Re: How deleveraging drove the Great Depression
At this point, it looks like we’re heading towards the Japanese experience, though with our levels of debt it could be called "the lost generation". Justifying their actions through the guise of "economic recovery", the only real purpose of central banks and governments at this point is to hold the system together and avoid a liquidity crisis. If people knew about the systemic fraud, embezzlement, racketeering, etc., there would’ve been a run on all paper assets last year and subsequent collapse of global currencies.
William K. Black explained this widespread lawlessness and financial malfeasance in an excellent interview he did with Bill Moyers last month, found here. What I took away from this, NWO conspiracies aside, is that the criminals in New York and Washington knew the consequences of their actions. More importantly, they continue to ignore laws, as evidenced by yesterday’s abrupt resignation of NY Fed Chairman Friedman on allegations of insider trading.
So not only do we try to solve the problem of too much debt with even more debt; too much government and regulation with even more government and regulation; but most importantly we also solve systemic lawlessness with even more law-breaking. Can anyone say the Constitution? H.R. 1207 to audit the Fed? It’s a start.
The bottom line is that if trust isn’t restored through justice, no matter the economic system, then all we have is anarchy and the loss of freedom.