decades now, and there’s no sign of hyperinflation on the horizon… just more deflation. Meanwhile, Zimbabwe had moderate inflation for years before spiraling out of control into hyperinflation.

      Of course, what you referred to can definitely happen; a horrible positive feedback loop. Given that the US is still the least bad ship on the sea, I don’t think this will happen– we’re not exactly Weimar Germany.

        July 8, 2016 at 4:27 pm

        Uh, QE is when the Central banks buy “assets”. They “pay” for this with either credits to your account or they issue a “check” drawn on their account payable to your account.

        It is not a swap. They did not swap an “asset” with your asset. They created, out of absolutely nothing, a credit entry to your account. This is the same as “printing currency” but they didn’t have to physically print it. They created a credit that you can draw down.

        Please, in reality, this is all so simple if you accept the fact that is is ALL A FRAUD.

        • Robert
          July 8, 2016 at 7:56 pm

          It is a fraud, but they didn’t create a credit entry to my account, they freed up trillions of dollars, virtually interest-free TO THE VERY BANKS THAT OWN THE FED. Sorry about the caps, but this seems to have gone un-noticed. They still get to charge me 20%+ on my credit card, though, a spread that used to be illegal usury. And speaking of illegal, the only cabinet officer to do time, Albert Fall of Teapot Dome notoriety, went down for accepting a $1 million interest-free loan. It was regarded as a bribe, as in “O.K., let’s say I pay it back a dollar a year.”
          Now Greenspan, with an eye toward posterity, or maybe the guy at the holy gates, begins to sound like Andrew Jackson again. Jackson is well worth reading. A little old fashioned in style, but crystal-clear. He swore to leave office with the U.S. not owing a dollar to any one, and he kept his word. No QE there. An enormous crowd of well-wishers cheered his train when he left D.C. Now a house of cards does not topple just because someone bad-mouths it, but remove one card and see what happens. In Britain, in the opinion of many the epicenter of world banking, or better put, banking sophistry, one after another property fund is barring investors from withdrawing their cash and the Bank of England warned that risks to the financial system had begun to “crystallise”. Jackson watches grimly with folded arms at the 21st century sequel to John Law in France, but this time titled A Canuck in King Arthur’s Court

    • CV5
      July 9, 2016 at 8:03 am

      Deflation is a concern ONLY in ponzinomics. It means the con has run its course. The circumlocution from the Ivy League shills is to be expected but will not alter the outcome one bit.

  4. Petunia
    July 8, 2016 at 11:25 am

    I just watched “The Big Short” for the second time. All I can say is that every bad thing in that story was enabled by Alan Greenspan.

    • Lex Lutheran
      July 10, 2016 at 5:09 am


    • GSX
      July 11, 2016 at 6:15 am

      Really. Greenspan and not local greed and poor choices made by home buyers/banks/ratings firms etc. Petunia…wake up. You blame the system for anything so what is wrong in your life. The world is touch more complicated that you think it is.

  5. Spencer
    July 8, 2016 at 11:28 am

    Another death bed confession from a lying wrinkled old fart. Screw everything up, sell yourself, bribe the rubes, decline sound money practices, and then wake up in assisted living drooling the past. You know what to do Alan, go to Home Depot and shop for a nail gun and get busy doing some carpentry!

    • nick kelly
      July 8, 2016 at 1:03 pm

      Where he can strangle Cheney over gets the TV remote

      • Mary
        July 8, 2016 at 1:41 pm

        Heard a funny story from a techie friend. Apparently hackers constantly try to gain access to Dick Cheney’s pacemaker.

        But of course, being the anti Christ, he’s immortal.

        • Jack
          July 8, 2016 at 2:21 pm

          Mary, that’s too funny.

          July 8, 2016 at 4:28 pm

          They will achieve this faster if they route it through Hillary’s server……………….

    • Intosh
      July 8, 2016 at 2:41 pm

      It’s sad that this crook who did a disservice to his nation and perhaps even to the world was being honoured in Time. But then again, the mainstream media is by and large just propaganda piece for the mass of sheep. Making the cover of Time is amounts to nothing more than being named “sexiest man alive” BS by those celebrity magazines.

      • robt
        July 9, 2016 at 9:02 am

        Every scalliwag ever not only makes the cover of Time, they often get a Nobel Prize or some other worthless door stop.
        When a person or meme is on the cover of Time, it’s all over.

  6. Lolo Gecko
    July 8, 2016 at 11:43 am

    … and … Atlas Shrugged ….

  7. ERG
    July 8, 2016 at 11:44 am

    Living proof that working for the Fed induces economic insanity.

    July 8, 2016 at 11:55 am

    Greenspan used to be a follower of Ayn Rand. Rumor has it they “had a thing going on”.

    So, he comes out of the closet to admit GOLD is money and all this paper note printing is wrong.

    Some of us knew this since we were kids. But, he had to tote the tribal line, do as he was told, serve the families that own the Central Banks…not bad for a kid who grew up in poverty but had the right Dual Citizenship.

  9. michael
    July 8, 2016 at 1:23 pm

    Mike R.
    There is significant inflation all around us in the US irregardless of the government twisted statistics that indicate otherwise. That includes gold and real estate.

    My thought is the only safe play is to hold physical currency under your control. There are a lot of digital dollar commitments out there that are going to vanish. Its harder for them to “sequester” your physical fiat if it is not under their control.

      July 8, 2016 at 2:26 pm

      Until they make “currency” illegal, since only drug dealers, Republicans, and arm’s merchants use cash…………………………………

    • Mike R.
      July 8, 2016 at 5:13 pm

      I agree with your statement. There is significant deflation, significant inflation (mostly in asset classses) and signficant stagflation (caused when essentials rise in price but wages don’t).

      All for a crazy making world. HOWEVER, the overriding pressures are deflationary primarily because of the huge amounts of debt in the world and the inability of Central Banks to generate real inflation that translates into wage growth. So you have this largely ongoing stagflation (e.g., Japan) that drags everything down slowly.

      When the CB’s institute something really radical (more than QE) is when loss of faith will start. That is what they are really trying to manage. Faith in the current system. That is why such nuanced statements and endless hand wringing.

      My bet is that eventually they won’t be able to fool all the people all the time…….per Abe Lincoln.

  10. wratfink
    July 8, 2016 at 1:45 pm

    I agree with his 1966 statement that gold constrains state spending.

    However, I’m not sure it was the gold standard that enabled the great industrial boom in America. I believe that was enabled by an abundance of cheap American hydrocarbons to fuel the expansion.

    Something the whole world is now running short on…

    • Smingles
      July 8, 2016 at 3:28 pm

      Right? I have to completely laugh at this statement:

      “Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the U.S., and that was a golden period of the gold standard.”

      The period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the U.S. because of this little thing called THE INDUSTRIAL REVOLUTION. It had -nothing- to do with the gold standard.

      Furthermore, is Alan forgetting that there were numerous severe economic depressions and banking crises during this period that he praises so?

      I’m amazed at just how truly ignorant that statement by Greenspan was.

      • Nicko
        July 9, 2016 at 6:59 am

        Interestingly, the US recently overtook Russia and Saudi Arabia as country with largest energy reserves.

      • Red Rock
        July 9, 2016 at 5:31 pm

        Greenspan is demented. They’ve pulled him out of mothballs because he really should be lynched, and they’re letting him sanitize his wrecking ball legacy. The TPTB had to get the Fed instituted in 1913 because the US people’s amazing productivity and the resources terrified the bankers. They’ve planned every war & depression, we all know. Mayer Rothschild was vain enough to be quoted on all that.

  11. Intosh
    July 8, 2016 at 2:16 pm

    “The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.”

    “Welfare statists”?! This crook never miss an opportunity to lie and to spread propaganda. Him and his neoliberal cronies profited the most from this, not the “welfare statists”.

    • d'Cynic
      July 9, 2016 at 1:14 am

      The first part of the statement is actually correct. It should read: “The abandonment of the gold standard made it possible for Greenspan and his ilk to use the banking system as a means to an unlimited expansion of credit.”

  12. ru82
    July 8, 2016 at 3:21 pm

    Just thinking out loud. Is $60 trillion really a bubble? As long as people agree to play the Central Bank Fiat game then maybe it is not a bubble? If they can keep inflation high then fixed priced debt is easy to pay off with cheaper dollars down the road.

    I remember in the early 1980s when the U.S. debt surpassed $1 trillion and everyone was freaking out. Now we are at $17 trillion. Of course I could buy a can of soda for .25 cents and now it is over $1 dollar at a vending machine.

    With Fiat and minimum 2% inflation targets and only 3 deflationary GDP quarters since the 1930s inflation is here to stay. In 5 years we may be scratching are head asking is $100 Trillion in debt a bubble?

    I think the 2008 crash was caused when liquidity dried up and their was fear that debt would not be paid (Mortgage Backed Securities). You know those subprime lenders would not be able to pay and started to default which then caused MBS to drop in value causing everyone to start selling.

    Well CB now have a playbook. Print money to buy the toxic debt and add liquidity to the banks (See current ECB and Italy banking crisis). In other cases they CB acts like they are playing hardball and will not buy the debt but will allow the debtor to refinance and kick the can down the road (Greece) but in no way will they let them default and cause a panic. Lessons learned from Lehmans and Bear Sterns. This allows the toxic debt to disappear out of the system. Taking these steps mean people do panic and sell and cause a liquidity problem.

    • ru82
      July 8, 2016 at 3:25 pm

      I meant to say those sub prime borrowers would not be able to make payments on their loans once their rates reset. Which caused a chain reaction. The Fed and the rest of the world has a new playbook. The Fed bought all those toxic mortgages at face value and your principle and interest payment problems are gone. The toxic debt disappeared.

  13. ANON
    July 8, 2016 at 8:32 pm

    We are still under a gold standard, it is just that the promises have extended too far, and some have realized something was wrong in 1971. Nothing has changed since, promises of more are still issued, and if the promised interest in gold would exist, then gold would be as worthless as any rock. I like Mr. Bonner’s musings and writing style, but the math cannot be denied. Neither can be the psychology of promises.

  14. i1
    July 9, 2016 at 6:28 am

    Fair warning, I’d say.

  15. bead
    July 9, 2016 at 8:24 am

    The Fed will just buy the credit nuclear waste and bury it on the balance sheet for centuries. Creatio ex nihilo. But by all means pay Bonner for his warning. This time is different. You may very well see the next bubble expansion this month when the shills communicate improving “outlooks.”

  16. Meme Imfurst
    July 9, 2016 at 8:29 am

    The infatuation with deflation is just amazing. Perhaps a bit of research is in order as to exactly what “deflation” means.

    The fact that the FED and other central banks are printing without moral justification only demonstrates that ‘deflation’ does not exist. They may yap about it and stir the emotional pot of investors, with the notion but it ain’t here. One of the conditions for deflation is the lack of money.

    When the overall,…. lets say that again…the overall price level decreases so that inflation rate becomes negative, it is called deflation. We do not have that condition. Just because end demand is not there for whatever reason, and the price drops, is not the determination for deflation.

    Besides some commodities which are ‘over produced’ to the point where there is a price war, is not deflation. The devaluation of currencies to boost a countries’ exports may be stupid, but it is not deflation.

    Assets…stock…homes…antiques…jewelry…land, and many other ‘investments’ are not deflating. Some may have out priced themselves and have a rest period or pull back from mania, but the discount is not deflation but simply price adjustment. Markets are where they are because of perception, not reality, and crowd psychology is a very powerful variable

    The bond market is smarter than any market, and the bond market is not signaling deflation….it is signaling depression and no growth for a generation and maybe more.

    The absolute LAST thing the central banks want is deflation, so the fact that they are still printing money only reinforces that inflation is still here and healthy….just look at your bills each month.

    There are four causes for Deflation.
    1.Deflation from Decreasing Money Supply (nope, not what we have)
    2.Deflation from Increasing Supply of Goods (think China exports)
    3.Deflation from Decreasing Demand for Goods (I got enough junk)
    4.Deflation from Increasing Demand for Money (tight money supply)

    Not all deflation is bad, look at 2 and 3.

    From 1929 and 2008
    “During the Depression demand for money was high (but no one could afford it) because supply was low. During the liquidity crisis of 2008 the same thing happened as all forms of derivatives deleveraged and massive amounts of liquidity were destroyed. This time the FED stepped in and assumed massive amounts of debt in an effort to stop the deflation and consequently transferred all that debt from private hand to the public. So what could have been remedied through bankruptcy and liquidation is now a trillion dollar burden on future generations.”

  17. Felix_47
    July 9, 2016 at 10:36 pm

    I always figured the push for more migrants was a strategy to fight deflation. Inflate the population and you inflate the economy. Of course, that works pretty well for the capitalists since their assets become more valuable but it is pretty bad for those who work for a living,

  18. Lex Lutheran
    July 10, 2016 at 5:09 am

    Bernake? Honest? I remember that when the US economy went titsup in 2008, he blamed Asia for it! Try putting a “dis” in front and it’ll be closer to the truth.

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