Commentary - The Depression: Past And Future

From Personal Liberty Digest - by John Myers - America’s recovery has run out of steam. Job growth is nonexistent. Stock indexes cling to highs set earlier this year. Barack Obama’s moneyfest has failed to right America’s listing ship. Yet no one from the Potomac to Wall Street has noticed the obvious — that the U.S. is facing a deflationary collapse worse than anything that has happened in 80 years. We are staring into the face of an economic depression. Bankers are again nervous that other banks might turn off the tap. And the banking crisis of 2008 still plagues the global economy. Already, banks have once again begun hoarding capital. And the modern economy cannot function when credit is not available. Since most companies and households don’t take out big new loans every day, it takes time for this truth to be realized. But when this happens, panic will ensue. Washington and the Federal Reserve are doing their utmost to turn back the deflationary tide. The Fed has already injected more than $1 trillion into the economy in a desperate attempt to resuscitate the business cycle. I believe if the President had his way, he would pump trillions of dollars more into American banks, automakers and any and all corporations that might help him get re-elected. What Obama and the Federal Reserve are unable or unwilling to understand is that all this money is killing the one great thing America still had going for it: the U.S. dollar. The greenback that was once revered around the world is now an asset that depreciates almost daily. The endgame of this accidental or purposeful mismanagement of the American economy could be a 1929-style crash of dollar instruments and devastating deflation. Read more

Commentary - The Depression: Past And Future