Comparing 2011 with 1937. One more time -- We are NOT in a depression.

Economic One ^ | 06/10/2011 | John B. Taylor

[SeekAndFind]

RE: Is this guy saying that a decrease in the monetary base caused a recession?

If I read him correctly, he is saying that it is ONE OF THE MANY REASONS for the slowdown. Not the only one mind you, but one of many.

Similarly, it takes more than one blow to send our economy reeling. But if a perfect storm strikes, depending on the ferocity of the storm, it will send the economy in a tailspin ( e.g. the threat of increased taxes, healthcare mandates, over-regulation, high oil prices, uncertainty about the direction of government and debt, etc.). All of these factors seem to be coming to a head in America today.

[mad_as_he$$]

I have not found a very clear source for direct comparison of the 30’s to now. If it exists some FReeper will know of it.

[mad_as_he$$]

;-)

[mad_as_he$$]

Very nice post, thanks!

[AceMineral]

The truth emerges.

[LibLieSlayer]

Logical argument but... you are basing all of your data on lying government drones that put out information that is false and for purely political reasons. Do you believe we really have only 9.1% of the work force out of work? If you take out all of the government spending and QE I and II... do you really think we have a growing gdp? No, we are in a depression and business people know it. Those are the facts... not pretty... not encouraging... and I am not even certain that our economy can be saved as it is.

66.7 Trillion in unfunded mandates in the form of IOU’s... representing money that was stolen in the past and spent foolishly... and 15 Trillion in deficit debt... and that is higher that the gross gdp of Planet Earth. Truly we are screwed... and saying we are in a double dip is another leftist lie (not you but the lie started on the left)... you can't dip twice if your baseline is ever falling.

LLS

[No Truce With Kings]

Well, if you want to know whether we are on the inflation or deflation side of the curve watch the stock market. During QEII share prices were rising even though the economy was still in the tank and companies were not performing better than they had in the past.

At first I could not figure out why this was happening. Then I realized that it was simply because the companies affected had not changed their value as a percentage of the total value of the economy, but there were a lot more dollars out there. So it took more dollars to buy the same percentage of an individual company (which is what a share of stock represents — a fixed percentage of the total value of a company), so that the price of the stock went up.

Does not make me comfortable.

Incidentally, I started one pararaph “In the 1880s and early 1990s, when the United States was on the gold standard, something like this happened.” I meant “1880s and early 1890s.”

[mad_as_he$$]

I knew what you meant about the gold standard.

BTW many international companies benefited simply by the devaluation of the dollar against other currencies since they price in dollars. GE made tons of “additional” revenue simply by the move of the dollar.

[NELSON111]

... and I am not even certain that our economy can be saved as it is.

Well LLS...you are much more optimistic than I...I am SURE...POSITIVE...KNOW we are screwed. It's over.

When Paul Ryan's budget is seen as manna from heaven by many Freepers (IE-A great thing)...when in fact even it falls far short of where we need to head...and when that budget is DOA...then I know we are screwed.

If we can't even go down the "Ryan" road to curing our problem without wailing and gnashing of teeth...and that road is still incurs too much debt...then the path we really must head in is not even a possibility.

[LibLieSlayer]

We will survive but not without major pain... we will have to get rid of the fed... go back on the Gold Standard and our government will have to be what it was designed to be... not the marxist nation that progressive incrementalism has brought to us... or we will divide ourselves and some of us will do the right thing. But pain like none ever felt is coming... and nothing can stop it... and the best intentions will only delay it.

LLS