America needs a good old-fashioned economic depression

[Skybird]

Not just America. Europe, Japan, the whole paper-globe floating on an growing ocean of unsecured credit needed it. By now, time most probably already has run out.

LINK - The National Interest

Even the radical Keynesian, Richard Koo has recognized the outrage of NIRP, which he recently described as “an act of desperation born out of despair over the inability of quantitative easing and inflation targeting to produce the desired results… the failure of monetary easing symbolizes crisis in macroeconomics."

The failure of ZIRP, QE and now NIRP is easy to see from recent corporate earnings reports and associated PE multiples: As of close of trading on Friday, July 1, 2016, the S&P 500 was trading at 24.3 times earnings over the last twelve months, close to an historical record high PE multiple. Generally (meaning before fiat money), elevated PE multiples were notched during times of increasingearnings. But for the first fiscal quarter of 2016 (FQE 3/31), S&P 500 earnings per share were only $87. That is 18 percent less than the $106-per-share earnings peak reported for the third quarter (FQE 9/30) of 2014. If money printing and central-bank-dictated interest rates were the saviors of the real economy, and if the United States were actually experiencing a real economic recovery, corporate earnings would be increasing, not declining precipitously.

The hammer is already falling. What we feel in movement in the air, and enjoy as a subtle "refreshment" from a hot summer's day, is not just a gentle breeze of air at sunset after a day's work is over - but the first layer of the shockfront of compressed air that forgoes the steel head smacking down on us all.

[mapuc]

That reminds me of what some professor said on the Swedish news program Rapport some years ago

(from my memory)

The economical world has cancer and we are only treating it with painkiller

He said a lot more of course.

Markus

[STEED]

Blame it all Brexit, everyone else is.

[mapuc]

Originally Posted by STEED

Blame it all Brexit, everyone else is.

This economical problems has been around for years-long before there ever was something called Brexit.

Markus

[Buddahaid]

Always such a sunny outlook.

[STEED]

Originally Posted by mapuc

This economical problems has been around for years-long before there ever was something called Brexit.

Markus

True but that will not stop them blaming Brexit, every little hiccup down turn bad news in the UK its Brexit's fault.

[Schroeder]

Originally Posted by STEED

True but that will not stop them blaming Brexit, every little hiccup down turn bad news in the UK its Brexit's fault.

Blame that on the EU!

[AVGWarhawk]

Originally Posted by STEED

Blame it all Brexit, everyone else is.

And Bush.

[Buddahaid]

I go all the way back to Reagan.

[mapuc]

wait a year or two, then its Clinton/Trumps fault

Markus