America needs a good old-fashioned economic depression

Skybird · 07-29-16, 12:43 PM

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

Quote:

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 · 07-29-16, 03:14 PM

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 · 07-29-16, 03:23 PM

Blame it all Brexit, everyone else is.

mapuc · 07-29-16, 03:30 PM

Quote:

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 · 07-29-16, 03:35 PM

Always such a sunny outlook.

STEED · 07-29-16, 03:41 PM

Quote:

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.

AVGWarhawk · 07-29-16, 03:51 PM

Quote:

Originally Posted by STEED

Blame it all Brexit, everyone else is.

And Bush.

Buddahaid · 07-29-16, 03:59 PM

I go all the way back to Reagan.

mapuc · 07-29-16, 05:00 PM

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

Markus

Sailor Steve · 07-29-16, 06:02 PM

Obama got skipped? He must be greatly relieved.

Reece · 07-29-16, 07:25 PM

I blame it on the Australian government!!

em2nought · 07-30-16, 12:40 AM

Nonsense, everyone knows that politicians are wonderful people. Blame it on Ford, Henry Ford, that evil American industrialist.

Betonov · 07-30-16, 01:03 AM

I blame Gavrilo Princip

Schroeder · 07-30-16, 02:07 AM

Quote:

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!

HunterICX · 07-30-16, 03:34 AM

No No No...it's all Germany's fault!

07-29-16, 03:23 PM	#3
STEED Lucky Jack Join Date: Jan 2006 Location: Down Town UK Posts: 27,695 Downloads: 89 Uploads: 48	Blame it all Brexit, everyone else is. __________________ Dr Who rest in peace 1963-2017. To borrow Davros saying...I NAME YOU CHIBNALL THE DESTROYER OF DR WHO YOU KILLED IT!

07-29-16, 03:35 PM	#5
Buddahaid Shark above Space Chicken Join Date: Jun 2008 Posts: 9,334 Downloads: 162 Uploads: 0	Always such a sunny outlook. __________________ "However vast the darkness, we must provide our own light." Stanley Kubrick "Tomorrow belongs to those who can hear it coming." David Bowie

07-29-16, 03:59 PM	#8
Buddahaid Shark above Space Chicken Join Date: Jun 2008 Posts: 9,334 Downloads: 162 Uploads: 0	I go all the way back to Reagan. __________________ "However vast the darkness, we must provide our own light." Stanley Kubrick "Tomorrow belongs to those who can hear it coming." David Bowie

07-29-16, 06:02 PM	#10
Sailor Steve Eternal Patrol Join Date: Nov 2002 Location: High in the mountains of Utah Posts: 50,369 Downloads: 745 Uploads: 249	Obama got skipped? He must be greatly relieved. __________________ “Never do anything you can't take back.” —Rocky Russo

07-29-16, 07:25 PM	#11
Reece CINC Pacific Fleet Join Date: Sep 2003 Location: Down Under Posts: 34,885 Downloads: 171 Uploads: 0	I blame it on the Australian government!! __________________ *Sub captains go down with their ship!*

07-29-16, 03:14 PM	#2
mapuc CINC Pacific Fleet Join Date: Sep 2003 Location: Denmark Posts: 20,607 Downloads: 37 Uploads: 0	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

07-29-16, 05:00 PM	#9
mapuc CINC Pacific Fleet Join Date: Sep 2003 Location: Denmark Posts: 20,607 Downloads: 37 Uploads: 0	wait a year or two, then its Clinton/Trumps fault Markus

07-30-16, 12:40 AM	#12
em2nought Ocean Warrior Join Date: Mar 2004 Posts: 3,485 Downloads: 0 Uploads: 0	Nonsense, everyone knows that politicians are wonderful people. Blame it on Ford, Henry Ford, that evil American industrialist. __________________ em2nought is ecstatic garbage!

07-30-16, 01:03 AM	#13
Betonov Navy Seal Join Date: May 2009 Location: Slovenia Posts: 8,647 Downloads: 26 Uploads: 0	I blame Gavrilo Princip

07-30-16, 03:34 AM	#15
HunterICX Rear Admiral Join Date: May 2006 Location: Malaga, España Posts: 10,750 Downloads: 8 Uploads: 0	No No No...it's all Germany's fault! __________________